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Heat Treatment ISPM #15 Compliance Course 22 – 24 November 2005

STA Training Sdn Bhd (STAT), Sarawak Forestry Corporation (SFC) and Crop Protection and Plant Quarantine Services of the Department of Agriculture (CPPQ, DoA), Sarawak and the Sarawak Timber Industry Development Corporation (STIDC) are jointly organizing the above course specially for members of the Sarawak Timber Association who had been registered with the Department of Agriculture to be heat treatment providers under ISPM No. 15.

As this first course is a “hands-on” course, intake is limited to 15 participants only, on a first-come first serve basis. The Crop Protection and Plant Quarantine Services of the Department of Agriculture has recommended that your Company should send one participant to attend this course. Please note that trained heat treatment operator will be a requirement for the renewal of your registration once your current registration expires.

Should you have any queries regarding the above course, please do not hesitate to contact the STAT Secretariat at 082-332 222.
 

Business Meeting between STA and China Timber Distribution Association (CTDA)

STA hosted a business meeting between its members and the delegates from CTDA on 14 October 2005 at Wisma STA, Kuching. STA represented by 27 representatives from 17 member companies was led by the Association’s Vice Chairman, Mr. Tiong Kiong King while the 28-member delegation from CTDA was led by its Executive Vice Chairman, Mr. Zhu Guang Xian. This delegation comprises representatives from the 12 provinces in China.

CTDA, established in 1985, is the largest, the most influential and a very well organized national timber industry association in China, based in Beijing. Currently, CTDA has over 500 members from across China.

This visit by CTDA to STA was arranged and coordinated by the Malaysian Timber Council Shanghai office.

Through this business meeting, both Associations had gained an in-depth knowledge about each other’s roles and functions. They also exchanged market information and established networking among the members of both Associations.
 

STA seeks Exemption for Timber Industry Workers from certain SLO Provisions

The Sarawak Timber Association (STA) had requested that the timber industry’s employees, particularly those in “forestry undertaking”, be exempted or excluded from the application of certain provisions in the amended Sarawak Labour Ordinance (SLO).

A STA delegation led by its Chairman, YBhg Datuk Leo Chai, had made this request directly to the Human Resources Minister, YB Datuk Wira Dr Fong Chan Onn in a meeting at the latter’s office at Menara PERKESO in Kuala Lumpur on 20 September 2005.

Dr. Fong was briefed by STA Honorary Secretary, YBhg Dato Henry Lau, on the rationale for the exemption and the former said he would direct his Ministry to look into STA’s request. The Minister is empowered under Section 2B of the SLO to make certain exemptions.

STA said that the amendments were timely and that it would harmonise existing labour laws in Malaysia. However, certain amendments were not feasible or practical for workers in forestry undertaking.

“Since the employers and workers in the Sarawak timber industry have co-existed with the present work ethics, practices and environment for 50 years or so with success in business undertakings and industrial harmony, the Ministry should be sympathetic and understand the needs of the timber industry,” it said.

Above: YBhg Datuk Leo Chai handing over STA’s request to the Human Resources Minister, YB Datuk Wira   Dr. Fong Chan Onn, witnessed by Ybhg. Dato Henry Lau, Mr. Philip Choo and other STA representatives.

Official Opening and Launching

Official Opening of STA Exhibition Centre and the
Launching of STA Mutual Sdn Bhd and STA Training Sdn Bhd
on Monday, 16 May 2005 at Wisma STA, Kuching
by YAB Pehin Sri Dr. Haji Abdul Taib Mahmud, the Chief Minister of Sarawak

YBhg Datuk Leo Chai presenting a mock cheque to YAB Pehin Sri Dr. Haji Abdul Taib Mahmud who is receiving on behalf of Sarawak Higher Education Fund Charitable Trust. YBhg Datuk Leo Chai presenting a mock cheque to YABhg Datuk Amar Puan Sri Dr. Hajjah Laila Taib who is receiving on behalf of Sarawak Heart Foundation, witnessed by YAB Pehin Sri Chief Minister of Sarawak.
YAB Pehin Sri Chief Minister of Sarawak admiring sample of laminated flooring. Looking on, Mr. Tiong Kiong King (left) and YBhg. Datuk Leo Chai (right).	Trying out the rice grinder.

Signing of training accord between the six major timber companies.

Announcement of the Implementation of Directive 2004/102/EC

The Ministry of Agriculture and Rural Development of the Republic of Hungary presents its compliments and kindly inform that on the 1st of March 2005 Commission Directive 2004/102/EC has came into force in the EU member-states regulating the import requirements of wood packaging material including packing cases, crates, drums, pallets, load boards, pallet collars and dunnage.

According to this Directive, any wood packing material (made of raw wood) exported to Hungary will be refused entry to the country if the requirements - set up in ISPM 15 - are not met.

According to the standard, globally used marks have to certify that the wood packing material that bears the mark has been subjected to an approved measure (heat or methyl-bromide treatment).

Please, inform the National Plant Protection Authority, the affected representatives of the industry and the traders of your country about this announcement.

The Ministry of Agriculture and Rural Development of the Republic of Hungary expresses the assurance of its highest considerations.

Revised Guidelines for Market Development Grant (MDG) 2005

The STA Secretariat has received a letter Ref. No.: MT/BPE/4.6.00.01/11.00 dated 27 April 2005 from MATRADE informing on the revised guidelines for Market Development Grant (MDG).

The following are the recent changes to the MDG:

a. Companies Eligible to Apply for MDG

* Manufacturing sector - having an annual sales turnover not exceeding RM25 million (based on the latest financial Report or not more than 150 full-time employees
* Services sector - having an annual sales turnover not exceeding RM5 million (based on the latest financial report) or not more than 50 full-time employees
* Professional services - it will also include partnership and sole proprietors apart from companies incorporated under the Companies Act
* Trading companies - having annual sales turnover of between RM10 million - RM25 million or export sales of RM3 million or more. (Women owned enterprises are exempted from this condition)

b. Scope of Eligible Activities

The scope of eligible activities for MDG have been extended to include:
* Participation in Industry Related International Conferences
* Participation in meetings related to negotiations on Mutual Recognition Agreement (MRAs) by representatives of the Trade and Industry and Professional Services Association
* Setting up sales promotion office overseas to promote exports of Malaysian    products and services

c. Eligible Activities for Women Enterprise

The eligible activities for women owned enterprises have been extended to cover:
* Participation in Malaysia Export Exhibition Centre (MEEC) at MATRADE, Wisma    PKNS, Jalan Raja Laut, Kuala Lumpur
* Participation in local export training seminars

d. Maximum Grant

Companies can now obtain a 50% matching grant on the approved cost of the eligible activities subject to a maximum of RM100,000 per company. (Previously a maximum grant of RM60,000.00 per company) The RM100,000 grant is however subject to the availability of funds.

For further information on the revised guidelines and application forms, please visit MATRADE's website at http://www.matrade.gov.my/. For inquiries, please contact the Market Development Grant Unit at Tel: 03-2616 3333

 

Briefing on Labour Ordinance (Sarawak) Chapter 76 (2005)

The Department of Labour Sarawak will be organising a Briefing on Labour Ordinance (Sarawak) Chapter 76 (2005). Details as follow:

Date   : 18 April 2005, Monday
Time   : 8.30 am
Venue : Dewan Auditorium, 17 Floor, Bangunan Sultan Iskandar, Jalan Simpang Tiga, Kuching

Programme
8.30 am  Arrival of guests
9.00 am  Welcoming Address by Director of Labour Department, Sarawak, Mdm.Tan Gake Hua
9.15 am  Address by Minister of Human Resources, Datuk Wira Fong Chan Onn
9.30 am  Tea break & Press Conference
10.00 am Briefing on Job Clearing System
10.30 am Briefing on Labour Ordinance (Sarawak) Chapter 76 (2005)
12.00 pm End

For further inquiries and to register for the briefing, please contact:
Mr. Nigel Na'of/ Mr. Lim Inn Tong/ Pn. Titek Pospa
Tel: 082-610410

Please note that similar briefings will be organized throughout Sarawak. However, the dates are yet to be confirmed. The Association will keep you posted on the confirmed dates and venues.

ASEAN-China Free Trade Agreement

STA received a fax dated 25 November 2004 from the Malaysian Timber Industry Board with regards to the ASEAN-China Free Trade Agreement (FTA).

The negotiation on the Free Trade Agreement between ASEAN and China has been finalised and the agreement will be implemented with effect from 1 July 2005.

Thus tariffs for all imported products (with a few exceptions) that are being traded between the ASEAN countries and China will be lowered gradually.

Malaysia has listed all categories of plywood under the ‘Sensitive List’. Plywood imported from China will not be given a lower tariff even with the enforcement of this FTA.

China has also listed a few timber products such as particleboard, fibreboard and plywood under the ‘Sensitive List’. Please refer to Appendix I for information on these products. With this listing, the same products exported from ASEAN to China will not be given a lower tariff than what is being agreed in the FTA.

As China is one of the major markets for fibreboards, requests had been made to China to remove plywood and fibreboard from their sensitive list but the request was turned down.

Import tariff for products listed as ‘sensitive’ need to be lowered gradually according to the schedule given. The products listed under this list will be revised in 2008 to lower the tariff line and to improve market access of these products. A schedule about the lowering of tariff under ‘normal track’ and ‘sensitive’ is given in Appendix II.

Appendix I

China’s Timber Products under the ‘Sensitive’ and ‘Highly Sensitive’ Lists:

Highly Sensitive List:
1. 44109000: Particleboard & similar board of other ligneous materials
2. 44111900: Fibreboard of a density > 0.8 g/cm3, nes
3. 44113100: Fibreboard of a density > 0.35 g/cm3 but <0.5 g/cm3, not worked
4. 44113900: Fibreboard of a density > 0.35 g/cm3 but <0.5 g/cm3, nes
5. 44119100: Fibreboard of a density < 0.35 g/cm3, not worked or surface covered 6. 44122200: Plywood > 6 mm non-coniferous outer ply, with specified tropical     wood
7. 44129200: Plywood containing at least one layer of specified tropical wood
8. 44129300: Plywood containing at least one layer of particle board
9. 44140000: Wooden frames for painting, photographs, mirrors or similar objects 10. 44160000: Casks, barrels, vats, tubs, etc & parts thereof, of wood
11. 44170000: Tools, broom/brush bodies of wood: boot or shoe trees of wood

Sensitive List:
1. 44101100: Waferboard, incl. Oriented strand board of wood
2. 44101900: Other particle board & similar board of wood
3. 44111100: Fibreboard of a density > 0.8 g/cm3, not worked or surface covered 4. 44112100: Fibreboard of a density > 0.5 g/cm3 but < 0.8 g/cm3, not worked
5. 44119900: Fibreboard of a density < 0.35 g/cm3
6. 44121400: Plywood with < one outer ply of non-coniferous wood, nes, each ply < 6 mm
7. 44152000: Pallets, box pallets & other loads of wood
8. 44181000: Windows, French-windows & their frames of wood

Appendix II

Modality for Tariff Reduction and Elimination for Tariff Lines Placed in the      Normal Track

Tariff lines place by each Party in the Normal Track on its own accord shall have their respective applied MFN tariff rates gradually reduced and eliminated according to the following Schedules:

ASEAN 6 and China
 

       * The first date of implementation shall be 1 July 2005

Modality for Tariff Reduction/ Elimination for Tariff Lines Place in the Sensitive Track
 
The Parties shall reduce and, where applicable, eliminate the applied MFN tariff rates of tariff lines placed in the Sensitive Track according to the following     Schedules:
 
ASEAN 6 and China shall reduce the applied MFN tariff rates of tariff lines placed in their respective Sensitive Lists to 20% not later than 1 January 2012.These tariff rates shall be subsequently reduced to 0-5% not later than 1 January 2018.

Modality for Tariff Reduction for Tariff Lines Placed in the Highly Sensitive List (HSL)

All tariff lines placed under HSL shall have their applied MFN tariff rates reduce to 50% by 2015 for ASEAN 6 and China
 

Briefing on Procedures for Recruitment of Immigrant Workers in Sarawak

STA is organising a one-day Briefing on Procedures for Recruitment of Immigrant Workers in Sarawak. Details as follow:

Date: Monday, 20 December 2004
Venue: Wisma STA, Kuching
Speakers: Labour Department & Immigration Department of Sarawak

Topics covered:
    · Guidelines for issue of Licence to recruit Immigrant Workers
    · Induction Course for Immigrant Workers
    · Guidelines to recruit Expatriate Officers and Foreign Workers
    · Penalty for non-compliance.

Programme:
  8.30am - 9.00pm    REGISTRATION
  9.00am -12.30pm   WELCOME ADDRESS by Chairman
                             STA MORNING SESSION
                             by the Labour Department Sarawak                           
                          - Labour Department Procedures to recruit Immigrant Workers
                          - Morning Tea
                          - Induction Course for Immigrant Workers
                          - Questions & Answer
  
  12.30pm - 2.00pm  LUNCH
  2.00pm - 4.30pm    AFTERNOON SESSION
                               by the Immigration Department Sarawak
                          - Immigration Department Procedures to recruit Immigrant Workers
                          - Questions & Answer
                          - Afternoon Tea

For Members who are interested to attend the briefing, please kindly inform the STA Secretariat latest by 15 December 2004.

Logs for Local Processing

Harwood Timber Sdn Bhd was appointed on 24 January 1994 and 28 January 2002 respectively to monitor the movement of reservation quota (RQ) logs (fixed under Section 67A(1)(b) of the Forests Ordinance and meant for local processing) and to issue Export Clearance Certificate for export logs. Recently, the State Government had given approval for the role of Harwood Timber Sdn Bhd to be extended to cover other logs which are meant for local processing only and are not allowed to be exported. These logs are:-

a) Ramin logs
b) "Baby Logs" (logs with diameter 33cm and below) from Peatswamp and Hill Forests
c) Hollow Alan Batu logs
d) Logs produced from Agri-Conversion areas and by licences for Planted Forests (LPF) areas.

This directive shall be implemented effective 15 November 2004.

As such, the inspection and endorsement procedures for the above logs are similar to the current procedures for inspection and endorsement of RQ logs. The following endorsement fees will be charged which is less than the fee charged for RQ logs:-

a) For a timber licensee selling its logs to a third party - RM0.60/m3 is payable each by both the licensee and the processor.
b) For a timber licensee selling its logs to its own mill - RM0.80/m3 is payable by the licensee only.
c) Vessels transporting the above logs and issued with shipping pass are charged shipping administration of RM0.60/m3.

A Study on Implementation of ASEAN Harmonised Tariff Nomenclature (AHTN) for Wood-based Sector

MITI is conducting a study on the present coverage of ASEAN Harmonised Tariff Nomenclature (AHTN) coding system to identify problems faced by the industries.

Effective 1 January 2004, Malaysia has implemented the AHTN Codes with 8 digits for trading within ASEAN countries. This is in line with efforts to simplify and facilitate trade as well as to standardize the products classification in the region.

To assess the existing AHTN Codes covering all import and export products, MITI is seeking feedback on whether any difficulty was encountered in determining product codes, description or tariff line under the new AHTN system. The feedback is important so as to suggest improvement on the existing AHTN list. Kindly forward/submit your feedback to STA Secretariat latest by 25 November 2004.

For assistance, please contact:
Basiron Jumin / Zulnaidy Zulkifli
Tel: 03-6203 5894 / 6203 5964
Email: basiron@miti.gov.my / zulnaidy@miti.gov.my

Thank you for your cooperation.

Amendment, Adoption and Implementation of ISPM 15 by US Animal and Plant Health Inspection Service (APHIS), Department of Agriculture, US

Please be informed that the US Animal and Plant Health Inspection Service (APHIS) has amended the regulations for the importation of unmanufactured wood articles to adopt the international standard entitled “Guidelines for Regulating Wood Packaging Material in International Trade” that was approved by the Interim Commission on Phytosanitary Measures of the International Plant Protection Convention on March 15, 2002. The Standard calls for wood packaging material to be either heat treated or fumigated with methyl bromide.

The amendments are as follow:

• Changing the term “solid wood packaging material” to “wood packaging material” throughout the regulation

• Excluding from treatment requirements are pieces of wood that are less than 6 mm (0.24 in) in any dimension as pieces of wood this size are too thin to present any significant pest risk

This Regulation will come to effect from 16 September 2005. For further information, please visit the following website:

http://www.aphis.usda.gov/lpa/issues/wpm/wpm.html
         
         Under the heading
           "General Information"
           "Regulations"

As some countries do impose additional requirements and/or delay implementation of this requirement, it is advisable you check with your own buyers on these matters.

Signing Ceremony of the Memorandum of Understanding between Borneo Tree Seeds & Seedlings Supplies Sdn Bhd and STA Training Sdn Bhd

A Memorandum of Understanding (MoU) between Borneo Tree Seeds & Seedlings Supplies Sdn Bhd (BTSSSSB) and STA Training Sdn Bhd (STAT) was signed on 1 September 2004 at Wisma STA, Kuching. The signing of this MOU showed the Association’s continuing support for research and development activities that will not only add knowledge to forestry science but will also be of benefits to our members, especially those companies which have been issued Licences for Planted Forests.

(BTSSSSB) is a subsidiary company incorporated by the Ta Ann Group to conduct research into the production of genetically improved materials especially of exotic species. BTSSSSB has collaborated with the Forest Department of Sarawak, the Commonwealth Scientific & Industrial Research Organisation (CSIRO) in Australia as well as the Forest Science Institute on these aspects. Under the terms of the MOU, RM2 million will be made available by the STAT to the BTSSSSB for the intensification of this project.

The research aims to:
(a)    to produce genetically improved species (e.g. Acacia species);
(b)    to propagate more fast growing species to broaden the species base so as         to increase additional planting materials and stock; and
(c)    conduct extensive research and development on the impact and         management of pests, diseases, fire, soil on the growth of exotic forest         plantation species

The supply of planting stock materials of high genetic quality is one of the crucial factors that would ensure the successful establishment of high-yielding forest plantations that would ensure a steady supply of raw materials to our wood-processing industry. Our venture into a new tree plantation industry for timber production is competitive internationally. These tree plantations would also ensure a sustainable and consistent supply of wood of uniform quality to the timber industry of the State, which additionally it could trigger the value-added timber processing industries of the State.

Appointment of Chief Executive Officer

Dr. Lee Hua Seng has been appointed as the Chief Executive Officer of STA as of 1st August 2004.
 

After graduating from the Australian National University with a B. Sc. (Forestry) (Hons.) on a Colombo Plan Scholarship in 1969, Dr. Lee joined the Forest Department of Sarawak in 1970 and remained with the department till his retirement in January 2003. His last appointment was the Deputy Director of Forests. He was awarded fellowships while in service, which led to his obtaining a M. Sc in 1981, and Ph. D. in 1997. While in the Department he was involved in natural forest and plantation silviculture, experimental design, reforestation and rehabilitation, Kyoto Protocol, M C & I, sustainable forest management, forest ecology, national parks and wildlife management. After retirement he spent 6 months at the Centre for Southeast Asian Studies of Kyoto University as a Visiting Research Scientist researching on medicinal plants and indigenous fruits of Sarawak.

Application for C.I.T.E.S. Permits

STIDC organised a briefing on C.I.T.E.S. (Convention on International Trade of Endangered Species of Wild Fauna and Flora) and the Ramin Trade of Sarawak in Sibu on 13 August 2004.

The main purpose of this briefing was for the representative of the Sarawak Forestry Corporation Sdn Bhd (Sarawak Forestry) to inform the Ramin traders from Sibu that all applications for C.I.T.E.S. permits for Ramin are to be submitted to the nearest office of Security and Asset Protection Unit (SAPU) of Sarawak Forestry with effect from 16 August 2004. Upon receipt of the duly completed application, Sarawak Forestry will take a maximum of 2 working days to issue the C.I.T.E.S. Certificate.

Application Form for C.I.T.E.S. Permits (in PDF formal) is available Sarawak Forestry's website, http://www.sarawakforestry.com/, under "Online Services".

Encik Sani Bakar, the General Manager of SAPU, highlighted on the international issues related to the trading of Ramin and urged Ramin exporters to give their full cooperation in this matter.

Should Members need any further assistance on this matter, please contact the nearest SAPU office.

Department of Occupational Health and Safety’s Training Manual on Health and Safety in the Logging Operations in Malaysia

The Department of Occupational Health and Safety (DOSH) has come out with a training manual on Health and Safety in the Logging Operations in Malaysia. This manual will be used as training material for their inspectors to enforce the Occupational Safety Act (1994).

This training manual contains the nine following sections:

Section 1 - Legal Requirements OSHA Act 1994
Section 2 - General Requirements
Section 3 - Chainsaw Maintenance
Section 4 - Tree Felling
Section 5 - Heli-Logging
Section 6 - Log Landing
Section 7 - Machine Operations
Section 8 - Transportation of Logs
Section 9 - Cable Logging

The DOSH’s training manual is now available from the STA Secretariat at RM10 for photocopying and postage charges. Interested members can obtain a copy of the manual can contact the Secretariat at Tel: 082-332 222. Please make payment direct to:

Sarawak Timber Association
Standard Chartered Bank (Kuching Branch)
A/C No: 420-118126634
(Kindly fax us a copy of your bank-in slip for accounting purpose)

Fulfilment of Log Reservation Quota

STA had received a reminder from the Sarawak Timber Industry Development Corporation (STIDC) on 14th April 2004 with regards to the fulfilment of log reservation quota as prerequisite for approval of export licence for logs.

Effective 1st April 2004, STIDC will process and issue permit for export (AP) of logs within 1 (one) working day for application received before 3.00 pm on the same day.

To avoid delays in the issuance of the export permit, Members are reminded to make sure that logs for export are obtained from suppliers who are complied to the Log Reservation Quota. Those who failed to comply with the Reservation Quota Requirement are required to submit application to STIDC for approval 48 hours before submission of application for export permit (AP).

Suppliers are to be verified on the said compliance prior to shipment. For the current compliance status of suppliers, Members can contact:
1. STIDC
2. Sarawak Forestry Corporation (Sustainable Forest & Compliance Unit)
3. Harwood Timber Sdn Bhd (Log Endorsement Unit)

The following is the circular on Fulfilment of Log Reservation Quota as Prerequisite for Approval of AP to Export Logs dated 10th October 1995:

Please Click Here for Circular

Export of Requirements for Goods Packed in Wooden Packaging Material

Background

The International Standards for Phytosanitary Measures (ISPM) are prepared by the Secretariat of the International Plant Protection Convention (IPPC) as part of the United Nations Food & Agriculture Organisation's (FAO) global programme of policy and technical assistance in plant quarantine. This programme makes available to FAO Members and other interested parties these standards, guidelines and recommendations to achieve international harmonisation of phytosanitary measures, with the aim to facilitate trade and avoid the use of unjustifiable measures as barriers to trade.

As of March 2002, the 113 member countries, which are contracting parties to IPPC, approved the International Standards For Phytosanitary measures-Guidelines for Regulating Wood Packaging Material in International Trade (ISPM #15)

This new phytosanitary regulation applies to all wood packaging material that has not undergone processing or treatment to remove or kill pests that would otherwise contribute to the migration of live-tree infesting insects between countries.

This include all unprocessed raw wood used in pallets, dunnage, crating, packing blocks, drums, load boards, pallet collars and skids.

Materials such as plywood, particle board, processed veneer, veneer peeler cores, sawdust, wood wool, shavings, or raw wood cut into thin pieces 6 mm (0.24 in) or less in thickness were determined sufficiently processed to have eliminated the Phytosanitary risks, and are not covered under the new regulations.

Countries enforcing ISPM # 15

 

In addition to the above list, countries like India, Japan, South Korea and Australia have indicated they will start implementing sometime during the middle of this year.

Approved Measures

There are exactly two treatment measures that been approved by IPPC, Heat Treatment and Methyl Bromide Fumigation. In addition, the Wood Packaging Materials (WPM) that has been treated should display a specified mark universally recognized to facilitate verification during inspection.

Heat Treatment (HT)

Wood packaging materials should be treated in accordance with specific time-temperature schedules to achieve a minimum core temperature of 56 degrees C (123 degrees F) for a minimum of 30 minutes. Kiln Drying (KD) and Chemical Pressure Impregnation (CPI) may be considered HT if they meet the HT criteria.

Methyl Bromide (MB) Fumigation
 

Enforcing/Implementing Agency

In Sarawak, the implementing agency in Sarawak is the Plant Quarantine Division, Department of Agriculture Sarawak.

As currently there is only 1 licensed fumigator and no registered heat treatment providers in the State, the immediate task for the Department of Agriculture Sarawak is to set up the system for verification and accrediting both Heat Treatment and fumigation providers in the State as soon as possible. This is to ensure no exports will be rejected by importing countries when the ruling for treated wood packaging material is fully enforced.

The following are the requirements that need to be fulfilled before heat treatment providers can be certified:

(i) All kiln dryers must have heat sensors (prob), minimum of 6 units per chamber. The chamber has to be fitted with a temperature recorder and the recording should be continuous and preferably printed on a graph that shows temperature over time.
(ii) Must have expertise in handling KD's and Heat treatment procedures.
(iii) The instrumentation must be regularly calibrated and checked by accreditation bodies or lab.
(iv) Must have storage facilities. Residual woods must be separated and kept separately. The treated pallets/dunnage/crates must be sheltered from rain and sun and placed in a separate designated area within the factory.
(v) Sanitation - the factory areas used for Heat Treatment must be kept clean and sanitised regularly.
(vi) Markings - only be done after the pallet has undergone heat treatment. It must be legible, permanent and not transferable. Markings must be placed in a visible location. Avoid using red or brown colour for markings. Encouraged to use black or blue colour. (vii) Training - all Heat Treatment providers must undergo a training session

Those who are interested to be Heat Treatment Providers, applications forms are available from the STA Secretariat or they can contact DoA Sarawak at:

Mr. Micheal Ranges Nyangob
Agriculture Department
Plant Quarantine Division
Agric. Annex Complex, Jalan Kumpang
Off Jalan Ong Tiang Swee
93200 Kuching, Sarawak
Tel: 082-414711
Fax: 082-413163

 

Launching of the European Union HelpDesk Database

The European Union (EU) has launched an online helpdesk database on 2nd February 2004. The database known as the "Expanding Exports Helpdesk: Advice for Developing Countries Exporting to the EU", is to assist developing countries in exporting to the EU. This database will be developed in several stages.

The first phase that was recently launched consists of a database on the internet which includes the following elements:

• Import tariffs - This section will display in a user-friendly format all applicable tariff rates on EU imports, including preferential regimes.
  
   

• Import trade statistics - This section will provide, for each product, import figures for the EU as well as for Member States with a view to providing indications on the size of the potential market for developing countries' exporters.
  
   

• Rules of origin applicable to imports benefiting from GSP and imports originating in the ACP countries.
  
   

• Basic customs documentation enabling developing country exporters to benefit from preferential duty rates.
  
   

• Links - The helpdesk contains a section with links to relevant organisations such as Members States' customs administration, importers' associations and organisations involved in trade and/or development policy.
  
   

• Online forum available for exchange of information between developing countries' exporters and EU importers.
   

During the first phase, the helpdesk database will be available worldwide without restrictions.

The second phase of the project will be progressively developed during the course of 2004 and will include information such as import documentation and legislation affecting access to the EU markets, as well as internal taxation applied in the Member States. Access to certain parts of the database, developed under the second phase, will be restricted to users in developing countries. The Commission will provide a query response service regarding information included in the database.

The database can be surfed at http://export-help.cec.eu.int/

Effective Date for the purpose of Article 8(b) of the Articles of Association of Sarawak Timber Association

This is to inform you that the Effective Date for the purpose of Article 8(b) of the Articles of Association of Sarawak Timber Association has been fixed to fall on 8 March 2004 (at 4.45pm).

Therefore, all members paying their subscription fees on 8 March 2004 after 4.45pm onwards will be disqualified from participating in the election on 31 March 2004.

Nomination papers for the election of Council Members will be available from the Secretariat on request from noon of 9 March 2004 onwards and the Secretariat will post you your Nomination Form by PosLaju.

Please be advised that all duly completed nomination papers (in accordance to Article 8(b)(iii) of the Articles of Association of Sarawak Timber Association) must be submitted to the Election Committee not less than one (1) week (on or before 4.45pm of 24 March 2004) before the election date which is fixed on 31 March 2004 (in accordance to Article 8(b)(ii) of the Articles of Association of Sarawak Timber Association).

Members are reminded of the following points:-

1) Members are only allowed to nominate candidate(s) for their own category, cross nomination to other categories will be disqualified;

2) The proposer, seconder and the candidate(s) must all originate from the same category in order for the candidate's nomination to be valid; and

3) Members of a category will only be voting to elect the Council Members allocated to their own category and they will not be permitted to vote to elect Council Members of other categories.

Please ensure that the proposer, seconder and candidate(s) are qualified members, in that they have paid their subscription fees on or before the Effective Date failing which it will lead to disqualification of the candidate(s) under Article 7(f) of the Articles of Association of Sarawak Timber Association.

Sarawak Fire Danger Rating System (SFDRS)

The Monthly Fire Weather Record Form is now available for download. Click Here

Holidays under the Labour (Public Holidays) Rules

STA received a letter, Ref.: 49-JB-AC-38-A, dated 31 July 2003 from Manpower Department Sarawak with regards to holidays under the Labour (Public Holidays) Rules.

The holidays under the Labour Rules are statutorily prescribed for workers; therefore it is incumbent upon every employer to strictly observe it. Compelling a worker to work on any of these days constitutes an offence and the employer, if convicted, may be fined a maximum of RM1, 000.

In relation to this, workers who are employed on daily rate must be paid their ordinary rate of pay eventhough they are not working on any of these holidays. If they work (at the employer's request and consented to by them) on the days, they shall be paid not less than double their ordinary rate pay per day.

The Ministry of Human Resources may from time to time declares any other days as holiday under Section 104 of the Labour Ordinance (Sarawak Cap. 76).

Please find below a copy of the Labour (Public Holidays) Rules.

THE LABOUR (PUBLIC HOLIDAYS) RULES
(Made under Section 1014 and 122)

1. These Rules may be cited as the Labour (Public Holidays) Rules. Citation

2. The following days are prescribed as holidays for workers: Holidays

(a) First day of January;

(b) Chinese New Year's Day and the following day;*

(c) Good Friday;

(d) Easter Monday;

(e) Hari Raya Puasa and the following day;*

(f) Hari Raya Haji

(g) Dayak Festival Day and the following day;#

(h) His Majesty The Yang di-Pertuan Agong's birthday;

(i) The Prophet Mohammad's Birthday;

(j) Malaysia Day;

(k) His Excellency The Governor's birthday;

(l) Christmas Day;

(m) Worker's Celebration day;

Provided that:

i) by agreement between the employer and the workman, any other day or days may be substituted for anyone or more of the days prescribed; and

ii) if any of the holidays prescribed falls on a Sunday or other rest days agreed under the provisions of paragraph (b) of Section 105 of the Labour Ordinance, the day following immediately thereafter shall be a paid holiday in substitution therefore.

* Amended vide P.U. (A) 482/2000 - The 2nd day of Chinese New Year and the 2nd day of Hari Raya Puasa respectively was prescribed as holidays for workers w.e.f. 26th December 2000.

# Amended vide P.U. (A) 146/2001 - The 2nd day of Dayak Festival Day was prescribed as a holiday for workers w.e.f. 21st May 2001.

Royalty Incentive Scheme

STA received a letter of STIDC, Ref. No. STIDC.10.PS.SH(Ins).PKKS (6) dated 14th July 2003, reminding all STA members to submit the claims for December 2003 on or before 10th January 2004. The claims shall not be entertained if any Members fail to do so.

This is in light of the fact that the present Incentive Scheme will be abolished by January 2004.

Special Consideration for Employers yet to register under HRDF

STA received a letter dated 21st May 2003, ref: (15)PSMB/27/22 Kulit 1, from Pembangunan Sumber Manusia Berhad on 26th May 2003.

Some Employers' Associations have previously requested that a grace period be granted to liable employers who have not registered with PSMB to encourage them to register under the Human Resource Development Fund (HRDF).

The Ministry of Human Resources, in response to that request, had agreed to enforce the Human Resources Development Berhad Act 2001 (Act 612), only which is effective from 16th May 2001. The Ministry had also agreed to a grace period of 6 months; 7th May - 6th November 2003, for liable employers to register with PSMB. This was announced by the Hon. Minister of Human Resources on 7th May 2003. During this grace period, employers who register and contribute the Human Resources Development levy will:

a) Pay the Human Resources Development levy arrears from the effective date of the new Act i.e., The Human Resource Development Berhad Act, 2001 on 16th May 2001 or from the date they are liable, whichever is applicable; and

b) Be exempted from payment of interest on arrears of levy.

Please refer to Attachment A for examples of how the special considerations can affect employers during the grace period. Attachment B shows the category of employers who are covered by the Act and liable to register under the HRDF.

Once the grace period ends, appropriate legal action would be taken under Subsection 13 (1) and Subsection 13 (2) of the Human Resource Development Act 2001 against any liable employer who have not registered with PSMB. Any employer who contravenes Subsection 13 (1) of the Act commits an offence and shall on conviction be liable to a fine not exceeding RM10,000 or to imprisonment for a term not exceeding one year or to both.

For more information, please contact Puan Jalidah bt Md. Yusof of PSMB at tel: 03-20984807 for Employers' Registration procedures.

Briefing on Requirements on Import of Timber from Indonesia

A briefing on the Customs' requirements on import of timber from Indonesia was held on Monday, 26th May 2003 at STIDC Headquarters, Kuching. The Minister of Primary Industries, YB Dato' Seri Dr. Lim Keng Yaik, had made an announcement on 13th May 2003 pertaining to the ban on the importation of squared logs ie. timber measuring more than 60 square inches in size (Large Scantlings and Squares (LSS)), from Indonesia effective from 1 June 2003.

The briefing was conducted by Puan Dayang Nena Abang Bruce, the Assistant General Manager (Trade Development). Encik Abdul Rahman Haji Ahmad, the Deputy Director of Customs of Sarawak was present in the briefing. The briefing was attended by 60 participants who are involved with the importation of timber from Indonesia.

The purpose of the briefing was to inform the importers of timber from Indonesia on the changes in customs requirements. As of 7th June 2003, the following two documents are required to be submitted to the Customs Department Sarawak during the declaration of timber from Indonesia into Sarawak through Tebedu:

i. Pemberitahuan Eksport Barang (PEB)
ii. Surat Keterangan Sahnya Hasil Hutan (SKSHH)

Both documents should be provided by the supplier. Consignments without such documents will be turned back at the checkpoint. Also, STIDC has revised its procedures on entry of timber from Indonesia at Tebedu where consignment will be issued with Application Form for Physical Species Inspection (refer to the below for details of the form) with effect from 4th June 2003. This form is to be distributed to the lorry drivers for them to fill in the particular and then to return the completed form to STIDC for endorsement (refer the below Flowchart for details). Endorsement will only be given to non-ramin or ramin with CITES certificates.

Briefing on Sufferance Wharf Enforcement by the Kuching Port Authority

On 28 March 2003, the Kuching Port Authority (KPA) held a briefing cum dialogue with STA members in Kuching on the sufferance wharf enforcement by KPA. KPA had enforced the Kuching Port Authority (Place for discharge and loading of Cargo) Order 2002 since 5 March 2003.

Mdm Liu Moi Fong, the KPA General Manager, presented the briefing. There were about 10 KPA officers and 30 STA members attending the briefing at the KPA Theatrette Hall, 1st Floor of Port Operating Building (POB).

The purpose of this briefing was to resolve any misunderstanding/concerns pertaining to the sufferance wharf enforcement as well as to provide an opportunity for further clarification.

The Cargo Order applies to

• All cargo which may be discharged from any vessel or loaded into any vessel in the Port of Kuching (Port Limit); and
   

• Being cargo imported on the vessel or to be exported on that vessel into or from the State of Sarawak respectively.

The briefing highlighted (1) Definition for "Cargo"; (2) Documents required for application of sufferance wharf facility permit as well as the process flow and (3) General guidelines governing the approval for sufferance wharf as follows:

1. KPA provided the following definitions for "Cargo"

1.1 Import Cargo
1.1.1. Any cargo which is imported through the Port of Kuching (Port Limit) from any place outside the State of Sarawak
1.1.2. Any cargo in respect of the original packaging or volume of content or the name of the consignee remains unchanged, at the time of entering the Port of Kuching, e.g., loose sawn timber landed in Sematan remain loose when it enters Port of Kuching

1.2 Export Cargo
1.2.1 Any cargo which is exported through the Port of Kuching (Port Limit) from any place outside the State of Sarawak, e.g., bundled sawn timber exported through Tanjung Manis
1.2.2 Any cargo in respect of the original packaging or volume of content or the name of the consignee remains unchanged, at the time of leaving the Port of Kuching, e.g., bundled-sawn timber at the time of leaving Kuching remain the same bundle when exported at Tanjung Manis

2. Documents required for application of sufferance wharf facility permit as well as the process flow.

Group A
For logs, timber products, fish, clinkers, gypsum, coal, stones, scrap iron, dangerous cargo of Class 1 and other cargo from Outside Sarawak or vice versa as determined by KPA from time to time.

Documents Used for Group A
1. Sufferance Wharf Application Form (6 copies)
2. Manifest / Packing List / Loading List / Shipper Invoice (2 copies for KPA)
3. Customs & Excise Form : Lampiran A (1 copy for KPA)
4. Approved Customs Declaration (1 copy for KPA)
5. For logs and sawn timber a Removal Pass for Imported timber from STIDC (2 copies for KPA)

Process Flow for Group A

• Applicant goes to 6th floor POB Pending Point with documents [1-5] for approval by Accountant / SFO / FO-Costing

• Applicant goes to Operations Div to obtain the SCN with documents [1-5]

• Operations Officer to check the authenticity and completeness of documents

• During the SCN creation, Applicant's account is checked for credit availability. (If PASS, SCN is created and Operations Div subsequently signs documents [1&3] otherwise Applicant to top -up his account.)

Group C
For logs, timber products and other cargoes Within Sarawak

Documents Used for Group C
1. Sufferance Wharf Application Form (5 copies)
2. Manifest / Packing List / Loading List / Shipper Invoice (2 copies for KPA)
3. For logs a Removal Pass from Forest Department Sarawak (2 copies for KPA)

Process Flow for Group C

• Applicant goes to 6th floor POB with documents [1-3] for approval by Accountant / SFO / FO-Costing

• Accountant / SFO / FO-Costing to check the authenticity and completeness of documents

• If PASS, Accountant / SFO / FO-Costing subsequently signs document [1] otherwise application might be reclassified to be cargoes under Group A or B.

Photocopies of the above stated documents are permitted. The "Application for Use of a Sufferance Wharf" form will be submitted by the vessel owners.

3. General guidelines governing the approval for sufferance wharf are as follows:

3.1 Sufferance wharf facility will be approved for the handling of logs, timber products, clinkers, gypsum, coal, stones, scrap iron and dangerous cargo of Class 1. They will be charged for port dues of RM2.00 per tonne or part thereof.

3.2 All other cargo has to be handled at the wharves of KPA. On the ground of physical constraint or other technical reason shipping agents can apply for special permission to load or unload certain shipment within port limit or outside port limit at ex-wharf rate of RM 6.25 per tonne or part thereof subject to the approval of Royal Customs & Excise Department.

3.3 Cargo from Kuching via other stations of Sarawak to outside Sarawak or vice versa based on approved customs declaration and cargo manifest should be loaded or unloaded at the wharves of KPA. On the ground of physical constraint or other technical reason shipping agents can apply for special permission to load or unload certain shipment within port limit or outside port limit at ex-wharf rate of RM 6.25 per tonne or part thereof subject to the approval of Royal Customs & Excise Department.

A further extension of grace period till 15 April 2003 has been granted to timber cargo and the sufferance wharf charges (RM 2.00 per tonne) will not be levied. Enforcement of documentation will be carried out during this grace period.

Joint Meeting between APKINDO, MPMA, JLIA & JPMA
 

The Joint meeting between APKINDO, MPMA, JLIA & JPMA was held on 18th March 2003 in Jakarta. The meeting was attended by 42 delegates from AKINDO, 10 from MPMA, 20 from JLIA and 7 from JPMA. A copy of the adopted Communiqué is as follow:

Communiqué
 

The Indonesian Wood Panel Association (APKINDO), the Malaysian Panel Products Manufacturers’ Association (MPMA), Japan Lumber Importers’ Association (JLIA) and Japan Plywood Manufacturers’ Association (JPMA) had discussions today in Jakarta, and the following points are adopted:

1. Japan projected 1.12 million housing starts with a demand of 7.4 million m3 of plywood for 2003. In view of present log supply situation and the JAS requirement for several categories of plywood products, the total estimated supply position for 2003 would be about 7 million m3 as follows:
 

2. In view of Indonesian efforts to combat and effectively curb illegal logging and illegal trade of logs, the meeting predicts a reduction in supply of raw materials to the timber industry.

3. The meeting continues to support APKINDO’s initiatives and the Indonesian government in its policy to curb illegal logging and illegal export of logs, by proposing to the respective governments for enforcement of the Memorandum of Understanding agreed upon.

4. The meeting requested JLIA and JPMA to appeal to JPIC to expedite the JAS renewal and application process by sending more inspection teams to the Indonesian and Malaysian mills on an urgent basis.

5. The incremental cost of production in Indonesia and Malaysia for FC2 to F¶¶¶¶ for plywood products in conformance with the new JAS requirement is about 15%. The market price should reflect this accordingly.

6. The meeting agreed to have regular dialogues in order to enhance cooperation among the participating Associations.

Date: Tuesday, March 18, 2003 in Jakarta

Signed by:

Martias                                        Koichi Mataga
Chairman of Apkindo                        President of JPMA

Stephen Lau                                 Junichi Taniyama Hon.
Secretary of MPMA                         Chairman of JLIA

STA Exhibition Centre

The STA Exhibition Centre, with an area of 4,918 sq. feet, is located at Level 4 of Wisma STA.

STA is in the process of setting up a "state-of-the-art" Exhibition Centre. This involves Multimedia presentation comprising of four 42" plasma screens and for interactive video kiosks, and two Information Managements System terminals to provide up-to-date information on the forestry and timber industry of Sarawak.

The Centre will also exhibit some of the timber products produced by members of STA. Information booths, located on strategic spots, will provide information on the production process of different timber products.

All Members are encouraged to have their timber products exhibited and their corporate video shown at the Centre. For further information, please contact:

Ms. Nicki Mok (E-mail: nicki@sta.org.my)