Decree 120/2024/ND-CP amend Decree 102/2020/ND-CP on the Vietnam Timber Legality Assurance System

DECREE

Amending and supplementing a number of articles of the Government’s Decree No. 102/2020/ND-CP of September 1, 2020, on the Vietnam Timber Legality Assurance System[1]

Pursuant to the June 19, 2015 Law on Organization of the Government; and the November 22, 2019 Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration;

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;

Pursuant to the Agreement between the Government of the Socialist Republic of Vietnam and the Government of the United States of America on Illegal Logging and Timber Trade, which comes into force on October 31, 2021;

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

The Government promulgates the Decree amending and supplementing a number of articles of the Government’s Decree No. 102/2020/ND-CP of September 1, 2020, on the Vietnam Timber Legality Assurance System.

Article 1. To amend and supplement a number of articles of the Government’s Decree No. 102/2020/ND-CP of September 1, 2020, on the Vietnam Timber Legality Assurance System

1. To amend and supplement Clause 1, Article 1 as follows:

“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 planting forests, harvesting and supplying planted forest timber, and processing, importing and exporting timber; and issuance of forest law enforcement, governance and trade (FLEGT) licenses.”.

2. To amend and supplement Clauses 1, 2 and 7, Article 3 as follows:

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

2. FLEGT license means a document issued by a state management agency at the request of an organization of individual to export a timber shipment to the Europe 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.

7. Imported/exported timber shipment means a certain quantity of timber imported or exported together, accompanied with an import or export dossier.”.

3. To amend and supplement Point c, Clause 4, Article 4 as follows:

“c/ Providing dossiers and making a declaration of origin of imported timber under Clause 1, Article 7 of this Decree, and being held responsible for the accuracy of the provided dossiers and declared information.”.

4. To amend and supplement Clause 5, Article 4 as follows:

“5. Dossiers for sale and purchase, and transfer of ownership of imported timber after release for free circulation must comply with the Minister of Agriculture and Rural Development’s regulations on management and traceability of forest products.”.

5. To amend and supplement Article 5 as follows:

“Article 5. List of countries and territories in positive geographical areas

1. A country or territory shall be identified as in a positive geographical area if meeting one of the following criteria:

a/ Having an operative timber legality assurance system and FLEGT licensing scheme;

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

c/ Having the Government Effectiveness Indicator of zero or higher according to the latest ranking of the World Bank Worldwide Governance Indicators (WGI); having a system of legal documents on implementation of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) and classified as Type I by the CITES Secretariat and meeting either of the following two criteria: having a national forest certification system recognized by Vietnam as meeting the legal timber criteria specified in this Decree or having signed a treaty or concluded an international agreement with Vietnam on legal timber.

2. A country or territory shall be identified as in a non-positive geographical area if falling into one of the following cases:

a/ The country or territory fails to satisfy the criteria specified in Clause 1 of this Article;

b/ The country or territory satisfies the criteria specified in Clause 1 of this Article but there is evidence of illegal harvest or trade of timber, or use of forged documents as specified in the laws of relevant countries.

3. The Ministry of Agriculture and Rural Development shall assume the prime responsibility for, and coordinate with the Ministry of Foreign Affairs, Ministry of Industry and Trade, Ministry of Finance, related ministries and sectors, and the organizations specified in treaties or international agreements to which Vietnam is a contracting party in, specifying the List of countries and territories in positive geographical areas; such list shall be published on the Ministry of Agriculture and Rural Development’s portal and the website www.kiemlam.org.vn on a periodical basis before December 31 every year or upon occurrence of changes thereto.”.

6. To amend and supplement Article 6 as follows:

“Article 6. List of at-risk timber species

1. Timber shall be identified as falling into the list of at-risk timber species when meeting one of the following criteria:

a/ Being specified in the CITES Appendices;

b/ Being on the list of endangered, precious and rare forest plant and animal species of Group IA or Group IIA; or the 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 in danger of extinction in the country or territory of harvest, being illegally harvested or traded, or being certified as legal by using forged documents according to information verified and dislosed 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 will not be identified as at-risk timber species if not falling into the cases specified in Clause 1 of this Article.

3. The Minister of Agriculture and Rural Development shall, in coordination with the Ministry of Finance, draw up a list of timber species already imported into Vietnam, including their scientific names and trade names in Vietnamese and English (if any); such list shall be reviewed and published on a periodical basis before December 31 every year on the Ministry of Agriculture and Rural Development’s portal and the website www.kiemlam.org.vn.

7. To amend and supplement Article 7 as follows:

“Article 7. Imported timber dossiers

When carrying out customs procedures for an imported timber shipment, in addition to the customs dossier as specified by the customs law, the imported timber owner shall produce 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 provided in Appendix I to this Decree.

2. One of the following documents:

a/ For timber on CITES Appendices: A copy of the CITES permit for export or re-export issued by the CITES Management Authority of the exporting or re-exporting country; the original or an electronic version of the CITES permit for import issued by the Vietnam CITES Management Authority;

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

3. In case an imported timber owner submits the dossier in the paper form: After completing customs procedures, the customs office shall return the imported timber dossier to the timber owner for storage under regulations.”.

8. To amend and supplement Clause 2, Article 8 as follows:

“2. Exported timber shall be managed by species and export market and on the basis of the result of classification of enterprises planting forests, harvesting and supplying planted forest timbers, and processing, importing and exporting timber.”.

9. To amend and supplement Clause 1, Article 9 as follows:

“1. Objects of verification: Exported timber shipments of timber owners other than enterprises of Category I.”.

10. To amend and supplement the opening paragraph of Article 10 as follows:

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

11. To add Clause 4, Article 10 as follows:

“4. In case the exported timber owner submits the dossier in the paper form: After completing customs procedures, the customs office shall return the exported timber dossier to the timber owner for storage under regulations.”.

12. To amend the title of Chapter III as follows:

“Chapter III

CLASSIFICATION OF ENTERPRISES PLANTING FORESTS, HARVESTING AND SUPPLYING PLANTED FOREST TIMBER, AND PROCESSING, IMPORTING AND EXPORTING TIMBER”.

13. To amend and supplement Clause 3, Article 11 as follows:

“3. Initial classification shall be carried out when an enterprise signs up into the Enterprise Classification Information System; in subsequent times, enterprises of Category I shall be subject to classification once every 2 years and enterprises of Category II, once a year.”.

14. To amend and supplement Point c, Clause 1, Article 12 as follows:

“c/ Complying with the reporting regime specified in Clause 5, Article 27 of this Decree and storing original dossiers in accordance with law;”.

15. To amend and supplement Clause 2, Article 12 as follows:

“2. Enterprises of Category II are those subject to enterprise classification but failing to meet any of the criteria specified in Clause 1 of this Article.”.

16. To amend and supplement Clause 1, Article 13 as follows:

“1. Subject to classification: Enterprises planting forests, harvesting and supplying planted forest timber, and processing, importing and exporting timber.”.

17. To amend and supplement Clauses 3 and 4, Article 13 as follows:

“3. Procedures:

a/ An enterprise shall sign up into the Enterprise Classification Information System and make a 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 hand-deliver or send by the public postal service or by post the declaration, made according to Form No. 08 provided in Appendix I to this Decree, to the receiving agency. The receiving agency shall input the 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 agency 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 of suspicion about the self-declared information provided by the enterprise, or suspicion that the enterprise uses forged documents, thus requiring verification, the receiving agency shall, within 3 working days after the enterprise is automatically classified by the Enterprise Classification Information System into Category I, notify such in writing to the enterprise, clearly stating the verification time and contents.

Within 5 working days from the date of notification, the receiving agency shall coordinate with related agencies in verifying the accuracy of the self-declared information of the enterprise and inform the verification result 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 self-declared 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 agency shall classify the enterprise into Category I on the Enterprise Classification Information System;

d/ Within 1 working day after the enterprise is classified into Category I under Point c of this Clause, the receiving agency shall inform the classification result to the enterprise. In case the enterprise fails to fully meet the criteria for to be classified as an enterprise of Category I, the receiving agency shall notify such to the enterprise, clearly stating the reason; and at the same time, send a copy of the notice of classification result to the Forest Protection Department for summarization and publicly posting the classification result on the website www.kiemlam.org.

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 the act of illegally harvesting, deforesting or transporting forest products; or illegally stockpiling, trading in, importing, exporting, or processing forest products with a fine of VND 25,000,000 or higher; in case there is evidence that the enterprise fails to abide by Points b and c, Clause 1, Article 12 of this Decree; or in case the enterprise fails to make declaration as specified in Clause 4a of this Article, it shall be handled as follows:

a/ Within 1 working day after receiving information on violation handling by a related competent agency, or having evidence that the enterprise fails to abide by Points b and c, Clause 1, Article 12 of this Decree or fails to make declaration as specified in Clause 4a of this Article, the receiving agency shall decide to reclassify the enterprise from Category I into Category II, update information on the reclassification on the Enterprise Classification Information System, and clearly notify the reason on the system;

b/ Within 1 working day after the receiving agency updates information on reclassification of the enterprise on the Enterprise Classification Information System, the Forest Protection Department shall sum up and publicize the list of reclassified enterprises on its website at www.kiemlam.org.vn.

18. To add Clause 4a to Article 13 as follows:

4a. Enterprises of Category I shall declare enterprise classification dossiers at least 30 days prior to the expiration date of the recognition as enterprise of Category I specified in Clause 3, Article 11 of this Decree.”.

19. To amend and supplement Clause 1, Article 14 as follows:

“1. An FLEGT license shall be issued for a legal timber shipment that has its HS code on the List of HS codes of commodities under the state management of the Ministry of Agriculture and Rural Development, belongs to a timber owner, and is exporter to the first border gate of import into the EU market.”.

20. To amend and supplement Clause 2, Article 15 as follows:

“2. FLEGT licenses may not contain any erasures or modifications, except licenses extended, renewed and re-issued by the agency assigned by the Ministry of Agriculture and Rural Development.”.

21. To amend and supplement Clauses 1 and 2, Article 16 as follows:

“1. Eligible for issuance of FLEGT licenses: Legal timber products that have their HS codes on the List of HS codes of commodities under the state management of the Ministry of Agriculture and Rural Development and are exported to the EU market, except timber subject to CITES permit.

2. The FLEGT licensing agency: The agency assigned by the Ministry of Agriculture and Rural Development (below referred to as the licensing agency).”.

22. To amend and supplement Article 27 as follows:

“Article 27. Responsibilities of forest protection agencies, the licensing agency, customs offices, and other related organizations and individuals

1. The central forest protection agency shall:

a/ 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, ensuring accurate, timely and effective sharing of information and data to related agencies, organizations and individuals; inspect and supervise the process of enterprise classification, compliance with laws on timber production and processing nationwide; announce enterprise classification results; and advise the Ministry of Agriculture and Rural Development on disclosure of information under this Decree;

b/ Coordinate with customs offices in inspecting and tracing the origin of imported and exported timber.

2. The licensing agency shall:

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

b/ Manage the database on dossiers of application for FLEGT licenses, covering data on the issuance of, and rejection to issue, FLEGT licenses;

c/ Provide information to clarify FLEGT licensing-related issues at the request of competent authorities of timber-importing countries or territories in case of suspicion about the authenticity and legality of licenses.

3. Provincial-level forest protection agencies or Departments of Agriculture and Rural Development in localities without provincial-level forest protection agencies shall:

a/ Direct the verification of exported timber; organize the classification of enterprises; inspect and supervise law observance by organizations and individuals according to their competence; manage and trace origins of timber and store dossiers and documents as specified in this Decree and relevant laws; store, backup and ensure security for information and data about transactions on the Enterprise Classification Information System;

b/ Coordinate with customs offices in inspecting and tracing the origin of imported and exported timber.

4. Customs offices shall:

a/ Inspect imported and exported timber in accordance with this Decree and the customs law;

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

c/ The General Department of Vietnam Customs shall consolidate and provide data on timber import and export, made according to Form No. 14 provided in Appendix I to this Decree and send it to the Ministry of Agriculture and Rural Development on a periodical basis before July 15, for first half-year reports, and before January 15 of the subsequent year, for second half-year reports. Data of the first half of a year shall be taken from January 1 through June 30; and data of the second half of a year, from July 1 through December 31.

5. Organizations and individuals shall:

a/ Be held responsible before law for the accuracy and legality of timber in harvest, import, transport, trading, processing and export; fully comply with the timber legality assurance requirements specified in this Decree and other relevant laws;

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

c/ Enterprises planting forests, harvesting and supplying planted forest timber, and processing, importing and exporting timber shall observe the reporting regime specified in the Minister of Agriculture and Rural Development’s Circular on management and traceability of forest products; and provide information about dossiers of timber products at the request of competent agencies in accordance with law;

d/ Declare, explain and provide information about the origin of timber under this Decree and submit to the inspection and supervision of competent functional agencies.”.

23. To add Clause 6 to Article 18 as follows:

“6. In case the legal documents referred to in this Decree are amended, supplemented or replaced, the amending, supplementing or replacing documents shall prevail.”.

Article 2. To replace or annul a number of words, phrases, points, clauses and articles of the Government’s Decree No. 102/2020/ND-CP of September 1, 2020, on the Vietnam Timber Legality Assurance System

1. To replace the phrase “countries in…geographical areas ” in Clause 11, Article 3, and Clause 3, Article 4 of the Government’s Decree No. 102/2020/ND-CP of September 1, 2020, on the Vietnam Timber Legality Assurance System (below referred to as Decree No. 102/2020/ND-CP), with the phrase “countries or territories in…geographical areas”.

2. To replace the phrase “timber categories” in Clause 3, and at Point b, Clause 4, Article 4, and Point c, Clause 6, Article 9 of, and Form No. 10 provided in Appendix I to, Decree No. 102/2020/ND-CP, with the phrase “timber species”.

3. To replace the phrase “cyber environment” in the title of Article 21 and Clause 1, Article 21 of Decree No. 102/2020/ND-CP, with the phrase “electronic environment”.

4. To replace Form No. 01 provided in Appendix I to Decree No. 102/2020/ND-CP with Form No. 01 provided in Appendix I to this Decree.

5. To replace Form No. 04 provided in Appendix I to Decree No. 102/2020/ND-CP with Form No. 04 provided in Appendix I to this Decree.

6. To replace Form No. 05 provided in Appendix I to Decree No. 102/2020/ND-CP with Form No. 05 provided in Appendix I to this Decree.

7. To replace Form No. 06 provided in Appendix I to Decree No. 102/2020/ND-CP with Form No. 06 provided in Appendix I to this Decree.

8. To replace Form No. 08 provided in Appendix I to Decree No. 102/2020/ND-CP with Form No. 08 provided in Appendix I to this Decree.

9. To replace Form No. 14 provided in Appendix I to Decree No. 102/2020/ND-CP with Form No. 14 provided in Appendix I to this Decree.

10. To replace Appendix II to Decree No. 102/2020/ND-CP with Appendix II to this Decree.

11. To annul Clauses 4 and 5, Article 28 of Decree No. 102/2020/ND-CP.

12. To annul Form No. 02 and Form No. 03 provided in Appendix I, and Appendix III to Decree No. 102/2020/ND-CP.

Article 3. Responsibility for organization of implementation

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.

Article 4. Transitional provision

Enterprises processing and exporting timber that have submitted dossiers for enterprise classification before the effective date of this Decree shall continue to be classified under the Government’s Decree No. 102/2020/ND-CP of September 1, 2020, on the Vietnam Timber Legality Assurance System.

Article 5. Effect

1. This Decree takes effect on November 15, 2024.

2. The provisions on classification of enterprises other than those processing and exporting timber specified in this Decree shall take effect after 18 months from the effective date of this Decree.-

On behalf of the Government
For the Prime Minister
Deputy Prime Minister
TRAN HONG HA

* The Appendices to this Decree are not translated.