13. vietnam country update
23
VPA/FLEGT Negotiation Process between Viet Nam and EU
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Transcript of 13. vietnam country update
VPA/FLEGT Negotiation Process between Viet Nam and EU
Contents
1. Negotiation background: rationales, negotiation contents, organizational structure of FLEGT/VPA negotiation of Viet Nam;
2. Results of negotiation;
3. Future roadmap;
4. Additional support needed for Vietnam during VPA/FLEGT implementation stage.
Rationales• For commercial purpose: Maintain and expand export
markets as: EU, the US, Australia, Canada, Japan;
• Encouraging responsible business, increasing
competitive capacity for VN timber processing
enterprises for the reason that they are verified and
issued FLEGT license by Vietnamese agencies so due
diligence under the 995 regulation is not necessary;
• For the implementation of deep international integration
policy: Improve institution, legislation, procedures,
standards in compliance with international regulations;
• Promoting sustainable forest management and combat
climate change
Negotiation contents
1. List of products under VPA
2. Timber legality definition
3. Supply chain controls
4. Timber legality assurance system (TLAS)
5. FLELGT licensing
6. Independent monitoring
STERRING COMMITTEE (SOM)MARD Vice Minister (head)
(MOFA, MOJ, MOIT, MOF/Customs, Timber Association)
NEGOTIATION TEAM (TWG)(MARD, MOFA, MOJ, MOIT, MOF/Customs)
Working Group on timber legality
definition
Working group on timber
legality assurance system
(TLAS)
Standing Office
Working group on VPA text
Organizational structure of FLEGT/VPA negotiation of
Viet Nam
Stakehol-der
consulta-tion(P/S, CSO)
Results of negotiation
• Two sides held 22 video conferences (VC), 7 technical meetings (JEM) and 3 high level negotiation rounds (TWG);
• Majority of technical annexes have been negotiated. Annexes 1, 2, 3, 4, 5, 8 and 9 have been basically agreed.
• VN has sent VPA text to EU for consideration
Results of negotiation
TWG 1, 11/2010SOM 1, 5/ 2010
TWG 3, 11/2012TWG 2, 11/2011
VC 18, 12/2013
List of products under VPA• EU agreed with VN proposal to include 12 HS
codes in Chapter 44 ( with 4 digits) and 3 sub HS in chapter 94 ( with 8 digits). In total, 23 group of goods ( with 6 digits), 113 items (8 digits) are under VPA
• Group of goods 940306 (other wood furniture/outdoor furniture) is considered to include in the annex 1A
• Sub Annex 1B on timber and timber products prohibited from export under Vietnamese laws still need to discuss.
Legality Definition (VPA Annex II)
PRINCIPLES
Principle 1 Compliance with regulations on land use, forest utilization and environmental management for domestic timber exploitation.
Principle 2 Compliance with regulations on confiscated timber.
Principle 3 Compliance with regulations on timber imports.
Principle 4 Compliance with regulations on timber transportation and trade.
Principle 5 Compliance with regulations on timber processing.
Principle 6 Compliance with regulations on export.
Principle 7 Compliance with regulations on tax and on labour.
Organisations – Principles 1 to 7
Households – Principles 1 to 7
►VPA Annex II: Legality Definition
►VPA Annex IV: FLEGT Licensing System
►VPA Annex V: Timber Legality Assurance System
►VPA Annex VI: Independent Evaluation
TLAS: Main documents and components
Independent Evaluation
LEGALITY DEFINITION
According to the laws and regulations of Viet Nam
• Principles• Criterion• Verifiers• Legal references
VERIFICATION SYSTEM
Verification of compliance and supply chain control
• Verifiers• Verification process & methods• Verification agencies (Level 1 & 2)
• Legal references for verification
FLEGT Licensing System
Organisations Households
Two main aspects…
1) Verification of compliance
“Economic units” Purpose: To ensure compliance with the legality requirements by households and organizations
2) Supplychain control
“Products” Purpose: To ensure the legality of timber origin, and that timber of unknown origin does not enter the supply chain
Verification of compliance – building blocks…
Self-Compliance of organizations and households with the legality definition and regulations
Compliance with regulations on
timber imports, customs, business
registration, labour and tax…
Compliance with regulations on land use, forest utilization and environmental
management for domestic timber
exploitation…
Compliance with regulations on timber trans-portation and
trade, business registration,
labour and tax…
Compliance with regulations on
timber processing,buisiness
registration, labour, and tax…
Compliance with regulations on
export, business registration,
labour, and tax…
Timber importers
Domestic timber
producers
Timber traders and transporters
Wood processors
and manufacturers
Exporters
Verification Level 1: Verification by sectors (ministries and departments) responsible for each area of compliance acccording
to their procedures for appraising, approving and checking
Compliance with regulations on timber
imports, customs, business registration,
labour and tax…
Compliance with regulations on land
use, forest utilization and environmental management for domestic timber
exploitation…
Compliance with regulations on timber trans-portation and
trade, business registration, labour
and tax…
Compliance with regulations on timber processing, buisiness registration, labour,
and tax…
Compliance with regulations on
export, business registration, labour,
and tax…
Timber importers
Domestic timber
producers
Timber traders and
transporters
Wood processors and manufacturers
Exporters
Verification Level 2: VNFOREST / Forest Protection
Verificatio
n Data-
base
Ve r i f i c a t i o n L e v e l 1
Timber importers
Domestic timber
producers
Timber traders and transporters
Wood processors
and manufacturers
Exporters
Compliance with regulations on timber
imports, customs, business registration, labour and
tax…
Compliance with regulations on land use,
forest utilization and environmental
management for domestic timber exploitation…
Compliance with regulations on timber trans-
portation and trade, business registration,
labour and tax…
Compliance with regulations on timber processing, buisiness
registration, labour, and tax…
Compliance with regulations on export, business registration,
labour, and tax…
Periodic
documentary
checks and
spot checks
by forest
rangers
►Annual
forest
inventory
► Annual
harvest
inventory
► Harvested
volume
► Log list and
identification
number/mark
► Input – output
monitoring
report
► Conversion
factor and
balance report
►Legal trade
dossier
► Transport
document
► Input – output
monitoring report
► Balance
report
Reconciliation
of timber
quantities
Reconciliatio
n
Timber importers
Domestic timber
producers
Timber traders and transporters
Wood processors and manufacturers
Exporters
Reconciliatio
n
Reconciliatio
n
Supply chain
Supply chain control principles
TLAS – System of verification of compliance and supply chain control FLEGT VPA in Viet
Nam POSTER 3
Co
mp
on
ent
1:
Ver
ific
atio
n o
f co
mp
lian
ce
Timber importers
Domestic timber producers
Timber traders and transporters
Wood processors and manufacturers
Exporters
Compliance with timber import, customs, business registration,
and tax regulations etc.
Compliance with land allocation, forest management, harvesting, environment and resource tax regulations etc.
Compliance with trans-portation, primary processing, business registration, labour
and tax regulations etc.
Compliance with timber processing, business
registration, labour and tax regulations etc.
Compliance with export, customs, business registration,
and tax regulations etc.
V E R I F I C A T I O N L E V E L 1Verification by relevant sectors responsible for each area of compliance acccording to their own procedures for issuing papers and inspection: MARD,
MONRE (land allocation and environment), MPI (business registration), MOF (tax and customs), MOLISA (labour standards), MOIT (import licenses) etc.
V E R I F I C A T I O N L E V E L 2VNFOREST / Forest Protection Department
Verificatio
n Data-
base
FLEGT
Licensing
►Annual forest
inventory
► Annual
harvest inventory
► Harvested
volume
► Log list and
identification
► Input – output
Monitoring report
► Conversion
factor and balance
report
►Legal trade
dossier
► Transport
document
► Input – output
Monitoring report
► Balance report
Component 2: Supply chain control
Reconciliatio
n of timber
quantities
Reconciliatio
n
Reconciliatio
n
Reconciliatio
n
Documentar
y checks
and spot
checks by
forest
rangers
Wood product manufacturers and exporters
EU Importers
Verification of compliance with Timber Legality
Assurance System
Viet Nam FLEGT
Licensing Authority
(CITES)
Competant Authorities in EU Countries
Export
consignmen
t
VerificationData Base
Documentary
and site
verfication
License
application
License
issuing
Customs Authorities
Overview of
FLEGT
Licensing
System
• Viet Nam’s FLEGT Licensing Authority is intended to be the CITES Management Authority.
• The verification of compliance with the TLAS is a process which takes places throughout the timber supply and processing chain.
• FLEGT licensing is the final step in the process which takes place at the time of export.
• Data on the verification of compliance with the TLAS will be maintained on a central data-base.
• The FLEGT Licensing Office will access the data-base to check that the applicant is in compliance with TLAS.
Key points about the FLEGT Licensing System
• If there is no aspect of non-compliance, the FLEGT License will be issued.
• A separate FLEGT License will be issued for each individual export shipment.
• VN is considered there will be 01 original FLEGT License that will accompany the export shipment or 5 copies .
• FLEGT Licenses provide automatic access to EU markets, in conformity with the EU Timber Trade Regulation (EUTR).
Future negotiation roadmap
• Both sides showed strong efforts and commitments to conclude VPA negotiation end of 2014.
• 3-4 VC meetings, 3 JEM meetings and 2 TWG meetings will be organized from now to end of the year.
• Location: Hanoi (JEM 8, 9 and TWG 4) and Brussels (JEM 10 and TWG 5)
Additional supports needed for Vietnam to implement VPA
• To institutionalize VPA commitments to national legislations (Decrees/circulars guidelines for verification system and FLEGT licensing system, rubber harvesting …)
• To prepare manuals for verification and licensing systems for each groups (GoV, Industry, Household).
• To increase capacity for stakeholders who are involving in supply chain for their compliance with VPA
• To set up databases for verification and FLEGT licensing agencies from provincial to central level.
• To conduct impact survey on deferent target groups may be potentially affected by VPA
