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  • “VRIKSH” TIMBER LEGALITY ASSESSMENT

    AND VERIFICATION PROGRAM

    London, UK 23rd October 2013

    EXPORT PROMOTION COUNCIL FOR HANDICRAFTS “EPCH HOUSE” Pocket 6 & 7,

    Sector-C, L.S.C. Vasant Kunj,

    New Delhi-110070 Tel: 91-11-26135256 Fax:91-11-26135518/19

    E-MAIL: epch@vsnl.com website: www.epch.in, www.texmin.nic.in

    http://www.epch.in/ http://www.texmin.nic.in/

  • Export Promotion Council for Handicrafts (EPCH)  Set up in 1986 under section 25 of companies act 1956  To develop and promote the exports of handicrafts from India  6903 member exporters as on 31st march, 2013

    Exports of handicrafts  Handicrafts exports us$ 3304.90 million 2012-13  Wooden handicrafts us$ 505.01 million 2012-13

    EMPLOYMENT IN HANDICRAFTS SECTOR

     7 million artisans

    Destinations 2011-12 (US$ million)

    2012-13 (US$ million)

    European Union 185.75 277.17

    U.S.A 105.55 164.03

    Rest of the World 34.10 63.81

    Total 325.40 505.01

    Exports of Woodwares

    Indian Handicrafts - Highlights

     Wooden handicrafts provides livelihood to around 1.1 million artisans

  •  The major importers of Indian wooden handicrafts are Australia, Canada, France, Germany, Italy, Japan, The Netherlands, UAE, Switzerland, Saudi Arabia, USA and UK

     The demand for wood products is increasing in both domestic and international markets

     Major places of India producing wooden handicrafts:

    Jaipur, Jodhpur, Saharanpur, Nagina, Rajkot, Barmar, Hoshiarpur, Srinagar, Amritsar, Jagdalpur, Bangalore, Ahmedabad, Kerala, Berhampur, Chennapatna and Mysore

    Wooden Industry in India

     Types of Wood in India

    Sheesham, Acacia, Ebony, Neem, Salwood, Khair, Mango,

    Poplar, Kikar, Chirpine, Sandal wood, Rosewood, Sagwan etc

  • Sl. No. State/District/Cluster Crafts

    1 Jammu & Kashmir/

    Srinagar

    Walnut & Deodar Wood Craft

    2 Uttar

    Pradesh/Saharanpur

    Wood Carving Furniture, Screens

    3 Uttar Pradesh/Nagina Wood Carving Boxes

    4 Rajasthan/Jodhpur Wooden Handicrafts, Furniture

    Antique Finish

    5 West Bengal/Calcutta Wooden Furniture & Giftwares

    6 Andhra

    Pradesh/Kondapalli

    Wood (Turning And Lacquer Ware)

    7 Karnataka/Chennapatna Wood Inlay Articles

    8 Tamil Nadu/Chennai Wooden Handicrafts Antique Finish

    9 Kerala/Quilandy Coconut Wood/Coconut Shell Gift

    Articles

    10 Kerala/Trivandram Rose Wood Carving Gift Wares

    11 North East Region Cane & Bamboo- Furniture and other

    Home Utility Products

    Wooden Handicrafts Producer

    Hubs/Exporter Hub

  •  European Union Forest Law Enforcement,

    Governance And Trade (FLEGT) Action Plan was

    mooted in 2003 to stop illegal logging which is now

    formalized as EUTR

     Similar Action Plans introduced worldwide -

    o Lacey Act of USA

    o Australian Legality Act

    o Saint Petersburg Declaration for Russia

    o Belgium Legality Act

    o Similar requirements as put in place by

    corporate agencies viz. Walmart, Target etc.

    Action Plans Introduced Worldwide

  •  Lack of an acceptable standard system puts a question mark in the international market on the wood origin, authenticity of documentation and validity and veracity of timber legality documents presently in acceptance.

     Impact on wood handicraft industry , especially the SMEs

     Small artisans may lose their livelihood if clarity not brought about regarding wood legality issues which are beyond their capabilities.

     Need for a timber legality assessment scheme to address these concerns of industry, artisans, buyers and international market

     Need for quick action before India’s competitive advantage is lost out

    Impact of these Action Plans

  •  Discussed the issue with industry representatives, subject matter experts and other stakeholders in detail

     Industry put forth problems faced by exporters – sudden drop in export orders, hesitance in fulfilling export commitments, lack of clarity regarding compliance

     Industry heads asked EPCH for guidance and help – necessity to meet new timber legality requirements to meet customer obligations

     EPCH decided to initiate VRIKSH to promote the responsible and legal use of wood in the handicrafts and home décor industry, keeping in mind the social and environmental obligations as well

     To provide a viable solution to help the handicrafts exporters and maintain their source of livelihood, through standard development and verification programme to effectively deal with international timber regulation requirements

    VRIKSH – A Tree of Life –

    A Livelihood Tree

  • Complexity of Requirements

    Multiple Languages

    Multiple Authorities

    Lead to the

    Necessity of

    VRIKSH To bring back

    competitive

    advantage

    Demand side challenges

  • Due Diligence/Due Care

  • Establishment of CoC

    Due Diligence

    Ensures

    Legal right to harvest and trade

    Compliance with the legislation

    Compliance with legislation

    Related to Taxes & Royalties

    Compliance with requirements of

    trade and export procedures

    Scope of VRIKSH

  • Beneficiaries

    Forest / Harvest site Manager

    Harvester/ logger

    Consolidator/

    Concentration yard

    Primary manufacturer Timber Supply Chain

    Secondary manufacturer

    Broker/ Importer /Exporter

    Retailer

    Scope of VRIKSH

  •  Governing Body/ Secretariat

     Establishment of Clear and Documented Standard

    Operating Procedures.

     Registry of ‘Vriksh” verified companies.

     Maintenance of Data base

     Standards updation and revision protocols

     Complaints/ disputes handling and Redressal mechanism

     Promotion of scheme and achieving Global acceptance in

    markets and international regulatory bodies

    Structure and Governance

  • Standard Development Process

    Consult , Revise , Finalize

    Field Test to check that the standards actually work in practice

    Standard setting group reviewed input and developed the revised draft

    Consulted with all the interested parties to get their input on the Draft Standard. Through meetings .Public Postings , stakeholder consultation

    Developing first Draft Standard

    Identify the elements on which the standard will be based using international criteria and indicators

    Defined Rules and Procedures

    Standard setting group Established

  • Part 1: Quality Management Systems

    Part 2: Legality Compliance

    Part 3: Raw Material Supply And Production

    PART 4: Sale of “VRIKSH” Legally Verified Wood

    Part 5: Risk Assessment And Mitigation Program

    Components of the standard

  •  Certification Process by independent Third Party CB’s

    o Application and Proposal

    o Pre-assessment /scoping

    o Gap identification

    o Main assessment

    o Reporting

    o Certification Decision

    o Surveillance assessments

     Based on Developed and approved Standards

    Certification

  • Specifically designed to Indian Handicraft Industry

    Risk Assessment and Verification Program

    Supply Chain Verification

    Traceability through Batch Accounting

    Covering all aspects of legality

    • Government Forests

    • Private lands

    • Farm Forestry

    • Imported Timber

    Legality Verification of all sources

    Complaint Mechanism

    Mutual Recognition of other schemes

    World wide presence through web based registry

    Unique Features of VRIKSH

  • Benefits

    Benefits

    Well Documented Process

    Compliance with EUTR/ Lacey Act

    One-Stop Solution for all Legal Verification

  • Benefits

    Benefits

    Reduction in Risk

    Worldwide Market for verified wood

    International Recognition

    World wide presence through web based registry

  • (To be Published in the Gazette of India Extraordinary Part-II, Section - 3, Sub-Section (ii))

    Government of India

    Ministry of Commerce & Industry

    Department of Commerce

    Udyog Bhawan

    Notification No 13 (RE – 2013)/2009-2014

    New Delhi, Dated : 14 May, 2013

    Subject: Nomination of Export Promotion Council for Handicrafts (EPCH) as nodal agency for certificate on due diligence adopted by the

    exporters in procuring wood from legal sources for manufacture of Handicraft articles.

    S.O.(E) In exercise of the powers conferred by Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No.22 of 1992) read with

    Para 2.1 of the Foreign Trade Policy, 2009-2014 (as amended from time to time

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