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Timber Risk Assessment
List of applicable legislation
Risk Mitigation Guide
Document Guide
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Timber Risk Score: 0 / 100 in 2017. The Timber Legality Risk Assessment contains an evaluation of the risk of illegality in Myanmar for five categories and 21 sub-categories of law. We found:

  • Specified risk for 19 sub-categories.
  • Low risk for 0 sub-categories.
  • No legal requirements for 2 sub-categories.

This page provides an overview of the legality risks related to timber produced in Myanmar. 

Forests cover approximately 48% of Myanmar (FAO 2015). Virtually all forests are public forests, apart from some village forests that have been granted to local communities.

Myanmar’s wood production ranges from woodfuel to fine furniture. Around 98% of timber exports go to Asian countries.

Several legality risks are present in Myanmar timber supply chains. The risks are wide ranging and appear across all categories of law. If you are sourcing timber from Myanmar you should take care to ensure the extensive risks identified are not present in your supply chains, or have been sufficiently mitigated.
 

Corruption Perceptions Index

Score: 28 / 100 in 2021

Rank: 140 out of 180 countries in 2021

Bans and restrictions

Log export ban: Total ban on export of round logs since 2014

Other bans/restrictions: Temporary nationwide logging ban until march 2017; 10-year logging ban in the Pegu Yoma region; Timber products from land conversion and conflict areas and confiscated timber can't be exported; China banned cross land border trade in timber products since 2015.

Armed conflict

 

Tensions between Buddhist and Muslim communities in Myanmar's Rakhine State have escalated dramatically since late August 2017.

According to the Uppsala Conflict Data Program there were 6 579 deaths from 2010-2019. 

CITES species

CITES appendix II: Aquilaria malaccensis, Dalbergia spp., Taxus wallichiana, Rauvolfia serpentina. 

 

Timber sources

  • Find out the different sources of legal timber
  • Determine which source type your timber comes from
Timber source type Description of source type

Permanent Forest Estate

Timber from Reserved Forest, Public Protected Forest, and Unclassified Forest within the Permanent Forest Estate.

Harvesting requires an extraction permit.

Unclassified Forest under conversion to other land use

Timber from land under the jurisdiction of the Ministry of Agriculture and Irrigation (MOAI), and trees under the jurisdiction of the Forest Department of MOECAF (Ministry of Environmental Conservation and Forests).

A permit from the Forest Department Is needed to clear trees.
 

Risk assessment summary

Legal rights to harvest

Legal rights to harvest, EUTR
  • Risk that land legal status and use conflict due to overlapping or misaligned land classification in areas with unofficial land status 
  • Risk that forest areas are illegally converted to agricultural use due to existing unofficial land claims and possibility to illegally encroach to forest areas 
  • Risk that harvest permits are assigned illegally, because of the high overall corruption level in Myanmar, lack of transparency and openness in the process of selecting of contractors and allocation of contracts to contractors 
  • Risk that legal land status and management rights are not properly controlled, because security status of the area does not permit union state authorities inspections 
  • Risk that management plans are not implemented in the forest 
Taxes and fees
Taxes and fees, EUTR
  • Risk that payments of harvesting fees and taxes are avoided 
  • Risk that harvest fees are not paid, when harvesting is conducted for the purpose of land development

Timber harvesting activities

timber harvesting activities, EUTR
  • Risk that forest management laws, regulations and rules are violated 
  • Risk that protected species and areas are illegally logged or poached 
  • Risk that environmental requirements are not followed 
  • Risk that health and safety requirements are neglected 
  • Risk that employment requirements are violated and forced labour is used 

Third parties' rights
Third party rights, EUTR
  • Risk that conflicts over land resources occur and customary rights are not respected through classification of land 
  • Risk of ethnic conflict involving indigenous peoples
Trade and transport
Trade and transport, EUTR
  • Risk that documentation describing trade and transport of timber, classification of grades, species, and volumes, are falsified 
  • Risk that transport or trade documents are filled in incorrectly/corruptly 
  • Risk that prices are manipulated and offshore accounts/tax havens are used 
  • Risk that logs and timber products are exported illegally 
  • Risk that CITES-listed species are illegally harvested and traded 

 

Mitigate the risks in your supply chain

Learn which actions we recommended to mitigate the risks associated with the timber sources from Myanmar.

Mitigation recommendations

There are six recommended actions to mitigate the risks associated with timber sources from Myanmar:

1. Fully map your supply chain

2. Obtain and verify documents 

  • Forest level documents
    • Forest management plan (incl. demarcation of harvest area, protected areas)
    • Timber extraction contract
    • Timber extraction permit
    • Annual operating or harvesting plans
    • Log marking books (confirming the payment of royalties shall be consistent with the logs (Royalty Mark))
    • Joint measuring forms verify the logs' measurement and markings (Forms C and D).
    • Royalty hammer marks and two rows of serial numbers on logs. Check that they have been correctly applied and verified by reference to records.
  • Tax related documents
    • Tax receipts and invoices. Check that they are consistent with materials and volumes
  • Employment related documents
    • Worker contracts
    • Certificates of competence of workers
  • Trade and transport documents: 
    • Trade permits
    • FD approval for export
    • Export permits and letters
    • CITES permits, for CITES-listed species

3. Consult with stakeholders

  • Stakeholders confirm that land tenure rights are clear (in areas with land ownership conflicts)
  • Confirm that the forest management plan and harvest permit have been approved according to legally prescribed process that were free of corrupt practices
  • Authorities confirm that harvesting permits are valid
  • Confirm that cases of apparent criminal activities by the military (Tatmadaw) (e.g. facilitating and bribe-seeking from illegal logging) are subject to criminal investigation
  • Staff and contractors confirm that legally required protection equipment is provided and used
  • Staff and contractors confirm that there is no forced or compulsory labour associated with harvesting activities
  • Financial authority confirms that all required income and profit taxes have been paid

4. Carry out on-site verification

  • Confirm that harvesting takes place within property limits (including felling, transport and log landings)
  • Confirm that the contents of the management and harvesting plans, the code of harvesting, and harvesting restrictions are adhered to in the field
  • Confirm that information regarding area, species, volumes and other details given in the harvesting permit are correct and within limits prescribed in the legislation
  • Confirm that all trees selected for harvesting are marked by the FD and no trees without appropriate FD marks are harvested
  • Confirm that logs are marked with a revenue mark (Akauk)
  • Confirm that skidding is carried out to the prescribed Measuring Point (MP).
  • Confirm that procedures for surveying, managing and protecting endangered or threatened species within the management unit are followed
  • Confirm that nature protection regulations relating to protected areas, set-aside areas, protected species and hunting restrictions are followed
  • Confirm that income tax derived from logging has been paid.  Where discrepancies between actual and declared export volumes are consistently apparent, the evident lack of enforcement requires sanctions against responsible individuals in the financial authorities for complicity in crime.
  • Confirm that community forestry rights are not violated 
  • Confirm that all safety and health regulations are followed and all required safety equipment is used
  • Confirm that the minimum age for all personnel involved in harvesting activities is observed
  • Confirm that products are correctly classified (species, quantities, qualities etc.) on sales documents, customs declarations and other legally required documents
  • Confirm that your material is equivalent to what has been invoiced and marked
  • Confirm that customs seals on containers have not been tampered with

5. Conduct targeted timber testing

  • Conduct timber testing on samples of purchased material to verify the species or origin of timber, where appropriate

6. Avoid / do not buy

  • Avoid products that include materials bought at spot- and/or open-markets

 

Profile Publication Date
2017-06-19