FAQs

The Malaysian Timber Certification Council (MTCC) is an independent organisation established in October 1998 to develop and operate the voluntary Malaysian Timber Certification Scheme (MTCS). Incorporated under the Companies Act 1965 as a company limited by guarantee, MTCC is governed by a Board of Trustees and started its operation in January 1999.

MTCC’s core functions include:

  • Leading the development, review, and maintenance of MTCS standards through multi-stakeholder processes.
  • Processing applications for MTCS notification of Certification Bodies (CBs) and issuing logo usage licences to certificate holders.
  • Implementing procedures for the investigation and resolution of disputes, complaints, and appeals related to MTCS.
  • Conducting programmes to promote and publicise MTCS domestically and internationally.
  • Coordinating with national, regional, and international bodies to facilitate cooperation and mutual recognition arrangements.
  • Liaising with the national accreditation body and other certification organisations on matters related to timber certification.

Timber certification is a process which results in a written statement (a certificate) proving the origin of wood raw material and its status following validation by an independent third party.

It is an important market-linked tool to encourage sustainable forest management which takes into consideration the economic, environmental and social well-being of the forests.

The goal is to link trade in forest/timber products to the sustainable management of the forest resource by providing buyers with the confidence that the manufactured/exported products are indeed sourced from sustainably managed forests.

The Malaysian Timber Certification Scheme (MTCS) is a voluntary scheme operated by MTCC.

The management certification system ensures forests are managed responsibly, sustainably, and in alignment with internationally accepted standards.

In addition to certifying forest management practices, MTCS includes Chain of Custody (COC) certification, which verifies the integrity of certified material throughout the value chain from forest to mill, processing, manufacturing, and export; thereby promoting sustainability and transparency in the timber supply chain. MTCS is endorsed by PEFC and widely recognized within the global PEFC network.

The scheme comprises two (2) main standards:

No. MTCC does not conduct certification audits. MTCC is the scheme owner and is responsible for the governance, oversight, and integrity of MTCS. Certification audits are conducted independently by accredited Certification Bodies.

MTCS certification, including Forest Management (FM) and Chain of Custody (COC), is valid for five (5) years.

Annual surveillance audits are conducted by accredited Certification Bodies to verify ongoing compliance with certification standards throughout the certification period.

The Programme for the Endorsement of Forest Certification (PEFC) is a global, non-profit, non-governmental organization that promotes sustainable forest management through independent third-party certification.

PEFC sets international benchmark requirements for forest management and chain of custody certification and endorses national forest certification systems that are developed through inclusive, multi-stakeholder processes and adapted to local conditions.

MTCC is the scheme owner for the Malaysian Timber Certification Scheme, which is endorsed by PEFC. MTCS was the first tropical forest certification scheme in the Asia-Pacific region to receive PEFC endorsement, which it has held since 2009.

Under PEFC endorsement, MTCC serves as the national governing body which operates under PEFC framework. PEFC endorses MTCS after assessing its alignment with PEFC international benchmark (PEFC ST 1003:2024 Sustainable Forest Management – Requirements) for standardization and accreditation.

Similar to PEFC’s relationship with ISO, IAF, and ISEAL, where PEFC aligns with ISO and IAF best-practice frameworks and references ISEAL codes. MTCC’s system is benchmarked to these same global principles.

This ensures that MTCS certification is credible, internationally recognized, and consistent with PEFC’s broader commitment to robust, consensus-based conformity assessment processes.

As PEFC certification is widely accepted in global markets, MTCS receives the same level of acceptance and credibility.

PEFC’s certification and endorsement system is supported by regular independent evaluations, five-year standard revisions, and positive assessments by bodies such as the Dutch TPAC and ASEAN RAI, which reinforce trust in MTCC.

As a result, MTCC-certified products are recognized and accepted globally under the PEFC certification framework.

MTCS receives mutual recognition with 48 PEFC-endorsed national and regional forest certification systems, covering 52 countries worldwide.

In addition, MTCS has been accepted under national timber procurement policies in countries such as Denmark, the United Kingdom, Germany, Finland, Belgium, Switzerland, France, and New Zealand, as well as under the Keurhout system of the Netherlands, as meeting sustainable timber requirements.

Read more here https://mtcc.com.my/recognition-of-mtcs/

The Malaysian Criteria and Indicators for Sustainable Forest Management (MC&I SFM) is Malaysia’s national standard for certifying sustainable forest management systems, ensuring forests are managed to balance environmental, social, and economic needs for present and future generations, aligning with international best practices under the Malaysian Timber Certification Scheme (MTCS).

There are nine (9) principles under MC&I SFM which are:

Principle 1: Compliance with law

Principle 2: Tenure and Use Rights and Responsibilities

Principle 3: Indigenous Peoples’ Rights

Principle 4: Community Relations and Workers’ Rights

Principle 5: Benefits from the Forest

Principle 6: Environmental Impact

Principle 7: Management Plan

Principle 8: Monitoring and Assessment

Principle 9: Maintenance of High Conservation Value Areas

Yes. The MC&I SFM standard undergoes a systematic revision every five (5) years through a formal process guided by the Standard Review Committee (SRC), whose members are selected in accordance with established MTCC procedures.

Prior to SRC meetings, MTCC conducts an early public consultation to gather input, concerns, and recommendations for improving the standards. The SRC then reviews the feedback, deliberates on proposed revisions, and develops the draft revised standard. This draft is subsequently released for a full public consultation for 60 days.

Once finalized, the revised standard must be approved by the MTCC Board of Trustees before being submitted to PEFC for endorsement.

The MC&I SFM standard aligns with global anti-deforestation and climate agendas by requiring sustainable forest management practices that prevent deforestation, protect forest carbon stocks, and promote biodiversity conservation.

Its criteria address legal compliance, forest protection, reduced-impact harvesting, high conservation value areas, and ecosystem services including carbon sequestration.

The standard also supports climate resilience through sustainable yield management, restoration measures, and community engagement.

MTCS, under PEFC endorsement, limits the conversion of natural forests or forest plantations to non-forest uses to a maximum of 5% of the certified Forest Management Unit (FMU). The requirement can be referred to in MTCS ST 1002:2025:

Natural Forest Only

Indicator 6.10.1 : The forest manager shall ensure that conversion from natural forest to forest plantations or non-forest use:

a) Shall not include any High Conservation Value areas; and 

b) Covers a very limited portion* of the FMU and shall enable clear, substantial, additional, secure, long term conservation, economic and social benefits across the FMU 

* “A limited portion” is defined as not more than 5% of the total area of the certified FMU

Forest Plantation

Indicator 6.10.2 : Conversion of forest plantation areas to non-forest land uses, shall entail a very limited portion (not more than 5%) of the forest plantation management unit, provide higher conservation, economic and social values as compared to its original use, in the overall context of the need for socio-economic development of the country.

MC&I SFM protects Indigenous Peoples’ rights by establishing mandatory requirements for recognizing customary land and use rights and ensuring compensation for traditional knowledge.

The standard, which standardizes certification for both natural forests and forest plantations in Malaysia, includes mechanisms for grievance resolution and the protection of areas essential to Indigenous People as well as has access to livelihood and Non-Timber Forest Products (NTFP) resources.

MC&I SFM requires it certificate holders to:

  • Provide safe working conditions and proper safety equipment.
  • Follow fair labor practices, including legal contracts and fair wages.
  • Prohibit child labor and forced labor.
  • Ensure workers have basic facilities like clean water, sanitation, and medical care.
  • Respect workers’ rights, including the right to raise concerns and join unions.

The environmental protections required under MC&I SFM includes:

  • Protection of Threatened, and Endangered (RTE) Species.
  • Maintenance, Monitoring and Protection of High Conservation Value (HCV) Management.
  • Implementation of Reduced Impact Logging (RIL).
  • Soil and Water Protection through buffer zones and steep slope restrictions.
  • Land Use and Conversion Constraints.

MC&I SFM addresses HCV through Principle 9, requiring identification, maintenance, and enhancement of these critical forest areas using national guidelines, involving stakeholders like local communities, and implementing robust management, monitoring, and reporting to protect biodiversity, ecosystem integrity, and cultural values.

MC&I SFM ensures sustainable harvesting by making sure that only the amount of timber that the forest can naturally regenerate is harvested.

This is done through Annual Allowable Cut (AAC), Reduced Impact Logging (RIL), tree tagging, using proper planning, protecting sensitive and high conservation value areas, monitoring forest regeneration and impacts.

The procedure for harvesting is developed by regional forestry departments (Forestry Department of Peninsular Malaysia, Forest Department of Sarawak and Sabah Forestry Department).

Certifying your forests management under MTCS SFM means that:

  • You can assure your customers that your forests are managed according to the best sustainable forest management standard.
  • You can prove to your customers that any products come from sustainably managed forests and can be traced throughout a responsible supply chain.
  • You can gain access to green markets and gain competitive edge at the global level as MTCS is mutually recognized by 48 other PEFC-endorsed schemes and accepted under the national timber procurement policies of many developed countries especially in Europe.

A natural forest refers to forest areas where many of the principal characteristics and key elements of native ecosystems such as complexity, structure and diversity are present. (Reference: MTCS ST 1002:2021 MC&I SFM)

MC&I SFM certifies natural forests by assessing whether forest management practices meet sustainability, legality, environmental protection, and social responsibility requirements.

Certification involves evaluating forest planning, biodiversity conservation, harvesting practices, protection of High Conservation Value areas, community rights, worker welfare, and compliance with all applicable legal and environmental standards.

Independent accredited Certification Bodies (CBs) conduct audits to verify conformity before certification is granted or maintained.

Forest plantation refers to a forest of introduced species, and in some cases native species, established through planting or seeding, mainly for production of wood or non-wood goods and services. (Reference: MTCS ST 1002:2021 MC&I SFM)

Yes. Forest plantations can be certified under MTCS if they comply with the requirements of the MC&I SFM standard. Eligibility depends on how the plantation was established.

Plantations established on previously non-forest or degraded land, and not through the conversion of natural forest after 31 December 2010, may pursue MTCS certification provided all MC&I SFM requirements are met.

However, plantations established by converting natural forest after 31 December 2010 are generally not eligible for certification under MC&I SFM.

Yes. Mixed-species plantations are encouraged if they:

  • Support ecological health, reduce disease risk, and maintain soil fertility.
  • Are covered in the management plan and monitoring procedures.

MTCC requires that forest management practices integrate economic, social, and environmental considerations and are implemented responsibly in accordance with the prescribed certification standards.

Compliance is verified through independent audits conducted by accredited Certification Bodies (CBs). The process to receive the certification as in Figure 1.

Figure 1: Assessment and Certification Process by Third Party

Applications for MTCS certification should be submitted directly to a Certification Body (CB) notified by MTCC.

Access the list of notified Certification Bodies: https://mtcc.com.my/certification-bodies/

No, as the scheme owner, MTCC is responsible for the governance and oversight of the MTCS, not for conducting certification audits.

To ensure the credibility, independence, and transparency of the scheme, MTCC appoints third-party Certification Bodies to assess and certify applicants.

However, MTCC has established procedures to receive and manage complaints or appeals from applicants, including cases where certification applications are rejected by a Certification Body.

No. MTCC does not prescribe a minimum or maximum area limit for certification. Forest areas of any size may be certified under MTCS, provided the forest manager is able to sustainably manage the forest, comply with all certification requirements, and bear the costs associated with achieving and maintaining certification.

The cost of certification audits is borne by the applicant. This may include companies, concessionaires, government agencies, NGOs, or any other entity that has entered into a contractual agreement with a Certification Body (CB) to undertake and pay for the audit.

The cost of operating under MTCS SFM varies depending on the scale of operations, management capacity, and financial resources of the applicant.

Costs may include forest management activities, compliance measures, monitoring, and maintaining certification requirements.

The cost of a Forest Management Certification (FMC) audit depends on the Certification Body (CB) engaged and factors such as the size of the certified area, forest type, audit scope, and audit duration.

You may reach out to CBs listed under MTCS: https://mtcc.com.my/certification-bodies/

MTCC does not administer tax incentives. However, certified entities are eligible for tax deductions under Section 34(6)(ma) of the Income Tax Act 1967.

The relevant application guidelines may be referred to in the following document: https://www.mtcc.com.my/wp-content/uploads/2024/05/MTCC-TAX-DEDUCTION.pdf

Non-Timber Forest Products (NTFPs) refer to any product or service other than timber that is produced in MTCS-certified forest management areas under the MC&I SFM standard.

Yes, NTFPs can be included under MTCS Forest Management certification under the Malaysian Criteria & Indicators for Sustainable Forest Management (MC&I SFM) and the Guidelines on the Application of Requirements for the Certification of Non-Timber Forest Products in MTCS ST 1002:2021 MC&I SFM.

These guidelines allow certification to expand beyond timber to products like bamboo, rattan, and honey, ensuring sustainable harvesting and benefit sharing for communities, though timber remains the primary focus of MTCS.

Forest managers must ensure that valid legal documents or consent letters are in place for the collection of NTFPs within the certified area.

NTFP collection and certification are only permitted within MTCS-certified forest management units.

The amount of NTFP harvested in the certified area shall be at a sustainable basis whereby harvesting or collection is below the natural growth or propagation rate of that particular NTFP harvested.

Yes. Environmental impact assessments must be conducted before forest operations, including NTFP harvesting, taking into account biodiversity, ecosystems, pollution, fire risk, and carbon stocks.

No. The forest manager shall ensure the protection of rare, threatened and endangered species, and their habitats are free from exploitation for commercial purposes, including their classification them as NTFP for extraction/harvesting and commercialization.

Yes, local communities and indigenous peoples are significantly involved in non-timber forest product (NTFP) management under the MC&I SFM. The standard and related guidelines explicitly incorporate their rights and traditional practices into the forest management framework. 

Group Forest Management Certification enables multiple forest owners or managers to be certified under a single MTCS certificate, rather than applying individually.

The requirements for Group Forest Management Certification are outlined in MTCS ST 1003:2021 — Group Management Certification Requirements.

A group entity is a legal entity that represents all participants in the group certification and is responsible for managing the group certification system and ensuring that all members comply with MC&I SFM.

The group entity may be represented by an organization or even a single person, depending on the group structure.

Yes. A group entity may be an industry player or trader, provided it is a legally registered organization.

If the group entity is a trader or industry, it must also comply with Chain of Custody (COC) requirements, in addition to the MC&I SFM requirements for Group Forest Management Certification.

Participants are individual forest owners or managers covered under the group certificate. Each participant manages their own forest area but follows the group’s management system and MC&I SFM requirements.

One-off contractors or short-term operators cannot become participants in a group forest management certification.

Yes. Each participant must sign a binding written agreement with the group entity. This agreement confirms the participant’s commitment to comply with MC&I SFM requirements, follow the group management system and accept corrective actions or exclusion if nonconformities are not resolved.

Yes. However, depending on scale and intensity, some requirements such as environmental impact assessment (Criterion 6.1) or management planning (Principle 7) may be fulfilled at the group level.

Participants are selected using a risk-based sampling approach, which considers factors such as size of forest area, type of ownership, forest operations and products, biodiversity and social risks and past audit results. The sample size is usually calculated using the square root of the number of participants.

If nonconformities are identified corrective actions must be implemented, the group entity monitors the effectiveness of the actions and participants who fail to close nonconformities may be suspended or excluded. Participants after exclusion from group certification may only rejoin after at least 12 months and must pass an internal audit.

Chain of Custody (COC) Certification is a process that tracks forest-based products throughout the supply chain from forests to the final consumer to verify their origin from legal and sustainably managed sources in accordance with established standards.

This certification ensures transparency, upholds the credibility of sustainable forest management practices, and facilitates market access for certified products by meeting global sustainability requirements.

PEFC-certified materials are sourced from sustainably managed forests in compliance with PEFC Sustainable Forest Management (SFM). Non-PEFC-certified materials originate from areas not certified under PEFC. However, the materials can be classified as PEFC Controlled Sources upon successful completion of a risk assessment, resulting as having negligible risk.

There are three (3) standards under PEFC COC, including:

  • Support sustainable managed forests.
  • Meet legality requirements.
  • Meet private and public sector procurement requirements.
  • Traceability solutions for wood-based materials.
  • Largest source of certified supply.
  • Support the Sustainable Development Goals.
  • Usage of PEFC label.
  • Fulfil certification requirements for export and import countries.

You can access the PEFC Database for global PEFC certification records.

For Malaysia-specific list of PEFC COC suppliers: https://mtcc.com.my/certified-chain-of-custody/

For further information visit https://mtcc.com.my/certified-chain-of-custody/ or email [email protected]

Any business handling forest and tree-based products such as sawmills, manufacturers, retailers, traders can apply if they process, trade, or sell certified materials.

Yes. PEFC COC certification is accessible to businesses of all sizes. The standard also offers tailored support for SMEs, including group certification options to reduce costs and simplify audit processes.

Keys steps in certification implementation: 

  1. Develop dossiers and documents according to the requirements of chain of custody standards. 
  2. Select and contract with an accredited Certification Body Notified by MTCS/PEFC.
  3. The certification body evaluates and issues a PEFC COC certificate if it meets the requirements.
  4. The certification body conducts annual surveillance audits to maintain the certificate. 

You may reach out to CBs listed under MTCS: https://mtcc.com.my/certification-bodies/

PEFC and MTCC play no role in audit pricing. The cost of obtaining PEFC COC certification is determined by Certification Bodies (CBs), so prices may vary.

In Malaysia, certification typically costs RM6,000 – RM10,000. For exact quotation and audit schedule, you may reach out to MTCS-listed CBs: https://mtcc.com.my/certification-bodies/

Audit duration depends on variables like company size, number of sites, and supply chain complexity.

All MTCS/PEFC COC certificate holders qualify for tax deductions on expenses incurred to obtain and maintain certification (Refer to APPENDIX I for details). More details can be found on LHDN website.

Eligible companies have access to double tax deductible for new certification under 34 6(ma), MTCS/PEFC COC holders are eligible for a double tax deduction in the first year of certification.  For subsequent years, they may claim the normal tax deduction under Section 33 of the Income Tax Act.

How to apply:

Claiming these tax deductions, you can reduce the cost of maintaining your MTCS/PEFC certification. This makes sustainable practices more financially rewarding for businesses in the Malaysian timber industry.

PEFC COC standard covers all forest and tree-based materials such as sawn timber, plywood, paper, flooring, sawdust, and more.

PEFC certification covers a wide range of paper-based products and packaging, including:

  • Paper and board.
  • Cartons and boxes.
  • Corrugated packaging.
  • Labels, envelopes, and bags.
  • Printed paper products and packaging materials.

Depending on material composition and claims, products may carry:

PEFC Certified label

  • Refer to the “PEFC Trademark & Label Usage” tab for the PEFC label description. 

PEFC Recycled label

The applicable label depends on compliance with standards PEFC ST 2001:2020 — PEFC Trademarks Rules – Requirement.

PEFC certification assures customers and stakeholders that the products:

  • Come from responsibly managed forest sources.
  • Support environmental protection and biodiversity.
  • Respect social and labor requirements.
  • Are produced through transparent and traceable supply chains.

Yes. Materials meeting the PEFC definition and requirements for recycled material may be incorporated into the COC supply chain for certified product manufacturing, provided that the following requirements are met:

  • Documentation that verifies the material’s origin.
  • Compliance with PEFC’s recycled material definition is fully demonstrated.

Forest and tree-based materials that are:

  • Recovered from waste during a manufacturing process.
  • Generated by households or by commercial, industrial and institutional facilities in their role as end-users of the product that can no longer be used for its intended purpose.

PEFC certification can cover:

  • Paper and cardboard (including box packaging, A4 paper, magazines, book).
  • Wood products (such as panels or furniture components).
  • Other forest and tree-based products.

Yes, products containing 100% PEFC recycled material content can carry the PEFC Recycled label:

Oil palm trunk and its derivatives on its own cannot be included under the current PEFC COC standard, as they are not classified as forest and tree-based products.

However, they may be used as part of forest and tree-based products as neutral material. 

Neutral material:
Clause 3.20 PECT ST 2002:2020: Material category for material other than forest and tree-based material, such as metal or plastic, not taken into account in the calculation of certified content of a product group.

Yes. Suppliers must hold a valid PEFC COC certification to transfer the PEFC claim and use the PEFC Trademark for their products when selling to buyers.

Yes. If these materials successfully pass the Due Diligence System (DDS), they may carry the PEFC Controlled Sources claim.

PEFC COC standard allows the mixing of PEFC-certified materials with PEFC Controlled Sources materials under the percentage-based method. This allows for percentage-based claim (e.g., 70% PEFC-certified plywood).

Organizations must address and resolve all identified nonconformities through appropriate corrective actions before certification is granted.

The requirements vary depending on the audit stage:

  • Initial certification – major and minor nonconformities shall be corrected.
  • Recertification – major nonconformities shall be corrected; minor nonconformities shall be verified no later than the next audit.

Subcontractors are the responsibility of the COC organization. The organisation shall establish a written agreement with all outsourcing entities, ensuring that:

  • Material segregation: All material/products covered under the organization’s PEFC COC are physically separated from other non-certified material or products.
  • Audit access: The organization has access to the entity’s site(s) for internal and external audits of outsourced activities for conformity with the requirements of this standard.

Yes, you can implement a COC system internally without formal certification. This helps track material origins and improves supply chain transparency while preparing for future certification by aligning with PEFC ST 2002 requirements.

However, without certification, you cannot use the PEFC label or make certified claims to buyers. Subsequently, market access requiring PEFC certification remains unavailable to you until formal certification is obtained.

The PEFC trademarks are symbols that represent the visual identity of PEFC. They are registered and belong to the PEFC Council. There are two PEFC trademarks:

a) The initials “PEFC”; and

b) The PEFC logo.

It consists of two trees surrounded by an arrow. The “PEFC” initials stand underneath it. The PEFC logo shall always be used within the PEFC labels.

All PEFC COC certified organizations must sign the PEFC Trademarks Usage Agreement, irrespective of their intent to use the trademarks. However, the practical application of PEFC Trademarks remains optional.

Yes. PEFC ST 2001 Trademark Rules provide the requirements for using of PEFC trademarks, covering both on-product application and off-product (promotional use).

PEFC Trademarks are used to:

  • Communicate certified status to customers and consumers.
  • Enhance market credibility and transparency.
  • Support claims of responsible forest management and sourcing.

PEFC Trademarks may be used on:

  • Certified products and packaging (on-product use).
  • Promotional materials (brochures, websites, advertisements, business cards etc).

All usage must comply with the PEFC ST 2001 Trademark Rules.

Yes. All on-product and off-product uses of PEFC Trademarks require prior approval by MTCC as National Governing Body (NGB) in Malaysia.

The PEFC labels comprise the PEFC logo plus additional elements such as the label name, the message, the website and the frame. The additional elements complement the logo providing information about what the PEFC logo stands for.

The PEFC logo shall be always used within the PEFC labels. Under certain circumstances described in this document, some elements of the PEFC labels may be omitted in such a way that the final design of the label is the PEFC logo itself, with no additional elements.

Group D covers organisations such as trade and industry associations, retailers, research and educational institutions, certification bodies, accreditation bodies, governmental organisations, NGOs, etc.

Group D trademarks users are authorised to use the PEFC trademarks only for off‑product purposes.

Certified companies or Group D can apply for a free PEFC Label using the online PEFC Label Generator https://lg.pefc.org/register

For guidance on PEFC Trademarks usage and approval, email [email protected]

PEFC Chain of Custody (COC) Group Certification is a certification option that allows multiple organizations involved in the supply chain of forest-based products to be certified under a single PEFC COC certificate, managed by a Group Manager.

This approach is particularly beneficial for small and medium enterprises (SMEs) seeking PEFC certification in a cost-effective manner.

PEFC COC Group Certification is suitable for:

  • Small and medium enterprises (SMEs).
  • Companies with similar Chain of Custody processes.
  • Organisations operating at multiple sites.
  • Suppliers, manufacturers, traders, printers, and distributors of forest-based products.

All group members must implement and comply with PEFC COC requirements.

The Group Manager is responsible for:

  • Establishing and maintaining the group COC management system.
  • Ensuring all group members comply with PEFC ST 2002 (Chain of Custody of Forest and Tree Based Products).
  • Conducting internal audits and monitoring of group members.
  • Managing corrective actions and membership records.
  • Acting as the main liaison with the Certification Body.

Benefits include:

  • Reduced certification and audit costs through shared expenses.
  • Simplified administration and documentation.
  • Improved access to PEFC-certified markets.
  • Consistent implementation of PEFC COC requirements across group members.

The main applicable standards include:

Audits are carried out by a PEFC-accredited Certification Body and include:

  • Assessment of the Group Manager’s COC management system.
  • Sampling audits of selected group members.
  • Annual surveillance audits and recertification audits.

Not all group members are audited each year, but all members remain subject to audit.

Organizations may:

  • Join an existing PEFC COC certified group, or
  • Establish a new group and appoint a Group Manager.
  • The producer group is limited to participation of sites that are in the same country.
  • Have not more than 50 employees (full-time employees equivalent).
  • Have a turnover of maximum of RM50 Million, or equivalent.

PEFC Chain of Custody (COC) Project Certification is a certification option that applies to a specific, defined project with a clear start and end date.

It enables organizations to demonstrate that forest- and tree-based materials used in the project are sourced from PEFC-certified, recycled, or controlled sources, in accordance with PEFC requirements.

PEFC COC Project Certification is suitable for:

  • Construction and infrastructure projects.
  • Property development projects.
  • Interior fit-out and refurbishment projects.
  • Organizations using PEFC-certified materials for a one-off or time-bound project.

Project Certification may cover forest- and tree-based products such as:

  • Timber and wood-based materials.
  • Panels, flooring, and joinery.
  • Furniture and fixtures.
  • Paper-based products used within the project scope.

Key requirements include:

  • A clearly defined project scope, timeline, and location.
  • Identification and control of PEFC-certified, recycled, or controlled materials.
  • Proper documentation and record-keeping for material purchases and usage.
  • Implementation of PEFC COC requirements relevant to the project.

The main applicable standards are:

The certificate is valid only for the duration of the project, as defined in the certification scope:

  • New build commercial and office buildings.
  • Private and social housing projects.
  • Renovation and refurbishment schemes.
  • Airports and railway stations.
  • Schools, playgrounds, skate parks, and sports arenas.
  • Boats and harbors.
  • Event and trade show infrastructure.
  • Civil engineering projects including bridges and tunnels and etc.
  • Access to markets – providing companies with competitive advantages for their PEFC certified projects in an increasingly environmentally-conscious world.
  • Inspire confidence – allowing you and your project partners to make a bold statement of sustainability and sound ethical sourcing of timber and forest-based products.
  • Ease of implementation – enabling Project Managers to take advantage of PEFC certification even if not all Project Members have obtained PEFC Chain of Custody certification.
  • Compliance with legislation – PEFC’s Due Diligence System (DDS) excludes wood from conversions, illegal and other controversial sources.
  • Availability and choice – two-thirds of the world’s certified forest area is PEFC certified. That is currently more than 230 million hectares, offering the widest supply of certified forest and tree-based products.
  • Business leadership on sustainability – businesses acquire a competitive advantage over competitor.

MTCC offers briefings for both existing and potential COC companies, alongside regular updates on PEFC standards and requirements.

For further information contact [email protected]

As a minimum requirement, organizations must annually review all procedures during their internal review and surveillance audit. When changes occur in the organization’s supply chain, products, or processes, an immediate review becomes necessary.

Yes, PEFC certification is designed to comply with major international timber legality regulations, including:

  • European Union Timber Regulation (EUTR)
  • US Lacey Act
  • Australian Illegal Logging Prohibition Act
  • Japanese Clean Wood Act
  • UK Timber Regulation (UKTR)

These regulations universally emphasize behavior modification through ‘due diligence’ or ‘due care’ in wood sourcing. For this reason, the revised Chain of Custody incorporates transparency and information availability as core elements in PEFC’s Due Diligence System.

Information on the origin and tree species of any supply in the Chain of Custody has to be accessible at ANY transaction point in the PEFC supply chain.

See more details in PEFC GD 2001:2025 Chain of Custody of Forest and Tree Based Products and Related Standards – Guidance for Use

Yes. The PEFC ST 2002-1:2024 PEFC EUDR Due Diligence System was published on 20 July 2024, to support organizations in demonstrating compliance with the EUDR:

  • EU-based operators/traders who placed relevant products on the EU market, or export these products from the EU.
  • Non-EU suppliers if their products ultimately enter the EU market through their direct or indirect customers.

The EUDR now requires Operators to provide geolocation data and harvesting date ranges within their Due Diligence Statements, which need to be presented by Operators as part of their DDS statement. PEFC is actively seeking potential solutions for certified organizations to meet these requirements.

Other alignment work includes:

  • Refining definitions of recycled materials.
  • Verifying technical accuracy of claims.
  • Ensuring that the DDS system includes checks on deforestation and degradation as per the EU definitions.

Voluntary certification schemes cannot offer automatic compliance with EUDR as the legal liability always rests with the Operators and Traders.

Through aligning PEFC standards to EUDR, PEFC will assist supply chain actors in their due diligence, risk assessment and data requirements for EUDR compliance.

PEFC certification can be used as:

  • Supporting evidence in the EUDR due diligence process.
  • A tool to demonstrate low-risk sourcing practices.
  • Part of a broader compliance strategy, but not a standalone solution.

MTCC formally adopted the PEFC EUDR DDS standard on 10 September 2024 as part of the standards under the MTCS. 

List of Certification Bodies (CBs) Accredited to Conduct PEFC EUDR Due Diligence System (DDS) Audits (as of 31 December 2025):

  • SIRIM QAS International Sdn. Bhd.
  • SGS (Malaysia) Sdn. Bhd.
  • Platinum Shauffmantz Veritas Sdn. Bhd.

Below are key resources for PEFC-specific guidance and EUDR compliance:

PEFC EUDR Resources

PEFC EUDR Website which provides access to the following:

Official EUDR Resources

EU Website which provides access to the following:

  • EUDR Legislation Text
  • EUDR Implementation Support Tools (EU Forest Observatory, Country Benchmarking, Satellite Monitoring etc.)
  • FAQs and Guidance Document

PEFC supports Environmental, Social, and Governance (ESG) goals by providing a framework for sustainable forest management and traceable supply chains, helping companies meet investor demands, regulatory requirements and consumer preferences for responsibly sourced wood, paper, and other forest and tree-based products, thereby enhancing their brand value and reporting on climate mitigation and social responsibility.

PEFC COC certification aligns closely with Environmental, Social, and Governance (ESG) reporting by providing a framework that supports sustainability and ethical practices:

  • Environmental: PEFC COC certification ensures that forest-based products come from sustainably managed forests. This aligns with environmental goals in ESG reporting, such as reducing deforestation, conserving biodiversity, and promoting responsible resource use.
  • Social: The certification includes requirements related to labor rights, health, and safety, as well as respecting the rights of indigenous peoples. These aspects contribute to the social component of ESG by promoting fair and ethical treatment of workers and communities.
  • Governance: By adhering to PEFC standards, organizations demonstrate transparency and accountability in their supply chains. This supports governance objectives in ESG reporting, such as ethical sourcing and compliance with international standards.

Yes. PEFC COC certification can be used as credible, third-party verified evidence to support ESG disclosures, sustainability reports, and annual reports.

It provides assurance on responsible sourcing, supply chain transparency, and compliance with internationally recognized sustainability standards.

Learn more.

The United Nations Sustainable Development Goals (SDGs) are 17 global goals adopted to promote sustainable development by balancing environmental protection, social inclusion, and economic growth. Businesses play a key role in achieving these goals through responsible practices and sustainable supply chains.

Learn more about how MTCC supports the Sustainable Development Goals (SDGs).

PEFC COC certification supports the SDGs by ensuring that forest-based products are sourced from sustainably managed forests and responsible supply chains.

It provides third-party verified assurance that environmental, social, and governance principles are embedded throughout the production and supply chain process.

Learn more about PEFC’s commitment to all 17 pillars of the Sustainable Development Goals (SDGs).

Yes. PEFC COC certification can be used as credible, third-party verified evidence to support SDG-related disclosures in:

  • Sustainability and ESG reports.
  • Annual reports.
  • Corporate responsibility statements.

It strengthens the credibility of SDG claims related to responsible sourcing.

  • Ensures responsibly sourced materials, supporting your sustainability goals.
  • Boosts ESG credentials, enhancing your corporate responsibility profile.
  • Provides access to environmentally conscious markets, aligning with global trends in sustainability.
  • Improves supply chain security, reducing risks from unsustainable sources.
  • Contributes to Malaysia’s Roadmap towards Sustainable Development Goals (SDGs) by 2030.
  • Supports Malaysia’s commitment to international conventions and treaties related to sustainability.

Page updated: 29 January 2026

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