Natural or legal persons that carry out activities in the forest production chain. These activities include, among others, forest management, the harvesting, processing, transport, sales, import and export of timber and timber products, as well as changing the use of a forest area. The operators subcontracted to carry out these activities fall under this definition; for example, chainsaw operators, checkers or dispatchers, sales representatives, transporters and consignees of timber products.

Under different headings throughout the table.

2.

Rural community

Group of natural persons and their organisations based in a rural location (village or hamlet), in forest areas or places on the edge of these areas, with access to forest management and other agroforestry resources.

1.1.1/1 - 1.2.1/2 - 1.2.2/1 - 2.1.2/1 - 3.1.2/1 - 3.3.2/1

3.

Community group

Community organisation with legal personality, including agroforestry organisations, ethnic groups, rural forest companies and organised communities located in a national forest area, whose purpose is to manage, harvest, process and sell goods and services relating to forests.

1.1.1/1 - 1.2.1/2 - 1.2.2/1 - 2.1.1/1 - 2.1.1/2 - 2.1.1/3 - 2.1.2/1 - 3.1.2/1 - 3.3.2/1

4.

Forest owner

Natural or legal person that owns property on which there is forest cover, which can be, for example, private, municipal ( ejido ), national, community- or jointly owned by indigenous peoples, among others.

1.1.1/1 - 1.1.2/1 - 1.1.2/2 - 1.2.1/1 - 1.2.1/2 - 1.2.2/1 - 2.1.1/1 - 2.1.1/2 - 2.1.1/3 - 2.1.2/1 - 3.1.1/1 - 3.1.2/1 - 3.1.3/1 - 3.3.2/1 - 3.3.3/1 - 3.3.3/2

5.

Owner of a private forest

Natural or legal person that has full ownership of property on which there is forest cover.

1.1.1/1 - 2.1.1/1 - 2.1.1/2 - 2.1.2/1 - 3.1.1/1 - 3.1.3/1 - 3.3.2/1 - 3.3.3/1 - 3.3.3/2

6.

Owner of a municipal ( ejido ) forest

A Municipality that owns property on which there is forest cover.

1.1.1/1 - 1.2.2/1 - 2.1.1/1 - 2.1.1/2 - 2.1.2/1 - 3.1.1/1 - 3.1.3/1 - 3.3.2/1 - 3.3.3/1 - 3.3.3/2

7.

Owner named on a forest management plan for a national forest

Natural or legal person that is the beneficiary of an approved forest management plan for a national forest.

2.1.2/1 - 3.1.2/1 - 3.1.4/1 - 3.2.1/1 - 3.2.1/2 - 3.2.2/1 - 3.2.2/2 - 3.2.3/1 - 3.2.3/2 - 3.3.1/1 - 3.3.1/2 - 3.3.2/1 - 3.4.1/1 - 3.4.1/2 - 3.4.2/1 - 3.4.2/2 - 3.5.1/1 - 3.5.2/1 - 3.5.3/1 - 6.2.1/1 - 6.2.1/2

8.

Owner named on a forest management plan for a municipal ( ejido ) forest

Natural or legal person that is the beneficiary of an approved forest management plan for a municipal ( ejido ) forest.

2.1.2/1 - 3.1.1/1 - 3.1.4/1 - 3.2.1/1 - 3.2.1/2 - 3.2.2/1 - 3.2.2/2 - 3.2.3/1 - 3.2.3/2 - 3.3.1/1 - 3.3.1/2 - 3.3.2/1 - 3.4.1/1 - 3.4.1/2 - 3.4.2/1 - 3.4.2/2 - 3.5.1/1 - 3.5.2/1 - 3.5.3/1 - 6.2.1/1 - 6.2.1/2

9.

Owner named on a forest management plan for a private forest

Natural or legal person that is the beneficiary of an approved forest management plan for a private forest.

2.1.2/1 - 3.1.1/1 - 3.1.4/1 - 3.2.1/1 - 3.2.1/2 - 3.2.2/1 - 3.2.2/2 - 3.2.3/1 - 3.2.3/2 - 3.3.1/1 - 3.3.1/2 - 3.3.2/1 - 3.4.1/1 - 3.4.1/2 - 3.4.2/1 - 3.4.2/2 - 3.5.1/1 - 3.5.2/1 - 3.5.3/1 - 6.2.1/1 - 6.2.1/2

10.

Owner of an area with an agroforestry system

Natural or legal person that owns property with a production system that combines agricultural and forest products.

1.1.1/1 - 2.1.1/1 - 2.1.1/2 - 2.1.2/1 - 3.1.3/1 - 3.1.4/2 - 3.2.1/1 - 3.2.1/2 - 3.2.2/1 - 3.2.3/1 - 3.2.3/2 - 3.3.1/1 - 3.3.2/1 - 3.5.1/1 - 3.5.2/1 - 3.5.3/1 - 6.2.1/1 - 6.2.1/2

11.

Forest plantation owner

Natural or legal person that is the full or beneficial owner of property with a forest plantation.

1.1.1/1 - 2.1.1/1 - 2.1.1/2 - 2.1.2/1 - 3.2.1/1 - 3.2.1/2 - 3.2.2/1 - 3.2.3/1 - 3.2.3/2 - 3.3.1/1 - 3.3.2/1 - 3.3.3/1 - 3.3.3/2 - 3.5.1/1 - 3.5.2/1 - 3.5.3/1 - 6.2.1/1 - 6.2.1/2

12.

User/Occupant

Natural or legal person in possession or occupation of a national or municipal ( ejido ) area without a title deed to the land declaring legal ownership. This operator benefits from legalisation procedures to obtain a usufruct contract allowing it, among other things, to carry out forest management activities.

1.2.1/1 - 2.1.2/1 - 3.1.2/1 - 3.3.2/1

13.

Forest usufructuary

Natural or legal person who has been appointed by the State forestry administration or municipal government to sustainably manage a public forest (national or municipal/ ejido ) for its benefit.

1.2.1/1 - 2.1.2/1 - 3.1.2/1 - 3.3.2/1

14.

Contractor

Natural or legal person that carries out harvesting activities in natural and/or planted pine and broadleaf forests, appointed by the owner named on an approved and valid Forest Management Plan.

3.2.2/1 - 3.2.2/2 - 6.1.1/1 - 6.2.2/1 - 6.2.3/1 - 6.3.1/1

15.

Transporter

Natural or legal person in the forestry sector whose activity is the carriage or transport of timber products.

3.5.1/1 - 3.5.2/1 - 3.5.3/1 - 6.1.1/1 - 6.2.2/1 - 6.2.3/1 - 6.3.1/1

16.

Qualified forestry technician (TFC)

Forestry or similar professional who ensures the management and sustainable development of forests through management plans or approved operating plans in public or private forests, and who, in accordance with their professional duties, is a certifying officer.

3.2.1/1 - 3.2.1/2 - 6.1.1/1 - 6.2.2/1 - 6.2.3/1 - 6.3.1/1

17.

Independent forestry technician (TFI)

Private forestry professional who carries out activities in the forestry sector, excluding the implementation of operating plans.

3.2.3/1 - 3.2.3/2 - 6.1.1/1 - 6.2.2/1 - 6.2.3/1 - 6.3.1/1

18.

Exporter

Natural or legal person trading timber products outside the national territory.

5.1.1/1 - 5.1.3/1 - 6.1.1/1 - 6.2.2/1 - 6.2.3/1 - 6.3.1/1

19.

Importer

Natural or legal person that purchases timber products from abroad in order to distribute, sell and/or process them inside or outside the country.

5.1.1/1 - 5.1.2/1 - 6.1.1/1 - 6.2.2/1 - 6.2.3/1 - 6.3.1/1

20.

Owner of a primary forest product company

Natural or legal person that is the owner or legal representative of a forest product company which carries out the initial processing of roundwood (in its natural state) or any other timber or non-timber raw material from the forest.

3.6.1/1 - 3.6.1/2 - 3.6.2/1 - 3.6.2/2 - 3.7.1/1 - 3.7.1/2 - 3.7.1/3 - 6.1.1/1 - 6.2.2/1 - 6.2.3/1 - 6.3.1/1

21.

Owner of a secondary forest product company

Natural or legal person that is the owner or legal representative of a forest product company which processes products from a primary forest product company or any other timber or non-timber raw material from the forest.

3.6.1/1 - 3.6.1/2 - 3.6.2/1 - 3.6.2/2 - 3.7.1/1 - 3.7.1/2 - 3.7.1/3 - 6.1.1/1 - 6.2.2/1 - 6.2.3/1 - 6.3.1/1

22.

Owner of a timber yard

Natural or legal person that is the owner or legal representative of a piece of land, site or storage area where timber is bought and sold at national level/in the domestic market.

3.6.1/1 - 3.6.1/2 - 3.6.2/1 - 3.6.2/2 - 3.7.1/1 - 3.7.1/2 - 3.7.1/3 - 6.1.1/1 - 6.2.2/1 - 6.2.3/1 - 6.3.1/1

23.

Employer

Natural or legal person, under private or public law, that uses the services of one or more employees through an employment contract or a work relationship. This definition applies at all levels.

4.1.1/1 - 4.1.2/1 - 4.2.1/1 - 4.3.1/1 - 4.3.1/2 - 4.3.1/3 - 6.1.1/1 - 6.2.2/1 - 6.2.3/1 - 6.3.1/1

2.    State institutions linked to the Legality Matrices

3.    List of legal instruments included in the Legality Matrices

The list was drawn up taking account of the order of the legal references cited in the Legality Matrices, starting with Principle 1.

1.

Decree No 082-2004, Law on Property.

2.

Decree No 098-2007, Law on Forestry, Protected Areas and Wildlife.

3.

ICF Agreement No 027-2015 on the forest management of municipal ( ejido ) areas in the community forestry context.

4.

Decree No 026-94, Ratification of ILO Convention No 169.

5.

Agreement No 003-2010, Implementing Regulation for the Law on Property.

6.

Decree-Law No 170 on Agrarian Reform amended by Decree No 031-92 on the Modernisation and Development of the Agricultural Sector.

7.

Decree No 61-2013, authorising the ICF to respond to applications for title deeds for communal and inter-communal areas submitted by organisations of the Indigenous and Afro-descendant Peoples of Honduras.

8.

ICF Agreement No 031-2012 on the procedure for issuing title deeds for the ancestral lands of the Indigenous and Afro-descendant Peoples of Honduras living in the Río Plátano Biosphere.

9.

ICF Agreement No 010-2015, instructions for the application of technical standards in special plans for agroforestry systems (PESAs) of less than 100 hectares.

10.

Agreement No 031-2010, General Implementing Regulation for the Law on Forestry, Protected Areas and Wildlife.

11.

Instructions for the application of Agreement No 045 A-2013 on charges for services provided in primary and secondary forest product companies, and timber yards.

12.

ICF Circular No DE-ICF-001-2013, Administrative Guidelines for Harvesting Plans in Pine Forests.

13.

Decree No 073, Law on Compulsory Membership of a Professional Body.

14.

ICF Agreement No 050-2012 on the technical standards and guidelines for the drafting of forest management plans and operating plans for broadleaf forests.

15.

ICF Agreement No 030-2013, Approval of Rescue Plans.

16.

ICF Resolution No DE-MP-071-2010, Handbook on Rules for Issuing Certificates for Forest Plantations.

17.

ICF Resolution No DE-MP-285-2010, Guidelines and Standards for Better Forest Management.

18.

Agreement No 189-2014, Implementing Regulation for the Invoicing Scheme and its amendments.

19.

Agreement No 018-93, General Implementing Regulation for the Law on Municipalities.

20.

Decree No 104-93, General Law on the Environment.

21.

Executive Agreement No 008-2015, Implementing Regulation for the National Environmental Impact Assessment System.

22.

Decree No 181-2007, Amendments to the General Law on the Environment.

23.

Decree No 134-90, Law on Municipalities.

24.

Decree No 189-1959, Labour Code.

25.

Decree No 178-2016, Labour Inspectorate Law.

26.

Decree No 103, Minimum Wage Act approved on 3 June 1971 and its amendments.

27.

Agreement No 053-04, General Implementing Regulation on Measures to Prevent Workplace Accidents and Occupational Diseases.

28.

Decree No 140-1959, Law on Social Security, and Decree No 080-2001 of 1 June 2001, which contains its amendments.

29.

Resolution No 224-2008 (COMIECO-XLIX), Implementing Regulation for the Central American Uniform Customs Code (RECAUCA).

30.

SAG Agreement No 936-13, Rules of Procedure for the Implementation of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).

31.

Decree-Law No 102-1974, National Tax Register Law.

32.

Decree No 051-2003, Fair Taxation Law.

33.

Decree No 25-1963, Law on Income Tax.

34.

Decree No 017-2010, Law on Strengthening Revenue, Social Equality and Rationalisation of Public Expenditure.

ANNEX III

CONDITIONS GOVERNING THE RELEASE FOR FREE CIRCULATION IN THE UNION OF TIMBER PRODUCTS EXPORTED FROM HONDURAS AND COVERED BY A FLEGT LICENCE

FRAMEWORK

Council Regulation (EC) No 2173/2005 of 20 December 2005 on the establishment of a FLEGT licensing scheme for imports of timber into the European Community  ( 1 ) and its Implementing Regulation  ( 2 ) govern the conditions for entry onto the Union market of timber and timber products from Honduras covered by a FLEGT licence.

These Regulations provide for the adaptation of the procedures laid down therein to national conditions and, in particular, to the possibility that the competent authorities responsible for accepting FLEGT licences on entry into the Union may be the customs authorities or another administrative body. For this reason, the description of the process divides verification into two steps: (1) documentary checks of licences and (2) physical checks to ensure conformity of the actual consignment to the FLEGT licence.

The aim of this procedure is to supplement the checks carried out by Honduras and to verify that the FLEGT licences presented on entry into the Union are indeed those duly issued and registered by the Honduran FLEGT licensing authority and cover the consignments intended by the Honduran authorities. The competent authorities may address their questions with regard to the system for ensuring the legality and validity of Honduran FLEGT licences to the Joint Implementation Committee (JIC) in accordance with Articles 9, 11, 19 and 24 of this Agreement, subject to the information request procedures for competent authorities laid down in Article 3 of this Annex.

ARTICLE 1

Processing of FLEGT licences

1.   The FLEGT licence shall be lodged with the competent authorities of the Member State in which the consignment covered by that FLEGT licence is declared for release for free circulation  ( 3 ) . This may be done electronically or by other expeditious means.

2.   The competent authorities referred to in paragraph 1 shall, in accordance with the applicable national procedures, inform the customs authorities as soon as a FLEGT licence has been accepted.

ARTICLE 2

Checks on validity of FLEGT licence documentation

1.   Paper-based FLEGT licences shall conform to the model described in Annex IV. Any FLEGT licence that does not meet the requirements and specifications set out in Annex IV shall be invalid.

2.   A FLEGT licence shall be considered void if it is lodged on a date later than the expiry date indicated in the licence.

3.   Any erasures in or alterations to a FLEGT licence shall not be accepted unless these erasures or alterations have been validated by the licensing authority.

4.   The extension of the validity of a FLEGT licence shall not be accepted unless that extension has been validated by the licensing authority.

5.   A duplicate or replacement FLEGT licence shall not be accepted unless it has been issued and validated by the licensing authority.

ARTICLE 3

Request for additional information

1.   If there is doubt about the validity or authenticity of a FLEGT licence, a duplicate or a replacement FLEGT licence, the competent authorities may request additional information from the licensing authority.

2.   A copy of the FLEGT licence, the duplicate or the replacement FLEGT licence in question may be forwarded together with the request.

3.   If necessary, the FLEGT licensing authority shall withdraw the FLEGT licence and issue a corrected copy authenticated by the stamped endorsement "Duplicado" (Duplicate) and forward it to the competent authority.

ARTICLE 4

Verification of the conformity of the FLEGT licence with the consignment

1.   If further verification of the consignment is considered necessary before the competent authorities can decide whether a FLEGT licence can be accepted or not, checks may be carried out to establish whether the consignment in question conforms to the information provided in the FLEGT licence and to the records relating to the relevant licence which are held by the licensing authority.

2.   Where the volume or weight of the timber products contained in the consignment presented for release for free circulation does not deviate by more than 10 % from the volume or weight indicated in the corresponding FLEGT licence, the consignment shall be considered to conform to the information provided in the FLEGT licence as far as volume or weight is concerned.

3.   If there is doubt as to whether the consignment conforms to the FLEGT licence, the competent authority may seek further clarification from the licensing authority.

4.   The licensing authority may ask the competent authority to send a copy of the FLEGT licence or the replacement FLEGT licence in question.

5.   If necessary, the licensing authority shall withdraw the FLEGT licence and issue a corrected copy authenticated by the stamped endorsement "Duplicado" (Duplicate) and forward it to the competent authority.

6.   If the competent authority receives no answer within 21 working days of the request for further clarification, as provided for in Article 9 of this Agreement, the competent authority shall reject the FLEGT licence and shall act in accordance with the applicable legislation and procedures.

7.   A FLEGT licence shall not be accepted if it has been established, after provision of additional information in accordance with Article 3 of this Annex or further verification in accordance with this Article, that the FLEGT licence does not correspond to the consignment.

ARTICLE 5

Verification prior to the arrival of the consignment

1.   A FLEGT licence may be lodged before the arrival of the consignment it covers.

2.   A FLEGT licence shall be accepted if it meets all the requirements set out in Annex IV and no further verification in accordance with Articles 2, 3 and 4 of this Annex is deemed necessary.

ARTICLE 6

Other matters

1.   Costs incurred while the verification is being completed shall be at the expense of the importer, except where the applicable legislation and procedures of the Member State of the Union concerned determine otherwise.

2.   Where persistent disagreements or difficulties arise from verification of FLEGT licences, the matter may be referred to the JIC.

ARTICLE 7

Release for free circulation

1.   In box 44 of the Single Administrative Document on which the customs declaration for release for free circulation is made, reference shall be made to the number of the licence that covers the timber products subject to the declaration.

2.   Where the customs declaration is made by electronic means, the reference shall be provided in the appropriate box.

3.   Timber and timber products shall be released for free circulation only after completion of the procedures described in this Annex.

( 1 )    OJ EU L 347, 30.12.2005, p. 1 .

( 2 )   Commission Regulation (EC) No 1024/2008 of 17 October 2008 laying down detailed measures for the implementation of Council Regulation (EC) No 2173/2005 on the establishment of a FLEGT licensing scheme for imports of timber into the European Community ( OJ EU L 277, 18.10.2008, p. 23 ).

( 3 )   Release for free circulation is a Union customs procedure. Under Article 201 (2) and (3) of Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code, release for free circulation entails: (a) the collection of any import duties due; (b) the collection, as appropriate, of other charges, as provided for under the relevant provisions in force relating to the collection of those charges; (c) the application of commercial policy measures and prohibitions and restrictions insofar as they have not been applied at an earlier stage (in this specific case, the existence of a FLEGT licence shall be verified); and (d) completion of the other formalities laid down in respect of the importation of goods. Release for free circulation shall confer on non-European Union goods the customs status of European Union goods.

ANNEX IV

PROCEDURE FOR ISSUING FLEGT LICENCES

ARTICLE 1

General requirements for FLEGT licences

1.   Timber products from Honduras that are listed in Annex I require a FLEGT licence to enter the Union.

2.   The FLEGT licence is issued by the Instituto de Conservación y Desarrollo Forestal, Áreas Protegidas y Vida Silvestre (ICF) and confirms that the consignment of timber products for export to the Union has been legally produced and verified in accordance with the criteria and procedures set out in this Agreement.

3.   FLEGT licences will be issued in paper or electronic form.

4.   A FLEGT licence will be issued for each consignment by each exporter to the first point of entry in the Union.

5.   Paper and electronic FLEGT licences will include the information specified in Appendix 1, which must be completed in accordance with the instructions in Appendix 2.

6.   Before customs clearance, the applicant will submit to the customs authority the FLEGT licence to export to the Union, or the H-legal licence to export to other destinations, attaching the other required documents. The procedures for issuing the FLEGT licence or the H-legal licence and its relationship with the Single Customs Declaration (DUA) will be developed during the preparation and organisation phase of this Agreement.

7.   Once the FLEGT licence expires it will be considered void.

8.   Where it is not possible to include all the information specified in the form set out in Section 1 of Appendix 1 for consignments comprising different types of timber products, an authorised annex may be added to the FLEGT licence with the quantitative and qualitative information specified in section 2 of Appendix 1.

9.   The authorised annex in accordance with paragraph 8 will include information about the description of the consignment that does not fit in the relevant boxes in the form set out in Section 1 of Appendix 1.

10.   If the qualitative information is given in an annex (additional pages), the relevant boxes on the FLEGT licence will not give the information on the consignment but will refer to the annex (additional pages).

11.   The requirements and procedures for extending the validity and defining the withdrawal, replacement and management of FLEGT licences will be developed during the preparation and organisation phase of this Agreement. The procedures for issuing FLEGT licences will be made public.

12.   The Government of Honduras will provide the Union with an authenticated sample FLEGT licence, examples of the stamps of the licensing authority and signatures of authorised staff.

13.   Original, duplicate and replacement FLEGT licences will not be considered valid and will not be accepted if the means of issuing them as established in this Annex are altered or modified.

14.   For all approved FLEGT licences, the original and all types of copies will be issued to the exporter in accordance with the relevant provisions of this Agreement.

ARTICLE 2

Responsibility of the FLEGT licensing authority

1.   The licensing authority in Honduras is the ICF via the FLEGT Licensing Unit. The ICF's Legality Verification Unit is responsible for verifying legal compliance.

2.   The licensing authority is responsible for the exchange of information between Honduras and the competent authorities of Union Member States, and other Honduran authorities with responsibility for issues associated with FLEGT licences.

3.   The licensing authority may extend the period of validity (once only) for up to three (3) months at the request of the exporter. On extending the FLEGT licence the licensing authority will insert and validate the new expiry date.

4.   The licensing authority will use a tamper-proof method to ensure the authenticity of FLEGT licences and avoid erasures or alterations.

5.   The licensing authority will establish systems to keep paper and electronic records of licences in order to respond to the exporter's application, taking into account its geographical location. The FLEGT licensing scheme will be gradually linked to the Honduras One-Stop Shop System for External Trade (Sistema de Ventanilla Única de Comercio Exterior de Honduras, VUCEH), where conditions allow.

6.   In any event, whether the validity of a FLEGT licence is extended or the licence is withdrawn or replaced, the licensing authority will inform the competent authority of the relevant Union Member State.

7.   The licensing authority will manage a database for applications received, FLEGT licences issued and applications rejected.

ARTICLE 3

Procedure for issuing FLEGT licences

1.   The procedure to ensure the legality of the products, in accordance with Annex V, will be carried out before issuing the FLEGT licence. The steps for managing FLEGT licences are described below (see Figure 1).

(a)

To obtain a FLEGT licence, the exporter will present:

—

a FLEGT licence application and

—

an export invoice authorised by the Revenue Administration Service (SAR).

(b)

On receipt of the application, the FLEGT Licensing Unit will:

(i)

check with the Legality Verification Unit that the interested party (the exporter) satisfies all the relevant indicators of the legality definition;

(ii)

check that the legality requirement has been satisfied in the supply chain for that consignment.

(c)

Based on the information collected on compliance with all applicable indicators of the Legality Matrices and the supply chain requirements, the Legality Verification Unit will determine whether or not the legality requirements have been met and provide the FLEGT Licensing Unit with the following:

(i)

if the operator does not meet the legality requirements, an opinion explaining the reasons why, which will allow the FLEGT Licensing Unit to inform the applicant that the application has been rejected;

(ii)

if the operator meets the legality requirements, a "no-objection" decision, to be used by the FLEGT Licensing Unit.

(d)

Based on the application, the supporting documents and the Legality Verification Unit's decision on legal compliance, the FLEGT Licensing Unit will issue or refuse the FLEGT licence.

(e)

All information relating to the granting of a FLEGT licence will be entered in a special database.

2.   All timber products referred to in Annex I, including samples and demonstration products, are subject to the FLEGT licensing scheme when exported to the Union market. [Bild bitte in Originalquelle ansehen]

ARTICLE 4

Technical specifications for FLEGT licences in paper form

1.   Paper FLEGT licences must comply with the format set out in Appendix 1.

2.   The paper size will be A4. The paper will have watermarks showing various logos, including the Honduran coat of arms or emblem, in addition to the stamp.

3.   The FLEGT licences will be completed using a typewriter or computer. They may be completed by hand, if necessary.

4.   The licensing authority will use a metal stamp, preferably made of steel. However, the licensing authority may use an embossing press with combined letters and figures, obtained by means of perforation.

5.   The licensing authority will use a tamper-proof method to record the quantity entered in figures and letters, in such a way as to make it impossible to insert additional figures or references.

6.   The FLEGT licence form will contain no erasures or alterations, unless those erasures or alterations have been authenticated with the stamp and signature of the licensing authority.

7.   The FLEGT licence will be completed and printed in Spanish.

ARTICLE 5

Format for issuing FLEGT licences

1.   FLEGT licences may be issued by the computerised system within the Honduran Legality Assurance System for Timber Products (LAS).

2.   For Union Member States which are not linked to the computerised system, a paper FLEGT licence will be made available.

ARTICLE 6

Copies of the FLEGT licence

1.   The FLEGT licence will consist of one original document and five copies.

2.   The original will be given to the FLEGT licence-holder.

3.   The five numbered copies will be used as follows:

(a)

Copy 1: will be retained by the FLEGT licensing authority for future verification purposes;

(b)

Copy 2: will accompany the consignment. It will be given to the FLEGT licence-holder to be sent with the consignment to the purchaser of the product for submission to the customs authority of the Member State in which the consignment covered by the licence arrives for release for free circulation;

(c)

Copy 3: will be given to the FLEGT licence-holder to be sent to the purchaser for submission to the relevant authorities responsible for FLEGT licences of the Member State in which the consignment covered by the licence arrives for release for free circulation;

(d)

Copy 4: is for the Honduran customs authorities for export control purposes.

(e)

Copy 5: is for the records of the FLEGT licence-holder.

ARTICLE 7

Validity, withdrawal and replacement of the FLEGT licence

1.   Validity and extension of the FLEGT licence

FLEGT licences will be valid on the day of issue and remain valid for six (6) months from the date of issue. The expiry date will be indicated on the FLEGT licence.

2.   Withdrawal of the FLEGT licence

2.1.

A FLEGT licence will cease to be valid and should be returned to the licensing authority if the timber products covered by it are lost or destroyed during shipment prior to arrival in the Union.

2.2.

A FLEGT licence will be withdrawn in the following circumstances:

(a)

For any infringement by the exporter relating to the consignment and identified after the FLEGT licence has been issued;

(b)

When no export was carried out and the beneficiary did not request an extension.

2.3.

The exporter may also return the licence voluntarily, if it decides not to use it.

3.   Replacement of the FLEGT licence

3.1.

If the original and/or copies of the licence for the Union competent authorities are lost, stolen or destroyed, the FLEGT licence-holder or its authorised representative may apply to the licensing authority for a replacement on production of proof of the loss, theft or destruction of the original and/or the copies.

3.2.

The licensing authority will issue a replacement FLEGT licence on receipt and examination of the licence-holder's request.

3.3.

The Government of Honduras will provide the Union with an authenticated sample FLEGT licence, examples of the licensing authority's stamps and the signatures of authorised staff.

3.4.

The replacement FLEGT licence will contain the information and entries appearing on the original FLEGT licence, including the licence number. The replacement FLEGT licence will bear the endorsement "licencia de sustitución" (replacement licence).

3.5.

If the lost or stolen FLEGT licence is found, it must not be used and must be returned to the licensing authority.

ARTICLE 8

Management of infringements relating to the issuing of FLEGT licences

In the event of any infringement or fraudulent information relating to timber products, any falsification, alteration or modification of the information on a FLEGT licence, or a breach of regulations concerning the FLEGT licensing scheme, administrative or legal measures will be taken in accordance with the extent of the infringement and with Honduran legislation.

ARTICLE 9

Doubts about the validity and authenticity of a FLEGT licence

1.   If there is doubt about the validity or authenticity of a FLEGT licence, a copy or a replacement licence, the competent authority may check in the system or ask the FLEGT licensing authority for additional information. Only the FLEGT licensing authority will have the responsibility and power to provide information on the validity or authenticity of the licence.

2.   If it considers it necessary, the licensing authority may ask the competent authorities to send it a copy of the FLEGT licence or the replacement document in question.

3.   If the FLEGT licensing authority considers it necessary, it will withdraw the licence and issue a corrected copy authenticated by the stamped endorsement "Duplicado" (Duplicate) and forward it to the competent authority.

4.   If the validity of the FLEGT licence is confirmed, the licensing authority will immediately inform the competent authority by electronic means. The copies returned will be authenticated in an appropriate manner by the FLEGT licensing authority.

5.   If the FLEGT licence in question is not valid, the licensing authority will notify the competent authority, preferably by electronic means.

6.   If there is any doubt about the authenticity and validity of a FLEGT licence, the licensing authority is required to respond to questions from the competent authorities and other Honduran authorities, and to provide additional information and clarifications where requested.

Appendix 1

1.    FLEGT licence form

[Bild bitte in Originalquelle ansehen]

2.    Additional information on consignments

The following information concerns the FLEGT licence.

Appendix 2

INSTRUCTIONS FOR COMPLETING THE FORM

General

—

Complete in capitals

—

The ISO codes for the countries correspond to the international standard two-letter country code.

ANNEX V

HONDURAN LEGALITY ASSURANCE SYSTEM FOR TIMBER PRODUCTS (LAS)

Table of contents

1. INTRODUCTION

1.1. General context

1.2. Objective of the Honduran Legality Assurance System for Timber Products (LAS)

1.3. New tools and elements for the improvement of forestry management

2. HONDURAN LEGAL FRAMEWORK APPLICABLE TO THE LAS

2.1. International conventions and treaties

2.2. Regional conventions and treaties

2.3. National legislation on the sustainable management of natural resources

2.4. National legislation on labour market

2.5. National legislation on the payment of state and municipal taxes for the export of timber products

2.6. National legislation on administrative procedures, transparency mechanisms and public participation

2.7. National legislation applied by the judicial officers

3. ELEMENTS OF THE LAS

3.1. Definition of legality

3.2. Verification of compliance with the legality definition

3.3. Supply-chain controls

3.4. FLEGT and H-Legal licensing process

3.5. Independent auditing

4. INSTITUTIONAL FRAMEWORK AND ROLE OF ACTORS INVOLVED IN THE IMPLEMENTATION OF THE LAS

4.1. Actors involved in implementation of the LAS

4.2. State institutions

4.2.1. National Institute for Forest Conservation and Development, Protected Areas and Wildlife (ICF)

4.2.2. Revenue Administration Service (SAR)

4.2.3. Municipalities

4.2.4. Institute of Property (IP)

4.2.5. Ministry of Employment and Social Security (STSS)

4.2.6. Honduran Institute of Social Security (IHSS)

4.2.7. Ministry of Energy, Natural Resources, Environment and Mines (MiAmbiente)

4.2.8. National Agrarian Institute (INA)

4.2.9. Ministry of Agriculture and Livestock (SAG)

4.2.10. Customs Revenue Subdirectorate (DARA)

4.2.11. Government institutions indirectly involved

4.3. Private forestry sector

4.4. Civil society organisations

4.4.1. Local organisations

4.4.2. Non-governmental development organisations

4.5. Indigenous and Afro-descendant peoples of Honduras (PIAH)

4.6. Capacity-building

5. COVERAGE/SCOPE OF THE LAS

5.1. Timber products included in the LAS

5.2. Markets covered by the LAS

5.3. Sources of timber covered by the LAS

5.3.1. Timber harvested in Honduras

5.3.2. Imported wood

5.3.3. Timber not covered by this Agreement

5.4. Scope of operators included in the LAS

6. VERIFICATION OF COMPLIANCE WITH THE LEGALITY DEFINITION

6.1. Legality verification principles

6.1.1. Institutions involved in legality verification

6.1.2. Verification procedures based on the Legality Matrices

6.1.3. Storage of the means of verifying legality

6.1.4. Information systems and verification functionalities

6.1.5. Risk management principle

6.1.6. Legality audit resulting in a legal compliance certificate

6.2. Obligation of operators with regard to legality verification

7. VERIFICATION OF THE TIMBER AND TIMBER PRODUCT SUPPLY CHAIN

7.1. Principles of supply-chain verification

7.2. Identification of timber products

7.3. Declaration of supply-chain information by operators

7.4. Verification of imported timber products

7.5. Verification of timber products in transit

7.6. Verification of confiscated timber products

7.7. Verification of timber products sourced from land subject to a change in use

8. RECOGNITION OF PRIVATE CERTIFICATION

9. HANDLING OF CASES OF NON-COMPLIANCE WITH THE LAS

10. MECHANISMS FOR HANDLING COMPLAINTS

10.1. Introduction

10.2. Objectives

10.3. Types of complaint-handling mechanisms

10.4. Establishment of the complaint-handling mechanisms and governing principles

11. CONSULTATION, PARTICIPATION AND COORDINATION MECHANISMS CONCERNING THE IMPLEMENTATION OF THE LAS

11.1. Joint Implementation Committee

11.2. Technical Committee

11.3. Interinstitutional Secretariat for the Implementation of the FLEGT-VPA (SIIAVA)

11.4. National Strategy for the Control of Illegal Logging and Transport of Forest Products (ENCTI) and its links to this Agreement

12. INCENTIVE, PROMOTIONAL, SAFEGUARD AND MITIGATION MEASURES DESIGNED TO INVOLVE THE SECTOR'S VARIOUS ACTORS IN THE IMPLEMENTATION OF THE LAS

Appendix 1. Links in the supply chain (pine forest)

Appendix 2. Links in the supply chain (broadleaved forest)

1.   INTRODUCTION

1.1.   General context

Latin America has the highest rate of deforestation in the world and Honduras has one of the region's highest annual deforestation rates. Deforestation and forest degradation have a range of causes, mainly the encroachment of extensive cattle farming and monocultures (such as oil palm), illegal logging in the form of clearance, forest fires and unsustainable harvesting.

The repercussions and negative impacts as illustrated by the destruction and deterioration of forests caused by illegal logging, and the conversion of rainforest into farmland, results in reduced biodiversity and the limitation or loss of the natural resilience of forest ecosystems. There is also the financial loss resulting from non-payment of fees and tax evasion.

1.2.   Objective of the Honduran Legality Assurance System for Timber Products (LAS)

The objective of the LAS is to improve governance in the country's forestry sector, ensuring strict legal compliance by all operators in the forest supply chain.

This objective covers the assignment of forest-use rights, the harvesting of raw materials, transportation of timber, primary processing, secondary processing and trade in timber products on both domestic and international markets, based on the application and enforcement of current legislation and the improvement of existing government control systems.

1.3.   New tools and elements for the improvement of forestry management.

Although the licensing of legal timber under FLEGT is a key objective of the process of negotiation and implementation of the VPA, it is not the only expected outcome. For these licences to be issued, and to meet the expectations of Honduras and the EU in terms of improving forest governance and promoting the legal timber trade, new tools need to be developed to reinforce legality verification. For this reason, the Agreement proposes a number of new and innovative elements that are expected to have a positive impact on governance of the forestry sector. This set of elements, in place or yet to be developed, make up the Honduran Legality Assurance System for Timber Products (LAS). These elements, at both organisational and institutional levels, include in particular:

Definition of legal timber

(a)

Establishing legal requirements, which are included in the Legality Matrices, for all sources of timber supplying the domestic market, and exports to any destination, including imported wood.

Supply chain controls

(b)

Implementation milestone of this Agreement: Development and implementation of the Timber Traceability IT System (SIRMA): improved checking and controls on the volumes of wood along the supply chain, thanks to connection with other information systems (both the internal ICF system and systems in place at other institutions) and to information exchange with other countries (medium term).

(c)

Information exchange and cross-referencing between SIRMA and Honduras's Automated Customs Revenue System (SARAH) (medium term).

(d)

Implementation milestone of this Agreement: Introduction of due diligence for all operators. Inclusion in the legal framework of an obligation that reduces the risk of operator non-compliance to a minimum, regardless of whether the product is sourced locally or overseas (medium term).

Verification procedures

(e)

Tougher application of all legislation included in the Legality Matrices (long term).

(f)

Reinforcement of controls on harvesting in forest areas subject to rescue and recovery plans, particularly where greater efforts are required for monitoring along the supply chain (long term).

(g)

Consolidation of the National Forestry Information System (SNIF) to create an effective and appropriate link to other related institutions, and also to allow users to access information that is of interest to them (medium term).

(h)

Implementation milestone of this Agreement: Creation and management of a database on the degree of operator non-compliance with LAS requirements (medium term).

(i)

Implementation milestone of this Agreement: Implementation of a risk-based legality audit as a means of checking that all operators comply with LAS indicators and requirements (medium term).

(j)

Implementation milestone of this Agreement: Creation of a legal compliance certificate – resulting from the legality audit – as proof of compliance with LAS requirements (medium term).

(k)

Recognition of private voluntary certification, subject to equivalence with the Legality Matrices. Bearing in mind the procedures set out in Section 8, the legality, forest management and/or chain of custody certificates issued by accredited certifying bodies may be accepted as evidence of partial or full compliance with the legality indicators in order to avoid duplication of work and as a way to simplify this verification (medium term).

FLEGT Licensing Procedures

(l)

Issue of FLEGT licences, ensuring compliance with LAS requirements for all shipments of wood to the EU. The requirements for the issue of H-Legal licences must also be complied with for wood exported to other countries (medium term).

Independent audit

(m)

Independent audit of the system, to ensure the credibility of all elements of the LAS and propose adjustments to remedy any weaknesses identified (medium term).

(n)

Implementation milestone of this Agreement: Creation of an Interinstitutional Secretariat for the Implementation of the FLEGT-VPA (SIIAVA) to coordinate the activities and input of the various government institutions involved in the development and implementation of the LAS. This body will be a space for dialogue and coordination to ensure, together with other bodies such as the Technical Committee, successful implementation of this Agreement in an interactive and deliberative manner, so that all stakeholders are involved, aware of and committed to improving forest governance (short term).

(o)

Implementation milestone of this Agreement: Implementation of Free, Prior and Informed Consultation (FPIC) in the forestry sector, under the provisions of the corresponding law once in force (medium term).

(p)

Stepping up of efforts to place forest land without title deeds in state hands, with a focus on the legalisation ("regularización" and "saneamiento jurídico") of land not owned by the State and covered under the community forest management contracts issued by the ICF (long term).

(q)

Stepping up of efforts to legalise ownership for PIAH of lands ancestrally possessed by them (long term).

(r)

Reinforcement of the institutional capacity of the Ministry of Employment and Social Security (STSS) and the Honduran Institute of Social Security (IHSS), providing them with the necessary resources for the effective facilitation and supervision of the indicators and means of verification of the Legality Matrices (long term).

(s)

Capacity-building for artisan operators in the sector, in terms of legal compliance (long term).

2.   HONDURAN LEGAL FRAMEWORK APPLICABLE TO THE LAS

The legal framework for timber products in Honduras has diverse elements, consisting of international conventions and treaties (regional and extra-regional), the Constitution of the Republic, secondary laws, regulations and other standards specifically applied by the different government institutions depending on their sphere of competence. The institutions involved in the LAS liaise with each other to verify the legality of Honduras's timber products.

The Legality Matrices set out in Annex II and below describe the key legal instruments relating to the different elements of legality and the LAS, which will be verified before each FLEGT licence is issued.

2.1.   International conventions and treaties

—

International Labour Organization Convention No 169 concerning Indigenous and Tribal Peoples in Independent Countries.

—

Convention on International Trade in Endangered Species of Wild Fauna and Flora.

—

United Nations Conference on Environment and Development.

—

United Nations Framework Convention on Climate Change, and in particular the 2015 Paris Agreement, which has become the main international instrument for dealing with climate change.

2.2.   Regional conventions and treaties

—

Convention for the Conservation of the Biodiversity and the Protection of Wilderness Areas in Central America. The purpose of this convention is to conserve as much as possible land and marine biological diversity in the Central American region. It was signed in Managua, Nicaragua in 1992, by the presidents of the Republics of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama.

—

Central American Alliance for Sustainable Development (ALIDES). This is a regional strategy for the coordination and consultation of interests, development initiatives, responsibilities and harmonisation of rights, signed in 1994 by the presidents and representatives of the Republics of Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama.

—

Regional Convention for the Management and Conservation of Natural Forest Ecosystems and for the Development of Forest Plantations. The purpose of this convention is to promote national and regional mechanisms to avoid changes in use of areas with forest cover located on land with forestry potential and to recover areas of deforestation. It was signed in Guatemala City, Guatemala, in 1993 by the foreign ministers of the Republics of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama.

2.3.   National legislation on the sustainable management of natural resources

—

Decree No 131-1982, Constitution of the Republic of Honduras.

—

Decree No 181-2009, General Law on Waters.

2.4.   National legislation on labour matters

—

Agreement No 101-JD-71, Implementing Regulation for the Law on social security.

2.5.   National legislation on the payment of state and municipal taxes for the export of timber products

—

Decree No 170-2016, Tax code.

—

Decree No 194-2002, Law on financial equilibrium and social protection.

—

Resolution No 223-2008 on the Central American Uniform Customs Code (CAUCA).

—

Ministry of Finance Agreement No 0630, Implementing Regulation for the Law on foreign exchange revenue from exports.

2.6.   National legislation on administrative procedures, transparency mechanisms and public participation

—

Decree No 170-2006, Law on Transparency and Access to Public Information.

—

Decree No 152-1987, Law on administrative procedures and its Implementing Regulation.

2.7.   National legislation applied by the judicial officers

—

Decree No 144-1983, Penal code of Honduras.

3.   ELEMENTS OF THE LAS

The LAS comprises the following:

(1)

A definition of legal timber that clearly establishes the aspects of the law for which the LAS will systematically seek proof of compliance, regardless of the intended market for the products.

(2)

Supply chain controls to track timber from forest operations or the point of import to the last link in the supply chain.

(3)

Verification procedures to ensure and document compliance with all elements of the legality definition and supply-chain controls.

(4)

Procedures for the issuing of FLEGT licences for timber products destined for the Union.

(5)

Independent audits to ensure that the system is as effective and efficient as it should be, as agreed by the Parties.

3.1.   Definition of legality

The legality of timber under this Agreement is defined in Annex II. That Annex is closely linked to the other Annexes as part of the LAS. It includes a definition of the legal requirements applied under the Voluntary Partnership Agreement that are linked to the challenges to forest governance identified by the actors in the sector in a national dialogue.

The detailed definition of legality in the Legality Matrices provides the basis for checking the various supply-chain operators' compliance with the indicators, means of verification and traceability requirements and the respective monitoring and control by the relevant institutions. Independent audits ensure that the system is as effective and efficient as it should be.

3.2.   Verification of compliance with the legality definition

Legality verification:

—

ensures that timber products are legal. This means checking that all the indicators included in the Legality Matrices have been met by the operators in their sphere of competence in the forestry sector,

—

ensures processing of cases of non-compliance and the application of corrective or preventive measures,

—

requires unequivocal proof that timber products and related activities meet the requirements established in the definition of legality,

—

shows compliance through physical and documentary checks and through checks of systematically collected information and data verified at various points along the supply chain,

—

documents procedures and files evidence to allow the licensing authority to assess the legality of a shipment prior to issuing a FLEGT or H-Legal licence, and

—

clearly defines and documents the functions and responsibilities of all institutions involved in the verification process.

The State of Honduras, by means of its specialist institutions and a verification manual approved by the Joint Implementation Committee (JIC), will have methodologies and means in place to check compliance with legal requirements by the sector's various actors and operators. These methodologies and means of verification are introduced in Section 6.1.4.

The system provides for the detection of any failings and instances of non-compliance, the imposing of penalties where applicable, the proposal of necessary corrective measures where appropriate, and assurance that measures to correct these failings will be taken.

The institutions involved in the LAS have IT tools and protocols to verify compliance with the indicators in the Legality Matrices, which are described in more detail in Section 4.

Legality verification includes action on the ground such as supervisory inspections and technical auditing, plus routine inspections to verify compliance with technical and administrative standards, performed by the relevant authorities depending on the type of indicator in question.

Inspections at roadsides and checkpoints are also conducted with the support of the judicial officers  ( 1 ) and the collaboration of the law enforcement authorities – Honduran armed forces (FFAA), the National Preventive Police, MP, PGR – to check compliance with the law in the transportation of timber products, at all times reporting to the competent authorities in order for the necessary measures to be taken.

Civil society organisations, i.e. Advisory Councils on Forestry, Protected Areas and Wildlife (CCFs)  ( 2 ) , jointly perform social oversight to ensure compliance with the technical and administrative rules governing the execution of management plans, operating plans and other harvesting licences. The CCFs may report their findings and recommendations to the SIIAVA, to the FLEGT-VPA Joint Implementation Committee or its technical branches, to this Agreement's independent auditing department, and to the general public.

The frequency of verification will be established using a risk-based approach, taking into account the competencies and responsibilities of the public institutions involved in the supply chain and administrative records (fines, complaints and others) suggesting a risk of illegality. These risks have been taken into consideration for the forestry operators as well as for the service providers themselves. The frequency of verification by the various public institutions will be described in the legality verification manual, introduced in Section 6.1.

The institutions responsible for verification of legality will hold files of means of verification that contain both digital documents and hard copies (images of documents, geographical information, etc.). These files will contain a chronological sequence of documented facts. For security purposes, government institutions will hold a digital copy of these files as backup. All these files, in accordance with Annex IX, are public files insofar as the Law on Transparency and Access to Public Information considers them to be public information.

Checking of legal compliance is a key stage in the exportation of timber products, include the issuing of FLEGT and H-Legal licences, as it provides proof of compliance.

3.3.   Supply-chain controls

Traceability of timber is one of the requirements of the LAS, in accordance with the Honduran legal framework. The ICF has supply-chain monitoring tools such as the SNIF and the SIRMA, among others. Both systems are already in operation, but new modules are planned, in line with the requirements established under this Agreement. They are therefore considered to be under construction, and the development of some functions is included in the supplementary measures in Annex VIII.

The starting point for monitoring the supply chain is the harvesting licence for timber felled in Honduras, and the single customs declaration (DUA) for timber imported into Honduras.

Harvesting licences, transport permits and waybills, production reports, input and output and delivery reports for SAR-authorised invoices, as well as the DUA, are the key documents for monitoring timber product flow under the LAS. These documents will be recorded in the SNIF and the SIRMA, once these systems have been fully developed, making it possible to calculate the volume of timber circulating in each stage of the supply chain, as described in Section 7.1.

The authorities employ two means of data verification: validation and reconciliation. Validation consists of comparing and contrasting the operator-generated data with the data collected by government representatives, as shown in column 3.1 of Appendices 1 and 2.

Data reconciliation consists of comparing and analysing the data reported between one stage of the supply chain and the next in order to detect differences indicating the presence of unchecked or illegal timber. Data reconciliation is presented in column 3.2 of Appendices 1 and 2.

Proper supervision and the application of clearly defined procedures for validation and reconciliation at each stage of the supply chain play a decisive role in ensuring that the timber moving from one point to another is legal, thereby avoiding contamination of legally circulating timber by that from unchecked or illegal sources.

3.4.   FLEGT and H-Legal licensing process

The issuing of FLEGT and H-Legal licences takes place after positive and conclusive verification of compliance with all the requirements concerning the definition of legality and monitoring of the supply chain for timber products.

The FLEGT licence is the final compulsory requirement for timber products included on the list of products agreed between the parties, as set forth in Annex I to this Agreement, to be exported from Honduras to any country in the Union. For exports to countries outside the Union, the same legality verification is performed. The difference is that an H-Legal licence is required, rather than a FLEGT licence.

Annex IV describes the procedure for issuing FLEGT licences. The exporter submits the FLEGT licence for customs clearance when exporting to the Union, or the H-Legal licence when exporting to non-Union markets, together with the other documentation required by the Customs Authority.

3.5.   Independent auditing

Independent auditing is an indispensable element of the LAS as it maintains the credibility of the system. The independent audit checks that the mechanisms implemented within the LAS to demonstrate the legality of all stages of the supply chain in timber products (including logging, transport, primary processing, secondary processing and trade) are functioning, and that they fully meet all supply-chain requirements and the provisions laid down by the FLEGT and H-Legal licensing authority.

The independent audit is part of the LAS and must be performed prior to commencing FLEGT licensing. Auditing procedures and their implementation will be defined in more detail during the preparatory and organisational phase of this Agreement.

The scope and principles of audits are defined in the terms of reference for independent audits in Annex VI.

4.   INSTITUTIONAL FRAMEWORK AND ROLE OF ACTORS INVOLVED IN THE IMPLEMENTATION OF THE LAS

This section describes the role of the different actors involved in the implementation of the LAS. It describes how, according to their respective responsibilities, they support or implement in practice the requirements of this Agreement, or perform the necessary verification to ensure compliance with these requirements, and how they liaise with and complement each other to ensure the legality of timber products.

For the preparatory and organisational phase of this Agreement, institutions, private-sector operators and civil society, including agroforestry organisations and representatives of the PIAH, must perform a critical review of their capacity in the light of their responsibilities for legality verification and compliance. Annex VIII deals with all aspects of strengthening the technical and institutional capacities mentioned in this section.

The knowledge and appropriate management of the entire process required to implement the LAS, the institutional targets for participation and good practice, the responsibility of each actor involved and proper interinstitutional coordination all require a high level of training and capacity-building. For this reason, supplementary measures were included in Annex VIII to build the capacity of the actors involved in this Agreement.

Section 11 sets out the coordination bodies, such as the Interinstitutional Secretariat for the Implementation of the FLEGT-VPA, that will be created or maintained to implement the LAS. In order to reaffirm the institutional agreements on the implementation of this Agreement, one or more memoranda of understanding will be concluded between public sector institutions, involving at least: The National Institute for Forest Conservation and Development, Protected Areas and Wildlife (ICF); the Revenue Administration Service (SAR); the Association of Honduran Municipalities (AMHON); the Institute of Property (IP); the National Agrarian Institute (INA); the Ministry of Employment and Social Security (STSS); the Honduran Institute of Social Security (IHSS); the Ministry of Energy, Natural Resources, Environment and Mines (MiAmbiente); the Ministry of Agriculture and Livestock (SAG); the Customs Revenue Subdirectorate (DARA); the National Preventive Police, reporting to the Ministry for Security (SSN); the Public Prosecutor's Office (MP); the Attorney-General's Office (PGR); the Supreme Court of Justice (CSJ); the Honduran armed forces (FFAA), reporting to the Ministry of National Defence (SEDENA); the National Directorate of Indigenous and Afro-Honduran Peoples (DINAFROH); the Institute for Access to Public Information (IAIP); and the National Commission on Human Rights (CONADEH).

Cooperation agreements will also be established to ensure appropriate coordination between these institutions, based on and following the example of current agreements such as the Interinstitutional Agreement for the Legalisation and Ownership of Land, signed by the INA, IP and ICF in October 2015.

Considering that lack of defined ownership is one of the underlying causes of the widespread weak governance found in the forestry sector, under matters of this Agreement relating to the ownership and legalisation of land are dealt with both in Annex II on Legality Matrices, which lists specific indicators on this subject, and in Annex VIII on supplementary and support measures, under which a special plan to legalise land tenure is established, as agreed between the Parties in order to expedite legalisation as per the priorities defined in this Agreement.

The special plan to legalise land tenure focuses on the ownership of national forest areas and protected areas. In the case of the latter, it deals only with buffer zones where forest harvesting for the State is permitted in order to ensure the necessary legal certainty and to provide the basis for the community forest-management contracts signed or due to be signed with the communities settled in those areas. It also provides for the conclusion of usufruct contracts for the users or occupiers of this land. The usufruct contract is a legal instrument that, while maintaining the State's ownership of the land, provides the occupiers with legal certainty with a view to obtaining financial, ecological and social benefits that improve quality of life and rational use of natural resources in compliance with current legislation. The purpose of these activities is to strengthen forest governance and land-use planning.

Regarding the matters of land tenure and the legalisation process, as well as the leading role of the three institutions mentioned – the INA, IP and ICF – emphasis must be placed on coordination between them and the Honduran Institute for Coffee (IHCAFE), the goal of which is to increase the socioeconomic return generated by Honduran coffee growers by improving the competitiveness of the coffee production chain.

Coordination between these four institutions must focus on achieving an understanding of the process of issuing title deeds for coffee producers in national forest areas in a way that respects forested land, protected areas and watersheds so as to prevent the issue of new title deeds resulting in further destruction and deterioration of the forest and the environment.

4.1.   Actors involved in the implementation of the LAS

Of the government institutions directly involved in the implementation of the LAS, and in order of importance, the ICF, as the leader of the process, is the forestry supervisory institution acting as executor of national policy on the conservation and development of forests, protected areas and wildlife. It focuses its activities on the administration and management of forest resources, protected areas and wildlife – including protection, restoration, harvesting, conservation and promotion – to encourage sustainable development and so support the social, economic, environmental and cultural interests of the country.

The other institutions directly involved in the implementation of the LAS are listed in Section 4.2, ordered according to the number of indicators and means of verification for which they are responsible under the Legality Matrices, in terms of, among other aspects, registration and control of taxes, property rights, social security and the environment. The description and indicators in the Legality Matrices for which each institution is responsible, and the resources needed for each of them, will be described in the verification manual approved by the JIC, as established in Annex II.

The following institutions and actors are also involved in the LAS:

The judicial officers and the law enforcement authorities (National Preventive Police, FFAA, PGR and MP) are responsible for prevention, control and law enforcement. The IAIP deals with matters relating to public information and transparency.

The National Directorate of Indigenous and Afro-Honduran Peoples (DINAFROH) reports to the Ministry of Social Inclusion (SEDIS) and seeks to improve the quality of life of the Indigenous and Afro-descendant population of Honduras through productive economic, cultural, political and social development.

Private forestry operators are operators performing activities along the timber supply chain, meeting the indicators in the Legality Matrices and filing the necessary supporting documents. They conduct the necessary and appropriate checks to ensure the legality of the timber they process, and they are subject to legality verification mechanisms implemented by the various State institutions, depending on their competencies. This group of operators includes natural and legal persons owning forest; micro-, small, medium and large forestry businesses; industrial loggers; private certifying bodies; community groups, etc. These operators must also consent to social oversight by civil society organisations via the CCFs in conjunction with State institutions.

Civil society organisations include, for the purposes of the this Agreement, CCFs operating at community, municipal, regional and national levels, non-governmental development organisations, and others that are active participants in the supervision of forest resources and their impact on the population and which perform social oversight of the activities of both authorities and operators. In order to do this, they use the procedures and protocols for handling complaints described in Section 10.3.

The PIAH, through their management bodies and organisations, are involved in social oversight and the implementation of mechanisms and procedures for free, prior and informed consultation. They are beneficiaries of the legalisation processes for forest lands run by specialist government institutions to recognise their ancestral claim to land. When PIAH are involved in commercial forestry activities as operators, they are subject to LAS procedures.

4.2.   State institutions

Ten government institutions are directly involved in the Legality Matrices of this Agreement. In order to facilitate the issuing of legal compliance certificates to all operators meeting the indicators in the Legality Matrices and the LAS requirements, all institutions involved in this Agreement will provide information to the ICF Legality Verification Unit on compliance with the indicators under their responsibility. This obligation also applies to the various ICF bodies.

The following is a presentation of each of the institutions involved in the Legality Matrices, broken down by the number of indicators and means of verification under their responsibility.

4.2.1.   National Institute for Forest Conservation and Development, Protected Areas and Wildlife (ICF)

The ICF is the supervisory institution for the forestry sector; it acts as executor of national policy on conservation and development of forest, protected areas and wildlife and has the authority to formulate programmes, projects and plans and create the technical and operative administrative units necessary to fulfil the purpose and goals of the Law on Forestry, Protected Areas and Wildlife (LFAPVS). It also has functions relating to the enforcement of other laws, such as the Law on Property, the General Law on Waters and the General Law on the Environment.

ICF activity focuses on the administration and management of forest resources, protected areas and wildlife, including their protection, restoration, productive use, conservation and promotion, so fostering sustainable development appropriate to the country's social, economic, environmental and cultural interests.

4.2.2.   Revenue Administration Service (SAR)

For the registration and control of taxes, the Revenue Administration Service (SAR) works in centralised coordination with the ICF to ensure that operators in the forestry production chain meet their tax obligations.

According to the Legality Matrices, the main responsibilities of the SAR – which replaced the Management Board for Income (DEI) – are to comply with and to enforce national and international tax regulations and to manage the collection of the duties and charges established under various laws.

4.2.3.   Municipalities

The municipal authorities are the governance and administration bodies for their respective municipalities, and their goal is to ensure the well-being of local residents, promote integral development and protect the environment.

Municipalities have a dual role in the LAS: firstly meeting their obligations in the Legality Matrices as owners of municipal forest land, and secondly as local government authorities, developing and enforcing municipal taxation. The municipalities have the Tax and Finance Administration System (SAFT), a tool which, in addition to facilitating the internal control process, also provides full information on municipal finances.

4.2.4.   Institute of Property (IP)

The IP is a decentralised government institution with powers for the registration and identification of property and property owners throughout the entire country; as such it maintains the national register of all acts and deeds relating to registration of property and ownership, including the listing, recognition, transmission, transfer, modification, taxation and cancellation of property rights.

4.2.5.   Ministry of Employment and Social Security (STSS)

The STSS has overall responsibility for employment policy and social protection systems for welfare and social security for workers and employers.

4.2.6.   Honduran Institute of Social Security (IHSS)

The Honduran Institute of Social Security is an autonomous entity, with legal personality and its own assets, independent of the national tax authority. Since its creation, it has been responsible for guiding, directing, providing and administering social security services to the working population of Honduras. Under the Constitution of the Republic, the Government, employers and workers are obliged to contribute to the funding, improvement and expansion of the social security system.

Social security for the working class in Honduras primarily rests on the coverage offered by the IHSS, hence its major influence on governance in health and social security matters. Outside the country's main cities (Tegucigalpa, San Pedro Sula, Ceiba and Puerto Cortés) where the largest forest operators are located, the IHSS is not represented in the other population centres of the country, and even less so in rural areas, where most forest operators work.

4.2.7.   Ministry of Energy, Natural Resources, Environment and Mines (MiAmbiente)

MiAmbiente is responsible for the formulation, coordination, execution and assessment of policies relating to the environment, ecosystems, the protection and use of water resources, coordination, the protection of flora and fauna, and compliance with the Environmental Impact Assessment on primary and secondary forest product companies.

4.2.8.   National Agrarian Institute (INA)

As the INA is currently undergoing institutional restructuring, it is not yet clear where it will be located and its current functions may change in the future. Should any functions important to the LAS that are currently performed by INA be assigned to other institutions in the future, those new institutions will be formally recorded for the purposes of this Agreement as the replacements of the INA.

The INA is a quasi-autonomous body responsible for implementing the country's farming policy, issuing title deeds for agroforestry land and providing technical assistance to rural stakeholders and Indigenous and Afro-descendant communities of Honduras, involving the rural population in the integral development of the country. The INA is responsible for registering ownership of farm land in coordination with the ICF and the IP in land ownership legalisation processes. In the particular case of ownership applications for national forest land, the INA will act in liaison with the ICF in order to maintain the use of such land for forestry; it is not its role to register ownership of forest land. A favourable ICF technical opinion is always required for assigning ownership of forest areas.

4.2.9.   Ministry of Agriculture and Livestock (SAG)

The Ministry of Agriculture and Livestock coordinates the aspects relating to sectoral policies implemented by institutions making up the public agriculture sector, specifically those relating to land tenure, rural funding, trade, forestry, crop and livestock farming and rural and forest development.

The SAG is responsible for the regulation of international trade in wildlife through the application of the Convention on International Trade in Endangered Species of Wild Fauna and Flora. In the context of this Agreement, this affects timber products taken from the species covered by the CITES.

4.2.10.   Customs Revenue Subdirectorate (DARA)

Executive Decree No PCM-083-2016 creates the Presidential Commission for Comprehensive Reform of the Customs System and Trade Bodies (COPRISAO). At present, during the process of comprehensive reform of the customs system and trade bodies, this commission will have direct authority over the Customs Revenue Subdirectorate (DARA).

Under the LAS, the Customs Revenue Subdirectorate is involved in the control and verification of exported and imported timber products and those in transit. A thorough review of the customs procedures relating to exports, which may have an impact on verification methodology, should be completed during the preparatory and organisational phase of this Agreement in order to identify potential gaps and other weaknesses.

4.2.11.   Government institutions indirectly involved

Below is a description of the government institutions indirectly connected to the LAS, i.e. they do not have full or direct responsibility or co-responsibility for the verification of the indicators in the Legality Matrices, yet they play a role as government control bodies, the functions of which are important to ensure the effective performance of the central government institutions and municipal authorities in relation to the LAS.

Special units, such as the National Interinstitutional Security Force (FUSINA) of the FFAA and the Interinstitutional Task Force against Environmental Crime (FTIA) are operational bodies for the prosecution of environmental offences under the National Strategy for the Control of Illegal Logging and Transport of Forest Products (ENCTI). These bodies have been set up by the Government on a temporary basis and have facilitated interinstitutional coordination to halt illicit acts and enforce environmental laws. The FTIA, in particular, comprises the ICF, MiAmbiente, judicial officers and law enforcement authorities (MP, PGR, National Preventive Police and FFAA). It is led by the ICF and operates as an interinstitutional coordination mechanism for dealing with investigations, sanctions and monitoring, particularly for crimes with a high environmental impact. The experience gained with these bodies will serve as a model should a permanent, long-term mechanism be created. The FUSINA, meanwhile is headed by the FFAA and acts on court orders.

4.2.11.1.   National Preventive Police (PNP)

The role of the national preventive police is to ensure that residents in Honduran territory can freely exercise their rights and freedoms by enforcing the laws and regulations on the protection of life, conservation of natural beauty and the protection of the environment, both in urban and rural areas.

Under the LAS the PNP assists in checks on the transportation of timber products, together with the ICF, judicial officers and all other law enforcement authorities. For example, the PNP operates at transit checkpoints alongside the ICF and the SAR (green checkpoints).

4.2.11.2.   Public Prosecutor's Office (MP)

The Public Prosecutor's Office represents society and takes public legal action before the courts; one of its functions is to investigate environmental crimes in accordance with the current legal instruments penalising environmental acts constituting environmental crimes in Honduras, and with international treaties.

In the forestry sector the Public Prosecutor's Office acts through the Special Environmental Prosecution Service (FEMA). As representative of Honduran society, its main role consists of investigating, documenting and presenting charges before the Honduran courts in penal proceedings resulting from actions causing damage to the environment, ecosystems, natural resources and public health.

4.2.11.3.   Attorney-General's Office (PGR)

The Attorney-General's Office is responsible for promoting, representing and upholding the rights of the State in all court proceedings to which it is party; it acts as a general representative of the State.

4.2.11.4.   Supreme Court of Justice (CSJ)

The power to issue and enforce judgments is exclusive to the courts of the Republic. The power to impart justice falls to independent magistrates and judges.

4.2.11.5.   Honduran armed forces (FFAA)

The FFAA are the national institution whose primary function is to defend Honduras's territorial integrity and sovereignty, to keep the peace and public order, and to uphold the Constitution.

Since 2006 the FFAA have been charged with supporting the work carried out to protect the country's forests and ecosystems; this is done through the Dirección de Apoyo al Manejo de Ecosistemas y Ambiente (Directorate for Support of Ecosystem and Environmental Management) (C-9), through which they assist the law enforcement competent authorities.

4.2.11.6.   National Directorate of Indigenous and Afro-Honduran Peoples (DINAFROH)

This is the department of the Ministry of Social Inclusion (SEDIS) that seeks to improve the quality of life of the Indigenous and Afro-descendant population of Honduras through productive economic, cultural, political and social development. With the coordination of the Ministry of Employment and Social Security (STSS) and support of the DINAFROH, the Honduran Government is currently engaged in a process of consultation that will serve as the basis for drawing up and passing a law on free, prior, informed consent with all the organisations of the nine Indigenous and Afro-descendant Peoples of Honduras, with the support of the UNDP and the UN Special Rapporteur on the Rights of Indigenous Peoples.

4.2.11.7.   Institute for Access to Public Information (IAIP)

The IAIP is a decentralised government body that is responsible for promoting and facilitating citizens' access to public information, and for regulating and overseeing institutional procedures for protecting, classifying and keeping public information.

Under the LAS the IAIP's responsibilities include ensuring that citizens are able to exercise their right to participate in the management of public affairs, and that there is transparency in the exercise of public functions and in the relations between the State and private individuals. Information concerning the forestry sector is published on the IAIP's single transparency portal and on the ICF portal, and is described in detail on the portal of each institution. In addition, Annex VIII includes a supplementary measure to set up a management system for information intended for the public.

4.2.11.8.   National Commission on Human Rights (CONADEH)

The CONADEH monitors compliance with the rights and guarantees laid down in the Constitution of the Republic, the Universal Declaration of Human Rights and other treaties and conventions ratified by Honduras.

4.2.11.9.   National Research System for Forests, Protected Areas and Wildlife (SINFOR)

SINFOR is a public-private interinstitutional platform created by the LFAPVSwhich organises, fosters and promotes scientific research into the forestry sector, protected areas, wildlife and the like, and encourages transfers of know-how and technology in Honduras.

Its role includes providing up-to-date information for the formulation of policies, rules and regulations that ensure sustainability and governance for the sector. In its work of planning and fostering research into forests, protected areas and wildlife, SINFOR's priority is to seek research opportunities that can be identified in national plans and strategies, such as the ENCTI, and strategic plans for each of the member institutions and other initiatives relating to the sector.

4.3.   Private forestry sector

Under the LAS, the private forestry-sector actors include those who, for profit, manage or produce the raw material, extract it from the forest, transport, process and place it on the market, and engage in its export and import.

Given the diversity of organisations involved and the range of their commercial activities, several classifications have been created. The Tax Code classifies them as: (i) natural persons; (ii) legal persons, which includes professional partnerships and commercial companies, cooperatives and associative enterprises and, in general, associations or entities that under public or private law have the status of legal persons; and (iii) entities, communities, organisations (Indigenous and Afro-descendant Peoples of Honduras, community groups) or legal transactions that constitute a functional or asset unit, even if they do not have a legal personality.

Another category is that arising from the number of persons working at each enterprise: forestry microenterprises, most of them set up as family businesses, employ a maximum of four people; small forestry enterprises employ 5-10 people; medium-sized forestry enterprises employ 11-100 people; and large forestry enterprises have over 100 employees.

The LFAPVS establishes three categories of company: a primary forest product company, that carries out the initial processing of the roundwood or any other timber or non-timber raw material sourced from the forest; a secondary forest product or processing company, that processes products from a primary forest product company; lastly, the timber or timber-product yards, that place the various timber products on the market.

It should be noted that the above description applies only to the industry that uses pine timber; in the case of broadleaved timber, on the date of entry into force of this Agreement, no primary forest product companies are registered or operating in Honduras. Furthermore, the timber extracted from the forest is generally in the form of roughly squared wood rather than roundwood, because it is squared in the forest and hauled to collection points for onward transportation by motorised vehicles to the secondary forest product companies or timber yard for sale. Stockpiles or collection centres are by definition places where timber products are stacked for subsequent transfer, with no change in their ownership. In contrast, timber yards are places where yard owners buy timber products from their suppliers and sell them to their customers.

In its routine inspections, and thanks to the social oversight reports from the CCFs, the ICF will regularly monitor any changes in the forestry production chain, including pine and broadleaved forests, forest plantations or scattered trees outside forests, in order to prevent the occurrence of any forestry activities that are not covered by the LAS. If in the future there are changes in the organisation of the forestry sector as a result of the review of the applicable legal framework, the LAS will be adapted to ensure that all sources of timber are covered.

It is these operators who implement the production processes and it is therefore they who must comply with the indicators and means of verification within their individual spheres of competence. To do so, they apply adequate and relevant internal controls concerning harvesting and production licences, complying with their obligations in matters of employment, environment, taxes (both national and municipal), transportation, trade and any others specified in the various indicators. They are also required to keep proper records of the necessary supporting documents and stipulated means of verification.

Likewise, private forestry sector organisations are subject to mechanisms for verifying legal compliance that are implemented by the institutions of the State, in accordance with their competencies.

4.4.   Civil society organisations

The Honduran legal framework confers on the country's citizens the right and the duty to participate in and exercise social control over actions taken by the authorities. The forestry sector contains a variety of civil society organisations with an interest in enforcement of the law, and they play a very active and effective part in the means of verification. These organisations are:

4.4.1.   Local organisations

The LFAPVS sets up bodies for public participation, consultation and support for the ICF, such as the CCFs, which are organised and operate at local or community, municipal, regional and central level. The ENCTI indicates the importance of these bodies for exercising social control, particularly at municipal and community levels, supporting verification of the forest management plans, annual operating plans or other types of authorisation, as well as for promoting the consumption of legal timber. This is achieved in coordination with the institutions of the State and particularly the ICF.

4.4.2.   Non-governmental development organisations

A variety of domestic and international non-governmental development organisations (NGDOs)  ( 3 ) support forestry sector actions at both an institutional and territorial level. Their activities address, inter alia , organisation, capacity-building for public participation bodies at municipal and community level, political impact, social control, technical support and human rights defence.

During the preparatory and organisational phase of this Agreement, the NGDOs will develop their own methodology for performing social oversight actions. The reports on this social oversight will be lodged with the JIC, among other bodies, for appropriate action. This will set up a participation system that will contribute to the ongoing improvement of governance procedures established under this Agreement.

A system will also be set up to deal with complaints, which will support the operation of this function of social oversight, described in Sections 10 and 11.

4.5.   Indigenous and Afro-descendant Peoples of Honduras

Honduras is home to nine Indigenous and Afro-descendant Peoples of Honduras. Most of these peoples live in extensive forest areas, in which both protected areas and productive forests are to be found. These peoples are: the Pech, Tawahkas, Lencas, Maya Chortís, Tolupanes, Miskitu, Nahuas, Garífunas and English-speaking people of African origin, who have organisations that represent them, including the nationwide Confederation of Indigenous Peoples of Honduras (CONPAH).

These peoples are actors in the implementation of the LAS, including in relation to Principle 2 of the Legality Matrices: "Honduras respects the rights of the Indigenous and Afro-descendant Peoples of Honduras living in forest areas".

In the forestry sector, the Indigenous and Afro-descendant Peoples of Honduras are:

—

the beneficiaries of the legalisation processes and the respect for the territories ancestrally possessed by them;

—

involved in the implementation of the mechanisms and procedures for Free, Prior and Informed Consent (FPIC) set up in order to respect the self-determination and autonomy, in accordance with ILO Convention No 169 and the UN Declaration on the Rights of Indigenous Peoples; and

—

engaged in commercial activities in productive forest areas, in compliance with the Legality Matrices and the applicable requirements of the LAS.

4.6.   Capacity-building

Capacity-building to ensure effective operation of the system and ensure the legality of timber products is described in Annex VIII. The formulation of each measure will be subject to the review of the capacity needed by all actors involved in implementing the LAS.

5.   COVERAGE/SCOPE OF THE LAS

All timber and timber products of Honduran origin that are covered by the LAS must be sourced from private, municipal or national forests (whether natural or planted) managed under administrative and technical criteria of maximum performance, multiple use and social equality, so as to ensure the sustainability of the ecosystems and their productive, protective and environmental capacity.

The LAS will also apply to timber from other countries when the importers of it can prove that it comes from legal sources and has been imported in compliance with the laws of both the timber's country of origin and Honduras. All operators will be subject to the LAS, including those who have their own private certificates of forest management and chain of custody, and those who own tree plantations for commercial purposes.

5.1.   Timber products included in the LAS

The LAS covers all the products defined in Annex I to this Agreement. Article 102 of the LFAPVS prohibits the export of certain timber products, stating that timber from broadleaf species from natural forests may be exported only as processed wood. The export of round or roughly squared wood of these species is therefore not permitted.

Although roundwood or roughly squared wood of these species may not be exported, it is covered by the LAS, regardless of the extent to which it has been processed.

Timber products that are not listed in Annex I to this Agreement are not subject to the FLEGT licence procedure when they are exported to the Union. In this case, Union importers of these products from Honduras must exercise due diligence in accordance with the Regulation (EU) No 995/2010 of the European Parliament and of the Council of 20 October 2010 laying down the obligations of operators who place timber and timber products on the market  ( 4 ) , in order to demonstrate that they are legal.

5.2.   Markets covered by the LAS

The LAS will apply to timber products placed on all markets, whether export or national. However, efforts to enforce the LAS will be prioritised by distinguishing between markets as follows:

—

Union market: Verification of the legality of products exported to the market of the Union will apply as stipulated in this Agreement, which considers a FLEGT licence to be a prerequisite as soon as it has been confirmed that the scheme is ready to issue FLEGT licences following the procedure laid down in Annex VII.

—

Other international markets: Verification of the legality of exported products will apply as stipulated in this Agreement, regardless of the country of destination of the export, and their legality will be demonstrated by means of an H-Legal licence.

—

Domestic market: Verification of the legality of products placed on the domestic market will apply as stipulated in this Agreement, and the legality of the operators that own these products will be demonstrated by means of legal compliance certificates.

In all these phases for the implementation of the LAS, measures will be adopted to prevent the entry of timber of unknown or illegal origin into the forest supply chain. The ability to implement the LAS will be enhanced by applying the measures included in Annex VIII.

5.3.   Sources of timber covered by the LAS

The sources of timber that are covered by the LAS are categorised as follows:

5.3.1.   Timber harvested on the national territory

Timber harvested on the national territory comes from the following sources:

1.

Forests, whether natural or plantations.

2.

Areas in which agroforestry systems are established, i.e. natural or planted trees in association with other species such as coffee, cocoa or other agricultural crops.

3.

Scattered coniferous or broadleaved trees outside forests.

Harvesting may be carried out in either broadleaved or pine forests, regardless of land tenure. Harvesting is authorised in one of the following ways:

—

Under a forest management plan and its annual operating plans, as approved by the ICF for:

—

community beneficiaries who have group forest-management contracts (community forest management contracts, CMFC);

—

individual beneficiaries of forest management contracts; and

—

owners of private, municipal ( ejido ), national and fiscal forest.

—

Under a special plan for agroforestry systems and its annual felling plans for owners of agroforestry systems on private and municipal ( ejido ) land.

—

Under a rescue plan for harvesting forests affected by natural disasters, pests or diseases, public or private construction works and changes of vegetation on agricultural land. Rescue plans for sites where there are to be public or private construction works or changes of vegetation on agricultural land require an environmental impact assessment before an environmental licence certificate is issued by MiAmbiente. Rescue plans linked to a change in vegetation for temporary or permanent agricultural crops apply only to agricultural land. Article 93 of the LFAPVS stipulates that the natural use of forest land must be preserved and respected in conformity with the policies and legal regulations on land-use planning. Likewise, Article 294 of the Regulation for the LFAPVS forbids changes of vegetation in productive forests with management plans and on land with a high forestry potential. Section 7.7 of this Annex describes in greater detail the verification of timber products that are sourced from a change in land use.

—

Under a recovery plan for the extraction of forestry by-products covered by an earlier licence (AOP, AFP, certified plantation harvesting licences and rescue plans).

—

Certified plantation harvesting licences (APC) for the extraction of timber from forest plantations certified by the ICF.

Traditionally scattered trees outside forests, located mainly in residential and livestock areas, have been the principal source of supply of timber for carpentry shops. However, Honduras does not yet have legislation regulating the commercial harvesting of these trees, which is why a supplementary measure on this issue was included in Annex VIII. When this legislation comes into force, it will be included in the relevant indicator of the Legality Matrices following the procedure envisaged in section 4 of Annex II.

Prior to the update of the Legality Matrices, this source of timber will already have been included in the LAS and forestry sector operators that harvest this source of timber must apply all the other LAS requirements.

5.3.2.   Imported wood

Both natural and legal persons that import timber must implement due diligence procedures to prove that the risk of illegal conduct concerning the imported timber is negligible and that the exporters of the country of harvesting respect the law. The scope of this due diligence procedure will be determined during the preparatory and organisational phase of this Agreement; a supplementary measure has been included in Annex VIII concerning the implementation of due diligence procedures in Honduras.

5.3.3.   Timber not covered by the LAS

The following two types of timber are not included in the LAS and will not be subject to the FLEGT licensing scheme:

—

Timber in transit

Timber in transit is timber from third countries or timber that enters Honduras temporarily under a single transit declaration, the final destination of which is another country. It must be identified and kept separate from the supply chain of timber produced in Honduras or imported. Timber in transit will not be included in the LAS and therefore no FLEGT or H-Legal licence for export can be issued for it.

Section 7.5 explains how the mechanisms to control the transit of these products will operate to ensure that they do not enter the national-market supply chain.

—

Confiscated timber

Timber products confiscated for infringing Honduran legislation or for failing to comply with due diligence obligations in the case of imported timber are excluded from the LAS. The ICF and the security forces are empowered to conduct the necessary investigations to prosecute cases through the Public Prosecutor's Office. Section 7.6 explains what happens to timber that is seized or confiscated.

5.4.   Scope of operators included in the LAS

Under this Agreement, an "operator" is any natural or legal person that engages in activities in the forest production chain. The scope of the activities of operators covered by the LAS is described in Table 1.

Table 1.

Scope of activity of forestry sector operators.