Joint Circular No. 102/1999/TTLT/BTC-BNNPTNT guides the establishment, management, and use of the fund to combat illegal logging, deforestation, and the production, trading, and transportation of illegally sourced forest products.

JOINT CIRCULAR

Guidelines for the establishment, management, and use of the fund to combat illegal logging, production, trading, and transportation of forest products

Implementing the directive of the Prime Minister in Circular No. 354/CP-NN dated April 9, 1999 regarding permission for forest rangers to establish a fund to combat illegal logging and commercial fraud, the Ministry of Finance and the Ministry of Agriculture and Rural Development provide guidance as follows:

- Administrative state management agencies, public institutions, mass organizations, political organizations, political social organizations (collectively referred to as administrative and institutional units - AINUs) at all levels of budgetary planning within the Province of Thua Thien Hue.

1. The fund to combat illegal logging and commercial fraud (hereinafter referred to as "the fund to combat illegal logging, production, trading, and transportation of forest products") shall be established based on deductions from the proceeds obtained from handling administrative violations in forest management, protection, and forest product management according to the provisions of Government Decree No. 77/CP dated November 29, 1996 on administrative penalties in the field of forest management, protection, and forest product management.

2. The entities eligible to establish the fund to combat illegal logging, production, trading, and transportation of forest products are Forest Ranger Districts, Forest Ranger Stations, and Forest Product Inspection Stations (hereinafter referred to as Forest Ranger Stations) assigned the task of handling administrative violations in the fields mentioned in Point 1, Part A of this Circular.

3. The establishment of the fund must comply with the following principles:

- The fund can only be established after an administrative penalty decision has been made by a competent state agency and there are no appeals within the time prescribed by law. In cases where there are appeals, the fund can only be established after the appeal resolution decision of the competent state agency becomes effective.

- The fund can only be established from the actual proceeds collected according to the law and deposited into the temporary account opened by the Department of Finance and Price Control at the State Treasury.

4. The fund to combat illegal logging, production, trading, and transportation of forest products can only be established at the provincial level and monitored in detail for each Forest Ranger unit. Financial agencies and the State Treasury have the responsibility to inspect and supervise the establishment, management, and use of the fund in accordance with the law.

B - SPECIFIC PROVISIONS

I. CONCENTRATION OF REVENUES

1- Revenues related to combating illegal logging, production, trading, and transportation of forest products include:

- Penalties paid by organizations and individuals who commit administrative violations in the field of forest management, protection, and forest product management according to the Administrative Violation Handling Law dated July 6, 1995 and its implementing regulations.

- Proceeds from the sale of illegally produced forest products, seized items, and vehicles according to the decision of the competent state agency.

2- All revenues mentioned above must be concentrated into the temporary account opened by the financial department at the local State Treasury. In cases where incidents occur in multiple locations or border areas, the place of arrest will serve as the basis for resolution.

3- Departments of Finance and Price Control of provinces and centrally-administered cities open temporary accounts at the provincial State Treasury to collect revenues from inspections, detections, arrests, and handling by forest rangers. For cases handled far from the location of the temporary account, the collected funds must be deposited into the district or county State Treasury. The district or county State Treasury is responsible for concentrating all revenues into the temporary account of the Department of Finance and Price Control at the provincial State Treasury.

II. USE OF REVENUES AND ESTABLISHMENT, USE OF THE FUND TO COMBAT ILLEGAL LOGGING, PRODUCTION, TRADING, AND TRANSPORTATION OF FOREST PRODUCTS

1. The revenues related to combating illegal logging, production, trading, and transportation of forest products mentioned in Point 1, Section I, Part B of this Circular shall be used to cover the following expenses:

- Investigation, verification, arrest costs including fuel, night shift allowances, overtime payments, and other expenses (excluding those already balanced in the unit's budget).

- Transportation, loading, storage, inspection, organization of sales of confiscated items and vehicles.

- Emergency care, pre-release care of animals before release into the forest, and organization of the release of wild animals back into the forest.

The Forest Ranger units mentioned in Point 2, Part A of this Circular are responsible for preparing quarterly budgets and settlements with the Department of Finance and Price Control regarding relevant expenses. The Department of Finance and Price Control is responsible for paying these expenses when the forest ranger force provides complete documentation according to the prescribed procedures.

Depending on specific conditions in each locality, the Director of the Department of Finance and Price Control may delegate the district or county finance office to monitor revenue collection and concentration into the temporary account; pay the aforementioned expenses of Forest Ranger Stations located in the district for cases with revenue sources, but must report to the Department of Finance and Price Control for overall monitoring and management.

2. The remaining proceeds from combating illegal logging, production, trading, and transportation of forest products after deducting the aforementioned expenses (considered as 100%) shall be handled as follows:

2.1. Establishment of the fund to combat illegal logging, production, trading, and transportation of forest products: 30% (thirty percent);

2.2. The remaining 70% (seventy percent) shall be fully deposited into the state budget.

3. The fund to combat illegal logging, production, trading, and transportation of forest products shall be managed and used as follows:

3.1. Allocate 30% for bonuses and rewards for organizations and individuals with achievements in forest management, protection, and forest product management, such as: publicity, summary, rewards for whistleblowers and discoverers; allowances during treatment, expenses for individuals injured by accidents or by poachers without health insurance; assistance to families of those who died while on duty.

The Chairman of the People's Committees of provinces and centrally governed cities shall specify the specific award levels for organizations and individuals with achievements within the framework of the award funds allocated to be commensurate with actual conditions and bear responsibility for their decisions.

Based on the provisions of the Chairman of the Provincial People's Committee, the head of the Forest Protection agency shall be responsible for examining and deciding on the distribution of awards in a transparent and democratic manner depending on the complexity of the case and the level of participation of each unit and individual.

3.2. Allocate sixty percent (60%) to purchase and supplement equipment and means to serve forest management, forest protection, and timber management activities; to support operations against illegal logging, production, trading, and transportation of timber without revenue from fines collected by competent state agencies.

The Director of the Forest Protection Branch shall be responsible for developing patrol, inspection, crackdown plans, and plans to purchase and supplement necessary equipment and means to serve the forest management, forest protection, and timber management activities of the Branch and subordinate units from this budget and submit them to the Department of Finance and Prices for review. Expenditures for purchasing and supplementing equipment and means must comply with current state budget expenditure regulations.

3.3. Allocate ten percent (10%) to be submitted to the immediate superior authority directing forest management, forest protection, and timber management activities, to be handled as follows:

3.3.1. Allocate five percent (5%) to be submitted to the immediate superior local management authority to fund the direction of forest management, forest protection, and timber management activities in the locality. The People's Committee of the province or centrally governed city shall decide on the competent agency (Forest Protection Branch or Department of Agriculture and Rural Development) to open an account at the State Treasury where its headquarters is located to monitor, manage, and use this source of funding.

3.3.2. Allocate five percent (5%) to be submitted to the immediate superior central authority directing forest management, forest protection, and timber management activities to establish a sector fund. Assign the Forest Protection General Department to open an account at the State Treasury where its headquarters is located to monitor, manage, and use it for supplementary expenditures for activities within the functions and responsibilities of the Forest Protection General Department and to enhance coordination with provincial and centrally governed city People's Committees to strengthen the guidance and inspection capacity of the Department over local Forest Protection units and bases.

Management and use of the sector fund must ensure compliance with budget preparation and settlement regulations under the law. The Director of the Forest Protection General Department shall decide on the use of the sector fund and bear responsibility for such decisions.

The year-end balance of the anti-illegal logging and timber production, trading, and transportation fund (including the sector fund) shall be carried forward to the next year for continued use.

4. The proceeds from combating illegal logging and timber production, trading, and transportation that are remitted to the State Budget (as stipulated in point 2.2 of this section) shall be retained entirely for the local budget and used according to the decision of the Chairman of the People's Committee of the province or centrally governed city. Among these, priority shall be given to the following objectives:

4.1. Supplementing investment capital for forest restoration according to national programs and targets and local plans;

4.2. Supplementing capital for basic construction and purchasing means to serve forest management, forest protection, and timber management activities of local Forest Protection forces;

4.3. Supplementing capital for basic construction of infrastructure and social welfare projects in the locality;

4.4. Supporting related costs associated with forest management, forest protection, and timber management cooperation work, such as costs for education, propaganda, mid-term reviews, final summaries...

4.5. Based on the actual situation in districts and the actual amount retained for the local budget, the Chairman of the Provincial People's Committee shall decide to provide additional funding to districts and towns implementing cooperative tasks to combat illegal logging and timber production, trading, and transportation, especially border districts between provinces and border districts.

Reinvestment in forests, expenditures for purchasing equipment for personnel engaged in forest management, forest protection, and timber management, and expenditures for constructing infrastructure and social welfare projects must comply with current state regulations on budget expenditure management and basic construction investment management.

III. REPORTING AND ACCOUNTING REGIME

Forest Protection units that allocate awards from proceeds from combating illegal logging and timber production, trading, and transportation must maintain ledgers, retain vouchers, and conduct accounting and bookkeeping in accordance with current regulations.

Every quarter and at the end of the year, the Forest Protection Branches of provinces and centrally governed cities shall be responsible for reporting to the Ministry of Finance and the Ministry of Agriculture and Rural Development on the results of inspections and handling, the results of administrative penalty revenues, the establishment and use of the anti-illegal logging and timber production, trading, and transportation fund.

The Departments of Finance and Prices of provinces and centrally governed cities, and budget management and usage units shall implement budget preparation and settlement reports in accordance with the State Budget Law.

The proceeds from the sale of illegally produced timber, confiscated items, and means, remitted to the State Budget, shall be recorded in the corresponding chapter, item 10, sub-item 052 of the current State Budget Record.

C. IMPLEMENTATION

The Chairmen of the People's Committees of provinces and centrally governed cities shall specify the specific award levels for organizations and individuals with achievements in forest management, forest protection, and timber management activities; guide and direct the implementation of the management and use of funds obtained from combating illegal logging and timber production, trading, and transportation retained for the local budget in accordance with this Circular.

This Circular shall take effect fifteen days from the date of signature. Matters discovered but not yet resolved by the time this Circular takes effect shall be handled in accordance with this Circular.

The Forest Protection Agencies shall establish a fund for preventing illegal logging, production, trading, and transportation of forest products. They shall not reimburse expenses and allowances stipulated in Circular No. 52 TC/CSTC dated September 12, 1996, issued by the Ministry of Finance, regarding the collection and utilization of fines for administrative violations.

In the course of implementation, if there are difficulties or obstacles, it is recommended that relevant sectors and levels promptly report to the Ministry of Finance and the Ministry of Agriculture and Rural Development for further study and supplementary guidance./.