AMENDMENTS TO SOME ARTICLES OF GOVERNMENT’S DECREE NO. 102/2020/ND-CP DATED SEPTEMBER 01, 2020 ON VIETNAM TIMBER LEGALITY ASSURANCE SYSTEM

1. Clause 1 of Article 1 shall be amended as follows:

“1. This Decree provides for Vietnam Timber Legality Assurance System (VNTLAS) for export and import of timber; criteria, authority, procedures for classifying enterprises that cultivate, harvest and provide timber of cultivated forests, produce, import and export timber; issuance of FLEGT licenses.”.

2. Clause 1, clause 2 and clause 7 Article 3 shall be amended as follows:

“1. “legal timber” means timber or timber products (hereinafter referred to as “timber”) that are harvested, imported, transported, traded, processed, exported in accordance with Vietnam’s law, relevant regulations of international treaties to which Vietnam is a signatory and relevant laws of a country or territory in which the timber is harvested, transited and exported to Vietnam.

2. “FLEGT license” means a document issued by a regulatory body at the request of an organization/individual for export of timber shipments to Europe Union (EU) in accordance with this Decree, the VPA/FLEGT and relevant legislative documents.

7. A “shipment” means a single export/import shipment of a specific amount of timber according to an export/import document.”.

3. Point c clause 4 of Article 4 shall be amended as follows:

"c) Provide documents; declare the origin of imported timber according to regulations in clause 1 Article 7 of this Decree; take responsibility for the accuracy of the documents provided and information declared.

4. Clause 5 of Article 4 shall be amended as follows:

“5. Documents prepared for purchase/sale/transfer of ownership of imported timber after customs clearance shall comply with regulations issued by the Minister of Agriculture and Rural Development on management and tracing of forest product origins.”.

5. Article 5 shall be amended as follows:

1. A country/territory is considered low risk if:

a) It has an operative Timber Legality Assurance System in place issuing FLEGT licenses;

b) It has a binding national/territorial regulatory framework on due diligence for timber legality covering the whole supply chain to the country/territory of harvest recognized by Vietnam as meeting the VNTLAS criteria;

c) The indicator for effectiveness of Government according to World Bank Worldwide Governance Indicators (WGI) is from 0 and above. The regulatory system for CITES implementation is rated I-level as announced by the CITES Secretariat and one of the two following are met: Vietnam has concluded an international agreement or treaty on timber legality with the country/territory, or the country/territory has a national regulatory forest certification scheme recognized by Vietnam as meeting timber legality criteria prescribed by this Decree.

2. A country/territory will be considered high risk if:

a) The criteria specified in clause 1 of this Article are not satisfied;

b) The criteria specified in clause 1 of this Article are satisfied but there is proof that the country/territory harvests or trades timber in an illegal manner or uses forged documents according to laws of relevant countries.

3. The Ministry of Agriculture and Rural Development shall preside over and cooperate with the Ministry of Foreign Affairs, the Ministry of Industry and Trade, the Ministry of Finance, relevant ministries, central authorities and organizations specified in the international agreement/treaty to which Vietnam is a signatory in determining the list of low risk countries and territories; before December 31, every year or when there is any change to the list of low risk countries and territories, it shall be published on web portal of the Ministry of Agriculture and Rural Development and www.kiemlam.org.vn.”.

6. Article 6 shall be amended as follows:

1. Timber species are considered high risk if:

a) The species are listed in any of the Appendices of CITES

b) The species are critically endangered precious and rare species in Category IA and Category IIA; on Vietnam’s List of controlled species;

c) The timber species are imported into Vietnam for the first time;

d) The species are threatened with extinction in the country/territory of harvest or illegally harvested or traded or the species are those for which legality certification is obtained by use of forged documents as determined and published by the Ministry of Agriculture and Rural Development, the Ministry of Industry and Trade, the Ministry of Natural Resources and Environment, the Ministry of Foreign Affairs, relevant ministries, central authorities and the organizations specified in international treaties/agreements to which Vietnam is a signatory.

2. Low risk species are defined as those not satisfying any of the criteria specified in Clause 1 of this Article.

3. The Ministry of Agriculture and Rural Development shall preside over and cooperate with the Ministry of Finance in determining the list of imported timber species, including their scientific name, common Vietnamese names and English names (if any); before December 31, every year, the list shall be reviewed and published on web portal of the Ministry of Agriculture and Rural Development and www.kiemlam.org.vn if changed.”.

7. Article 7 shall be amended as follows:

While following customs procedures for the import shipment, in addition to the customs dossier prescribed by customs law, the importer shall present the following documents to the customs authority where the declaration is registered:

1. Original copy of the packing list for imported timber (Form No. 01 in Appendix I hereof).

2. One of the following documents:

a) In case the timber is listed in a CITES Appendix: Copy of the CITES permit for export or re-export issued by a CITES authority of the exporting or re-exporting country; Authentic copy of the CITES permit or the electronic CITES permit for import issued by a CITES authority of Vietnam;

b) In case timber is imported from a country/territory that has entered a Timber Legality Agreement with EU and has an operative FLEGT licensing system: Copy of the FLEGT license to export issued by a competent authority of the exporting country.

3. If the importer presents the physical dossier, after customs procedures are completely followed, the customs authority shall return the timber dossier for import to the importer for storage according to regulations.”.

8. Clause 2 of Article 8 shall be amended as follows:

“2. Exported timber shall be managed by species, importing countries and classification of enterprises that cultivate, harvest and provide timber of cultivated forests, produce, import and export timber.”.

9. Clause 1 of Article 9 shall be amended as follows:

“1. Subject of verification: Shipments of timber for export of owners other than Category I enterprises.”.

10. The first paragraph of Article 10 shall be amended as follows:

“While following customs procedures for the export shipment, in addition to the customs dossier prescribed by customs law, the importer shall present one of the following documents to the customs authority where the declaration is registered:”.

11. Clause 4 shall be added to Article 10 as follows:

“4. If the importer presents the physical dossier, after customs procedures are completely followed, the customs authority shall return the timber dossier for export to the importer for storage according to regulations.”.

12. Title of Chapter III shall be amended as follows:

13. Clause 3 of Article 11 shall be amended as follows:

“3. The first classification shall be done when an enterprise signs up into the enterprise classification system; the succeeding classifications shall be carried out every 02 years for Category I enterprises and every year for Category II enterprises.”.

14. Point c clause 1 of Article 12 shall be amended as follows:

“c) Prepare and submit reports in accordance with clause 5 Article 27 of this Decree and retain original documents as prescribed by law;”.

15. Clause 2 of Article 12 shall be amended as follows:

“2. Category II enterprises are those that engage in classification of enterprises but fail to satisfy any of the criteria specified in Clause 1 of this Article.”.

16. Clause 1 of Article 13 shall be amended as follows:

“1. Subjects of classification: Enterprises that cultivate, harvest and provide timber of cultivated forests, produce, import and export timber.”.

17. Clause 3 and clause 4 Article 13 shall be amended as follows:

“3. Procedures:

a) The applying enterprise (applicant) shall sign up into the enterprise classification system and complete Form No. 08 in Appendix I hereof.

If the applicant cannot access the enterprise classification system, Form No. 08 may be submitted in person or sent by post to the receiving authority, which will enter information into the enterprise classification system;

b) Within 01 working day from the receipt of the enterprise’s information as prescribed in point a of this clause, the enterprise classification system will automatically classify the enterprise into Category I according to the criteria specified in clause 1 Article 12 of this Decree.

If the information provided by the enterprise needs verifying or there is any doubt that the enterprise uses forged documents, the receiving authority shall, within 03 working days from the day on which the classification result is available on the enterprise classification system, send a written notification of the time and contents of verification to the applicant.

Within 05 working days from the notification date, the receiving authority shall cooperate with relevant agencies in verifying the information and inform the result to the applicant;

c) Within 03 working days from the day on which the enterprise is classified into Category I or the verification result is available as prescribed in point b of this Clause, the receiving authority shall classify the enterprise into Category I if the criteria specified in clause 1 Article 12 of this Decree are fully satisfied;

d) Within 01 working day from the day on which the enterprise is classified into Category I as prescribed in point c of this Clause, the receiving authority shall inform the enterprise of the result. In case the criteria for Category I enterprises are not fully satisfied, the receiving authority shall inform and provide explanation for the enterprise and at the same time, send a written notification of the result to the Forest Protection Department that will make review and publish the result on www. kiemlam. org. vn.

4. In case a Category I enterprise or its legal representative is facing criminal prosecution as prescribed in Article 232 of the 2015’s the Criminal Code (amended in 2017) or incurs administrative penalties for illegal logging, deforestation, transport of forest products, trade or processing of forest products that carries a fine of 25.000.000 VND or above; an enterprise is being classified as a Category I enterprise but there is proof that it fails to comply with regulations in point b, point c clause 1 Article 12 of this Decree; an enterprise fails to make declaration according to clause 4a of this Article:

a) Within 01 working day from the day on which information about the violations is received from a competent authority or there is proof that the enterprise fails to comply with regulations in point b, point c clause 1 Article 12 of this Decree or make declaration according to clause 4a of this Article, the receiving authority shall issue a decision to put the enterprise into Category II, update the enterprise classification system and provide explanation therein;

b) Within 01 working day from the day on which the enterprise classification system is updated, the Forest Protection Department shall make review and publish the list of reclassified enterprises on www.kiemlam.org.vn.”.

18. Clause 4a shall be added to Article 13 as follows:

“4a. The Category I enterprise shall be responsible for declaring its dossier for re-classification 30 days prior to the expiration date of recognition of Category I enterprises according to clause 3 Article 11 of this Decree.”.

19. Clause 1 of Article 14 shall be amended as follows:

“1.A FLEGT license shall be granted to each shipment of legal timber with HS code under the List of HS codes of commodities managed by the Ministry of Agriculture and Rural Development of an exporter at the first checkpoint of import into the EU market.”.

20. Clause 2 of Article 15 shall be amended as follows:

2. Erasures and changes are not permitted on the FLEGT license, except the license is renewed, replaced or reissued by an authority assigned by the Ministry of Agriculture and Rural Development.".

21. Clause 1 and clause 2 Article 16 shall be amended as follows:

“1. The FLEGT license shall be granted for: legal timber that has HS code under the List of HS codes of commodities managed by the Ministry of Agriculture and Rural Development and exported to EU market, except timber subject to CITES licensing.

2. FLEGT licensing authority: Authority assigned by the Ministry of Agriculture and Rural Development (hereinafter referred to as “licensing authority”).”.

22. Article 27 shall be amended as follows:

1. Central forest protection authority shall:

a) Develop, manage and operate the enterprise classification system; implement necessary measures to protect information and data therein; ensure accurate, timely and effective sharing of information for relevant agencies, organizations and individuals; inspect and supervise the process of enterprise classification, compliance with regulations of law on timber production and processing nationwide; announce enterprise classification results; advise the Ministry of Agriculture and Rural Development to disclose information in accordance with this Decree;

b) Cooperate with customs authorities in inspecting and tracing origins of timber imported/exported.

2. Licensing authorities shall:

a) Manage issuance, renewal, revocation, reissuance and replacement of FLEGT licenses in accordance with this Decree;

b) Manage the database of applications for FLEGT licensing, including accepted and rejected applications;

c) Provide information to clarify FLEGT licensing issues at the request of competent authorities of importing countries/territories in case of suspicious authenticity and legitimacy of the license.

3. Provincial forest protection authorities (or Departments of Agriculture and Rural Development of provinces in which provincial forest protection authorities are not available) shall:

a) Preside over the certification of timber for export; organize the enterprise classification; inspect and supervise compliance with the law by organizations and individuals within their jurisdiction; manage and trace origins of timber; retain documents in accordance with this Decree and relevant laws; retain, backup and protect data about transactions on the enterprise classification system;

b) Cooperate with customs authorities in inspecting and tracing origins of timber imported/exported.

4. Customs authorities shall:

a) Inspect timber imported/exported according to regulations of this Decree and relevant laws on customs;

b) Cooperate with forest protection authorities and relevant authorities in inspecting and verifying legality of import and export shipments of timber;

c) General Department of Vietnam Customs shall consolidate and provide data on import and export of timber according to Form No. 14 Appendix I enclosed with this Decree and send, on a periodic basis, first half-year reports before July 15 and second half-year reports before January 15 to the Ministry of Agriculture and Rural Development. The closing duration for data collected within the first half of year ranges from January 1 to June 30; the closing duration for data collected within the second half of year ranges from July 1 to December 31.

5. Other organizations and individuals shall:

a) Take legal responsibility for the accuracy and legality of timber in harvest, import, transport, trade, processing and export. Comply with timber legality requirements prescribed in this Decree and relevant laws;

b) Retain timber dossiers for 05 years from the day on which timber is sold;

c) Enterprises that cultivate, harvest and provide timber of cultivated forests, produce, import and export timber shall submit reports according to regulations in the Circular of the Minister of Agriculture and Rural Development on management and tracing of origins of forestry products; provide information about forestry product dossiers at the request of competent authorities according to regulations of law;

d) Declare, explain, provide information about origins of timber in accordance with this Decree and facilitate inspection and supervision by competent authorities.”.

23. Clause 6 shall be added to Article 28 as follows:

“6. In the cases where a legislative document or regulation referred to in this Decree is amended or replaced, the newer one shall apply.”.

1. The phrase “Quốc gia thuộc vùng địa lý” (low risk country) shall be replaced by the phrase “Quốc gia, vùng lãnh thổ thuộc vùng địa lý” (low risk country or territory) in clause 11 Article 3, clause 3 Article 4 of the Government’s Decree No. 102/2020/ND-CP dated September 01, 2020.

2. The phrase “loại gỗ” (category of timber) shall be replaced by the phrase “loài gỗ” (timber species) in clause 3 and point b clause 4 Article 4, point c clause 6 Article 9 and Form No. 10 Appendix I enclosed with the Decree No. 102/2020/ND-CP.

3. The phrase “môi trường mạng” (electronically) shall be replaced by the phrase “môi trường điện tử” (online) in title of Article 21 and clause 1 Article 21 of the Decree No. 102/2020/ND-CP.

4. Form No. 01 Appendix I enclosed with the Decree No. 102/2020/ND-CP shall be replaced by Form No. 01 Appendix I enclosed with this Decree.

5. Form No. 04 Appendix I enclosed with the Decree No. 102/2020/ND-CP shall be replaced by Form No. 04 Appendix I enclosed with this Decree.

6. Form No. 05 Appendix I enclosed with the Decree No. 102/2020/ND-CP shall be replaced by Form No. 05 Appendix I enclosed with this Decree.

7. Form No. 06 Appendix I enclosed with the Decree No. 102/2020/ND-CP shall be replaced by Form No. 06 Appendix I enclosed with this Decree.

8. Form No. 08 Appendix I enclosed with the Decree No. 102/2020/ND-CP shall be replaced by Form No. 08 Appendix I enclosed with this Decree.

9. Form No. 14 Appendix I enclosed with the Decree No. 102/2020/ND-CP shall be replaced by Form No. 14 Appendix I enclosed with this Decree.

10. Appendix II enclosed with the Decree No. 102/2020/ND-CP shall be replaced by Appendix II enclosed with this Decree.

11. Clause 4 and Clause 5 Article 28 of the Decree No. 102/2020/ND-CP shall be annulled.

12. Form No. 02, Form No. 03 Appendix I and Appendix III enclosed with the Decree No. 102/2020/ND-CP shall be annulled.

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

2. Ministers, Heads of ministerial agencies, Heads of Governmental agencies, Presidents of the People’s Committees of central-affiliated cities and provinces, relevant agencies, organizations and individuals are responsible for the implementation of this Decree.

Timber processors and exporters that have submitted applications for classification of enterprises before the effective date of this Decree shall continue to be classified according to regulations in the Government's Decree No. 102/2020/ND-CP dated September 01, 2020.

1. This Decree comes into effect from November 15, 2024.

2. Regulations on classification of enterprises other than timber processors and exporters in this Decree will come into force after 18 months from the effective date of this Decree./.