This Decision shall enter into force on the day of its adoption.

The Council Secretariat General shall establish the instrument of full powers to sign the Agreement, subject to its conclusion, for the person(s) indicated by the negotiator of the Agreement.

The text of the Agreement to be signed is attached to this Decision.

The signing of the Voluntary Partnership Agreement between the European Union and the Socialist Republic of Viet Nam on forest law enforcement, governance and trade is hereby approved on behalf of the Union, subject to the conclusion of the said Agreement.

(5)Therefore, the Agreement should be signed on behalf of the European Union, subject to its conclusion at a later date,

(4)The negotiations with the Socialist Republic of Vietnam in view of the conclusion of a Voluntary Partnership Agreement between the European Union and the Socialist Republic of Vietnam on forest law enforcement, governance and trade (hereinafter referred to as ‘the Agreement’) were successfully concluded by the initialling of the Agreement on 11 May 2017.

(3)On 20 December 2005, the Council adopted Regulation (EC) No 2173/2005 which established a FLEGT licensing scheme for imports of timber into the Union from countries with which the Union has concluded voluntary partnership agreements.

(2)On 5 December 2005, the Council authorised the Commission to open negotiations with timber-producing countries on partnership agreements to implement the EU Action Plan for Forest Law Enforcement, Governance and Trade.

(1)In May 2003, the Commission adopted a Communication to the European Parliament and to the Council entitled ‘Forest Law Enforcement, Governance and Trade (FLEGT): Proposal for an EU Action Plan’ which called for measures to address illegal logging by developing voluntary partnership agreements with timber-producing countries. Council conclusions on that Action Plan were adopted in October 2003 and Parliament adopted a resolution on the subject on 11 July 2005.

Having regard to the proposal from the European Commission,

Having regard to the Treaty on the Functioning of the European Union, and in particular the first subparagraph of Article 207(3), in conjunction with Article 218(5) thereof,

THE COUNCIL OF THE EUROPEAN UNION,

on the signing, on behalf of the Union, of the Voluntary Partnership Agreement between the European Union and the Socialist Republic of Viet Nam on forest law enforcement, governance and trade

•Detailed explanation of the specific provisions of the proposal

This initiative does not have budgetary implications.

•Collection and use of expertise

This proposal is in accordance with Article 218(5) TFEU, which envisages the adoption by the Council of decisions authorising the signing of the international agreements.

The conclusion of this Agreement is in line with the FLEGT Action Plan and does not go beyond what is necessary to achieve its aims.

Having in mind the objective of the Agreement, which is to provide legal framework aimed at ensuring that all imports of timber and timber products covered by the Agreement into the Union from Vietnam have been legally produced, the Union has exclusive competence to conclude it in accordance with Article 207(3) TFEU. Article 218(5) TFEU authorises the Council to adopt a decision authorising the signing of the agreement on a proposal by the negotiator.

The proposed legal basis is the first subparagraph of Article 207(3), in conjunction with Article 218(5) of the Treaty on the functioning of the European Union (TFEU).

As a part of the FLEGT Action Plan, the conclusion of this Agreement is relevant for the EU development cooperation policy because it does not only promote trade in legally harvested timber, but it also aims to strengthen forest governance in Vietnam by improving transparency, accountability and stakeholder participation. Since the implementation of the Agreement will reinforce sustainable forest management this initiative will also contribute to combating climate change through reduced emissions from deforestation and forest degradation.

The initiative is consistent with Regulation (EU) No 995/2010 because the timber products that will be covered by FLEGT licences issued in Vietnam in accordance with this Agreement will be deemed to have been legally harvested in accordance with Article 3 of that Regulation.

The Agreement makes provision for import controls at the EU’s borders, as provided for in Regulation (EC) No 2173/2005 on the FLEGT licensing scheme and Regulation (EC) No 1024/2008 laying down detailed measures for implementing it. The Agreement includes a description of Vietnam's FLEGT licence, which uses the format prescribed in the above-mentioned Implementing Regulation.

The Agreement is not limited only to the product coverage proposed in Annex II to Regulation (EC) No 2173/2005 and covers a wide range of exported timber products.

The Agreement establishes a mechanism for dialogue and cooperation between the EU and Vietnam on the FLEGT licensing scheme, via a Joint Implementation Committee. It also establishes principles of stakeholder participation, social safeguards, accountability and transparency, and mechanisms for complaints on, monitoring of and reporting on implementation of the Agreement.

The Agreement aims at strengthening forest governance and law enforcement and, by means of the FLEGT licensing scheme, will reassure the EU market that timber exported from Vietnam comes from legally harvested timber. Once FLEGT licences are issued, the Agreement will facilitate compliance of EU importers with the requirements of Regulation (EU) No 995/2010 of the European Parliament and of the Council laying down the obligations of operators who place timber and timber products on the market which states that timber and timber products covered with a FLEGT licence is considered to have been legally harvested for the purposes of that Regulation.

The Voluntary Partnership Agreement between the EU and Vietnam (Agreement) addresses all elements of the Council negotiating directives. In particular, it establishes the framework, institutions and systems for the timber legality assurance system for the FLEGT licensing scheme. It also sets out the framework for monitoring compliance and for independent evaluation of the system. The Agreement includes a clear commitment by Vietnam to develop legislation to ensure that timber imported in Vietnam has been legally harvested in compliance with the applicable legislation in the country of harvest. These elements are set out in annexes to the Agreement, which provide a detailed description of the structures that will underpin the development and implementation of the Vietnam timber legality assurance system, as well as criteria to assess the operationality of the system before a future decision on start of the FLEGT licensing scheme.

The Commission entered into negotiations with Vietnam in 2010. The Commission has been assisted by Member States, particularly Germany and Finland. The Commission has regularly kept the Council updated on progress, with reports to the Working Party on Forests as well as Member States' missions in Vietnam. The Commission has also informed the European Parliament of the negotiation developments. The parties have regularly offered public meetings after negotiating sessions to keep the stakeholders informed of the process.

In 2005 the Council authorised the Commission to negotiate FLEGT partnership agreements with timber-producing countries.

The Action Plan on Forest Law Enforcement, Governance and Trade (FLEGT), endorsed by the Council in 2003, proposes a set of measures, including support for timber-producing countries, multilateral collaboration to tackle trade in illegal timber, support for private-sector initiatives, and measures to discourage investment in activities that encourage illegal logging. The cornerstone of the Action Plan is the establishment of FLEGT partnerships between the EU and timber-producing countries, aimed at stopping illegal logging. In 2005 the Council adopted Regulation (EC) No 2173/2005 on the establishment of a FLEGT licensing scheme for imports of timber into the European Community, a mechanism that enables verification of the legality of timber imported into the EU under the FLEGT partnerships.

•Reasons for and objectives of the proposal

on the signing, on behalf of the Union, of the Voluntary Partnership Agreement between the European Union and the Socialist Republic of Viet Nam on forest law enforcement, governance and trade

EUROPEAN COMMISSION Brussels, 3.7.2018 COM(2018) 514 final ANNEX

to the COUNCIL DECISION on the signing, on behalf of the Union, of the Voluntary Partnership Agreement between the European Union and the Socialist Republic of Viet Nam on forest law enforcement, governance and trade



VOLUNTARY PARTNERSHIP AGREEMENT BETWEEN THE EUROPEAN UNION AND THE SOCIALIST REPUBLIC OF VIET NAM ON FOREST LAW ENFORCEMENT, GOVERNANCE AND TRADE THE EUROPEAN UNION, hereinafter referred to as “the Union”, and THE GOVERNMENT OF THE SOCIALIST REPUBLIC OF VIET NAM, hereinafter referred to as “Viet Nam”, hereinafter referred to together as “the Parties”, CONSIDERING the Communication from the European Commission to the Council of the European Union and to the European Parliament on an EU Action Plan for Forest Law Enforcement, Governance and Trade (FLEGT) as a first step towards tackling the urgent issue of illegal logging and associated trade; REAFFIRMING the importance of the principles and commitments set out in the Declaration on the United Nations 2030 Agenda for Sustainable Development of 2015, in particular the commitment to achieve sustainable development in its three dimensions – economic, social and environmental – in a balanced and integrated manner;



RECALLING in this respect the Sustainable Development Goals and targets, in particular the target (15.2) to promote, by 2020, the implementation of sustainable management of all types of forests, halt deforestation, restore degraded forests and substantially increase afforestation and reforestation globally;

AWARE of the importance of the principles set out in the 1992 Rio Declaration on Environment and Development in the context of securing sustainable forest management and, in particular, of Principle 10 concerning the importance of public awareness and participation in environmental issues and of Principle 22 concerning the vital role of indigenous people and other local communities in environmental management and development; REAFFIRMING the importance attached by the Parties to the principles and rules which govern the multilateral trading systems, in particular the rights and obligations laid down in the General Agreement on Tariffs and Trade (GATT) 1994 and in other multilateral agreements listed in Annex IA to the Marrakesh Agreement of 15 April 1994 establishing the World Trade Organization (WTO), and the need to apply them in a transparent and nondiscriminatory manner;



HAVING REGARD to the Convention on International Trade in Endangered Species of Wild Flora and Fauna (CITES) and, in particular, the requirement that CITES export permits issued by the Parties to CITES for specimens of species listed in Appendix I, II or III to CITES be granted only under certain conditions, including that such specimens were not obtained in breach of the relevant laws for the protection of fauna and flora; RECALLING the Framework Agreement on Comprehensive Partnership and Cooperation between the European Union and its Member States, of the one part, and the Socialist Republic of Viet Nam, of the other part, signed in Brussels on 27 June 2012; RECALLING the recent conclusion of negotiations for a Free Trade Agreement between the European Union and the Socialist Republic of Viet Nam, and in particular the commitments therein related to sustainable forest management and trade in forest products; RECOGNISING efforts by the Government of Viet Nam to promote good forestry governance, law enforcement and the trade in legal timber, including through the Viet Nam Timber Legality Assurance System (“VNTLAS”), which will be developed through a multistakeholder process in accordance with the principles of good governance, credibility and representativeness;



RECOGNISING that the implementation of this Agreement will reinforce sustainable forest management and contribute to combating climate change through reduced emissions from deforestation and forest degradation and the role of conservation, sustainable management of forest and enhancement of forest carbon stocks (REDD+); RECOGNISING that stakeholders have a crucial role to play in the implementation of this Agreement and that it is therefore essential that effective mechanisms for their contribution to the enforcement of the VNTLAS are in place; RECOGNISING that the publication of information is essential to improve governance and that the provision of information to stakeholders should therefore be central to this Agreement in order to facilitate the implementation and monitoring of systems, increase transparency, and thus improve stakeholder and consumer confidence, as well as to ensure accountability of the Parties; RESOLVED that the Parties shall seek to minimise any adverse impacts on local communities and poor people which may arise as a direct consequence of implementing this Agreement;





REAFFIRMING the principles of mutual respect, sovereignty, equality and nondiscrimination and recognising the benefits to the Parties arising from this Agreement; AFFIRMING that, in accordance with the Law on Treaties No. 108/2016/QH13 dated 9 April 2016 of Viet Nam, this Agreement shall be approved by the Government of the Socialist Republic of Viet Nam, thereby expressing the consent of the Socialist Republic of Viet Nam to be bound by this Agreement; PURSUANT to the respective laws and regulations of the Parties, HEREBY AGREE AS FOLLOWS:

ARTICLE 1 Objective 1. The objective of this Agreement, consistent with the Parties’ common commitment to the sustainable management of all types of forest, is to provide a legal framework aimed at ensuring that all imports into the Union from Viet Nam of timber and timber products covered by this Agreement have been legally produced and, in doing so, to promote trade in timber products that are from sustainably managed forests and harvested in accordance with the domestic legislation in the country of harvest. 2. This Agreement also provides a basis for dialogue and cooperation between the Parties to facilitate and promote the full implementation of this Agreement and enhance forest law enforcement and governance.

ARTICLE 2

Definitions For the purposes of this Agreement, the following definitions shall apply: (a) “import into the Union” means the release for free circulation into the Union within the meaning of Article 201 of Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code of timber products which cannot be classified as “goods of a noncommercial nature” as defined in point 21 of Article 1 of Commission Delegated Regulation (EU) 2015/2446 of 28 July 2015 supplementing Regulation (EU) No 952/2013 of the European Parliament and of the Council as regards detailed rules concerning certain provisions of the Union Customs Code; (b) “export” means the physical leaving or taking out of timber products from any part of the geographical territory of Viet Nam, except for timber products in transit through Viet Nam;

(c) “timber products in transit” means any timber products originating from a third country which enter the territory of Viet Nam under customs control and leave it in the same form whilst retaining their country of origin; (d) “timber products” means the products listed in Annex I; (e) “HS code” means a four or sixdigit code as set out in the nomenclature of the Harmonized Commodity Description and Coding System established by the International Convention on the Harmonized Commodity Description and Coding System of the World Customs Organization; (f) “FLEGT licence” means a Vietnamese legal document which confirms that a shipment of timber products intended for export to the Union has been legally produced and verified in accordance with the criteria laid down in this Agreement. A FLEGT licence may be in paper or electronic form; (g) “Licensing Authority” means the authority designated by Viet Nam to issue and validate FLEGT licences;

(h) “competent authorities” means the authorities designated by the Member States of the Union to receive, accept and verify FLEGT licences;

(i) “shipment” means a quantity of timber products covered by a FLEGT licence that is sent by a consignor or a shipper from Viet Nam and is presented for release for free circulation at a customs office in the Union; (j) “legally produced timber” (hereinafter also referred to as “legal timber”) means timber products harvested or imported and produced in accordance with the legislation of Viet Nam set out in Annex II and other relevant provisions of this Agreement; and, in the case of imported timber, it means timber products harvested, produced and exported in accordance with the relevant legislation of the country of harvest and the procedures described in Annex V;

(k) “release for free circulation” means a Union customs procedure which confers the customs status of Union goods on goods which are not from the Union (in accordance with Regulation (EU) No 952/2013), entailing the collection of any import duties due; the collection, as appropriate, of other charges; the application of commercial policy measures and prohibitions and restrictions; and the completion of other formalities laid down in respect of the importation of goods; (l) “verification of verifiers” means the process of checking the legality, validity and conformity of verifiers on the basis of documentary and/or physical checks by the verification entities in accordance with the regulations set out in the Legality Definition in Annex II.

ARTICLE 3 FLEGT licensing scheme 1. A forest law enforcement, governance and trade (FLEGT) licensing scheme is hereby established between the Parties. It establishes a set of procedures and requirements aimed at verifying and attesting, by means of FLEGT licences, that timber products shipped to the Union were legally produced. In accordance with Council Regulation (EC) No 2173/2005 of 20 December 2005 on the establishment of a FLEGT licensing scheme for imports of timber into the European Community and this Agreement, the Union shall accept such shipments from Viet Nam for import into the Union only if they are covered by FLEGT licences. 2. The FLEGT licensing scheme shall apply to the timber products listed in Annex I. 3. The Parties agree to take all measures necessary to implement the FLEGT licensing scheme.



ARTICLE 4 Licensing Authority 1. Viet Nam shall designate the FLEGT Licensing Authority and notify its contact details to the European Commission. Both Parties shall make that information available to the public. 2. The Licensing Authority shall verify that timber products have been legally produced in accordance with the legislation identified in Annex II. The Licensing Authority shall issue FLEGT licences covering shipments of timber products that are legally produced in Viet Nam for export to the Union. 3. The Licensing Authority shall not issue FLEGT licences for any shipment of timber products that has not been legally produced in accordance with the Vietnamese legislation specified in Annex II or, in the case of imported timber, timber products that have not been harvested, produced or exported in accordance with the legislation of the country of harvest and of the country of production.

4. The Licensing Authority shall maintain and make publicly available its procedures for issuing FLEGT licences. It shall also maintain records of all shipments covered by FLEGT licences, consistent with national legislation concerning data protection, and shall provide such records for the purposes of the independent evaluation referred to in Article 10, while respecting the confidentiality of exporters’ proprietary information. ARTICLE 5 Competent authorities 1. The European Commission shall inform Viet Nam of the contact details of the competent authorities designated by the Member States of the Union. Both Parties shall make that information available to the public. 2. The competent authorities shall verify that each shipment is covered by a valid FLEGT licence before releasing that shipment for free circulation in the Union. The release of the shipment may be suspended and the shipment may be held if there are doubts regarding the validity of the FLEGT licence.



3. The competent authorities shall maintain and publish annually a record of FLEGT licences received. 4. The competent authorities shall grant persons or bodies designated by Viet Nam as Independent Evaluator in accordance with Article 10 access to the relevant documents and data, in accordance with their national legislation on data protection. 5. The competent authorities shall not perform the action described in paragraph 2 in the case of a shipment of timber products derived from species listed in the Appendices to CITES, as these are covered by the provisions for verification set out in Council Regulation (EC) No 338/97 of 9 December 1996 on the protection of species of wild fauna and flora by regulating trade therein.

ARTICLE 6 FLEGT licences 1. FLEGT licences shall be issued by the Licensing Authority as a means of attesting that timber products have been legally produced. 2. FLEGT licences shall be provided on a form written in English and Vietnamese. The form shall be completed in English. 3. The Parties may, by agreement, establish electronic systems for issuing, sending and receiving FLEGT licences. 4. The technical specifications and the procedure for issuing FLEGT licences are set out in Annex IV.



ARTICLE 7 Definition of “legally produced timber” For the purposes of this Agreement, a definition of “legally produced timber” is given in point (j) of Article 2 and specified in Annex II. That Annex describes Vietnamese legislation that must be complied with in order for timber products to be covered by a FLEGT licence. That Annex also includes documentation containing the principles, criteria, indicators and verifiers serving to prove compliance with such legislation.

ARTICLE 8 Verification of legally produced timber 1. Viet Nam shall establish and implement a Viet Nam Timber Legality Assurance System (“VNTLAS”) to verify that timber and timber products have been legally produced and to ensure that only shipments verified as such are exported to the Union. The VNTLAS shall include compliance checks and procedures to ensure that timber of illegal or unknown origin does not enter the supply chain. 2. The system for verifying that shipments of timber products have been legally produced is set out in Annex V.

ARTICLE 9 Release of shipments covered by a FLEGT licence

1. The procedures governing the release for free circulation in the Union of shipments covered by a FLEGT licence are described in Annex III. 2. Where the competent authorities have reasonable grounds to suspect that a licence is not valid or authentic or does not conform to the shipment it purports to cover, the competent authority concerned may apply procedures described in Annex III. 3. Where persistent disagreements or difficulties arise in consultations concerning FLEGT licences, the matter may be referred to the Joint Implementation Committee established pursuant to Article 18.

ARTICLE 10 Independent evaluation 1. The purpose of the independent evaluation is to assess the implementation, effectiveness and credibility of the VNTLAS and the FLEGT licensing scheme, as set out in Annex VI. 2. Viet Nam, in consultation with the Union, shall engage the services of the Independent Evaluator to implement the tasks set out in Annex VI. 3. The Independent Evaluator shall be a body with no conflict of interest resulting from an organisational or commercial relationship with: (a) the Union or with the Vietnamese forestry sector regulatory authorities;

(b) the Licensing Authority, or anybody given the responsibility of verifying the legality of timber production; or (c) any operator exercising a commercial activity in its forestry sector.

4. The Independent Evaluator shall operate in accordance with a documented management structure, and with published policies, methods and procedures that correspond to internationally accepted best practices. 5. The Independent Evaluator shall refer complaints arising from its work to the Joint Implementation Committee established pursuant to Article 18. 6. The Independent Evaluator shall submit its observations to the Parties in reports in accordance with the procedure described in Annex VI. Reports by the Independent Evaluator shall be published in accordance with the procedure set out in Annex VIII. 7. The Parties shall facilitate the work of the Independent Evaluator, ensuring in particular that it has access to the territory of each Party and to the information necessary for the performance of its functions. In accordance with their respective national legislation on data protection, the Parties may nonetheless refuse to disclose information that they are not permitted to communicate.

ARTICLE 11 Irregularities The Parties shall inform each other in accordance with Article 20 if they suspect or have found evidence of any circumvention or irregularity in the FLEGT licensing scheme, including in relation to the following: (a) circumvention of trade, including by redirection of trade from Viet Nam to the Union via a third country, where there is reason to believe that this is done with the intention of avoiding licensing;

(b) FLEGT licences covering timber products which contain timber from third countries that is suspected of being illegally produced; or (c) fraud in obtaining or using FLEGT licences.

ARTICLE 12 Date of operation of the FLEGT licensing scheme 1. The Parties shall notify each other through the Joint Implementation Committee established pursuant to Article 18 when they consider that they have made the necessary preparations for the FLEGT licensing scheme to become fully operational. 2. The Parties shall, through the Joint Implementation Committee, commission an independent assessment of the FLEGT licensing scheme on the basis of the criteria set out in Annex VII. The assessment shall determine whether the VNTLAS underpinning the FLEGT licensing scheme as described in Annex V adequately fulfils its functions. 3. On the basis of the recommendations of the Joint Implementation Committee, the Parties shall agree on a date on which the FLEGT licensing scheme will start operating. 4. The Parties shall notify each other in writing of this date.

ARTICLE 13

Application of the VNTLAS and other measures 1. Using the VNTLAS, Viet Nam shall verify the legality of timber products exported to nonUnion markets and timber products sold on domestic markets, and shall verify the legality of imported timber products using the system developed for implementing this Agreement. 2. In support of the application of VNTLAS, the Union shall encourage the use of the system with respect to trade in other international markets and with third countries. 3. The Union shall implement measures to prevent the placing on the Union market of illegally harvested timber and products derived therefrom in accordance with its applicable legislation.

ARTICLE 14 Supporting measures 1. The provision of any resources necessary for measures to support the implementation of this Agreement shall be determined in the context of the programming exercises of the Union and its Member States for cooperation with Viet Nam. 2. Viet Nam shall ensure that its capacity to implement this Agreement is strengthened. 3. The Parties shall ensure that activities associated with the implementation of this Agreement are coordinated with existing and future development programmes and initiatives.

ARTICLE 15 Stakeholder involvement in the implementation of this Agreement 1. Viet Nam shall include relevant stakeholders in the implementation of this Agreement.

2. Viet Nam shall ensure that the implementation and monitoring of this Agreement are done in a transparent manner together with relevant stakeholders, including NGOs, forest associations, enterprises, trade unions, local communities and people living in the forest areas. 3. Viet Nam shall ensure that a mechanism is in place to monitor the implementation of this Agreement, involving representatives of relevant Government agencies and other relevant stakeholders. 4. Viet Nam shall hold regular consultations with stakeholders on the implementation of this Agreement and in that regard promote appropriate consultation strategies, modalities and programmes. 5. The Union shall hold regular consultations with stakeholders on the implementation of this Agreement, taking into account its obligations under the United Nations Economic Commission for Europe Convention on Access to Information, Public Participation in Decisionmaking and Access to Justice in Environmental Matters of 1998 (the Aarhus Convention).

ARTICLE 16 Social safeguards

1. In order to minimise possible adverse effects of this Agreement, the Parties agree to assess the impacts on ethnic minorities and local communities concerned and on their way of life, as well as on households and the timber industry. 2. The Parties shall monitor the impacts of this Agreement as described in paragraph 1 while taking reasonable steps to mitigate any adverse effects. The Parties may agree on additional measures to address any adverse effects.

ARTICLE 17 Market incentives Taking into account its international obligations, the Union shall promote a favourable position in the Union market for the timber products covered by this Agreement. Such efforts shall include in particular measures to support: (a) public and private procurement policies that recognise a supply of and ensure a market for legally harvested timber products; and (b) a more favourable perception of FLEGTlicensed products on the Union market.

ARTICLE 18 Joint Implementation Committee

1. The Parties shall establish a Joint Implementation Committee (JIC) to facilitate the management, monitoring and review of this Agreement. The JIC shall also facilitate dialogue and exchanges of information between the Parties. 2. The JIC shall be established within three months of the entry into force of this Agreement. Each Party shall designate its representatives to the JIC. The JIC shall make its decisions by consensus. The JIC shall be cochaired by senior officials designated by each Party. 3. The JIC shall establish its rules of procedure. 4. The JIC shall meet at least twice a year in the first two years and once per year thereafter, on a date and with an agenda agreed in advance by the Parties. Additional meetings may be convened at the request of either of the Parties.

5. The JIC shall ensure that its work is transparent and that information about its work and decisions are made available to the public. 6. The JIC shall publish a joint annual report. The details and content to be included in that report are given in Annex VIII. 7. The specific functions and tasks of the JIC are described in Annex IX. ARTICLE 19 Reporting and public disclosure of information 1. The Parties commit to regularly make available to the public information related to the implementation and monitoring of this Agreement.

2. The Parties shall make information listed in Annex VIII publicly available in accordance with the mechanisms described in that Annex. The Parties shall endeavour to provide the various stakeholders associated with the forestry sector with reliable, relevant and uptodate information.

3. In accordance with their respective legislation, the Parties agree not to disclose confidential information exchanged under this Agreement. Neither Party shall disclose to the public, nor permit its authorities to disclose, information exchanged under this Agreement concerning trade secrets or confidential commercial information. ARTICLE 20 Communication on implementation 1. The representatives of the Parties responsible for official communications concerning the implementation of this Agreement shall be: (a) for Viet Nam: the Vice Minister, Ministry of Agriculture and Rural Development; (b) for the Union: the Head of the Delegation of the Union in Viet Nam.

2. The Parties shall communicate to each other in a timely manner the information necessary for implementing this Agreement, including changes as regards the representatives mentioned in paragraph 1. ARTICLE 21

Territorial application This Agreement shall apply to the territory in which the Treaty on the Functioning of the European Union is applied under the conditions laid down in that Treaty, on the one hand, and to the territory of Viet Nam, on the other.

ARTICLE 22 Settlement of disputes 1. The Parties shall seek to resolve any dispute concerning the application or interpretation of this Agreement through prompt consultations. 2. If a dispute has not been settled by means of consultations within 120 days of the date of the initial request for consultations, the dispute may be referred to the JIC, which shall endeavour to settle it. The JIC shall be provided with all relevant information for an indepth examination of the situation with a view to finding an acceptable solution. To this end, the JIC shall be required to examine all possibilities for maintaining the effective implementation of this Agreement. 3. In the event that the JIC is unable to settle the dispute, the Parties shall jointly seek the good offices of, or request mediation by, a third party.

4. If it is not possible to settle the dispute in accordance with paragraph 3, either Party may notify the other of the appointment of an arbitrator; the other Party shall then appoint a second arbitrator within 30 calendar days of the appointment of the first arbitrator. The Parties shall jointly appoint a third arbitrator within 60 days of the appointment of the second arbitrator. 5. The arbitrators’ decisions shall be taken by majority vote within six months of the third arbitrator being appointed.

6. The award shall be binding on the Parties and shall be without appeal. 7. The JIC shall establish the working procedures for arbitration.

ARTICLE 23 Suspension 1. A Party wishing to suspend this Agreement shall notify the other Party in writing of its intention to do so. The matter shall subsequently be discussed between the Parties, taking into consideration relevant stakeholders’ views. 2. Either Party may suspend the application of this Agreement in the event that the other Party: (a) fails to fulfil its obligations under this Agreement; (b) fails to maintain the regulatory and administrative measures and means required to implement this Agreement; or (c) acts in a way that poses significant risks to the environment, health, safety or security of the people of either the Union or Viet Nam.

The decision on suspension and the reasons for that decision shall be notified and sent to the other Party in writing.

3. The conditions of this Agreement shall cease to apply 30 calendar days after notice as referred to in the second subparagraph of paragraph 2 is given. 4. Application of this Agreement shall resume 30 calendar days after the Party that has suspended its application informs the other Party that the reasons for the suspension no longer apply. ARTICLE 24 Amendments 1. A Party wishing to amend this Agreement shall submit a proposal at least three months before the next meeting of the JIC. The JIC shall discuss the proposal and, if consensus is reached, shall make a recommendation. If the Parties agree with the recommendation, they shall approve it in accordance with their respective internal procedures.

2. Any amendment approved by the Parties in accordance with paragraph 1 shall enter into force on the first day of the month following the date on which the Parties notify each other of the completion of the procedures necessary for this purpose. 3. The JIC may adopt amendments to the Annexes to this Agreement. 4. Notification of any amendment shall be made to the SecretaryGeneral of the Council of the European Union and to the Minister for Foreign Affairs of the Socialist Republic of Viet Nam through diplomatic channels. ARTICLE 25

Entry into force, duration and termination 1. This Agreement shall enter into force on the first day of the month following the date on which the Parties notify each other in writing of the completion of their respective procedures necessary for this purpose.

2. Notifications referred to in this Article shall be made to the SecretaryGeneral of the Council of the European Union and to the Minister for Foreign Affairs of the Socialist Republic of Viet Nam through diplomatic channels. 3. This Agreement shall remain in force for a period of five years. It shall be automatically extended for consecutive periods of five years, unless a Party renounces the extension by notifying the other Party in writing at least 12 months before this Agreement expires. 4. Either Party may terminate this Agreement by notifying the other Party in writing. This Agreement shall cease to apply 12 months after the date of receipt of such notification. ARTICLE 26 Annexes The Annexes to this Agreement shall form an integral part thereof.

ARTICLE 27

Authentic texts This Agreement shall be drawn up in duplicate in the Bulgarian, Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish, Swedish and Vietnamese languages, each text being equally authentic. In the case of divergence of interpretation, the English text shall prevail. IN WITNESS WHEREOF, the undersigned, being duly authorised thereto, have signed this Agreement. DONE at …, For the European Union For the Government

of the Socialist Republic of Viet Nam

LIST OF ANNEXES ANNEX I: Product coverage: the harmonised commodity codes for timber and timber products covered under the FLEGT licensing scheme ANNEX II: Viet Nam Timber Legality Definition ANNEX III: Conditions governing the release for free circulation in the Union of timber products exported from Viet Nam and covered by a FLEGT licence ANNEX IV: FLEGT licensing scheme

ANNEX V: Viet Nam Timber Legality Assurance System (VNTLAS) ANNEX VI: Terms of reference for the independent evaluation ANNEX VII: Criteria for assessment of the operational readiness of the Viet Nam Timber Legality Assurance System ANNEX VIII: Public disclosure of information ANNEX IX: Functions of the Joint Implementation Committee ANNEX I PRODUCT COVERAGE: THE HARMONISED COMMODITY CODES FOR TIMBER AND TIMBER PRODUCTS COVERED UNDER THE FLEGT LICENSING SCHEME The list in this Annex refers to the Harmonized Commodity Description and Coding System established by the International Convention on the Harmonized Commodity Description and Coding System of the World Customs Organization. HS codes Description CHAPTER 44 Wood and articles of wood; wood charcoal Ex. 4401 Fuel wood, in logs, in billets, in twigs, in faggots or in similar forms; wood in chips or particles; sawdust and wood waste and scrap, whether or not agglomerated in logs, briquettes, pellets or similar forms (not from bamboo nor rattan). 4403 Wood in the rough, whether or not stripped of bark or sapwood, or roughly squared 4406 Railway or tramway sleepers (crossties) of wood 4407 Wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, sanded or endjointed, of a thickness exceeding 6 mm. Ex. 4408 Sheets for veneering (including those obtained by slicing laminated wood), for plywood or for similar laminated wood and other wood, sawn lengthwise, sliced or peeled, whether or not planed, sanded, spliced or endjointed, of a thickness not exceeding 6 mm (not from bamboo nor rattan). Ex. 4409 Wood (including strips and friezes for parquet flooring, not assembled) continuously shaped (tongued, grooved, rebated, chamfered, Vjointed, beaded, moulded, rounded or the like) along any of its edges, ends or faces, whether or not planed, sanded or endjointed (not from bamboo nor rattan). Ex. 4410 Particle board, oriented strand board (OSB) and similar board (for example, waferboard) of wood or other ligneous materials, whether or not agglomerated with resins or other organic binding substances (not from bamboo nor rattan). Ex. 4411 Fibreboard of wood or other ligneous materials, whether or not bonded with resins or other organic substances (not from bamboo nor rattan). Ex. 4412 Plywood, veneered panels and similar laminated wood (not from bamboo nor rattan). Ex. 441300 Densified wood, in blocks, plates, strips or profile shapes (not from bamboo nor rattan). Ex. 441400 Wooden frames for paintings, photographs, mirrors or similar objects (not from bamboo nor rattan). Ex. 4415 Packing cases, boxes, crates, drums and similar packings, of wood; cabledrums of wood; pallets, box pallets and other load boards, of wood; pallet collars of wood (not from bamboo nor rattan). Ex. 4416 Casks, barrels, vats, tubs and other coopers’ products and parts thereof, of wood, including staves (not from bamboo nor rattan). Ex. 4418 Builders’ joinery and carpentry of wood, including cellular wood panels, assembled flooring panels, shingles and shakes (not from bamboo nor rattan). CHAPTER 94 Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings 940330 --Wooden furniture of a kind used in offices. 940340 --Wooden furniture of a kind used in kitchens. 940350 --Wooden furniture of a kind used in the bedroom. 940360 Other wooden furniture. ________________ ANNEX II

VIET NAM TIMBER LEGALITY DEFINITION INTRODUCTION The Legality Definition (“LD”) sets out principles, criteria, indicators and verifiers for legal timber according to the laws and regulations of Viet Nam. The LD shall be updated as and when required during the implementation of this Agreement in accordance with the provisions of Article 24 of this Agreement. The LD forms an integral part of the Viet Nam Timber Legality Assurance System (“VNTLAS”) described in Annex V. This Annex has been developed by a multisector working group through a comprehensive consultation process with government agencies, industry associations, enterprises, civil society, households, individuals and local communities. The forms of consultation have included stakeholder workshops, online and written comments and contributions by organisations and individuals on drafts of the LD.

Vietnamese legal documents referred to in Appendices 1A and 1B to this Annex include laws and ordinances of the National Assembly, decrees of the Government, decisions of the Prime Minister, decisions of ministries and circulars of ministries which are publicly disclosed. STRUCTURE AND CONTENT OF THE LEGALITY DEFINITION MATRIX The LD is developed for two target groups, namely Organisations and Households, as defined in Section 2.2.1 of Annex V, to reflect compliance requirements of various regulations that apply to those two target groups and to design a clear, specific and feasible VNTLAS as described in Annex V. The LD for Organisations is set out in Appendix 1A to this Annex and the LD for Households is set out in Appendix 1B to this Annex.

The LD is divided into seven principles, as follows: 1. Organisations

− Principle I: Harvesting of domestic timber complies with regulations on land use rights, forest use rights, management, environment and society. − Principle II: Compliance with regulations on handling confiscated timber. − Principle III: Compliance with regulations on importing timber. − Principle IV: Compliance with regulations on timber transportation and trade. − Principle V: Compliance with regulations on timber processing. − Principle VI: Compliance with regulations on customs procedures for export. − Principle VII: Compliance with regulations on tax and employees.

2. Households − Principle I: Harvesting of domestic timber complies with regulations on land use rights, forest use rights, management, environment and society. − Principle II: Compliance with regulations on handling confiscated timber.

− Principle III: Compliance with regulations on importing timber. − Principle IV: Compliance with regulations on timber transportation and trade. − Principle V: Compliance with regulations on timber processing. − Principle VI: Compliance with regulations on customs procedures for export. − Principle VII: Compliance with taxation regulations.

The LD for Organisations and the LD for Households consist of seven principles; however, under some principles the number of criteria, indicators and verifiers varies. In general, some of the regulations that apply to Households are simpler than those for Organisations. The most significant differences are reflected in Principle I, IV and VII, as follows: − Under Principle I (Harvesting of domestic timber complies with regulations on land use rights, forest use rights, management, environment and society), both the LD for Organisations and the LD for Households include eight criteria; however, some of the criteria vary between the two categories. The LD for Organisations includes Criterion 1 (Compliance with regulations on main harvesting of natural forest timber), but that Criterion is not applicable to Households. The LD for Households includes Criterion 7 (Compliance with regulations on harvesting timber from plantations in home gardens, farms and dispersed trees), but that Criterion is not applicable to Organisations (described further below).



− Under Principle IV (Compliance with regulations on timber transportation and trade), the LD for Organisations includes 10 criteria and the LD for Households includes seven criteria. The additional criteria under the LD for Organisations, which are not applicable to Households, relate to compliance with regulations on business registration, and internal transportation of timber and timber products within a province and between provinces. − Under Principle VII, the LD for Organisations covers compliance with regulations on tax and employees (three criteria), while the LD for Households covers compliance with taxation regulations (one criterion). This reflects difference in the regulations on labour applied to Households as compared to Organisations. In the LD and under the VNTLAS, there is a distinction between static and dynamic verifiers as defined in Section 4.1 of Annex V. Static verifiers (denoted “S” in the LD matrix) relate to the establishment and operations of Organisations and Households, including but not limited to verifiers such as business registration, forest land use rights, taxation and environmental and labour regulation. Dynamic verifiers (denoted “D” in the LD matrix) relate to batches of timber in the supply chain, including but not limited to verifiers such as timber packing lists and sales invoices, included in the timber product dossier at each stage of the supply chain.



EXPLANATION OF ELEMENTS OF THE LEGALITY DEFINITION 1. Explanation of verifiers for land use rights and forest use rights The Government of Viet Nam aims to ensure that conducive conditions are created whereby domestic timber growers can produce and sell their products. The LD therefore sets out a comprehensive and inclusive framework of verifiers on land use rights and forest use rights as described under Principle I. The number of verifiers varies according to the category of user (Organisations or Households) and the category of forest (criterion). In order to determine legal land use rights, Organisations and Households only need one of the verifiers which are specified in Principle I of the LD. The main reason for including several verifiers for land use rights and forest use rights is the evolution of the land policy of Viet Nam in different periods. Verifiers on land use rights and forest use rights introduced under previous regulations may still be valid according to the Land Law of 2013.

Land use rights certificates (red book certificates) were first introduced through the Land Law of 1993. Since 1993, the issuance of land use rights certificates has been progressively extended to all land users and all categories of land throughout the country. That process is still underway and there are some circumstances in which legal forest land users have not yet been granted land use rights certificates. In this situation, a number of alternative verifiers may apply and can be used to demonstrate legal land use rights and legal forest use rights. Such alternative verifiers include: decisions on land allocation; decisions on forest allocation; decisions on forest land allocation; decisions on forest allocation combined with land allocation; decisions on land leasing; decisions on contracting forest land; forest registration books; and written confirmation from the Commune People’s Committee. According to the Land Law of 2013, in cases where Households do not have land use rights certificates, or any other documentary evidence of land use rights, certification by the Commune People’s Committee that the land is currently used and is not subject to any dispute can be used as a verifier of legal land use.

2. Harvesting timber from home gardens, farms and dispersed trees The LD for Households does not include verifiers that regulate land use rights for trees harvested from home gardens, farms and dispersed trees, because those trees do not meet criteria of concentrated plantation forests, or are planted in areas that cannot be granted land use rights certificates, such as roadsides or canal banks. When there is a need for harvesting, households submit, before exploitation, a report on the harvesting location, species and volume of timber harvested from their home gardens, farms and dispersed trees to the Commune People’s Committee for monitoring and controlling. After exploitation, households prepare and selfcertify their timber packing list. 3. Compliance with regulations on export

The procedure for FLEGT licensing for shipments of timber for export to markets of the Union takes place before customs procedures for export, as described in Annex IV. Therefore, Principle VI is used to classify Organisations under the Organisations Classification System as specified in Annex V.

4. Definitions In the context of this Agreement, the following terms are understood as follows: Principle A principle is an area of Vietnamese law and legislation that Organisations and Households have to comply with at each stage of the supply chain as indicated in this Annex and Annex V. Criterion A criterion is a legal requirement for Organisations and Households to implement in order to assure compliance with a principle.

Indicator An indicator is a specific measure, or set of measures, that Organisations and Households have to comply with to fulfil a criterion. Verifier

A verifier is a piece of evidence to prove the fulfilment of an indicator and criterion. Forest owner (forest title holder) Forest owner refers to Organisations or Households that are assigned or leased forest land or forest by the Government for forestryrelated production or business in accordance with the Law on Forest Protection and Development of 2004. Harvesting design statement The harvesting design statement is a document describing the basic situation of the harvesting area, harvesting techniques, harvesting and salvage volume, and categories and detailed tables on forest harvesting technical standards.

Design unit A design unit is an entity authorised by a competent agency with the mandate to design forest harvesting operations. Main harvesting Main harvesting of timber of natural forests refers to the logging of timber for economic purposes while ensuring the stable development and use of forest determined in the scheme for sustainable forest management in accordance with the current regulations of Viet Nam. Main harvesting in natural forests is not applied to Households. Tree marking list

The tree marking list is a document recording the name and size of the trees that can be felled in the harvesting design area.

Report on harvesting location and volume of harvested timber products The report on harvesting location and volume of harvested timber products lists information on the harvested area and the harvested volume according to different categories of domestic timber source, including natural forest, planted forest, rubber wood and scattered trees. Forest product packing list (“packing list”) The forest product packing list is a mandatory document in the timber product dossier at each stage of the timber supply chain from the point of harvest or import to the point of export, including timber trade, entry and exit of each processing or storage sites, or transportation by one vehicle. A packing list is subject to check and verification/approval at each stage by the relevant entities. The packing list for forest products in circulation includes information on the name and type of timber products, unit of measurement, form of the forest products, quantity and volume of forest products at the end of each page indicating the total quantity.

List of anticipated timber to be harvested The list of anticipated timber to be harvested includes information on the location, species and quantity (volume and diameter) of products to be harvested. Entry and exit books Entry and exit books are used to record the entry to and exit from the facilities of forest products of the harvesting, processing and trading Organisations.

Unprocessed timber products Unprocessed timber products are those not impacted by tools or equipment of any kind after being harvested, imported and handled (if confiscated) and still in their original shape and parameters.

Salvage harvesting and salvage collection Salvage harvesting of timber means the harvesting of timber during the implementation of silvicultural measures, scientific research and site clearance for projects involving conversion of forest use purposes. Salvage collection of timber means the collection of fallen or dead trees due to natural disaster; burnt, rotten or dry timber; and branches of timber remaining in forest. Legal timber product dossier (“timber product dossier”) The legal timber product dossier is a set of records related to timber products which are prepared, stored in the timberproductproducing and trading Organisations and Households and circulated together with timber products in the process of harvesting, trading, transporting, processing, storing and exporting. Production forest Production forests are forests used mainly for the production and sale of timber and nontimber forest products, in combination with environmental protection.

Protection forest

Protection forests are forests used mainly for the protection of water sources and soil, the prevention of erosion and desertification, the restriction of natural disasters, climate regulation and environmental protection. Specialuse forest Specialuse forests are forests used mainly for nature conservation, the preservation of standard specimens of the national ecosystems and forest biological gene sources, scientific research, the protection of historical and cultural relics and landscape preservation for recreation and tourism purposes, in combination with environmental protection. Appendix 1A LEGALITY DEFINITION FOR ORGANISATIONS PRINCIPLE I: HARVESTING OF DOMESTIC TIMBER COMPLIES WITH REGULATIONS ON LAND USE RIGHTS, FOREST USE RIGHTS, MANAGEMENT, ENVIRONMENT AND SOCIETY (ORGANISATIONS) Principle

Criterion

Indicators Verifiers Type of verifier

S=static

D=dynamic Legal references for verifiers Criterion 1: Compliance with regulations on main harvesting of natural forest timber Indicator 1.1: Compliance with legal regulations on land use right and forest use right – one of the following documents is required: 1.1.1. Decision on land allocation (prior to 15/10/1993); S No specific legislation prior to 1993 on land allocation 1.1.2. Decision on forest allocation (from 15/10/1993 to 1/7/2004); S Articles 5, 13 and 14, Decree 02. CP; Articles 16 and 17, Decree No. 163/1999/NDCP 1.1.3. Land use right certificate (from 15/10/1993 to date); S Articles 48, 49 and 51, Land Law 2003; Article 102, Land Law 2013 1.1.4. Decision on land allocation (from 15/10/1993 to date); S Articles 32, 33 and 34, Land Law 2003; Articles 53, 54 and 55, Land Law 2013 1.1.5. Decision on land leasing (from 15/10/1993 to date); S Article 35, Land Law 2003; Article 56, Land Law 2013 1.1.6. Decision on forest allocation together with land allocation, land leasing (from 2011 to date); S Articles 5, 9 and 11, Circular 07/2011/TTLTBNNPTNTBTNMT 1.1.7. Decision on forest allocation. S Section II, Circular 38/2007/TTBNN Indicator 1.2: Having legal status harvesting forest – one of the following documents is required: 1.2.1. Business registration certificate; S Articles 28 and 29, Enterprise Law 2014 1.2.2. Investment registration certificate (for foreign investors or enterprise in which 51 % of charter capital is held by foreign investors); S Article 36, Investment Law 2014 1.2.3. Business registration certificate (for enterprise operating in industry parks, export processing zones); S Article 39, Decree 108/2006/NDCP; Article 13, Investment Law 2005; Article 74, Investment Law 2014 Indicator 1.3: Having approved Sustainable Forest Management Plan – the following document is required: 1.3.1. Decision on approving Sustainable Forest Management Plan. S Article 11, Circular No. 38/2014/TTBNNPTNT Indicator 1.4: Compliance with regulations on archiving harvesting documents – all the following documents are required: 1.4.1. Harvesting design statement; S Article 22, Circular No. 87/2009/TTBNNPTNT 1.4.2. Map of harvesting area; S Article 21, Circular No. 87/2009/TTBNNPTNT 1.4.3. List of tree marked for harvesting; S Article 14, Circular No. 87/2009/TTBNNPTNT 1.4.4. Minutes on appraising harvesting design in the field; S Article 24, Circular No. 87/2009/TTBNNPTNT 1.4.5. Decision on approving harvesting design; S Article 25, Circular No. 87/2009/TTBNNPTNT 1.4.6. Harvesting permit; S Article 4, Circular No. 21/2016/TTBNNPTNT 1.4.7. Minutes of acceptance of harvested timber. D Article 4, Circular No. 21/2016/TTBNNPTNT Indicator 1.5: For round timber with a large end diameter of ≥ 25cm and length of ≥ 1m and timber sawn or squared in the forest with a length of ≥ 1m, thickness of ≥ 5cm and width of ≥ 20cm, forest hammer marks must be placed on the timber products – the following documents are required: 1.5.1. Minutes of placing forest hammer marks; D Articles 7 and 8, Decision 44/2006/QDBNN; Article 9, Circular 01/2012/TTBNNPTNT 1.5.2. Packing list. D Articles 7 and 8, Decision 44/2006/QDBNN; Article 9, Circular 01/2012/TTBNNPTNT Indicator 1.6: Timber harvested not subject to forest hammer marking as required in Indicator 1.5 – the following document is required: 1.6.1. Packing list of timber. D Articles 7 and 8, Decision 44/2006/QDBNN; Article 9, Circular 01/2012/TTBNNPTNT Indicator 1.7: Harvesting forest complies with regulations on environmental protection – one of the following documents is required: 1.7.1. Decision on approving environmental impact assessment report for projects harvesting in natural production forest involving clearcut harvesting in concentration area at least 50 ha in size; S Article 12, Decree 18/2015/NDCP 1.7.2. Environmental protection plan for projects harvesting in natural production forest involving clearcut harvesting in concentration area less than 50 ha in size. S Article 18, Decree 18/2015/NDCP Criterion 2: Compliance with regulations on main harvesting, salvage harvesting and salvage collection from planted protection forests Indicator 2.1: Compliance with legal regulations on land use right and forest use right – one of the following documents is required: 2.1.1. Decision on land allocation (prior to 15/10/1993); S No specific legislation prior to 1993 on land allocation 2.1.2. Decision on forest allocation (from 15/10/1993 to 1/7/2004); S Articles 5, 13 and 14, Decree No. 02. CP; Articles 9, 12 and 17, Decree No. 163/1999/NDCP 2.1.3. Land use right certificate (from 15/10/1993 to date); S Articles 48, 49 and 51, Land Law 2003; Article 102, Land Law 2013 2.1.4. Decision on land allocation (from 15/10/1993 to date); S Articles 32, 33, 34 and 35, Land Law 2003; Articles 53, 54 and 55, Land Law 2013 2.1.5. Decision on land leasing (from 15/10/1993 to date); S Article 35, Land Law 2003; Article 56, Land Law 2013 2.1.6. Decision on forest allocation together with land allocation, land leasing (from 2011 to date); S Articles 5, 9 and 11, Circular 07/2011/TTLTBNNPTNTBTNMT 2.1.7. Decision on forest allocation; S Section II Circular No. 38/2007/TTBNN Indicator 2.2: Having legal status for harvesting forest – one of the following documents is required: 2.2.1. Business registration certificate; S Articles 28 and 29, Enterprise Law 2014 2.2.2. Investment registration certificate (for foreign investors or enterprises in which 51 % of charter capital is held by foreign investors); S Article 36, Investment Law 2014 2.2.3. Business registration certificate (for enterprise operating in industry parks, export processing zones). S Article 39, Decree 108/2006/NDCP; Article 13, Investment Law 2005, Article 74, Investment Law 2014 Indicator 2.3: Harvesting forest complies with regulations on environmental protection – one of the following documents is required: 2.3.1. Decision on approving environmental impact assessment report for projects on clearcut harvesting for concentrated harvesting area of 200ha or more; S Article 12, Decree No. 18/2015/NDCP 2.3.2. Environmental protection plan for projects on clearcut harvesting for concentrated harvesting area less than 200ha. S Article 18, Decree No. 18/2015/NDCP Indicator 2.4: Compliance with regulations on archiving harvesting documents – all the following documents are required: 2.4.1. Harvesting design statement; S Article 6, Circular No. 21/2016/TTBNNPTNT; Article 9, Circular 01/2012/TTBNNPTNT 2.4.2. Map of harvesting area; S Article 6, Circular No. 21/2016/TTBNNPTNT; Article 9, Circular 01/2012/TTBNNPTNT 2.4.3. Harvesting permit. S Article 6, Circular No. 21/2016/TTBNNPTNT; Article 9, Circular 01/2012/TTBNNPTNT Indicator 2.5:For round timber with a large end diameter of ≥ 25cm and length of ≥ 1m and timber sawn or squared in the forest with a length of ≥ 1m, thickness of ≥ 5cm and width of ≥ 20cm from rare, precious and endangered timber species forest hammer marks must be placed in compliance with regulations – the following documents are required: 2.5.1. Minutes on placing forest hammer marks; D Articles 7 and 8, Decision No 44/2006/QDBNN; Article 9, Circular No. 01/2012/TTBNNPTNT 2.5.2. Packing list. D Articles 7 and 8, Decision No 44/2006/QDBNN; Article 9, Circular No. 01/2012/TTBNNPTNT Indicator 2.6: Timber harvested not subject to forest hammer marks as required in Indicator 2.5 – the following document is required: 2.6.1. Packing list. D Articles 7 and 8, Decision No.44/2006/QDBNN; Article 9, Circular No. 01/2012/TTBNNPTNT Criterion 3: Compliance with regulations on main harvesting, salvage harvesting and salvage collection from planted production forests Indicator 3.1: Compliance with legal regulations on land use right and forest use right – one of the following documents is required: 3.1.1. Decision on land allocation (prior to 15/10/1993); S No specific legislation prior to 1993 on land allocation 3.1.2. Land use right certificate (from 15/10/1993 to date); S Articles 48, 49 and 51, Land Law 2003; Article 102, Land Law 2013 3.1.3. Decision on land allocation (from 15/10/1993 to date); S Articles 32, 33 and 34, Land Law 2003; Articles 53, 54 and 55, Land Law 2013 3.1.4. Decision on land leasing (from 15/10/1993 to date); S Article 35, Land Law 2003; Article 56, Land Law 2013 3.1.5. Decision on land allocation, forest allocation (from 15/10/1993 to 1/7/2004); S Articles 5, 13 and 14, Decree No. 02. CP; Articles 9, 12 and 17, Decree No. 163/1999/NDCP 3.1.6. Decision on land allocation, land leasing (from 2011 to date). S Articles 5, 9 and 11, Circular 07/2011/TTLTBNNPTNTBTNMT Indicator 3.2: Having legal status for harvesting forest – one of the following documents is required: 3.2.1. Business registration certificate; S Articles 28 and 29, Enterprise Law 2014 3.2.2. Investment registration certificate (for foreign investors or enterprises in which 51 % of charter capital is held by foreign investors); S Article 36, Investment Law 2014 3.2.3. Business registration certificate (for enterprise operating in industry parks, export processing zones). S Article 39, Decree 108/2006/NDCP; Article 13, Investment Law 2005, Article 74, Investment Law 2014 Indicator 3.3: Harvesting forest complies with legal regulations on environmental protection – one of the following documents is required: 3.3.1. Decision on approving environmental impact assessment report for projects on clearcut harvesting for concentrated harvesting area of 200ha or more; S Article 12, Decree No. 18/2015/NDCP 3.3.2. Environmental protection plan for projects on clearcut harvesting for concentrated harvesting area less than 200ha. S Article 18, Decree No. 18/2015/NDCP Indicator 3.4: Compliance with regulations on archiving harvesting documents – the following document is required: 3.4.1. Report on harvesting location and volume of harvested timber products. S Article 6(1b), Circular No. 21/2016/TTBNNPTN; Article 9, Circular No. 01/2012/TTBNNPTNT Indicator 3.5: For round timber with a large end diameter of ≥ 25cm and length of ≥ 1m and timber sawn or squared in the forest with a length of ≥ 1m, thickness of ≥ 5cm and width of ≥ 20cm from rare, precious and endangered timber species forest hammer marks must be placed in compliance with regulations – the following documents are required: 3.5.1. Minutes of placing forest hammer marks; D Articles 7 and 8, Decision No. 44/2006/QDBNN; Article 9, Circular No. 01/2012/TTBNNPTNT 3.5.2. Packing list. D Articles 7 and 8, Decision No. 44/2006/QDBNN; Article 9, Circular No. 01/2012/TTBNNPTNT Indicator 3.6: Timber harvested not subject to forest hammer marks as required in Indicator 3.5 – the following document is required: 3.6.1. Packing list. D Articles 7 and 8, Decision No.44/2006/QDBNN; Article 9, Circular No. 01/2012/TTBNNPTNT Criterion 4: Compliance with regulations on salvage harvesting of natural forested areas converted from forest land use to other land uses. Indicator 4.1: Compliance with legal regulations on changing land use from forest use into other uses, environmental protection, site clearance – all the following documents are required: 4.1.1. Decision on approving Measure on compensation for site clearance, including maps of converted forest area, status of converted forest; S Article 29 Decree 23/2006/NDCP; Article 8 Circular 21/2016/TTBNNPTNT 4.1.2. Decision on allowing forest land conversion to other land uses; S Article 3, Resolution 49; Article 29, Decree 23/2006/NDCP 4.1.3. Decision on approving environmental assessment report or environmental protection plan 4.1.3.1 Decision on approving environmental assessment report for projects that change purposes for forest utility: 5ha or more for protection forests, special use forests; 10ha or more for natural forests; 50ha or more for other types of forests; S Article 29, Decree 23/2006/NDCP; Article 12, Decree No. 18/2015/NDCP 4.1.3.2 Environmental protection plan for projects that change the purpose of land use of an area from forest use into other uses, for areas less than those specified in 4.1.3. S Article 18, Decree No. 18/2015/NDCP Indicator 4.2: Having legal status for harvesting forest – one of the following documents is required: 4.2.1. Business registration certificate; S Articles 28 and 29, Enterprises Law 2014 4.2.2. Investment registration certificate (for foreign investors or enterprises in which 51 % of charter capital is held by foreign investors); S Article 36, Investment Law 2014 4.2.3. Business registration certificate (for enterprise operating in industry parks, export processing zones). S Article 39, Decree 108/2006/NDCP; Article 13, Investment Law 2005, Article 74, Investment Law 2014 Indicator 4.3: Compliance with regulations on archiving harvesting documents – the following document is required: 4.3.1. List of anticipated timber to be harvested. S Article 8, Circular No. 21/2016/TTBNNPTNT Indicator 4.4: For round timber with a large end diameter of ≥ 25cm and length of ≥ 1m and timber sawn or squared in the forest with a length of ≥ 1m, thickness of ≥ 5cm and width of ≥ 20cm, harvested in natural forests; and for round timber with a large end diameter of ≥ 25cm and length of ≥ 1m and timber sawn or squared in the forest with a length of ≥ 1m, thickness of ≥ 5cm and width of ≥ 20cm from rare, precious and endangered timber species harvested in plantation forests forest hammer marks must be placed in compliance with regulations – the following documents are required: 4.4.1. Minutes of placing forest hammer marks; D Articles 7 and 8, Decision 44/2006/QDBNN; Article 9, Circular 01/2012/TTBNNPTNT 4.4.2. Packing list. D Articles 7 and 8, Decision 44/2006/QDBNN; Article 9, Circular 01/2012/TTBNNPTNT Indicator 4.5: Timber harvested not subject to forest hammer marks as required in Indicator 4.4 – the following document is required: 4.5.1. Packing list. D Articles 7 and 8 Decision 44/2006/QDBNN; Article 9, Circular 01/2012/TTBNNPTNT Criterion 5: Compliance with regulations on salvage harvesting of natural forest while implementing silvicultural measures scientific research and training Indicator 5.1: Compliance with legal regulations on land use right and forest use right – one of the following documents is required: 5.1.1. Decision on land allocation (prior to 15/10/1993); S No specific legislation prior to 1993 on land allocation 5.1.2. Decision on land allocation, forest allocation (from 15/10/1993 to 1/7/2004); S Articles 5, 13 and 14, Decree No. 02. CP; Articles 9, 12 and 17, Decree No. 163/1999/NDCP 5.1.3. Land use right certificate (from 15/10/1993 to date); S Articles 48, 49 and 51, Land Law 2003; Article 102, Land Law 2013 5.1.4. Decision on land allocation (from 15/10/1993 to date); S Articles 32, 33, 34 and 35, Land Law 2003; Articles 53, 54 and 55, Land Law 2013 5.1.5. Decision on land leasing (from 15/10/1993 to date); S Article 35, Land Law 2003; Article 56, Land Law 2013 5.1.6. Decision on forest allocation together with land allocation, land leasing (from 2011 to date); S Articles 5, 9 and 11, Circular 07/2011/TTLTBNNPTNTBTNMT 5.1.7. Decision on forest allocation. S Section II Circular No. 38/2007/TTBNN Indicator 5.2: Having legal status for harvesting forest – one of the following documents is required: 5.2.1. Business registration certificate; S Articles 28 and 29, Enterprise Law 2014 5.2.2. Investment registration certificate (for foreign investors or enterprises in which 51 % of charter capital is held by foreign investors); S Article 36, Investment Law 2014 5.2.3. Business registration certificate (for enterprise operating in industry parks, export processing zones). S Article 39, Decree 108/2006/NDCP; Article 13, Investment Law 2005, Article 74, Investment Law 2014 Indicator 5.3: Compliance with legal regulations prior to be permitted for salvage harvesting – one of the following documents is required: 5.3.1. Silviculture project; S Article 8, Circular No. 21/2016/TTBNNPTNT 5.3.2. Training plan; S Article 8, Circular No. 21/2016/TTBNNPTNT 5.3.3. Scientific research proposal. S Article 8, Circular No. 21/2016/TTBNNPTNT Indicator 5.4: Compliance with regulations on archiving harvesting documents – the following document is required: 5.4.1. List of anticipated timber to be harvested. S Article 8, Circular No. 21/2016/TTBNNPTNT Indicator 5.5: For round timber with a large end diameter of ≥ 25cm and length of ≥ 1m and timber sawn or squared in the forest with a length of ≥ 1m, thickness of ≥ 5cm and width of ≥ 20cm, harvested in natural forests and for round timber with a large end diameter of ≥ 25cm and length of ≥ 1m and timber sawn or squared in the forest with a length of ≥ 1m, thickness of ≥ 5cm and width of ≥ 20cm from rare, precious and endangered timber species harvested in plantation forests forest hammer marks must be placed in compliance with regulations – the following documents are required: 5.5.1. Minutes of placing forest hammer marks; D Articles 7 and 8, Decision 44/2006/QDBNN; Article 9, Circular No. 01/2012/TTBNNPTNT 5.5.2. Packing list. D Articles 7 and 8, Decision 44/2006/QDBNN; Article 9, Circular 01/2012/TTBNNPTNT Indicator 5.6: Timber harvested not subject to forest hammer marks as required in Indicator 5.5 – the following document is required: 5.6.1. Packing list. D Articles 7 and 8, Decision 44/2006/QDBNN; Article 9, Circular 01/2012/TTBNNPTNT Criterion 6: Compliance with regulations on salvage collection of stump, roots, branches in natural forests Indicator 6.1: Compliance with legal regulations on land use right and forest use right – one of the following documents is required: 6.1.1. Decision on land allocation (prior to 15/10/1993); S No specific legislation prior to 1993 on land allocation 6.1.2. Decision on forest allocation (from 15/10/1993 to 1/7/2004); S Articles 5, 13 and 14, Decree No. 02. CP; Articles 9, 12 and 17, Decree No. 163/1999/NDCP 6.1.3. Land use right certificate (from 15/10/1993 to date); S Articles 48, 49 and 51, Land Law 2003; Article 102, Land Law 2013 6.1.4. Decision on land allocation (from 15/10/1993 to date); S Articles 32, 33 and 34, Land Law 2003; Articles 53, 54 and 55, Land Law 2013 6.1.5. Decision on land leasing (from 15/10/1993 to date); S Article 35, Land Law 2003; Article 56, Land Law 2013 6.1.6. Decision on forest allocation together with land allocation and land leasing (from 2011 to date); S Articles 5, 9 and 11, Circular 07/2011/ TTLTBNNPTNTBTNMT 6.1.7. Decision on forest allocation. S Section II Circular No. 38/2007/TTBNN Indicator 6.2: Having legal status for harvesting forest – one of the following documents is required: 6.2.1. Business registration certificate; S Articles 28 and 29, Enterprise Law 2014 6.2.2. Investment registration certificate (for foreign investors or enterprises in which 51 % of charter capital is held by foreign investors); S Article 36, Investment Law 2014 6.2.3. Business registration certificate (for enterprise operating in industry parks, export processing zones). S Article 39, Decree 108/2006/NDCP; Article 13, Investment Law 2005, Article 74, Investment Law 2014 Indicator 6.3: Compliance with regulations on archiving harvesting documents – the following document is required: 6.3.1. List of anticipated timber to be harvested. S Article 9, Circular No. 21/2016/TTBNNPTNT Indicator 6.4: For round timber with a large end diameter of ≥ 25cm and length of ≥ 1m and timber sawn or squared in the forest with a length of ≥ 1m, thickness of ≥ 5cm and width of ≥ 20cm forest hammer marks must be placed in compliance with regulations – the following documents are required: 6.4.1. Minutes of placing forest hammer marks; D Articles 7 and 8, Decision No. 44/2006/QDBNN 6.4.2. Packing list. D Articles 7 and 8, Decision 44/2006/QDBNN; Article 9, Circular 01/2012/TTBNNPTNT Indicator 6.5: Timber harvested not subject to forest hammer marks as required in Indicator 6.4 – the following document is required: 6.5.1. Packing list. D Articles 7 and 8, Decision 44/2006/QDBNN; Article 9, Circular 01/2012/TTBNNPTNT Criterion 7: Compliance with regulations on salvage collection of stump, roots, branches in plantation forests Indicator 7.1: Compliance with legal regulations on land use right and forest use right – one of the following documents is required: 7.1.1. Decision on land allocation (prior to 15/10/1993); S No specific legislation prior to 1993 on land allocation 7.1.2. Land use right certificate (from 15/10/1993 to date); S Articles 48, 49 and 51, Land Law 2003; Article 102, Land Law 2013 7.1.3. Decision on land allocation (from 15/10/1993 to date); S Articles 32, 33 and 34, Land Law 2003; Articles 53, 54 and 55, Land Law 2013 7.1.4. Decision on land leasing (from 15/10/1993 to date); S Article 35, Land Law 2003; Article 56, Land Law 2013 Indicator 7.2. Having legal status for harvesting forest – one of the following documents is required: 7.2.1. Business registration certificate; S Articles 28 and 29, Enterprise Law 2014 7.2.2. Investment registration certificate (for foreign investors or enterprises in which 51 % of charter capital is held by foreign investor); S Article 36, Investment Law 2014 7.2.3. Business registration certificate (for enterprise operating in industry parks, export processing zones). S Article 39, Decree 108/2006/NDCP; Article 13, Investment Law 2005, Article 74, Investment Law 2014 Indicator 7.3: Compliance with regulations on archiving harvesting documents – the following document is required: 7.3.1. Report on harvesting location and volume of harvested timber products. S Article 6, Circular No. 21/2016/TTBNNPTNT Indicator 7.4: For round timber with a large end diameter of ≥ 25cm and length of ≥ 1m and timber sawn or squared in the forest with a length of ≥ 1m, thickness of ≥ 5cm and width of ≥ 20cm from rare, precious and endangered timber species forest hammer marks must be placed in compliance with regulations – the following documents are required: 7.4.1. Minutes of placing forest hammer marks; D Articles 7 and 8, Decision No. 44/2006/QDBNN; Article 9, Circular 01/2012/TTBNNPTNT 7.4.2. Packing list. D Articles 7 and 8, Decision No. 44/2006/QDBNN; Article 9, Circular 01/2012/TTBNNPTNT Indicator 7.5: Timber not subject to forest hammer marks as required in Indicator 7.4 – the following document is required: 7.5.1 Packing list. D Articles 7 and 8, Decision No. 44/2006/QDBNN; Article 9, Circular 01/2012/TTBNNPTNT Criterion 8: Compliance with regulations on harvesting rubber wood Indicator 8.1: Compliance with legal regulations on land use right and forest use right – one of the following documents is required: 8.1.1. Decision on land allocation (prior to 15/10/1993); S No specific legislation prior to 1993 on land allocation 8.1.2. Land use right certificate (from 15/10/1993 to date); S Articles 48, 49 and 51, Land Law 2003; Article 102, Land Law 2013 8.1.3. Decision on land allocation (from 15/10/1993 to date); S Articles 32, 33 and 34, Land Law 2003; Articles 53, 54 and 55, Land Law 2013 8.1.4. Decision on land leasing (from 15/10/1993 to date); S Article 35, Land Law 2003; Article 56, Land Law 2013 8.1.5. Decision on land allocation (from 15/10/1993 to 1/7/2004); S Articles 5, 13 and 14, Decree No. 02. CP; Articles 9, 12 and 17, Decree No. 163/1999/NDCP 8.1.6. Decision on land allocation, land leasing (from 2011 to date); S Articles 5, 9 and 11, Circular 07/2011/TTLTBNNPTNTBTNMT Indicator 8.2: Having legal status for harvesting forest – one of the following documents is required: 8.2.1. Business registration certificate; S Articles 28 and 29, Enterprise Law 2014 8.2.2. Investment registration certificate (for foreign investors or enterprises in which 51 % of charter capital is held by foreign investors); S Article 36, Investment Law 2014 8.2.3. Business registration certificate (for enterprise operating in industry parks, export processing zones). S Article 39, Decree 108/2006/NDCP; Article 13, Investment Law 2005, Article 74, Investment Law 2014 Indicator 8.3: Compliance with regulations on archiving harvesting documents – the following documents are required: 8.3.1. Report on harvesting location and volume of harvested timber products; D Article 7, Circular 21/2016/TTBNNPTNT 8.3.2. Packing list. D Article 5, Circular 01/2012/TTBNNPTNT; Article 1, Circular 40/2012/TTBNNPTNT PRINCIPLE II: COMPLIANCE WITH REGULATIONS ON HANDLING CONFISCATED TIMBER (ORGANISATIONS) Principle

Criterion

Indicators Verifiers Type of verifier

S=static

D=dynamic Legal references for verifiers Criterion 1. Compliance with regulation on archiving documents of handled confiscated timber Indicator 1.1: Compliance with regulations on handled confiscated timber – the following documents are required: 1.1.1. Sales contract / contract on purchase and sale of property put up for auction; S Article 35, Decree 17/2010/NDCP 1.1.2. Certificates of ownership or use right of auctioned property; S Article 46, Decree 17/2010/NDCP 1.1.3. Invoice as required by the Ministry of Finance; D Article 16, Circular No. 01/2012/TTBNNPTNT; Article 1, Circular 40/2015/TTBNNPTNT 1.1.4. Packing list. D Article 16, Circular No. 01/2012/TTBNNPTNT Indicator 1.2: For round timber with a large end diameter of ≥ 25cm and length of ≥ 1m and timber sawn or squared in the forest with a length of ≥ 1m, thickness of ≥ 5cm and width of ≥ 20cm forest hammer marks must be placed on the timber products – the following document is required: 1.2.1. Minutes of placing forest hammer marks. D Articles 7 and 8, Decision No.44/2006/QDBNN, Article 1, Decision 107/2007/QDBNN PRINCIPLE III: COMPLIANCE WITH REGULATIONS ON IMPORTING TIMBER (ORGANISATIONS) Principle

Criterion

Indicators Verifiers Type of verifier

S=static

D=dynamic Legal references for verifiers Criterion 1: Compliance with regulations on customs procedures Indicator 1.1: Compliance with legal regulations on custom procedures – the following documents are required: 1.1.1. Declaration for imported timber products; D Article 24, Customs Law 2014; Article 25, Decree 08/2015/NDCP; Article 10, Circular 01/2012/TTBNNPTNT; Article 16, Circular 38/2015/TTBTC 1.1.2. Sales contract or equivalent; D to be issued by VN Government 1.1.3. Trading invoice in the case of commercial transaction; D Article 16, Circular 38/2015/TTBTC 1.1.4. Bill of lading (or other shipping document of equivalent value in accordance with legal regulations); D Article 16, Circular 38/2015/TTBTC 1.1.5. Packing list of imported forest products. D Article 10, Circular 01/2012/BNNPTNT 1.1.6. Depending on timber sources of imported timber, one of the following verifiers is required: 1.1.6.1. CITES permit of export country in the case of timber under Appendices I, II and III to CITES; D Decree 82/2006/NDCP; Article 5, Decree 98/2011/NDCP; Circular 04/2015/TTBNNPTNT 1.1.6.2. FLEGT licence; D to be issued by VN Government 1.1.6.3. A selfdeclaration demonstrating due diligence on the legality of timber. D to be issued by VN Government 1.1.7. Depending on the risk category (as specified in Table 2 of Annex V), one of the following verifiers shall be attached to a selfdeclaration: 1.1.7.1. Voluntary certification or national certification schemes recognised by VNTLAS; D to be issued by VN Government 1.1.7.2. Legal harvesting document in line with law and regulations of country of harvest (HS 4403, 4406, 4407); D to be issued by VN Government 1.1.7.3. Alternative additional documentation demonstrating legality of timber in accordance with legislation of country of harvest (where the harvesting document is not required in the country of harvest for primary products, or importers cannot obtain harvesting document for complex products). D to be issued by VN Government Criterion 2: Compliance with regulations on plant quarantine and forest hammer mark Indicator 2.1: Compliance with regulations on plant quarantine for timber and timber products – the following document is required: 2.1.1. Plant quarantine certificate for round timber, sawn timber, pallet, sawdust. D Article 1, Circular No. 30/2014/TTBNNPTNT; Article 7, Circular 33/2014/TTBNNPTNT Indicator 2.2: Round timber with a large end diameter of ≥ 25cm and length of ≥ 1m must be marked with hammer marks or other special signs of exporting countries; otherwise, forest hammer marks must be placed in accordance with regulations – the following documents are required: 2.2.1.Minutes of placing forest hammer marks; D Articles 7 and 8, Decision No. 44/2006/QDBNN 2.2.2. Packing list. D Articles 7 and 8, Decision No. 44/2006/QDBNN PRINCIPLE IV: COMPLIANCE WITH REGULATIONS ON TIMBER TRANSPORTATION AND TRADE (ORGANISATIONS) Principle

Criterion

Indicators Verifiers Type of verifier

S=static

D=dynamic Legal references for verifiers Criterion 1. Compliance with regulations on enterprises establishment Indicator 1.1: Obtained legal status – one of the following documents is required: 1.1.1. Business registration certificate; S Articles 28 and 29, Enterprise Law 2014 1.1.2. Investment registration certificate (for foreign investors or enterprises in which 51 % of charter capital is held by foreign investors); S Article 36, Investment Law 2014 1.1.3. Business registration certificate (for enterprise operating in industry parks, export processing zones). S Article 39, Decree 108/2006/NDCP; Article 13, Investment Law 2005, Article 74, Investment Law 2014 Criterion 2. Compliance with regulations on transporting, trading unprocessed timber from main harvesting, salvaged harvesting and salvaged collection from domestic natural forests Indicator 2.1: Compliance with regulations on legal timber product dossier – the following documents are required: 2.1.1. Invoice as required by the Ministry of Finance (if purchasing timber from organisations); D Article 12, Circular 01/2012/TTBNNPTNT; Article 1, Circular 40/2015/TTBNNPTNT 2.1.2. Packing list. D Article 12, Circular 01/2012/TTBNNPTNT Indicator 2.2: For round timber with a large end diameter of ≥ 25cm and length of ≥ 1m and timber sawn or squared in the forest with a length of ≥ 1m, thickness of ≥ 5cm and width of ≥ 20cm forest hammer marks must be placed – the following documents are required: 2.2.1. Minutes of placing forest hammer marks; D Articles 7 and 8, Decision No.44/2006/QDBNN 2.2.2. Packing list. D Articles 7 and 8, Decision No.44/2006/QDBNN Criteria 3. Compliance with regulations on transporting, trading unprocessed timber harvested from concentrated plantation forests, home gardens, farms, scattered trees Indicator 3.1: Compliance with regulations on legal timber product dossier – the following documents are required: 3.1.1. Invoice as required by the Ministry of Finance (if purchasing timber from organisations); D Article 13, Circular No.01/2012/TTBNNPTNT; Article 1, Circular 40/2015/TTBNNPTNT 3.1.2. Packing list. D Article 13, Circular No.01/2012/TTBNNPTNT Indicator 3.2: For timber from rare, precious and endangered timber species harvested in plantation forests, and round timber with a large end diameter of ≥ 25cm and length of ≥ 1m and timber sawn or squared in the forest with a length of ≥ 1m, thickness of ≥ 5cm and width of ≥ 20cm, forest hammer marks must be placed, the following documents are required: 3.2.1. Minutes of placing forest hammer marks; D Articles 7 and 8, Decision No.44/2006/QDBNN 3.2.2. Packing list. D Article 13, Circular No.01/2012/TTBNNPTNT Criteria 4. Compliance with regulations on transporting, trading imported timber and timber products that are not domestically processed Indicator 4.1: Compliance with regulations on legal timber product dossier – the following documents are required: 4.1.1. Invoice as required by Ministry of Finance; D Article 14, Circular No.01/2012/TTBNNPTNT; Article 1, Circular 40/2015/TTBNNPTNT 4.1.2. Packing list. D Article 14, Circular No.01/2012/TTBNNPTNT Indicator 4.2: Imported round timber with diameter of large end of >= 25cm and length >= 1m if there is no hammer mark or special signs of exporting countries, it must be placed with forest hammer marks – the following documents are required: 4.2.1. Minutes on placing forest hammer marks; D Articles 7 and 8, Decision No.44/2006/QDBNN 4.2.2. Packing list. D Articles 7 and 8, Decision No.44/2006/QDBNN Criteria 5. Compliance with regulations on transporting and trading unprocessed confiscated timber and timber products that have been handled Indicator 5.1: Compliance with regulations on legal timber product dossier – the following documents are required: 5.1.1. Invoice as required by Ministry of Finance (if purchasing timber from organisations); D Article 16, Circular No.01/2012/TTBNNPTNT; Article 1, Circular 40/2015/TTBNNPTNT 5.1.2. Packing list. D Article 16, Circular No.01/2012/TTBNNPTNT Indicator 5.2: For round timber with a large end diameter of ≥ 25cm and length of ≥ 1m and timber sawn or squared in the forest with a length of ≥ 1m, thickness of ≥ 5cm and width of ≥ 20cm forest hammer marks must be placed – the following documents are required: 5.2.1. Minutes on placing forest hammer marks; D Articles 7 and 8, Decision No.44/2006/QDBNN 5.2.2. Packing list. D Articles 7 and 8, Decision No.44/2006/QDBNN Criteria 6. Compliance with regulations on transporting and trading of processed timber and timber products (including round timber crosscutting) from natural timber, imported timber and handled confiscated timber Indicator 6.1: Compliance with regulations on legal timber product dossier – the following documents are required: 6.1.1 Invoice as required by Ministry of Finance (if purchasing timber from Organisations); D Article 17, Circular No.01/2012/TTBNNPTNT; Article 1, Circular 40/2015/TTBNNPTNT 6.1.2. Packing list. D Articles 17 and 26, Circular No.01/2012/TTBNNPTNT Indicator 6.2: Round timber with a large end diameter ≥ 25 cm and length ≥ 1m must be marked with forest hammer marks – the following documents are required: 6.2.1. Minutes on placing forest hammer marks made; D Articles 7 and 8, Decision No44/2006/QDBNN 6.2.2. Packing list. D Articles 7 and 8, Decision No44/2006/QDBNN Criteria 7. Compliance with regulations on transporting and trading of processed timber and timber products (including round timber crosscutting) from concentrated plantation forests, home gardens, scattered trees Indicator 7.1: Compliance with regulations on legal timber product dossier – the following documents are required: 7.1.1. Invoice as required by Ministry of Finance (if purchasing timber from Organisations); D Article 17, Circular No.01/2012/TTBNNPTNT; Article 1, Circular 40/2015/TTBNNPTNT 7.1.2. Packing list. D Article 17, Circular No.01/2012/TTBNNPTNT Indicator 7.2: Round timber with a large end diameter ≥ 25 cm and length ≥ 1m must be marked with forest hammer marks – the following documents are required: 7.2.1. Minutes on placing forest hammer marks; D Articles 7 and 8, Decision No44/2006/QDBNN 7.2.2. Packing list. D Articles 7 and 8, Decision No44/2006/QDBNN Criteria 8. Compliance with regulations on internal transportation of timber and timber products within a province Indicator 8.1: Compliance with regulations on legal timber product dossier – the following documents are required: 8.1.1.Internal delivery bill; D Article 18, Circular No.01/2012/TTBNNPTNT 8.1.2. Packing list. D Article 18, Circular No.01/2012/TTBNNPTNT Indicator 8.2: For round timber with a large end diameter of ≥ 25cm and length of ≥ 1m and timber sawn or squared in the forest with a length of ≥ 1m, thickness of ≥ 5cm and width of ≥ 20cm, harvested in natural forests and for round timber with a large end diameter of ≥ 25cm and length of ≥ 1m and timber sawn or squared in the forest with a length of ≥ 1m, thickness of ≥ 5cm and width of ≥ 20cm from rare, precious and endangered timber species harvested in plantation forests, forest hammer marks must be placed in compliance with regulations – the following documents are required: 8.2.1. Minutes on placing forest hammer marks; D Articles 7 and 8, Decision 44/2006/QDBNN; Article 9 Circular 01/2012/TTBNNPTNT 8.2.2.Packing list. D Articles 7 and 8, Decision 44/2006/QDBNN; Articles 7 and 9, Circular 01/2012/TTBNNPTNT Criteria 9. Compliance with regulations on internal transportation of timber and timber products between provinces Indicator 9.1: Compliance with regulations on legal timber product dossier – the following documents are required: 9.1.1. Internal delivery bill; D Article 18, Circular No.01/2012/TTBNNPTNT 9.1.2. Packing list. D Article 18, Circular No.01/2012/TTBNNPTNT Indicator 9.2: For round timber with a large end diameter of ≥ 25cm and length of ≥ 1m and timber sawn or squared in the forest with a length of ≥ 1m, thickness of ≥ 5cm and width of ≥ 20cm, harvested in natural forests, and for round timber with a large end diameter of ≥ 25cm and length of ≥ 1m and timber sawn or squared in the forest with a length of ≥ 1m, thickness of ≥ 5cm and width of ≥ 20cm from rare, precious and endangered timber species harvested in plantation forests, forest hammer marks must be placed in compliance with regulations – the following documents are required: 9.2.1. Minutes on placing forest hammer marks; D Articles 7 and 8, Decision No44/2006/QDBNN; Articles 9, Circular No. 01/2012/TTBNNPTNT 9.2.2. Packing list. D Articles 7 and 9, Circular No. 01/2012/TTBNNPTNT Criterion 10. Compliance with regulations on timber product dossier for verification for export Indicator 10.1: Compliance with regulations on legal timber product dossier for verification for export – the following documents are required: 10.1.1. Sales contract or equivalent; D to be issued by VN Government 10.1.2 Invoice as required by Ministry of Finance; D Article 2, Circular 40/2015/TTBNNPTNT 10.1.3. Packing list of forest products for export; D Article 5, Circular 01/2012/TTBNNPTNT 10.1.4. One or more additional documents subject to specific stages of the supply chain of different timber sources (e.g. minutes of placing forest hammer marks) providing evidence of timber legality for such shipment. D Articles 7 and 8, Decision 44/2006/QDBNN PRINCIPLE V: COMPLIANCE WITH REGULATIONS ON TIMBER PROCESSING (ORGANISATIONS) Principle

Criterion

Indicators Verifiers Type of verifier

S=static

D=dynamic Legal references for verifiers Criterion 1: Compliance with regulations on enterprises establishment Indicator 1.1: Having legal status – one of the following documents is required: 1.1.1. Business registration certificate; S Article 28, Article 29 Enterprise Law 2014 1.1.2. Investment registration certificate (for foreign investors or enterprises in which 51 % of charter capital is held by foreign investors); S Article 36, Investment Law 2014 1.1.3. Investment registration certificate (for enterprise operating in industry parks, export processing zones). S Article 39, Decree 108/2006/NDCP; Article 13, Investment Law 2005, Article 74, Investment Law 2014 Indicator 1.2: Processing of timber complies with regulations on environmental protection – one of the following documents is required: 1.2.1.Decision on approving environmental impact assessment report for processing facilities of timber and woodchips from natural forests with capacity of 3,000 m3 product/year or more; S Article 12, Decree No. 18/2015/NDCP 1.2.2. Decision on approving environmental impact assessment report for plywood processing facilities with capacity of 100,000 m3 product/year or more; S Article 12, Decree No. 18/2015/NDCP 1.2.3. Decision on approving the environmental impact assessment report for furnitureproducing facilities with total area of warehouses, factories of 10,000 m2 or more; S Article 12, Decree No. 18/2015/NDCP 1.2.4. Environmental protection plan by processing facilities for timber, plywood, particle board which are not subject to environmental impact assessment as regulated in Verifiers 1.2.1, 1.2.2 and 1.2.3 above. S Article 18, Decree No. 18/2015/NDCP Indicator 1.3: Compliance with regulations on fire prevention and firefighting – the following document is required: 1.3.1. Approved design on fire prevention and firefighting. S Article 15 and Annex 4, Decree 79/2014/NDCP Indicator 1.4: Compliance with regulation on making monitoring entry and exit books – the following document is required: 1.4.1. Monitoring entry and exit books. S Article 20, Circular 01/2012/TTBNNPTNT Criterion 2: Compliance with regulations on the legal origin of timber which are going to be processed Indicator 2.1: Compliance with regulation on legal timber dossier for timber selfharvested from organisation’s forests – the following document is required: 2.1.1. Packing list. D Article 20, Circular No 01/2012/TTBNNPTNT Indicator 2.2: Compliance with regulation on legal timber dossier for timber purchased from organisations – the following documents are required: 2.2.1. Invoice as required by the Ministry of Finance; D Article 20, Circular No 01/2012/TTBNNPTNT; Article 1, Circular 40/2015/TTBNNPTNT 2.2.2. Packing list. D Article 20, Circular No 01/2012/TTBNNPTNT Indicator 2.3: Compliance with regulation on legal timber dossier for timber purchased from households – the following document is required: 2.3.1. Packing list. D Article 20, Circular 01/2012/TTBNNPTNT Indicator 2.4: For round timber with a large end diameter ≥ 25cm and length of ≥ 1m harvested in natural forests and timber from rare, precious and endangered timber species harvested from plantation forests, imported timber without hammer marks or special signs of the exporting countries, and handled confiscated timber, forest hammer marks must be placed in compliance with regulations – the following documents are required: 2.4.1. Minutes of placing forest hammer marks; D Articles 7 and 8, Decision No. 44/2006/QDBNN; Article 9, Circular No 01/2012/TTBNNPTNT 2.4.2. Packing list. D Articles 7 and 8, Decision No. 44/2006/QDBNN; Article 9, Circular No 01/2012/TTBNNPTNT Indicator 2.5: For timber sawn or squared in forests and confiscated timber sawn which was handled but not further processed, having length of ≥ 1m, thickness of ≥ 5cm, width of ≥ 20 cm harvested in natural forests and timber from rare, precious and endangered timber species harvested from plantation forests forest hammer marks must be placed in compliance with regulations – the following documents are required: 2.5.1. Minutes of placing forest hammer marks; D Articles 7 and 8, Decision 44/2006/QDBNN; Article 9, Circular 01/2012/TTBNNPTNT; Article 1, Decision 107/2007/QDBNN 2.5.2. Packing list. D Articles 7 and 8, Decision 44/2006/QDBNN; Article 9, Circular 01/2012/TTBNNPTNT; Article 1, Decision 107/2007/QDBNN PRINCIPLE VI: COMPLIANCE WITH REGULATIONS ON CUSTOMS PROCEDURES FOR EXPORT (ORGANISATIONS) Principle

Criterion

Indicators Verifiers Type of verifier

S=static

D=dynamic Legal references for verifiers Criterion 1: Compliance with regulations on customs procedures Indicator 1.1: Compliance with regulations on legal export dossier – the following documents are required: 1.1.1. Customs clearance declaration for export timber products according to the applicable regulation (original); D Article 24, Law on Customs 2014, Article 25, Decree 08/2015/NDCP, Article 16, Circular 38/2015/TTBTC 1.1.2. Sale contract or equivalent; D to be issued by VN Government 1.1.3 Invoice as required by Ministry of Finance; D to be issued by VN Government 1.1.4. Packing list of forest products for export; D Article 5, Circular 01/2012/TTBNNPTNT 1.1.5. Permit of CITES MA of Viet Nam for products made from timber under Appendix II to CITES; D Article 8, Circular 04/2015/TTBNNPTNT, Article 16, Circular 38/2015/TTBTC 1.1.6. FLEGT licence for EU market. D to be issued by VN Government Criterion 2: Compliance with regulations on plant quarantine Indicator 2.1: Compliance with regulations on plant quarantine for timber and timber products – the following document is required: 2.1.1 Quarantine