Back to overview
04

Legality risk assessment

In the SHC Assurance System, the risk of illegal harvesting is assessed against the “Framework for Jurisdictional Risk Assessment (JRA) of Legal Compliance of Hardwood Production in the USA”. The JRA Framework is designed to consider all aspects of legal compliance in the hardwood producing industry in the U.S., from point of harvest to point of export. It is applicable to hardwood logs sourced from forest properties used in the production of sawnwood, mouldings, veneer, plywood, engineered wood products, and co-products from hardwood mill residuals.

JRA Framework document

The JRA Framework sets out qualification criteria for the Risk Assessor responsible for preparing the JRA. The Assessor must be independent of the parties that are the subject of the risk assessment and that any payments for preparation of the risk assessment must not depend on its outcome. The Assessor must have appropriate professional experience and training and is expected to utilise a team of experts.

The Framework also sets out the criteria and indicators to be evaluated during the JRA. These draw on and aim to align with a wide range of regulatory requirements (Lacey Act, EUDR, UKTR), certification standards (FSC, PEFC, SFI, SBP), government procurement policies (UK Government TPP), UN guidelines (FAO Guiding Legal Elements) and non-governmental guidelines (WWF Global Forest & Trade Network). The JRA Framework has built on these sources — which exhibit a high level of consistency and overlap — to facilitate robust legality assessment in the context of U.S. hardwood forests, jurisdictions, and legislative approaches.

SHC endorses JRAs that have been assessed by an Independent Scrutineer, appointed by SHC, as in compliance with the JRA Framework. An SHC-endorsed JRA is a publicly accessible document that is valid for 5 years. A single JRA is required per jurisdiction, defined as individual states in the United States. All SHC-endorsed assessments are publicly available and shall be used by hardwood mills implementing the SHC chain of custody standard to verify the legal status of hardwood materials. SHC-certified mills shall take action to mitigate any risks identified in the SHC-endorsed JRA for jurisdictions from which they source timber.