PEFC UK Limited

Jupiter House, High Street, Tattenhall, Cheshire, CH3 9PX United Kingdom
Telephone +44 (0) 1829 770438
Email info@pefc.co.uk
Web www.pefc.co.uk
Promoting Sustainable Forest Management

29th November 2007

GUIDANCE FOR THE IMPLEMENTATION OF PEFC CHAIN OF CUSTODY FOR

SPECIFIED PROJECTS

Informative document

1 INTRODUCTION

This Guidance has been developed by PEFC UK Ltd. in co-operation with the PEFC
Council and the PEFC Council Chain of Custody Working Group. It was approved by
PEFC UK Ltd. on 29th November 2007.

The PEFC Chain of Custody Standard (Annex 4 of the PEFC Council Technical
Document) provides a mechanism to enable businesses to make claims regarding
the content of timber from sustainable managed forests or of recycled woody material
in a particular product or structure.

1.1 PURPOSE

This document provides guidance on the implementation of the requirements of

Annex 4 of the PEFC Council Technical Document (Chain of Custody of Forest
Based Products – Requirements) covering any specifically defined project where
PEFC certified timber and timber products or recycled timber material is used.

The implementation and certification of the PEFC chain of custody at the project level
is specific in the terms that it is only linked to and valid for a time and site specific
project rather than on-going and continuous production or trade of PEFC certified
products.

The information given here should be read in conjunction with Annex 4 which is the
definitive and controlling statement.

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Guidance Document to PEFC Annex 4
1.2 REFERENCES
The information given here is taken from the following PEFC Council Annexes to
the PEFC Council Technical Document (as adopted and amended by the PEFC
Council, as published: www.pefc.org):

Annex 1: Terms and Definitions

Annex 4: Chain of Custody of Forest Based Products - Requirements

Appendix 1: PEFC Council specification for the origin for the purposes of
PEFC label and declarations

Appendix 6 Specification of the origin for the purposes of PEFC label and
declarations covering recycled raw material

Appendix 7: Implementation of requirements for the avoidance of the

procurement of raw material from controversial sources

The following appendices to Annex 4 may also assist in the application of the Guidance

Appendix 2: Implementation of Chain of Custody within ISO 9001:2000

Appendix 3: Implementation of Chain of Custody within ISO 14001:1996

Annex 5: PEFC Logo Use Rules

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Guidance Document to PEFC Annex 4
1.3 TERMS AND DEFINITIONS

The relevant definitions as given in Annex 4 apply, together with the following
definitions specific to this Guidance:

Controlling Entity

A Controlling Entity is an organisation which has overall control and management of

a specifically defined project.

Project

A project is a clearly defined tangible product, or group of related products forming a

functional unit, manufactured and/or assembled at one particular site (exceptionally
at an integrated series of sites, e.g. a ship built at one site and fitted out at another).

Note 1: The term “project” used in this guidance is equivalent to the term “production batch”
used in Annex 4.

Note 2: Examples of a project include: a ship, a new building such as stadium or office
building, the refurbishment of such a ship or building, etc.

Project Member

A Project Member is an organisation involved in the procuring and installing of raw

material or products for a specifically defined project. The term does not include
organisations involved in the manufacturing or replacing of products at a location
other than the project site or sites.

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Guidance Document to PEFC Annex 4
2 BASIS FOR CLAIMING PROJECT CHAIN OF CUSTODY

Any one project will entail a range of different suppliers providing differing contents of
certified materials. In such circumstances physical separation becomes meaningless
and so a single Project Chain of Custody is derived by calculating the percentage of
certified material incorporated into the project.

3 PERCENTAGE BASED METHOD

3.1 Application of the percentage based method

Project Chain of Custody is based on the total input of certified raw material to the
whole project enabling a single claim to be made for the proportion of certified raw
material involved.

3.2 Project

Annex 4 requires that chain of custody requirements shall be implemented for a

specific production batch. In the case of Project Chain of Custody the specific project
is considered to be the production batch to which the chain of custody process shall
be applied. The chain of custody process entails the identification and quantification
of (a) certified, (b) neutral and (c) other raw material utilised, and then the calculation
of the certification percentage. It is this percentage value that can then be claimed.

In this context the project must be limited to:

a) the product, or part or group of products, covered by the chain of custody,
b) the single site at which the project was manufactured or assembled,
c) the time period over which the project was manufactured or assembled.

The project must correspond to the product, construction or part thereof for which a
project chain of custody is to be claimed. Examples are given below:

The coverage of the project Chain of custody claims

The whole building, e.g. the Olympic X % of the woody raw material used in the
stadium, including supporting material Olympic stadium construction, including
supporting material, was PEFC certified.

Roof element of the housing project “abc” X % of the woody raw material used in the
roof element of housing project “abc” was
PEFC certified.

Reconstruction of the ship “xyz” X % of the woody raw material used in the
reconstruction of ship “xyz” was PEFC
certified.

The project can cover several products (e.g. several buildings), however in such a
case all of them shall together form a single functional unit.

Unlike the position for batch certification, where there is a time limit of three months,
the time period for project certification is not limited and corresponds with the
duration of the manufacturing and assembling of the project, (provided that a simple
percentage calculation method is applied, see below).

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3.3 Identification of origin

The Controlling Entity is responsible for ensuring that all raw materials procured for
the project, either directly by that entity or by other Project Members, are identified
and verified as being (a) certified, (b) neutral or (c) other as defined in Annex 4,
chapters 3.2.1 and 3.2.2 and with reference to Appendix 1 and Appendix 6 of Annex
4.

For each delivery the identification must cover supplier, date of delivery, volume (or
weight) and certified status, including percentage of certified raw material (Appendix
1 and Appendix 6 apply).

For each supplier of PEFC certified raw material the identification must include
verification of the supplier‟s chain of custody or forest management certification
through provision of copies of PEFC recognised certificates based on the definitions
in Appendix 1 and Appendix 6.

Project Members are responsible for providing the Controlling Entity with verifiable
information on the receipt of all certified raw material as a part of this overall
identification of inputs.

3.4 Calculation of certified percentage

The certified percentage for the project is calculated as a simple percentage in

compliance with Annex 4, Chapter 3.3.5 (which states that the claim on the content of
certified raw material must be based only on raw material used in that specific
project).

It is clearly necessary that a single common unit of measurement is used in

calculating the certified percentage. Chapter 3.3.2 of Annex 4 requires “that the
organisation shall calculate the certification percentage based on a single
measurement unit used for all raw material covered by the calculation”. Where a
complex variety of products have been incorporated in the project the determination
of such a single measurement unit can be difficult. If the Controlling Entity is able to
demonstrate that a common volume or weight unit cannot be found, either based on
an official or on an internally derived conversion ratio, then the calculation can be
based on values in a single currency.

NOTE: The certification body reviews the justification for a decision by the Controlling Entity
to use monetary values and requires evidence to demonstrate that a common unit in volume
or other appropriate terms could not be found.

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Guidance Document to PEFC Annex 4
3.4.1 Transfer of the calculated percentage to output

The certification percentage is transferred to the output product (“the defined project”)
using the average percentage method in compliance with Annex 4 chapter 3.5.2.
This means that the calculated certification percentage refers to the whole defined
project only and cannot be distributed its constituent parts

3.5 Sale of products (including communication of certified status)

The calculation of the simple percentage of certified material by the Controlling Entity
can only be done after the completion of the project when all raw materials have
been procured, delivered and identified as (a) certified, (b) neutral or (c) other raw
material.

However, the Controlling Entity can obtain a Chain of Custody Certificate to indicate
the expected content of certified raw material before the completion of the project if
he/she is able to demonstrate the anticipated content of certified raw material to be
used based on commitments entered into during the planning stage regarding
specifications and contractual relationships with suppliers. In this event the
compliance between the planning stage claims and the final calculation based on
delivered raw material must be verified by the Controlling Entity as a part of the
internal audit and then subsequently by a certification body during the third party
audit.

The Controlling Entity can only use the PEFC Logo (based on a PEFC Logo Usage
Licence issued by the PEFC Council or the relevant PEFC National Governing Body)
once it has obtained a Chain of Custody Certificate.

Any usage of the PEFC Logo with reference to the specific project is considered as
an „on-product usage‟ and can only be applied when the content of PEFC certified
raw material (or sum of PEFC certified and PEFC recycled raw material) exceeds 70
%. The on-product usage of the PEFC Logo before the completion of the project is
only possible where the “expected” content of the certified raw material (see above)
exceeds 70 %.

Both communication of the content of certified raw material and the usage of the
PEFC Logo before the completion of the project should include a claim on “expected”
content calculated during the planning stage.

3.6 Controversial sources

The Controlling Entity is responsible for establishing measures, in compliance with

chapter 3.6 of Annex 4 and Appendix 7 to Annex 4, to ensure that uncertified
products supplied to the project through the Controlling Entity or through a Project
Member do not originate from controversial sources.

The Controlling Entity and Project Members are responsible for obtaining from their
suppliers self-declarations that the supplied uncertified products do not originate from
controversial sources. The Project Members must provide any such self-declarations
to the Controlling Entity.

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Guidance Document to PEFC Annex 4
The Controlling Entity is responsible for carrying out a risk assessment for the all
supplies of uncertified products delivered directly to the Controlling Entity or to the
Project Members. The Controlling Entity must also carry out a subsequent second or
third party verification programme where the risk has been classified as high. The
Controlling Entity should enter into a contractual, or other agreed relationship, with
Project Members whereby it can implement such second or third party verification
programmes of the supplies to Project Members.

4 MANAGEMENT RESPONSIBILITIES

The Controlling Entity is required to establish a management system in accordance

with the following elements of this guidance, and of Annex 4, to ensure correct
implementation and maintenance of the Project Chain of Custody process. The
management system shall also cover activities performed by Project Members.

SUMMARY OF APPLICATIONS AND RESPONSIBILITIES

Ref Responsibilities Controlling entity Project member

3 Chain of custody process - percentage based method
3.1.2 Definition of the Project YES NO
3.2 Identification of the origin of YES YES
supplied raw material (for its own supplies)
3.3 Calculation of the certification YES NO
percentage
3.4 Transfer of the certification YES NO
percentage
3.5 Sale and communication YES NO
(including PEFC Logo usage)
3.6 Controversial sources YES YES
3.6.2 Self declaration YES YES
3.6.3 Risk assessment YES NO
3.6.3 2nd and 3rd party verification YES NO
4 Management system requirements
4.2 Management responsibilities YES NO
4.2.1 Top management YES NO
commitment
4.2.2 A person with overall YES NO
responsibility (project
manager)
4.2.3 Periodic review YES NO
4.3 Documented procedures YES NO
4.4 Record keeping YES NO
(provides records on
supplied raw material
to the controlling
entity)
4.5 Resource management YES NO
4.6 Inspection and control YES NO

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SUMMARY OF THE USAGE OF THE ALTERNATIVE APPENDICES FOR THE
DEFINITION OF THE RAW MATERIAL ORIGIN (APPENDIX 1 AND APPENDIX 6
TO ANNEX 4)

Appendix 1 Appendix 6
“PEFC “PEFC
Usage of declarations “PEFC certified”
certified” recycled”
(content of) material
material material
Raw material classification
PEFC certified raw
certified certified other
material
PEFC uncertified (other
other other other
than recycled)
Pre-consumer recycled other other other
Post-consumer recycled neutral other certified
Non-wood based neutral neutral neutral
Usage of PEFC Logo and claims
70 % of PEFC 70 % of PEFC certified + PEFC
Minimum threshold
certified raw material recycled raw material
Claims “Promoting SFM” “Promoting SFM and recycling”
PEFC Logo PEFC Logo with the Mobius Loop
symbol

PEFC Logo usage

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EXAMPLE OF THE APPENDIX 1 AND APPENDIX 7 USAGE

Supplies:
PEFC certified raw material 45 t
PEFC uncertified raw
30 t
material
Pre-consumer recycled 10 t
Post-consumer recycled 75 t
Non wood raw material 80 t

Note 1: Only the actual percentage of PEFC certified raw material in supplied
products can be counted as “PEFC certified raw material”. The rest shall be counted
as “un-certified raw material”

Note 2: PEFC un-certified raw material shall be verified as not originating in

controversial sources.
Appendix 1 Appendix 6
“PEFC
“PEFC certified” “PEFC certified”
recycled”
material material
Usage of declarations material
(content of) “Product includes 53
% of PEFC certified “Product includes 28 % of PEFC
raw material” certified raw material and 47 % of
PEFC recycled raw material”
Raw material classification
Certified 45 t 45 t 75 t
Neutral 155 t (80 + 75) 80 t 80 t
Other 40 t (30 + 10) 115 t (30+10+75) 85 t (45+30+10)
Certification percentage 53 % 28 % 47 %
YES
(28 % + 47 % = 75 %) > 70 %)

Meeting the PEFC Logo

NO (53 % < 70 %)
usage 70 % threshold

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