Decree No. 102/2020/ND-CP the Vietnam Timber Legality Assurance System

DECREE

Providing the Vietnam Timber Legality Assurance System^[1]

Pursuant to the June 19, 2015 Law on Organization of the Government;

Pursuant to the November 15, 2017 Law on Forestry;

Pursuant to the Vietnam-European Union Voluntary Partnership Agreement on Forest Law Enforcement, Forest Governance and Trade, which comes into force on June 1, 2019;

At the proposal of the Minister of Agriculture and Rural Development;

The Government promulgates the Decree providing the Vietnam Timber Legality Assurance System.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

1. This Decree provides the Vietnam Timber Legality Assurance System for import and export of timber; criteria, competence, order and procedures for classification of enterprises processing and exporting timber; and issuance of forest law enforcement, governance and trade (FLEGT) licenses.

2. The Vietnam Timber Legality Assurance System for timber harvesting, transportation, trade and processing must comply with regulations on management and tracing of origin of forest products and other relevant legal documents.

Article 2. Subjects of application

This Decree applies to domestic organizations, business households, households, residential communities and individuals; and foreign organizations and individuals that are engaged in activities related to the contents specified in Article 1 of this Decree.

Article 3. Interpretation of terms

In this Decree, the terms below are construed as follows:  

1. Legal timber means timber and timber products (below collectively referred to as timber) that are harvested, imported, confiscated, transported, traded, processed or exported in accordance with regulations of Vietnam, relevant provisions of treaties to which Vietnam is a contracting party, and relevant laws of countries where timber exported to Vietnam is harvested.

2. FLEGT license means a document issued by the Vietnam CITES Management Authority for export or temporary import for re-export of timber shipments (excluding shipments of handled confiscated timber) to the European Union (EU) under this Decree, the Voluntary Partnership Agreement between the Socialist Republic of Vietnam and the EU on Forest Law Enforcement, Governance and Trade (VPA/FLEGT) and other relevant legal documents.

3. Timber owner means an organization; or a business household, household, residential community or an individual that has the legal ownership of timber in accordance with law.

4. Organization means an enterprise, a cooperative, cooperative union, protection forest management board, special-use forest management board or another institution established in accordance with law.

5. Verification means checking and comparison of the validity, legality and conformity of a dossier with the actual state of an imported or exported timber shipment.

6. Local forest protection authority means a district-level forest protection authority or provincial-level forest protection authority in a locality where no district-level forest protection authority is available.

7. Imported, exported or temporarily imported for re-export timber shipment means a certain quantity of timber imported, exported or temporarily imported for re-export a single time with an import, export or temporary import for re-export dossier.

8. Enterprise classification information system means an automatic system for enterprise classification having the functions of receiving information for enterprise classification registration, processing and storing information, and announcing enterprise classification results.

9. Relevant regulations of the country of timber harvest means current regulations of such country on forest harvest, forest governance, and timber taxation, trade or customs.

10. Timber packing list means information on a timber shipment provided by a timber owner upon timber import or export. Timber owners shall take responsibility before law for declared information and legal origin of timber in timber packing lists.

11. Low-risk country means a country that meets one of the criteria specified in Clause 1, Article 5 of this Decree.

12. High-risk timber means timber that falls under one of the criteria specified in Clause 1, Article 6 of this Decree.

13. Due diligence upon timber import means that an imported timber owner to provide information relating to legality of the origin of imported timber, take measures to evaluate and minimize risks required by the country of harvest and this Decree, and take responsibility before law for information it/he/she has provided.

Chapter II

MANAGEMENT OF IMPORTED AND EXPORTED TIMBER

Section 1

MANAGEMENT OF IMPORTED TIMBER

Article 4. General provisions on management of imported timber

1. Imported timber must be legal, undergo import procedures, and be subject to inspection and supervision by customs offices in accordance with the customs law.

2. The management of imported timber shall be carried out on the basis of application of risk management measures in order to prevent, detect, stop and promptly handle violations of law, ensuring that imported timber is legal while encouraging and creating favorable conditions for organizations and individuals that comply with law.

3. Imported timber is subject to risk management according to the criteria for identification of low-risk or high-risk countries, low-risk or high-risk timber as specified in Articles 5 and 6 of this Decree.

4. Imported timber owners shall take responsibility before law for:

a/ The legal origin of imported timber in accordance with relevant regulations of countries of harvest;

b/ Fully complying with requirements on provision of information according to criteria for evaluation of low-risk countries exporting timber to Vietnam specified in Article 5 of this Decree and criteria for identification of high-risk timber imported into Vietnam specified in Article 6 of this Decree;

c/ In the case specified at Point c, Clause 2, Article 7 of this Decree: Providing dossiers and declaring origin of imported timber under Point c, Clause 2, Article 7 of this Decree, and taking responsibility for accuracy of the provided dossiers and declared information.

5. Dossiers for purchase, sale, and transfer of ownership of imported timber:

a/ In case an imported timber owner sells the whole or part of the imported timber shipment to another timber owner or other timber owners: It/he/she shall prepare a timber packing list by extracting information from the packing list of imported timber, make copies of the imported timber dossier and sign and append a seal (if any) on them, then provide them to the buyer(s), and retain the original dossier of imported timber;

b/ In case the buyer specified at Point a of this Clause sells the whole or part of the imported timber shipment to another buyer: It/he/she shall prepare a timber packing list by extracting information from the previous packing list, make copies of the imported timber dossier and sign and append a seal (if any), then provide them to the buyer, and retain the copies;

c/ In case the imported timber is sold to another buyer, the seller shall comply with the provisions of Point b of this Clause;

d/ In case of transfer of ownership in other forms: The provisions of Point a or b or c of this Clause shall be complied with.

Article 5. Criteria for identification and competence to announce low-risk countries exporting timber to Vietnam

1. A country exporting timber to Vietnam may be identified as low-risk one when meeting one of the following criteria:

a/ Having an operative timber legality assurance system in place issuing FLEGT licenses;

b/ Having the binding national regulatory framework on due diligence for timber legality for the whole supply chain from the country of harvest conformable to the Vietnam Timber Legality Assurance System;

c/ Having the indicator for effectiveness of government according to the World Bank’s Worldwide Governance Indicators (WGI) from 0 and above; having a regulatory system for CITES implementation rated level I as announced by the CITES Secretariat and meeting either of the following criteria: Having concluded a bilateral agreement with Vietnam on timber legality or having a national regulatory timber certification scheme recognized by Vietnam as meeting the timber legality criteria specified in this Decree.

2. A country exporting timber to Vietnam may be identified as high-risk one when failing to meet the criteria specified in Clause 1 of this Article.

3. Competence to announce the list of low-risk countries exporting timber to Vietnam: Based on the criteria specified in Clause 1 of this Article, the Ministry of Agriculture and Rural Development shall coordinate with the Ministry of Industry and Trade, Ministry of Natural Resources and Environment, Ministry of Foreign Affairs, and related ministries and sectors in reaching agreement on drawing up and announcing the list of low-risk countries exporting timber to Vietnam for each period in accordance with relevant treaties to which Vietnam is a contracting party.

The list of low-risk countries exporting timber to Vietnam shall be publicized on www.kiemlam.org.vn.

Article 6. Criteria for identification and competence to announce high-risk timber imported into Vietnam

1. Timber imported into Vietnam may be identified as falling into a high-risk category when meeting one of the following criteria:

a/ Being specified in the Appendices of the CITES;

b/ Being on the list of endangered, precious and rare forest plant and animal species of Group IA or Group IIA; being on Vietnam’s list of endangered, precious and rare species prioritized for protection in accordance with Vietnam’s law;

c/ Being imported into Vietnam for the first time;

d/ Being of species threatened with extinction in countries of harvest or illegally traded as identified by the Ministry of Agriculture and Rural Development in coordination with the Ministry of Industry and Trade, Ministry of Natural Resources and Environment, Ministry of Foreign Affairs, related ministries and sectors, and the organizations specified in treaties to which Vietnam is a contracting party.

2. Timber imported into Vietnam may be identified as falling into a low-risk category if not falling under the criteria specified in Clause 1 of this Article.

3. Competence to announce timber categories imported into Vietnam: The Ministry of Agriculture and Rural Development shall coordinate with related agencies in updating and announcing the list of timber categories imported into Vietnam on June 30 and December 31 every year.

The list of timber categories imported into Vietnam, including their scientific names and trade names in Vietnamese and English (if any), shall be publicized on www.kiemlam.org.vn.

Article 7. Imported timber dossiers

When carrying out customs procedures for an imported timber shipment, in addition to a customs dossier required by the customs law, the imported timber owner shall submit to the customs office where the customs declaration is registered:

1. The original packing list of imported timber, made by the timber owner according to Form No. 01 or No. 02 provided in Appendix I to this Decree.

2. One of the following documents:

a/ In case timber is listed in a CITES Appendix: A copy of the CITES permit for export or re-export issued by the CITES Management Authority of the exporting or re-exporting country; a copy of the CITES permit for import issued by the Vietnam CITES Management Authority.

b/ In case timber is imported from a country that has concluded a timber legality agreement with the EU and has an operational FLEGT licensing system in place: A copy of the FLEGT license for export issued by the competent authority of the exporting country.

c/ In case the imported timber shipment does not fall into the case specified at Point a or b of this Clause: A declaration of imported timber origin, made according to Form No. 03 provided in Appendix I to this Decree.

Section 2

MANAGEMENT OF EXPORTED TIMBER

Article 8. General provisions on management of exported timber

1. Exported timber must be legal, undergo export procedures, and submit to inspection and supervision by customs offices in accordance with the customs law.

2. Exported timber shall be managed by category, export market and classification of enterprises processing and exporting timber.

3. Exported timber must have a CITES permit, FLEGT license or timber packing list in accordance with this Decree.

4. An exported timber shipment that has been issued an FLEGT license may be prioritized in clearance from customs procedures in accordance with the customs law.

Article 9. Verification of timber origin before export

1. Subject to verification are exported timber shipments of timber owners other than enterprises of Category I.

For shipments of timber of domestic planted forests for export to non-EU markets, verification is not required.

2. Verifying authority: Local forest protection authority.

3. A dossier of request for verification of the origin of exported timber must comprise:

a/ The original request for verification of the origin of exported timber, made according to Form No. 04 provided in Appendix I to this Decree;

b/ The original packing list of exported timber, made by the timber owner according to Form No. 05 or No. 06 provided in Appendix I to this Decree;

c/ A copy of the imported timber dossier specified in Article 7 of this Decree or a copy of the dossier of origin of domestically harvested timber under the Minister of Agriculture and Rural Development’s regulations on management and tracing of forest products.

4. Method of dossier sending: Timber owners shall send dossiers directly or by post or via the enterprise classification information system or email.

5. Procedures:

a/ A timber owner shall send 1 timber dossier specified in Clause 3 of this Article to a local forest protection authority. Within 1 working day after receiving the dossier, the local forest protection authority shall check its validity. In case the dossier is invalid, within 1 working day after receiving it, the local forest protection authority shall provide direct or written instructions for the timber owner to complete the dossier;

b/ Within 3 working days after receiving a valid dossier, the local forest protection authority shall complete physical inspection of the exported timber shipment under Clause 6 of this Article and certify the timber packing list. In case of refusal to certify the timber packing list, within 1 working day after making an inspection minutes, the local forest protection authority shall notify such in writing, clearly stating the reason.

6. Inspection of an exported timber shipment:

a/ Inspection time: Before the shipment is loaded onto the vehicle for export;

b/ Inspection location: The warehouse or storing yard where the shipment is stored at the request of the timber owner;

c/ Inspection contents: Comparing the dossier made by the timber owner with actual volume, weight, quantity, specifications, category and origin of inspected timber; verifying legality of the timber shipment; making an inspection minutes according to Form No. 07 provided in Appendix I to this Decree, and certifying the timber packing list;

d/ Level of physical inspection: Physical inspection of 20% of the timber shipment; in case of a violation, the forest protection officer shall report and propose the head of the local forest protection authority to decide to increase this level and extend the inspection time limit for no more than 2 days. The head of the local forest protection authority shall take responsibility before law for his/her decision.

Article 10. Exported timber dossiers

When carrying out customs procedures for an exported timber shipment, in addition to a customs dossier specified by the customs law, the timber owner shall submit to the customs office where the declaration is registered one of the following documents:

1. If the timber is listed in a CITES Appendix: The original or an electronic copy of the CITES permit for export issued by the Vietnam CITES Management Authority.

2. If the timber is not listed in any CITES Appendix:

a/ In case the timber shipment is exported to the EU market: The original or an electronic copy of the FLEGT license;

b/ In case the timber shipment is exported to a non-EU market:

If the timber owner is an enterprise of Category I: The original packing list of exported timber made by the timber owner.

If the timber owner is not an enterprise of Category I: The original packing list of exported timber made by the timber owner and certified by a local forest protection authority in accordance with Article 9 of this Decree.

3. In case the timber owner has completed the dossier for shipment export but entrusts another enterprise to export the shipment, the entrusted enterprise shall enclose a copy of the entrustment contract with the documents specified in Clause 1 or 2 of this Article.

Chapter III

CLASSIFICATION OF ENTERPRISES PROCESSING AND EXPORTING TIMBER

Article 11. General provisions on classification of enterprises

1. Enterprises shall be classified via the enterprise classification information system.

2. Enterprise classification shall be carried out constantly on the basis of regularly updating information on operation and law observance by enterprises, under the mechanism of self-declaration and due diligence of enterprises, and according to verification results of competent state management agencies in accordance with this Decree.

3. Initial classification shall be carried out when an enterprise signs up into the enterprise classification information system; second-time classification shall be carried out after 1 year from the date of initial classification; third-time and subsequent classifications shall be carried out every 2 years for enterprises of Category I or every year for enterprises of Category II from the date of previous classification or from the date of transformation of an enterprise from Category I to Category II.

4. Provincial-level forest protection authorities or provincial-level Departments of Agriculture and Rural Development in localities where no provincial-level forest protection authorities are available shall classify enterprises under Articles 12 and 13 of this Decree.

Article 12. Enterprise classification criteria

1. An enterprise of Category I is the one fully meeting the following criteria:

a/ Having fully complied with regulations on its establishment and operation for at least 1 year from date of enterprise establishment registration;

b/ Complying with this Decree’s provisions on timber legality assurance and the Minister of Agriculture and Rural Development’s regulations on management and tracing of forest products;

c/ Complying with the reporting regime provided in Clause 4, Article 27 of this Decree and storing original dossiers in accordance with law;

d/ Having committed no violations that are serious enough to be handled under Clause 4, Article 13 of this Decree;

dd/ The criteria specified at Points a and  b of this Clause and provided in detail in Appendix II to this Decree.

2. Enterprises of Category II are those failing to meet any of the criteria specified in Clause 1 of this Article.

Article 13. Order and procedures for enterprise classification

1. Subject to classification are lawfully established enterprises that process and export timber.

2. Authorities receiving dossiers for enterprise classification registration (below referred to as receiving authorities) are provincial-level forest protection authorities or Departments of Agriculture and Rural Development in localities where no provincial-level forest protection authorities are available and where headquarters or timber processing facilities of enterprises are located.

3. Procedures:

a/ An enterprise shall sign up into the enterprise classification information system and make self-declaration according to Form No. 08 provided in Appendix I to this Decree.

In case the enterprise cannot sign up into the enterprise classification information system, it may send directly or by post or public postal service its declaration for processing and exporting enterprise classification, made according to Form No. 08 provided in Appendix I to this Decree, to the receiving authority. The receiving authority shall input the registration information into the enterprise classification information system;

b/ Within 1 working day after receiving the enterprise’s declaration information under Point a of this Clause, the enterprise classification information system of the receiving authority shall base itself on the criteria specified in Clause 1, Article 12 of this Decree to automatically classify the enterprise into Category I.

In case the self-declaration information provided by the enterprise needs verification, the receiving authority shall, within 3 working days after classification results are available on the enterprise classification information system, notify in writing the enterprise registered for classification of the verification time and contents. Within 5 working days from the date of notification, the receiving authority shall coordinate with related agencies in verifying the accuracy of the self-declaration information of the enterprise and inform verification results to the enterprise;

c/ Within 3 working days after the enterprise is automatically classified by the enterprise classification information system into Category I or after the verification of the declaration information is completed under Point b of this Clause, if the enterprise fully meets the criteria specified in Clause 1, Article 12 of this Decree, the receiving authority shall classify the enterprise into Category I on the enterprise classification information system;

d/ Within 1 working day after classifying the enterprise into Category I under Point c of this Clause, the receiving authority shall inform classification results to the classified enterprise. In case the enterprise fails to fully meet the criteria for an enterprise of Category I, the receiving authority shall notify such to the enterprise, clearly stating the reason.

4. In case an enterprise of Category I or its lawful representative is criminally handled under Article 232 of the 2015 Penal Code (revised in 2017) or sanctioned for an administrative violation for illegally harvesting, deforesting or transporting forest products; or illegally stockpiling, trading in or processing forest products with a fine of at least VND 25,000,000:

a/ Within 1 working day after receiving information on violation handling by a related competent authority, the receiving authority shall decide to reclassify the enterprise from Category I into Category II, update the reclassification on the enterprise classification information system, and notify the reason for reclassification on the system;

b/ Within 1 working day after the receiving authority updates enterprise reclassification results on the enterprise classification information system, the Forest Protection Department shall sum up and publicize the list of reclassified enterprises on www.kiemlam.org.vn.

5. The Ministry of Agriculture and Rural Development shall issue specific provisions on enterprise classification.

Chapter IV

FLEGT LICENSES AND INDEPENDENT EVALUATION

Section 1

ISSUANCE OF FLEGT LICENSES

Article 14. General provisions on issuance of FLEGT licenses

1. An FLEGT license shall be issued for a legal timber shipment specified in Appendix III to this Decree of an owner of timber exported or temporarily imported for re-export at the first border gate of import into the EU market.

2. A timber shipment exported to the EU market may be issued only one FLEGT license before its customs declaration is registered.

3. FLEGT licenses shall be issued in electronic form. In case electronic licensing is not available or at the request of timber owners, paper FLEGT licenses may be issued, provided they shall be later updated to the electronic licensing system. The Licensing Authority shall retain paper licenses and send electronic photocopies of issued FLEGT licenses to FLEGT authorities of importing countries in the EU.

4. For a mixed timber shipment for which information cannot be fully declared as required in an FLEGT license, qualitative and quantitative information relating to descriptions of the shipment shall be specified in an additional goods description sheet, made according to Form No. 09 provided in Appendix I to this Decree.

5. For a shipment of timber products derived from the timber specified in a CITES Appendix and timber not specified in any CITES Appendix and exported to the EU market, a single CITES license shall be issued in accordance with the Government’s Decree No. 06/2019/ND-CP of January 22, 2019, on management of endangered, precious and rare forest plants and animals and implementation of the CITES. For timber specified in a CITES Appendix, a dossier of application for a license must comply with Clause 2, Article 23 of Decree No. 06/2019/ND-CP. For timber not specified in any CITES Appendix, a dossier of application for a license must comply with Clause 3, Article 16 of this Decree.

6. Timber shipments exported to the EU market for which CITES licenses have been issued are exempt from FLEGT licenses.

Article 15. FLEGT licenses and their validity period

1. An FLEGT license shall be presented on an A4-sized paper sheet with information written in Vietnamese and English according to Form No. 10 provided in Appendix I to this Decree. Such a license must bear the signature and seal of the Vietnam CITES Management Authority.

2. FLEGT licenses may not contain any erasures or modifications, unless they are extended, renewed or re-issued by the Vietnam CITES Management Authority.

3. The validity period of an FLEGT license is up to 6 months from the date of issuance.

Article 16. Issuance of FLEGT licenses

1. Eligible for issuance of FLEGT licenses are legal timber products specified in Appendix III to this Decree and exported or temporarily imported for re-export to the EU market, except timber subject to CITES licensing or shipments of handled confiscated timber.

2. The FLEGT Licensing Authority is the Vietnam CITES Management Authority  (below referred to as the Licensing Authority).

3. A dossier of application for an FLEGT license must comprise:

a/ The original application for an FLEGT license, made according to Form No. 11 provided in Appendix I  to this Decree;

b/ The original packing list of exported timber, for timber shipments of enterprises of Group I; the original packing list of exported timber with certification by a local forest protection authority, for timber shipments of the timber owners specified in Clause 1, Article 9 of this Decree;

c/ A copy of the purchase and sale contract or the equivalent;

d/ Invoices as required by the Ministry of Finance (if any);

dd/ Other additional documents to provide evidence of legal origin of the exported timber shipment (if any).

4. Method of dossier sending: Timber owners shall send their dossiers directly or by public portal services or post or via the cyber environment (through the Vietnam National Single Window Portal, FLEGT Licensing System or National Public Service Portal).

5. Procedures:

a/ A timber owner shall send 1 dossier specified in Clause 3 of this Article to the Licensing Authority. The Licensing Authority shall examine validity of the dossier. In case the dossier is invalid, within 2 working days after receiving it, the Licensing Authority shall notify such to and guide the timber owner in completing the dossier in writing, by email or through the Vietnam National Single Window Portal, FLEGT Licensing System or National Public Service Portal;

b/ Within 5 working days after receiving a complete and valid dossier, the Licensing Authority shall examine validity of the dossier and issue a FLEGT license. In case of refusal to issue a license, the Licensing Authority shall notify such in writing to the timber owner, clearly stating the reason for refusal.

In case of a suspicion about the legal origin of the timber shipment for which a FLEGT license is applied, the Licensing Authority shall, within 3 working days after receiving the dossier, notify such in writing to the timber owner, verifying authority and other related authorities, clearly stating the verification period. The Licensing Authority shall assume the prime responsibility for, and coordinate with the verifying authority and other related authorities in, verifying the legality of the timber shipment. The verification time limit is 10 working days from the date of notification. Upon the completion of the verification, a minutes of verification shall be made according to Form No. 12 provided in Appendix I to this Decree.

c/ Within 1 working day from the date of completion of the verification, the Licensing Authority shall issue a FLEGT license in case the exported timber shipment is eligible or notify in writing the timber owner of refusal to issue such a license, clearly stating the reason for refusal;

d/ Within 1 working day after issuing a FLEGT license, the Licensing Authority shall hand over such license to the timber owner, publicize information about the issued FLEGT license on its website, and send a photocopy thereof to the FLEGT authority of the importing country in the EU.

6. For sample shipments of timber exported for commercial purposes, a dossier of application for FLEGT license must comprise the documents specified at Points a, b and dd, Clause 3 of this Article.

Article 17. Extension of FLEGT licenses

1. Eligible for extension of FLEGT licenses are timber owners that hold expired FLEGT licenses but have not yet exported timber shipments under such licenses and wish to have their licenses extended.

2. Competent to extend FLEGT licenses is the authority specified in Clause 2, Article 16 of this Decree.

3. A dossier of request for extension of a FLEGT license must comprise:

a/ The original request for extension of a FLEGT license, clearly stating the reason for extension, made according to Form No. 13 provided in Appendix I to this Decree;

b/ The original license, for paper FLEGT licenses, or a copy of the license, for electronic FLEGT licenses.

4. Method of dossier sending: A timber owner may send a dossier directly or by public portal services or post or via the cyber environment (through the Vietnam National Single Window Portal, FLEGT Licensing System or National Public Service Portal).

5. Procedures:

a/ A timber owner shall send 1 dossier specified in Clause 3 of this Article to the Licensing Authority. In case the dossier is invalid, within 2 working days after receiving it, the Licensing Authority shall notify such and guide the timber owner in completing the dossier in writing or through the Vietnam National Single Window Portal, FLEGT Licensing System or National Public Service Portal;

b/ Within 3 working days after receiving a complete and valid dossier, the Licensing Authority shall examine validity of the dossier and extend the FLEGT license. In case of refusal to extend such license, the Licensing Authority shall notify such in writing to the timber owner, clearly stating the reason;

c/ Within 1 working day from the date of extension of the FLEGT license, the Licensing Authority shall return the extended license to the timber owner, publicize information about the extended license on its website, and notify such to the FLEGT authority of the importing country in the EU. In case of refusal to extend the FLEGT license, within 1 working day after signing a document on refusal of license extension, the Licensing Authority shall send a notice thereof to the timber owner.

6. Within 15 working days after a FLEGT license expires, the timber owner wishing to have such license extended shall carry out procedures for requesting extension of such license. A FLEGT license may be extended only once by inserting a new expiration date thereon and appending a seal in box 4.1 in the license. The validity period of an extended FLEGT license is up to 2 months from the date of extension.

Article 18. Renewal of FLEGT licenses

1. Eligible for renewal of FLEGT licenses are holders of paper FLEGT licenses that are lost or damaged or contain errors.

2. Competent to renew FLEGT licenses is the authority specified in Clause 2, Article 16 of this Decree.

3. A dossier of request for renewal of a FLEGT license must comprise:

a/ In case a paper FLEGT license is lost: The original request for renewal of a FLEGT license, made according to Form No. 13 provided in Appendix I to this Decree;

b/ In case a paper FLEGT license is damaged or contains errors: In addition to the document specified at Point a of this Clause, the original FLEGT license is required;

c/ In case an electronic FLEGT license contains errors: In addition to the document specified at Point a of this Clause, a copy of the FLEGT license is required.

4. Method of dossier sending: A timber owner may send a dossier directly or by public portal service or port or via the cyber environment (through the Vietnam National Single Window Portal, FLEGT Licensing System or National Public Service Portal).

5. Procedures:

a/ A timber owner shall send 1 dossier specified in Clause 3 of this Article to the Licensing Authority. In case the dossier is invalid, within 2 working days after receiving it, the Licensing Authority shall notify such and guide the timber owner in completing the dossier in writing, by email or through the Vietnam National Single Window Portal, FLEGT Licensing System or National Public Service Portal;

b/ For the case specified at Point a, Clause 3 of this Article: Within 2 working days after receiving a valid dossier, the Licensing Authority shall send to the General Department of Customs a request for verification of customs clearance status of the shipment for which the FLEGT license has been issued. Within 1 working day after receiving a written reply of the General Department of Customs, the Licensing Authority shall renew the FLEGT license for the timber owner. In case of refusal to renew the FLEGT license, the Licensing Authority shall notify such in writing to the timber owner, clearly stating the reason.

c/ For the case specified at Point b or c, Clause 3 of this Article: Within 3 working days after receiving a valid dossier, the Licensing Authority shall renew the FLEGT license. In case of refusal to renew the FLEGT license, the Licensing Authority shall notify such in writing to the timber owner, clearly stating the reason;

d/ Within 1 working day from the date of renewal of the FLEGT license, the Licensing Authority shall return the renewed FLEGT license to the timber owner, publicize information about the renewed FLEGT license on its website, and notify such to the FLEGT authority of the importing country in the EU. In case of refusal to renew the FLEGT license, within 1 working day after signing a document on refusal to renew the FLEGT license, the Licensing Authority shall send a notice thereof to the timber owner.

6. Renewed FLEGT licenses shall be made according to Form No. 10 provided in Appendix I to this Decree, and must fully contain the information provided in the original licenses and bear the certification “giấy phép thay thế” (renewed license). The validity period of renewed licenses is the same as that of the original ones.

Article 19. Re-issuance of FLEGT licenses

1. Subjects eligible for re-issuance of FLEGT licenses: A FLEGT license may be re-issued when the exported timber shipment sees a change in its product, HS code, name of timber species, or unit of calculation, or sees a difference of over 10% in the quantity or volume or weight compared to the licensed timber shipment.

2. Competent to re-issue FLEGT licenses is the authority specified in Clause 2, Article 16 of this Decree.

3. Method of dossier sending: A timber owner shall send a dossier directly, by public portal service or post or via the cyber environment (through the Vietnam National Single Window Portal, FLEGT Licensing System or National Public Service Portal).

4. A dossier of request for re-issuance of a FLEGT license must comprise:

a/ In case the volume, quantity or weight of the exported timber shipment is smaller than that specified in the FLEGT license: The original request for re-issuance of the license, made according to Form No. 13 provided in Appendix I to this Decree, enclosed with the original paper FLEGT license or a copy of the electronic FLEGT license;

b/ In case the volume, quantity or weight of the exported timber shipment is greater than that specified in the FLEGT license or the shipment sees a change in product, HS code or timber species names in the shipment are changed: The documents specified at Point a of this Clause, and Points b, c and dd, Clause 3, Article 16 of this Decree.

5. Procedures:

a/ For the case specified at Point a, Clause 4 of this Article:

The timber owner shall send 1 dossier specified in Point a, Clause 4 of this Article to the Licensing Authority.

In case the dossier is invalid, within 1 working day after receiving it, the Licensing Authority shall notify such and guide the timber owner in completing the dossier in writing, by email or through the Vietnam National Single Window Portal, FLEGT Licensing System or National Public Service Portal.

Within 2 working days after receiving a valid dossier, the Licensing Authority shall examine it and re-issue an FLEGT license. In case of refusal to re-issue the license, the Licensing Authority shall notify such in writing to the timber owner, clearly stating the reason.

Within 1 working day after re-issuing the FLEGT license, the Licensing Authority shall hand over the FLEGT license to the timber owner, publicize information about the re-issued FLEGT license on its website, and notify such to the FLEGT authority of the importing country in the EU. In case of refusal to re-issue the license, the Licensing Authority shall notify such in writing to the timber owner.

b/ For the case specified at Point b, Clause 4 of this Article: The procedures specified in Clause 5, Article 16 of this Decree shall be carried out.

6. The validity period of a re-issued FLEGT license is up to 6 months from the date of re-issuance.

Article 20. Revocation of FLEGT licenses

1. Cases where a FLEGT license shall be revoked:

a/ It is voluntarily returned by the timber owner;

b/ In case the license has expired but the timber owner fails to export the timber shipment or request extension of the license: Within 10 days from the date of expiration of the license, the timber owner shall return it to the Licensing Authority;

c/ The timber owner commits a violation related to the exported timber shipment which is detected after the FLEGT license is issued;

d/ The timber owner commits an act of forging, altering or modifying information in the FLEGT license.

2. Competent to revoke FLEGT licenses is the Licensing Authority.

3. Methods of license revocation:

a/ In the case specified at Point a or b, Clause 1 of this Article where the FLEGT license is an electronic one, the timber owner shall return the license to the Licensing Authority through the electronic FLEGT licensing system. The Licensing Authority shall invalidate the returned license on the system;

b/ In the case specified at Point a or b, Clause 1 of this Article where the FLEGT license is a paper one, the timber owner shall return the license directly or by post to the Licensing Authority for retention;

c/ In the case specified at Point c or d, Clause 1 of this Article, the Licensing Authority shall issue a decision to revoke the FLEGT license;

d/ The Licensing Authority shall publicize information about the revoked FLEGT license on its website and notify such to the FLEGT authority of the importing country in the EU.

4. Handling of revoked licenses: The Licensing Authority shall keep revoked paper FLEGT licenses and revocation decisions for 5 years.

Article 21. Provisions on issuance of FLEGT licenses via the cyber environment

1. A timber owner that sends a dossier via the cyber environment is not required to submit a paper dossier. A dossier submitted via the cyber environment may be photocopied from the original dossier, except where digital signatures are required.

2. A timber owner shall keep the original dossier specified in Articles 16, 17, 18 and 19 of this Decree for 5 years from the date of dossier submission and produce it to competent authorities when requested.

3. For a paper FLEGT license, when requesting its extension, renewal or re-issuance, the timber owner shall submit the dossier directly or by public postal services or post.

Section 2

INDEPENDENT EVALUATION

Article 22. Criteria for identification of independent evaluation organizations

1. Having the legal person status in Vietnam.

2. Not participating in timber import, processing and export or formulation of legal documents on forestry; not participating in forest management and timber trade activities.

3. Having quality control systems under ISO 17021 or the equivalent.

4. Having human resources satisfying requirements on professional qualifications and experience in audit and evaluation relevant to forest management, protection and use; forest product processing and trade.

5. Having no interest-related relations with timber importers, processors or exporters or state management authorities in charge of forestry.

6. The Ministry of Agriculture and Rural Development shall consult the organizations specified in relevant treaties to which Vietnam is a contracting party on designating independent evaluation organizations. The order and procedures for designating independent evaluation organizations must comply with the bidding law.

Article 23. Evaluation contents

1. Implementation by the Vietnam Timber Legality Assurance System; control of the timber supply chain and data management; classification of enterprises and verification of exported timber.

2. FLEGT licensing.

3. Difficulties and problems occurring in the course of implementation of the Vietnam Timber Legality Assurance System.

4. Other contents as decided by the Ministry of Agriculture and Rural Development and the organizations specified in relevant treaties to which Vietnam is a contracting party.

5. The evaluation framework shall be decided by the Ministry of Agriculture and Rural Development and the organizations specified in relevant treaties to which Vietnam is a contracting party.

Article 24. Evaluation method and period and reporting regime

1. Evaluation method must comply with ISO 19011, ISO 17021 or the equivalent as decided by the Ministry of Agriculture and Rural Development and the organizations specified in relevant treaties to which Vietnam is a contracting party.

2. Evaluation period: Once every 6 months in the first year of FLEGT licensing; once every 12 months in the next two years. After 3 years of FLEGT licensing, the Ministry of Agriculture and Rural Development shall coordinate with the organizations specified in relevant treaties to which Vietnam is a contracting party in deciding on the evaluation period for subsequent years.

3. Reporting regime: Within 15 days after the end of an evaluation period, an independent evaluation organization shall send a report to the Ministry of Agriculture and Rural Development and the organizations specified in relevant treaties to which Vietnam is a contracting party.

Chapter V

ORGANIZATION OF IMPLEMENTATION

Article 25. Responsibilities of the Ministry of Agriculture and Rural Development

1. To assume the prime responsibility for, and coordinate with related ministries and central sectors in, guiding and organizing the implementation of this Decree according to their competence.

2. To coordinate with related ministries and sectors and provincial-level People’s Committees in inspecting, examining and urging the implementation of this Decree.

3. To direct the development of the database on enterprise classification and forestry-related violations, operation of the FLEGT licensing system and FLEGT licensing data; to guide the management, exploitation and use of this database.

4. To reach agreement with the VPA/FLEGT Joint Implementation Committee on evaluation methodology and evaluation of necessary preparations for FLEGT licensing in accordance with the VPA/FLEGT; to propose the Prime Minister to decide on the effective date of this Decree regarding management of export timber specified in Section 2, Chapter II and FLEGT licensing specified in Section 1, Chapter IV of this Decree.

Article 26. Responsibilities of provincial-level People’s Committees

1. To organize public communication about the Vietnam Timber Legality Assurance System in accordance with this Decree.

2. To direct, examine and supervise observance of this Decree by local functional authorities.

3. To direct related authorities in coordinating with forest protection authorities in verifying and classifying enterprises in accordance with this Decree.

Article 27. Responsibilities of forest protection authorities, FLEGT licensing authorities, customs authorities, and other related organizations and individuals

1. Forest protection authorities:

a/ Provincial-level forest protection authorities or Departments of Agriculture and Rural Development in localities where no provincial-level forest protection authorities are available shall direct the verification of exported timber; organize the enterprise classification; inspect and supervise law observance by organizations and individuals according to their competence; manage and trace origins of timber and store dossiers and documents in accordance with this Decree and relevant regulations; store, backup and ensure security of information and data about transactions on the enterprise classification information system;

b/ The Forest Protection Department shall develop, manage and operate the enterprise classification information system, apply necessary professional and technical measures to keep confidential information and data on the enterprise classification information system, ensure accurate, timely and effective sharing of information and data to related authorities, organizations and individuals; inspect and supervise the process of enterprise classification, compliance with regulations on timber production and processing nationwide; disclose enterprise classification results; and advise the Ministry of Agriculture and Rural Development on disclosure of information in accordance with this Decree.

2. The Licensing Authority shall:

a/ Manage the issuance, extension, revocation, re-issuance and renewal of FLEGT licenses in accordance with this Decree;

b/ Manage the database on dossiers of application for FLEGT licenses, including those accepted for licensing and those rejected;

c/ Provide information for clarifying FLEGT licensing-related issues at the request of competent authorities of timber-importing countries in case of a suspicion about the authenticity and legality of licenses.

3. Customs authorities shall:

a/ Coordinate with forest protection authorities and related authorities in verifying legality of imported and exported timber shipments;

b/ Inspect and certify packing lists of imported timber shipments.

4. Other organizations and individuals shall:

a/ Take responsibility before law for accuracy and legality of timber in harvest, import, transportation, trade, processing and export; fully comply with timber legality assurance requirements specified in this Decree and other relevant regulations;

b/ Store timber dossiers for 5 years from the date of timber sale;

c/ Timber importers and exporters shall submit their regular reports, made according to Form No. 14 provided in Appendix I to this Decree, on the last day of every quarter to local forest protection authorities; and provide information about timber import and export at the request of competent authorities;

d/ Declare, explain and provide information about the origin of imported and exported timber in accordance with this Decree and submit to inspection and supervision by competent functional authorities.

Chapter VI

IMPLEMENTATION PROVISIONS

Article 28. Effect

1. This Decree takes effect on October 30, 2020, except the cases specified in Clauses 2 and 3 of this Article.

2. Within 30 working days after the Ministry of Agriculture and Rural Development reaches agreement with the VPA/FLEGT Joint Implementation Committee under Clause 4, Article 25 of this Decree, the Prime Minister shall decide on the effective date of the provisions on management of exported timber in Section 2, Chapter II and FLEGT licensing specified in Section 1, Chapter IV of this Decree.

3. The provisions on classification of enterprises processing and exporting timber of Chapter III of this Decree will take effect after 18 months from the effective date of this Decree.

4. The provisions on imported timber dossiers of Article 17 of the Ministry of Agriculture and Rural Development’s Circular No. 27/2018/TT-BNNPTNT of November 16, 2018, on management and traceability of forest products, cease to be effective on the effective date of this Decree.

5. The provisions on exported timber dossiers of Article 26 of the Ministry of Agriculture and Rural Developments Circular No. 27/2018/TT-BNNPTNT of November 16, 2018, on management and traceability of forest products, cease to be effective on the effective date of the Prime Minister’s Decision mentioned in Clause 2 of this Article.

Before the effective date of the Prime Minister’s Decision mentioned in Clause 2 of this Article, exported timber dossiers must comply with relevant current regulations.

Article 29. Transitional provisions

For imported timber shipments for which customs declarations are registered before the effective date of this Decree but which are not yet cleared from customs procedures, policies on management of imported timber effective at the time of registration of customs declarations shall apply.

Article 30. Implementation responsibility

1. The Minister of Agriculture and Rural Development shall organize the implementation of this Decree.

2. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and related agencies, organizations and individuals shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN XUAN PHUC 

* The appendices to this Decree are not translated.