Chương V Nghị định 156/2018/NĐ-CP: Dịch vụ môi trường rừng, quỹ bảo vệ và phát triển rừng

Chapter V

FOREST ENVIRONMENTAL SERVICES AND FOR FOREST PROTECTION AND DEVELOPMENT FUNDS

Section 1. PROVIDERS, USERS, METHODS OF PAYMENT AND CHARGE RATES OF FOREST ENVIRONMENTAL SERVICES

Article 57. Payers of forest environmental services

1. Hydroelectricity producers specified in Point a Clause 2 Article 63 of the Forestry Law.

2. Clear water producers and suppliers specified in Point b Clause 2 Article 63 of the Forestry Law.

3. Industrial producers specified in Point c Clause 2 Article 63 of the Forestry Law which use water from water sources for industrial production, including industrial producers of all business lines as regulated.

4. Providers of ecotourism, hospitality and entertainment services specified in Point d Clause 2 Article 63 of the Forestry Law that have to pay service charges as prescribed in Clause 1 Article 58 herein, including travel services, tourist transport and accommodation service, food, shopping, recreation, healthcare, sightseeing and advertisement services and other relevant services within the forest providing forest environment services.

5. Producers and traders causing massive greenhouse gas emission specified in Point dd Clause 2 Article 63 of the Forestry Law that have to pay service charges for absorbing and storing carbon in forests under Government’s regulations on providers, user, payment methods, payment amount, management and use of forest carbon absorption and storage service charges which are formulated based upon the result of pilot payment program until the end of 2020 provided by the Ministry of Agriculture and Rural Development.

6. Producers of aquatic products specified in Point e Clause 2 Article 63 of the Forestry Law that are production enterprises of aquatic products or enterprises entering into association contracts with family households or individuals in aquatic product creation that have to pay service charges as prescribed in Clause 1 Article 58 herein.

Article 58. Methods for payment for forest environmental services

1. The user of forest environmental services shall pay service charges directly to the provider under mutual contract as per regulations in Point a and c Clause 3 Article 63 of the Forestry Law.

2. The user of forest environmental services shall make payment to the provider by transferring the service charge to the forest protection and development fund as prescribed in Point b Clause 3 Article 63 of the Forest Law in case the service provider and user fail to mutually enter into a contract for direct payment of forest environmental services.

Article 59. Service charge rates and determination of forest environmental service charges

1. The rate for forest environmental service charge payable by hydroelectricity producers is VND 36 per kwh of commercial electricity. Electricity output used for calculation of forest environmental service charge is the one sold to electricity buyers by hydroelectricity producers under electricity sale contracts.

The forest environmental service charge amount payable in a payment period shall be equal to the commercial electricity production (kwh) within the same period multiplied by the charge rate per kwh (VND 36/kwh).

2. The rate for forest environmental service charge payable by clear water suppliers is VND 52 per cubic meter of commercial water. Water volume used for calculation of forest environmental service charges is the one sold to consumers by the clear water supplier.

The forest environmental service charge amount payable in a payment period shall be equal to the water volume (m³) generated within the same period multiplied by the charge rate per cubic meter of water (VND 53/m³).

3. The rate for forest environmental service charge payable by industrial producers is VND 50 per cubic meter of water used from water sources. Water volume used for calculation of forest environmental service charges is the volume of water used by the industrial producer measured by the water meter or volume of water permitted for use by a competent authority or the one specified in the water sale document between the industrial producer and water trader.

The forest environmental service charge amount payable in a payment period shall be equal to the volume of water (m³) used by the industrial producer multiplied by the charge rate per cubic meter of water (50 VND/m³).

4. The rate for forest environmental service charge payable by providers of ecotourism, hospitality and entertainment services specified in Point d Clause 2 Article 63 of the Forestry Law shall not be under 1% of their total realized revenue in a payment period; the particular charge rate shall be determined based upon conditions in reality under an agreement between the provider and user of forest environmental services.

5. The rate for forest environmental service charge payable by production enterprise of aquatic products or enterprise producing aquatic products under association agreement with family households or individuals specified in Point e Clause 2 Article 63 of the Forestry Law shall not be under 1% of their total realized revenue in a payment period; the particular charge rate shall be determined based upon conditions in reality under an agreement between the provider and user of forest environmental services.

6. When average retail prices of electricity or water specified in Clause 1, 2 and 3 this Article vary or drop by 20%, the Ministry of Agriculture and Rural Development shall send proposals of adjustments to equivalent forest environmental service charges to the Government for approval.

Section 2. DETERMINATION OF FOREST AREA USED FOR PROVISION OF FOREST ENVIRONMENTAL SERVICES ENTRUSTED TO FOREST PROTECTION AND DEVELOPMENT FUND

Article 60. Bases for forest area determination

1. Results of periodic forest stocktaking and inspection

2. Results of annual forest development monitoring

3. Drainage basic maps of the place for provision of forest environmental services

4. Results of payment for forest environmental services in the preceding year

Article 61. Making maps of payment for forest environmental services

1. The provincial forest protection and development fund shall take charge and cooperate with the commune-level Forest Ranger Department and People's Committee in making annual map for payment of forest environmental service charges applied to family households, individuals and community, commune-level People's Committees and other organizations managing forests as assigned by the State according to consolidation of commune-level maps for results of forest stocktaking and forest development monitoring and maps of drainage basins in place of forest environmental service provision. Contents of such maps are specified in Appendix IV issued thereto.

2. The provincial forest protection and development fund shall take charge and cooperate with the Forest Protection Department and organizations owning forests in making annual map for payment of forest environmental service charges according to consolidation of maps for results of forest stocktaking and forest development monitoring provided by such forest owners and maps of drainage basins in place of forest environmental service provision.

3. Costs for making maps of payment for forest environmental services and maps of drainage basins in place of forest environmental service provision shall be allocated from funding for management of the provincial forest protection and development fund or forest owners that are organizations or other legal funding sources.

Article 62. Determination of forest area get paid for provision of forest environmental services of family households, individuals or community; commune-level People's Committees and other organizations assigned to manage forests by the State

1. The provincial forest protection and development fund shall take charge and cooperate with the Forest Ranger Department in determining the forest area got paid for provision of forest environmental services in the preceding year of family households, individuals, community, commune-level People's Committees and other organizations assigned to manage forests by the State according to update on maps of payment for forest environmental services provided by the result of forest development monitoring in the preceding year before February 15 every year.

The provincial forest protection and development fund shall cooperate with the Forest Ranger Department in checking and verifying the forest area being paid for forest environmental service provision in the preceding year if any petition is raised before March 01 every year.

2. The provincial forest protection and development fund shall cooperate with the Forest Ranger Department in checking and verifying the forest area got paid for forest environmental service provision in the preceding year if any petition is raised before March 01 every year.

3. Costs for determining forest area that gets paid for forest environmental service provision shall be allocated from funding for management of the provincial forest protection and development fund or other legal funding sources.

Article 63. Determination of forest area that is paid for provision of forest environmental services of organizations

1. The provincial forest protection and development fund shall take charge and cooperate with the Forest Protection Department and forest owners that are organizations in determining the forest area that is paid for forest environmental service provision in the preceding year according to updates on maps of payment for forest environmental services upon consideration of the result of forest development monitoring in the previous year before February 15 every year.

2. The provincial forest protection and development fund shall cooperate with the Forest Protection Department and forest owners that are organizations in checking and verifying the forest area being paid for forest environmental service provision in the preceding year if any petition is raised before February 28 every year.

3. The provincial forest protection and development fund shall make a consolidated report on forest area that is paid for forest environmental services of organizations according to Form No.2 provided in Appendix V issued thereto as the basis for payment of forest environmental service charges before March 15 every year.

4. Costs for determining forest area that is paid for forest environmental service provision shall be allocated from funding for management of the provincial forest protection and development fund or organizations that are forest owners or other legal funding sources.

Section 3. MANAGEMENT AND USE OF FOREST ENVIRONMENTAL SERVICE CHARGES PAID DIRECTLY TO SERVICE PROVIDERS

Article 64. Signing and executing contracts for payment of forest environmental service charges

1. The provider of forest environmental services shall enter into a contract with the service user which specifies the service type, payment amount, payment time and payment method. The rate for service charges shall not be under the rate prescribed in Article 59 herein; the contract of payment for forest environmental services shall be made into 4 copies, each will be kept by the service provider, user, forest protection and development fund and Department of Agriculture and Rural Development.

2. The user of forest environmental services shall make payment directly to the service provider from the day on which the forest environmental service is provided under the contract of payment of forest environmental services.

Article 65. Use of forest environmental service charges

1. The provider of forest environmental services may decide use of proceeds from service provision after fulfilling financial obligations to the State as per law provisions.

2. In case such service provider is an organization, the proceeds from forest environmental services deducted from reasonable costs for implementation of the policy on payment for forest environmental services, including payments to the forest protector under a lump-sum contract shall be recorded as revenue of such provider and shall be used under finance law provisions applied to such organization.

Section 4. MANAGEMENT AND USE OF FOREST ENVIRONMENTAL SERVICE CHARGES TRANSFERRED THROUGH FOREST PROTECTION AND DEVELOPMENT FUNDS

Article 66. Entering into contracts for payment of forest environmental service charges

1. The user of forest environmental services shall enter in to an entrustment contract with the Vietnam forest protection and development fund if the forest area provided is on the drainage basin of administrative boundaries of 2 or more than 2 provinces.

2. The user of forest environmental services shall enter in to an entrustment contract with the provincial forest protection and development fund for if forest area provided is on the drainage basin of administrative boundaries of 1 province.

3. The contract for entrusted payment of forest environmental service charges shall be made according to Form No.1 provided in Appendix VI issued thereto.

Article 67. Executing contracts for payment of forest environmental service charges

1. The user of forest environmental services shall pay service charges from the day using such service.

2. The service user shall send a plan for transfer of forest environmental service charges of the following year to the forest protection and development fund according to Form No.2 provided in Appendix VI issued thereto before October 15.

3. The service user shall make a statistical report on payment of forest environmental service charges according to Form No.3 provided in Appendix VI issued thereto and send it to the forest protection and development fund together with this Decree within 15 days from the end day of each quarter.

4. The service user shall make payment on a quarter-basis; the payment period is 20 days from the end date of Quarter I, II and III and 45 days from the end date of Quarter IV.

5. The service user shall send a consolidated report on payment of forest environmental service charges to the forest protection and development fund according to Form No.4 with this Decree within 50 days from the end date of the year.

Article 68. Preparing plans for collection and use of forest environmental service charges and estimates of management expenditures

1. The Vietnam forest protection and development fund shall:

s) review and determine the forest area provided located on the drainage basin of administrative boundaries of 2 or more than 2 provinces and notify to the Ministry of Agriculture and Rural Development for announcement;

b) make a consolidated report on payment plans provided by users of forest environmental services in which the forest area provided is in administrative boundaries of 2 or more than 2 provinces and send a report on estimated money amount distributed to the provincial forest protection and development fund according to Form No.5 provided in Appendix V issued thereto before October 31 every year;

c) prepare a plan for collection and use of forest environmental service charges (hereinafter referred to as “service charge collection and use plan”) according to Form No.6 provided in Appendix VI issued thereto and estimates of management expenditures according to Form No.7 provided in Appendix VI issued thereto in Quarter VI every year and send them to the Management Board of Vietnam forest protection and development fund and the Ministry of Agriculture and Rural Development for approval purpose

2. The provincial forest protection and development fund shall:

a) review and determine the forest area provided and make a list of providers of forest environmental services.

b) make a consolidated report on payment of forest environmental service charges by service users.

c) prepare service charge collection and use plans according to Form No.8 provided in Appendix VI issued thereto and estimates of management expenditures according to Form No.9 provided in Appendix VI issued thereto in Quarter IV every year and send them to the Fund Management Board and provincial People’s Committees for approval purpose;

d) notify the service charge collection and use plan to the forest owner (organization), commune-level People's Committee and other organizations assigned to manage forests by the State as per law provisions and send the decision on approval for such plan issued by the provincial People's Committee to the Vietnam forest protection and development fund.

Article 69. Determination of forest environmental service charges

1. The Vietnam forest protection and development fund shall:

determine the money amount distributed to provincial forest protection and development funds according to the forest environmental service charge amount collected in reality and forest area on the drainage basin announced by the Ministry of Agriculture and Rural Development before December 31 every year.

2. The provincial forest protection and development fund shall:

a) determine the money amount paid to providers of forest environmental services in the previous year for payment to service providers according to the forest environmental service charge amount collected in reality and the result of determination of forest area that is paid for forest environmental service provision before March 31 every year;

b) send notification of forest environmental services charges to service providers according to Form No.10 and 11 provided in Appendix VI issued thereto before April 15 every year.

3. The forest owner that enters into a lump-sum contract for forest protection shall:

determine the money amount paid to the contractor according to the forest environmental charge amount received from the provincial forest protection and development fund before June 01 every year.

4. Determination of forest environmental service charges shall comply with regulations in Appendix VII issued thereto.

Article 70. Use of forest environmental service charges

1. In case of use by the Vietnam forest protection and development fund

a) Maximum 0.5% of total forest environmental service charge amount collected in a year shall be deducted as management funding for expenditure on operations of the fund machine. The particular deducted amount shall be specified in annual service charge collection and use plan of the fund approved by the Ministry of Agriculture and Rural Development. Expenditures on operations of the fund include:

Recurrent expenditures, including payment of salary, salary-based allowances and contributions to members of the Fund Operation Board, payment of remunerations for management to members of the Fund Management Board and Fund Control Board; payment of wages, payment for public services, stationery, information and communications; expenditures on meetings and conferences; payment of allowances for business trip and rent; payment for repair and maintenance of assets serving professional activities and infrastructure; payment for appraisal of programs/projects or appraisal in bidding; expenditure on money receipt and payment and expenditure on surveillance and other expenditures (if any);

Non-recurrent expenditures, including financial assistance in preparation of sustainable management plans and issuance of forest certificates; expenditure on review and determination of forest area provided under forest environmental service contracts; expenditure on conferences and training for improvement of professional skills; payment for purchase and repair of a massive quantity of assets for the fund operations and purchase of other specific equipment serving payment services; payment for dissemination and audit services and expenditure on inbound and outbout delegations (if any).

Expenditures and expenditure amount for operations of the fund shall be determined under current regulations. In case such expenditures and expenditure amount are not regulated by the law, the Vietnam forest protection and development fund shall specify expenditures and particular spending amount in the internal expenditure regulations according to its financial capability.

c) The management funding specified in Point a Clause 1 this Article is considered a source of revenue of the Vietnam forest protection and development fund and shall be used under the financial autonomy mechanism for public service providers.

d) After deducting the money amount used for management purpose, the Vietnam forest protection and development fund shall transfer the remaining forest environmental service charge amount to provincial forest protection and development funds in compliance with regulations in Clause 1 Article 69 herein;

dd) The money amount paid by users of forest environmental services whose receivers cannot be identified shall be distributed to provinces having the lowest rate of forest environmental services per 1 hectare or higher.

2. In case of use by provincial forest protection and development funds

a) Maximum 10% of total forest environmental service charge amount collected in a year shall be deducted as management funding for expenditure on operations of the fund machine. The particular deducted amount shall be specified in annual service charge collection and use plan of the fund approved by the provincial People’s Committees. Expenditures on operations of the fund include:

Recurrent expenditures, including payment of salary, salary-based allowances and contributions to members of the Fund Operation Board, payment of remunerations for management to members of the Fund Management Fund and Fund Control Board; payment of wages, payment for public services, stationery, information and communications; expenditures on meetings and conferences; payment of allowances for business trip and rent; payment for repair and maintenance of assets serving professional activities and infrastructure; payment for appraisal of programs/projects or appraisal in bidding; expenditure on money receipt and payment and expenditure on surveillance and other expenditures (if any);

Non-recurrent expenditures, including assistance in preparation of sustainable management plans and issuance of forest certificates; expenditure o review and determination of forest area provided under forest environmental service contracts; expenditure on conferences and training for improvement of professional skills; payment for purchase and repair of a massive quantity of assets for the fund operations and purchase of other specific equipment serving payment services; payment for dissemination and audit services and expenditure on inbound and outbout delegations (if any).

b) Spending and spending amounts for the fund operations, payment of allowances for concurrent position holding and financial support for management of other entities shall be supported by provincial People's Committees for provincial forest protection and development fund to cover expenditures as per current regulations. In case such expenditures and expenditure amount are not regulated by the law, the provincial forest protection and development fund shall specify such contents in the internal expenditure regulations according to its financial capability.

c) The management funding specified in Point a Clause 2 this Article is considered a source of revenue of provincial forest protection and development funds and shall be used under financial autonomy mechanism applied to public service providers.

d) Maximum 5% of total forest environmental service charge amount collected in a year shall be deducted for support to family households, individuals and communities with forests allocated or contracted for stable and permanent protection in case of natural disasters or droughts or in case the forest environmental service charge rate per allocated forest are is lower than that of the previous year and Director of the provincial forest protection and development fund shall prepare a support plan for the aforesaid entities which is then approved by the provincial People's Committee. The unused amount of forest environmental service charge deducted under approval in the year must be refunded to the provider of forest environmental services;

dd) After deducting the used money amount as prescribed in Point a and d Clause 2 this Article, the provincial forest protection and development fund shall pay the remaining amount of forest environmental service charge to the provider of forest environmental services as per regulations in Clause 2 Article 69 herein;

e) With regard to the forest environmental service charge paid by the user of forest environmental services whose receiver cannot be identified, the forest protection and development fund shall send proposals of distribution of such charge to service providers having the minimum average rate for service charge per hectare to the provincial People’s Committee for approval; give assistance in forest protection and development, plant trees in a scattered manner and forests for scenery purpose in the zone of forest environmental service provision and disseminate policies on improvement of capacity to implement the policy on payment for forest environmental services.

3. In case of use by forest owners

a) Forest owners that are family households, individuals and communities may wholly use forest environmental service charges for the purpose of protecting and developing forests and raising their living standard;

b) Forest owners that are enterprises may manage and use forest environmental service charges which are considered their revenue as per law provisions on finance applied to enterprises;

c) Forest owners that are organizations not specified in Point b Clause 3 this Article and do not enter into lump-sum contracts for forest protection or only have a part of forest area protected under lump-sum contracts may wholly use the forest environmental service charges for forest protection and development purpose, including the following activities: preparation and implementation of plans for sustainable forest management and forest certificate issuance; construction of bio-forestry works and technical works serving forest protection and development; patrol and eradication of hot spots and action against violations related to forest protection and development; purchase of assets and instruments and maintenance and repair of assets and equipments used for forest protection; recording and mapping of payment for forest environmental services, inspection, supervision, assessment, acceptance, dissemination, encouragement, training, practice, conferences and other activities serving payment for forest environmental services; payment of wages and other amounts paid as wages to persons not getting paid from state budget and other activities serving forest management, protection and development.

Charges for provision of forest area that is protected by forest owners themselves shall be considered a source of their revenue and managed by them as per financial law provisions applicable to each organization type;

d) Forest owners that are organizations specified in Point c Clause 3 this Article and enter into lump-sum contracts for forest protection with family households, individuals or communities may deduct 10% of forest environmental service charges for forest area under the protection contracts mentioned above for the purpose of managing forests with forest environmental service provision, including the following activities: construction of bio-forestry works and technical works serving forest protection and development; patrol and eradication of hot spots and action against violations related to forest protection and development; purchase of assets and instruments and maintenance and repair of assets and equipments used for forest protection; recording and mapping of payment for forest environmental services, inspection, supervision, assessment acceptance, dissemination, encouragement, training, practice, conferences and other activities serving payment for forest environmental services; payment of wages and other amounts paid as wages to persons not getting paid from state budget and other activities serving forest management, protection and development.

Deducted amount used for forest management shall be considered a source of revenue of the forest owner and managed under financial law provisions applicable to each type of organization.

After deducting the money amount used for management purpose, forest owners shall pay the remaining forest environmental service charge amount to the contractors in compliance with Clause 3 Article 69 herein.

4. Commune-level People's Committees and other organizations assigned to manage forest by the State shall send plans for use of forest environmental service charges for forest protection and development purpose to district-level People’s Committees for approval purpose which are then sent to the provincial forest protection and development fund. Expenditures include:

a) Payment to forest guards;

b) Expenditure on oil and petrol for vehicles used for forest patrol and inspection;

c) Allowances given to persons mobilized for preventing and fighting against forest destruction and fire fighting for damaged forests;

d) Payment for night shift, extra work and concurrent jobs;

dd) Expenditure on dissemination and education of law and training in professional skills for forest protection and management;

e) Expenditure on conferences and seminars and emulation and commendation;

g) Other expenditures

Article 71. Advanced payment, payment and final statement of forest environmental service charges

1. Advanced payment of forest environmental service charges

According to the approved service charge collection and use plan, the provincial forest protection and development fund shall make an advanced payment to the provider of forest environmental services and allocate money to entities assigned to assist such provincial fund in payment. The provincial People's Committee shall regulate times for advanced payment and advanced payment rate.

2. Payment of forest environmental service charges

a) According to realized service charges collected in a year and the forest area getting paid for forest environmental service provision, the provincial forest protection and development fund or entities assigned to assist in payment shall make payment to providers of forest environmental services before June 01 of the following year.

b) After completing their assignments, entities mentioned above shall send a consolidated report made according to Form No.12 and 13 provided in Appendix VI issued thereto to the provincial forest protection and development fund with payment proofs before June 15 of the following year;

c) According to the money amount used for management purpose, expenditures and spending amount approved by the provincial People’s Committee and lawful spending proof, the provincial forest protection and development fund shall repay entities assigned to assist in making payment to service providers.

3. Methods for advanced payment and payment of forest environmental service charges

a) In case service providers are organizations, advanced payment and payment shall be made by bank transfer;

b) In case service providers are family households, individuals or communities, advanced payment and payment shall be made by bank transfer or in cash. Advanced payment and payment by bank transfer under favorable conditions are encouraged by the State.

4. Statement of forest environmental service charges

a) The forest protection and development fund shall close the accounting book in December 31 every year and make a report on final statement according to Form No.14 provided in Appendix VI issued thereto which may be amended until June 30 of the following year and sent to the supervisory authority before July 15 of the following year;

b) Forest owners that are organizations making lump-sum contracts for forest protection shall prepare a report on final statement of forest environmental service charges according to Form No.15 provided in Appendix VI issued thereto and send it to the supervisory authority and provincial forest protection and development fund before June 30 of the following year;

c) Commune-level People’s Committees and other organizations assigned to manage forests by the State shall close the accounting book, make and send reports as per regulations on financial management applied to each organization type;

d) The Ministry of Agriculture and Rural Development shall verify the report on final statement of forest environmental service charges provided by the Vietnam forest protection and development fund;

dd) The Department of Agriculture and Rural Development (in case the provincial forest protection and development fund is affiliated with the Department) or Department of Finance (in case the provincial forest protection and development fund is affiliated with the provincial People’s Committee) shall verify the report on final statement of forest environmental service charges provided by the provincial forest protection and development fund;

e) Supervisory authorities shall verify the report on final statement of forest environmental service charges provided by organizations (forest owners) under their management;

g) Commune-level finance authorities shall verify the report on final statement of forest environmental service charges provided by commune-level People’s Committees and other organizations for forest management as assigned by the State;

h) Time limit for verification of final statement of forest environment service charges shall be specified in compliance with current regulations on financial mechanism applied to each organization type.

Article 72. Financial inspection, supervision and publicity

1. Inspection and supervision of management and use of forest environmental service charges

d) The Ministry of Agriculture and Rural Development shall take charge and cooperate with the Ministry of Finance in carrying out local inspection and visit inspection to the Vietnam forest protection and development fund;

b) The Department of Agriculture and Rural Development (in case the provincial forest protection and development fund is affiliated with the Department) or Finance Department (in case the provincial forest protection and development fund is affiliated with the provincial People’s Committee) shall take charge of carrying out inspection of provincial forest protection and development fund;

c) The Vietnam forest protection and development fund shall carry out inspection and use of forest environmental service charges by provincial forest protection and development funds and payment of forest environmental service charges by service users;

d) The provincial forest protection and development fund shall carry out inspection of management and use of forest environmental service charges by relevant entities in provinces and payment by service users;

dd) Forest owners shall carry out inspection of lump-sum contractors;

e) Other agencies, organizations and the whole society shall participate in supervision of regulatory agencies, organizations, family households and communities involved in management and use of forest environmental service charges. 2. Finance publicity

a) The forest protection and development fund and organizations owning forests, commune-level People's Communities and other organizations for forest management as assigned by the State shall publish financial information as per provisions of the finance law;

b) Lists of payees, payment amounts and payment plans shall be published every quarter and every year under internal democracy regulations in the following forms: posting up such lists at the office of commune-level People's Committees and place of community’s meetings or public places or announcing on commune-level radiobroadcast or announcing such lists in commune-level conferences.

Section 5. REMISSION OF FOREST ENVIRONMENTAL SERVICE CHARGES

Article 73. Entities eligible for remission of forest environmental service charges

1. Producers and traders that are affected by natural disasters, fire, earthquakes, storms, floods, tsunami or landslide which cause damage to their capital and assets resulting in loss of capacity or suspension of business operation and are not mandatory participants in asset insurance as per law provisions.

2. Traders and producers incapacitated or died or claimed to be dead or missing who have no assets to make payment or their guardian or inheritor are incapable to repay their debts.

3. Production or trading organizations receiving dissolution or bankruptcy decisions from competent authorities under law provisions that have neither capital nor assets to pay to providers of forest environmental services

Article 74. Remission rates

1. In case of service charge exemption: Organizations and individuals may be entitled to exemption of 100% forest environmental service charges if the rate of capital and asset loss is from 70% to 100% compared to total asset or production and trading plans or cases specified in Clause 2 and 3 Article 73 herein.

2. In case of service charge reduction: Organizations and individuals may receive 50% reduction in forest environmental service charges if the rate of capital and asset loss is from 40% to less than 70% compared to total asset or the production and trading plan.

Article 75. Applications and procedures for remission of forest environmental service charges

1. Applications for remission of forest environmental service charges

If any force majeure event specified in Article 73 herein occurs, the user of forest environmental service shall send an application for remission of forest environmental services (hereinafter referred to as “application for service charge remission”) to the Department of Agriculture and Rural Development in case the forest area provided is within administrative boundaries of one province or to General Department of Forestry if the forest area provided is in administrative boundaries of 2 or more than 2 provinces. An application for service charge remission includes:

a) An application form for service charge remission prepared the service user or his/her guardian or inheritor which specifies causes for force majeure event, rate of capital and asset loss, remission subject and remission time;

b) An inventory of loss or damage of capital and assets and a copy of dissolution or bankruptcy decision (if any) issued by competent authorities as per law provisions for service users that are organizations;

c) In case the service user is individual, in addition to application form specified in Point a Clause 1 this Article, the guardian shall provide a copy of court's decision in case of incapacitated individual or the inheritor must provide copies of death certificate or missing certificate in case such individual is claimed to be dead or missing.

2. Procedures for remission of forest environmental service charges

a) If the application is sent directly, the receiving authority shall notify the applicant of the satisfaction of his/her application within a half-day from the receiving time.

b) If the application is sent by post or through the Internet, the receiving authority shall notify in writing to the applicant of satisfaction of his/her application within 2 working days from the day on which such application is received;

c) The receiving authority shall establish an inspectorate within 5 working days from the day on which the application is received;

d) The inspectorate shall carry out inspection and verification within 5 working days from the day on which the establishment decision is issued;

dd) The inspectorate shall complete and send a report to the provincial People’s Committee for approval for service charge remission if the forest area provided for the service user is in administrative boundaries of one province or to the Ministry of Agriculture and Rural Development in case the forest provided for the service user is located within administrative of 2 more than 2 provinces;

e) Decisions on service charge remission shall be sent to the forest protection and development fund and users of forest environmental services for implementation.

Section 6. DUTIES AND ORGANIZATION STRUCTURE OF FOREST PROTECTION AND DEVELOPMENT FUNDS

Article 76. Duties of forest protection and development funds

1. The Vietnam forest protection and development fund shall:

a) review, sign contracts, receive and manage forest environmental service charge amounts entrusted by service users;

b) encourage, receive and manage entrusted financial sources, sources of voluntary aids, funds or contributions, money amounts entrusted by domestic and foreign organizations or individuals and other legal funding sources other than state budget;

c) receive and manage money amounts used for replacement afforestation;

d) appraise programs or projects or non-planned activities funded by the fund then send them to the competent authority for approval purpose;

dd) play the role of a contact point to help the General Department of Forestry carry out inspection and supervision of collection and distribution of forest environmental service charges to provincial forest protection and development funds under the guidance of the Vietnam fund;

e) provide guidelines for, check and monitor entities getting paid from the Vietnam forest protection and development fund;

g) comply with law regulations on finance, statistics, accounting and audit and send reports on management and use of forest environmental service charges by the fund to the competent authority;

h) send proposals of promulgation or amendment of regulations on entities or activities eligible to be supported by the Vietnam fund to competent regulatory agencies;

i) send annual consolidated report on collection and use of forest environmental service charges nationwide;

k) disseminate the policy on payment for forest environmental services in local and central areas;

l) perform other duties assigned or specified by competent regulatory agencies.

2. Provincial forest protection and development funds shall:

a) review, sign contracts, receive and manage forest environmental service charge amounts entrusted by service users;

b) encourage, receive and manage entrusted financial sources, sources of voluntary aids, funds or contributions, money amounts entrusted by domestic and foreign organizations or individuals and other legal funding sources other than state budget;

c) receive and manage money amounts used for replacement afforestation;

d) represent providers of forest environmental services to enter into contracts with service users that have to make entrusted payment to them;

dd) play the role of a contact point to help competent regulatory agencies carry out inspection and supervision of management and use of funding for management activities and payment to contractors by forest owners making lump-sum contracts for forest protection;

e) appraise programs or projects or non-planned activities funded by provincial funds then send them to the competent authority for approval purpose;

g) provide guidelines for, check and monitor entities paid by provincial funds;

h) comply with law regulations on finance, statistics, accounting and audit and send reports on management and use of forest environmental service charges by the fund to the competent authority;

i) send proposals of promulgation or amendment of regulations on entities or activities eligible to be supported by provincial funds;

k) send annual report on collection and use of forest environmental service charges made according to Form No.16 provided in Appendix VI issued thereto to provincial People’s Committees and Vietnam forest protection and development fund;

l) disseminate relevant law provision policies;

m) As for provinces and centrally-affiliated cities without forest protection and development fund due to unfavorable conditions for establishment, agencies replacing provincial forest protection and development funds shall take responsibility to perform duties specified in this Clause.

Article 77. Organization structure

1. Central fund organization

a) The Vietnam forest protection and development fund (hereinafter referred to as “the central fund”) shall be established and managed by the Ministry of Agriculture and Rural Development. The fund has legal status, its own stamp and an account opened at a bank and State Treasury as per law provisions and operates like a public service provider;

b)The organization structure for management and operation of the fund include a Fund Management Board, Control Board, Operation Board and professional divisions;

c) The Fund Management Board, Control Board and Operation Board shall be specified in regulations on fund operation issued by the Minister of Agriculture and Rural Development.

2. Provincial fund organization

a) The provincial forest protection and development fund (hereinafter referred to as “provincial fund”) shall be established by Chairperson of the provincial People’s Committee upon consideration of demands and capacity to mobilize financial sources for forest protection, development and management. Such fund is affiliated to provincial People’s Committee or the Department of Agriculture and Rural Development. The fund has legal status, its own stamp and an account opened at a bank and State Treasury as per law provisions and operates like a public service provider;

b) The organization structure for management and operation of the fund include a Fund Management Board, Control Board, Operation Board and professional divisions;

c) The Fund Management Board, Control Board and Operation Board shall be specified in regulations on fund operation issued by the Chairperson of provincial People’s Committee.

Article 78. Relationship between central and provincial fund

1. Duties of central fund:

a) Distribute forest environmental service charges and other entrusted amounts to the provincial fund;

b) Offer financial or technical assistance to the provincial fund;

c) Offer training in professional skills to provincial fund officers;

d) Organize programs or activities for accumulating and learning experience in management skills among provincial funds;

dd) Carry out inspection and supervision of management and use of funding by provincial funds

2. Duties of provincial funds:

a) Receive, manage and use financial or technical assistance from the central fund;

b) Undergo inspection and supervision by the central fund in terms of management and use of funding provided from such fund;

c) Send reports on management and use of funding provided to the central fund which are then included in the report sent to the Ministry of Agriculture and Rural Development.

Section 7. FINANCIAL RESOURCES AND MANAGEMENT AND USE OF FINANCIAL RESOURCES OF FOREST PROTECTION AND DEVELOPMENT FUNDS

Article 79. Financial resources

1. Financial resources of central fund

a) Forest environmental service charges collected, money entrusted by domestic and foreign entities under the entrustment contracts related to forest protection and development;

b) Money for replacement afforestation due to forest repurposing;

c) Voluntary aids, funds and contributions of domestic and foreign entities;

d) Interests on bank deposits;

dd) Legal financial resources other than state budget

2. Financial resources of provincial funds

a) Forest environmental service charges collected, money entrusted by domestic and foreign entities under the entrustment contracts related to forest protection and development;

b) Money for replacement afforestation due to forest repurposing;

c) Voluntary aids, funds and contributions of domestic and foreign entities;

d) Sources of aids from the central fund

dd) Interests on bank deposits;

e) Legal financial resources other than state budget

Article 80. Expenditures of forest protection and development funds

1. Expenditures of the central fund

a) Distribution of forest environmental service charges to provincial funds and performance of entrusted tasks under entrustment contracts from funding sources specified In Point a Clause 1 Article 79 herein;

b) Expenditure on replacement afforestation due to forest repurposing as regulated from funding sources specified in Point b Clause 1 Article 79 herein;

c) Financial assistance given to programs, projects or non-planned activities from funding sources specified in Point c, d and dd Clause 1 Article 79 herein, including financial support for fighting against forest destruction and illegal production, trading and transport of forest products; dissemination and implementation of policies on forest protection and development; experiments and universalization of forest protection and development and sustainable forest management; experiments and use of new forestry plant varieties; scattered afforestation; development of non-timber forest product on forestry land; training of human resources for forest protection and development to provincial level and other activities regarding forest protection and development;

d) Financial assistance given to provincial funds from funding sources specified in Point c, d and dd Clause 1 Article 79 herein;

dd) Expenditure on operation of the fund from funding sources for management of forest environmental services specified in Point a Clause 1 Article 70 herein or from money entrusted for management under entrustment contracts, interests on bank deposits and other legal financial resources as per law regulations;

Expenditures and expenditure rates for operation of the fund shall be determined under current regulations. In case such expenditures and expenditure rates are not regulated by the law, the provincial forest protection and development fund shall specify such contents in the internal expenditure regulations according to its financial capability and decide spending and take legal responsibility for such spending.

2. Expenditures of provincial funds

a) Payment for forest environmental services and expenditure on performance of tasks specified in entrustment contracts from funding sources mentioned Point a Clause 2 Article 79 herein;

b) Expenditure on replacement afforestation due to forest repurposing as regulated from funding sources specified in Point b Clause 2 Article 79 herein;

c) Financial assistance given to programs, projects or non-planned activities from funding sources specified in Point c, d and e Clause 2 Article 79 herein, including financial support for fighting against forest destruction and illegal production, trading and transport of forest products; dissemination and implementation of policies on forest protection and development; experiments and universalization of forest protection and development and sustainable forest management; experiments and use of new forestry plant varieties; scattered afforestation; development of non-timber forest product on forestry land; training of human resources for forest protection and development in provinces and other activities regarding forest protection and development;

dd) Expenditure on operation of the fund from funding sources for management of forest environmental services specified in Point a Clause 2 Article 70 herein or from money entrusted for management under entrustment contracts, interests on bank deposits and other legal financial resources as per law regulations

Expenditures and expenditure rates for operation of the fund shall be determined under current regulations. In case such expenditures and expenditure rates are not regulated by the law, the provincial forest protection and development fund shall specify such contents in the internal expenditure regulations according to its financial capability and decide spending and take legal responsibility for such spending.

Article 81. Preparation of financial plans, financial reports and statements

1. The central fund shall:

a) prepare annual financial plan including plan on collection and use of forest environmental service charges and other financial resources and estimate of expenditures for the fund operation and send it to the Fund Management Board for consideration which is then submitted to the Ministry of Agriculture and Rural Development for approval;

b) send annual financial reports and annual statements as per current law provisions on finance and accounting to the Ministry of Agriculture and Rural Development for approval purpose.

2. Provincial funds shall:

a) prepare annual financial plan including plan on collection and use of forest environmental service charges and other financial resources and estimate of expenditures for the fund operation and send it to the Fund Management Board for consideration which is then submitted to provincial People’s Committees for approval;

b) make annual financial reports and annual statements as per current law provisions on finance and accounting. The Department of Agriculture and Rural Development shall verify statements provided by departmental-affiliated funds while the Finance Department shall verify statements provided by funds affiliated to provincial People’s Committees.

3. Permission for financial autonomy given to central and provincial funds shall comply with Government's regulations on autonomy mechanism applied to public service providers operating in economy fields or other fields and guiding documents thereof.

Article 82. Accounting, audit, management of assets and financial publicity

Various-level forest protection and development funds shall perform accounting, audit and management of assets and financial publicity as follows:

1. Carry out the accounting process under the current accounting regime applied to service providers

2. Manage and use assets in compliance with provisions of the Law on Management and use of public assets and guiding documents thereof.

3. Encourage independent audit for making financial reports

4. Publish financial information in compliance with law provisions on finance in force and encourage self-assessment of the result of implementation of the policy on forest environmental services.

Section 8. MANAGEMENT OF PROGRAMS, PROJECTS OR NON-PLANNED ACTIVITIES SUPPORTED BY FUNDS

Article 83. Methods for provision of financial assistance and activities entitled to financial assistance

1. Non-refundable aids or partially refundable aids shall be given to organizations, family households, individuals and communities running programs, projects or non-planned activities prescribed in Clause 2 this Article.

2. Activities entitled to financial assistance

a) Financial assistance from the central fund shall be given to activities specified in Point c Clause 1 Article 80 herein;

b) Financial assistance from the provincial funds shall be given to activities specified in Point c Clause 2 Article 80 herein;

Article 84. Approval for programs, projects or non-planned activities

1. Approval by central fund

a) Organizations, family households, individuals and communities demanding financial assistance shall send an application form for financial assistance with the dossier of the program, project or non-planned activity to the Fund Operation Board directly or by post before December 31 every year;

b) The Fund Operation Board shall take charge and cooperate with competent authorities in carrying out appraisal of such application and send a report to the Fund Management Board for consideration then submit it to the Ministry of Agriculture and Rural Development for approval before February 25 every year;

c) The Director of the fund shall send the result to the applicant by post within 3 working days from the day on which the Ministry of Agriculture and Rural Development grants approval for such program/project or non-planned activity.

2. Approval by provincial funds

a) Organizations, family households, individuals and communities demanding financial assistance shall send an application form for financial assistance with the dossier of the program, project or non-planned activity to the Fund Operation Board directly or by post before December 31 every year;

b) The Fund Operation Board shall take charge and cooperate with competent authorities in carrying out appraisal of such application and send a report to the Fund Management Board for consideration then submit it to the provincial People’s Committees for approval;

c) The Director of the fund shall send the result to the applicant by post within 3 working days from the day on which the provincial People’s Committee grants approval for such program/project or non-planned activity.

Article 85. Running programs, projects or non-planned activities

1. Family households, individuals and communities shall run programs, projects or non-planned activities approved by the competent authority.

2. The management board for running such programs, projects or non-activities shall be established as required by the competent authority.

Article 86. Inspection and assessment of program, project or non-planned activity running

1. By the central fund

a) The Fund Operation Board shall provide guidelines for carrying out inspection of implementation of programs, projects or non-planned activities supported by the central fund on a periodic or irregular basis;

b) Where necessary, the Fund Operation Board may hire a consultancy for inspection and assessment of implementation of programs, projects or non-planned activities supported by the central fund.

2. By provincial funds

a) The Fund Operation Board shall provide guidelines for carrying out inspection of implementation of programs, projects or non-planned activities supported by provincial funds on a periodic or irregular basis;

b) Where necessary, the Fund Operation Board may hire a consultancy for inspection and assessment of implementation of programs, projects or non-planned activities supported by provincial funds.