Joint Circular No. 80/2003/TTLT/BNN-BTC guiding the implementation of Decision No. 178/2001/QD-TTg dated November 12, 2001 of the Prime Minister on the rights to benefits and obligations of households and individuals granted, leased, or contracted forests and agricultural land.

JOINT CIRCULAR

Guidelines for Implementing Decision No. 178/2001/QĐ-TTg dated November 12, 2001

of the Government Chairman on the benefits and obligations of households and individuals granted, leased, or contracted forests and forest land

Implementation of Decision No. 178/2001/QĐ-TTg dated November 12, 2001 of the Government Chairman regarding "Benefits and Obligations of Households and Individuals Granted, Leased, or Contracted Forests and Forest Land" (hereinafter referred to as Decision No. 178/2001/QĐ-TTg), the Ministry of Agriculture and Rural Development and the Ministry of Finance provide guidelines for implementation as follows:

- Households and individuals (hereinafter referred to as households) are assigned forests and forest land by the State pursuant to Decree No. 02/CP dated January 15, 1994 of the Government; Decree No. 163/1999/NĐ-CP dated November 16, 1999 of the Government on assigning and leasing forest land to organizations, households, and individuals for long-term stable use for forestry purposes.

I. General Provisions

1. SCOPE AND APPLICABILITY

- Households are contracted by state organizations to protect, enclose, regenerate, and plant forests pursuant to Decree No. 01/CP dated January 04, 1995 of the Government on contracting land use for agricultural, forestry, and aquaculture purposes in state-owned enterprises.

2. Explanation of Terms and Concepts

The terms and concepts in Decision No. 178/2001/QĐ-TTg shall be understood as follows:

a) Current Status of Forests

The current status of forests refers to the condition of the forests at the time when households are granted, leased, or contracted, including:

- Secondary depleted forests as defined in point a, Clause 4, Article 7; Clause 5, Article 14 of Decision No. 178/2001/QĐ-TTg are understood as groups without forests due to over-exploitation, or having been exploited long ago but not yet recovered, mostly covered with grass, shrubs, or scattered trees, bamboo, with coverage below 0.3, belonging to the bare land IC status as defined in Decision No. 682/QĐKT dated August 01, 1984 of the Minister of Forestry (now the Ministry of Agriculture and Rural Development) on issuing the design norms for forest business operations (hereinafter referred to as Decision No. 682/QĐKT).

- Regenerated forests after shifting cultivation or after exploitation as defined in point a, Clause 4, Article 7; Clause 5, Article 14 of Decision No. 178/2001/QĐ-TTg are understood as forests regenerated after shifting cultivation by pioneer light-loving fast-growing even-aged single-layer trees with diameters under 20 cm, or after over-exploitation, remaining some poor-quality trees with insignificant volume, generally not exceeding 20 cm in diameter, belonging to the forest types IIA, IIB, IIIA1 as defined in Decision No. 682/QĐKT.

- Forests with medium or rich volume as defined in point a, Clause 4, Article 7; Clause 5, Article 14 of Decision No. 178/2001/QĐ-TTg are understood as follows:

Forests with medium volume are secondary forests that have been selectively cut but have not significantly altered the structure of the forest or developed from regenerated forests after exploitation or shifting cultivation, now containing some large-diameter trees (over 35 cm) that can be harvested. Medium volume exceeds 100 m

/ha, belonging to forest types IIIA2 and IIIA3 as defined in Decision No. 682/QĐKT.³Forests with rich volume are primary or mature secondary forests that have not been exploited up to now, with a stable multi-layer structure, or forests that have been selectively cut to extract some valuable timber but have not significantly altered the structure of the forest, with abundant supply capacity, average volume exceeding 150 m

/ha, belonging to forest types IVA, IVB, and IIIB as defined in Decision No. 682/QĐKT.³The forest statuses mentioned in point a, Clause 2, Section I of this Circular apply to broadleaf evergreen and semi-deciduous forests.

For acacia and other types of forests, the People's Committee of the province shall specify each type of forest status according to the provisions of Decision No. 682/QĐKT.

b) Mangrove Forests: These are forests formed in saline, wet, acidic, or alkaline areas, with tree species such as Acacia, Melaleuca, Bruguiera, Avicennia, Sonneratia, etc.

c) Companion Trees: These are intercropped trees supporting the main crop planted at a certain density, including fast-growing tree species that improve soil quality while providing economic benefits.

3. Parties Assigning and Contracting

a) Party Assigning: The People's Committee of the district assigns or leases forests and forest land to households for long-term stable use for forestry purposes.

b) Party Contracting: These are state organizations assigned forests and forest land by the State for long-term stable use for forestry purposes, including: State-owned Forest Farms, State-owned Agricultural Farms, Management Boards of Specialized Forest Reserves, Management Boards of Protective Forests, Companies, Enterprises, Stations, Forest Farms..., which have contracted households through contracts to protect, enclose, regenerate, and plant forests.

In cases where the State has not yet assigned or leased forest areas, the People's Committee of the commune responsible for managing these areas signs contracts with households to protect the forests, then the households and the People's Committee of the commune also benefit from the forests according to the provisions of Decision No. 178/2001/QĐ-TTg.

4. Main Timber Harvested

The main timber harvested for distribution between households and parties assigning, leasing, or contracting forests and forest land is specified as follows:

a) For production forests: The main timber harvested is the timber obtained after harvesting areas of forests that have reached their harvest age. In cases where households are assigned or contracted to plant, protect, enclose, and regenerate forests with primary income from annual products such as resin, fruit, seeds, flowers, the main harvested product is the annual yield of resin, fruit, seeds, and flowers.

b) For protective forests: The main timber harvested is the timber obtained after harvesting areas of forests that meet the current protective requirements.

The State assigns natural forests to households as stipulated in Articles 4, 5, and 7 of Decision No. 178/2001/QĐ-TTg for households to manage, protect, and build forests according to the management regulations of each type of forest. Natural forests assigned are national resources, not household assets; households only benefit from the forests based on the forest conditions at the time of assignment, the time, money, and effort invested by households in the forests.

5. The State allocates natural forests to households as stipulated in Articles 4, 5, and 7 of Decision No. 178/2001/QĐ-TTg, which involves allocating forests to households for management, protection, and forest development according to the management regulations of each type of forest. Natural forests allocated are national resources, not assets of households; households only benefit from the forests based on the current status of the forests at the time of allocation, the time, money, and labor invested by the households into the forests.

6. The benefits enjoyed by households assigned, leased, or contracted forests and forest land

Benefits on forest land include the advantages from forests that households assigned, leased, or contracted forests and forest land enjoy, including:

a) Timber: Including timber permitted to be harvested for building new houses or replacing old ones, major repairs of houses located in the commune where the forest is situated as stipulated in Clause 3 Article 7, Clause 2 Article 8; timber obtained when implementing forestry measures; timber distributed when conducting main harvesting according to Articles 5, 6, 7, 8, 9, 14, 15, 16, 17, 18, 19, and 20 Decision No. 178/2001/QĐ-TTg.

b) Firewood: Including dead dry trees, fallen broken trees, diseased trees, branches, and tops that cannot be utilized as timber which households can gather for firewood according to Articles 5, 6, 7, 8, 9, 14, 15, 16, 17, 18, 19, and 20 Decision No. 178/2001/QĐ-TTg.

c) Non-timber forest products such as bamboo, rattan, wood apple, lotus stem, ginger, various types of shoots, reed, water caltrop, fruits, leaves, bark, resin, seeds, medicinal plants, etc. (excluding animals and plants listed in the Government's List of Precious and Rare Forest Plants and Animals and those listed in the Appendices of the International Convention CITES).

d) Agricultural products intercropped, aquaculture, and livestock.

đ) Tourism services.

e) Costs compensated in cash (if any).

h) Being allowed to use part of the area of unwooded forest land assigned or contracted for agricultural and fishery production without adversely affecting the forest trees, must comply with industry planning, local planning, or guidance from the Assignor; the contracting household may use up to 200m² to build temporary shelters to watch over the forest during the contract period, but must obtain written agreement from the Assignor and register with the People's Committee of the commune where the forest is located.

7. The rights and obligations of households are only implemented within the assigned, leased, or contracted period and are inheritable according to the law.

II. Specific provisions on the benefits enjoyed by households assigned or contracted forests and forest land

1. Distribution of main harvest products between households and the assignor or contractor of forests and forest land

1.1. Basis for distributing main harvest products that households are entitled to.

- The provincial People's Committee shall base on the actual situation of each locality in the province, the condition of the forest when assigned or contracted to households, and specify the specific ratio of main harvest products that households assigned, leased, or contracted forests and forest land are entitled to within the framework of ratios prescribed in Articles 5, 6, 7, 8, 14, 15, 16, 17, 18, 19, and 20 Decision No. 178/2001/QĐ-TTg.

In cases where households are assigned or contracted to plant, protect, and encircle to regenerate forests with annual income sources such as resin, fruit, seeds, flowers under protective forest planning, the provincial People's Committee shall stipulate the level of benefit.

- The forest products for distribution between households and the assignor or contractor of forests and forest land are the actual volume of forest products harvested and concentrated at the logging site (or warehouse).

The logging site (or warehouse) is the location where forest products are concentrated after harvesting and transportation, where transport vehicles can enter to transport forest products, and the provincial People's Committee shall specify the location of the logging site.

1.2. Forms of forest product distribution

The distribution of forest products between households and the assignor or contractor of forests and forest land is specified in the decision assigning or contract for forests and forest land and applies one of the following three forms:

a) For households assigned forests and forest land (Form I)

Households assigned forests and forest land as stipulated in Clause 5 Article 5, Clause 5 Article 6, Clause 4 Article 7, Clause 2 Article 8 Decision No. 178/2001/QĐ-TTg, when distributing main harvest products, households receive the entire volume of forest products at the logging site and must pay into the state budget an amount corresponding to the volume of forest products distributed and taxes as prescribed.

- The amount payable to the communal budget when distributing products: Is the value of forest products payable to the communal budget, excluding taxes payable as prescribed such as agricultural land use tax, natural resource tax...

- The volume of forest products harvested at the logging site: Is the actual volume of forest products harvested at the logging site (or warehouse).

- Standing tree price: Is the price of matured forest products ready for harvesting and utilization as prescribed by the provincial People's Committee at the time of harvesting.

- Communal budget payment ratio: Is the ratio of communal budget payment prescribed by the provincial People's Committee within the framework of ratios according to Decision No. 178/2001/QĐ-TTg.

In addition to the amount payable to the communal budget when distributing products, households must also pay taxes as prescribed by current tax laws.

Example: Assuming a household is assigned natural forest classified as productive forest for regeneration after harvesting. The household harvests and transports timber to the logging site with a volume of 30m³/ha. The standing tree price (Group V) is 650,000 VND/m³. The timber price at the logging site is 1,000,000 VND/m³, natural resource tax 15%. The household enjoys 80% of the value of the harvested product, while the communal budget enjoys 20% of the value of the harvested product.

Guidance on calculation is as follows:

(1)- Amount payable to the communal budget.

30m³ x 650,000 VND x 20% = 3,900,000 VND/ha

(2)- Natural resource tax: 30m³ x 1,000,000 VND x 15% = 4,500,000 VND/ha

(3)- Revenue from selling timber at the logging site: 30m³ x 1,000,000 VND = 30,000,000 VND/ha

(4)- Amount the household enjoys:

30,000,000 VND - 4,500,000 VND - 3,900,000 VND = 21,600,000 VND/ha

b) For households contracted forests and forest land

Form II: The Contractor (or household) receives the entire volume of forest products at the logging site and pays the household (or contractor) in cash equivalent to the forest products the household (or contractor) is entitled to. The party receiving the entire volume of forest products at the logging site is responsible for paying taxes as prescribed.

Form III: The Contractor and the household receive the distributed products at the logging site according to the prescribed ratio. Each party is responsible for paying taxes as prescribed corresponding to the portion of forest products they are entitled to.

Example: Assuming a household receives a contract to protect and regenerate protective forest areas. The household harvests and transports 24 cubic meters of wood to the delivery site per hectare. The standing tree price (Group V) is 600,000 VND/cubic meter. The wood price at the delivery site is 950,000 VND/cubic meter. Resource tax is 15%. The household benefits from 85% of the value of the harvested product, while the contracting party enjoys 15%. The household receives the entire forest product at the delivery site.³/ha. Standing tree price (Group V) is 600,000 VND/m³. Log price at the delivery site is: 950,000 VND/m³. Resource tax 15%. Households enjoy 85% of the value of extracted products, while the party responsible for the allocation enjoys 15%. Households receive all forest products at the delivery site.

Guidance on calculation is as follows:

(1) - The amount payable to the contracting party: 24m x 600,000 VND x 15% = 2,160,000 VND/hectare.

24m³ x 600,000 VND x 15% = 2,160,000 VND/ha

(2) - Resource tax: 24m x 950,000 VND x 15% = 3,420,000 VND/hectare.³ x 950,000 VND x 15% = 3,420,000 VND/ha

(3) - Revenue from selling wood at the delivery site: 24m x 950,000 VND = 22,800,000 VND/hectare.

24m³ x 950,000 VND = 22,800,000 VND/ha

(4)- Amount the household enjoys:

22,800,000 VND - 3,420,000 VND - 2,160,000 VND = 17,220,000 VND/hectare.

2. Management of harvesting costs for forest products.

a) Households assigned contracts to manage protected forests and forest land for harvesting purposes may organize their own harvesting activities or hire others to do so according to current regulations, norms, and rules governing timber and forest product harvesting.

b) Households assigned forests and forest land must bear all costs related to harvesting forest products, including costs associated with the portion of forest products submitted to the state budget.

c) Households receiving contracts for forests and forest land must cover costs related to the portion of forest products they benefit from.

3. Management and utilization of allocated products.

a) For households: They are permitted to use and consume the allocated portion of products, including: the portion of products they benefit from when dividing the main harvested products; the portion of products from the contracting party that the household has paid for in cash equivalent to those products; products harvested from the forest: thinning, auxiliary trees, intercropped trees, combined agricultural and fishery products.

b) For state-owned enterprises (State-owned forestry farms, state-owned enterprises using forest land).

In cases where state-owned enterprises receive products during the division of products, the revenue from selling these products is considered enterprise income.

In cases where state-owned enterprises receive money during the division of products, this income is recorded as financial investment income and included in the enterprise's financial income.

Costs related to forest land contracts and other expenses associated with consuming the allocated products are recorded as business expenses and financial investment activity expenses of the enterprise.

The management and use of these revenues by state-owned enterprises shall be carried out in accordance with Circular No. 63/1999/TT-BTC of the Ministry of Finance on revenue management, cost structure, and Joint Circular No. 109/2000/TTLT-BNN-BTC dated October 20, 2000, of the Ministry of Agriculture and Rural Development and the Ministry of Finance guiding the implementation of Decision No. 187/1999/QD-TTg dated September 16, 1999, of the Prime Minister on reforming the organizational structure and management mechanism of state-owned forestry farms.

c) For forest protection management boards, special-use forest management boards.

Income from consuming the allocated portion of products is revenue for forest protection management boards, special-use forest management boards.

Costs related to protecting, regenerating, and planting forests, costs associated with the allocated portion of forest products, and other expenses are recorded as public service expenses of forest protection area management boards, special-use forest area management boards.

The management and use of these revenues for forest protection management boards, special-use forest management boards shall be carried out in accordance with Circular No. 25/2002/TT-BTC dated March 21, 2002, of the Ministry of Finance guiding Decree No. 10/2002/NĐ-CP dated January 16, 2002, of the Government on financial systems applicable to public service units with revenue.

d) For the value of forest products submitted to the state budget.

The value of forest products submitted to the state budget by households when dividing forest products serves as a source of revenue for the commune budget to be used for the following purposes:

- Supporting forest protection and development work.

- Subsidizing forestry staff and forest rangers working in the commune.

- Supporting afforestation promotion work.

4. Allocation of funds for planting, caring for, and protecting forests.

Households assigned special-use forests, protective forests for management, protection, regeneration, and leasing or hiring forest land without existing forests within the planning scope of protective forests as stipulated in Articles 4, 5, and 6 of Decision No. 178/2001/QĐ-TTg shall be provided with budget funds according to Circular No. 43/2002/TT-BTC dated May 7, 2002, of the Ministry of Finance on managing and allocating budget funds for the New Forest Plantation Project of five million hectares.

5. Regulations on the right to benefit for households and individuals in certain projects are as follows:

5.1. Households receiving support capital from the PAM program shall benefit according to the provisions of Decision No. 145/1998/QĐ-TTg dated August 15, 1998, of the Prime Minister on policies for managing and utilizing planted forests supported by the World Food Program (PAM).

5.2. Households receiving support capital from the Federal Republic of Germany shall benefit according to the provisions of Decision No. 162/1999/QĐ-TTg dated August 7, 1999, of the Prime Minister on benefit policies for households and individuals participating in forest planting funded by the Federal Republic of Germany.

5.3. Households receiving support capital from the forestry region project on upstream forest management shall benefit according to the provisions of Decision No. 141/2000/QĐ-TTg dated December 11, 2000, of the Prime Minister on investment and credit policies for households, individuals, and communes participating in the forestry region project and upstream forest management in Thanh Hoa, Quang Tri, Phu Yen, and Gia Lai under Credit Agreement No. 1515-VIE (SF) and Decision No. 28/2001/QĐ-TTg dated March 9, 2001, amending and supplementing Decision No. 141/2000/QĐ-TTg dated December 11, 2000, Circular No. 47/TT-BNN guiding the implementation of Decision No. 141/2000/QĐ-TTg dated December 11, 2000, and Decision No. 28/2001/QĐ-TTg dated March 19, 2001, of the Prime Minister.

III. Implementation Organization

1. Provincial People's Committees shall issue specific guidelines based on the specific circumstances of each locality within the province regarding the level of benefits for households assigned, leased, or contracted forests and forest land for the main harvested products within the framework of the ratio prescribed in Decision No. 178/2001/QĐ-TTg.

2. Households that are assigned, leased, or contracted forests and forest land by the State shall fulfill the obligations prescribed in Article 12 and Article 22 of Decision No. 178/2001/QĐ-TTg of the Government.

The People's Committee at the district level shall be responsible for inspecting and supervising the reforestation activities of households.

The Land Administration shall take the lead in coordinating with the Forest Inspection Authority and the Department of Agriculture and Rural Development at the same level to be responsible for allocating and leasing forest land to households.

For households that are allocated forest land by the State which includes natural forests, in addition to completing land registration procedures, establishing land records, and issuing land use right certificates according to the guidelines set out in Circular No. 346/1998/TT-TCĐC dated March 16, 1998 of the General Department of Land Administration (now the Ministry of Natural Resources and Environment), the land use right certificate for forest land must also clearly state the condition of the forest at the time of allocation as stipulated in Decision No. 682/QĐKT to serve as a basis for sharing benefits from the forest.

This Joint Circular shall take effect fifteen days after its publication in the Official Gazette.

Any difficulties encountered during implementation shall be promptly reported in writing to the Ministry of Agriculture and Rural Development - Ministry of Finance for consideration and resolution./.