Joint Circular No. 80/2003/TTLT-BNN-BTC guiding the implementation of Decision No. 178/2001/QĐ-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 forest land.

JOINT CIRCULAR

Guidelines for implementing Decision No. 178/2001/QD-TTg dated November 12, 2001 of the Prime Minister on the benefits enjoyed and obligations of households and individuals granted, leased, or contracted forests and forest land

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Implementing Decision No. 178/2001/QD-TTg dated November 12, 2001 of the Prime Minister on "Benefits enjoyed and obligations of households and individuals granted, leased, or contracted forests and forest land" (hereinafter referred to as Decision No. 178/2001/QD-TTg), the Ministry of Agriculture and Rural Development and the Ministry of Finance provide guidance as follows:

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

1. SCOPE AND APPLICABILITY

- Households and individuals (hereinafter referred to as households) are assigned forests and forest land by the State according 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 regarding the assignment and leasing of forest land to organizations, households, and individuals for long-term stable use for forestry purposes.

Households are contracted by state organizations to protect, enclose, regenerate, and plant forests according to Decree No. 01/CP dated January 4, 1995 of the Government on the assignment of 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/QD-TTg shall be understood as follows:

a. Current status of forests

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

- Degraded secondary forests as defined in Point a Clause 4 Article 7; Clause 5 Article 14 of Decision No. 178/2001/QD-TTg are understood to be 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, or bamboo, with a canopy cover below 0.3, belonging to the bare land IC status as defined in Decision No. 682/QĐKT dated August 1, 1984 of the Minister of Forestry (now the Ministry of Agriculture and Rural Development) on issuing the standard design for forest business operations (hereinafter referred to as Decision No. 682/QĐKT).

Forests recovering from swidden agriculture or after over-exploitation as defined in Point a Clause 4 Article 7; Clause 5 Article 14 of Decision No. 178/2001/QD-TTg are understood to be forests recovering from swidden agriculture by pioneer light-loving plants growing uniformly in one layer, with small diameters, or after over-exploitation, leaving 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 high volume as defined in Point a Clause 4 Article 7; Clause 5 Article 14 of Decision No. 178/2001/QD-TTg are understood as follows:

Medium volume forests are secondary forests that have been selectively cut but have not significantly altered the structure of the forest or developed from forests recovering after exploitation or swidden agriculture, now containing some large-diameter trees (over 35 cm) that can be harvested. Average volume exceeds 100 m3/ha, belonging to forest types IIIA2 and IIIA3 as defined in Decision No. 682/QĐKT.

High volume forests are primary or mature secondary forests that have not been exploited up to now, with a stable multi-layered structure, or forests that have been selectively cut to remove some valuable timber but have not significantly altered the structure of the forest, still capable of providing significant resources, with an average volume exceeding 150 m3/ha, belonging to forest types IVA, IVB, and IIIB as defined in Decision No. 682/QĐKT.

The 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 provincial People's Committee 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, and acidic soils, consisting of species such as Rhizophora, Bruguiera, Avicennia, Sonneratia, and Aegiceras.

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

3. Assignor, contractor

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

b. Contractor: 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 special-use forests, management boards of protective forests, companies, enterprises, stations, forest camps..., which have contracted forests and forest land to households through lease contracts for protection, enclosure, regeneration, and planting.

In cases where the state has not yet assigned or leased forest areas, the local commune People's Committee is responsible for managing and signing contracts with households to protect the forest, then the households and the commune People's Committee will benefit from the forest according to the provisions of Decision No. 178/2001/QD-TTg.

4. Main forest products harvested

Main forest products harvested for distribution between households and assignors, lessors, or contractors of forests and forest land are specified as follows:

a. For production forests: Main forest products harvested are those obtained after harvesting areas of forests that have reached their harvest age. In cases where households are assigned or contracted to plant, protect, and regenerate forests with annual income mainly from forest products such as resin, fruit, seeds, flowers, the main products harvested are the annual yields of resin, fruit, seeds, and flowers.

b. For protective forests: Main forest products harvested are those obtained after harvesting areas of forests that meet the current protective requirements.

5. The State assigning natural forests to households as stipulated in Articles 4, 5, and 7 of Decision No. 178/2001/QD-TTg is to assign forests to households for management, protection, and forest construction according to the management regulations of each type of forest.

Natural forests assigned are national resources, not assets of households; households only enjoy benefits from the forests based on the current status of the forests at the time of assignment, the time, money, and effort invested by the households in the forests.

6. The benefit rights of households assigned, leased, or contracted forest land and timberland.

Benefits on forest land are the benefits from forests that the households assigned, leased, or contracted forest land and timberland 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 according to Clause 3 Article 7, Clause 2 Article 8; timber obtained when implementing forestry technical measures; timber distributed when implementing main harvesting operations as stipulated in 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 but can be gathered by households 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 pulp, lotus, ginger, various types of shoots, leaves, bark, seeds, medicinal plants, etc. (excluding animals and plants listed in the government's catalog of precious and rare forest flora and fauna and those listed in the appendices of international conventions such as CITES).

d. Agricultural products grown intercropped, aquaculture, and livestock.

đ. Tourism services

e. Costs compensated in cash (if any)

h. Being allowed to use part of the area of forest land not yet having forests assigned or contracted for agricultural and fishery production without adversely affecting the trees, must comply with sectoral and local planning or guidance from the contracting party; the contracting household may use up to 200 square meters to build temporary shelters to watch over the forest during the contract period, but must obtain written agreement from the contracting party and register with the People's Committee of the commune.

7. The benefit rights and obligations of households shall only be exercised within the term of assignment, lease, or contract of forest land and timberland and are inheritable according to the provisions of the law.

II. SPECIFIC PROVISIONS ON THE BENEFIT RIGHTS OF HOUSEHOLDS ASSIGNED OR CONTRACTED FOREST LAND AND TIMBERLAND

1. Allocation of main harvest products between households and the assigning or contracting party

1.1. Basis for allocating main harvest products for households to enjoy.

The provincial People's Committee bases on the actual situation of each locality in the province, the condition of the forest when assigned or contracted to households, and specifies the specific ratio of main harvest products that households assigned, leased, or contracted forest land and timberland are entitled to enjoy 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 product income such as resin, fruit, seeds, flowers under protective forest planning, the provincial People's Committee shall specify the level of benefits.

- Forest products for allocation between households and the assigning or contracting party 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 transporting, where transport vehicles can enter to transport forest products, and the provincial People's Committee specifies the location of the logging site.

1.2. Forms of forest product allocation

The allocation of forest products between households and the assigning or contracting party of forest land and timberland is specified in the decision on assignment or contract of forest land and timberland and applies one of the following three forms:

a. For households assigned forest land and timberland (Form I)

Households assigned forest land and timberland 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 allocating main harvest products, households receive the entire volume of forest products at the logging site and must pay to the State budget an amount corresponding to the volume of forest products allocated and taxes as prescribed.

The amount payable to the communal budget when allocating products (excluding rental fees) = Volume of harvested forest products x Standing price x Ratio payable to the communal budget

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

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

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

- Ratio payable to the communal budget: Is the ratio of payment to the communal budget as 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 allocating products, households also have to pay taxes according to current tax laws.

Example: Assuming a household is assigned natural forest which is productive forest recovering after harvesting. The household harvests and transports timber to the logging site with a volume of 30 cubic meters per hectare. The standing price (Group V) is 650,000 VND per cubic meter. The price of timber at the logging site is 1,000,000 VND per cubic meter, natural resource tax is 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: 30 cubic meters x 650,000 VND x 20% = 3,900,000 VND per hectare

(2) Natural resource tax: 30 cubic meters x 1,000,000 VND x 15% = 4,500,000 VND per hectare

(3) Revenue from selling timber at the logging site: 30 cubic meters x 1,000,000 VND = 30,000,000 VND per hectare

(4) Amount enjoyed by the household:

30,000,000 VND - 4,500,000 VND - 3,900,000 VND = 21,600,000 VND per hectare

b. For households contracted forest land and timberland

Form II: The Contracting Party (or household) receives the entire volume of forest products at the logging site and pays the household (or contracting party) in cash equivalent to the volume of forest products the household (or contracting party) is entitled to. The party receiving the entire volume of forest products at the logging site is responsible for paying taxes according to current regulations.

Form III: The contracting party and the household receiving products shall be divided at the delivery site according to the prescribed ratio. The parties are responsible for paying taxes in accordance with current regulations corresponding to the forest products each party enjoys.

Example: Assuming a household is assigned to protect and enclose regenerating protective forests. The household harvests and transports timber to the delivery site at 24 cubic meters per hectare. Standing tree price (Group V) is 600,000 VND per cubic meter. Timber price at the delivery site is: 950,000 VND per cubic meter. Resource tax is 15%. The household benefits from 85% of the value of the harvested product, while the contracting party receives 15%. The household receives the entire forest product at the delivery site. Calculation guidance is as follows: (1) Amount payable to the contracting party: 24 cubic meters x 600,000 VND x 15% = 2,160,000 VND per hectare (2) Resource tax: 24 cubic meters x 950,000 VND x 15% = 3,420,000 VND per hectare (3) Revenue from selling timber at the delivery site: 24 cubic meters x 950,000 VND = 22,800,000 VND per hectare (4) Amount the household benefits:

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

2. Management of harvesting costs

a. Households assigned or contracted forests and forest land when permitted to harvest may organize their own harvesting activities or hire others to harvest in accordance with current logging procedures, norms, and regulations.

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

c. Households contracted forests and forest land must bear costs related to the portion of forest products they enjoy.

3. Management and utilization of allocated products

a. For households: Permitted to use and consume the allocated portion of products, including: The portion of products enjoyed when dividing the main harvested products; the portion of products of the contracting party that the household has paid to the contracting party in cash equivalent to the quantity of those products; Products harvested from the forest: thinning, auxiliary trees, intercropping, combined agricultural and fishery products.

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

In the case where state enterprises receive products when dividing products, the revenue from selling these products is the enterprise's income.

In the case where state enterprises receive money when dividing products, this income is considered financial investment income and recorded as financial income of the enterprise.

Costs of contracting forests and forest land and other costs related to consuming the allocated products are recorded as business expenses and financial investment activity costs of the enterprise.

The management and use of the above revenues by state enterprises are carried out in accordance with Circular No. 63/1999/TT-BTC of the Ministry of Finance on managing revenue, cost structure, and Circular No. 109/2000/TTLT/BNN-BTC dated October 20, 2000, issued jointly by 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.

c. For Forest Protection Management Boards, Specialized Forest Management Boards.

Income from consuming the allocated portion of products and revenue of Forest Protection Management Boards, Specialized Forest Management Boards.

Costs of protecting, enclosing regenerating forests, planting forests, costs related to the allocated portion of forest products, and other costs are recorded as operating expenses of Forest Protection Management Boards, Specialized Forest Management Boards.

The management and use of the above revenues for Forest Protection Management Boards, Specialized Forest Management Boards are implemented 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 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 income 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 forestry promotion work.

4. Allocation of funds for afforestation, care, and protection of forests

Households assigned special-use forests, protective forests for management, protection, and enclosure regenerating; assigned or leased forest land without forests within the planning area of protective forests as stipulated in Articles 4, 5, and 6 of Decision No. 178/2001/QĐ-TTg shall be provided with funds from the State budget according to Circular No. 43/2002/TT-BTC dated May 7, 2002, of the Ministry of Finance on guiding the management and allocation of budget capital for the New Forest Planting Project of 5 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 in accordance with 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 in accordance with Decision No. 162/1999/QĐ-TTg dated August 7, 1999, of the Prime Minister on policies for benefiting households and individuals participating in afforestation funded by the Federal Republic of Germany.

5. 3. Households receiving support capital from the Forestry Sector Project on upstream forest management shall benefit in accordance with 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 Sector 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

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

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

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

3. The Land Administration shall take the lead in coordinating with the Forest Protection Agency and the Department of Agriculture and Rural Development at the same level to implement the allocation and leasing of forest land to households.

For households allocated forest land by the State that has natural forests, in addition to completing land registration procedures, establishing land administration files, and issuing land use right certificates according to the guidance provided 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 forest land use right certificate must clearly record the state of the forest at the time of allocation as prescribed in Decision No. 682/QĐKT to serve as a basis for dividing benefits from the forest.

This Circular shall take effect fifteen days after its publication in the Official Gazette. Any difficulties encountered during implementation should be promptly reported through a written report to the Ministry of Agriculture and Rural Development - Ministry of Finance for consideration and resolution.

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

Any difficulties encountered during implementation should be promptly reported through a written report to the Ministry of Agriculture and Rural Development - Ministry of Finance for consideration and resolution.