3.5. HCV 5

HCV1:

Protected areas (GIS layer from Ministry of Environment, Water and Forests, Natura 2000 boundary
database)
Rare, threatened, endangered or endemic species habitats (Natura 2000 management plans, IUCN
Redlist forest management plans, scientific studies, expert consultation)
Forests with critical seasonal use (Forest management plans, scientific studies, Natura 2000
management plans, expert consultation)

3.3. HCV 3

HCV3:

Forests that include rare, threatened or endangered ecosystems, (Forest management plans, scientific
studies, expert consultation)
Natural forest ecosystems with a high compositional and structural complexity (Forest management
plans, scientific studies, expert consultation)
Forests with primary structure (PINMATRA layer from Ministry of Environment, Water and Forests, The
Catalogue of Virgin and QuasiVirgine Forests)

3.1. HCV 1

HCV1:

Protected areas (GIS layer from Ministry of Environment, Water and Forests, Natura 2000 boundary
database)
Rare, threatened, endangered or endemic species habitats (Natura 2000 management plans, IUCN
Redlist forest management plans, scientific studies, expert consultation)
Forests with critical seasonal use (Forest management plans, scientific studies, Natura 2000
management plans, expert consultation)

1.21. Legislation requiring due diligence/due care procedures

Legislation covering due diligence/due care procedures, including e.g. due diligence/due care systems, declaration obligations, and /or the keeping of trade related documents, legislation establishing procedures to prevent trade in illegally harvested timber and products derived from such timber, etc.

1.18. Offshore trading and transfer pricing

Legislation regulating offshore trading. Offshore trading with related companies placed in tax havens combined with artificial transfer prices is a well-known way to avoid payment of legally prescribed taxes and fees to the country of harvest and considered as an important generator of funds that can be used for payment of bribery and black money to the forest operation and personnel involved in the harvesting operation. Many countries have established legislation covering transfer pricing and offshore trading. It should be noted that only transfer pricing and offshore trading as far as it is legally prohibited in the country, can be included here. Risk relates to situations when products are sold out of the country for prices that are significantly lower than market value and then sold to the next link in the supply chain for market prices, which is often a clear indicator of tax laundry. Commonly, the products are not physically transferred to the trading company.