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DR 27/2010

A BILL

intituled

An Act to amend the Malaysian Timber Industry Board (Incorporation) Act 1973.

ENACTED by the Parliament of Malaysia as follows:

1. Short title and commencement

(1) This Act may be cited as the Malaysian Timber Industry Board (Incorporation) (Amendment) Act 2010.

(2) This Act comes into operation on a date to be appointed by the Minister by notification in the Gazette.

2. Amendment of section 2

The Malaysian Timber Industry Board (Incorporation) Act 1973 [Act 105], which is referred to as the "principal Act" in this Act, is amended in section 2:-

(a) by renumbering the existing provision as subsection (1);

(b) in subsection (1):-

(i) by inserting after the definition of "supplier" the following definition:

' "this Act" includes any subsidiary legislation made under this Act;’;

(ii) by inserting after the definition of "import" the following definition:

' "in transit" means taken or sent from any country and brought into Malaysia by land, sea transshipped or air (whether or not landed or in Malaysia) for the sole purpose of being carried to another country either by the same or another conveyance;’;

(iii) by inserting after the definition of "recognized association" the following definition:

' "research finding" means any result or output from a research and development activity and includes new or improved product, design, invention, innovation and development in any process, technique, apparatus or machine;’;

(iv) by inserting after the definition of "enforcement officer" the following definition:

' "export" means to take or cause to be taken out of Malaysia by land, sea or air or to place any timber in a vessel, conveyance or aircraft for the purpose of the timber being taken out of Malaysia by land, sea or air;’;

(v) by inserting after the definition of "grading authority" the following definition:

' "import" means to bring or cause to be brought any timber into Malaysia by land, sea or air but does not include bona fide transit of timber and transshipment of timber;’;

(vi) in the national language text, in the definition of "kilang" by substituting for the word "fabrik" the word "pabrik";

(vii) by inserting after the definition of "timber processor" the following definition:

' "timber quality" means grade, species, size and any specification relating to timber;’;

(viii) by inserting before the definition of "Fund" the following definition:

' "forest plantation" means the planting, managing and harvesting of trees under the Forest Plantation Development Programme implemented by the Board;’;

(ix) by inserting after the definition of "Director General" the following definition:

' "domestic market" means market within Malaysia;’;

(x) by inserting after the definition of "timber quality" the following definition:

' "trader" means a person who carries on the business of selling, trading, distributing or marketing of timber for the purpose of domestic market;’;

(xi) by inserting after the definition of "processor" the following definition:

' "proper officer of customs" has the meaning assigned to it in section 2 of the Customs Act 1967 [Act 235];’;

(xii) by inserting after the definition of "domestic market" the following definition:

' "enforcement officer" means:-

(a) an officer of the Board or any public officer appointed under section 26a;

(b) a police officer not below the rank of Inspector; or

(c) an officer of customs as defined under the Customs Act 1967;’;

(xiii) in the definition of "supplier", by inserting after the words "supplies timber" the words "for the purpose of export";

(xiv) by deleting the definition of "registered grader";

(xv) by deleting the definition of "timber processor";

(xvi) by inserting after the definition of "premises" the following definition:

' "processor" means a person who carries on the business of kiln drying or preserving timber;’;

(xvii) by inserting before the definition of "permit" the following definition:

' "operator" means a person who holds a valid certificate of competency issued by the Board to operate a timber preservation plant, a timber kiln dry plant or both;’;

(xviii) in the definition of "jetty operator", by inserting after the words "operates a jetty" the words "who is involved in exportation or any activity relating to the importation of timber";

(xix) by inserting after the definition of "grading authority" the following definition:

' "harvesting" means taking, collecting, tapping or removing, of any forest produce for the purpose of forest plantation;’;

(xx) by inserting after the definition of "import" the following definition:

' "importer" means a person who imports timber;’;

(xxi) by inserting after the definition of "timber" the following definition:

' "timber industry" means any activity which involves forest plantation, development, trade, marketing, processing, manufacturing and production of and research on timber;’;

(xxii) by inserting before the definition of "premises" the following definition:

' "permit", in relation to the exportation or importation of timber, means a certificate of approval issued by the Board;’;

(xxiii) by substituting for the definition of "grading authority" the following definition:

' "grading authority" means the Director General of the Malaysian Timber Industry Board;’;

(xxiv) by inserting before the definition of "processor" the following definition:

' "premises", in relation to timber, means any place, whether open or enclosed or whether on land or sea or whether movable or immovable and includes any house, mill, shop, conveyance, store, room, hall, shed, container, jetty, yard, estate, farm, warehouse, port or airport;’;

(xxv) by inserting after the definition of "Board" the following definition:

' "cess" means the cess imposed under section 20;’;

(xxvi) by deleting the definition of "legal landing place"; and

(c) by inserting after subsection (1) the following subsection:

"(2) The provision of this Act shall not be in derogation of the provisions of the National Forestry Act 1984 [Act 313] or any other written laws for the time being in force in relation to forestry.".

3. Amendment of section 4

Subsection 4(1) of the principal Act is amended:-

(a) by substituting for paragraph paragraph: (b) the following

"(b) the Secretary General of the Ministry of Plantation Industries and Commodities;";

(b) by inserting after paragraph paragraph: (b) the following

"(ba) the Secretary General of the Treasury;";

(c) in paragraph (c), by substituting for the words "a representative" the words "the Secretary General";

(d) in paragraph (d), by substituting for the words "a representative" the words "the Director General";

(e) by substituting for paragraph paragraph: (e) the following

"(e) the Director General of the Forest Research Institute of Malaysia;"; and

(f) by inserting after paragraph paragraph: (e) the following

"(ea) the Director General;".

4. Amendment of section 9

Section 9 of the principal Act is amended by substituting for subsection (2) the following subsection:

"(2) The Board may, with the consent of the Minister and on such terms and conditions as the Board may determine, appoint such number of Deputies Director General and officers and servants of the Board including Quality Control Inspectors as may be necessary for carrying out the purposes of this Act.".

5. New section 9c

The principal Act is amended by inserting after section 9b the following section:

9c. "Delegation of Director General’s duties

(1) The Director General may in writing delegate any of the powers or duties assigned to him under this Act to any officer of the Board, subject to such terms and conditions as he thinks fit.

(2) A delegation under this section shall not preclude the Director General himself from performing or exercising, at any time, any of the powers or duties so delegated.".

6. Amendment of section 12

Section 12 of the principal Act is amended:-

(a) in subsection (1):-

(i) in paragraph (g), by deleting the word "and" at the end of the paragraph; and

(ii) by inserting after paragraph paragraphs: (g) the following

"(ga) to implement programmes policies and development to ensure the improvement and viability of the timber industry in Malaysia;

(gb) to develop Bumiputera entrepreneurs in the timber industry to be more competitive;

(gc) to implement control and monitor export, import, timber in transit and the domestic market;

(gd) to carry out research, review and investigation, that are beneficial or appropriate to the carrying out of its functions;

(ge) to develop and commercialize research findings for the benefit of the timber industry and to encourage the commercial use of research findings;

(gf) to encourage and develop forest plantation activity for the purpose of the development of the timber industry and any other activity related to the development of forest plantation;

(gg) to plan and carry out human resource development programmes parallel to the development of the timber industry;

(gh) to liaise and co-ordinate with the relevant State Governments and other bodies, including members of any association within and outside Malaysia, in the interest of the timber industry; and";

(b) in subsection (2):-

(i) by deleting the word "and" at the end of paragraph (c);

(ii) by substituting for the full stop at the end of paragraph (d) a semicolon; and

(iii) by inserting after paragraph paragraphs: (d) the following

"(e) to acquire, hold, dispose of or grant rights in connection with the results of any research conducted by or for the Board, or in connection with the results of any research undertaken by any person or organization for the Board;

(f) to commission any person or body to carry out research or development;

(g) to award certificates of proficiency in respect of training programmes and programmes recognized by the Board;

(h) to issue licences, certificates, permits and approvals under this Act in respect of the timber industry;

(i) to determine the standards and specifications of any timber product as the Board thinks proper for the timber industry;

(j) to undertake and co-ordinate any activities relating to research and development in the planting, production and harvesting of forest plantation products;

(k) to grant recognition and certification of timber quality assurance scheme to any person involved in timber production;

(l) to collaborate with any recognized agencies or organizations within or outside Malaysia;

(m) to carry out research and development activities for the development of timber products and downstream activities;

(n) to provide loans, with or without interest, to bodies, companies or persons approved by the Minister for the execution of forest plantation programmes or any other programmes for the purpose of the development of the timber industry;

(o) to carry out the role as the grading authority; and

(p) to do all things expedient, necessary for or incidental to the performance of its functions under this Act."; and

(c) by inserting after subsection (4) the following subsection:

"(4a) The provisions of the Fourth Schedule shall apply in respect of every corporation established by the Board under subsection (3).".

7. New section 12a

The principal Act is amended by inserting after section 12 the following section:

12a. "Delegation of Board’s functions and powers

(1) The Board may, in writing, delegate on such conditions, limitations or restrictions as it deems fit to impose, any of its functions or powers, except the power to make regulations and rules under section 34 of this Act, to:-

(a) the Chairman;

(b) the Director General;

(c) any committee appointed by the Board; or

(d) any officer of the Board who is empowered by the Director General.

(2) Any person or committee delegated with such functions and powers of the Board under subsection (1) shall be bound to observe and have regard to all the conditions, limitations or restrictions imposed by the Board.

(3) A delegation under this section shall not preclude the Board itself from performing or exercising at any time any of the functions or powers so delegated.".

8. Substitution of section 13

The principal Act is amended by substituting for section 13 the following section:

13. "Prohibition against carrying out activities without registration

(1) No person shall carry on any activity as:-

(a) an exporter;

(b) an importer;

(c) a supplier;

(d) a grader;

(e) a processor;

(f) a trader;

(g) an operator; or

(h) a jetty operator,

unless he is registered in accordance with this Act.

(2) Any person who contravenes subsection (1) shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.".

9. Deletion of section 13a

The principal Act is amended by deleting section 13a.

10. Amendment of section 14

Section 14 of the principal Act is amended;-

(a) by substituting for subsection (1) the following subsection:

"(1) An application for registration under this Act shall be made to the Board.";

(b) in subsection (2), by deleting the words "as an exporter, jetty operator, registered grader, supplier or timber processor, as the case may be,"; and

(c) in subsection (5), by inserting after the word "grader" the words "or operator".

11. Substitution of section 15

The principal Act is amended by substituting for section 15 the following section:

The Board shall keep and maintain a register relating to the registration under section 14 in such form and manner as may be determined by the Board.".

12. New sections 18a and 18b

The principal Act is amended by inserting after section 18 the following sections:

(1) An exporter or importer shall make a declaration to the Board in respect of timber to be exported or imported, before the exportation or importation of such timber.

(2) Any person who contravenes subsection (1) shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding two years or to both.

In relation to export, timber shall be deemed to be taken or caused to be taken out of Malaysia if:-

(a) a permit or certification for its exportation has been issued by the Board;

(b) it has been cleared by a proper officer of customs at the last customs station on its route out of Malaysia;

(c) it has been loaded onto a vessel or aircraft which is about to depart from a port or jetty or place in Malaysia; or

(d) it has been cleared by a proper officer of customs at an inland clearance depot or at an inland customs station on its route out of Malaysia through a customs port or airport.".

13. Amendment of section 19

Section 19 of the principal Act is amended:-

(a) in subsection (2);-

(i) in paragraph (a), by inserting after the word "sections" the word "14,";

(ii) by inserting after paragraph paragraphs: (c) the following

"(ca) all moneys property, earned or arising from any investment, mortgage, lease, tenancy, charge or debenture acquired by or vested in the Board including any profits gained from the corporations or companies established under this Act;

(cb) all moneys earned from the operation of any project, scheme or enterprise financed from the Fund;";

(iii) in paragraph (d), by inserting after the word "grants" the words ", contribution or loans"; and

(iv) in paragraph (e), by deleting the words "under section 21"; and

(b) by substituting for subsection (3) the following subsection:

"(3) The Fund shall be expended for the following purposes:

(a) paying any expenses lawfully incurred by the Board, including:-

(i) the remuneration of the officers and servants of the Board, including granting of loans, superannuation allowances, pensions or gratuities;

(ii) insurance coverage or incentives for the officers and servants of the Board;

(iii) scholarships of higher education for the officers and servants of the Board as approved by the Board;

(iv) costs incurred in providing for the welfare of the officers and servants of the Board; and

(v) legal fees and costs and any other fees and costs;

(b) granting loans or providing capital for corporations or companies established under this Act;

(c) repaying any moneys borrowed under this Act and any interests due on such moneys;

(d) subject to the approval of the Minister, making contributions to any organization, whether within or outside Malaysia, for the purpose of promoting the development of the timber industry, promoting the trade in utilization and processing of timber and ensuring adequate supply of timber to the industry;

(e) financing research and development activities;

(f) contributing to bodies or organizations of which the Board is a member;

(g) providing loans or grants to institutions of higher learning within or outside Malaysia for the purpose of human resource development in the timber industry;

(h) providing loans, grants, capital or any other form of assistance to any Bumiputera or person involved in the timber industry, subject to such terms and conditions as may be prescribed by the Board;

(i) paying any expenses or costs, incurred or properly accepted by the Board in the performance of its functions or the exercise of its powers under this Act;

(j) purchasing or hiring equipment, machinery and any other materials, acquiring land and erecting buildings, and carrying out any other works and undertakings in the performance of its functions or the exercise of its powers under this Act; and

(k) generally, paying any expenses for carrying into effect the provisions of this Act.".

14. Amendment of section 20

Section 20 of the principal Act is amended:-

(a) by substituting for the shoulder note the following shoulder note:

"Cess on exportation of timber";

(b) by renumbering the existing section as subsection (1) of that section; and

(c) by inserting after subsection (1) the following subsections:

"(2) An order for the imposition, collection or variation of cess under subsection (1) may prescribe different amounts, rates and manner of collection for different types of timber in relation to different persons or different classes of persons.

(3) A person who fails or refuses to pay any cess imposed under this section shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding ten times the amount of cess due or to imprisonment for a term not exceeding three years or to both.

(4) The amount of any cess imposed under this section shall be a debt due to the Board from the person on whom the cess is imposed and may be sued for and recovered in any court at the suit of the Board.

(5) The institution of proceedings under this section shall not relieve any person from liability to pay any cess for which he is or may be liable or from liability to make any return which he is required by this Act to make.".

15. Amendment of section 20A

Section 20A of the principal Act is amended by substituting for the words "or other services provided by the Board pursuant to this Act" the words ", test, research, investigation, provided or done by the Board or any other services provided by the Board or of the use of facilities of the Board pursuant to this Act".

16. Substitution of section 21

The principal Act is amended by substituting for section 21 the following section:

21. "Contribution by States

Any State may contribute to the Fund such sum as may be agreed between the Minister and the State.".

17. New Part IVA

The principal Act is amended by inserting after Part IV the following Part:

"Part IVA

POWERS RELATING TO ENFORCEMENT, SEIZURE, ARREST, ETC.

26A. Appointment of enforcement officers

The Director General may in writing appoint any number of enforcement officers as may be necessary for the purposes of this Act.

26B. Power of investigation

(1) An enforcement officer shall have all the powers necessary to carry out an investigation under this Act.

(2) For the purposes of subsection (1), the Criminal Procedure Code [Act 593] shall apply and an enforcement officer shall have all the powers as provided for under the Code.

26C. Authority card

(1) The Director General shall issue to each enforcement officer appointed under section 26a an authority card which shall be signed by the Director General.

(2) Whenever such enforcement officer exercises any of the powers under this Act, he shall, on demand, produce to the person against whom the power is being exercised the authority card issued to him under subsection (1).

26D. Power to arrest

(1) An enforcement officer may arrest without warrant any person ;-

(a) found committing, attempting to commit or abetting the commission of an offence under this Act; or

(b) whom the enforcement officer reasonably suspects of being engaged in committing, attempting to commit or abetting an offence under this Act.

(2) An enforcement officer making an arrest under subsection (1) shall, without unnecessary delay, bring the person arrested to the nearest police station, and thereafter the person shall be dealt with in accordance with the law relating to criminal procedure for the time being in force.

26E. Search and seizure with warrant

(1) If it appears to the Court, upon written information on oath and after such enquiry as the Court considers necessary, that there is a reasonable cause to believe that;-

(a) any premises has been used or are about to be used for; or

(b) there is in any premises evidence necessary to the conduct of an investigation into, the commission of an offence under this Act, the Court may issue a warrant authorizing any enforcement officer named in the warrant, at any reasonable time, by day or by night and with or without assistance, to enter the premises and if need be by force

(2) A warrant issued under subsection (1) may authorize the enforcement officer to;-

(a) search the premises for, and to seize or remove from the premises any timber, conveyance, machinery, contrivance, equipment, book, record, document or other article that is reasonably believed to furnish evidence of the commission of such offence;

(b) take samples of any timber, or thing found in the premises for the purposes of ascertaining, by testing or otherwise, whether the offence has been committed; and

(c) make copies of or take extracts from any book, record, document or other article found in the premises.

(3) An enforcement officer entering any premises under this section may take with him such other persons and equipment as may appear to him to be necessary.

(4) An enforcement officer may, in the exercise of his powers under this section, if it is necessary so to do;-

(a) break open any outer or inner door of the premises or any fence, enclosure, gate or other obstruction to the premises, in order to effect entry into the premises;

(b) remove by force any obstruction to entry, search, seizure or removal as he is empowered to effect under this section; and

(c) detain any person found in the premises until the search has been completed.

(5) Where, by reason of its nature, size or amount, it is not practical to remove any timber, conveyance, machinery, contrivance, equipment, book, record, document or other article seized under this section, the enforcement officer shall, by any means, seal such timber, conveyance, machinery, contrivance, equipment, book, record, document or other article in the premises or container in which it is found.

(6) Any person who, without lawful authority, breaks, tampers with or damages the seal referred to in subsection (5) or removes the timber, conveyance, machinery, contrivance, equipment, book, record, document or other article under seal or attempts to do so shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding two years or to both.

26F. Search and seizure without warrant

Whenever an enforcement officer has reasonable cause to believe that any timber, conveyance, machinery, contrivance, equipment, book, record, document or other article in respect of which an offence under this Act has been committed is likely to be found in or on any premises, person or conveyance and that by reason of delay in obtaining a warrant under section 26e, the object of the search may be frustrated, he may, with the consent of the Director General, without warrant, with such assistance and force as is necessary;-

(a) enter and search such premises;

(b) stop and search such person, vehicle, vessel or conveyance; and

(c) seize any timber, conveyance, machinery, contrivance, equipment, book, record, document or other article which may be found and may be evidence of the commission of such offence.

26G. Power to enter premises

Notwithstanding sections 26e and 26f, an enforcement officer may at any time enter any premises for the purpose of::-

(a) inspecting any timber, conveyance, machinery, contrivance, equipment, book, record, document or other article as he considers necessary;

(b) verifying the accuracy of records or statements or any information given to an enforcement officer or to the Board; or

(c) collecting samples of any timber.

26H. Access to computerized data

(1) An enforcement officer conducting a search under this Act shall be given access to computerized data whether stored in a computer or otherwise.

(2) For the purpose of this section, access shall be provided with the necessary password, encryption code, decryption code, software or hardware and any other means required to enable comprehension of computerized data.

26I. Seizure of thing, etc.

Without prejudice to subsection 26e(2) and section 26f, any timber, conveyance, machinery, contrivance, equipment, book, record, document or other article that an enforcement officer reasonably suspects has been used or will be used in the commission of an offence under this Act may be seized and detained by the enforcement officer.

26J. Power to stop, search and seize conveyances

(1) If an enforcement officer has reasonable cause to suspect that any conveyance is carrying any timber, machinery, contrivance, equipment, book, record, document or any other article in respect of which an offence under this Act is being or has been committed, he may stop and examine the conveyance and may, if on examination he has reasonable cause to believe that such conveyance is or has been used for the commission of such offence, seize such conveyance and any timber, machinery, contrivance, equipment, book, record, document or other article found in the conveyance that is reasonably believed to furnish evidence of the commission of such offence.

(2) The person in control or in charge of the conveyance shall, if required to do so by the enforcement officer:-

(a) stop the conveyance and allow the enforcement officer to examine it; and

(b) open all parts of the conveyance for examination and take all measures necessary to enable or facilitate the carrying out of such examination as the enforcement officer considers necessary.

(3) Any person who contravenes subsection (2) shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding two years or to both.

26K. List of things seized

(1) Where any seizure is made under this Act, an enforcement officer making the seizure shall prepare a list of timber, conveyance, machinery, contrivance, equipment, book, record, document or other article seized and of the premises in which it is found and shall sign the list.

(2) The list prepared in accordance with subsection (1) shall be delivered immediately to:-

(a) the occupant of the premises where the timber, conveyance, machinery, contrivance, equipment, book, record, document or other article seized is found; and

(b) the person in control or in charge of the conveyance where the seizure is made under section 26j.

(3) Where the seizure is made in or from any premises, which is unoccupied, the enforcement officer shall whenever possible post a list of things seized conspicuously at the premises.

(4) Where any timber, conveyance, machinery, contrivance, equipment, book, record, document or other article is seized otherwise than in or from any premises, the enforcement officer making the seizure shall give a notice in writing of the seizure and the grounds of the seizure to the owner of the timber, conveyance, machinery, contrivance, equipment, book, record, document or other article seized by delivering a copy of such notice to the owner in person or by registered post at his place of business or residence.

26l. Temporary return of conveyance, etc.

(1) Where any conveyance, machinery, contrivance or equipment is seized under this Act, the Director General may temporarily return the conveyance, machinery, contrivance or equipment to the owner of the conveyance, machinery, contrivance or equipment or the person from whose possession, custody or control it was seized, subject to such terms and conditions as the Director General may impose, and subject in any case, to sufficient security being furnished to the satisfaction of the Director General that the conveyance, machinery, contrivance or equipment shall be surrendered to the Director General on demand and that such terms and conditions, if any, shall be complied with.

(2) Where any seized conveyance, machinery, contrivance or equipment is temporarily returned under subsection (1), a person who:-

(a) fails, on demand, to surrender the conveyance, machinery, contrivance or equipment to the Director General; or

(b) contravenes any of the terms or conditions imposed under subsection (1),

shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding two years or to both.

26M. Sale and disposal of seized timber

(1) The Director General may at any time direct that any timber seized under this Act be sold and the proceeds of the sale be held while waiting for the result of any prosecution under this Act where;-

(a) the timber easily deteriorates in quality;

(b) the custody of the timber involves unreasonable expense and inconvenience;

(c) there is a lack or absence of adequate or proper facilities for the storage of the timber; or

(d) the timber is believed to cause an obstruction or to be a hazard to the public.

(2) The Director General may, in his discretion;-

(a) temporarily return the timber to the owner or to the person from whose possession, custody or control the timber was seized, subject to such terms and conditions as may be imposed by the Director General and in any case, subject to sufficient security being furnished to the satisfaction of the Director General that the timber shall be surrendered to the Director General on demand being made by the Director General and that the said terms and conditions, if any, shall be complied with;

(b) return the timber to the owner or to the person from whose possession, custody or control it was seized with liberty for the person to whom the timber is so returned to dispose of the same, such return being subject to security being furnished to the satisfaction of the Director General in an amount of not less than an amount which, in the opinion of the Director General, represents the open market value of such timber on the date on which it is so returned for the payment of the amount so secured to the Director General in the event the Court has made an order of forfeiture of such amount under section 26q.

(3) Notwithstanding subsection (1), where an analyst appointed under section 29g certifies, or if the results of such tests as certified by the analyst prove, that the timber tested by him deteriorates in quality, the Director General may keep it in custody, or if no prosecution is instituted in respect of the timber, cause it to be disposed of in the manner determined by the Director General.

26N. Power to require attendance of persons acquainted with case

(1) The enforcement officer making an investigation under this Act may, by notice in writing, require the attendance before himself of any person who appears to him to be acquainted with the facts and circumstances of the case, and such person shall attend as required.

(2) If any such person refuses to attend as required by a notice made under subsection (1), the enforcement officer may report his refusal to the Court who shall issue a warrant to secure the attendance of such person as may be required by the notice.

(3) Any person who is required to attend before the enforcement officer under subsection (1) or (2) may be paid such allowances as may be prescribed by the Minister.

26O. Examination of persons acquainted with case

(1) An enforcement officer making an investigation under this Act may examine orally any person supposed to be acquainted with the facts and circumstances of the case.

(2) Such person shall be bound to answer all questions relating to such case put to him by the enforcement officer, but he may refuse to answer any question the answer to which would have a tendency to expose him to a criminal charge or penalty or forfeiture.

(3) A person making a statement under this section shall be legally bound to state the truth, whether or not such statement is made wholly or partly in answer to questions.

(4) The enforcement officer examining a person under subsection (1) shall first inform that person of the provisions of subsections (2) and (3).

(5) A statement made by any person under this section shall, whenever possible, be reduced into writing and signed by the person making it or affixed with his thumb print, as the case may be, after:-

(a) it has been read to him in the language in which he made it; and

(b) he has been given an opportunity to make any correction he may wish.

26P. Admissibility of statements in evidence

(1) In any trial or inquiry by a Court into an offence under this Act, any statement, whether the statement amounts to a confession or not, is oral or in writing, made at any time, whether before or after the person is charged and whether in the course of an investigation under this Act or not and whether or not wholly or partly in answer to questions, by an accused person to or in the hearing of an enforcement officer and whether or not interpreted to him by any other enforcement officer or any other person, whether concerned or not in the arrest of that person, shall, notwithstanding any written law or rule of law to the contrary, be admissible at his trial in evidence and, if that person tenders himself as a witness, any such statement may be used in cross-examination and for the purpose of impeaching his credit.

(2) No statement made under subsection (1) shall be admissible or used as provided for in that subsection if the making of the statement appears to the Court to have been caused by any inducement, threat or promise having reference to the charge against the person proceeding from a person in authority and sufficient in the opinion of the Court to give that person grounds which would appear to him reasonable for supposing that by making it he would gain any advantage or avoid any evil of a temporal nature in reference to the proceedings against him.

(3) Where any person is arrested or is informed that he may be prosecuted for any offence under this Act, he shall be served by the enforcement officer with a notice in writing, which shall be explained to him, to the following effect:

"You have been arrested/informed that you may be prosecuted for …………(the possible offence under this Act). Do you wish to say anything? If there is any fact on which you intend to rely in your defence in Court, you are advised to mention it now. If you hold it back till you go to Court, your evidence may be less likely to be believed and this may have a bad effect on your case in general. If you wish to mention any fact now, and you would like it written down, this will be done.".

(4) Notwithstanding subsection (3), a statement by any person accused of any offence under this Act made before there is time to serve a notice under that subsection shall not be rendered inadmissible in evidence merely by reason of no such notice having been served on him if such notice has been served on him as soon as is reasonably possible thereafter.

(5) No statement made by an accused person in answer to a written notice served on him pursuant to subsection (3) shall be construed as a statement caused by any inducement, threat or promise as is described in subsection (2), if it is otherwise voluntary.

(6) Where in any criminal proceedings against a person for an offence under this Act, evidence is given that the accused, on being informed that he might be prosecuted for it, failed to mention any such fact, being a fact which in the circumstances existing at the time he could reasonably have been expected to mention when so informed, the Court, in determining whether the prosecution has made out a prima facie case against the accused and in determining whether the accused is guilty of the offence charged, may draw such inference from the failure as appear proper; and the failure may, on the basis of those inferences, be treated as, or as capable of amounting to, corroboration of any evidence given against the accused in relation to which the failure is material.

(7) Nothing in subsection (6) shall, in any criminal proceedings:-

(a) prejudice the admissibility in evidence of the silence or other reaction of the accused in the face of anything said in his presence relating to the conduct in respect of which he is charged, in so far as evidence of it would be admissible apart from that subsection; or

(b) be taken to preclude the drawing of any inference from any such silence or other reaction of the accused which could be drawn apart from that subsection.

26Q. Forfeiture of seized timber, etc.

(1) Any timber or the proceeds of sale of the timber, or any conveyance, machinery, contrivance, equipment, book, record, document or other article seized under this Act shall be liable to forfeiture.

(2) An order for the forfeiture of the timber or the proceeds of sale of the timber, or the conveyance, machinery, contrivance, equipment, book, record, document or other article shall be made if it is proved to the satisfaction of the Court that an offence under this Act has been committed and that the timber or the proceeds of sale of the timber, or the conveyance, machinery, contrivance, equipment, book, record, document or other article was the subject matter of or was used in the commission of the offence, even though no person has been convicted of such offence.

(3) If there is no prosecution with regard to any timber or the proceeds of sale of the timber, or any conveyance, machinery, contrivance, equipment, book, record, document or other article seized under this Act, such timber or the proceeds of sale of the timber, or any conveyance, machinery, contrivance, equipment, book, record, document or other article shall be taken and deemed to be forfeited at the expiration of a period of one calendar month from the date of service of a notice to the last-known address of the person from whom the timber or the proceeds of sale of the timber, or any conveyance, machinery, contrivance, equipment, book, record, document or other article was seized indicating that there is no prosecution in respect of such timber or the proceeds of sale of the timber, or any conveyance, machinery, contrivance, equipment, book, record, document or other article unless before the expiration of that period a claim to it is made in the manner set out in subsections (4), (5), (6) and (7).

(4) Any person asserting that he is the owner of the timber or the proceeds of sale of the timber, or of the conveyance, machinery, contrivance, equipment, book, record, document or other article referred to in subsection (3) and that it is not liable to forfeiture may personally or by his agent authorized in writing, give written notice to the enforcement officer in whose possession such timber or the proceeds of sale of the timber, or the conveyance, machinery, contrivance, equipment, book, record, document or other article is held that he claims the timber or the proceeds of sale of the timber, or the conveyance, machinery, contrivance, equipment, book, record, document or other article.

(5) On receipt of the notice referred to in subsection (4), the enforcement officer shall refer the matter to the Director General who may direct that the timber or the proceeds of sale of the timber, or the conveyance, machinery, contrivance, equipment, book, record, document or other article be released or may direct the enforcement officer, by information in writing, to refer the matter to a Court.

(6) The Court to whom a matter is referred under subsection (5) shall issue a summons requiring the Board and the person asserting that he is the owner of the timber or the proceeds of sale of the timber, or of the conveyance, machinery, contrivance, equipment, book, record, document or other article and the person from whom it was seized to appear before the Court, and when a representative of the Board and the owner of the timber appear or any of them fails to appear, due service of the summons having been proved, the Court shall proceed to the examination of the matter.

(7) If it is proved that an offence under this Act has been committed and that the timber or the proceeds of sale of the timber, or the conveyance, machinery, contrivance, equipment, book, record, document or other article referred to in subsection (6) was the subject matter of or was used in the commission of such offence, the Court shall order the timber or the proceeds of sale of the timber, or the conveyance, machinery, contrivance, equipment, book, record, document or other article to be forfeited and shall, in the absence of such proof, order its release.

(8) Any timber or the proceeds of sale of the timber, or any conveyance, machinery, contrivance, equipment, book, record, document or other article forfeited or deemed to be forfeited shall be delivered to the enforcement officer and shall be disposed of in accordance with the directions of the Court.

(9) The Board shall not be liable to any person for any deterioration, no matter how arising, in the quality of any timber seized under this Act.

26R. Property right in forfeited timber, etc.

Any timber or the proceeds of sale of the timber, or any conveyance, machinery, contrivance, equipment, book, record, document or other article forfeited or taken and deemed to be forfeited under this Act shall be the property of the Board.

26S. Release of seized timber, etc.

Notwithstanding section 26q, the Director General or any enforcement officer authorized in writing by the Director General may, where he deems fit, at any time direct that any timber or the proceeds of sale of the timber, or any conveyance, machinery, contrivance, equipment, book, record, document or other article seized under this Act be released to the person from whose possession, custody or control it was seized.

26T. Enforcement officer may seek assistance to examine things related to offence

An enforcement officer may seek the assistance of a qualified person to examine any timber or the proceeds of sale of the timber, or any conveyance, machinery, contrivance, equipment, book, record, document or other article, seized or detained under this Act if such person has the necessary qualification to examine such timber or the proceeds of sale of the timber, or any conveyance, machinery, contrivance, equipment, book, record, document or other article for the purposes of an investigation under this Act.

26U. Power to take sample

(1) An enforcement officer may demand, select, take or obtain samples of any timber for the purposes of analysis without payment from any person planting, producing, selling or having possession of such timber or his or its agent or servant from whom the timber is procured.

(2) The procedure for taking and dealing with the samples shall be as prescribed by regulations.

26V. Power of the Board to require information on timber, etc.

(1) The Board may by notice in writing require any person undertaking any activity involving timber to furnish to the Board, within the time specified in the notice, information relating to timber.

(2) Any person who fails to furnish any information relating to timber as required under subsection (1) shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding two years or to both.

26W. Additional powers

(1) An enforcement officer shall, for the purposes of the implementation of this Act, have power to do all or any of the following acts:

(a) to require the production of records, accounts and documents from any person in relation to any case or offence under this Act and to inspect, examine and copy any of them;

(b) to require the production of any identification document from any person in relation to any case or offence under this Act; or

(c) to make such enquiry as may be necessary to ascertain whether the provisions of this Act have been complied with.

(2) Any person who fails to comply with the request made under subsection (1) shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding two years or to both.".

18. Deletion of sections 27, 27a, 27b, 27c, 27d, 27e, 27f, 27g, 27h and 27I

The principal Act is amended by deleting sections 27, 27a, 27b, 27c, 27d, 27e, 27f, 27g, 27h and 27I

19. Amendment of section 27J

Section 27J of the principal Act is amended by substituting for the words "five thousand ringgit or to imprisonment for a term not exceeding one year" the words "two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding three years".

20. Deletion of sections 27K and 28

The principal Act is amended by deleting sections 27k and 28.

21. Amendment of section 29

Section 29 of the principal Act is amended;-

(a) in subsection (1), by substituting for the words "section 27" the words "Part IVa"; and

(b) in subsection (2), by substituting for the words thousand ringgit" the words "one hundred "one thousand ringgit or to imprisonment for a term not exceding two years or to both".

22. New sections 29B, 29C, 29D, 29E and 29F

The principal Act is amended by inserting after section 29a the following sections:

29B. "Appointment of analyst

The Director General may appoint any qualified person to be an analyst for the purposes of carrying out an analysis on any timber and to certify its grade, species, size and any specification relating to timber.

29C. Certificate of analysis

(2) Where the Board intends to give in evidence any certificate referred to in subsection (1), it shall deliver a copy of such certificate to the accused not less than ten working days before the commencement of the trial.

29D. Examination or testing of seized timber

Where it is necessary to examine or test any timber seized under this Act, it shall be sufficient to examine or test only a representative sample of each different type or description of timber.

29E. Cost of holding seized timber, etc.

Where any timber, conveyance, machinery, contrivance, equipment, book, record, document or other article seized under this Act is held in the custody of the Board pending completion of any proceedings in respect of an offence under this Act, the cost of holding it in custody shall, in the event of any person being convicted of such offence, be a debt due to the Board by such person and shall be recoverable accordingly.

29F. No costs or damages arising from seizure to be recoverable

No person shall, in any proceedings before any Court in respect of the seizure of any timber, conveyance, machinery, contrivance, equipment, book, record, document or other article seized in the exercise or the purported exercise of any power conferred under this Act, be entitled to the costs of such proceedings or to any damages or other relief unless such seizure was made without reasonable cause.".

23. Amendment of section 30

Section 30 of the principal Act is amended by substituting for the words "section 27" the words "Part IVA" .

24. Substitution of section 30A

The principal Act is amended by substituting for section 30a the following section:

30a. "Institution and conduct of prosecution

(1) No prosecution for or in relation to any offence under this Act shall be instituted except by or with the written consent of the Public Prosecutor.

(2) Any officer of the Board authorized in writing by the Public Prosecutor may conduct the prosecution of any offence under this Act.".

25. Substitution of section 30B

The principal Act is amended by substituting for section 30b the following section:

30b. "Compounding of offences

(1) The Director General may, with the consent in writing of the Public Prosecutor, offer in writing to compound any offence committed by any person under this Act and prescribed to be a compoundable offence by regulations made under this Act by making a written offer to such person to compound the offence upon payment to the Board of such amount not exceeding fifty per centum of the amount of the maximum fine for that offence within such time as may be specified in the offer.

(2) An offer under subsection (1) may be made at any time after the offence has been committed, but before any prosecution for it has been instituted.

(3) If the amount specified in the offer under subsection (1) is not paid within the time specified in the offer or within such extended period as the Director General may grant, prosecution for the offence may be instituted at any time after that against the person to whom the offer was made.

(4) Where an offence has been compounded under subsection (1),no prosecution shall thereafter be instituted in respect of such offence against the person to whom the offer to compound was made and any timber or the proceeds of sale of the timber, or any conveyance, machinery, contrivance, equipment, book, record, document or other article seized in connection with the offence may be released or forfeited by the Director General, subject to such terms and conditions as the Director General deems fit to impose in accordance with the conditions of the compound.".

26. New sections 30C, 30D and 30E

The principal Act is amended by inserting after section 30b the following sections:

30C. "Protection of informers

(1) Except as provided in subsections (2) and (3), no witness in any civil or criminal proceedings shall be obliged or permitted to disclose the name or address of an informer or the substance of the information received from him or to state any matter, which might lead to his discovery.

(2) If any book, record, account, document or computerized data which is in evidence or liable to inspection in any civil or criminal proceedings contains any entry in which any informer is named or described or which might lead to his discovery, the Court shall cause all such passages to be concealed from view or to be obliterated so far only as may be necessary to protect the informer from discovery.

(3) If on the trial for any offence under this Act the Court after full enquiry into the case believes that the informer wilfully made in his complaint a material statement which he knew or believed to be false or did not believe to be true,or if in any other proceedings the Court is of the opinion that justice cannot be fully done between the parties in that proceedings without the discovery of the informer, the Court may require the production of the original complaint, if in writing, and permit enquiry and require full disclosure, concerning the informer.

30D. Public Authorities Protection Act 1948

The Public Authorities Protection Act 1948 [Act 198] shall apply to any action, suit, prosecution or proceedings against the Board, or against any member, any member of a committee, or any officer, servant or agent of the Board, in respect of any act, neglect or default done or committed capacity. by it or him in such

30E. Power to exempt

(1) The Minister may by order published in the Gazette exempt any person, class of persons or any activity in relation to timber from all or any of the provisions of this Act.

(2) The Minister may impose such terms and conditions as he thinks fit on any exemption under subsection (1).".

27. Substitution of section 32

The principal Act is amended by substituting for section 32 the following section:

32. "Amendment of Schedules

The Minister may, after consultation with the Board, Gazette.". amend the Schedules by order published in the

28. Amendment of section 33

Section 33 of the principal Act is amended by substituting for the words "five thousand ringgit or to imprisonment for a term not exceeding one year" the words "one hundred thousand ringgit or to imprisonment for a term not exceeding two years".

29. Substitution of section 33A

The principal Act is amended by substituting for section 33a the following section:

33A. "Offence committed by body corporate

(1) Where a body corporate commits an offence under this Act, any person who at the time of the commission of the offence was a director, manager, secretary or other similar officer of the body corporate or was purporting to act in any such capacity or was in any manner or to any extent responsible for the management of any of the affairs of the body corporate or was assisting in such management:-

(a) may be charged severally or jointly in the same proceedings with the body corporate; and

(b) where the body corporate is found guilty of the offence, shall be deemed to be guilty of that offence unless, having regard to the nature of his functions in that capacity and to all circumstances, he proves:-

(i) that the offence was committed without his knowledge, consent or connivance; and

(ii) that he took all reasonable precautions and had exercised due diligence to prevent the commission of the offence.

(2) Where any person would be liable under this Act to any punishment or penalty for his act, omission, neglect or default, he shall be liable to the same punishment or penalty for every such act, omission, neglect or default of any employee or agent of his, or of the employee of the agent, if the act, omission, neglect or default was committed:-

(a) by his employee in the course of his employment;

(b) by the agent when acting on his behalf; or

(c) by the employee of the agent in the course of his employment by the agent or otherwise on behalf of the agent.".

30. Deletion of section 33B

The principal Act is amended by deleting section 33B.

31.Amendment of section 34

 Section 34 of the principal Act is amended:-

(a) in subsection (1) :-

(i) by inserting after paragraph (b) the following paragraph:

"(ba) prescribe the timber species which is prohibited from being exported or imported;"; and

(ii) by substituting for paragraph (c) the following paragraph:

"(c) prescribe the form for the notice of seizure under subsection 26k(4); and;";

(b) in subsection (2):-

(i) in paragraph (c), by substituting for the words "mills, yards and jetties" the words "the premises";

(ii) by substituting for paragraph (e) the following paragraph:

"(e) prescribe the procedure to be followed, the form to be used and the fees to be paid by the exporters or importers in the exportation or importation of timber;"; and

(iii) by inserting after paragraph paragraphs: (e) the following:

"(ea) prescribe the procedure for the planting and the selection of timber species for forest plantation;

(eb) prescribe the processing of forest plantation produce;

(ec) prescribe the management of and financial procedure for forest plantation;

(ed) prescribe the execution of any forest plantation activity;

(ee) prescribe the manner to regulate the transshipment of timber and timber in transit;

(ef) prescribe the procedure for the recognition, certification and endorsement and fee relating to the timber industry;

(eg) prescribe the procedure for timber verification services and the charges or fees which shall be paid by any person who applies for any technical and timber verification advisory services;"; and

(c) by inserting after subsection (2) the following subsection:

"(3) Regulations made under subsections (1) and (2) may prescribe any act in contravention of the regulations to be an offence and may prescribe penalties of a fine not exceeding one hundred and fifty thousand ringgit or to imprisonment for a term not exceeding two years or to both.".

32. Amendment of First Schedule

The principal Act is amended by substituting for the First Schedule the following Schedule:

"FIRST SCHEDULE

[section 2]

DEFINITION OF TIMBERS

33. Amendment of Second Schedule

Subparagraph 2(2) of the Second Schedule to the principal Act is amended by substituting for the word "ten" the word "eight".

34. Substitution of Third Schedule

The principal Act is amended by substituting for the Third Schedule the following Schedule:

"THIRD SCHEDULE

[section 2 and subsection 5(1)]

RECOGNIZED ASSOCIATIONS

35. New Fourth Schedule

The principal Act is amended by inserting after the Third Schedule the following Schedule:

"FOURTH SCHEDULE

[subsection 12(4a)]

1. Power of Board to make regulations in respect of corporation

The Board shall, on or before the date on which any corporation is established under section 12, make regulations in respect of such corporation defining:-

(a) the purposes and objects for which the corporation is established;

(b) the rights, powers, duties and functions of such corporation;

(c) the system of management thereof; and

(d) the relations between such corporation and the Board and the Board’s rights of control over such corporation.

2. Limitation on power to establish corporation

Nothing in paragraph 1 shall be deemed to authorize the Board to make regulations for any purpose or object more extensive in scope than the purposes or objects for which the Board has been constituted or to confer on any corporation any right, duty, power or function which is not within the rights, duties, powers or functions of the Board under this Act.

3. Effect of regulations

Subject to the provisions of this Act and of any regulations made under section 34, any regulations made under paragraph 1 shall be binding on the corporation in respect of which they were made and shall have effect for all purposes as if they had been enacted in this Act.

4. Amendment of regulations

The Board may at any time amend, revoke or add to any regulations made corporation. under paragraph 1 in respect of any

5. Register of corporations

The Board shall keep a register in the prescribed form of all corporations established by it under section 12 and such register, together with copies of all regulations made under paragraphs 1 and 4, shall be open to public inspection at such place or places and at such time as it may prescribe.

6. Winding up

(1) The Board may, with the approval of the Minister, by order published in the Gazette, direct that any corporation established by it be wound up and dissolved.

(2) Upon the dissolution of any corporation under this paragraph, the assets of the corporation after discharging all its liabilities shall be transferred to and shall vest in the Board.

(3) The winding up of a corporation under this paragraph shall be conducted in such manner as the Board may prescribe.

7. Corporations to be bodies corporate

Every corporation established under section 12 shall be a body corporate by such name as the Board shall give to it and shall have perpetual succession and a common seal and may sue and be sued in such name and, for the purpose of carrying into effect the project, scheme or enterprise for which it has been established, may enter into contracts, and may hold and deal in or with any immovable or movable property and may do all other matters and things incidental or appertaining to a body corporate not inconsistent with the provisions of this Act and subject to such restrictions or limitations as may be prescribed by the Board in each case.

8. Common seal

(1) Every corporation shall have a common seal which shall bear such device as the corporation, with the approval of the Board, may approve and such seal may be broken, changed, altered or made anew as the corporation, with the approval of the Board, deems fit.

(2) Until a seal is provided by the corporation, a stamp bearing the name of the corporation may be used and shall be deemed to be the common seal corporation. of the

(3) The common seal shall be kept in the custody of such person as may be authorized by the corporation, and shall be authenticated by such person; and all deeds, documents and other instruments purporting to be sealed with the said seal, authenticated as aforesaid, shall, until the contrary is proved, be deemed to have been validly executed:

Provided that any document or instrument which if executed by a person not being a body corporate would not be required to be under seal may in like manner be executed by the corporation; and any such document or instrument may be executed on behalf of the corporation by any officer or servant of the corporation generally or specially authorized by the corporation in that behalf.

(4) The common seal of every corporation shall be officially and judicially noticed.".

36. Continuance of pending applications, etc.

All applications, approvals or decisions, on appeal or otherwise, pending under the principal Act before the coming into operation of this Act shall be dealt with by the Board under provisions of the principal Act as amended in this the relevant Act.

37. Cessation of members of the Board

The members of the Board who held office on the date of the coming into operation of this Act shall cease to hold office on that date.

38. Validation and immunity

(1) Any loans given to corporations, companies and persons by the Board through the loan facility agreements under the Forest Plantation Programme during the period from 1 January 2006 to 21 January 2008 are validated and declared to have been lawfully given.

(2) No action or legal proceedings may be brought, instituted or maintained against the Board, officers of the Board or any person acting under their authority or on their behalf in respect of the loans given and if any such action or proceedings have been brought, instituted or maintained, the action or proceedings shall be discharged and made void.

EXPlANATORY STATEMENT

This Bill seeks to amend the Malaysian Timber Industry (Incorporation) Board Act 1973 ["Act 105"].

2. Clause 1 contains the short title and the power of the Minister to appoint the commencement date of the proposed Act.

3. Clause 2 seeks to amend section 2 of Act 105 to introduce new definitions and to amend existing definitions used in Act 105. Amongst others:-

(a) a new definition of "domestic market" is inserted to clarify that domestic market means a market within Malaysia;

(b) a new definition of "enforcement officer" is inserted, consequent upon the introduction of a new Part enforcement; IVA on the power relating to

(c) a new definition of "forest plantation" is inserted following the introduction of the new functions of the Board relating to forest plantation;

(d) the definition of "grading authority" is amended to reflect that only the Director General of the Malaysian Timber Industry Board is the grading authority;

(e) a new definition of "in transit" is inserted to include the power of the Board to inspect any timber and document in transshippment.

In addition, clause 2 seeks to provide that the principal Act shall not derogate the provisions of the National Forestry Act 1984 [Act 313] or any other written laws relating to forestry.

4. Clause 3 seeks to amend section 4 of Act 105 to amend the composition of the membership of the Board.

5. Clause 4 seeks to amend section 9 of Act 105 to empower the Board to appoint, with the approval of the Minister, such number of Deputies Director General, officers and servants of the Board, including Quality Control Inspectors.

6. Clause 5 seeks to introduce a new section 9C to empower the Director General to delegate his powers or duties to any officer of the Board.

7. Clause 6 seeks to amend subsections 12(1) and (2) of Act 105 to provide for the new functions and powers of the Board.

8. Clause 7 seeks to amend Act 105 to introduce a new section 12A into Act 105. The proposed new section provides for the powers of the Board to delegate its functions and powers, other than the power to make regulations and rules, to the Chairman, Director General, Committee or any officer of the Board.

9. Clause 8 seeks to amend section 13 of Act 105 to provide for the prohibition against the carrying out of certain activities without registration.

10. Clause 9 seeks to delete section 13a of Act 105 consequent upon the introduction of a new section 30e on the power of the Minister to exempt.

11. Clause 10 seeks to amend section 14 of Act 105 to provide for the requirement for an application for registration to be made to the Board for persons who intend to carry out the activities listed under section 13 of the Act.

12. Clause 11 seeks to amend section 15 of Act 105 to provide for the keeping of a register of persons registered under section 14 of the Act.

13. Clause 12 seeks to introduce new sections 18A and 18B into Act 105. The proposed new section 18a seeks to provide for the duty of the exporter or importer to make a declaration to the Board in respect of timber exported or imported. The proposed new section 18b seeks to provide for the presumption of export.

14. Clause 13 seeks to amend section 19 of Act 105 to provide that all monies acquired in or arising from any property, investment, mortgage, lease, tenancy, charge or debenture acquired by or vested in the Board including any profits gained from the corporations or companies established under this Act and monies earned by the operation of any project, scheme or enterprise shall be paid into the Fund. Clause 13 also seeks to provide for the expenditure that may be charged on the Fund.

15. Clause 14 seeks to amend section 20 of Act 105 to empower the Minister to specify the amount, rates and manner of collection for different types of timber in relation to different persons or different classes of persons. The proposed amendment also provides that it shall be an offence for the person to fail or to refuse to pay the cess imposed and that any cess imposed shall be a debt due to the Board which may be recovered by the Board in any court.

16. Clause 16 seeks to amend section 21 of Act 105 to provide that any State may make a contribution to the Fund.

17. Clause 17 seeks to introduce a new Part IVA into Act 105 to make provisions relating to the powers of enforcement, seizure, arrest, etc.

18. Clauses 19, 21 and 28 seek to amend sections 27J, 29 and 33 respectively to increase the penalties for offences under those sections.

19. Clause 22 seeks to introduce new sections 29B, 29C, 29D, 29E and 29F into Act 105 relating to the appointment of analyst, certificate of analyst, examination or testing of seized timber, cost of holding seized timber, cost and damages not recoverable.

20. Clauses 24 and 25 seek to substitute sections 30A and 30B of Act 105 respectively to provide that the institution and conduct of prosecution and compounding of offences shall be carried out only with the consent of Public Prosecutor.

21. Clause 26 seeks to introduce new sections 30C, 30D and 30E into Act 105. The proposed new section 30C seeks to provide for protection of informers. The proposed new section 30d seeks to provide that the Public Authorities Protection Act 1948 [Act 198] shall apply to any action, suit, prosecution or proceedings against the Board, its members or members of the committee, officers, servants or agents of the Board. The proposed new section 30e seeks to empower the Minister to exempt any person from the provisions of the Act.

22. Clause 31 seeks to amend section 34 of the Act 105 to provide for the power of the Minister to make rules or regulations on certain activities.

23. Clauses 32, 33, 34 and 35 each seeks to amend the First Schedule, Second Schedule and Third Schedule of Act 105 and to introduce the new Fourth Schedule into Act 105 respectively. The amendment to the First Schedule in clause 32 seeks to provide for the list of timber definitions. The amendment to the Third Schedule in clause 34 seeks to amend the existing names of recognized associations. Clause 35 seeks to introduce a new Fourth Schedule into Act 105 to make provisions pertaining to the corporation established under Act 105.

24. Clause 36 seeks to provide that applications, approvals or decision, on appeal or otherwise, pending under the principal Act shall be dealt with by the Board under the principal Act as amended.

25. Clause 37 seeks to provide that the members of the Board who hold office on the date of coming into operation of the Act shall cease to hold office on that date.

26. Clause 38 seeks to validate the loans given by the Board to corporations, companies and persons from 1 January 2006 to 21 January 2008 under the Forest Plantation Programme and the immunity from any legal proceedings pertaining to the loans given.

27. Other amendments not specifically dealt with in this Statement are minor or consequential in nature.

FINANCIAL IMPLICATIONS

This Bill will involve the Government in extra financial expenditure the amount of which cannot at present be ascertained.