FSC blocks three companies from Peru

FSC has blocked three Peruvian certificate holders and their FSC certification has been suspended because they were unable to verify the origin of wood they sold and purchased from the Amazon. As a result, they can no longer claim FSC certification on their products, or use the FSC trademark label. They will also not be able to seek recertification until FSC lifts their blockage.

This decision is based on the outcomes of the Amazon Timber investigation that FSC and Assurance Services International (ASI) started in 2019. This investigation focused on the supply chains of FSC-certified Cumaru, Ipe, and Jatoba timber species from the Amazon rainforests.

The blocked and suspended certificate holders (along with their certificate numbers) are:

• Maderera Rio Yaverija SAC (MADERYJA) (NC-FM/COC-002175)
• Maderera Rio Yaverija SAC (CU-COC-810564)
• Maderera Industrial Isabelita SAC (EMINI) (CU-COC-858403)

Maderera Rio Yaverija SAC (MADERYJA) (NC-FM/COC-002175) and Maderera Rio Yaverija SAC (CU-COC-810564) were also unable to justify the volume mismatches and false claims detected over the course of this investigation.

This investigation has also resulted in the termination of the FSC certificates of Nordisk Timber EIRELI (IMA-COC-000547). Hence, they can no longer claim FSC certification on their products. However, FSC has not blocked the company, therefore they may seek recertification with a different certification body. For more details about the certification status of these companies, please visit the FSC Certification Search tool.

When ASI finds evidence of false claims, fraud or any other major non-conformity in the trading patterns of an FSC-certified comapany, the concerned certification body is advised to either suspend or terminate that company’s FSC certificate. Additionally, ASI may recommend FSC to block this company from the FSC system to safeguard the supply chain and FSC’s brand credibility. When FSC blocks a company, it cannot seek recertification, in addition to not being allowed to claim FSC certification on its products because their trademark license agreement with FSC is revoked.

For more details about false claims and blockage from the FSC system, please refer to the FSC Advice Note 18 on False Claims (available on page 24 of this document).

The Amazon Timber transaction verification loop was launched in 2019, in which 121 certificate holders of FSC-certified Cumaru, Ipe, and Jatoba wood, from Brazil and Peru, were requested to report their transactions for 2018.

FSC and ASI decided to investigate these supply chains because of a number of incidents reported to ASI, which highlighted a potential integrity risk for FSC. Brazil and Peru account for more than 80 per cent of certificate holders selling Cumaru, Ipe, and Jatoba species of timber into the global market; hence the investigation focused on these two countries. These three species of wood have a high commercial value and face a risk of overharvesting.