The Forest Stewardship Council (FSC) has announced the blocking of four certificate holders after investigations revealed fraudulent activities and false FSC claims within the global birch plywood supply chain. The enforcement action is part of FSC’s ongoing commitment to protecting the credibility of certified forest products and strengthening transparency across international timber markets.
The latest blockages, implemented in May 2026, follow an earlier round of enforcement in October 2025, when four additional certificate holders were suspended for similar violations. The actions stem from evidence gathered during FSC’s extensive birch plywood transaction verification (TV) loop, a major initiative designed to identify inconsistencies in certified product transactions and safeguard the integrity of the FSC certification system.
Four companies blocked following investigation
Following a comprehensive review of transaction records and certification data, FSC confirmed that the following organizations have been blocked from the FSC certification system:
Xuzhou Discover International Import & Export Co., Ltd. (FSC-C159783) was found to have sold non-conforming birch plywood while reporting zero sales of FSC-certified materials to its certification body between 2020 and July 2024.
Xuzhou Huayu Wood Industry Co., Ltd. (FSC-C181040) sold birch plywood carrying FSC claims despite declaring no FSC sales to its certification body, including throughout the transaction verification period covering July 2022 to June 2023.
Xuzhou Shelter Import & Export Co., Ltd. (FSC-C180645) was blocked after investigators determined that the company sold plywood products with false FSC claims in 2023 to Shelter Forest International Acquisition, Inc. Despite these sales, the organization reported no FSC material transactions during 2021, 2022, and 2023. FSC also reported repeated failures by the company to cooperate with oversight activities, including refusing to submit required transaction verification data, limiting access during an Assurance Services International assessment conducted in October 2024, and eventually becoming unreachable to both its certification body and investigators.
Shelter Forest International Acquisition, Inc. (FSC-C146872) was blocked for knowingly purchasing products carrying false FSC claims from Xuzhou Shelter Import & Export Co., Ltd. According to FSC, the company also obstructed the investigation by repeatedly refusing to provide requested transaction documentation to its certification body, which ultimately terminated its certification.
Transaction Verification Strengthens Certification Oversight
Originally launched by Assurance Services International (ASI) in 2023, the birch plywood transaction verification loop examined transaction records from 78 certificate holders covering the period from July 2022 through June 2023. The investigation initially focused on traders and downstream buyers before expanding to suppliers across the value chain to identify inconsistencies between reported sales and actual product movements.
The initiative forms part of FSC’s broader Eurasia Integrity Workplan, a long-term programme aimed at addressing integrity risks within FSC-certified birch supply chains throughout the Eurasian region. By analysing transaction data across multiple supply chain stages, FSC and ASI have been able to identify discrepancies that traditional certification audits may not detect.
Building on these findings, FSC and ASI launched an additional transaction verification programme in 2024 focusing specifically on birch wood panels handled by certificate holders maintaining physical possession of certified materials in Eurasia. According to FSC, the results reinforced concerns identified during the earlier birch plywood investigation, highlighting the need for stronger monitoring mechanisms across certified wood product supply chains.
New measures introduced to protect certified supply chains
To further enhance the integrity of FSC-certified products, the organisation has introduced several new measures aimed at improving transparency and reducing opportunities for certification fraud.
One of the key initiatives is the implementation of the Advice Note on the public disclosure of “No FSC Sales,” enabling FSC Public Search to identify certificate holders that have reported no FSC-certified sales during specified evaluation periods. This additional transparency allows buyers, certification bodies, and other stakeholders to verify supplier declarations before purchasing certified materials.
FSC has also strengthened audit requirements for certificate holders involved in solid wood, veneer, wood panels, and FSC-certified bamboo products in China. Under updated guidance, annual surveillance audits will now remain mandatory even for organisations that report no purchases or sales of FSC-certified materials during the audit period. The revised approach is intended to reduce compliance gaps while improving oversight across higher-risk supply chains.
Due diligence remains essential
FSC continues to encourage certificate holders, manufacturers, importers, distributors, and other stakeholders to strengthen due diligence by regularly reviewing supplier information through FSC Public Search and verifying claims with trading partners. The organization believes these additional verification steps will help identify potential fraudulent activities earlier, preventing non-certified birch products from entering FSC-certified supply chains.
As demand for responsibly sourced wood products continues to grow worldwide, maintaining confidence in certification systems remains critical for manufacturers, retailers, architects, and consumers alike. Through enhanced transaction verification, stricter oversight, and increased transparency, FSC aims to reinforce trust in its certification framework while ensuring that certified forest products continue to meet the highest standards of responsible forest management and supply chain accountability.
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