Circular No. 21/2021/TT-BNNPTNT on classifying wood processing and exporting enterprises

CIRCULAR

Regulations on Classification of Wood Processing and Export Enterprises

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Pursuant to Decree No. 15/2017/NĐ-CP dated February 17, 2017 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Agriculture and Rural Development;

Pursuant to the Forestry Law dated November 15, 2017;

Pursuant to Decree No. 102/2020/NĐ-CP dated September 1, 2020 of the Government stipulating the Vietnam Timber Legality Assurance System;

    At the proposal of the Director General of the Forest Administration Department;

    The Minister of Agriculture and Rural Development issues this Circular stipulating the classification of wood processing and export enterprises.

 

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular specifies in detail the classification of wood processing and export enterprises (hereinafter referred to as enterprise classification).

Article 2. Applicability

This Circular applies to enterprises engaged in both wood processing and wood export activities (hereinafter referred to as enterprises), organizations, and individuals involved in matters regulated in Article 1 of this Circular.

Article 3. Principles of Enterprise Classification

1. Enterprise classification must ensure transparency, fairness, compliance with the authority, procedures, and formalities prescribed in Decree No. 102/2020/NĐ-CP dated September 1, 2020 of the Government stipulating the Vietnam Timber Legality Assurance System (hereinafter referred to as Decree No. 102/2020/NĐ-CP) and this Circular.

2. Enterprises shall self-declare and bear responsibility for documentation proving compliance with the criteria for enterprise classification. Authorities receiving applications will verify and investigate when there is suspicion about the information declared by enterprises; handle violations (if any) in accordance with the law.

Chapter II

REGISTRATION AND CLASSIFICATION OF ENTERPRISES

Article 4. Registration for Enterprise Classification

Enterprises shall register for classification with the Receiving Authority through one of the following two forms:

1. Online form: Enterprises access the Enterprise Classification Information System on the website www.kiemlam.org.vn to register according to the instructions of the Enterprise Classification Information System.

2. Direct form:

a) In cases where enterprises cannot apply the Enterprise Classification Information System, they shall submit directly or via public postal services or post offices one set of documents to the Receiving Authority.

Documents include: Application for Enterprise Classification according to Form No. 01 Appendix I issued together with this Circular, the Declaration Table for Wood Processing and Export Enterprises' Classification according to Form No. 08 Appendix I issued together with Decree No. 102/2020/NĐ-CP, and documentation proving compliance with the criteria for enterprise classification as stipulated in Appendix II issued together with this Circular.

b) The Receiving Authority shall enter the enterprise's application into the Enterprise Classification Information System; notify the enterprise of the result of the registration for enterprise classification according to Form No. 02 Appendix I issued together with this Circular; store the registration documents in accordance with the law.

3. During the period before the establishment and implementation of the Enterprise Classification Information System, direct classification shall be carried out as follows:

a) Enterprises shall submit their applications directly at the Receiving Authority as stipulated in point a, Clause 2 of this Article;

b) The Receiving Authority shall accept the application; notify the enterprise of the result of the registration for enterprise classification according to Form No. 02 Appendix I issued together with this Circular; carry out enterprise classification in accordance with Article 13 of Decree No. 102/2020/NĐ-CP and Article 5, Clause 1 of Article 6 of this Circular; immediately send the classification results via email to the Forest Inspection Department and store the registration documents in accordance with the law;

c) The Forest Inspection Department shall publish the list of Group I enterprises as stipulated in Clause 2 of Article 6 of this Circular.

Article 5. Verification of declared information

1. Cases for verification of information:

a) The declaration documents of the enterprise have signs of alteration, erasure, forgery; the contents of the declaration documents are contradictory, inconsistent;

b) There is information under the provisions of the law regarding the enterprise's declaration being not truthful in one of the criteria for classifying enterprises.

2. Sources of information for verification:

a) For the criterion of fully complying with the provisions of the law on establishment and operation for at least one year from the date of registration to establish the enterprise: Based on information sources from the National Enterprise Registration Portal www.dangkykinhdoanh.gov.vn; information from other relevant agencies, organizations, and individuals;

b) For the criterion of compliance with the provisions of the law on the environment: Based on information sources from the state management agency for Natural Resources and Environment; Environmental Police Agency; information from the territorial management activities of the local Forest Protection Agency; information from other relevant organizations and individuals;

c) For the criterion of compliance with the provisions of the law on fire prevention and fighting: Based on information sources from the Fire Prevention and Fighting Police Agency; information from the territorial management activities of the local Forest Protection Agency; information from other relevant organizations and individuals;

d) For the criterion of compliance with the provisions of the law on tax and labor: Based on information sources from the Tax Authority, the Labor and Social Affairs Authority, the Social Insurance Authority, the Trade Union Authority; information from the territorial management activities of the local Forest Protection Agency; information from other relevant organizations and individuals;

e) For the criterion of compliance with the provisions of the law on ensuring legal timber; the criterion of compliance with the reporting system as stipulated in Clause 4, Article 27 of Decree No. 102/2020/NĐ-CP and retention of original records as required by law; the criterion of not violating the law to the extent that it requires handling as stipulated in Clause 4, Article 13 of Decree No. 102/2020/NĐ-CP: Based on information sources from the territorial management activities of the local Forest Protection Agency; information from the Violation Database in the Forestry Sector (hereinafter referred to as the Violation Database); information from other relevant organizations and individuals;

3. Implementation of verification:

a) The agency receiving notifications on the Enterprise Classification Information System shall notify the enterprise of the time and content needed for verification. In cases where the Enterprise Classification Information System cannot be applied, the notification shall be sent to the enterprise according to Model No. 03 Appendix I issued together with this Circular;

b) The receiving agency shall directly carry out the verification or cooperate with relevant agencies (if necessary), conduct the verification, and prepare the Verification Report according to Model No. 04 Appendix I issued together with this Circular;

c) In cases where verification is conducted outside the province where the enterprise has registered for classification: The receiving agency shall send the content needed for verification to the receiving agency in the location where the verification is to be carried out, in accordance with points a and b of this clause. The receiving agency shall conduct the verification and report the results of the verification to the receiving agency where the enterprise has registered for enterprise classification.

Article 6. Announcing the classification results of enterprises

1. The agency receiving classification and notifying the enterprise classification results on the Enterprise Classification Information System. In cases where the Enterprise Classification Information System cannot be applied, the agency shall notify the enterprise of the classification results according to Form No. 05 Appendix I issued together with this Circular.

2. Within one working day from the date the enterprise is classified as Group I enterprise pursuant to Clause 1 of this Article, the Forest Protection Department shall announce the enterprise classification results on the electronic information website www.kiemlam.org.vn.

Article 7. Changing classification, reclassifying enterprises

1. Changing classification of enterprises:

a) In case of changing the classification of enterprises: An Enterprise Group I or its lawful representative is criminally processed under Article 232 of the Penal Code 2015 (amended in 2017) without having the criminal record expunged or there is an administrative penalty decision made by the competent authority under Clause 4, Article 13 of Decree No. 102/2020/NĐ-CP which has not yet expired, it shall be considered that the enterprise has not been administratively penalized;

b) The receiving agency is responsible for verifying the information stipulated in Clause 1 of this Article to remove the enterprise name from the Group I list on the Enterprise Classification Information System. In cases where the Enterprise Classification Information System cannot be applied, the receiving agency shall notify the enterprise according to Form No. 05 Appendix I issued together with this Circular and immediately send the enterprise classification change result via email to the Forest Protection Department.

Within one working day from the date of receiving information from the receiving agency through the Enterprise Classification Information System, the Forest Protection Department shall announce the enterprise classification change results on the electronic information website www.kiemlam.org.vn.

2. Reclassifying enterprises:

a) Enterprises are responsible for self-reporting the second, third, and subsequent classifications according to Article 4 of this Circular;

b) The receiving agency is responsible for classifying enterprises for the second, third, and subsequent times as when initially classifying enterprises. The Forest Protection Department shall announce the reclassification results of enterprises according to Clause 2 of Article 6 of this Circular.

Chapter III

ENTERPRISE CLASSIFICATION INFORMATION SYSTEM AND VIOLATION DATABASE

Article 8. Enterprise Classification Information System

1. The Enterprise Classification Information System is established in accordance with the provisions of the law; applied to receive, store information, and classify enterprises as prescribed in Decree No. 102/2020/NĐ-CP and the provisions of this Circular.

2. The Enterprise Classification Information System can be modified to comply with current regulations; serving the purpose of facilitating, accurately, and timely enterprise classification; operating on a modern information technology platform, ensuring access control and high security.

3. The Enterprise Classification Information System is built and operated in an online environment, with a user-friendly interface, suitable for practical purposes, easy to implement in declaration, receipt, and processing of files; ensuring continuous operation without interruption.

4. The Enterprise Classification Information System has the capability to share information with related database systems: FLEGT License Issuance System, Customs Risk Management System, and other related information systems.

5. The Enterprise Classification Information System must comply with the provisions of the law on cybersecurity, information technology, protection of confidential information security, and other relevant laws.

Article 9. Violation Database

1. The Violation Database is established to collect, store data on administrative and criminal violations in the Forestry sector in accordance with the provisions of the law; update, maintain, exploit and use in an electronic environment.

2. The Violation Database is connected and shares information with the Enterprise Classification Information System to implement enterprise classification.

3. The Violation Database is exploited to carry out state management activities in the Forestry sector and other related state management sectors.

Article 10. Management of the Enterprise Classification Information System and the Violation Database

1. The Forest Protection Department: Manages and operates the Enterprise Classification Information System and the Violation Database; bears responsibility for investing in synchronized equipment; arranges appropriate human resources to ensure continuous operation of the Enterprise Classification Information System and the Violation Database.

2. Receiving agencies: Bear responsibility for investing in synchronized equipment; arrange appropriate human resources to ensure continuous operation of the Enterprise Classification Information System and the Violation Database.

Chapter IV

IMPLEMENTATION

Article 11. Responsibility for Implementation

1. The General Department of Forestry:

a) Organize the implementation of this Circular throughout the country; guide the management and use of the Enterprise Classification Information System and the Violation Database;

b) Coordinate with relevant agencies, People's Committees of provinces and centrally governed cities to inspect and urge implementation;

c) Direct the Forest Protection Department to build, manage, and operate the Enterprise Classification Information System and the Violation Database before December 31, 2022; inspect and supervise the process of enterprise classification and compliance with laws on wood production and processing, handling of violations (if any); compile and report the results of enterprise classification nationwide.

2. Departments of Agriculture and Rural Development of provinces and centrally governed cities:

a) Organize the implementation of this Circular within their jurisdiction; establish regulations for coordination with relevant agencies to implement enterprise classification, verify information declared by enterprises as stipulated in this Circular;

b) Direct receiving agencies to classify enterprises; inspect and supervise enterprises' compliance with laws within their authority, handle violations (if any); store files, ensure the security of information data on the Enterprise Classification Information System; compile and report the results of enterprise classification within their jurisdiction as stipulated in this Circular.

3. Enterprises: Fully comply with the provisions on enterprise classification as stipulated in this Circular.

Article 12. Effective Date

This Circular takes effect from May 1, 2022.

During implementation, if there are difficulties, agencies, organizations, and individuals shall promptly reflect them to the Ministry of Agriculture and Rural Development for consideration and resolution./.