Circular No. 18/2013/TT-BTC guides the procedures and formalities for liquidating planted forests that have not become forests and managing and using the proceeds from such liquidation.

CIRCULAR

Guidelines on the procedures for liquidating planted forests and managing and using the proceeds from the liquidation of planted forests that have not become forests or have no potential to become forests

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Pursuant to the Law on Management and Use of State Property dated June 3, 2008;

Pursuant to Decree No. 52/2009/NĐ-CP dated June 3, 2009 of the Government detailing and guiding the implementation of certain provisions of the Law on Management and Use of State Assets;

Pursuant to Decision No. 186/2006/QĐ-TTg dated August 14, 2006 of the Prime Minister on the issuance of the Forest Management Regulations;

Pursuant to the Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

The Minister of Finance issues this Circular guiding the procedures for liquidating planted forests and managing and using the proceeds from the liquidation of planted forests that have not become forests or have no potential to become forests as follows:

Section I
GENERAL PROVISIONS

Article 1. Scope and Objectives

b) In cases where funds from organizations and individuals within and outside Vietnam are used for victim support work and victim support benefits, such activities shall be carried out in accordance with the regulations of the Ministry of Finance and the donor; in cases where there is no agreement between the donor or their authorized representative and the Ministry of Finance regarding the expenditure level, the expenditure level prescribed in this Circular shall apply.

This Circular guides the procedures for liquidating planted forests and managing and using the proceeds from the liquidation of planted forests that have not become forests or have no potential to become forests (hereinafter referred to collectively as planted forests that have not become forests) arising during the construction phase and during the care and protection phase of the forests.

Thông tư này áp dụng đối với tổ chức, cá nhân có liên quan đến hoạt động kinh doanh đối tượng thủy sản nuôi chủ lực trên lãnh thổ Việt Nam.

a) Planted forests invested with state budget funds on areas of land allocated by the State for agencies, units, organizations to manage and use for forest development but which have not become forests due to force majeure reasons or other reasons requiring liquidation to implement new forest planting projects or to convert to other purposes according to the approved land use plan by competent authorities.

b) Protective forests invested and supported by the State for planting and caring on areas of forestry land planned for protective forests permanently assigned to households, individuals, community groups but which have not become forests.

3. For projects investing in forest development with ODA funds and projects funded by non-governmental organizations (NGOs) but which have not become forests and require liquidation shall not be subject to this Circular.

Article 2. Criteria for determining planted forests

The criteria for determining planted forests that have not become forests or have no potential to become forests shall be implemented in accordance with the guidelines of the Ministry of Agriculture and Rural Development.

Article 3. Determining causes.

1. Force majeure causes leading to forests having no potential to become forests are determined in accordance with Clause 23 of the Investment Construction Regulation for Forestry Works issued together with Decision No. 73/2010/QĐ-TTg dated November 16, 2010 of the Prime Minister, including: earthquakes, typhoons, floods, landslides, whirlwinds, tsunamis, landslips; war or the threat of war; abnormal heatwaves, droughts, frost, harmful winds; forest fires; animal destruction; pest and insect damage; other objective losses.

2. Other causes (not being the force majeure causes mentioned in Clause 1 of this Article) leading to planted forests not becoming forests are determined by the agency or unit preparing the forest liquidation dossier. In this case, the agency preparing the forest liquidation dossier is responsible for clarifying the cause and the responsibility of related agencies, organizations, and individuals, reporting to the competent authority deciding on forest liquidation for consideration and decision.

Article 4. Principles of forest liquidation

1. The liquidation of planted forests that have not become forests (except in the case provided for in Clause 2 of this Article) shall be carried out after the competent authority's liquidation decision and a land use plan (with a new forest planting investment project or conversion to another appropriate purpose according to the land use plan) has been approved by the competent authority.

2. For planted forests that have not become forests due to force majeure causing loss of ecological value affecting the environment or remaining forest areas, after the competent authority's liquidation decision, the Project Investor shall immediately organize the liquidation without waiting for approval of the land use plan by the competent authority.

3. The value of forest products harvested at the time of organizing the liquidation of planted forests shall be determined based on market prices at that time.

PART II
SPECIFIC PROVISIONS

Article 5. Competence and procedure for liquidating planted forests that have not become forests for planted forests under local management.

1. The decision to liquidate planted forests invested in by local authorities shall be made by the People's Committee of the province.

2. During the investment, care, and protection of the forest, in cases where planted forests fail to become forests due to factors such as land, climate, weather, and other reasons, necessitating their liquidation to implement new forest planting projects or to convert them to other purposes according to the approved land use plan, the investor must establish an inspection team to verify the site; including:

a) The inspection team members include representatives from the investor; the household receiving the lease (if any); relevant agencies managing the forest at the local level as assigned by the People's Committee of the district (Flood Control Board, Forest Fire Prevention Board, Forest Protection Station, financial agency at the same level...); the People's Committee of the commune where the planted forest is located, and other related parties.

b) The on-site verification report must be confirmed by all members of the inspection team and includes the following contents:

- Clearly identifying the location, plot, section, sub-section, type of forest that has not become a forest and the cause. In cases where the planted forest fails to become a forest due to reasons other than force majeure, it is necessary to clarify the cause and determine responsibility.

- Determining the extent of damage: area, species of trees planted, year of planting, planting density, current density, growth situation; determining the cause.

- Estimating the value of the loss: Calculated separately for each plot, if the forest does not yet have a stock volume, then calculate the investment costs (planting, care, protection...) paid to the forest planters over the years of investment. For forests with existing stock volumes, estimate the volume of losses and the value of the losses based on the price at the time of the loss occurrence.

- Estimating the value of timber products harvested.

- Proposing methods for liquidation and harvesting of timber products.

3. Based on the on-site verification report, the investor prepares a liquidation application file to report to the Department of Agriculture and Rural Development. The application file for liquidation of planted forests includes:

a) A request for liquidation of planted forests that have not become forests.

b) An on-site verification report confirmed by the People's Committee of the district where the planted forest that has not become a forest is located.

c) A liquidation plan for planted forests including the following contents:

- Location, area of the planted forest proposed for liquidation and the amount of investment already made.

- Methods of liquidation and recovery of timber products suitable for the type of forest and specific conditions in the locality where the forest is proposed for liquidation.

- Budget for liquidation costs and processing of recovered timber products (if applicable) when implementing the liquidation of planted forests.

- Plan for managing and using the proceeds from the sale of recovered timber products.

4. After receiving the application file for liquidation of planted forests from the investor, within thirty working days, the Department of Agriculture and Rural Development, in coordination with the Department of Finance and other relevant agencies, will review and report to the People's Committee of the province to make a decision on the liquidation of planted forests that have not become forests. If necessary, the People's Committee of the province may direct the Department of Agriculture and Rural Development to form an inspection team to reverify before making a decision. The main content of the decision on the liquidation of planted forests that have not become forests includes:

- The agency, unit, organization, or individual with planted forests that need to be liquidated;

- The area of planted forests that cannot become forests and need to be liquidated;

- The method of liquidation of planted forests that have not become forests and recovery of timber products;

- The date for organizing the liquidation of planted forests;

- Management and use of the proceeds from the sale of recovered timber products during the liquidation of planted forests that have not become forests;

- Responsibility for organizing implementation.

5. After completing the organization and implementation of the liquidation of planted forests that have not become forests and the harvesting of timber products, the investor reports to the Department of Agriculture and Rural Development, which forwards the results to the Department of Finance, and records the reduction of assets and the value of the assets invested on the land area of the liquidated planted forests.

6. In cases where the investor is not simultaneously the forest owner (after completing the basic construction investment, the investor transfers the planted forest to another agency, organization, or individual for management), the forest owner is responsible for monitoring and reporting to the investor when discovering planted forests that have not become forests during the management, protection, and care process, to prepare the necessary files and organize the liquidation according to the procedures and formalities mentioned above. After completing the organization of the liquidation of planted forests that have not become forests, the forest owner implements the reduction of assets and the value of the assets invested in the planted forest area managed by the state budget.

7. In cases where, after basic construction investment, the investor transfers the planted forest to the forest owner for continued protection, care, and management, and the investor dissolves itself according to the competent authority's decision, the forest owner is responsible for preparing the necessary files and reporting to the competent authority for permission to liquidate the forest and organizing the liquidation according to the procedures and formalities mentioned above.

8. In cases of liquidating planted forests that have not become forests for protective forests as stipulated in paragraph b, Clause 2, Article 1 of this Circular, the People's Committee of the district where the forest subject to liquidation is located establishes an inspection team to verify the site (including representatives of households, individuals, and community residents), prepares an application for liquidation of the forest, and organizes the liquidation of planted forests and the harvesting of timber products according to the procedures and formalities mentioned above.

Article 6. Competence and Procedures for Liquidating Plantation Forests That Are Unable to Become Productive Forests under Central Management.

1. The authority to decide on the liquidation of plantation forests under central management shall be exercised by the agency that decides on the investment in forest planting.

2. In cases where plantation forests decided upon by central ministries and agencies for investment have areas that are unable to become productive forests and must be liquidated according to this Circular, the investor shall establish a verification team to inspect the site. Among them:

a) The members of the inspection and verification team include: the investor, representatives of the superior management agency, the contractor household (if any), local agencies related to forest management as assigned by the People's Committee of the district (Flood Control Board, Forest Fire Prevention Board, Forest Protection Station, financial agencies at the same level...); the People's Committee of the commune where the plantation forest is located.

b) The contents of the inspection record shall be carried out in accordance with Clause 2 of Article 5 of this Circular.

3. Based on the field verification report confirmed by the People's Committee of the district where the plantation forest is located, the investor shall prepare a file requesting the liquidation of the plantation forest and report it to the competent authority deciding on the liquidation of the forest. The application for the liquidation of the plantation forest shall be implemented in accordance with Clause 3 of Article 5 of this Circular.

4. After receiving the application for the liquidation of the plantation forest from the investor, within thirty working days, the agency deciding on the investment in forest planting shall issue a document seeking opinions from the People's Committee of the province where the plantation forest to be liquidated is located. After obtaining a unified opinion from the provincial People's Committee, the investment decision-making agency shall issue a decision to liquidate the plantation forest. The content of the liquidation decision shall be similar to the case of liquidating plantation forests managed by local authorities as stipulated in Clause 4 of Article 5 of this Circular. If necessary, central ministries and agencies shall establish a verification team to re-examine before making a decision.

5. After completing the organization and implementation of the liquidation of the plantation forest and the harvesting of forest products, the investor shall report to the agency deciding on the liquidation of the forest and send the results of the implementation to the People's Committee of the province where the liquidated forest is located. The reduction of assets and the value of assets invested on land, which is the area of the plantation forest and the amount of investment made using the specified capital as stipulated in Clause 2 of Article 1 of this Circular, shall be recorded.

Article 7. Management and Use of Proceeds from the Liquidation of Plantation Forests.

1. Costs for liquidating plantation forests that are unable to become productive forests include costs for organizing the liquidation of the forest and harvesting forest products; among which:

a) The level of expenditure for organizing the liquidation of the forest and harvesting forest products shall be carried out according to standards, norms, and regulations set by state agencies with the appropriate authority; in cases where there are no such standards, norms, and regulations, the authority deciding on the liquidation of the plantation forest that is unable to become productive shall determine the level of expenditure, ensuring economy and suitability with the current financial management system of the State, and shall bear responsibility for their decision after consulting with the financial agency at the same level.

b) In cases where a new forest planting project is immediately implemented due to the area of the already liquidated forest, the costs for cutting down and collecting forest products shall not be included in the liquidation costs but shall be funded from the capital of the new forest planting project, including the portion for processing surface vegetation during the preparatory phase.

2. Costs for organizing the liquidation of the forest and processing harvested forest products shall be prepaid by organizations or individuals responsible for purchasing forest products and deducted from the value of the harvested forest products to be paid to the state.

3. In cases where no organization or individual proposes to purchase the harvested forest products, the costs for liquidating the forest and processing the harvested forest products shall be prepaid by the local state budget for forests under local management and by the state budget allocated to central ministries and agencies managing forests under central management. These advance payments shall be reimbursed from the proceeds of the liquidation of the forest and the harvested forest products.

4. In cases where the costs for organizing the liquidation of the forest and processing the harvested forest products exceed the proceeds from the liquidation of the forest and the harvested forest products, for forests under local management, the provincial People's Committee shall consider handling the excess costs from the local budget; for forests under central management that are unable to become productive, the central agencies managing the liquidated forests shall consider handling the excess costs from the annual state budget allocated to them.

5. The agency deciding on the liquidation of plantation forests that are unable to become productive shall approve the final accounts of the costs for organizing the liquidation of the forest and processing the harvested forest products in accordance with the provisions.

6. The proceeds from the liquidation of the forest and the harvested forest products, after settling the advance payments for liquidation costs as stipulated in Clause 1 of this Article, shall be distributed according to the benefit-sharing policy prescribed by laws on investment and forest development. For the part belonging to the state, it shall be deposited into the state budget in accordance with the laws on the state budget, specifically: deposited into the central budget for forests managed by central ministries and agencies; deposited into the local budget for forests managed by local authorities.

7. In cases where plantation forests are invested with state budget funds but there are no provisions on benefit-sharing policies, the proceeds from the liquidation of the forest and the harvested forest products, after settling the advance payments for liquidation costs as stipulated in Clause 1 of this Article, shall be deposited into the state budget in accordance with the laws on the state budget.

Section III
IMPLEMENTATION

Article 8. Implementation organization

1. The People's Committee of the province where the plantation forest to be liquidated is located shall be responsible for:

a) Directing financial agencies, agriculture and rural development agencies, other relevant agencies under its management, the investor of the forest planting project, the People's Committee of the district where the plantation forest to be liquidated is located, and other relevant agencies, organizations, and individuals to implement the liquidation of plantation forests that are unable to become productive forests in accordance with the guidelines of this Circular.

b) Managing and handling land for plantation forests and land after the liquidation of the forest in accordance with the laws on land.

c) Examine and handle within their authority cases of violations or complaints and reports related to the liquidation of forests.

2. Ministries and central agencies assigned by the State to plant forests shall be responsible for:

a) Directing relevant agencies under their management, organizations entrusted with the role of project investors for forest planting projects, to cooperate with local functional agencies where the forests to be liquidated are located, to carry out the liquidation of planted forests that have not become forests in accordance with the guidelines set forth in this Circular.

b) Examine and handle within their authority cases of violations or complaints and reports related to the liquidation of forests.

3. Ministries, central agencies, and provincial People's Committees assigned to organize forest planting using the capital specified in Clause 1, Article 1 of this Circular, if there is any liquidation of planted forests, shall report on the implementation of the liquidation of planted forests to the Ministry of Agriculture and Rural Development and the Ministry of Finance before March 31 each year.

4. The Ministry of Agriculture and Rural Development shall take the lead in compiling and reporting on the implementation of the liquidation of planted forests to the Prime Minister before April 30 each year.

Article 9. Handling of Issues

For cases of planted forests that have not become forests, funded by state budget capital, within the scope and subject to the application as prescribed in Clause 1 and Clause 2, Article 1 of this Circular, but have not yet been liquidated, they shall be liquidated in accordance with the provisions of this Circular.

Article 10. Effective Date

1. This Circular takes effect from April 5, 2013.

2. During the implementation of this Circular, if any difficulties arise, it is requested that agencies, organizations, and units promptly reflect them to the Ministry of Finance for coordination and resolution./.