VPA Elements

The VPA between the EU and Vietnam includes 27 articles in written text and nine technical annexes as follows:

VPA Elements

The list in this Annex refers to the Harmonised Commodity Description and Coding System established by the International Convention on the Harmonised Commodity Description and Coding System of the World Customs Union. Full text & download Annex I here

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 implementation of the Agreement in accordance with the provisions of Article 24 of the 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 multi-sector 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, on-line and written comments and contributions by organisations and individuals on drafts of the LD. Vietnamese legal documents referred to in the Appendices 1A and 1B of 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 publically disclosed.

Structure and content of 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 these 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 and the LD for Households is set out in Appendix 1B of this Annex II. The LD is divided into 7 principles, as follows:

1. Organisations

  • Principle I: Harvesting of domestic timber complies with regulations on land use rights, forest use rights, management, environment and
  • Principle II: Compliance with regulations on handling confiscated
  • Principle III: Compliance with regulations on importing
  • Principle IV: Compliance with regulations on timber transportation and
  • Principle V: Compliance with regulations on timber
  • Principle VI: Compliance with regulations on
  • Principle VII: Compliance with regulations on tax and

2. Households

  • Principle I: Harvesting of domestic timber complies with regulations on land use rights, forest use rights, management, environment and
  • Principle II: Compliance with regulations on handling confiscated
  • Principle III: Compliance with regulations on importing
  • Principle IV: Compliance with regulations on timber transportation and
  • Principle V: Compliance with regulations on timber
  • Principle VI: Compliance with regulations on
  • Principle VII: Compliance with taxation
The LD for Organisations and 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 8 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 this 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 this Criterion is not applicable for 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 7 criteria. The additional criteria under the LD for Organisations relate to compliance with regulations on business registration, and internal transportation of timber and timber products within a province and between provinces which is not applicable to
  • Under Principle VII, the LD for Organisations covers Compliance with regulations on tax and labour (3 criteria), while the LD for Households covers Compliance with regulations on tax (1 criterion). This reflects difference in the regulations on labour applied to Households as compared to
In the LD and under 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 land use rights and forest use rights verifiers

 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 the Principle I of LD. The main reason for including several verifiers on land use rights and forest use rights is the evolution of 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 current Land Law. Land Use Rights Certificates (Red Book Certificates) were first introduced through the Land Law of 1993. Since 1993, issuance of land use rights certificates has been progressively extended to all land users and all categories of land throughout the country. This 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 right and legal forest use rights, such as: 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; or written confirmation of the Commune People’s Committees. According to the Land Law, in case that 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 on roadsides or along canal banks. When there is a need for harvesting, before exploitation, households submit 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 self-certify 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 European Union takes place before customs procedures for export, as described under Annex
  1. Therefore, Principle VI is used to classify Organisations under the Organisations Classification System as specified in Annex V.

4. Definitions

In the context of the VPA, the following terminologies are understood as follows:
Principle
Principles are the areas of Vietnamese law and legislation that Organisations and Households have to comply with at each stage of supply chains as indicated in Annex II 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 measures, that Organisations and Households have to comply with to fulfill the Criterion.
Verifier
A Verifier is an evidence to prove the fulfillment 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 forestry-related production or business in accordance with the Law on Forest Protection and Development.
Harvesting design statement
The harvesting design statement is a document describing the basic situation of the harvesting area; harvesting techniques; harvesting and salvage volume, categories and detailed tables on forest harvesting technical standards.
Design unit
A design unit is an entity authorized 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 which is for economic purposes while ensuring the stable development and use of forest determined in the scheme for sustainable forest management according to the current regulations of State. Main harvesting in natural forests is not applied to Households.
Tree marking list
The tree marking list is a document recording the name, size of the trees that can be felled in the harvesting design area.
Report on location and volume of harvested timber products
The report on 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. The packing list is the list of forest products for one check- and-approval, trade, export, import or forest products transported by one vehicle. The packing list for forest products in circulation includes information on the name and type of timber products, unit, form of forest products, quantity and volume, at the end of page of the timber product packing list 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 forest products entered and exited of the harvesting, processing and trading Organisations.

Unprocessed timber products

Unprocessed timber products are those not impacted by tools, equipment of all kinds after being harvested, imported, and handled if confiscated and still in the original shape and parameter.

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 timber product producing and trading Organisations and Households  and circulated together with timber products in the process of harvesting, trading, transporting, processing and storing.

Production forest

Production forests are forests used mainly for production and sale of timber and non-timber forest products in combination with environmental protection.

Protection forest

Protection forests are forests used mainly for protection of water sources and soil, prevention of erosion and desertification, restriction of natural disasters, climate regulation and environmental protection.

Special-use forest

Special-use forests are forests used mainly for nature conservation, preservation of standard specimens of the national ecosystems and forest biological gene sources; scientific research; protection of historical and cultural relics and landscape preservation for recreation and  tourism purposes in combination with environmental protection.

ANNEX II / APPENDIX 1A: LEGALITY DEFINITION FOR ORGANISATIONS

I. Lodging of the licence

  1. The licence shall be lodged with the competent authority of the Union Member State in which the shipment covered by that licence is declared for release for free circulation. This may be done electronically or by other expeditious
  2. The competent authorities referred to in paragraph 1 shall, in accordance with the applicable national procedures, inform the customs authorities as soon as a licence has been

II. Checks on validity of licence documentation

  1. Paper licences shall conform to the model described in Annex IV. Any licence that does not meet the requirements and specifications set out in Annex IV shall be
  2. A licence shall be considered void if it is lodged on a date later than the expiry date indicated in the
  3. Any erasures from or alterations to a licence shall not be accepted unless such erasures or alterations have been validated by the licensing
  4. Extension of the validity of a licence shall not be accepted unless that extension has been validated by the licensing
  5. A duplicate or replacement licence shall not be accepted unless it has been issued and validated by the licensing

III. Requests for additional information

  1. In case of doubt concerning the validity or authenticity of a licence, a duplicate or a replacement licence, the competent authorities may request additional information from the licensing
  2. A copy of the licence, the duplicate or the replacement licence in question may be forward together with the request.
  1. If necessary, the licensing authority shall withdraw the licence and issue a corrected copy, which shall be authenticated by the stamped endorsement "Duplicate" and forwarded to the competent

IV. Verification of the conformity of the licence with the shipment

  1. If further verification of the shipment is considered necessary before the competent authorities can decide whether a licence can be accepted, checks may be carried out to establish whether the shipment in question conforms to the information provided in the licence and to the records relating to the relevant licence which are held by the licensing
  2. Where the volume or weight of the timber products contained in the shipment presented for release for free circulation does not deviate by more than 10 % from the volume or weight indicated in the corresponding licence, the shipment shall be considered to conform to the information provided in the licence as far as volume or weight is
  3. In case of doubt about whether the shipment conforms with the FLEGT licence, the competent authority concerned may seek further clarification from the licensing
  4. The licensing authority may request the competent authority to send a copy of the licence or the replacement in
  5. If necessary, the licensing authority shall withdraw the licence and issue a corrected copy, which shall be authenticated by the stamped endorsement "Duplicate" and forwarded to the competent
  6. If the competent authority receives no answer within 21 calendar days of the request for further clarification, the competent authority shall not accept the licence and shall act in accordance with the applicable legislation and
  7. A licence shall not be accepted if it has been established, where necessary after provision of additional information in accordance with Article 3 of this Annex or a further investigation in accordance with Article 4 of this Annex, that the licence does not correspond to the

V. Verification prior to the arrival of the shipment

  1. A licence may be lodged before the arrival of the shipment it
  1. A licence shall be accepted if it meets all the requirements set out in Annex IV and no further verification in accordance with Articles 3 and 4 of this Annex is deemed

VI. Other matters

  1. Costs incurred while the verification is being completed shall be at the expense of the importer, except where the applicable legislation and procedures of the Member State of the Union concerned determine
  2. Where persistent disagreements or difficulties arise from verification of FLEGT licences, the matter may be referred to the

VII. Release for free circulation

  1. In box 44 of the Single Administrative Document on which the customs declaration for release for free circulation is made, reference shall be made to the number of the licence that covers the timber products subject to the
  2. Where the customs declaration is made by computerised means, the reference shall be provided in the appropriate
  3. Timber products shall be released for free circulation only after completion of the procedures described in this
Download Annex III here

1. General requirements and provisions for FLEGT licences

  • Any shipment of timber and timber products (hereinafter referred to as timber products) included in Annex I of this Agreement exported from Viet Nam to the market of the European Union (EU) is required to have a FLEGT licence. In accordance with Regulation (EC) No 2173/2005 and this Agreement, the Union shall accept such shipments from Viet Nam for import into the Union only if they are covered by FLEGT
  • In line with Article 2(f) of this Agreement, a FLEGT Licence is a document issued by the competent Vietnamese Licensing Authority to a shipment of legally produced timber to be exported to the EU that is verified in accordance with the criteria and procedures laid down in this
  • A FLEGT Licence shall be issued for a single shipment, of a single exporter and to a single point of entry into the EU. One single FLEGT licence should not be declared to more than one customs office in the
  • A FLEGT Licence shall be issued before customs clearance in Viet
  • A FLEGT licence may be in paper or electronic form. The licence format shall be made available by the FLEGT Licensing Authority in English and Vietnamese, and the filled information shall be provided in English. Both paper-based and electronic licences shall contain all information as specified in the format and in accordance with the notes for guidance set out in Appendix 1 to this Annex
  • For complex shipments for which it may not be possible to include all required information referred to in Template 1 of Appendix 1, an authorized attachment (Additional goods description attached to FLEGT licence) including qualitative and quantitative information related to the description of the shipment, as specified in Template 2 of Appendix 1, must be added to the licence. In that case the corresponding boxes in the licence shall not include information in the shipment but reference to the authorized
  • In the future, in addition to FLEGT licensing for timber and timber products exported to the EU market, Viet Nam may consider the application of a licensing system based on the VNTLAS for all export

2. Technical specifications with regard to paper-based FLEGT Licences

  • Paper-based licences shall conform to the format set out in Appendix
  • The paper size shall be standard
  • A FLEGT licence shall be completed in typescript or by computerised
  • The stamps of the Licensing Authority shall be applied by means of a stamp. However, an embossment or perforation may be substituted for the Licensing Authority
  • The FLEGT Licensing Authority shall use a tamper-proof method to ensure the authenticity of the FLEGT licence and to record the quantity allocated in such a way as to make it impossible to insert figures or
  • The form shall not contain any erasures or alterations, unless those erasures or alterations have been authenticated by the stamp and signature of the Licensing

3. Copies of FLEGT licenses

3.1. The Licensing Authority issues a single original FLEGT Licence to the licence applicant, who shall send it to the importer.

  • The importer shall lodge the original FLEGT licence with the competent authority of the Member State of the Union in which the shipment covered by that licence is declared for release for free
  • Electronic copies of the FLEGT Licence will also be provided to the relevant EU Customs Authority and the EU FLEGT Competent
  • The Licensing Authority shall retain for its records and for possible future verification of licences issued an electronic copy of each FLEGT licence. A system shall be in place to ensure that the electronic database and the copies of the licences therein archived shall have legal value in accordance with provisions of the Law on E-transactions 51/2005/QH11.
  • The release for free circulation of the shipment within the EU is subject to provisions set out in Annex

4. Licensing requirements for timber subject to the provisions of CITES

4.1. Timber subject to the provision of CITES, or products containing such timber entered in the supply chain in Viet Nam are subject to the same VNTLAS verification as other timber.

  • Before export, the CITES Management Authority of Viet Nam shall ensure that timber subject to the provision of CITES or products containing such timber meet all VNTLAS requirements.
  • The CITES Management Authority of Viet Nam shall issue CITES permit for shipments into EU containing only timber that is subject to the provisions of CITES or products containing such timber. These timber products shall be exempted from obtaining a FLEGT licence.

5. Licensing procedures

5.1. Licensing Authority

The FLEGT Licensing Authority of Viet Nam shall be the Viet Nam CITES Management Authority. The Licensing Authority is responsible for storing relevant data and information on the issuance of FLEGT licences, for information exchange between Viet Nam and the FLEGT Competent Authorities in EU Member States as well as other competent Vietnamese authorities or licensees on FLEGT licence-related issues. The detailed requirements and procedures for issuance, extension of the validity, withdrawal, replacement and management of FLEGT licences shall be regulated by the Government of Viet Nam in legislation after signing of the Agreement. The FLEGT Licensing procedures shall be made public. The Government of Viet Nam shall provide the European Union and its Member States with authenticated sample licences, specimens of stamps of the Licensing Authority, and signatures of the authorized officers. The Licensing Authority shall establish systems to receive both hard-copy and electronic licence registrations in order to respond to the capacity and location of export operators. The FLEGT licensing system will be progressively linked to the National Single Window system of Viet Nam as conditions allow for development of the systems. In line with the definition of "goods of a non-commercial nature" included in Article 1(6) of Commission Regulation (EEC) No 2454/93 of 2 July 1993 laying down provisions for the implementation of Council Regulation (EEC) No 2913/1992 establishing the Union Customs Code, samples and demonstration products for commercial purpose are subject to the FLEGT licensing scheme when exported into the EU market.

5.2. Timber Product Dossier for FLEGT Licensing

The Timber Product Dossier for FLEGT Licensing for exporters consists of the following five elements:
  1. FLEGT licence application;
  2. Sales contract or equivalent;
  3. Timber packing list;
  4. Invoice as regulated by the Ministry of Finance ;
  5. 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 on timber legality for such shipment as defined in the Appendix 2 of Annex
The content of the Timber Product Dossier for FLEGT licensing, including any specific requirements for samples and demonstration products, shall be specified in the regulation on FLEGT licensing to be issued by the Government of Viet Nam after signing of the Agreement.

5.3. Licensing steps

The licensing steps are illustrated in Figure 1.

Step 1: Application receipt

The applicant exporting timber to the EU submits the Timber Product Dossier for FLEGT Licensing to the Licensing Authority for each export shipment. The content of the dossier is specified in Section 2.1.

Step 2: Application review

The Licensing Authority shall conduct the following steps:
  • In the case of Organisations, confirm the risk category status in the Organisations Classification System Database, as set out in Annex V, in order to ensure the accuracy of the risk category declared by the exporter in the timber export dossier and that the packing list has been duly certified in line with the risk category status of the Organisation.
(b) Check the completeness of the submitted Timber Product Dossier for FLEGT Licensing of Organisations and Households according to requirements as described in Section 2.1 above. In the case the documentation is not complete, the Licensing Authority shall not process the Timber Product Dossier. The Licensing Authority shall inform the exporter about any additional information or documentation that may be required. (c) Check the legality and validity of documents included in the Timber Product Dossier for FLEGT Licensing. In case of suspicion of risk, the Licensing Authority shall coordinate with the Verification Authority and other verification entities for further checks and clarification of the legality of the shipment.

Step 3 Licensing decision

In case the Timber Product Dossier is deemed compliant with VNTLAS requirements, the Licensing Authority shall issue the FLEGT licence for the shipment. In case the Timber Product Dossier is not compliant with VNTLAS requirements, the Licensing Authority shall reject the FLEGT licence application for the shipment and shall take action in line with applicable legislation in case of any detected violations.

6. Validity, withdrawal and replacement of FLEGT licences

6.1 Validity and extension of validity of FLEGT licences

A FLEGT licence shall be valid from the date on which it is issued. The period of validity of a FLEGT licence shall not exceed six (06) months. The date of expiry shall be indicated on the licence. After the date of expiry of the licence, the validity of the licence may be extended once for another period of a maximum of two (02) months by the FLEGT Licensing authority. In case that an extension of the validity of the licence is required, applicants shall submit a written request to the FLEGT Licensing Authority together with any explanation on the request to extend the validity of the licence. Upon such extension, the Licensing authority shall insert and validate the new expiry date in the licence

6.2 Withdrawal of FLEGT licences

The FLEGT Licence shall be withdrawn in the following situations:
  • Any violation of the exporter related to the shipment is identified after the licence has been issued;
  • The FLEGT Licence expires without the export of timber products having taken place and without the request for an extension of the validity of the licence;
  • The exporter voluntarily returns the licence.

6.3 Replacement of FLEGT licences

A FLEGT Licence may be replaced in the following situations: 
  • The FLEGT Licence is lost, stolen, or destroyed;
  • The FLEGT licence contains mistakes in the preparation by the Licensing Authority;
In the event of loss, theft or destruction of the original FLEGT licence, the licensee or the licensee's authorised representative may apply to the Licensing Authority for a replacement. Together with the application, the licensee or the licensee's authorised representative shall provide an explanation for the loss, theft or destruction of the original licence. The replacement shall contain the information and entries that appeared on the licence it replaces, including the licence number, and shall bear the endorsement "Replacement Licence". In the event that the lost or stolen licence is retrieved, it shall not be used and must be returned to the Licensing Authority. For licences containing mistakes by the Licensing authority, the FLEGT Licensing Authority shall withdraw the FLEGT Licence and issue a corrected licence, which shall be authenticated by the stamped endorsement "Duplicate" and forwarded to the competent authority. The replacement original license and any copies for the EU Customs Authority and the EU FLEGT Competent Authority shall contain the information included in the original license including the Original license number and date of issue of the replaced license.

6.4 FLEGT Licence re-application

A new FLEGT licence shall be requested by the exporter whenever there is a change in the timber product, HS code, species, or number of units, as well as any deviation in the weight and/or volume of the shipment by more than 10% in comparison with the FLEGT licence

7. Management of violations related to FLEGT licensing

In case of (a) any violation or fraudulent information related to the Timber Product Dossier for FLEGT licensing, or (b) counterfeiting, altering or modifying information in the licence, or infringement of the licensing regulations, administrative or legal measures shall apply according to the level of violation, in line with Vietnamese law and regulations.

8. Responsibility of FLEGT Licensing Authority

  •  The FLEGT licence shall be issued to the exporter in line with relevant provisions of this Agreement.
  • In any case of extending the validity, withdrawal, or replacement of the FLEGT Licence, the Licensing Authority shall inform the concerned EU Competent Authority.
  • The Licensing Authority is responsible to respond to any questions of the EU Competent Authorities, as well as other authorities of Viet Nam, if there is doubt concerning the authenticity and validity of any licence, and provide additional information and clarification as requested.
  • The Licensing Authority shall manage a licensing database for the applications received, including FLEGT licences issued and applications rejected.

ANNEX IV / APPENDIX 1. FLEGT LICENCE FORMAT

1. Introduction

The Timber Legality Assurance System of Viet Nam (hereinafter referred to as VNTLAS) aims to ensure that timber and timber products as described in Annex I (hereinafter referred to as timber) are legal. Timber exported to the European Union (hereinafter referred to as the EU) are subject to specific provisions for FLEGT licensing as described in Annex IV. VNTLAS is based on regulations relevant to each step of the timber supply chain, including harvesting, import, transportation, processing, trade and exports of timber. VNTLAS is based on the national legislation in force, together with regulations introduced to implement the Agreement, which includes the participation of ministries, sectors, localities, and private sector and civil society organisations relevant to forestry and the trade of timber. VNTLAS consists of seven system elements, as follows:
  1. Timber Legality Definition (LD): Organisations and Households;
  2. Development, verification and approval of verifiers at all stages of supply chains;
  3. Organisations Classification System (OCS) and risk-based verification;
  4. Supply chain control;
  5. FLEGT licensing;
  6. Internal inspection, complaints and feedback mechanisms;
  7. Independent evaluation.
This Annex describes the key content of the aforementioned system elements and how, in principle, VNTLAS shall work in practice. Other Annexes and Appendices to this Annex V also provide additional information on the system functionalities. Appendices to this Annex include:
  • Appendix 1. Development, verification and approval of legality verifiers for Organisations and Households;
  • Appendix 2. Supply chain control;
  • Appendix 3 Standard form for self-declaration.

Full text & download Annex V here

1. Purpose and Scope of the Independent Evaluation

The Independent Evaluation is carried out in accordance with Article 10 of this Agreement. The Independent Evaluation is carried out by a third party called the Independent Evaluator. The Independent Evaluator shall report to Viet Nam and the European Union (EU) through the Joint Implementation Committee (JIC) as described in Annex IX. The purpose of the Independent Evaluation is to assess the implementation, effectiveness and credibility of the Timber Legality Assurance System of Viet Nam (VNTLAS) and FLEGT Licensing Scheme, as set out in Annex IV and Annex V. The scope of the Independent Evaluation includes the following:
  1. With respect to verification under VNTLAS, the Independent Evaluation shall assess:
    • The implementation, effectiveness and credibility of VNTLAS according to the applicable legal framework and VNTLAS implementation guidelines;
    • The supply chain control and data management system for VNTLAS;
    • The Organisations Classification System and risk-based verification;
    • Verification for export in line with Annex
  2. With respect to the FLEGT Licensing Scheme, the Independent Evaluator shall:
    • Assess the implementation, effectiveness and credibility of the FLEGT licensing scheme in accordance with VNTLAS implementation guidelines, including the data management system;
    • Provide information on the impact of FLEGT licences on trade of timber products to the EU (qualitative and quantitative criteria), including free circulation of products covered by FLEGT licences within the EU market, particularly by making use of the reports of Independent Market Monitoring (IMM) project implemented by International Tropical Timber Organization (ITTO);
    • Assess the coordination between FLEGT Licensing Authority of Viet Nam and the Competent Authorities of EU Member
  • To identify, document and report any non-compliances and weaknesses in the system and propose measures for
  1. To assess the effectiveness of implementation of the measures for improvement decided by the JIC for non-compliances and weaknesses in the
  2. To assess the coverage and accuracy of statistical data on production and trade of timber products for export to the EU
  3. To carry out any other study requested by the JIC to further substantiate the Independent Evaluation.

2. Mandate and Evaluation Methodology of the Independent Evaluator

The Independent Evaluation methodology shall conform to best international practice suitable with ISO 19011, ISO 17021 or equivalent. The Independent Evaluation methodology shall be approved by the JIC. The Independent Evaluator shall have publicly available documented procedures for carrying out evaluations. The Independent Evaluation shall be conducted following evidence-based methods. All the evaluation results and findings shall be fully documented and substantiated. The methodology shall include adequate checks of relevant documentation, operating procedures and records of the agencies responsible for implementing VNTLAS including  spot checks and sample-based checks of operators. The evaluation methodology shall be based on information from the following sources:
  • Site visits including all stages of the supply chain, interviews, and electronic and paper-based documentation of the Verification Authority, the FLEGT Licensing Authority, Organisations and Households and their suppliers; as well as information from other verification entities as specified in the final two paragraphs of this
  • Information and complaints about the operation of the VNTLAS and FLEGT Licensing Scheme from organisations and
  • Interviews and reports of the Competent Authorities of EU Member
  • Information maintained within the VNTLAS management information systems: (i) the   Violations   Database   including   confiscated   timber;   (ii)   the    Organisations
Classification System Database; (iii) the FLEGT Licensing Database; and (iv) supply chain controls and related checks.
  • Public reports of Internal Inspections related to the implementation of VNTLAS according to Vietnamese legal
  • Information from publications of independent organisations and the media related to VNTLAS.
  • Public information set out in Annex
  • Other sources of information proposed by
The Independent Evaluator shall design a system for the receipt, collation and reporting of complaints about the operation of the VNTLAS and the FLEGT Licensing Scheme. The complaints management system shall be approved by the JIC. The Independent Evaluator shall have a mechanism for receiving and dealing with complaints about its own evaluation activities. In both of these cases, the complaints and denunciation mechanisms include denunciations without name and address of denunciators provided they are clear and supply concrete evidence in relation to acts of corruption or violations of the law. All identified denunciators shall be protected. These mechanisms shall have to assure confidentiality in the receipt of complaints and denunciations. The evaluation procedures shall specify how information received from relevant stakeholders will be recorded and utilized by the Independent Evaluator, notably NGOs, forest associations, enterprises, trade unions, local communities and people living in forest areas. Both Parties shall assure that the Independent Evaluator shall have free access to all relevant data and information within their mandate and as regulated by both sides. Within Viet Nam, the Independent Evaluator shall have the mandate to access the  Verification Authority (as defined in Section 2.2.3 of Annex V), the FLEGT Licensing Authority (as defined in Annex IV), and Organisations and Households (as defined in Section2.2.1 of Annex V) along their supply chains facilitated through the Verification Authority. In the case that the Independent Evaluator requires to obtain information related to the VNTLAS and FLEGT licensing from other government agencies or verification entities within Viet Nam (as defined in Section 2.2.2 and Section 2.2.3 of Annex V), the Independent Evaluator shall inform the Verification Agency (Forest Protection Department) and shall  have access to other government agencies or verification entities facilitated through the Verification Agency.

3. Capability requirements

The Independent Evaluator shall have capacity and competence in auditing and evaluation and in the forestry sector. The Independent Evaluator shall comply with the following requirements:
  • Having no conflict of interest arising from any organisational or commercial relationship as required by ISO 17021, ISO 17065 or
  • Having no direct involvement in forest management, timber processing, timber trade or regulation in the forestry sector in Viet
  • Having its own quality control system as required by ISO 17021, ISO 17065 or equivalent.
  • Having experience in audits of quality management
  • Having assigned personnel with proven expertise and experience in auditing and evaluation in forest management, timber processing, timber sourcing, traceability and supply chain control, timber export and international markets including the EU
  • Having previous experience in auditing and evaluation in Viet Nam or other timber processing countries would be an
The Independent Evaluator shall be an organisation with legal status in Viet Nam. The Independent Evaluator may be an organisation formally registered in Viet Nam or a foreign registered organisation. In the case that the selected evaluator is a foreign registered organisation, the evaluator shall enter into partnership with a Vietnamese partner and/or shall have a representative office in Viet Nam during the contract implementation period, to act as a focal contact point for all parties.

4. Reporting requirements

The Independent Evaluator shall report to the JIC according to a reporting framework and reporting schedule to be elaborated and agreed by the JIC at the beginning of the assignment. The reporting framework and schedule shall include the following elements:
  1. Inception report;
  2. Annual evaluation reports (including Main Reports and Summary Reports) presenting the main results and findings of the Independent
In addition, the Independent Evaluator may be asked to prepare and make presentations to the JIC and upon the request of the JIC to provide additional information to further substantiate  or clarify its findings.

5. Organisation of implementation

The Independent Evaluation shall be carried out at six monthly intervals in the first year that FLEGT licensing commences, shifting to twelve monthly intervals for the two following years. After the first three years, the JIC shall recommend the evaluation frequency in following years. Upon request from the JIC, additional Independent Evaluation may be commissioned for specific assignments. The Independent Evaluator shall be appointed by Viet Nam after consultation with the EU in the JIC. Funding for the Independent Evaluation will be agreed upon by Viet Nam and the EU.

6. Confidentiality and report release

The Independent Evaluator is responsible for the confidentiality of data and information collected from organisations and individuals who are contacted during the evaluation process. The Independent Evaluator shall not publicize or disseminate the results or reports of the evaluation unless authorized by the JIC. The JIC shall publish the summary report and minutes of meetings of the JIC on reports by the Independent Evaluator. Download Annex VI here

Purpose of the assessment

The Voluntary Partnership Agreement between the European Union (EU) and Viet Nam includes the development and implementation of the Viet Nam Timber Legality Assurance System (VNTLAS) to ensure the legality of timber as set out in Annex V of the Agreement. This Annex specifies criteria for the assessment of the operational readiness of the VNTLAS according to Article 12 of the Agreement. All the elements of the VNTLAS shall be independently assessed in terms of technical aspects before the FLEGT Licensing Scheme for timber exports from Viet Nam to the EU commences. Terms of Reference for this independent technical assessment shall be subject to agreement between Viet Nam and the EU through the Joint Implementation Committee (JIC). The assessment criteria set out in this Annex shall form the basis for the Terms of Reference. This assessment aims to:
  • Review the VNTLAS as described in the Agreement and how it will operate;
  • Assess the readiness of VNTLAS to be put into operation, including whether the measures underpinning the FLEGT Licensing Scheme adequately fulfil their functions;
  • Assess whether Organisations and Households along the supply chain are ready for implementation of VNTLAS;
  • Assess aspects related to the capacity of the relevant verification entities for verification, licensing, data management and information systems; and
  • Examine any revisions, agreed by the parties, made to the VNTLAS after the Agreement was

Methodology for implementation of the assessment

The assessment of the VNTLAS shall be carried out according to a stepwise approach whereby gaps and weaknesses in the VNTLAS which may be identified during the assessment are progressively addressed through the planned implementation of corrective measures. Full text & download Annex VII here

1. Introduction

The Parties are committed to ensuring that key forestry-related information is made available to the public. This Annex provides for this objective to be met by outlining the forestry-related information to be made available to the public, the bodies responsible for making that information available, and the mechanisms by which it can be accessed. The aim is to ensure that: (i) Joint Implementation Committee (JIC) operations during implementation of this Agreement are transparent and understood; (ii) a mechanism exists for the Parties as well as relevant stakeholders to access key forestry-related information; (iii) the functioning of the Viet Nam Timber Legality Assurance System (VNTLAS) is strengthened through the availability of information for independent monitoring; and (iv) that the broad objectives of the Agreement are achieved. The public availability of information and the commitment to facilitate access of stakeholders to this information represents an important contribution to reinforcing Viet Nam’s forest governance.

2. Information to be published by Viet Nam

2.1. Legal information

  • The text of this agreement, its Annexes and any
  • All relevant legislation referred to in Annex II Legality Definition, and in Annex V VNTLAS and any amendments
  • International conventions and agreements signed and ratified by Viet Nam applying to the Agreement.

2.2. Information on forest land use planning and forest land allocation

  • National and provincial planning data and maps on the three categories of forest (special use, protection and production forest).
  • Provincial Forest Protection and Development Plans and Maps (Hard copy).
  • Periodic data on forest land allocation, forest leasing, and forest land area allocated with land use right
  • Upon request, and subject to a non-discriminatory and non-burdensome procedure that grants this request, relevant information related to certificates of forest land allocation and contracts of forest lease as held by the responsible local authorities will be made
  • Data on the forested land area changed into other land use purposes, including location, and policies on replacement of
  • The area of forested land under forest protection

2.3. Information on forest management

  • Data on the annual change at national and provincial levels of the forested area (natural forest and plantation forest) and number of scattered
  • List and location maps of areas under certified forest management as recognized by international
  • Approved sustainable forest management
  • Decisions on approving Environmental Impact Assessment (EIA) Reports by the Ministry of Agriculture and Rural Development (MARD) including final EIA Reports of forestry projects.
  • Comments from MARD on EIA reports of projects impacting forest

2.4. Information on domestic timber production

  • Data on timber production values and
  • Data on volume of timber harvesting (forest plantation, scattered trees, liquidation of rubber wood plantations when available and salvage logging).

2.5. Information from the Forest Protection and Development Law violations database and timber trade violations

  • Periodic data on the number of cases of violations of forest law at district, province and national level related to: forest destruction; illegal exploitation of forest products; violations of forest fire regulations; violations of forest land use regulations; illegal purchase and trafficking of forest products; and violations of forest product processing regulations.
  • Periodic data on the number cases of violations of forest law at district, province and national level and results of the legal response including administrative fines and criminal cases.
  • Periodic information on violations disaggregated by organisations and individuals, types of violations, and
  • Periodic data on the quantity and type of confiscated timber from confiscation and post- auction.

2.6. Information on processing

  • Number and list of formally registered timber and forest product processing and exporting entities, according to geographical distribution (region) and type of enterprises (domestic and foreign enterprises).
  • List of timber and forest product processing and exporting enterprises/companies that have obtained chain of custody and/or sustainable forest management
  • Periodically updated list of organisations in each risk category from the Organisations Classification System as set out in Section 5 of Annex

2.7. Information on investment and revenues

  • Annual data on forest sector
  • Annual data on Payments for Environmental
  • Annual data on state budget investment in Forest Protection and Development
  • The annual land prices stipulated by the People's Committees of provinces and cities under central

2.8. Information on trade

  • Annual data on values of imported and exported timber and timber products by HS Code, and by country of origin and destination, including under transit
  • Information on import and export of CITES permitted timber

2.9. Information on the Timber Legality Assurance System

  • Regulations and procedures guiding the implementation of all VNTLAS elements, and related implementation guidelines, manuals and
  • Regulations and procedures guiding the issuing, withdrawal and management of FLEGT licenses.
  • List of FLEGT licensing authority offices and its branches in Viet Nam including contact details.
  • List of MoUs and bilateral agreements between Viet Nam and other countries on forestry and timber trade and
  • MoUs and bilateral agreements between Viet Nam and other countries on forestry and timber trade and legality unless contrary to confidentiality provisions of these MoUs and agreements.
  • Name and contact details of the selected Independent
  • Public reports of Internal Inspections related to the implementation of VNTLAS according to Vietnamese legal

3. Information to be published by EU

  • The text of this agreement, its Annexes and any
  • The number of FLEGT licenses from Viet Nam that are received by the Competent Authorities in EU Member
  • Annual quantities and values of timber and derived timber products imported into the EU from Viet
  • Total quantities and value of timber and derived products by country imported into the EU, with and without FLEGT
  • All available reports from Independent Market Monitoring (IMM).
  • Updated information on EU regulations related to timber trade, and financial and technical support related to VPA implementation in Viet
  • List and contact details of the Competent Authorities in EU Member States responsible for FLEGT and EU Timber

4. Information to be published by the Joint Implementation Committee (JIC)

4.1. Minutes of meetings of the JIC and summaries of decisions

4.2. Annual Reports produced by the JIC, in particular, information relating to:

  • The number of FLEGT licenses issued by Viet
  • The number of rejected applications for FLEGT
  • Annual quantities and values of timber and timber products exported from Viet Nam to the EU under the FLEGT Licensing Scheme, according to the relevant HS code headings and according to the Member State of the Union into which import took
  • Progress in achieving the objectives of this Agreement and matters relating to its implementation.
  • Quantities of timber and timber products imported into Viet
  • Approach and actions taken to prevent illegally-produced timber products from being imported into Viet Nam in order to maintain the integrity of the FLEGT Licensing Scheme.
  • Cases of non-compliance with the FLEGT Licensing Scheme and the actions taken to deal with such non-compliances. Quantities of timber and derived products imported by country into the  Union  under  the  FLEGT  Licensing  Scheme,  according  to  the  relevant    HS
headings and according to the Member State of the Union in which importation took place.
  • The number of FLEGT licenses from Viet Nam received by the
  • Information on cases and quantities of timber products about which clarifications were needed between the Viet Nam FLEGT Licensing Authority and the Competent Authorities in EU Member
The JIC will assess and report on additional capacity building needs and the use of public information in order to implement this Annex.

4.3. Information on the Independent Evaluation

  • Terms of Reference of the Independent
  • Documented procedures of the Independent Evaluator for carrying out
  • Public summary reports of the Independent

4.4. Procedures guiding the functioning of the JIC

4.5. Overview of activities undertaken to implement the Agreement

5. Mechanisms and means to access information

This Annex complies with current legislation of Viet Nam on disclosure and provision of information, as regulated by: Decision No.25/2013/QD-TTg of the Prime Minister on Promulgating regulations on statements and providing information to the press; Decree No.43/2011/NĐ-CP of the Government on the Provision of information and online public services on the website or web portal of State agencies; Ordinance No.30/2000/PL- UBTVQH10 of National Assembly Standing Committee on Protection of State Secrets; Law No.17/2008/QH12 on Promulgation of Legal Documents; Law No.14/2013/QH13 on Legal Popularization and Education; and other amendments and revisions that may follow. The information mentioned above will be available:
  • On the websites and portals of the Government of Viet Nam, the Viet Nam Forestry Administration, the General Department of Customs, the General Statistics Office, the General Department of Taxation, provincial government portals, VTLAS Agency (Forest Protection Department), timber producer and processing associations, and the
  • At offices of the Viet Nam Forestry Administration and the EU Delegation in Viet Nam who are responsible for monitoring the
  • Through press conference of the two
  • Through leaflets, newsletters, media publications produced by both

6. Modalities for disclosure of information

Focal points will be appointed and specific guidelines will be developed for implementation  of this Annex by Viet Nam and the EU. Download Annex VIII here
The Joint Implementation Committee (JIC) is a body established in accordance with Article 18 of the Agreement. The JIC shall be established by the Parties within three months after the entry into force of the Agreement in accordance with Article 25. The specific functions and tasks of the JIC relate to the management, monitoring and review of the implementation of the Agreement, including the management of the independent evaluation.

1. VPA Management

  1. To conduct an independent assessment of the operational readiness of the Viet Nam Timber Legality Assurance System (VNTLAS) according to criteria described in Annex
VII. The assessment shall determine whether the Viet Nam Timber Legality Assurance System (VNTLAS) underpinning the FLEGT licensing scheme as described in Annex V adequately fulfils its functions.
  1. To receive notification from the Parties on when they have made the necessary preparations for the FLEGT Licensing Scheme to commence, and on the basis of the aforementioned independent assessment to recommend the date of commencement of the FLEGT licensing scheme for approval by the Parties in accordance with Article 12 of the Agreement.
  2. To facilitate dialogue and the exchange of information between the Parties on progress of implementation of the Agreement, and to examine any subject introduced by either Party and identify any required follow-up.
  3. To receive notification from either Party if they suspect or have found evidence of any circumvention or irregularity in implementation of the FLEGT Licensing Scheme, and to identify any required follow-up in accordance with Article 11 of this
  4. To seek to resolve any dispute concerning application or interpretation of this Agreement in accordance with Article 22 of this
  5. To receive and discuss any proposal of either Party wishing to amend this Agreement, or annexes to the Agreement; to submit recommendations to the Parties on any proposed
amendments; and to adopt any amendments to the annexes to the Agreement, in accordance with Article 24 of this Agreement.
  1. To receive notification from either Party on any changes pertaining to the legal references in the Legality Definition (Annex II). At the latest every two years, the Parties shall through the JIC examine the need for updating the Annex
  2. To approve a methodology for recognition of voluntary certification and national certification schemes as meeting requirements of the VNTLAS and to receive information on systems that have been assessed and recognized by Viet Nam in accordance with Section 2.3 of Annex
  3. To decide on the list of high risk species for the control of timber imports under the VNTLAS, to review this list on a periodic basis, and to supplement this list as it may be proposed by either Party, as described in Section 6.3.7.4 of Annex
  4. To review and comment on the VNTLAS implementation guidelines, verification manuals and the methodology and criteria for the risk-based approaches included in the VNTLAS during implementation of the

2. VPA Monitoring and Review

  1. To consider and adopt joint measures to implement this Agreement, and to propose and/or take any measures to improve performance of the
  2. To monitor and review overall progress in implementing this Agreement, including the functioning of the VNTLAS and of the FLEGT Licensing Scheme on the basis of the findings and reports of the Independent Evaluation according to Article 10 and Annex VI of this
  3. To monitor and assess the social, economic and environmental impacts of the implementation of this Agreement and decide on appropriate measures to mitigate any potential negative
  4. To identify areas of cooperation to support implementation of this Agreement, including stakeholder
  5. To establish subsidiary bodies for work to be carried out in support of the JIC as needed. Such work may include, for instance, receiving and examining complaints relating to implementation of the
  1. To prepare, approve and make public joint annual reports, minutes of its meetings, and other documents arising out of its work, as specified under Section 4 of Annex
  2. To request Internal Inspections related to the implementation of VNTLAS to be carried out; and to receive final conclusions of Internal Inspections related to the implementation of

3. Management of the Independent Evaluation

  1. To endorse the selection of the Independent Evaluator, that shall be appointed by Viet Nam after consultation with the EU, based on Terms of Reference for the Independent Evaluation given in Annex VI of this
  2. To approve the Inception Report, including the evaluation schedule, methodology and reporting framework prepared by the Independent
  3. To prepare, or assign subsidiary bodies to the JIC to prepare specific Terms of Reference for each periodic mission of the Independent Evaluator, and to recommend any additional evaluation tasks or studies, as it may be
  4. To approve the design of the complaints management system about the operation of the VNTLAS and the complaints management mechanism about the independent evaluation itself, as specified in Annex
  5. To receive, examine and comment on all reports submitted by the Independent
  6. To agree on measures for improvement to address any weaknesses or areas on non- compliance in the VNTLAS based on the findings of the Independent Evaluator or other evidence or complaints related to the VNTLAS; and to monitor the impact of such measures.
  7. To publish summary reports and minutes of meetings of the JIC on reports of the Independent Evaluator, as specified under Section 4 of Annex VI and Annex
  8. To endorse the renewal of the Independent Evaluator contract, as may be
Download Annex IX here