Key Updates in Vietnam's Timber Legality Assurance System Regulation
Recently, Vietnam issued Decree No. 120⁄2024⁄ND-CP, dated September 30, 2024, amending and supplementing several articles of Decree No. 102⁄2020⁄ND-CP, dated September 1, 2020, which regulates the Vietnam Timber Legality Assurance System. This Decree will take effect on November 15, 2024.
The Vietnam Timber Legality Assurance System (VTLAS) is set out in Decree No. 120/2024/ND-CP. This decree stipulates the criteria, authority, order and procedures for classifying enterprises involved in planting, exploiting and supplying timber from planted forests, as well as processing, importing and exporting timber. It also sets out the conditions for granting FLEGT licenses.
List of countries and territories in the positive geographical zone
Decree No. 120/2024/ND-CP has added regulations on countries and territories in positive geographical areas and those not in positive geographical areas.
According to Decree No. 120/2024/ND-CP, a country or territory is considered to be in a positive geographical area when it meets one of the following criteria:
1. Have an operational timber legality assurance system and FLEGT licensing;
2. Have national and regional legal regulations on the accountability of timber legality throughout the supply chain, from the country or territory where the timber is harvested, in accordance with the Vietnam Timber Legality Assurance System;
3. Have a Government effectiveness index of 0 or higher according to the most recent World Bank ranking on the World Governance Index (WGI); possess a system of legal documents on CITES implementation classified as Type I by the CITES Secretariat, and meet one of the following two criteria: (a) The country or territory has a national forest certification system recognized by Vietnam that meets the legal timber criteria as prescribed in this Decree, or (b) The country or territory has signed an international treaty or agreement with Vietnam on legal timber.
According to Decree No. 120/2024/ND-CP, a country or territory is not in the positive geographical area when it falls into one of the following cases:
1. Countries and territories that do not meet the above criteria;
2. Countries and territories that meet the above criteria but have evidence of illegal logging, timber trade, or the use of forged documents in violation of the laws of the relevant countries.
Furthermore, the Decree explicitly states that the List of countries and territories in the active geographical area is chaired by the Ministry of Agriculture and Rural Development, in coordination with the Ministry of Foreign Affairs, the Ministry of Industry and Trade, the Ministry of Finance, relevant ministries, branches and organizations specified in international treaties or international agreements. The List of countries and territories in the active geographical area is updated on a periodic basis, before 31 December each year or in the event of a change. The latest version is made public on the electronic information portal of the Ministry of Agriculture and Rural Development and the electronic information page: www.kiemlam.org.vn.
List of endangered timber species
According to Decree No. 120/2024/ND-CP, tinder species are on the List of Endangered Species if it meets one of the following criteria:
1. Timber listed in the Appendices of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES Appendices);
2. Timber included in the List of Endangered, Precious, and Rare Forest Plants and Animals, Group IA and Group IIA; and the List of Endangered, Precious, and Rare Species Prioritized for Protection under Vietnamese law;
3. Timber species imported into Vietnam for the first time;
4. Timber at risk of extinction in the country or territory of origin, or timber that has been illegally exploited, traded, or uses forged documents for legal certification, as determined and publicly disclosed 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, and relevant ministries, agencies, and organizations specified in international treaties or agreements to which Vietnam is a party.
The Decree states that wood species is not endangered if it does not meet the above criteria.
The Ministry of Agriculture and Rural Development, in collaboration with the Ministry of Finance, oversees the compilation and periodic review of a list of wood species imported into Vietnam. This list includes scientific names, Vietnamese and English trade names (where applicable), and is published annually before 31 December on the Online Portal of the Ministry of Agriculture and Rural Development and the website: www.kiemlam.org.vn.
Imported wood dossier
In accordance with the stipulations set forth in Decree No. 102/2020/ND-CP, when undertaking customs procedures for imported wood shipments, in addition to the customs dossier as prescribed by the law on customs, the owner of the imported wood is required to submit the following documents to the customs authority where the declaration is registered:
1- Original copy of imported timber list prepared by the timber owner according to Form No. 01 or Form No. 02 of Appendix I issued with this Decree.
2- One of the following documents:
- In the case of wood listed in CITES Appendix: A copy of the CITES export or re-export permit issued by the CITES Management Authority of the exporting or re-exporting country; a copy of the CITES import permit issued by the CITES Management Authority of Vietnam;
- In the case of timber imported from a country that has signed a Timber Legality Agreement with the EU and is operating a FLEGT licensing system: A copy of the FLEGT export license issued by the competent authority of the exporting country;
- In the case where the imported wood shipment does not fall into the above two categories: A declaration of origin for the imported wood according to Form No. 03, Appendix I, issued with this Decree.
In accordance with Decree No. 120/2024/ND-CP, the owner of imported wood must present the following documents to the Customs authority where the declaration is registered in addition to the customs dossier as prescribed by the law on Customs when carrying out customs procedures for imported wood shipments:
1- Original copy of imported timber list prepared by the timber owner according to Form No. 01 or Form No. 02 of Appendix I issued with this Decree.
2- One of the following documents:
- In the case of wood listed in CITES Appendix: A copy of the CITES export or re-export permit issued by the CITES Management Authority of the exporting or re-exporting country; the original or an electronic copy of the CITES import permit issued by the CITES Management Authority of Vietnam;
- In the case of imported wood from a country or territory that has signed a Timber Legality Agreement with the EU and is operating a FLEGT licensing system: A copy of the FLEGT export license issued by the competent authority of the exporting country.
3- In the case where the wood owner presents paper documents: After completing the customs procedures, the Customs authority will return the imported wood documents to the wood owner for storage in accordance with regulations.
The Decree will come into effect on 15 November 2024. Enterprises engaged in wood processing and exporting that have submitted their application for enterprise classification prior to the effective date of this Decree will continue to classify their enterprises in accordance with the provisions set out in Decree No. 102/2020/ND-CP.
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