In Nepal, 21 community forestry user groups (CFUGs) are formally awarded as certified CFUGs in 2005 under the principle and criteria of Forest Stewardship Council (FSC), as a tool to promote sustainable forest management (SFM) and responsible business practices focusing on non-timber forest products (NTFPs). Regarding this, the study was carried out in 3 certified CFUGs in Dolakha district to assess the existing forest management system. Both qualitative and quantitative methods were used for primary data collection using participatory rural appraisal (PRA) tools. Based on a stratified sample a total of 167 respondents from 3 CFUGs were randomly selected and asked about their experiences and opinions.

A positive trend in forest management practices especially in social and environmental aspects was identified, but less or no economic effects. Out of 10 FSC principles and 56 criteria, 9 principles and 47 criteria are endorsed in the operational plan and most of them are practically applied in the field. It was found that 78% of the users are general aware and know about forest certification. Some social achievements are the establishment of indigenous user rights, the improvements in pro poor programme and the increased transparency in accounting and decision-making processes. Focusing on biodiversity conservation, an improved harvesting and transportation system, the systematic collection and responsible buying system of NTFPs, the establishment of community enterprises and a forest depot are some results of the certification process. However, the high costs for the auditing process, the lack of a premium price for the certified products and the uncertainties of this programme are still some major challenges identified. In spite of the challenges more than two third of the users are satisfied with the process and they are looking forward the upcoming improvements by certification. It is discussed, that there is a general need for a national certifier body and a strong network for certified products, which would help to improve the income of local users.