1. Introduction
2. Definitions
3. Grades and Specifications
4. Documentation
5. Obligations of the Exporter
6. Responsibilities of the Grader
7. Pre-shipment Inspection and Documentation
8. Post-shipment Inspection
9. Notice of Claim
10. Resolution of Disputes
11. Arbitration Rules

Appendix I - Panel of Timber Experts

Appendix II - Panel of Arbitrators

Useful Contacts

 

1. Introduction

The aims of the Singapore Timber Trade Procedure (STTP) are to further enhance Singapore's status as a source of reliable timber supply by:

a. setting out the minimum standards of good practices for timber trading, and
b. providing the basis for fair and conciliatory resolution of timber trade disputes.

Every timber trading company in Singapore is encouraged to follow the STTP. The STTP covers good trade practices which are currently applied by members of the trade. Some of these practices are streamlined and packaged as minimum standards which when used by the timber exporters and buyers will serve to create greater transparency in the transactions, safeguard their positions and reduce the likelihood of trade disputes.

The STTP has also made available special procedures for the resolution of disputes arising from non-compliance by conciliation. If conciliation fails, the parties concerned can then proceed to resolve the disputes by arbitration under the auspices of Singapore International Arbitration Centre (SIAC). In this connection, the STTP provides for a Panel of Timber Experts and a Panel of Arbitrators from which assistance may be sought for the resolution of such disputes.

In order to ensure that these provisions are effective in resolving disputes, it is essential for exporters in Singapore to advise their buyers of the STTP and to ensure that should any disputes arise, they be settled on the basis as laid down by the STTP.

 2. Definitions

For the purpose of this procedure, the following definitions are made:

• 'Timber' refers to logs, sawn timber and plywood
• 'IE' refers to the IE Singapore
• 'SIAC' refers to the Singapore International Arbitration Centre
• 'TTAC' refers to the Timber Trade Advisory Committee appointed by IE
• 'MTIB' refers to the Malaysian Timber Industry Board
• 'MGR' refers to the Malaysian Grading Rules for Sawn Hardwood Timber in force as the time of signing the contract
• 'Exports' means to take timber or cause timber to be taken out of the territories of Singapore and/or East Malaysia
• 'Exporter' means a person carrying on the business of export of timber in Singapore whether as a registered sole proprietor, or a partnership, or a company incorporated in Singapore
• 'Buyer' means a person who buys timber from an exporter
• 'Grader' means a person who holds a valid certificate of competency in the grading of timber issued by IE or MTIB
• 'Grading Summary' refers to the document prepared by a Grader upon completion of his grading of a timber consignment
• 'Timber Expert' refers to a member of the Panel of Timber Experts appointed by the TTAC (please see Appendix I for the list of members of Panel of Timber Experts)
• 'Arbitrator' refers to a member of the Panel of Arbitrators appointed by the TTAC (please see Appendix II for the list of members of Panel of Arbitrators)

3. Grades and Specifications

3.1 - Exporters are advised to enter into an agreed detailed specification with their Buyers for the export of timber.

3.2 - For sawn timber, unless upgraded or when grading is not required or unless other rules under which grading is required are specified, the latest edition of the MGR in force at the time of the Contract shall apply.

3.3 - For plywood, unless ungraded or when grading is not required or unless other rules under which grading is required are specified, the rules of the Japanese Panel Industry Council shall apply.

3.4 - For logs unless graded or when grading is not required or unless other rules under which grading is required are specified, the Sarawak Grading Rules shall apply.

4. Documentation

4.1 - Documentation is an important part of the timber trade. In the course of their business, Exporters would often be required to apply for or obtain a number of documents from authorities or agencies to substantiate their export transactions. Hence, Exporters shall maintain a complete record of documents, exchanges of letters, telexes and fax messages etc with their Buyers separately for each consignment exported.

4.2 - For the purpose of this Procedure, an export transaction shall include the following documentation unless the Buyer specifies otherwise:

• Grading summary (where applicable)
• Invoice(s)
• Packing list(s)
• Bill(s) of Lading (where applicable)
• Phytosanitary Certificate (where applicable)
• Any other documents as may be specified in the contract

5. Obligations of the Exporter

5.1 - In every timber export, the Exporter shall:

5.1.1 - ensure that the grades and specifications requested by the Buyer fall within recognised grading rules and within manufacturing tolerances without affecting the quality of the timber to be ordered. Where the agreed grading and specifications fall outside the scope of established grading rules and manufacturing processes, the same shall be specified in the Contract.

5.1.2 - disclose to the Buyer all detailed specifications of the consignment to be exported including details of species, period(s) of shipment, method of payment, bundling or packaging requirement (if any) and any other conditions.

5.1.3 - provide the Buyer with all the documents as mentioned under Section 4 of this procedure, the Exporter may be relieved from submitting any of the documents only with the written consent of the Buyer.

5.2 - The Exporter shall exercise prudent commercial judgement in identifying reliable supplies of timber as per the specifications ordered. Size tolerance and seasoning periods should be on the basis of MGR or as per agreed rules (see Section 3).

5.3 - For sawn timber, unless grading is not required or is specifically waived by the Buyer or unless the Buyer agrees that grading certificates issued at the country of origin are acceptable, the Exporter shall ensure that the timber to be exported shall be graded by a grader.

5.4 - The Exporter shall be responsible for the bundling or packaging of timber for shipment as customarily required or in the manner requested by the Buyer.

5.5 - Unless otherwise specified in the contract, Exporters shall ensure that timber exported by them contain the relevant identification marks.

5.6 - The Exporter shall be responsible to the Buyer for the performance of their obligations under the contract.

5.7 - The Exporter and Buyer shall agree that any dispute arising out of the contract be resolved in accordance with Section 10 thereof.

6. Responsibilities of the Grader

6.1 - Before accepting an assignment to grade a timber consignment, the Grader shall:

6.1.1 - obtain from them details of full specifications (grade, sizes, moisture content etc), including tolerances (length, width, thickness, quantity etc), species, date of delivery, identification marks to be stenciled on timber and other instructions clearly in connection with the grading of the parcel. Only after ensuring that the specifications are within the provisions of the agreed grading rules or MGR, shall the grader agree to undertake the full grading of the parcel.

6.1.2 - ensure that the timber to be graded is seasoned as per MGR or the agreed grading rules and relevant instruction manuals issued by the grading authority.

6.2 - The Grader shall maintain tally sheets of their grading work for the purpose of preparing the grading summary.

6.3 - The Grader shall ensure that the following information is set out in the grading summary:

a. Place of grading
b. Date(s) of grading
c. Grades
d. Volume in cubic metres
e. Number of pieces and metres run
f. Thickness and widths
g. Name of Exporter/Buyer
h. Contract No
i. Seasoning period
j. Species of Timber
k. Name of the grader

6.4 - The Grader shall put identifiable marks on timber graded by them.

7. Pre-shipment Inspection and Documentation

7.1 - Upon completion of pre-delivery procedures and when the timber is ready for shipment, the Exporter shall not less than 14 days before date of scheduled loading days (or such period as may be agreed) notify the Buyer to inspect the timber at port of loading. Unless otherwise agreed the Exporter shall be at liberty, irrespective of whether the Buyer requires inspection, to ship the timber in accordance with the agreed shipment date.

7.2 - At the pre-shipment inspection the Exporter shall make available to the Buyer all tally sheets, grading summaries, packing lists and evidence of intended shipment, if required. This procedure would help to reduce the likelihood of the consignment ending in a dispute after delivery has been made to the destination.

7.3 - The Exporter shall be responsible to ensure that the timber will be ready for the inspection. If the timber is not ready for inspection upon arrival of the Buyer, the Exporter shall be liable for the expenses incurred by the Buyer in connection with the abortive or delayed inspection.

7.4 - At the pre-shipment inspection, upon satisfying himself on the quality and the manner in which the timber is prepared for shipment, the Buyer or his representative shall give his approval or authorization of shipment in writing to the exporter. The Buyer or his representative may also make his own identification markings on the timber.

8. Post-shipment Inspection

8.1 - The Buyer shall within 14 days upon delivery, inspect the goods to determine their condition. A detailed tally on the measurements/quantity delivered, species and condition of the goods, and any defects found or observed shall be maintained by the Buyer.

8.2 - If the Buyer is satisfied that the condition of timber is in compliance with the terms of the contract, the Buyer may remove the timber from the premises of first storage.

8.3 - If the Buyer is dissatisfied with the condition of the timber or believe that there is non-compliance with any of the terms of the contract, the Buyer shall not remove any part of the consignment from the premises of first storage without the written consent of the Exporter.

8.4 - The Buyer may with the written consent of the Exporter take delivery of the said amount of that part of a timber consignment not in dispute. Such consent shall not be unreasonably withheld.

9. Notice of Claim

9.1 - Notice of any claim by the Buyer arising out of the consignment or the contract shall be made within 21 days from the date of delivery of the goods or from the date the goods ought to have been delivered. Any claim notice for which has not been given as aforesaid shall be waived and absolutely barred.

9.2 - Where a claim relates to the quantity or quality of the goods, the Buyer shall include in the notice of claim an invitation to the Exporter for a joint appointment of a Timber Expert to conduct a survey of the goods within the premises of first storage.

9.3 - If within 14 days of such invitation, no agreement is reached with regards to a joint appointment of a Timber Expert, each party shall be at liberty to appoint his Timber Expert to conduct a joint survey within the premises of first storage.

9.4 - If no settlement is reached upon the survey or the joint survey (as the case may be), the report of the Timber Expert or the 2 Timber Experts shall be submitted to the tribunal in the arbitration.

9.5 - If any party fails to appoint their Timber Expert for the joint survey after more than 14 days' notice having been given to do so, the Timber Expert appointed by a party shall proceed with the survey and submit to the tribunal in the arbitration.

9.6 - If no notice of claim is given as aforesaid, the Buyer shall be deemed to have accepted the timber and waive any alleged noncompliance with the contract.

10. Resolution of Disputes

10.1 - The STTP provides the basis for the resolution of disputes relating to the sale and purchase of timber by conciliation failing which by arbitration to be administered by the SIAC in accordance with the procedures set out in Section 11 hereof.

10.2 - In the event of any dispute, the Timber Expert jointly appointed by the parties or the Timber Experts separately appointed shall be at liberty to discuss with each other and with the parties whether in the presence of each other or separately, but always in a just and lawful manner, to explore possibilities of resolving the matters in dispute amicably. Any resolution reached in the course of the discussions shall be reduced in writing.

10.3 - If no final settlement is reached upon the survey or joint survey, the parties shall refer all or any outstanding matters in dispute to the SIAC for resolution by arbitration.

10.4 - The findings of the SIAC and/or the tribunal shall be made available to the IE.

11. Arbitration Rules

11.1 - APPLICATION. The provision herein (hereinafter referred to as 'the Rules') shall apply to all disputes arising out of any contract for the sale and purchase of timber where parties thereto expressly provide for or submit their dispute for arbitration under the STTP.

11.2 - DEFINITION. As used herein,

• 'IE' means Singapore Trade Development Board.
• 'SIAC' means Singapore International Arbitration Centre.
• 'Registrar' means the Registrar and includes the Assistant Registrar of the SIAC.
• 'the Panel' means the current list of persons available to serve as arbitrators under these Rules.
• 'Tribunal' means the arbitrator appointed.

11.3 - COMMENCEMENT. A party claiming under any agreement to which these provisions apply shall serve notice thereof to the Registrar giving the following particulars:

• full names and addresses of the parties;
• name of the person agreed by the parties to act as the sole arbitrator or the name of the arbitrator nominated by the claimant; and
• brief particulars of the terms of contract.

11.3.1 - Every Notice shall be accompanied by:

• a Statement of Case stating in full detail which of the facts and contentions of law on which the claimant relies and the reliefs claimed, and
• the filing fee under the Rule 11.7.1

11.3.2 - A copy of the Notice and the Statement of Case shall be served on the Respondents.

11.3.3 - The Respondents shall within 21 days upon receipt of the Notice and the Statement of Case, file and serve a Statement of Defence stating in full detail which of the facts and contentions of law in the Statement of Case it admits or denies, on what grounds, and on what other facts and contentions of law it relies. If a counterclaim is made, details of the counterclaim shall be filed.

11.3.4 - All Statements must be accompanied (where relevant) by copies of:

• Grading Summary
• Invoice(s)
• Packing List(s)
• Bill(s) of Lading
• Joint Inspection Report or Timber Expert's Report
• STIMCON
• such other documents which the party seeks to rely

11.3.5 - The Registrar shall as soon as practicable, take all necessary steps to ensure that the Tribunal is fully and properly constituted and cause all Statements and document filed to be delivered to the Tribunal.

11.4 - POWERS

11.4.1 - Without prejudice to any powers elsewhere granted herein or by virtue of any application law, the Registrar and the Tribunal shall have the powers to:

• determine the rules of law governing or applicable to the contract, or issue between the parties or act as amiable compositeurs or make an award ex aequo et bono;
• allow other parties to be joined in the arbitration with their express consent, and make a single final award determining all disputes between them;
• allow any party, upon such terms (as to cost and otherwise) as it shall determine, to amend claims and counterclaims;
• extend or abbreviate any time limits provided by these provisions or by its directions;
• conduct such enquiries as may appear to the Registrar or the Tribunal to be necessary or expedient;
• order the parties to take samples or make any property or thing available for inspection, in their presence, by the Registrar or the Tribunal or any timber expert;
• order the preservation, storage, sale or other disposal of any property which is the subject matter of the dispute;
• orer any party to produce to the Registrar or the Tribunal, and to the other parties for inspection, and to supply copies of, any documents or classes of documents in their possession or power which the Registrar or the Tribunal determines to be relevant;
• allow, refuse or limit the appearance of witnesses, whether witnesses of fact or expert witnesses;
• proceed with the arbitration and make the award based on best available information, not withstanding the failure by any party to submit any document or to avail itself the opportunity to present its case.

11.5 - HEARING

11.5.1 - Unless parties otherwise agree or the Tribunal in its discretion so decides, the arbitration shall proceed on documents only.

11.5.2 - Where oral evidence or argument is directed the hearing should not exceed 2 days.

11.5.3 - The hearing shall be held at the SIAC or at such place as the Registrar shall designate.

11.5.4 - Any party may be represented by legal practitioners or any other representatives.

11.6 - AWARD

11.6.1 - An award shall be in writing and may contain directions as regards the disposal of any property or security lodged or furnished. Except where the amount of the claim or counterclaim as appearing from the pleadings does not exceed S$100,000/-, the Tribunal shall state its reasons for the award.

11.6.2 - The Tribunal may also award:

• interests at such rate whether on simple or on compound basis
• costs

whether or not such are claimed by any party

11.6.3 - An award shall be final, binding and enforceable in accordance with its terms. Any right of appeal to a Court of Law is expressly excluded.

11.6.4 - The Tribunal must make an award within 21 days from the final date when all documents or submission are due where the case proceeds on documents only; or if oral hearing is ordered, after close of hearing.

11.6.5 - An award made by the Tribunal shall be delivered to the Registrar who shall transmit certified copies to the parties and to the IE.

11.7 - FEES

11.7.1 - The following fees are payable by the claimants in the first instance but may be recoverable in accordance with the terms of the Award.

• Filing Fee - S$400.00 (Due on filing of the Notice under Rule 11.3)
• Appointment Fee - S$800.00 (Due on the appointment of an arbitrator)
• Hearing Fee - S$1200.00 per day (Payable before the commencement of oral hearing or before the award is made or as directed by the Registrar)

11.7.2 - All fees are payable to the SIAC.

11.8 - ARBITRATORS. All arbitrators to be appointed for the arbitration under these Rules shall be appointed from the Panel of Arbitrators appointed by the Timber Trade Advisory Committee of the IE.

11.9 - GENERAL. In all matters not expressly provided for in these Rules, the Registrar and the Tribunal shall act in the spirit of these Rules and shall make every reasonable effort to ensure that the disputes are resolved expeditiously and fairly and the awards legally enforceable.

Appendix I - Panel of Timber Experts

TERMS AND REFERENCE

1. Members of the Panel may from time to time be appointed by any Party/ties to undertake inspection/surveys of disputed timber cargo.

2. The Timber Expert when appointed by disputing Party/ties involved in a timber trade dispute is:

• to conduct an objective survey of the timber concerned.
• to facilitate conciliation between disputing parties, and
• to write and submit survey reports to the tribunal in arbitration if no settlement is reached upon the survey.

3. The Timber Expert has the right to reject engagement/s.

4. The Timber Expert may receive such remuneration as may be negotiated with the Party/ties concerned.

5. For assignments requiring overseas travelling, the cost of transportation and accommodation will be covered by the Party/ties concerned.

6. The form and mode of payment will be negotiated and jointly determined by the Timber Experts and the Party/ties concerned.

TIMBER EXPERTS/CONTACT/SPECIFIC EXPERTISE
Mr ANG Yew Kiat Tradewell International Pte Ltd 89 Short Street, #04-09 Golden Wall Centre, Singapore 188216 Tel: (65) 6338-1511 Fax: (65) 6336-0559 Expertise: Specialty Timber	Mr Anthony LO Anrobois Trading Pte Ltd 111 North Bridge Rd, #17-03 Peninsula Plaza, Singapore 179098 Tel: (65) 6336-6226 Fax: (65) 6337-1287 Expertise: Sawn Timber and Logs
Mr CHONG Ha Lee Hong Huat Timber Trading (Pte) Ltd 25 Sungei Kadut Street 2, Singapore 729239 Tel: (65) 6269-0171 Fax: (65) 6368-2710 Expertise: Sawn Timber and Logs	Mr CHUA Chin Seong Kim Guan Industries Pte Ltd 7 Jalan Papan Jurong Town, Singapore 619397 Tel: (65) 6265-5566 Fax: (65) 6265-3828 Expertise: Sawn Timber and Logs
Mr Gumbrell ROGER A Scanply International Wood Products Ltd 36 Robinson Road, #14-01, City House, Singapore 068877 Tel: (65) 6225-9986 Fax: (65) 6225-9930 Expertise: Plywood and Veneer	Mr Yusufi YAQUBALI Shebab International Pte Ltd 112 Tanjong Pagar Road, Singapore 088528 Tel: (65) 6224-2426 Fax: (65) 6224-9730 Expertise: Sawn Timber
Mr KOH Bon Pock Eastern Union Trading & Sawmil Co Pte Ltd 70 Sungei Kadut Street 1, Singapore 729371 Tel: (65) 6269-3061 Fax: (65) 6367-8843 Expertise: Sawn Timber and Logs	Mr Olier Andre GUY 17 Allee dela Reinette, 76380 Canteleu, France Tel: (33)3536-1830 Fax: (33)3283-3223 Expertise: Sawn Timber and Logs
Mr TAN Chen Chat Chinsam Trading (Pte) Ltd 2A Sungei Kadut Drive, Singapore 729554 Tel: (65) 6368-1122 Fax: (65) 6368-1126 Expertise: Sawn Timber	Mr TOH Yew Lye Toh Brothers Timber Pte Ltd 7 Jalan Papan, Singapore 619397 Tel: (65) 6265-8861 Fax: (65) 6264-1008 Expertise: Sawn Timber
Mr Victor NAI Goldtim Enterprises 133 new Bridge Rd, #22-10, Chinatown Point, Singapore 059413 Tel: (65) 6538-4473 Fax: (65) 6538-4814 Expertise: Sawn Timber	Mr Shabbir HASSANBHAI Indo Straits Trading Co (Pte) Ltd 10 Howard Road, Singapore 369582 Tel: (65) 6282-4349 Fax: (65) 6287-0690 Expertise: Sawn Timber, Logs and Teak

Appendix II - Panel of Arbitrators

TERMS AND REFERENCE

1. Members of the Panel may from time to time be appointed to sit as an arbitral tribunal and conduct an arbitration under the Arbitration Rules of the Singapore Timber Trade Procedure (STTP).

2. When sitting as a tribunal, the Arbitrator shall:

• conduct the arbitration to the best of his ability and shall give to the arbitration such time and attention which parties are reasonably entitled to expect.
• act independently and impartially.
• acquaint himself with the facts and arguments relative to the matters in dispute.
• adhere to the procedure and within the powers granted to him under the Arbitration Rules of the STTP.
• not make any unilateral arrangements with any of the parties or their counsel for any fees or expenses without the agreement of the Registrar SIAC.
• keep confidential all information which he may acquire during the course of the proceedings, and
• render an award on the matters in dispute and to give reasons for the award if the claim or counterclaim exceeds S$100,000.

3. The Arbitrator when appointed for any arbitration will be remunerated by the Singapore International Arbitration Centre (SIAC) for work done in relation to the conduct of the arbitration.

ARBITRATORS/CONTACT/SPECIFIC EXPERTISE
Mr ANG Yew Kiat Tradewell International Pte Ltd 89 Short Street, #04-09 Golden Wall Centre, Singapore 188216 Tel: (65) 6338-1511 Fax: (65) 6336-0559 Expertise/Profession: Specialty Timber	Mr Anthony LO Anrobois Trading Pte Ltd 111 North Bridge Rd, #17-03 Peninsula Plaza, Singapore 179098 Tel: (65) 6336-6226 Fax: (65) 6337-1287 Expertise/Profession: Sawn Timber and Logs
Mr Anwarul Haque Bin MANIRUDDIN Haridass Ho and Partners 24 Raffles Place, #18-00, Clifford Centre, Singapore 048621 Tel: (65) 6533-2323 Fax: (65) 6533-1579 Expertise/Profession: Arbitrator, Lawyer	Mr Lawrence BOO CEO Singapore International Arbitration Centre 1 Coleman Street, #05-08 The Adelphi, Singapore 179803 Tel: (65) 6334-1277 Fax: (65) 6334-2942 Expertise/Profession: Arbitrator, Lawyer
Mr CHEW Kwee Hoe Leslie Khattar Wong and Partners 80 Raffles Place, #25-01 OUB Plaza 1, Singapore 048624 Tel: (65) 6531-4000 Fax: (65) 6535-1030 Expertise/Profession: Lawyer	Mr Jude P. BENNY Joseph Tan Jude Benny and Scott 2 Mistri Road, #14-00, HMK Building, Singapore 079624 Tel: (65) 6220-9388 Fax: (65) 6225-7827 Expertise/Profession: Lawyer
Mr Shabbir HASSANBHAI Indo Straits Trading Co (Pte) Ltd 10 Howard Road, Singapore 369582 Tel: (65) 6282-4349 Fax: (65) 6287-0690 Expertise: Sawn Timber, Logs and Teak	Mr Olier Andre GUY 17 Allee dela Reinette, 76380 Canteleu, France Tel: (33)3536-1830 Fax: (33)3283-3223 Expertise: Sawn Timber and Logs

Any other persons subsequently appointed by the Timber Trade Advisory Committee (TTAC)

Useful Contacts

IE Singapore
230 Victoria Street, #09-00 Bugis Junction Office Tower
Singapore 188024
Tel: (65) 6337-6628
Fax: (65) 6337-6898
Telex: RS 28617 TRADEV

Singapore International Arbitration Centre (SIAC)
1 Coleman Street, #05-08 The Adelphi, Singapore 179803
Tel: (65) 6334-1277
Fax: (65) 6334-2942
Ctc: Mr Philip CHAN (Chief Executive Officer)