Gateway to international timbertrade

Peru

Forest resources

According to the FAO (FRA2015) Peru has around 74.0 million hectares of forested land, which constitutes to 57.8% of the total land area. Around 72.8 million hectares are primary or otherwise naturally regenerated forest and around 1.2 million hectares are planted forest. Most plantations are located outside the Amazon in the Andes, with the main commercial species being Eucalyptus globulus. By far the main forest category in Peru is humid rainforest in the Amazon, but there are also important areas of arid and semi-arid forests on the coasts and semi-humid forests in mountain and inner-mountain valleys (ITTO, 2011).

The estimated average annual deforestation in Peru is quite low, around 0.2%. (FAO, 2015), where about one-third of the forest estate is degraded or secondary. The Ministry of Peruvian government has an interesting website on deforestation, with specified data per province for several time periods, since the year 2000, which indicates a loss of almost 1.5 million hectares of forests to other land uses in 15 years. Present deforestation is about 150.000 hectares per year. Quoting the Peruvian government, ITTO (2011) identifies a range of direct causes of deforestation which include the development of new infrastructure such as highways; new settlements in the Amazon Basin, including the expansion of urban centers; the expansion of the agricultural frontier, including for cash crops and shifting cultivation; the expansion of oil exploitation and hydro-electric schemes; mining in the southern part of the Peruvian Amazon; illegal logging; and the illicit cultivation of coca. Indirect causes of deforestation include migration to the Amazon region; agricultural policies favoring cash-crop development; development policies that favor energy generation; and new investment opportunities due to globalization.

According to FAO (2015) around 82.5 percent of forested lands is publicly owned, covering the protected natural areas and the permanent production forests. Management rights of these areas is divided among public administration (67%), private companies (12%), and communities (21%). The remaining 17.5 percent of the forested lands in Peru is privately owned, primarily by agricultural units, whether indigenous communities, rural communities or private properties. However, tenure over a significant proportion of the Peruvian forest area, particularly by indigenous people, is still disputed due to problems with regard to land titling by the state.

Peru has around 18.8 million hectares of forested land designated as protected areas, which include national protected natural areas, regional protected areas and privately protected areas.

Production and export

According to ITTO (2017) the industry of Peru produced in 2015 about 1.3 million m3 of logs, almost all is consumed by the domestic market (for further processing). Exports of primary timber products in 2015 was dominated by exports of sawn wood. Total export value in 2015 was around 67 million US dollars.

 

There are about 250 sawmills in Peru, most of which have a small installed capacity (averaging 2900 m3 per year). Only about 25% of sawmills have band-saws and a capacity of 10.000 m3 per year or more (ITTO, 2011). According to local sources (Customs Peru, SUNAT), there are many more sawmills. Solid timber exports are dominated by tropical sawn hardwood and mouldings together with small volumes of plywood.

In Peru it is not permitted to export logs from natural forests, but Peru has never evolved an internationally competitive wood manufacturing sector and exports of value added products such as wood furniture have remained at low levels (Oliver, 2013). As can be observed from the graph below the largest markets for Peruvian wood product exports are China, Mexico and the United States of America, although other countries in South America and the EU are also important export markets.

By far most sawn timber is produced in the Peruvian Amazon regions Loreto, Madres de Dios, Ucayali and Junin (MINAGRI - SERFOR 2016).

By far the largest areas under concession are located in the administrative regions of Madre de Dios, Loreto and Ucayali, which are located in the north-eastern Amazonian region of the country. The Madre de Dios region has most FSC certified concessions.

In these remote areas transportation of timber from the Amazonian forests is done by rivers (EIA, 2012). In many cases the timber from the Amazon rainforest is transported to the Port of Iquitos and the Port of Callao or Pucallpa or downstream from the Amazon River to Macapá in Brazil where it is shipped to Mexico and the U.S. (EIA, 2012).

 

Legality framework


Forest governance

 

In Peru SERFOR (Servicio Nacional Forestal y de Fauna Silvestre) the National Forestry and Wildlife Authority working under the ministry of agriculture and irrigation (MINAGRI - Ministerio de Agricultura y Riego) is responsible for the sustainable management of forests and wildlife resources in the country.

Some functions of SERFOR have been decentralized to regional forestry and wildlife offices (ARFFS - Autoridad Regional Forestal y de Fauna Silvestre), being the planning and controlling authority of forest and wildlife resources in their jurisdiction.

The independent state agency responsible for the supervision of the correct implementation of the management of natural resources and wild life is OSINFOR (Organismo de Supervisión de los Recursos Forestales y de Fauna Silvestre). This agency indirectly also supervises the functioning of the ARFFS.

On the 30th of September 2015 a new Forestry law (No. 29763) including its four related regulations came into force. Forest management legislation has changed considerably by this law. Besides adjustment of the old law, new regulations for management of forest plantations and agroforestry systems were added, as well as regulations for the management of forests belonging to the territories of indigenous and rural communities. 

Legal rights to harvest

All natural forest in the country has been grouped according to a national forest land use classification. Timber harvesting rights are granted for permanent production forests on public domain through a forest concessions system, and for private or community forest holdings through harvesting permits or harvesting authorizations.

Forest concessions are issued for a 40 years period (renewable) through a tender procedure. Harvesting permits and authorizations are issued on a one to 5 year basis, both upon request.

Concessionaires are required to develop and implement a General Forest Management Plan (Plan General de Manejo Forestal: PGMF) which needs to be approved by the ARFFS. The PGMF provides the overall framework for strategic planning for the duration of the concession. A five year implementation and business plan completes the document.

ARFFS is the regional authority granting concessions and approving forest management plans, permits and authorizations for timber harvesting and authorizations for forest conversion (forest clearing). ARFFS nowadays is usually located in the office of ARA (Regional Environment Authority). 

Taxes and fees

Harvesting fees for timber concessions are paid annually based on both total size of the forest concession and actual timber volume harvested. For harvesting permits and harvesting authorizations, where less volume is harvested special tariffs hold. Timber exporting companies can receive an incentive of 4% of the timber value according to the “draw back” system. 

Timber harvesting activities

For planning purposes a timber concession is normally sub-divided into 20 harvesting units in line with a 20 year rotation system. These units can be utilized for logging during any one year and are known as an Annual Cutting Area (in Spanish: Parcela de Corta Anual - PCA). If a timber concession measures 20.000 hectares, one PCA is 1.000 hectares. This PCA may yield a forest company 5.000 m3 round wood (per year) if the annual allowable cut (AAC) is defined at 5 m3 per hectare.

The concessionaire must submit an Operational Plan (Plan Operativo - PO), covering the PCA, for review and approval by ARFFT. This plan specifies the details of the annual harvest and includes a species and volume list and a map with the location of trees to be extracted, based on the forest inventory and forest census.

The Administrative Resolution (Resolución Administrativa or Resolución Jefatural) is the only official document of approval of the operational plan by ARFFS.

Due to technical and climate reasons normally not all allowable cut is harvested from the PCA in one year. In this case the forest company may “re-enter” the PCA in the next year in line with what is stated in the PO.

Post- harvest field inspections of selected timber concessions is implemented by OSINFOR and is carried out in order to check whether the transported and sold timber really originated from the annual cutting area as was stated in the PO, thus whether the concessionaire has acted in a legal and responsible fashion.

OSINFOR publishes the results of these supervision inspections on their website. These documents are made available to the public through the SIGO-Observatory (see also section Key Documents). Annual cutting areas with no observation appear in the SIGO-Green section and this timber can be procured without mayor risk of illegality. Instead timber from annual cutting areas with observations appear in the SIGO-Red section. Procuring timber from these areas implies risks of illegality and should be avoided.

It should be mentioned that OSINFORs supervisions cannot cover all concessions in time before the end of the harvesting year. In order to avoid legality issues, some timber exporters that manage timber concessions request OSINFOR to implement a post-harvest, but pre-transport inspection (forest to plant) of their PCA. In this way the timber exporter can always present a SIGO-green declaration to its client, if asked for.

Peruvian law requires forest companies to provide personal safety equipment to employees working in the forest. Employees with a permanent contract should receive minimum wage and have a health insurance.

Third parties' rights

Forest concession in Peru have been planned in the past at reasonable distances from indigenous or rural communities. During the last decade more and more indigenous communities have gained land titles for their ancestral lands. In some cases this has led to overlap with production forest issued as forest concession, leading to legal cases. Only FSC certified forest companies develop a protocol on management of possible future conflicts with (neighboring) communities.

Trade and transport

Each time a concessionaire removes timber from his concession, it must be accompanied by a document known as the Forest Transport Permit (Guía de Transporte Forestal - GTF) accompanies by a log list (Lista de trozas) specifying number, species and volume of the logs, place of origin and destination. (See section on Key Documents)

The forest transport guides are prepared by concessionaires on official formats registered and sealed by the forest authorities. At checkpoints police and forest authorities will verify these documents and check whether its content coincides with the cargo.

Through the information from the GTF, the ARFFS monitors the cumulative volumes of timber extracted from a concession in a document known as the Extraction Balance (Balance de Extracción). Any excess timber harvested or deviations in timber species will be noted and immediately fined.

Sawing mills receiving the timber need to record their inputs and outputs in an Operations Registry (Libro de operaciones). A batch of their outputs is transported again accompanied by a GTF indicating origin, destination and product volumes. This processing facility need to be legally established, which is demonstrated by an authorization of establishment as processing plant (Autorización para establecimiento de plantas de transformación).

Facilities storing and commercializing processed timber afterwards need also to be legally registered, which can be demonstrated with an Autorización para funcionamiento de depósito y establecimiento commercial issued by ARFFS.

Timber exporters need to comply with a set of rules and need to obtain a number of documents and which will be issued by various authorities. See the key documents section for more details on export requirements.

Key documents

LEGEND:

  • ADEX:                   Association of Exporters
  • ARFFS:                  Regional Forest and Wildlife Authority in Peru
  • CCL:                       Lima Chamber of Commerce
  • OSINFOR:            Supervisory Body for Forest and Wildlife Resources
  • SENASA:              National Agricultural Safety Service
  • SERFOR:               National Forest and Wildlife Authority in Peru
  • SNI:                       National Association of Timber Processing Plants
  • SUNAT:                Peruvian Tax and Customs Administration

Harvesting

Contrato de concesión forestal
ARFFS
Contract for a timber concession of 5.000 to 40.000 ha and for up to 40 years in the permanent production forests area.
Harvesting permit or authorisation
ARFFS
Permit or authorization for harvesting timber with specifications on the timber source (indigenous community lands, local community forests, or private landholdings)
Plan General de Manejo Forestal
ARFFS
Strategic long term planning for the whole forest management unit (FMU) based on information of a five year forest inventory.
Plan Operativo Anual (POA)
ARFFS
Operational plan detailing the harvest (max. three years) of the harvesting unit, based on the forest census information.
Resolución Administrativa
ARFFS
This document demonstrates approval of the operational forest harvesting plan (PO) indicating allowable cut
Guía de Remisión Remitente: GRR
Owner of the timber on format authorized by SUNAT
Official transport document for the transport of goods issued by the sender.

Processing and Trade

Guía de Transporte Forestal (GTF)
Concession title holder on format authorized by ARFFS
Official document for transporting forest products from the forest, detailing among others the species, volume, and origin of the products. Used by the titleholder and checked by authorities at check points.
Lista de trozas
Concession title holder on format authorized by ARFFS
Sheet with details about the logs (including codes and dimensions) and accompanying the Forest Transport Permit (GTF)
Guía de Remisión
Carrier of the timber on format authorized by SUNAT
Official document for the transport of goods issued by the carrier.
Balance de Extracción
ARFFS
Official cumulative record of timber volumes and species taken from a concession and harvesting unit. Emitted at the request of the title holder.
Libro de operaciones
Processing plant
Register of inputs and outputs of a processing facility
Autorización para establecimiento de plantas de transformación
ARFFS
Authorisation for operating a timber processing facility
Autorización para funcionamiento de depósito y establecimiento commercial
ARFFS
Authorization for operating a timber storage and commercialization facility
Permiso de exportación
SERFOR
Timber export permit covering a specific batch

Bans and quota

Export of forest products "in their natural state" is prohibited in Peru since 1972 except when they originate from nurseries or forest plantations and do not require further processing for final consumption.

 

 

Cites and protected species

APPENDIX I

Explanation

 

Monteromero / Pino blanco (Peru)

(Podocarpus parlatorei Pilg.)

Other names: Parlatore’s podocarp, yellowwood, brown pine, black pine, pino del cerro, pino montano.

A conifer species that cannot ordinarily be traded in international commerce. This tree is more common in Argentina and Bolivia than in Peru. Therefore, it is a specie not registered in Peru (MINAM 2011).

 

APPENDIX II

 

Bigleaf mahogany / Caoba (Peru)

(Swietenia macrophylla King);

Where the trade in logs, sawn wood, veneer sheets and plywood is restricted

American mahogany / Caoba (Peru)

(Swietenia mahagoni);

Where the trade in logs, sawn wood and veneer sheets is restricted.

Brazilian rosewood / Palo de rosa (Peru)

(Aniba rosaeodora);

Where the trade in logs, sawn wood, veneer sheets, plywood and extracts is restricted. Finished products containing such extracts as ingredients, including fragrances, are not considered to be covered by this annotation.

APPENDIX III

 

Spanish cedar / Cedro (Peru)

(Cedrela odorata L.);

(Cedrelo angustifolia Sessé & Mac. Ex DC);

(Cedrelo fissilis Vell.)

Where the trade in logs, sawn wood and veneer sheets is restricted

 

National action on timber legality

National action on timber legality (Peru)

Peru is currently not negotiating or having a VPA with the EU.

The intense and above all drastic field work during the last years of OSINFOR (state agency responsible for the supervising the correct implementation of the management of natural resources and wild life) has resulted in numerous observations, fines, and also closures of forest concessions and revoking of harvesting contracts, making concessionaires and private and communal forest managers more careful in the way they plan and implement forest management.

In cooperation with the international Environmental Investigation Agency (EIA), operations have been organized among mayor sawmills and processing plants in all forest regions of the country, resulting in confiscations of hundreds of cubic meters of supposedly illegal timber meant for export. In the end of 2015 even timber was confiscated on board of a vessel in the Iquitos port, which was ready to set sail to the United Stated.

Many discussions have following on the real legality of this timber that officially had all required export documents.  The issue of the discrepancy between legal timber and so-called “legalized timber” kept national and international press busy for months. The result is that Peru internationally got the name as a country with high risk for timber sourcing, which has seriously affected the Peruvian forest sector as can be seen by the stagnant data on timber export volumes since the last years.

Since then a lot of effort is put in by the same government on making the timber traceability more complete and above all more transparent. The 2016 new forest law foresees registration of timber in the forest at the tree level through a unique national code system. This code will accompany the log from the forest until and after processing to guarantee full traceability.

During the Lima COP 20 in December 2014 an important initiative, called “Pacto Nacional por la Madera Legal” (National Pact for Legal Timber), was started. Through this initiative key players as private companies, civil society and different government ministries joined forces to promote the trade and use of legal (verified) timber. Final objective of this pact is to secure that al timber produced for national commercial purposes will be of legal origin.

Since then progress has been made through the elaboration of a “Verification Protocol” (Protocolo de Verificación). This is a tool that assures the objectivity of the minimum standards to adherence to the Pact. Through this protocol some Lima based construction companies realized the importance of procuring timber from known sources. Some signed purchase contracts with the bigger FSC certified companies.

Another related initiative is “Forest Plan” or “Plan Selva” from the Education Ministry (MINEDU) through the National Education Infrastructure Programme (PRONIED). Through the coordination with different authorities this initiative applied the use of strict criteria in procuring timber of legal sources for the annual construction campaign of school furniture.

Third party certification

Third party certification

There are currently 805.831 hectares (11 companies) of the Peruvian permanent production forests certified under an FSC-FM certificate (FSC, August 2018), this includes 1,232 ha. of FM-certified plantation forests. FSC is currently the only third party scheme with valid certificates in Peru. Since 2017 FSC-Controlled Wood has also become popular among Peruvian timber producers, resulting in currently 113.514 hectares of Peruvian permanent production forests with FSC-CW certificate (FSC, May 2018).

Sources of information


 

Contacts

Ministerio de Agricultura y Riego (MINAGRI)
Av. La Universidad Nº200 - La Molina |
Av. Alameda del Corregidor Nº155 - La Molina
Ministry to which the National Forest Authority (SERFOR) belongs
Servicio Nacional Forestal y de Fauna Silvestre (SERFOR)
Elena Rubio, contact for responsible procurement
Avenida 7 N°229, Urb. Rinconada Baja.
La Molina
Lima, Peru
Lima, Peru
National forest and wildlife authority, responsible for the management of forests and wildlife under MINAGRI. SERFOR is also the CITES Management Authority for Peru.
OSINFOR
Av. Javier Prado Oeste 692
Magdalena del Mar
Lima, Peru
Supervisor of Forest Resources Agency, supervising and financing of sustainable harvesting and conservation of forest resources and wildlife as well as the environmental services generated by forests.
SERNANP
Calle Diecisiete 355, Urb. El Palomar.
San Isidro
Lima, Peru
Lima, Peru
National Protected Areas Service, in charge of the management of protected areas (ANP).
FSC Peru
Alba Solis
Av. Del Pinar 152 oficina 708 Chacarilla
Surco, Peru
Surco, Peru
fsc@fsc.org.pe asolis@fsc.org.pe
FSC Peru, originating from Certificación Forestal Perú – CFPERU, is the national office of the Forest Stewardship Council
SPDA
Avenida Prolongación Arenales 437 Lima 27, Perú
Lima, Peru
Peruvian Society for Environmental Rights is an NGO that works since 1986 on legal issues related to natural resources management and access to natural resources by indigenous and rural communities.
AIDER
Calle Las Camelias 174, Piso 6
San Isidro
Lima, Peru
Association of Integral Research and Development that promotes and coordinates sustainable forest management by indigenous communities.
PTTP was launched November 21st 2013 in Lima, Peru and has the following three strategies:
1. Promoting and supporting FSC certification for forest companies and communities, while facilitating access to forest finance for these partners.
2. Strengthening market links between Peruvian suppliers and national, European and American/Canadian buyers.
3. Developing a forest sector platform to represent the interests of entrepreneurs within the timber value chain towards the national government and international institutions.
GFTN-Peru is a local branch of WWF's Global Forest & Trade Network (GFTN), an initiative to promote responsible forestry and eliminate illegal logging.
Superintendencia Nacional de Aduanas y de Administración Tributaria (SUNAT)
Customs authority Peru
PROMPERU
Elmer Lava
Calle 21, #713
San Isidro
Lima, Peru
Peruvian government export promotion authority.
IDH
Sustainable Trade Initiative - -The Amazon Alternative - Peru Tropical Timber Program (PTTP), and ProMadera
From 2010 onwards The (Dutch) sustainable trade initiative (IDH) financed The Amazon Alternative (TAA) and later The Peru Tropical Timber Program (PTTP). These programs realized support to mayor FSC and COC certification processes in Peru. The last 1.5 year this program was implemented through GIZ under the name of ProMadera which ended by the end of 2016.

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