Sample Supplier Compliance Agreement

[On company letterhead]

Wood Merchandise Compliance Agreement

1. General Legal Requirements

1.1 [Company] requires that [Seller] shall, in all activities, comply with all relevant local, national, and international laws, conventions, regulations and provisions applicable in the country of production. [Our Company]’s Wood Merchandise Requirements specified herein and [Seller]’s undertakings in respect thereof may go beyond the requirements of the local, national, and international laws, regulations, and provisions, and [Seller] undertakes to inform all concerned employees and sub-suppliers about the content of [Company]’s Wood Merchandise Compliance Agreement and ensure that they comply with these terms and conditions.

2. [Company]’s Wood Merchandise Requirements

2.1 [Seller] undertakes to identify the origin of all wood used by [Seller] for supply of goods to [Company], and communicate such information to [Company] upon request from [Company]. Such information shall contain information about from which country and local part of a country the wood originates, and may contain information about forest owner, logging company, concessionaire, latitude and longitude if such information is available.

2.2 [Seller] undertakes only to use wood produced in compliance with existing laws and accepted forest practice codes in the country and region where the wood originates. Illegally harvested wood is not acceptable.

2.3 Wood may not be taken from intact natural forests, old growth forests, or high conservation value forests unless the forest area is certified according to the principles and criteria established by the Forest Stewardship Council. Wood may not be taken from plantations established after 1994 and replacing intact natural forests. Intact natural forests, old growth forests, and high conservation value forests are herein defined as forest areas that are characterized by one or more of the following attributes:

  • Naturally rare forest types or ecosystems,
  • Forests that have not previously undergone any significant industrial activity, including road building and commercial logging.
  • Forests that are naturally regenerated and dominated by a range of native tree species,
  • Forests where tree size, age and spacing vary widely,
  • Forests that contain frequent accumulations of dead standing trees (snags) and fallen trees,
  • Forests containing trees that are large for the species and site combination,
  • Forests with multiple canopy layers and many openings, and the forest floor lush with ferns, bushes, mosses etc.
  • Forests that are ecologically critical for the protection of endangered species and biological diversity.

2.4 The wood may further not be taken from protected areas, i.e. nature reserves, national parks, and other areas with protected status.

2.5 Should the wood be procured through traders, brokers, distributors, auctions, or similar, [Seller] undertakes to procure a written acknowledgement of this Wood Merchandise Compliance Agreement for each link in the wood supply. [Seller] shall further ensure that [Company], or an authorized representative, may at any time audit any entity in the supply chain for verifying that this agreement is fulfilled.

3. Enforcement

3.1 [Seller] shall effectively ensure that all measures required herein are implemented accordingly including at any sub-suppliers.

3.2 [Seller] shall upon request from [Company] procure written information concerning the origin of the wood merchandise within 48 hours, and maintain a complete file concerning the origin of the wood used in [Company] products for at least 12 months.

3.3 If [Seller] does not implement and adhere to the requirements contained herein, this will constitute a material breach of this agreement, and [Company] may at it sole discretion and without any compensations to [Seller], immediately terminate all existing agreements with [Seller], and cancel any existing orders.

We hereby confirm that we have read, understood and agree to comply with the terms of this agreement.




Printed name and title of signatory