Natural Resources Law II

Peter Mensah
Week 2 – Trees & Timber
Trees &
Timber
Trees
UN FAO describes a ”tree” as “a woody perennial with a single main stem, or
in the case of coppice with several stems, having a more or less definite
crown. Includes: bamboos, palms and other woody plants meeting the above
criterion.” The Forests Act (Cap 157) in Section 39, defines a “tree” as
including “palms, bamboos, stumps, brushwood, and canes.”

“Trees and leaves, flowers and fruit, and any other parts and produce not
mentioned under trees” found in or brought from a forest reserve, are listed
as ”forest produce” under Section 39 of the Forests Act (Cap 157).

Trees act as carbon sinks, absorbing carbon dioxide and helping mitigate
climate change. Trees also support biodiversity, providing habitats for various
plant and animal species. The roots of trees help in preventing soil erosion,
maintaining soil health, and supporting agriculture and water cycles.
Timber
“Timber” found in or brought from a forest reserve, is listed as ”forest
produce” under Section 39 of the Forests Act (Cap 157). Under the same
section, “timber” means timber, either float or stranded, bearing no marks of
ownership, or timber obviously out of control. Section 18 of the Trees and
Timber Act, 1974 (NRCD 273) also defines timber as including “trees when
they have fallen or have been felled, and the wood, whether it has been cut
up or fashioned or hollowed out for a purpose or not.”

Timber is a major economic resource, providing materials for construction,

furniture, and other industries. Sustainable timber harvesting supports local
economies and generates employment.

Forest management practices ensure that timber is harvested sustainably

and focus on promoting value-added timber products, enhancing economic
benefits while reducing the pressure on forests.
Deforestation
Forest Degradation
UN Food and Agriculture Organization (FAO):
“Changes within the forest which negatively affect the structure or function of
the stand or site, and thereby lower the capacity to supply products and/or
services.”

Takes different forms, particularly in open forest formations, deriving mainly

from human activities such as overgrazing, overexploitation (for fuelwood or
timber), repeated fires, or due to attacks by insects, diseases, plant parasites
or other natural sources such as cyclones. In most cases, degradation does
not show as a decrease in the area of woody vegetation but rather as a
gradual reduction of biomass, changes in species composition and soil
degradation. Unsustainable logging practices can contribute to degradation if
the extraction of mature trees is not accompanied with their regeneration or if
the use of heavy machinery causes soil compaction or loss of productive
forest area
Forest Degradation
UN Convention on Biological Diversity (CBD)
“A degraded forest is a secondary forest that has lost, through human
activities, the structure, function, species composition or productivity normally
associated with a natural forest type expected on that site. Hence, a
degraded forest delivers a reduced supply of goods and services from the
given site and maintains only limited biological diversity. Biological diversity of
degraded forest includes many non-tree components, which may dominate in
the under-canopy vegetation.”
Deforestation
United Nations Framework Convention on Climate Change (UNFCCC)
Decision 11/CP.7 on Land use
“…the direct human-induced conversion of forested land to non-forested land.”

UN Food and Agriculture Organization (FAO)

“The conversion of forest to another land use or the long-term reduction of the
tree canopy cover below the minimum 10 percent threshold.

Explanatory note:
1. Deforestation implies the long-term or permanent loss of forest cover and
implies transformation into another land use. Such a loss can only be caused
and maintained by a continued human-induced or natural perturbation.

2. Deforestation includes areas of forest converted to agriculture, pasture, water

reservoirs and urban areas.
Deforestation
1. The term specifically excludes areas where the trees have been removed as
a result of harvesting or logging, and where the forest is expected to
regenerate naturally or with the aid of silvicultural measures. Unless logging
is followed by the clearing of the remaining logged-over forest for the
introduction of alternative land uses, or the maintenance of the clearings
through continued disturbance, forests commonly regenerate, although often
to a different, secondary condition. In areas of shifting agriculture, forest,
forest fallow and agricultural lands appear in a dynamic pattern where
deforestation and the return of forest occur frequently in small patches. To
simplify reporting of such areas, the net change over a larger area is typically
used.

2. Deforestation also includes areas where, for example, the impact of

disturbance, overutilization or changing environmental conditions affects the
forest to an extent that it cannot sustain a tree cover above the 10 percent
threshold ”
Forest Degradation vs. Deforestation
Deforestation, from the definitions discussed can be generally understood to
be the complete removal of forest cover, typically for conversion to non-forest
uses like agriculture, urban development, or mining. This process results in
the permanent loss of forested areas, disrupting ecosystems, decreasing
biodiversity, and contributing significantly to climate change through the
release of stored carbon.

Forest degradation, on the other hand, can be understood to be

the the gradual decline in the quality and functioning of a forest. This can
occur due to factors like selective logging, pollution, or disease, which reduce
the forest’s capacity to provide ecosystem services, support wildlife, and
sequester carbon. Unlike deforestation, degraded forests still retain some
tree cover, but their ecological integrity and biodiversity are compromised.
Causes of Deforestation in Ghana
Illegal Logging: Illegal logging is a major contributor to deforestation. Tre
es are cut down without proper authorization for commercial purposes,
including timber and charcoal production.

Weak Enforcement: Despite regulations, enforcement of laws against ille

gal
logging is often weak. Corruption and lack of resources hinder effective
monitoring and control.

High Demand: The demand for timber, especially in urban areas, drives
illegal logging activities. This demand is often met through unsustainable
practices.

Mining and Agriculture: Expansion of mining and agricultural activities,

particularly cocoa farming, also leads to deforestation. Forests are cleared
Impacts of Deforestation
Biodiversity Loss: Deforestation destroys habitats, leading to the extincti
on of plant and animal species. This loss of biodiversity affects ecosystem
balance and resilience.
Climate Change: Trees act as carbon sinks, absorbing carbon dioxide.
Deforestation reduces this capacity, contributing to climate change and
rising temperatures.
Soil Erosion: Forest cover protects soil from erosion. Without trees, soil
erosion increases, reducing fertility and agricultural productivity.
Water Scarcity: Forests regulate water cycles. Deforestation disrupts the
se patterns, leading to irregular rainfall, increased flood risk, and potential
water scarcity.
Livelihoods at Risk: Many communities depend on forests for resources
and
income. Deforestation threatens these livelihoods, affecting food security
and traditional practices
Solutions & Policy Directions
Sustainable Agricultural Practices: Encouraging farmers to adopt
sustainable practices like agroforestry, which integrates trees into farming
systems, can reduce the need to clear forests for agriculture.

Forest Conservation Policies: Implementing and enforcing policies aimed at

conserving forests, such as establishing forest reserves and national parks,
helps protect forested areas from encroachment and illegal activities.

Alternative Energy Sources: Promoting the use of alternative energy

sources, such as solar and biogas, can reduce the demand for fuelwood,
which is a major driver of deforestation.

Community Involvement: Engaging local communities in conservation

efforts and providing them with alternative livelihoods ensures that they
benefit from forest protection and contribute to sustainable practices.
Solutions & Policy Directions
Education and Awareness: Raising awareness about the importance of
forests and sustainable practices can help change behaviors and reduce
deforestation.

Stronger Law Enforcement: Implementing stricter measures against illeg

al logging and improving governance and transparency are essential to
combat deforestation.

International Cooperation: Collaborating with international partners to

secure funding and support for forest conservation efforts can enhance th
e effectiveness of local initiatives.
Reforestation & Afforestation
Afforestation refers to the “establishment of forest plantations on land that,
until then, was not classified as forest. Implies a transformation from non-
forest to forest.” This is to be distinguished from the phenomenon of
expansion of forests through natural succession on land that, until then, was
under another land use (e.g. forest succession on land previously used for
agriculture). Both processes imply a transformation from non-forest to forest,
but one requires a deliberate action as opposed to a natural occurrence.

Reforestation is the “establishment of forest plantations on temporarily

unstocked lands that are considered as forest.” With reforestation, there is
artificial establishment of forest on lands which carried forest before. It is to
be distinguished from the natural succession of forest on temporarily
unstocked lands that are considered as forest.
Reforestation & Afforestation
Afforestation and reforestation are important policies in forest management for:
Biodiversity Conservation: By creating new forests and restoring degraded
ones, these practices support the conservation of biodiversity, providing
habitats for a wide variety of plant and animal species.
Carbon Sequestration: Trees absorb carbon dioxide from the atmosphere,
helping to mitigate climate change by reducing greenhouse gas
concentrations.
Soil Health: Forests help prevent soil erosion, maintain soil fertility, and
support the water cycle, which is vital for agriculture and maintaining
ecosystems.
Water Management: Forests play a key role in water regulation, including
groundwater recharge, reducing the risk of floods and maintaining clean
water supplies.
Economic Benefits: Sustainable forest management, including afforestation
and
reforestation can create economic opportunities such as timber production
Policy
Directions
Sustainable Management
The primary goal is to ensure that timber resources are managed sustainably to
prevent deforestation and degradation. These practices include:
Selective Logging: Only selected trees of a certain size and species are
harvested, allowing younger trees and different species to thrive.
Reforestation and Afforestation
Agroforestry Practices: Integrating trees into agricultural landscapes.
Establishing and maintaining Forest Reserves and Protected Areas
Coppice Management: Trees are cut back to ground level periodically to
stimulate new growth from the stumps or roots. Trees regenerate in
multiple shoots, allowing for multiple harvests over the years.
Controlled Timber Production: Implementing controlled harvesting
plans to ensure that logging rates do not exceed the forest's natural
regeneration capacity.
Enrichment Planting: Planting high-value or native tree species in
degraded forest areas to enhance biodiversity and timber quality.
Voluntary Partnership Agreement
(VPA)
Ghana has a Voluntary Partnership Agreement (VPA) with the European
Union under the Forest Law Enforcement, Governance and Trade
(FLEGT) Action Plan. Objects of the VPA are:
Provide a legal framework and compliance monitoring system aimed at
ensuring that all timber products imports into the EU from Ghana have been
legally acquired, harvested, transported and exported.
Creation of Timber Validation Department (TVD)
Provide a basis for dialogue and co-operation between the parties to facilitate
and promote the full implementation of this policy and enhance forest law
enforcement and governance.
Provide opportunity for Ghana to secure its market share in the EU which is
becoming increasingly concerned with legal origin of imported timber.
VPA support Ghana’s forestry sector reform program, and strengthens its
regulatory capacity in order to reduce revenue loss and environmental
degradation that results from illegal logging.
Other Policy Directions
International Tropical Timber Organization (ITTO) Guidelines: The ITTO
promotes sustainable management, use, and conservation of tropical forests.
It provides guidelines for the restoration, management, and rehabilitation of
degraded and secondary tropical forests. These guidelines help member
countries implement sustainable forest management practices.
Forest Stewardship Council (FSC) Certification: The FSC certification
ensures that forests are managed according to strict environmental, social,
and economic standards. FSC-certified timber products come from well-
managed forests that provide environmental, social, and economic benefits.
Global Legal and Sustainable Timber Forum (GLSTF): The GLSTF brings
together governments, enterprises, international organizations, and research
institutions to promote legal and sustainable forest management. It issues
actions to ensure the stability of the timber sector based on legal and
sustainable forest management and supply chains.
Other Policy Directions
Legal Compliance: Enforcing laws and regulations to prevent illegal
logging and timber trade is crucial. The Timber Resource Management
and Legality Licensing Regulations, 2017 (L.I. 2254) outlines the legal
framework for timber operations, including the requirement for legality
licensing and compliance with the Timber Resources Management Act,
1997 (Act 547).
Community Forestry: Promoting community forestry management
involves local communities in the management and benefits of forest
resources. This approach aims to empower communities, improve
livelihoods, and ensure that forest management practices are locally
relevant and sustainable.
Economic Incentives: Providing incentives for investors in the forestry
sector is essential for promoting sustainable timber production. These
incentives include tax benefits import duty exemptions and other financial
Other Policy Directions
Environmental Protection: Implementing measures to protect wildlife
and biodiversity within forest areas is a key policy direction. This includes
establishing protected areas, promoting reforestation, and ensuring that
timber extraction does not harm critical habitats and species.
Transparency and Accountability: These principles involve public
disclosure of forest management information, stakeholder engagement,
and regular monitoring and reporting of forest activities. Legal
enforcement, audits, inspections, and performance evaluations ensure
compliance with standards and regulations.
Rooted in the Ground: Reforming Ghana’s Forest Laws: This initiative
aims to reform Ghana's forest laws to ensure sustainable forest
management and equitable distribution of benefits from forest resources.
It includes recommendations for improving legal frameworks, enhancing
community involvement, and promoting sustainable practices.
Governing
Institutions
Timber Industry Development Division
(TIDD) of the Forestry Commission
The primary mission of the TIDD is to promote efficiency in product quality
assurance and value addition in the timber industry, ensuring sustainable
practices. Some of its key functions and responsibilities are:
Export Promotion and Market Information: TIDD is responsible for
promoting the export of timber and wood products and disseminating
market information to inform industry stakeholders, government, and the
public about pricing, trade, and product trends.
Pre-Shipment Inspection and Certification: TIDD conducts pre-
shipment inspections and examinations of wood products to ensure
compliance with quality standards and
issues export permits for timber and wood products.
Guiding Price Systems: TIDD establishes guiding price systems for vetti
ng
export contracts of wood products ensuring fair pricing and transparency
Timber Industry Development Division
(TIDD) of the Forestry Commission
Contract Verification and Timber Grading: TIDD verifies contracts relat
ed
to timber exports and trains and certifies timber graders to maintain quality
control standards.
Tracking Log Movements: TIDD tracks the movement of logs from forest
gates after the issuance of conveyance certificates to ensure legal and
sustainable logging practices.
Technical Training and Support: TIDD provides management and techn
ical
training for the wood industry, supporting the certification and registration
of authorized timber graders and establishing levels of certification for
such graders.
Local Market Monitoring: TIDD monitors supply of lumber to local
Timber Validation Department (TVD) of the
Forestry Commission
The Timber Validation Department of the Forestry Commission was establish
ed as part of the implementation of the Voluntary Partnership Agreement
(VPA) between Ghana and the European Union. The VPA aims to ensure
that all timber and timber products destined for the EU market comply with
the laws of Ghana,
promoting legal timber trade and improving forest governance.

The Timber Validation Department was created to verify the legal origins of
timber products, oversee the Ghana Wood Tracking System (GWTS), and iss
ue
FLEGT licenses for timber exports to the EU. This department plays a crucial
role in ensuring transparency legality and sustainability in Ghana's timber
Timber Validation Department (TVD) of the
Forestry Commission
Its key functions and responsibilities include:

Verification of Legal Timber: TVD verifies the legal origins of timber

products harvested in Ghana to ensure they comply with national and
international laws before export.

Ghana Wood Tracking System (GWTS): TVD oversees the implementat

ion and operation of the GWTS, which tracks timber from the forest to the
point of export, ensuring transparency and accuracy in data collection.

FLEGT Licensing: TVD issues FLEGT (Forest Law Enforcement, Govern

ance and Trade) licenses for timber products destined for the European U
nion, confirming that the timber is legally harvested and traded.
Timber Validation Department (TVD) of the
Forestry Commission
Training and Capacity Building: TVD conducts training sessions for staff
and stakeholders in the timber industry to enhance their understanding of
legal requirements and the use of the GWTS.

Multistakeholder Oversight: TVD works with a Timber Validation

Committee, which includes representatives from government, the private
sector, and civil society, to oversee its activities and ensure accountability.

Internal Auditing: TVD acts as an internal auditor within the Forestry

Commission, monitoring the operations of actors in the forestry sector to
prevent illegal activities and promote sustainable practices.
Laws &
Regulations
Laws & Regulations
Constitutional
1992 Constitution – Article 296
Statutory
Forestry Commission Act, 1999 (Act 571)
Forest Act, 1972 (Cap 157)
Forest Protection Act, 1974, (NRDC 243) as amended
Timber Resource Management Act, 1997 (Act 547) as amended
Trees & Timber Act, 1974 (NRCD 273)
Economic Plants Protection Act, 1979 (AFRCD 47)
Forest Plantation Development Fund Act, 2000 (Act 583) as amended
Subsidiary
Timber Resource Management and Legality Licensing Regulations, 20
17 (LI 2254)
Logging Manual
Forest Protection Act, 1974, (NRDC 243)
as amended
NRCD 243 outlines various forest offences, and establishes penalties for
these offences, including fines and imprisonment. The Act grants forest
officers the authority to arrest and seize illegal timber, and it mandates the
forfeiture and disposal of confiscated items. Additionally, the Act requires the
Forestry Commission to maintain boundary marks and ensures that only
properly marked logs can be exported.

The Act has been amended to strengthen its enforcement mechanisms and t
o provide greater protection for forest resources. These amendments include
stricter penalties for repeat offenders, introduction of joint liability in the
commitment and prosecution of forest offences and additional
responsibilities for forest officers to prevent and address illegal activities.
Forest Offences - Section 1 - NRCD 243
Anyone who, without written permission from the competent forest authority,
does any of the following in a Forest Reserve:

Damages or harms any tree or timber.

Farms or builds.
Sets or causes a fire without preventing its spread.
Makes a fire against orders of the Forestry Commission.
Damages trees or timber through negligence by felling a tree.
Blocks a river, stream, canal, or creek.
Hunts, fishes, poisons water, or sets traps.
Processes, collects, moves, or removes any forest products.
Grazes cattle or allows cattle to trespass.

Shall be guilty of an offence.

Offences relating to marks – Section 2 –
NRCD 243
Anyone who:

Fraudulently uses or counterfeits marks used by Forest Officers to

indicate ownership of timber or trees.
Alters, defaces, or removes marks on trees or timber without written
permission from a Forest Officer.
Changes, moves, destroys, or defaces any boundary mark of a Forest
Reserve.

Shall be guilty of an offence.

Other Relevant Provisions under NRCD 243
Persistent Offenders to be Banned – Section 3: Anyone who has been
convicted three times under this law is banned from owning, operating, or
participating in any timber business or concession. All permits and property
marks they hold will be forfeited. If someone violates this ban, they can be
sentenced to up to ten years in prison without the option of a fine.

Arrest and Seizure – Section 5: A Forest Officer can arrest, without

a warrant, anyone suspected of committing an offence under this law,
especially if the
person fails to provide a valid name and address or might run away. The
arrested person must be brought before a Magistrate within 48 hours if not
released sooner. If there is reason to believe an offence has been committed,
a Forest Officer can seize any related forest produce, instruments, vehicles,
or other items used in the offence
Trees & Timber Act, 1974 (NRCD 273)
NRCD 273 provides for the registration of property marks and locality marks,
which are used to identify and track timber from its source to its final destination.
It mandates that anyone wishing to fell trees for export or conversion must
register a property mark and ensure that all logs and stumps
are properly marked. ”Property mark" means a mark placed on trees or timber
to denote that after the purchase money due has been paid the registered holder
of the property mark has or will have a right in the trees or timber. The Act also
establishes procedures for the export of logs, including the imposition of export
levies on both unprocessed and processed timber. Failure to comply results in
criminal liability.

Additionally, the Act sets out regulations for protected areas, prohibiting activities
such as farming and illegal logging within these zones. It outlines penalties for
offences, including fines and imprisonment, and grants Forest Officers the
authority to arrest offenders and seize illegal timber and related items
Offences in Protected Areas – Section 14
– NRCD 273
Anyone who, without written permission from the Minister and not exercising
concession rights, does the following in a protected area:

Damages a tree or timber in any way.

Farms or builds.

Sets or causes a fire without preventing its spread.

Commits an offence and can be fined up to 1000 penalty units or

imprisoned for up to 5 years, or both.
Economic Plants Protection Act, 1979
(AFRCD 47)
The Economic Plants Protection Act, 1979 (AFRCD 47) is designed to protect
economically valuable plants in Ghana. The Act prohibits the destruction of
specified plants without written authority from the Commissioner, except for
horticultural purposes. It mandates compensation for the destruction of these
plants, with the Commissioner setting fixed values based on the age of the
plants.

The Act also prohibits granting felling rights for timber trees in farms where
specified plants are cultivated, ensuring these plants are protected. Penalties
for violations include fines and imprisonment.

In the Schedule to the Act, Cocoa is mentioned as the specified plant.

Timber Resource Management Act, 1997
(Act 547) as amended
The Act mandates that no person can harvest timber from any land without
holding timber rights in the form of a timber utilization contract. This ensures
that timber harvesting is regulated and sustainable. The Act also outlines the
qualifications for obtaining timber utilization contracts, requiring applicants to
be incorporated bodies and to submit detailed plans for sustainable
management, environmental impact assessments, and financial capabilities.

Additionally, the Act establishes the Timber Rights Evaluation Committee,

which evaluates applications for timber rights and ensures that the terms of th
e contracts align with sustainable practices. The Act provides for the
management of timber operations, payment of royalties and fees, and the
suspension or termination of timber utilization contracts. It also sets penalties
for offences and provides for the transfer of timber rights.
Investor Rights - Act 547
Tax Benefits and Incentives for Investors (Section 14A):
Investors in forestry or
wildlife enterprises are entitled to benefits and incentives under the Internal
Revenue Act, 2000 and Customs Harmonised Commodity and Tariff Code.
Exemption of Non-Zero-Rated Items (Section 14B): Investors can apply for
exemptions on import duties, VAT, or excise duties for non-zero-rated
machinery or equipment.
Incentives for Special Investment (Section 14C):
The Minister can negotiate
additional incentives for strategic or major investments in consultation with
other state agencies.
Investment Guarantees (Section 14D): Investors are guaranteed the
transferability of dividends, loan payments, fees, and proceeds from the sale
or liquidation of their investment.
Guarantees Against Expropriation (Section 14E): Investors' operations
Investor Rights - Act 547
Dispute Settlement Procedures (Section 14F): Disputes between an
investor and the Government, if not successfully resolved through discussions,
can be submitted it to arbitration by the aggrieved party: following the rules of the
UN Commission on International Trade Law; for foreign investors, the framework
of any bilateral or multilateral agreement on investment protection, or; any other
agreed national or international dispute settlement method. If there is
disagreement on the method of dispute settlement, the investor’s choice prevails.
Immigration Quota (Section 14G): Investors are entitled to an immigrant quota
based on their paid-up capital, ranging from 1 to 4 persons. See Section 14G
Assistance to Investors (Section 14H): The Commission provides assistance
and acts as a liaison between investors and government authorities.
Personal Remittances (Section 14I): Expatriate personnel can make
remittances abroad, not exceeding their official wage.
Technology Transfer Agreement (Section 14J): Investors can enter into
technology transfer agreements, which must be registered with the Commission
and governed by relevant regulations.
Forest Plantation Development Fund Act,
2000 (Act 583) as amended
The Act created the Forest Plantation Development Fund, which provides
financial assistance for the establishment of forest plantations on suitable
lands. The fund is managed by the Forest Plantation Development Fund
Management Board, which oversees the allocation of resources and ensures
that the funds are used effectively.

The objectives of the fund also include supporting research and providing
technical advice for plantation forestry, promoting investment through
incentives, and ensuring sustainable timber production. The Act also allows
for tax rebates and other benefits for beneficiaries who comply with the
established criteria. The fund is financed through timber export levies, grants,
loans, and contributions from international organizations.
Timber Resource Management and Legalit
y Licensing Regulations, 2017 (LI 2254)
LI 2254 sets comprehensive rules for holding timber rights granted through
Timber Utilization Contracts (TUCs). The Forestry Commission identifies suitable
land for timber rights and oversees the competitive bidding process for large-
scale timber rights. The regulations also require Social Responsibility
Agreements between timber right holders and local communities to ensure
social and environmental responsibility. The Timber Rights Evaluation
Committee evaluates applications to ensure they meet sustainability criteria.

Additionally, the regulations emphasize legality licensing to ensure timber

products are legally harvested and traded. The Timber Validation Committee
oversees the verification and validation of timber licenses. The regulations
include provisions for the inspection and monitoring of timber operations to
ensure compliance with contract terms. Penalties for offences such as illegal
logging are outlined, including fines and imprisonment.
Offences Under LI 2254
Obstruction of Official Inspector of the Commission
Exporting or Distribution of timber product of domestic sale without a license
Transfer of legality license
Failure to return lost or stolen license upon retrieval
Obstruction of authorised person conducting inspection or investigation
Mingling of timber
Possession of unmarked or undocumented timber product
False Calculation of stumpage fees or assisting a contractor to under-declare
timber volumes for stumpage fee calculation by officer
Declaration of false measurement by officer
Moving timber before measurement and calculation of stumpage fee
Transfer of timber without a conveyance certificate
Use of unregistered chainsaw for felling
Failure of a chainsaw owner to register the chainsaw
Offences Under LI 2254
Use of chainsaw to convert timber into lumber for sale; selling converted
product
Failure to mark tree stump after felling
Landowner permitting use of unregistered chainsaw to fell trees on land
Felling restricted species without restricted species permit
Logging Manual
Ghana's logging manual provides comprehensive guidelines for logging and
timber harvesting within forest reserves and other areas. It covers planning,
operational standards, timber harvesting schedules, stock surveys, and yield
allocation. The manual ensures that logging activities are conducted
sustainably and in compliance with legal and environmental standards,
aiming to balance timber production with forest conservation.

The manual also includes procedures for logging outside forest reserves,
emphasizing the importance of sustainable practices and the protection of
forest resources. It serves as a crucial tool for the Forest Service Division
staff, helping them execute their supervisory roles effectively and ensuring
that timber production areas are managed responsibly.
Licensing
Regimes
Licensing Regimes
The following are licensing regimes under the Timber Resource Management
and Legality Licensing Regulations, 2017 (LI 2254):
Large-Scale Timber Rights (Regulation 12 – 17)

Small-Scale Timber Rights (Regulation 18 – 21)

Timber Utilization Permit (Regulation 27)

Salvage Permit (Regulation 29)

Legality License (Regulation 31, 38 – 45)

Conveyance Certificate (Regulation 62)

Restricted Species Permit (Regulation 74)

Timber Utilization Contracts under Act 547
A Timber Utilization Contract (TUC) is a legal agreement that grants the
holder the right to harvest timber (either small or large-scale) from a specified
area. The contract ensures that timber extraction is conducted legally,
sustainably, and in accordance with the regulations set forth by the Forestry
Commission.

The contract includes conditions to ensure sustainable forest management

practices are followed. TUCs for Forest Reserves typically have a term of 40
years, while those for other lands have a term of 5 years. The allocation of
TUCs is based on a competitive public bidding process, ensuring
transparency and fairness. The holder of a TUC must pay royalties, fees, and
other charges as stipulated in the contract. The contract requires an
assessment of the environmental impact and a plan to mitigate any negative
effects.
Land Subject to Timber Rights - Act 547
Timber rights can be granted under a timber utilization contract for:
Lands that previously had timber rights, which have now expired and
are ready for re-allocation.
Unallocated public or stool lands suitable for timber operations.
Alienation holdings - any land acquired by a person through an outright
sale of the land by the owner

Timber rights cannot be granted, without written consent of owners,

for:
Land subject to alienation holding.
Land with farms.

Timber rights also cannot be granted for:

Land with private forest plantations.
Land with timber grown or owned by individuals or groups
Duration, Limits & Disqualification - Act 547
Timber rights cannot be granted for more than 40 years, unless specified
otherwise. The area of granted timber rights cannot exceed 125 km² per
grant, unless specified otherwise. The area limits for different scale operators
are:
Small scale - 200 km²
Medium scale - 300 km²
Large scale - 500 km²

Operators with the maximum area holdings cannot receive additional

timber rights. The Minister can approve timber rights exceeding these
limits with Parliament's resolution.

If a timber rights holder has been convicted of or admits to 2 illegal

transactions or operations in the industry within the 2 years before the
application their application for further timber rights will not be granted
Terms and Conditions of Timber Utilization Contract
Under Section 8 of Act 547 and Regulation 22 of LI 2254, timber utilization
contracts will include terms such as:
the size and limits of the area,
operation period, and
undertakings by the timber right holder to
pay one-off timber rights fees;
maintain a Performance Bond;
implement approved activities;
execute a reforestation plan during the period of the contract;
provide information for monitoring; offer social facilities;
maintain necessary insurance coverage, and;
adhere to any prescriptions laid down by the Commission
Terms and Conditions of Timber Utilization Contract
acknowledge periodic review and audit,
provisions for prompt payment of rents, royalties, compensation and such
management and service charges prescribed by law
annual rent payable to the landlord
specify grounds for suspension or termination, and
require a professional forester as a manager.
the submission to the Commission of a contract area plan every five years
undertaking by Minister to keep boundaries intact but he may reduce
them for national interest with a corresponding fee reduction.
Under Section 9 of Act 547, TUCs entered into by the Minister shall be
ratified by parliament. Parliament may upon recommendation by the
Commission, authorise any other government agency to approve the
TUCs.
Inventory for Large-Scale Timber
Rights
The Forestry Commission will identify lands suitable for large-scale timber
utilisation contracts. The Chief Executive of the Commission will prepare forest
inventories and direct District Forest Officers to report on timber in various lands.
These inventories will be created in consultation with District Chief Executives.

If the inventories justify timber rights, the Chief Executive will order the District
Forest Officer to make detailed inspections of the land to determine timber rights
suitability, timber quality, quantity, and value. A report on the inspection is drawn
up and submitted to the Chief Executive. If the Chief Executive approves the
land for timber rights, the District Chief Executive is notified, and the District
Forest Officer informs the local people by posting the proposal on notice boards
of the District Forest Office and District Assembly. If there isn’t enough timber for
long-term operations, the Chief Executive may recommend small-scale timber
rights or replacement allocations. These directives don't apply to private or stool
land unless owners are informed
Application for Large-Scale Timber Rights
Large-scale timber rights are allocated through a competitive process, consisting
of pre-qualification and bidding stages. Only pre-qualified applicants can apply
for a bid.

Applicants must obtain a pre-qualification form from the Commission and pay a
fee. They submit the completed form to the Chief Executive, who forwards it to
the Timber Rights Evaluation Committee. Applicants must provide together with
the application information such as:
Proof of ownership/membership in a registered forestry company or
partnership.
Evidence of value-added processing, if applicable.
A statement of all timber rights and logging permits held.
Qualifications and competence of timber operations staff.
Proof of membership in recognized timber trade association, if applicable.
A labor certificate, etc.
Evaluation for Large-Scale Timber Rights
The Evaluation Committee will evaluate applications for large-scale timber
rights based on the completeness and substance of the information submitte
d. They may also verify past compliance with timber industry laws.

Applications meeting the requirements will be stamped as "PRE-QUALIFIED”

and those that don't will be stamped as "DISQUALIFIED." Applicants will be
notified of the decision and reasons within 5 days.

Disqualified applicants can fix their shortcomings and reapply within 14 days.
However, the Committee may bar re-application for applicants with a history
of gross violations.

A list of pre-qualified companies will be posted on the Commission’s website

and provided upon request.
Bidding for Large-Scale Timber Rights
When the Evaluation Committee decides to grant large-scale timber rights in
an area, they will publish an advertisement in the Lands Concession Bulletin,
on the Forestry Commission website, and in at least 2 national newspapers.
Pre-qualified applicants are invited to bid for the timber rights in specified
areas.

For each proposed area, the Chief Executive will specify a timber harvest
schedule, the required Performance Bond, the minimum Reserve Bid, any
management requirements, the bid opening time and place, and other
relevant information.

Pre-qualified applicants can apply for large-scale timber rights as long as it

doesn't exceed their operational limit. They must purchase bidding forms, pay
a fee, and submit their application at the designated time and place.
Evaluation of Bidding Applications
The Evaluation Committee will meet at the specified time and place to review
applications in the presence of the committee members, applicants or their
representatives, and any interested public members. Timber rights
will be awarded to the applicant with the best technical and financial
capabilities and the highest fee offer. If the highest bid is lower than the Reserve Bid,
the area will go to the bidder who agrees to match the Reserve Bid. If there
are equal highest bids, the rights will go to the applicant with the best technical and
financial capabilities.

The Minister will then issue a Notice of Grant of timber rights, specifying activities to
be completed by the winner, such as posting a Performance Bond, completing a
Social Responsibility Agreement with local communities, finalizing planning
activities, and paying a one-off timber rights fee. The winner must also assist local
communities with amenities or services. If the winner fails to meet the requirements,
the Minister will nullify the grant and the area may be re-advertised or withdrawn
Inventory for Small-Scale Timber
Rights
If the Chief Executive finds that certain areas within production forest reserve
s or public land do not have enough timber for long-term operations but are
ready for harvesting, or if off-reserve areas have low tree stocking, they may
recommend small-scale timber rights. These recommendations
have additional criteria:

For forest reserves:

Harvesting time should not exceed 2 years.
The area should not exceed 6 km² or five compartments.
Forest reserves should not be fragmented for small-scale rights.
For off-reserve areas:
Harvesting time should not exceed 2 years.
The area should not exceed 6 km².
Consent from rights holders is required.
Qualification for Small-Scale Timber Rights
Small-scale timber rights are allocated through a competitive process, including
qualification, and offer selection in a single process. Applicants must provide
information such as:
Proof of ownership/membership in a registered forestry company or
partnership.
Evidence of full payment of forest levies, if applicable.
Tax and social security clearance certificates.
A statement of current timber rights and logging permits held.
Qualifications and competence of timber operations staff.
Proof of membership in a recognized timber trade association, if
applicable.
A labor certificate.
The Evaluation Committee will disqualify applicants with 2 or more recor
ded breaches of forest laws, including illegal logging, or those indebted t
o the Commission.
Selection Criteria
Small-scale timber rights are awarded based on:

The applicant's technical and financial capabilities, and compliance

with regulations.

A proposal for a Social Responsibility Agreement with local

communities.

A proposal for a one-

time timber rights fee based on the area's tree stocking.

The winner must assist local communities with amenities, services, or

benefits worth 5% of the value of the harvested timber's stumpage fee.
Selection
The Evaluation Committee will publish advertisements on the Forestry
Commission website and in at least 2 national newspapers, inviting applications
for small-scale timber rights in specified areas. A timber harvest schedule,
Performance Bond, timber rights fee, management requirements, offer opening
time and place, and other relevant information will be specified.

Applicants must purchase and complete the application form, pay a fee, and
submit their offer. Small-scale timber rights will be awarded to the qualified
applicant with the highest offer. If there are equal highest offers, the winner will
be decided by drawing lots. Just as for large-scale rights, the successful
applicant must complete specified activities, including posting a Performance
Bond, finalizing a Social Responsibility Agreement, completing
planning activities, and paying the one-off timber rights fee. They must also
assist local communities with amenities or services. If the successful applicant
fails to comply, the Minister will nullify the grant, and the area may be re-
advertised or withdrawn
Timber Utilization Permit
A timber utilization permit is a legal authorization granted to individuals or
companies to harvest timber from a specified area. The permit is typically issued
for small-scale timber harvesting, often for social or community purposes and is
limited to a defined number of trees. Timber harvested under a TUP cannot be
sold or exported.

The Chief Executive can issue a timber utilization permit to a District Assembly,
Town Committee, rural community group, or NGO, based on conditions set by
the Commission. This permit is only for harvesting a specified number of trees in
areas not under a timber utilization contract. Timber harvested or converted to
lumber under this permit must be used for social or community purposes and
cannot be sold or exchanged.

Also, when a timber contractor ends operations, the Commission may dispose
of any leftover timber or logs as raw wood material for the local inhabitants.
Salvage Permits
A salvage permit is a legal authorization granted to individuals or companies
to recover and utilize timber that has been abandoned, left behind, or
deemed waste from previous logging operations. This permit ensures that the
salvaged timber is legally harvested and contributes to reducing waste and
promoting sustainable forest management.

The Chief Executive can issue a permit for salvaging trees from land bein
g
developed, such as for road construction, settlement expansion, or farmin
g, with Commission approval.
The Commission will provide a field inspection report to confirm the
development, need for salvage, and quantity of trees affected. Permits
won’t be issued for land already under a timber utilization contract.
Salvage permit holders must negotiate a social responsibility agreement
with affected communities valued at 5% of the stumpage fee
Legality License
Scope: Legality licensing applies to timber products that are:
Harvested within the country.
Imported into the country.
Destined for distribution and sale on the domestic market.
Destined for export from the country.

Anyone who wants to export timber products or sell them domestically

must apply in writing to the Commission in the form the Commission
determines.
Applications can cover:
Shipment of timber products for export.
Consignment of harvested timber products for domestic sale.
The application must include the required documents.
Applicants must pay an administrative and processing fee as specified by
the Commission
Conditions for Legality License
A license will only be granted if:

The timber product is legally produced and destined for export or

domestic sale.

The timber product for export does not include imported timber that is
banned for export or produced illegally in the third country.

A timber product is legally produced if it passes the wood tracking syst

em and meets the standards in the Third Schedule.

The Commission may ask the applicant to meet other conditions or pro
vide additional documents or information if needed.
Legality Standards under the Third
Schedule
A product containing wood sourced from Ghana can be licensed for sale within
or for export from Ghana if:
It has a felling permit:
The timber is from prescribed sources with consent from owners.
The logger had a valid Timber Utilisation Contract or Salvaging Permit.
The logger complied with forest operation standards and procedures.
The logger was granted replacement timber rights.
It has a Certificate of Purchase (COP):
Issued by a court order for confiscated timber.
Sold by the Forestry Commission as per statutory procedures.
The wood was always transported according to prescribed standards.
The wood was processed according to the Factory Offices and Shops Act an
d Labour Act.
Vendors/exporters have valid licenses or permits.
No accrued fees, rents, or taxes are owed at the time of sale or export.
The logger complied fully with Social Responsibility Agreements.
Application & Grant of Legality License
The Commission will acknowledge receipt of a completed application within
3 days and forward a copy to the TIDD for verification and validation.
Verification and validation include confirming the legality of the timber
product as specified in the Third Schedule and following the Commission’s
criteria. If the applicant has paid the required fee and met the verification and
validation requirements, the division will submit a report with
recommendations to the Commission.

The Commission will decide on license applications within 7 days of receiving

the verification and validation report. If the timber product meets legal
standards and the process chain is verified, the Commission may grant a
license. The applicant will be informed in writing within 30 days.
The ”process chain of timber products” includes all steps from harvesting to
readiness for export or domestic sale and follows the wood tracking system.
Transferability & Duration of Legality
License
Licenses granted are not transferrable to other persons.

A license is valid from the date it is granted. The validity period is up to:

21 days for timber products destined for export.

30 days for timber products for domestic distribution or sale.

The Commission can extend the license period, but not beyond the sp
ecified limits. The Commission will confirm the extension
with a letter, noting the new expiry date. However,
using a license does not change any other legal
requirements for moving goods.

Once the license expires, it must be returned to the Commission by the

licensee or their representative
Conveyance Certificate
A conveyance certificate is a document that legally accompanies the
transportation of timber. Its primary purpose is to ensure that all timber being
transported has been legally harvested and that the movement of the timber
is authorized. It includes details such as the type, quantity, and origin of the
timber, as well as the destination and authorizes its transportation form the
harvesting site to the destination. It helps in tracking and verifying the legal
origin of the timber throughout the supply chain.

Timber cannot be transferred or moved from a forest area without a timber

conveyance certificate. A conveyance certificate will not be issued for lumber
produced by chainsaw. Timber contractors must apply in writing to the
Commission for a conveyance certificate.
Fiscal
Regimes
Stumpage Fee
Timber utilization contract holders must pay a stumpage fee, calculated as pe
r the Fifth Schedule of the Regulations. This fee represents royalties for
landowners and helps fund forest management and regulation.

The stumpage rate is determined by the Minister, the Commission, and the
Administrator of Stool Lands, based on market demand and timber inventory.
District Forest Officers must measure timber volume within 48 hours of felling
and issue a tree information form.

Timber cannot be moved until the stumpage fee is calculated and paid within
30 days of billing. Interest is charged on late payments. The District Forest
Officer provides stumpage fee bills to the Regional Stool Lands Officer, and
fees for stool land are collected and deposited in the relevant stool lands
account.
Social Responsibility Agreement
A social responsibility agreement is a formal arrangement between timber rights
holders and local communities in and around the contract area, aimed at
ensuring that the communities benefit from the timber operations and that their
rights and interests are protected. These include:
Community Benefits: The agreement typically includes provisions for
sharing a portion of the revenue generated from timber operations with the
local communities and can be used for community development projects,
such as building schools, health centres, etc. It is valued at 5% of the
stumpage fee.
Environmental Protection: It outlines measures to protect the environment
and ensure sustainable forest management practices.
Employment Opportunities: The agreement may include provisions for
providing employment and training opportunities to local community
members.
Conflict Resolution: It establishes mechanisms for resolving disputes
between the timber rights holders and the local communities
Timber Management Services
Timber management services refer to the various activities and services involved
in the sustainable management and utilization of timber resources. They include:

Inventory and Assessment

Field Inspections
Development & Implementation of Harvesting Plans
Facilitating Social Responsibility Agreements
Legality Licensing
Stock Survey

The Minister, in consultation with the Commission and the Administrator of

Stool Lands, will determine the fee for timber management services. The
Commission will distribute revenue from timber on private land according t
o an agreement between the Commission and the landowner.
Other Fiscal Regimes
Timber Rights Fees: Fees paid by companies or individuals to obtain
timber utilization contracts.
Value-Added Tax (VAT): A tax on the value added to timber products at
each stage of production and distribution.
Rent for Contract Areas: TUC holders must pay rent for
the contract area as specified in the Sixth Schedule. The rent is paid to
the Administrator of Stool Lands for stool lands and the landowner in other
cases.
Export Duties: Timber products exported from Ghana are be subject to
export duties. These levies contribute to the Forest Development Fund.
Permit and Licensing Fees: Fees paid for various permits and licenses
required for timber operations, including harvesting permits, transportation
permits, and environmental impact assessments.
Penalties and Fines: Penalties and fines are imposed on persons who
violate forestry regulations or engage in illegal logging activities
End of Lecture