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

DECREE

Regulations on the Vietnam Timber Legality Assurance System

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

Pursuant to the Forestry Law dated November 15, 2017;

Pursuant to the Voluntary Partnership Agreement between the Socialist Republic of Vietnam and the European Union on the Implementation of Forest Law Enforcement, Governance and Trade, which took effect from June 1, 2019;

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

The Government issues this Decree stipulating the Vietnam Timber Legality Assurance System.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

2. The Vietnam Timber Legality Assurance System for logging, transportation, buying and selling, processing of timber shall be implemented in accordance with the provisions of laws on management and traceability of forest products and other relevant legal documents.

Article 2. Applicability

This Decree applies to organizations, households, families, community residents, individuals within the country; foreign organizations and individuals involved in activities related to the contents stipulated in Article 1 of this Decree.

Article 3. Explanation of Terms

In this Decree, the following terms are understood as follows:

3. Timber owner refers to an organization; household, family, community resident, individual (hereinafter referred to as individual) who has legitimate ownership rights over timber according to the law.

4. Organization means enterprise, cooperative, cooperative federation, forest protection management board, special-use forest management board, and other organizations established in accordance with the law.

5. Verification includes activities to check and verify the legality, legitimacy, and conformity of documents with the actual consignment of imported and exported timber.

6. Local Forest Protection Agency includes: local Forest Protection Agency at district level, provincial Forest Protection Agency in areas without district-level Forest Protection Agency.

8. Enterprise classification information system is an automatic system for classifying enterprises with the function of receiving enterprise classification registration information, processing and storing information, and announcing the results of enterprise classification.

9. Relevant laws of the country of origin refer to current regulations of that country regarding logging, forest management, taxation, trade, customs for timber.

10. Timber declaration form contains information about the consignment of timber declared by the timber owner when importing and exporting timber. The timber owner is responsible under the law for the contents declared and the legal origin of timber in the declaration form.

12. High-risk timber refers to timber falling under one of the criteria stipulated in Clause 1 of Article 6 of this Decree.

13. Importer's due diligence is the act of the importer providing information related to the legality of the source of imported timber, implementing measures to assess and mitigate risks as prescribed by the country of origin; implementing risk assessment and mitigation measures as prescribed in this Decree and being responsible under the law for the information provided.

Chapter II

MANAGEMENT OF IMPORTED AND EXPORTED TIMBER

Section 1

MANAGEMENT OF IMPORTED TIMBER

Article 4. General Provisions on the Management of Imported Timber

1. Imported timber must be lawful, go through import procedures, and be subject to inspection and supervision by customs authorities in accordance with laws on customs.

2. The management of imported timber shall be carried out based on applying risk management measures to prevent, detect, stop, and promptly address violations of the law, ensuring that imported timber is lawful, while encouraging and facilitating organizations and individuals who comply with the law.

4. The importer of timber shall bear legal responsibility for the following contents:

a) The lawful origin of imported timber according to relevant laws of the country where the timber was harvested;

a) When the importer of timber sells the entire or part of a consignment of imported timber to one or more other timber owners: The importer of timber shall prepare a list of timber extracted from the list of imported timber, make copies of the imported timber documentation, sign and stamp (if applicable), hand over to the buyer, and retain the original imported timber documentation;

b) When the buyer at point a of this clause sells the entire or part of a consignment of imported timber to another timber owner: The seller shall prepare a list of timber extracted from the previous purchase list, make copies of the imported timber documentation, sign and stamp (if applicable), hand over to the buyer, and retain a copy;

c) When selling imported timber to the next owner: The seller shall follow the provisions of point b of this clause;

d) In cases of transferring ownership through other forms: Follow the provisions of points a, b, or c of this clause.

1. A country belongs to a positive geographic region exporting timber to Vietnam if it meets one of the following criteria:

a) Operating a Legal Timber Assurance System and issuing FLEGT licenses;

b) Having national legal regulations on accountability for the legality of timber throughout the supply chain from the country of harvest, consistent with Vietnam's Legal Timber Assurance System;

c) Having a Government Effectiveness Index of 0 or higher according to the latest ranking by the World Bank on the Worldwide Governance Indicators (WGI); having a system of regulatory legal documents on implementing CITES classified as Type I by the CITES Secretariat, and meeting one of the following criteria: The country has signed a bilateral agreement with Vietnam on legal timber or the country has a national timber certification system recognized by Vietnam as meeting the criteria for legal timber as stipulated in this Decree.

2. A country belongs to a negative geographic region exporting timber to Vietnam if it does not meet the criteria specified in Clause 1 of this Article.

3. Authority to announce the List of Countries Belonging to Positive Geographic Regions 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, the Ministry of Natural Resources and Environment, the Ministry of Foreign Affairs, and related ministries and sectors to unify and take responsibility for announcing the List of Countries Belonging to Positive Geographic Regions Exporting Timber to Vietnam for each period according to international treaties to which Vietnam is a member. The List of Countries Belonging to Positive Geographic Regions Exporting Timber to Vietnam shall be announced on the website: www.kiemlam.org.vn.

1. Timber is considered to be at risk when imported into Vietnam if it meets any of the following criteria:

a) It belongs to the Appendices of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (hereinafter referred to as CITES Appendices);

b) It belongs to the List of Endangered, Precious, and Rare Forest Plants and Animals Group IA, Group IIA; the List of Endangered, Precious, and Rare Species Prioritized for Protection as prescribed by Vietnamese law;

c) It is being imported into Vietnam for the first time;

d) It is at risk of extinction in the country of extraction or illegal trade, as determined by the Ministry of Agriculture and Rural Development in coordination with the Ministry of Industry and Trade, the Ministry of Natural Resources and Environment, the Ministry of Foreign Affairs, relevant ministries, sectors, and organizations specified in international treaties to which Vietnam is a member.

2. Timber is not considered to be at risk if it does not meet the criteria stipulated in Clause 1 of this Article.

3. Authority to announce types of timber that have been imported into Vietnam: The Ministry of Agriculture and Rural Development shall take the lead and coordinate with relevant agencies to update and announce the list of types of timber that have been imported into Vietnam; this will be done biannually on June 30 and December 31 each year. The list of types of timber that have been imported into Vietnam will be published on the website: www.kiemlam.org.vn including scientific names, Vietnamese commercial names, and English commercial names (if available).

When processing customs procedures for imported timber consignments, in addition to the customs declaration documents required by customs laws, the importer must submit to the customs office where the declaration is registered the following documents:

1. The original inventory of imported timber prepared by the importer according to Form No. 01 or Form No. 02 attached as Appendix I to this Decree.

2. One of the following documents:

a) In the case of timber belonging to the CITES Appendices: A copy of the CITES export permit or re-export permit issued by the competent authority of the exporting or re-exporting country; a copy of the CITES import permit issued by the competent authority of Vietnam.

b) In the case of timber imported from a country that has signed a legal timber trade agreement with the EU and operates a FLEGT licensing system: A copy of the FLEGT export permit issued by the competent authority of the exporting country.

c) In the case where the imported timber consignment does not fall under the provisions of point a or point b of this clause: An inventory of the origin of imported timber according to Form No. 03 attached as 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, processed for export, and subject to inspection and supervision by customs authorities in accordance with customs laws.

3. Exported timber must have a CITES permit or a FLEGT permit or a timber inventory as prescribed in this Decree.

4. Export consignments of timber that have been granted a FLEGT permit are given priority in customs procedures in accordance with customs laws.

Article 9. Confirmation of wood origin before export

Export consignments of wood with domestic plantation wood origin to markets outside the EU do not require confirmation.

2. Confirming authority: The local Forest Protection Agency.

3. Documents for requesting confirmation of wood origin for export include:

a) Original application for confirmation of wood origin for export according to Model No. 04 in Appendix I issued together with this Decree;

b) Original list of exported wood prepared by the wood owner according to Model No. 05 or Model No. 06 in Appendix I issued together with this Decree;

c) Copy of the import wood file as stipulated in Article 7 of this Decree or copy of the domestic wood origin file as regulated by the Minister of Agriculture and Rural Development on management and traceability of forest products.

4. Method of submitting documents: Wood owners may submit directly, through postal services, through the Enterprise Classification Information System, or via email.

5. Implementation procedure:

a) Wood owners shall submit one set of documents as prescribed in Clause 3 of this Article to the local Forest Protection Agency. Within one working day from the date of receiving the documents, the local Forest Protection Agency shall be responsible for checking the validity of the wood import file. In case the documents are invalid, within one working day from the date of receiving the documents, the local Forest Protection Agency shall guide the wood owner directly or in writing to complete the documents;

b) Within three working days from the date of receiving valid documents, the local Forest Protection Agency shall complete the actual inspection of the export wood consignment as prescribed in Clause 6 of this Article and confirm the list of wood. In case the list of wood is not confirmed, within one working day from the date of issuing the inspection report, the local Forest Protection Agency shall notify in writing and specify the reasons.

6. Inspection of export wood consignment:

a) Inspection time: Before loading the wood consignment onto the means of transport for export;

b) Inspection location: At the storage warehouse or yard as requested by the wood owner;

d) Degree of actual inspection: Inspect 20% of the wood consignment; in case there is information about violation, the forestry official shall report and propose the head of the local Forest Protection Agency to decide to increase the inspection ratio and extend the inspection period, with the maximum extension not exceeding two days. The head of the Forest Protection Agency must bear legal responsibility for their decision.

When processing customs procedures for wood export consignments, in addition to the customs declaration documents as prescribed by customs laws, the wood owner must submit to the customs office where the declaration is registered one of the following documents:

1. For wood listed in CITES Appendix: Original or electronic copy of the CITES export permit issued by the Vietnamese CITES Management Authority.

2. For wood not listed in CITES Appendix:

a) Export consignment to the EU market: Original or electronic copy of the FLEGT permit;

b) Export consignment to markets outside the EU:

If the wood owner is a Group I enterprise: Original list of exported wood prepared by the wood owner.

If the wood owner is not a Group I enterprise: Original list of exported wood prepared by the wood owner, confirmed by the local Forest Protection Agency as prescribed in Article 9 of this Decree.

CLASSIFICATION OF WOOD PROCESSING AND EXPORT ENTERPRISES

Article 11. General Provisions on Classification of Enterprises

1. The classification of enterprises is carried out through the Enterprise Classification Information System.

2. The classification of enterprises is continuously operated based on regular updates of information about the operation process and compliance with laws of enterprises, through the self-reporting and self-responsibility mechanism of enterprises and the verification results of competent state management agencies as prescribed in this Decree.

4. The Provincial Forest Inspection Authority or the Department of Agriculture and Rural Development at the locality without a Provincial Forest Inspection Authority shall be responsible for classifying enterprises according to Articles 12 and 13 of this Decree.

Article 12. Criteria for Classifying Enterprises

1. Group I enterprises are those that meet all the following criteria:

a) Compliance with all legal provisions regarding establishment and operation for at least one year since the registration of the enterprise's establishment;

b) Compliance with legal regulations on ensuring legal timber as stipulated in this Decree and the regulations of the Minister of Agriculture and Rural Development on management and tracing the origin of forest products;

d) No violation of laws to the extent requiring handling as prescribed in Clause 4, Article 13 of this Decree;

đ) The criteria at points a and b of this clause are detailed in Appendix II issued together with this Decree.

2. The agency receiving registration and classification of enterprises (hereinafter referred to as the receiving agency): The Provincial Forest Inspection Authority or the Department of Agriculture and Rural Development at the locality without a Provincial Forest Inspection Authority where the enterprise's main office is located or where the enterprise's wood processing facility is located.

a) The enterprise registers into the Enterprise Classification Information System, self-reports according to Form No. 08 of Appendix I issued together with this Decree.

In cases where enterprises cannot apply the Enterprise Classification Information System, they shall directly send or through public postal services or post offices the Enterprise Classification Reporting Form for Processing and Export according to Form No. 08 of Appendix I issued together with this Decree to the receiving agency. The receiving agency is responsible for entering the information into the Enterprise Classification Information System.

b) Within one working day from the date of receipt of the enterprise's self-reported information as prescribed in point a of this clause, the Enterprise Classification Information System of the receiving agency bases on the criteria stipulated in Clause 1, Article 12 of this Decree to automatically classify Group I enterprises.

In cases where there is suspicion of the information reported by the enterprise, verification is needed; within three working days from the date of the classification result of the Enterprise Classification Information System, the receiving agency shall notify the enterprise applying for classification in writing, specifying the time and content to be verified. Within five working days from the date of notification, the receiving agency shall cooperate with relevant agencies to verify the accuracy of the enterprise's self-reported information and notify the verification result to the enterprise.

c) Within three working days from the date the enterprise is automatically classified as a Group I enterprise by the Enterprise Classification Information System or from the date the verification of self-reported information ends as prescribed in point b of this clause, if fully meeting the criteria stipulated in Clause 1, Article 12 of this Decree, the receiving agency will classify the enterprise as a Group I enterprise on the Enterprise Classification Information System.

d) Within one working day from the date of classification of Group I enterprises as prescribed in point c of this clause, the receiving agency notifies the classification result to the registered enterprise. In case the enterprise does not fully meet the criteria of Group I enterprises, the receiving agency will notify the enterprise, clearly stating the reasons.

a) Within one working day from the date of receipt of the violation handling information from the competent authority, the receiving agency decides to transfer the classification of the enterprise from Group I to Group II, updates it in the Enterprise Classification Information System, and clearly states the reason on the enterprise classification system.

b) Within one working day from the date the receiving agency updates the enterprise classification transfer result on the Enterprise Classification Information System, the Forest Inspection General Department will compile and publicly announce the list of transferred enterprises on the website: www.kiemlam.org.vn.

5. The Ministry of Agriculture and Rural Development shall specify the classification of enterprises.

Chapter IV

FLEGT LICENSE AND INDEPENDENT ASSESSMENT

Section 1

ISSUANCE OF FLEGT LICENSE

Article 14. General Provisions on Issuing FLEGT Licenses

2. Only one FLEGT license shall be issued for each consignment of timber exported to the EU market, and it must be issued prior to the declaration of customs clearance.

3. The FLEGT license shall be issued in electronic form. In cases where electronic issuance is not possible or at the request of the timber owner, a paper FLEGT license shall be issued, which must then be updated in the electronic licensing system. The issuing authority shall retain and electronically send a copy of the issued FLEGT license to the competent FLEGT authority of the importing EU country.

4. For mixed consignments where all required information cannot be declared on the FLEGT license, qualitative and quantitative information related to the description of the timber consignment shall be declared in the Additional Goods Description Form, Model No. 09, Appendix I of this Decree.

5. For consignments consisting of wood products containing both CITES-listed timber and non-CITES timber being exported to the EU, a single CITES permit shall be issued in accordance with Decree No. 06/2019/NĐ-CP dated January 22, 2019 of the Government on the management of endangered and precious wild flora and fauna and the implementation of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). For CITES-listed timber, the application for a CITES permit shall comply with Clause 2, Article 23 of Decree No. 06/2019/NĐ-CP; for non-CITES timber, the application for a permit shall comply with Clause 3, Article 16 of this Decree.

6. Consignments of timber that have been issued a CITES permit are exempt from obtaining a FLEGT license.

Article 15. FLEGT License and Validity Period of the FLEGT License

1. The FLEGT license shall be presented on A4 size paper in bilingual format in Vietnamese and English as specified in Model No. 10, Appendix I of this Decree. All information in the license shall be fully recorded in English. The license shall be signed and stamped by the Competent Authority managing CITES in Vietnam.

3. The validity period of the FLEGT license shall not exceed six months from the date of issuance.

Article 16. Issuance of FLEGT Licenses

3. Application Documents for Issuance of FLEGT Licenses:

a) Original application for issuance of a FLEGT license according to Model No. 11, Appendix I of this Decree;

b) Original export declaration for consignments of timber from enterprises in Group I; original export declaration confirmed by the local Forest Protection Department for consignments of timber from timber owners subject to Clause 1, Article 9 of this Decree;

c) Copy of the sales contract or equivalent;

d) Invoice as prescribed by the Ministry of Finance (if applicable);

đ) Additional documents providing evidence of the legal origin of the exported timber consignment (if applicable).

4. Method of Submitting Application Documents: Timber owners may submit directly, through public postal services, post offices, or via the national single window portal, the FLEGT licensing system, or the national e-government portal.

5. Implementation procedure:

a) The timber owner shall submit one set of application documents as stipulated in Clause 3 of this Article to the Issuing Authority. The Issuing Authority shall verify the validity of the application documents. If the application documents are invalid, within two working days from the date of receipt, the Issuing Authority shall notify and guide the timber owner to complete the application documents in writing, by email, or through the national single window portal, the FLEGT licensing system, or the national e-government portal;

b) Within five working days from the date of receiving complete and valid application documents, the Issuing Authority shall verify the legality of the application documents and issue the FLEGT license. If the license is not issued, the Issuing Authority shall notify the timber owner in writing and specify the reasons;

If there are suspicions regarding the legal origin of the timber consignment applying for a FLEGT license, within three working days from the date of receipt of the application documents, the Issuing Authority shall notify the timber owner, the verification agency, and other relevant agencies in writing, specifying the verification period. The Issuing Authority shall lead and coordinate with the verification agency and other relevant agencies to organize the verification process to clarify the legality of the timber consignment. The verification period shall not exceed ten working days from the date of notification. At the end of the verification, a verification report shall be established according to Model No. 12, Appendix I of this Decree;

c) Within one working day from the end of the verification, the Issuing Authority shall issue the FLEGT license if the exported timber consignment meets the conditions for issuance, or notify the timber owner in writing specifying the reasons for refusing the issuance of the FLEGT license;

d) Within one working day from the date of issuance of the FLEGT license, the Issuing Authority shall return the FLEGT license to the timber owner, publish information about the issued FLEGT license on the Issuing Authority's website, and simultaneously send an electronic copy of the issued FLEGT license to the competent FLEGT authority of the importing EU country.

6. In cases where the export procedures for sample timber consignments for commercial purposes are carried out, the application documents for issuance of a FLEGT license shall include the components specified in points a, b, and đ of Clause 3 of this Article.

Article 17. Extension of FLEGT Permit

1. Objects for extending the FLEGT Permit: The FLEGT Permit that has expired but the timber owner has not yet exported the consignment of timber which was granted the permit and wishes to request an extension.

2. Authority to extend the FLEGT Permit: The authority specified in Clause 2 of Article 16 of this Decree.

3. Documents for requesting an extension of the FLEGT Permit:

a) Original application for extending the FLEGT Permit, clearly stating the reasons for requesting the extension according to Model No. 13 in Appendix I issued together with this Decree;

b) Original FLEGT Permit for paper permits or a copy of the FLEGT Permit for electronic permits previously issued.

4. Method of Submitting Application Documents: Timber owners may submit directly, through public postal services, post offices, or via the national single window portal, the FLEGT licensing system, or the national e-government portal.

5. Implementation procedure:

a) The timber owner submits one set of documents stipulated in Clause 3 of this Article to the issuing authority. In case the documents are not valid, within two working days from the date of receiving the documents, the issuing authority will notify and guide the timber owner to complete the documents in writing through the National Single Window Portal or the FLEGT Permit Issuance System or the National Public Service Portal;

b) Within three working days from the date of receiving valid documents, the issuing authority will check the validity of the documents and extend the FLEGT Permit. If the extension is not granted, the issuing authority will notify in writing and specify the reasons to the timber owner;

c) Within one working day from the date of extending the FLEGT Permit, the issuing authority will return the extended FLEGT Permit to the timber owner, publish information about the extended FLEGT Permit on the issuing authority's website, and simultaneously inform the FLEGT competent authority of the importing country in the EU. In case the FLEGT Permit extension is not granted, within one working day from the date of signing the refusal notice, the issuing authority will send a notification letter to the timber owner.

6. Within fifteen working days from the date when the FLEGT Permit expires and the timber owner requests an extension, the procedures for requesting an extension of the FLEGT Permit must be completed. The FLEGT Permit extension will be made once by inserting the new expiration date and stamping in box 4.1 of the FLEGT Permit. The maximum validity period of the extended FLEGT Permit is two months from the date of issuance of the extension.

Article 18. Replacement of FLEGT Permit

1. Objects for replacing the FLEGT Permit: The paper FLEGT Permit that has been issued and lost, damaged, or contains errors.

2. Authority to replace the FLEGT Permit: The authority specified in Clause 2 of Article 16 of this Decree.

3. Documents for requesting replacement of the FLEGT Permit:

a) In case the paper FLEGT Permit that has been issued is lost: Original application for replacing the FLEGT Permit according to Model No. 13 in Appendix I issued together with this Decree;

b) In case the paper FLEGT Permit that has been issued is damaged or contains errors: In addition to the documents specified in point a of this clause, the original FLEGT Permit previously issued must be included;

c) In case the electronic FLEGT Permit contains errors: In addition to the documents specified in point a of this clause, a copy of the FLEGT Permit previously issued must be included.

4. Method of Submitting Application Documents: Timber owners may submit directly, through public postal services, post offices, or via the national single window portal, the FLEGT licensing system, or the national e-government portal.

5. Implementation procedure:

a) The timber owner submits one set of documents stipulated in Clause 3 of this Article to the issuing authority. In case the documents are not valid, within two working days from the date of receiving the documents, the issuing authority will notify and guide the timber owner to complete the documents in writing or via email or through the National Single Window Portal or the FLEGT Permit Issuance System or the National Public Service Portal;

b) For the case stipulated in point a of Clause 3 of this Article: Within two working days from the date of receiving valid documents, the issuing authority will issue a letter to the General Department of Customs to confirm the clearance status of the consignment of timber that was previously granted the FLEGT Permit. Within one working day from the date of receiving the letter from the General Department of Customs, the issuing authority will replace the FLEGT Permit for the timber owner. If the replacement is not granted, the issuing authority will notify in writing and specify the reasons to the timber owner;

c) For the cases stipulated in points b and c of Clause 3 of this Article: Within three working days from the date of receiving valid documents, the issuing authority will replace the FLEGT Permit. If the replacement is not granted, the issuing authority will notify in writing and specify the reasons to the timber owner;

d) Within one working day from the date of replacing the FLEGT Permit, the issuing authority will return the replaced FLEGT Permit to the timber owner, publish information about the replaced FLEGT Permit on the issuing authority's website, and simultaneously inform the FLEGT competent authority of the importing country in the EU. In case the FLEGT Permit replacement is not granted, within one working day from the date of signing the refusal notice, the issuing authority will send a notification letter to the timber owner.

6. The FLEGT Permit replacement shall be issued according to Model No. 10 in Appendix I issued together with this Decree and must include all information as in the previously issued FLEGT Permit and marked "replacement permit." The validity period of the replaced FLEGT Permit shall be the same as the initial FLEGT Permit.

Article 19. Reissuing the FLEGT Permit

1. Recipients of reissued FLEGT Permit: The FLEGT Permit shall be reissued when there is a change in the product, HS code, species name, unit of measurement, or if the quantity, volume, or weight of the export timber shipment differs from that stated on the previously issued permit by more than 10%.

2. Issuing Authority for Reissued FLEGT Permit: The authority specified in Clause 2, Article 16 of this Decree.

3. Method of Submitting Application Documents: The timber owner may submit directly, through public postal services, post office, or via the internet (National Single Window Portal, FLEGT Permit Issuance System, National Public Service Portal).

4. Application Documents for Reissuing the FLEGT Permit:

a) In cases where the quantity, volume, or weight of the export timber shipment is less than that stated on the previously issued FLEGT Permit: An original application for reissue according to Model No. 13 in Appendix I attached to this Decree, along with the original FLEGT Permit previously issued in paper form, or a copy of the electronically issued FLEGT Permit previously issued.

b) In cases where the quantity, volume, or weight of the export timber shipment is greater than that stated on the previously issued FLEGT Permit, or there is a change in the product, HS code, or species name: The documents specified in point a of this clause and points b, c, and đ of Clause 3, Article 16 of this Decree.

5. Implementation Procedure

a) For cases stipulated in point a of Clause 4 of this Article:

The timber owner submits one set of the application documents specified in point a of Clause 4 of this Article to the Issuing Authority.

If the application documents are not valid, within one working day from the date of receipt of the documents, the Issuing Authority will notify and guide the timber owner to complete the documents in writing, by email, or through the National Single Window Portal, FLEGT Permit Issuance System, or National Public Service Portal.

Within two working days from the date of receipt of valid documents, the Issuing Authority will review the documents and issue the FLEGT Permit. If the permit is not issued, the Issuing Authority will notify the timber owner in writing, specifying the reasons for refusal.

Within one working day from the date of reissuing the FLEGT Permit, the Issuing Authority will return the FLEGT Permit to the timber owner, publish information about the reissued FLEGT Permit on the Issuing Authority's website, and simultaneously inform the FLEGT Competent Authority of the importing EU country. If the FLEGT Permit is not extended, within one working day from the date of signing the refusal extension notice, the Issuing Authority will send a notification to the timber owner.

b) For cases stipulated in point b of Clause 4 of this Article: The implementation procedure follows the provisions of Clause 5, Article 16 of this Decree.

6. Validity Period of Reissued FLEGT Permit: The maximum validity period of the reissued FLEGT Permit is six months from the date of issuance.

Article 20. Revocation of the FLEGT Permit

1. Circumstances for Revocation:

a) The FLEGT Permit voluntarily returned by the timber owner.

b) The FLEGT Permit has expired but the timber owner has not exported or requested an extension of the permit: Within ten days from the expiration date of the permit, the timber owner is responsible for returning the permit to the Issuing Authority.

c) The timber owner engages in illegal activities related to the export timber shipment discovered after obtaining the FLEGT Permit.

d) The timber owner engages in fraudulent information related to the FLEGT Permit already issued, such as falsifying, altering, or modifying information on the FLEGT Permit.

2. Authority for Revoking the FLEGT Permit: The Issuing Authority.

3. Method of Revocation:

a) For cases stipulated in points a and b of Clause 1 of this Article where the FLEGT Permit is electronic, the timber owner returns the permit to the Issuing Authority through the Electronic FLEGT Permit Issuance System. The Issuing Authority will cancel the electronic FLEGT Permit returned through the Electronic FLEGT Permit Issuance System.

b) For cases stipulated in points a and b of Clause 1 of this Article where the FLEGT Permit is in paper form, the timber owner submits the paper FLEGT Permit directly or through the post office to the Issuing Authority for retention.

c) For cases stipulated in points c and d of Clause 1 of this Article, the Issuing Authority issues a decision to revoke the issued FLEGT Permit.

d) The Issuing Authority publishes information about the revoked FLEGT Permit on its website and simultaneously informs the FLEGT Competent Authority of the importing EU country.

4. Handling of Revoked Permits: The Issuing Authority retains the paper FLEGT Permit and the decision to revoke the FLEGT Permit for five years.

2. The timber owner shall be responsible for retaining the original file as prescribed in Articles 16, 17, 18, and 19 of this Decree for a period of five years from the date of submission of the file and shall present it to competent authorities upon request.

3. In cases where the issued FLEGT license is a paper copy, when requesting an extension, replacement, or reissue, the timber owner must submit the file directly or via public postal services or through the post office.

Section 2

INDEPENDENT ASSESSMENT

Article 22. Criteria for determining independent assessment organizations

1. The independent assessment organization must have legal personality in Vietnam.

2. It shall not engage in import, processing, and export of timber or participate in the drafting of legal documents in the forestry sector; nor shall it be involved in forest management and timber trade activities.

3. It shall have a quality control system in accordance with ISO 17021 or equivalent standards.

4. It shall have human resources that meet the requirements of expertise and experience in auditing and assessing forest management, protection, and utilization; timber processing and trade.

5. It shall not have any interest relationships with organizations and individuals engaged in the import, processing, and export of timber or state management agencies in the forestry sector.

6. The Ministry of Agriculture and Rural Development shall consult with organizations specified in international treaties to which Vietnam is a party to designate independent assessment organizations. The procedures and formalities for designating independent assessment organizations shall be carried out in accordance with the provisions of the law on bidding.

Article 23. Content of Assessment

1. Assess the implementation of the Vietnamese Legal Timber Assurance System; wood supply chain control activities, data management; classification of enterprises and confirmation of exported wood.

2. Assess the issuance of FLEGT licenses.

3. Assess difficulties and obstacles encountered during the organization and implementation of the Vietnamese Legal Timber Assurance System.

4. Assess other contents decided by the Ministry of Agriculture and Rural Development and organizations specified in international treaties to which Vietnam is a party.

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

Article 24. Methods, Frequency of Assessment, and Reporting Regime

1. Assessment methods: To be implemented according to national standards ISO 19011, ISO 17021, or equivalent standards as decided by the Ministry of Agriculture and Rural Development and organizations specified in international treaties to which Vietnam is a party.

2. Assessment frequency: Once every six months in the first year of implementing FLEGT licensing; once every twelve months for the following two years. After three years of implementing FLEGT licensing, the Ministry of Agriculture and Rural Development shall cooperate with organizations specified in international treaties to which Vietnam is a party to determine the assessment frequency for subsequent years.

3. Reporting regime: Within fifteen days from the end of each assessment period, the independent assessment organization shall submit reports to the Ministry of Agriculture and Rural Development and organizations specified in international treaties to which Vietnam is a party.

Chapter V

d.1. Amount of taxable income in Vietnam:IMPLEMENTATION

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

1. Take the lead and coordinate with relevant ministries and sectors to guide and organize the implementation of this Decree within their respective authorities.

2. Coordinate with relevant ministries, sectors, and provincial People's Committees to inspect, supervise, and urge the implementation.

3. Direct the construction of databases on enterprise classification, violations of laws in the Forestry sector, operation of the FLEGT licensing system, and FLEGT licensing data; guide the management, exploitation, and use of databases on enterprise classification, violations of laws in the Forestry sector, and FLEGT licenses; report to the Prime Minister for decision on the effective date of this Decree regarding the management of exported timber as stipulated in Section 2 Chapter II and issuance of FLEGT licenses as stipulated in Section 1 Chapter IV of this Decree.

4. Coordinate with the Joint Implementation Committee to implement the VPA/FLEGT Agreement on methods of assessment and conduct necessary preparatory assessments for FLEGT licensing according to the provisions of the VPA/FLEGT Agreement, and report to the Prime Minister for decision on the effective date of this Decree regarding the management of exported timber as stipulated in Section 2 Chapter II and issuance of FLEGT licenses as stipulated in Section 1 Chapter IV of this Decree.

Article 26. Responsibilities of Provincial People's Committees and Municipal People's Committees under Central Government

1. Organize propaganda on the Vietnamese System for Legal Timber Assurance as prescribed in this Decree.

2. Direct, inspect, and supervise local functional agencies to implement this Decree.

3. Direct related agencies to cooperate with forest inspection agencies in verifying enterprise classification as prescribed in this Decree.

1. Forest Inspection Agencies:

a) Provincial Forest Inspection Agency or Department of Agriculture and Rural Development for provinces and centrally governed cities without a provincial Forest Inspection Agency: Direct the confirmation of exported timber; organize enterprise classification; inspect and supervise compliance with laws by organizations and individuals within their authority; manage, trace the origin of timber, and store files and documents as prescribed in this Decree and other relevant laws; store, back up, and ensure the security of transaction information on the enterprise classification information system.

b) National Forest Protection Service: Construct and manage the operation of the enterprise classification information system; apply technical measures necessary to secure information and data on the enterprise classification information system; ensure accurate, timely, and effective sharing of information and data among relevant agencies, organizations, and individuals; inspect and supervise nationwide enterprise classification and compliance with laws on timber production and processing; announce enterprise classification results; advise the Ministry of Agriculture and Rural Development to publish information as prescribed in this Decree.

2. Licensing Agencies:

a) Manage the issuance, extension, revocation, reissuance, and replacement of FLEGT licenses as prescribed in this Decree.

b) Manage the database of license application files, including issuing and refusing FLEGT licenses.

c) Provide information to clarify issues related to FLEGT licenses upon request from competent authorities in importing countries when there is suspicion about the authenticity and legality of the license.

3. Customs Agencies:

a) Cooperate with forest inspection agencies and relevant agencies in verifying the legality of imported and exported timber consignments.

b) Inspect and confirm import timber manifests for imported timber consignments.

4. Organizations and Individuals:

a) Bear legal responsibility for the accuracy and legality of timber in logging, importing, transporting, buying and selling, processing, and exporting; comply fully with requirements for ensuring legal timber as prescribed in this Decree and other relevant laws.

b) Store timber records for five years from the date of timber sale.

c) Timber import and export enterprises must submit periodic reports every three months on the last day of each quarter to the local forest inspection agency according to Model No. 14 Appendix I issued together with this Decree; provide information on timber import and export activities when requested by competent authorities.

d) Declare, explain, and provide information related to the origin of imported and exported timber as prescribed in this Decree and comply with inspections and supervision by competent authorities.

Chapter VI

IMPLEMENTING PROVISIONS

Article 28. Effective Date

1. This Decree takes effect from October 30, 2020, except as provided in Clause 2 and Clause 3 of this Article.

2. Within thirty working days from the date the Ministry of Agriculture and Rural Development coordinates with the Joint Implementation Committee to implement the VPA/FLEGT Agreement as prescribed in Clause 4 of Article 25 of this Decree, the Prime Minister decides the implementation date for the management of exported timber as stipulated in Section 2 Chapter II and issuance of FLEGT licenses as stipulated in Section 1 Chapter IV of this Decree.

3. The provisions on enterprise classification for timber processing and export in Chapter III of this Decree take effect eighteen months from the date this Decree takes effect.

Article 29. Transitional Provisions

Timber import consignments that have registered customs declarations before this Decree takes effect but have not yet been cleared will be managed according to the regulations at the time of registration.

Article 30. Responsibility for Implementation

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

2. The ministers, heads of ministerial-level agencies, heads of government agencies, chairpersons of provincial people's committees under the central government, and related organizations, entities, and individuals shall be responsible for implementing this Decree./.