Requirements for Vendors Using Wood Version 2.0 Prepared by: KSO QA Department - CSR team Approved By: Luc Miroslaw – KSO Head of QA

Purpose The purpose of this manual is to support vendors to comply with Kingfisher Group Timber Policy and international laws and regulations pertaining to timber products such as the EU Timber Regulation. Compliance with these guidelines is a mandatory to supply Kingfisher Operating Companies (OpCos) with timber products.

Scope These requirements extend to all products made from or containing wood or paper and non-timber natural species. It includes timber products in the following product categories: timber and joinery, flooring, bathrooms, kitchens and furniture, shelving and storage, tools, wall coverings, hardware, house wares and lighting, garden sheds, barbecue charcoal and firewood. Wood used in composite products (e.g. MDF, HDF) is included in scope unless recycled 1. For recycled timber only sections of 2.1.2 & 2.1.3 apply.

The scope does not include packaging that is used to support, protect or carry products e.g. cases, boxes & pallets. It does cover packaging products (i.e. packaging that is a product in its own right) e.g. decorative gift boxes, packaging used for display selling. It also includes samples and display materials. For further guidance on scope of application of the EU Timber Regulation see Annex 1 to this Manual and Regulation (EU) No 995/2010 and associated guidance. 1

Recycled timber is timber which has completed its lifecycle and would otherwise be disposed of as waste e.g. timber from dismantled buildings, or waste wood. By-products from a manufacturing process involving material which had not completed its lifecycle and would otherwise have been discarded as waste is not considered recycled and is included in scope

KQA-GDL-0009 KSO Requirements for Vendors using Wood – Version 2.0 (February 2013)

Page 2 of 21

References 1.

OpCos specific policies and requirements – Refer to Annex 9 for links to OpCo policy requirements.

2.

Regulation (EU) No 995/2010 of the European Parliament and of the Council of 20 October 2010 laying down the obligations of operators who place timber and timber product on the market (EU Timber Regulation).

1. Kingfisher Timber Policy 1.1. Compliance agreement 1.1.1. The vendor shall sign a letter of commitment or guarantee to (Annex 2) and assign a person responsible for securing implementation.

1.1.2. Timber that does not comply with OpCos specific policies and requirements and Regulation (EU) No 995/2010 shall not be supplied to the Kingfisher Operating Company (OpCo).

1.2. Preferred Sustainable Forestry Schemes 1.2.1. The vendor shall, where possible, ensure that timber used for KSO production comes from the following certified sources: 

Forest Stewardship Council (FSC)



Programme for the Endorsement of Forest Certification (PEFC) (* for non-tropical species only. For PEFC endorsed schemes e.g CSA, SFI, CERTFLOR, AFS, FFCS, EFFC please refer to Section 1.2. Schemes in Progress and Other Schemes below)

KQA-GDL-0009 KSO Requirements for Vendors using Wood – Version 2.0 (February 2013)

Page 3 of 21

1.3. Schemes in Progress and Other Schemes 1.3.1. Where timber from Preferred Sustainable Schemes is not available, timber used for KSO production may be sourced from the following:

I. Schemes with a formal progress towards sustainable forest certification, including members of the The Forest Trust (TFT, formerly Tropical Forest Trust), World Wildlife Fund (WWF) and operations verified by the Rainforest Alliance as part of the SmartStep program.

II. Other forest certification schemes (PEFC tropical, or PEFC Endorsed Schemes e.g. CSA, SFI, CERTFOR, AFS, FFCS, EFFC, etc.).

KQA-GDL-0009 KSO Requirements for Vendors using Wood – Version 2.0 (February 2013)

Page 4 of 21

1.4. Known Legal Source (KLS) 1.4.1. Timber that is not from Preferred Sustainable Schemes, Schemes in Progress or Other Schemes is known as Known Legal Source (KLS).

1.4.2. Vendors shall develop plans to phase out KLS timber and move towards Preferred Sustainable Sources for KSO production.

1.5. Unknown Source (UKS) KSO does not accept unknown source, as well as other unwanted sources such as illegal, wood sourced from high conservation value forests that are not credibly certified or in progress to certification e.g. through participation in GFTN conversion and controversial sources. 1.5.1. Products containing timber from unknown sources shall not be shipped to OpCos.

1.6. High Risk Timber Species 1.6.1. Vendors may be required by KSO to obtain a higher level of forestry scheme specified for high risk timber including endangered or vulnerable timber species.

1.7. Non-Timber Natural Species 1.7.1. The vendor shall meet requirements outlined in Annex 3 for non-timber natural species.

KQA-GDL-0009 KSO Requirements for Vendors using Wood – Version 2.0 (February 2013)

Page 5 of 21

2. Timber Information 2.1. Timber Data 2.1.1. Using the Wood Traceability Sheet provided by KSO (Refer to Annex 5 for example) the vendor shall collect data and associated documentation to demonstrate wood origin for all timber that is and can be used for KSO production.

2.1.2. Data shall include product, timber species, country of harvest, quantity, supplier, and customer.

2.1.3. For recycled timber KSO shall collect evidence to demonstrate that it is such.

2.1.4. Data and associated documentation (Refer to Annex 4, 6, 7 & 8) shall be collected for all timber supply before business startup with suppliers and updated regularly.

2.1.5. Vendors shall inform KSO on changes to timber sourcing (for KSO production) and provide updated data and associated documentation to KSO on request.

2.1.6. Additional data and documentation may be required by KSO where additional risk mitigation measures may be necessary.

2.2. Preferred Sustainable Forestry Schemes

KQA-GDL-0009 KSO Requirements for Vendors using Wood – Version 2.0 (February 2013)

Page 6 of 21

2.2.1. For certified product from preferred sustainable forestry schemes, in addition to the information above, the vendor shall provide its Chain-Of-Custody Certificate.

2.2.2. Certified labelled products shall be sold with the corresponding claims on their sales and delivery documentation. Invoices for certified product shall show all information required in relevant scheme (FSC/PEFC) standard including: a) Name and contact details of the organization. b) Name and address of the customer c) Date when the document was issued d) Description of the product e) Quantity of the products sold f) The organization’s Chain of Custody or Controlled Wood code g) Clear indication of the claim for each product item or the total products e.g: FSC 100%, FSC Mix, FSC Recycled etc.

2.2.3. In case the direct supplier is not certified but purchases timber materials from a certified source vendors may obtain their supplier’s FSC/PEFC COC (Chain of Custody) and submit to KSO.

2.3. Schemes in Progress and Other Schemes 2.3.1. For product from Schemes in Progress and Other Schemes, in addition to the information above, the vendor shall provide:

I. TFT / WWF / RA Certificate/ verification statement.

KQA-GDL-0009 KSO Requirements for Vendors using Wood – Version 2.0 (February 2013)

Page 7 of 21

Direct suppliers’ own certificate of TFT / WWF membership or RA Verification statement (Refer to Annex 7 for examples); Including membership number and issue date. For validity of the TFT membership: http://www.tft-forests.org/members/; membership: http://www.gftn.panda.org/about_gftn/current_participants/; RA auditing: http://www.ra.org/forestry

II. Third party certificate including logo and issue date (or expiry date). a) Invoices showing all information required including b) Name and contact details of the organization c) Name and address of the customer d) Date when the document was issued e) Description of the product f) Quantity of the products sold g) Verification code

Note: Kingfisher may choose to apply additional verifications should the credibility of a certificate be in doubt or to obtain further assurances for example. a) A complete set of customs documents if timber has been imported. b) Related purchase orders and invoices between direct supplier & supplier’s suppliers. c) Certificates of downstream suppliers and forest. d) 3rd party verification.

KQA-GDL-0009 KSO Requirements for Vendors using Wood – Version 2.0 (February 2013)

Page 8 of 21

2.4. Known Legal Source (KLS) Product that is not certified and has all documentation in place to verify traceability and legal compliance is known as Known Legal Source.

2.4.1. For KLS timber, the vendor shall ensure that all documentation is in place to demonstrate traceability and legal compliance. Examples are provided in Annexes 4 & 8.

2.4.2. Data and associated documentation shall be collected before business start-up with suppliers and updated regularly by the vendor.

3. Other requirements 3.1. Vendor System Requirements 3.1.1. The vendor shall establish a written timber procurement procedure that describes the vendors’ routines to fulfil the above.

3.1.2. The vendor shall communicate KSO requirements on raw material in written form to all timber suppliers business start-up. The vendor is responsible to ensure that demands are understood, implemented, and transferred throughout the entire supply chain.

KQA-GDL-0009 KSO Requirements for Vendors using Wood – Version 2.0 (February 2013)

Page 9 of 21

3.1.3. The vendor shall maintain a register of all incoming wood that can be used in KSO production. The register shall include wood volumes per supplier, species, material, and place of origin.

3.1.4. The register and information on wood origin shall be retained for at least five years.

3.1.5. The vendor shall identify and physically separate any timber and or product that can not be verified as meeting KSO timber requirements in such a way that it is possible to track it throughout the entire production process.

3.1.6. The vendor shall establish and implement a training plan covering the above requirements for relevant personnel. Records of training provided shall be kept.

KQA-GDL-0009 KSO Requirements for Vendors using Wood – Version 2.0 (February 2013)

Page 10 of 21

Annex 1. Scope of application of EUTR2 Product / Material type

In EUTR scope?

Bamboo e.g. flooring

Yes

Bamboo in paper

Not in scope

Cork Bagasse

Not in scope Yes

Tools, broom or brush bodies and handles of wood Lamps and lighting fittings Wooden frames for paintings, photographs, mirrors or similar objects Commercial catalogues

Not in scope

EUTR reference (classification via EU Common Customs Tariff Combined Nomenclature - Council Regulation (EEC) Nº 2658/87): 4409 – “including bamboo and rattan, if unwoven, e.g. flooring, worktops etc” 4412 – “44 Wood and articles of wood; wood charcoal 12 Plywood, veneered panels and similar laminated wood 10 00 00 Of bamboo” “Pulp and paper of Chapters 47 and 48 of the Combined Nomenclature, with the exception of bamboo-based … products” Cork and articles of cork (chapter 45) 4410 – “Board of bagasse, bamboo or cereal straw particles or other ligneous materials, whether or not agglomerated with resins or other organic binding substances” 4417

Not in scope Yes

9405 4414

Not in scope

Printed books, Newspapers, pictures, and other products of the printing industry, manuscripts (Chapter 4911)

Pallets 2

Not in scope.

“Not included are recycled products, as well as printed papers such as books, magazines and newspapers” 4415 - …. cable-drums of wood; pallets, box pallets and

This is for guidance only and may change over time. For specific questions, please contact KSO responsible persons

KQA-GDL-0009 KSO Requirements for Vendors using Wood – Version 2.0 (February 2013)

Page 11 of 21

(used exclusively as packing material to support, protect or carry another product placed on the market) Pallets (as a product) Product packaging

Recycled

Composite ("Structural timber composites" include engineered wood based materials or components. Include: • glued laminated timber or glulam • laminated veneer lumber (LVL) • parallel strand lumber (PSL) • laminated strand lumber (LSL)) Wood Plastic Composite

Samples Display material Packaging used for display selling

other load boards, of wood; pallet collars of wood. (Not packing material….) Yes Not in scope.

Not in scope.

Yes

4415 - …. cable-drums of wood; pallets, box pallets and other load boards, of wood; pallet collars of wood. (Not packing material used exclusively as packing material to support, protect or carry another product placed on the market.) Timber products or components of such products manufactured from timber or timber products that have completed their lifecycle and would otherwise be disposed of as waste are also not covered by the EU Timber Regulation. ‘Waste’ is defined as ‘any substance or object which the holder discards or intends or is required to discard’. “however, documentation should be in place to support this” 4412 “Plywood, veneered panels and similar laminated wood”

Unclear. No specific CN WPCs are produced by mixing ground wood particles and thermoplastic resin. code applied. It is likely 4410 “Particle board, oriented strand board (OSB) and similar board (for to be classified under example, waferboard) of wood or other ligneous materials, whether or not ‘particle board’ agglomerated with resins or other organic binding substances” Yes. No specific CN code applied to ‘samples’ but Article 2 ‘Definitions’ of the EUTR states that: “‘placing on the market’ means the supply by any means, irrespective of the selling technique used, of timber or timber products for the first time on the internal market for distribution or use in the course of a commercial activity, whether in return for payment or free of charge.”

KQA-GDL-0009 KSO Requirements for Vendors using Wood – Version 2.0 (February 2013)

Page 12 of 21

Annex 2. Vendor Guarantee Letter Company address Date: (dd/mm/yy) Guarantee Letter Timber Compliance

Kingfisher Timber Guidelines and associated documents outline requirements for vendors to supply timber and timber containing products from proven well managed forests, recycled or known legal source. The new EU Timber Regulation, which comes into force in March 2013, prohibits placing of timber on the EU market if it was illegally harvested. General Requirements 1. The vendor undertakes to at all times comply with all relevant local, national and international laws, regulations and provisions applicable in the country of production.

2. The vendor shall for timber and timber containing products supplied to Kingfisher solely use wood that has been produced in compliance with existing laws & legislation and accepted forest practices within the country and/or region where the wood originates from. The origin of the wood must be known and documented to country and where necessary region.

3. The vendor shall effectively communicate to all its sub-suppliers, as well as to its own co-workers, the content of the KSO Vendor Requirements, and ensure that all measures required are implemented accordingly.

KQA-GDL-0009 KSO Requirements for Vendors using Wood – Version 2.0 (February 2013)

Page 13 of 21

EUTR 4. Product(s) for Kingfisher Group is/are in compliance with Regulation (EU) No 995/2010 of the European Parliament and of the Council of 20 October 2010 which lays down obligations of operators who place timber and timber products on the market.

5. The vendor shall indemnify Kingfisher Group and any company in, associated with or retained by the Kingfisher Group from and against all actions, costs, charges, losses, damages and expenses occasioned by or in connection with our company’s non-compliance with the above Regulation which they or any of them shall or may incur or sustain. We hereby confirm that we have read, understood and that we agree to comply with the terms of this Commitment and the KSO Vendor Requirements on Timber.

Authorized Signature, Name…………………………………………. Position………………………………………. Company Chop……………………………….

KQA-GDL-0009 KSO Requirements for Vendors using Wood – Version 2.0 (February 2013)

Page 14 of 21

Annex 3. Requirements for Non-Timber Natural Species Non Timber Natural Species for example: Rattan, reed or bamboo are grass species, non-timber and therefore exempt from the requirements of certification within the Kingfisher Timber Policy Standard. They are considered as ‘Non-Timber Forest Product’ (NTFP) for which Kingfisher expects compliance with its ‘mandatory minimum requirements’ as shown in the step process below: Step I: Visibility 1.1. The vendor shall record the following and provide to KSO: - Country of origin of the material source(s). - Species (common name, not trade name). - Certification scheme (where applicable), and vendors chain of custody certificate (FM/CoC or CoC). - Volume (m3), product category and number of SKUs (line level data). Step II: Controlled 2.1. Product should not be accepted unless the vendor can supply documentary evidence that all material sources used come from legally harvested and non-controversial areas. Acceptable documentation must be understandable, legible and may include, but is not restricted to the following: - Copy of the ‘Forest Permit’ or right to harvest. - Documents which reference the forest or origin (to district level) e.g.: Concessionaire’s forest district sale to the sawmill. - Appropriate import/export permits/payments/documentation and/or independent trade verifications at port. - Delivery and transport dockets.

KQA-GDL-0009 KSO Requirements for Vendors using Wood – Version 2.0 (February 2013)

Page 15 of 21

Annex 4. Traceability and legal compliance for Known Legal Source (KLS) The following are examples of documents required to demonstrate traceability and legal compliance of timber. Timber origin: China. Tree harvesting certificate【采伐许可证】(Refer to Annex 8 for example) 

Must clearly state the timber species and volume



Must have Tree Logged Period and the expiry date



Issued by State Forestry Department 【林业局】

Log conveyance certificate【运输证】(Refer to Annex 8 for example) 

Must have the conveyance covered period



Must clearly describe from one destination to another



Issued by State Forestry Department

Disease and pest quarantine certificate【植物检疫证】(Refer to Annex 8 for example) 

Must have the timber species and expired date



Issued by State Hygiene Department

Timber origin from countries other than China. 

Documents in accordance with local forestry policy (Equal to Harvesting Certificate in China), e.g. Forest Management Plan issued and approved by State Forestry Department.



Certificates and documents required by customs (Including Certificate of Origin, Bill of Landing, Phytosanitary Certificate, Goods Declaration, Packing List, Fumigation Certificate etc.).

KQA-GDL-0009 KSO Requirements for Vendors using Wood – Version 2.0 (February 2013)

Page 16 of 21

Annex 5. Example of Wood Traceability Sheet in KSO Product Specification Wood Traceability Sheet Version 1

Products Identification Vendor name

Opco item code

Opco Name

Factory name

KSO item code

EAN (Barcode)

Product description

Vendor item code

Brand

Nature and origin of the wood used in the manufacturing process of the products Commercial name of the wood used in the manufacturing process of the product

Scientific name of the wood used in the manufacturing process of the product

Growing country of the wood used in the manufacturing process of the product

Certification of the links of the supply chain of the product

If other, please specify the certification

Total volume of wood or of wooden material in the product (in m 3)

Information of Wood Supply Chain Forest concession Name

Address

Country

Eco-certification

Certificate number

License number

Expiry date

Country

Eco-certification

Certificate number

License number

Expiry date

Address

Country

Eco-certification

Certificate number

License number

Expiry date

Address

Country

Eco-certification

Certificate number

License number

Expiry date

Address

Country

Eco-certification

Certificate number

License number

Expiry date

Middle operation no.1 (e.g. sawmill) Name

Address

Middle operation no.2 (e.g. wood trader) Name

Manufacturer Name

Vendor Name

Download this file at http://www.kingfishersourcing.com/kal/csr/Doc_FA/15%20Wood%20Traceability%20Sheet.xlsx

KQA-GDL-0009 KSO Requirements for Vendors using Wood – Version 2.0 (February 2013)

Page 17 of 21

Annex 6. – Example of FSC & PEFC COC Certificates

KQA-GDL-0009 KSO Requirements for Vendors using Wood – Version 2.0 (February 2013)

Page 18 of 21

Annex 7.– Examples of TFT, WWF and RA (SMARTWOOD) Certificates TFT

WWF

RA (SMARTWOOD)

KQA-GDL-0009 KSO Requirements for Vendors using Wood – Version 2.0 (February 2013)

Page 19 of 21

Annex 8. – Example of Harvesting, Transport & Quarantine Certificates

KQA-GDL-0009 KSO Requirements for Vendors using Wood – Version 2.0 (February 2013)

Page 20 of 21

Annex 9. – OpCos policies and requirements Opco

Country

Document (hyperlink)

B&Q

United Kingdom

Timber & Paper Policy and Buying

Brico Depôt

France

Brico Depot Wood Policy

Castorama

France

CastoramaTimber Policy

Hornbach

Germany

CSR-Leitlinie Juli (German) CSR-Leitlinie Juli (English)

Screwfix

United Kingdom

Screwfix Timber Policy

KQA-GDL-0009 KSO Requirements for Vendors using Wood – Version 2.0 (February 2013)

Page 21 of 21