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MINISTRY Of fORESTRY      SOCIALIST REPUBLIC Of VIETNAM
   No.595/KH-XNK         Independence-freedom-Happiness
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                                  Hanoi, 24 March, 1994

GUIDANCE
ON fORMULATING PLAN fOR EXPORT AND IMPORT
Of WOODEN ARTICLES AND fOREST PRODUCTS
IN 1994
(Issued in conjunction with the Decision No 624/ TTG dated 29 December, 1993 of the Prime Minister)

• A. IN RESPECT Of WOODEN ARTICLES AND fOREST PRODUCTS ALLOWABLY TO BE EXPORTED.

  • 1. All wooden articles and forest products included in the list of products issued in conjunction with the Decision No.624/ TTG dated 29 December, 1993 and accompanied by other documents of the Ministry of forest providing in details the names of products which are among the groups of products stated in the Decision No 624/ TTG, shall be permitted for export with the quantity of products, in term of round wood, corresponding to export quota assigned in 1994 to the business.

  • 2. Consumption norms of wooden raw materials and other forest products like big rattan, rattan etc. for each sort of export products shall be truly and objectively determined by the business's norms council, basing on a scientific method, in accordance wi th standing regulations.

    The business's norms council shall be fully responsible for the norms approved and issued by the council and these norms shall be timely reported to the Ministry of forestry and the Ministry of Trade.

  • 3. Other wooden articles and forest products which are not included in the list of products as stated at Point 1, Part A above shall be particularly considered and settled, provided that they may be sold to foreign customers though purchasing contracts wi th higher prices compared with those at domestic market without causing any negative effect on the activities related to production, living and cultural life at home.

    The authorized bodies responsible for necessary consideration and settlement shall be the Ministry of Trade. The Ministry of forestry shall, in more complicated cases, submit to the Prime Ministry for final decision following the unity of views and discus sion conducted by the Ministry of forestry and the Ministry of Trade.

  • 4. The export, import of wooden articles and forest products or forest animals etc. shall be complied with the Article 25 of the Law on forest protection and development approved by the National Assembly of the Socialist Republic of Vietnam on 12 August, 1991.

• B. IN RESPECT Of RAW MATERIALS fOR PRODUCTIONS Of WOODEN ARTICLES AND fOREST PRODUCTS fOR EXPORT:

  • 1. Home exploited raw materials (wood from natural forest and wood from planted forest etc.) shall be permitted by a competent body of the Ministry of forestry (this Ministry shall approve the designing for exploitation of wood from natural forest; the lo cal office of forestry or the Office of Agriculture and forestry shall approve the designing and determine the source of wood from planted forest and other by products). At the same time, these raw materials shall be subject to the inspection and control of the specialized bodies of the forestry branch which are appropriate to the functions and duties of those bodies.

  • 2. Rubber raw materials exploited from old rubber forests shall be approved and permitted by the Ministry which manages the business for exploitation.

  • 3. Raw materials imported from abroad (wood, big rattan, rattan etc.) shall be permitted by the Ministry of forest and the Ministry of Trade and by subject to the inspection and control of the local Customs and forestry offices.

  • 4. In stock raw material: (round wood, sawn wood ect.), if any, shall be subject to the inspection of the local branch offices of forestry in co-ordination with other functional bodies (market, management, customs, taxation, finance etc.). And at the same time, comparison shall be made between the bills and the real quantity of wood which is still being kept in stock and the exact quantity shall be re-determined. Any breaches shall be settled in accordance with standing regulations. The time to determine in stock wood shall be 31 December, 1993.

  • 5. Business shall be encouraged to make full use of groups of wood which are of low quality such as wood generated from exploitation, wood from planted forest, rubber wood, imported wood and other raw materials such as big rattan, rattan, bamboo and its v arieties, plastic, metal etc. to be used in combination with wood for production of different export articles which are both abundant, diversified in models and may reduce the use of wood exploited from natural forests.

  • 6. Business shall be encouraged to manufacture export products which have small size, use little raw materials and are made from different groups of wood (from group 5 to group B) or the wood which is rarely used at home, or to make full use of raw materi als for manufacturing various sorts of products for export (by joining, pressing or sticking etc.).

  • 7. Business shall be permitted to use wood of group I, II or rare and precious wood of group II. A stated in the Decree No 18 HDBT for production of fine art and handicraft articles or for high value cultural, artistic and architectural projects etc. The use of wood beyond the regulations of the Decision No 624/ TTG shall be approved by the Ministry of forestry.

  • 8. Wooden articles for export made of wood from planted forest, rubber wood, imported wood and in-stock wood shall not be taken into account in export quota in 1994.

  • + The export quota in 1994 towards wooden products shall be taken into account only for those ones made of wood from natural forest which is permitted to be exploited in 1994.

• C. IN RESPECT Of ALLOCATION Of EXPORT QUOTA TOWARDS WOODEN PRODUCTS IN 1994.

  • 1. General principles:
    • 1.1. Monopolization shall be prevented to avoid any authoritarian behavior in export and import of wood and forest products. Healthy competition within framework of the law and under the management of the Ministry of forestry and the Ministry of Trade sha ll be ensured.

    • 1.2. The form of ownership of the business shall not be discriminated: Accordingly, all state-owned businesses established in conformity with the Decree No 388 HDBT; all business operation in conformity with the Law on foreign Investment in Vietnam (which were granted licenses and really put into operation and their business lines were changed being able to generate products which are appropriate to the Decision No 624/TTG and relevant documents of the Ministry of forestry guiding its implementation; all business which belong to non-state sector operating in accordance with the Law on Company, the Law on Private Business etc., shall be considered for being granted export and import quota in 1994 towards wooden articles and forest products provided that th ey are capable of manufacturing and trading in export and import following careful consideration.

    • 1.3. Trading in quota shall be prohibited.
      • + The Ministry of forestry shall be responsible for considering manufacturing capabilities of the business and shall not allocate quota to those businesses which are not capable of manufacturing wooden products with export standards; or shall not allocate quota to those businesses where the activities related to the manufacturing and export of goods are ineffectively conducted though they have got available raw materials and processing units.

      • + Any businesses situated in the localities where exist forest which have no adequate capacity to manufacture complete products for export may and should enter into joint venture or association with other businesses and other localities to participate in exporting wooden articles and forest products under the form of selling raw materials, processing deal contract and processing rough products.

      • + Any businesses directly exploiting wood and forest product, manufacturing wooden articles and processing forest products which meet export standards shall be permitted to conclude foreign trade contracts which were granted license to trade in export and import towards the commodities conventionally categorized by code names, shall be given priority to be allocated export quota, and to directly export products manufactured by themselves.

      • + few businesses are capable of manufacturing wooden articles and processing forest products which meet export standards by have not been granted license to trade in direct export and import. In this case, quota in small quantity may also be considered an d allocated to these businesses in order to enable them to go on manufacturing, especially to those units where handicraft and fine art articles are made by using little material which ensure high export value and the export of these articles may be condu cted by consignment contracts signed with those businesses which are officially granted license for export and import.

      • + Some businesses specializing in export and import have directly exported and imported wooden articles and forest products; have stable customers; have full conditions, experiences, information, communication and transaction with foreign customers etc., shall also be considered for being allocated quota to work as consignees in export for other businesses.

      • + Those businesses effectively conducting the export shall be considered for being allocated additional quota. Contrarily, those businesses ineffectively conducting the export shall be considered for either cutting down the quota or stopping from export a nd import of wooden products.
  • 2. Statement on export result.
    • + At the end of each quarter, those businesses being allocated export and import quotas towards wooden articles and forest products shall be liable to report to the Ministry of forestry and Ministry of Trade about the result of implementing export, import activities in that quarter (e.g. products to be exported, quantity already exported, and respectively, quantity of raw material for each category of wood already used compared with conventional norms, sale prices of products and export value already gain ed, efficiency etc.). And at the same time, the report refers to the contracts which were already signed and real export capacity in the next quarter and proposal, if any, to the state management bodies.

    • + Any businesses fail to comply with the above mentioned regulations shall be not permitted to go on exporting wooden products and remaining quota, if any, shall be taken by the Ministry of forestry and the Ministry of Trade to allocate to others.
  • 3. Those businesses which are allocated export and import quotas towards wooden:
    • + first time: shall be directly notified by the Ministry of forestry and the Ministry of Trade, in writing, in the early April, 1994.
    The Ministry of forestry and the Ministry of Trade shall base on the ceiling limit of the quantity of wooden products to be exported in 1994 which are permitted by the Prime Minister; on the development of the situation of export towards wooden products; on the capacity of businesses and the demand of the foreign market for wooden articles and forest products and on the compliance with the policies and obligation of the businesses before the state, to continue the consideration, the settlement and the all ocation of quota to the businesses with a view to creating more employment for the laborers and gradually raising the productive capabilities of the businesses for production of exports and expanding trading relations with foreign countries.

• for the Ministry of forestry
• Minister

• NGUYEN QUANG HA
• (Signed)