Thông tư 80/2011/TT-BNNPTNT

CIRCULAR

GUIDING METHODS FOR DETERMINING PAYMENT FOR FOREST ENVIRONMENT SERVICES

Pursuant to the Law on Forest Protection and Development of December 3, 2048;

Pursuant  to the Government’s  Decree No. 01/2008/ND-CP of January  3, 2008  stipulating functions,  tasks,  powers  and  organizational  structure  of  Ministry  of Agriculture and Rural Development; the Government’s; Decree No. 75/ 2009/ND-CP of September 10, 2009 amending  Article  3  of the Government’s  Decree 01/2008/ND-CP of January  3, 2008  defining the functions,  tasks,  powers  and  organizational  structure  of  Ministry  of Agriculture and Rural Development;

Pursuant to the Government’s Decree No. 99/2010/ND-CP of September 24, 2010 on the Policy on Payment for Forest Environment services as follows:

The Ministry of Agriculture and Rural development guides the methods for determining payment for forest environment services as follows:

Chapter 1.

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular guides the application of coefficient K ; determining payments for environment services payable to forest owners, contracted households; the exemption, reduction of payment for forest environment services in accordance with the Government’s Decree No. 99/2010/ND-CP of September 24, 2010 on the policy on  payment  for  forest environment services, including:

1. Protecting soil, controlling soil erosion and sedimentation of reservoir, river and spring beds.

2. Regulating and conserving water sources for production and  social life.

Article 2. Subjects of application

Subjects of application domestic include rural communities, State agencies, organizations, households, individuals, Vietnamese overseas, foreign organizations and foreign individuals involved in the supply, utilization and payment for forest environment services  and the management of payment for forest environment services.

Chapter 2.

APPLICATION OF COEFFICIENT K

Article 3. Coefficient K

1. Coefficient K is determined by each forest status plot, forming the basis to calculate forest environment service charges payable to forest owners. Forest plots of similar status located on the same basin and provide specific environment services of similar features share the same coefficient K. The coefficient K of individual forest status plot is an aggregation of multiple different sub-coefficient K as regulated in Point a, Clause 1, Article 16 of Decree No. 99/2010/ND-CP

A forest status plot (hereinafter referred to as a forest plot) is a forest area on which only one relatively homogeneous forest status exists. In cases forest owners have more than one forest plots, each forest plot shall have its own coefficient K.

2. Sub-coefficient K, including:

a) Sub-coefficient K₁: Regulate the payment for forest environment services by forest status and reserves, including rich, medium, poor and rehabilitated forests. K₁ is 1.00 applicable to rich forests, 0.95 to medium forests and 0.90 to poor forests and rehabilitated forests. Forest status and reserves are determined in accordance with the Circular No. 34/2009/TT-BNNPTNT of June 10, 2009 of Minister of Agriculture and Rural Development prescribing the criteria for forest identification and classification.

b) Sub-coefficient K₂: Regulate the payment for forest environment services by forest use purposes, including specialized forests, protective forests and production forests. The sub-coefficient K₂ is 1.00 applicable to specialized forests; 0.95 to protective forests and 0.90 to production forests. Forest use purposes are defined in accordance with the planing for three forest types approved by the Provincial People's Committee.

c) Sub-coefficient K₃: Regulate the payment for forest environment services by forest origins, including natural and planted forests. Sub-coefficient K₃ is 1,00 applicable to natural forests and 0.80 to planted forests.

d) Sub-coefficient K₄: Regulate the payment for forest environment services by difficulties in forest protection, including social and geographic factors. Sub-coefficient K₄ is 1.00 applicable to forests that are extremely difficult to protect, 0.95 to those that are difficult to protect and 0.90 to those less difficult to protect.

Article 4. Application of coefficient K

1. People's Committees of provinces shall base on specific conditions of their provinces and cities and the coefficient K as defined in Article 3 of this Circular to specify the sub-coefficient K applicable locally.

  2. The Department of Agriculture and Rural Development shall guide relevant agencies to identify the coefficient K of forest plots managed by forest owners being organizations as regulated by the Provincial People's Committee as the basis for calculating payments for forest environment services.

 3. The district People's Committees directs relevant agencies to identify the coefficient K of forest plots managed by forest owners as households, individuals and village communities as regulated by the Provincial People's Committee so as to have basis for calculating for forest environment services.

4. Forest owners being state organizations shall shall uniformly apply the coefficient K to contracted households and specify it in the contracts.

5. The coefficient K for a specific forest plot is to be re-identified in case there are changes in forest status, forest use purposes, forest origins and the forest protection difficulties either as requested by forest owners or based on the annual forest acceptance results verified by competent authorities as stipulated in Clauses 2 and 3 of this Article.

Chapter 3.

DETERMINATION OF FOREST ENVIRONMENT SERVICE PAYMENT TO FOREST OWNERS AND CONTRACTED HOUSEHOLDS

Article 5. Determining the amount transferred from Vietnam Forest Protection and Development Fund to the provincial forest protection and development fund

1. The Director of Vietnam National Forest Protection and Development Fund shall determine the amount to be transferred to forest protection and development funds  of provinces and centrally-affiliated cities, or agencies/organizations which take over the tasks of the provincial forest protection and development funds as decided by the Provincial People’s Committee (hereinafter referred to as Provincial Forest Protection and Development Fund) applicable to each payment paid by users enjoying forest environment services from a river basin sharing administrative territory of at least 2 provinces.

2. Time for determination: annually.

3. Determining the amount to be transferred to the provincial forest protection and development fund:

a) Step 1: Determine an average payment paid by a specific service user for 1 hectare of forest with the following formula:

                                    (1)

Of which:

- : average payment for 1 hectare;

- B: the real revenue from forest environment payments in a year at Vietnam Forest Protection and Development Fund;

- Q: administration costs of Vietnam Forest Protection and Development Fund;

- S: total forest area participating in the provision of forest environment services.

b) Step 2: Determine the amount transferred to the provincial forest protection and development fund from a forest environment service user under the following formula:

B_1i =  x S­_1i                                (2)

In particular:

- B_1i: the amount transferred to the forest protection and development fund of province I from a forest environment service user;

- S_1i: forest area eligible for provision of forest environment services in the province i paid by a forest environment service user ( i = 1, 2, …, n).

c) Step 3: Determine the total amount transferred to a provincial forest protection and development fund under the following formula:

A₁ =                                 (3)

In particular:

- A₁: total amount transferred to a provincial forest protection and development fund;

- : the j^th payment for forest environment services of a specific province (j = 1, 2, …,n).

4. The forest environmental service revenues collected from the users while the payer has not been identified shall be distributed as follows:

 Vietnam National Forest Protection and Development Fund shall transfer money to provinces whose average annual forest environmental service payment amount/per hectare is lower than the national average payment level, under decision of the Minister of Agriculture and Rural Development.

5. Vietnam National Forest Protection and Development Fund shall inform forest environmental service payment amount to provincial forest protection and development fund according to Form 1 attached in this Circular..

Article 6. Determine payments to forest owners

1. The Director of the provincial forest protection and development fund shall dertermine forest environmental service payment amount paid by individual service users to forest owners.

2. The actual payment of a year shall be made in the 1st quarter of the following year.

3. Defining payments to forest owners:

a) Step 1:  determine the average payment per hectare paid by a forest environment service user:

- The average payment for 1 hectare paid by a forest environment service user is calculated as follows:

                                    (4)

In particular:

+ : average payment per hectare converted by the coefficient K;

+ B₁: real revenue from forest environment service payments in a year at the provincial forest protection and development fund;

+ Q₁: administration costs of at the provincial forest protection and development fund;

+ P: Contingency fund; (+/-);

- S_q/đ: the forest area converted by the coefficient K is calculated as follows:

S_q/đ =                  (5)

+ K_i: Coefficient K of the i^th forest plot (i = 1, 2, …, n)

+ S_i: area of the i^th forest plot eligible for providing forest environmental service (i = 1, 2, …, n) is to be validated for payment.

- In case where average annual payment per hectare is lower than that of the previous year, the provincial forest protection and development fund shall submit a plan of additional payment amount extracted from the contingency fund to the provincial People’s Committee for approval.

b) Step 2: Determine the amount payable to forest owners from a forest environment service user under the following formula:

B₂ =  x S­_q/đ                                (6)

In particular:

- B₂: the amount payable to forest owners.

c) Step 3: determine total forest environmental service payments to individual forest owners.

Forest owners whose forest areas provide forest environment services to one or more service users shall receive all payments for such services. The total amount is calculated as follows:

A₂ =                                 (7)

In particular:

- A₂: total forest environmental service payment to forest owners;;

- : the j^th payment for forest environmental services to forest owners (j = 1, 2, …,n).

4. The provincial forest protection and development fund shall notify individual forest owners of the forest environmental service payment under Form 2 enclosed with this Circular.

Article 7. Determining payments to households contracted to protect forests

1. Forest owners being state organizations who enter into forest protection contracts with communities, households and individuals shall take responsibility to determine the payment to contracted households.

2. The actual payment of a year shall be determined in the 1st quarter of the following year.

3. Determining payments to contracted households

a) Step 1: determine the average payment per hectare paid by a forest environment service user under the following formula:

                                    (8)

In particular:

+ : average payment per hectare to the contracted household converted by the coefficient K;

+ Q₂: administration costs of forest owners.

b) Step 2: determine they payment to the contracted household from a forest environment service user under the following formular:

B₃ =  x S­_q/đ                                (9)

In partuclar:

- B₃: the forest environmental service payment to the contracted household.

c) Step 3: determine the total forest environmental service payment to contracted households.

Contracted households whose forest areas provide forest environment services to one or manu users are entitled to receive all payments for such services. Total amount is calculated as follows

A₃ =              (j = 1, 2, …, n)                   (10)

In particular:

- A₃: total forest environmental service payment to the contracted household;

- : the j^th forest environmental service payment to the contracted household (j = 1, 2,…, n)

4. Forest owners shall notify the contracted households of forest environmental service payment under Form 3 enclosed herewith.

Chapter 4.

FOREST ENVIRONMENTAL SERVICE PAYMENT EXEMPTION AND REDUCTION

Article 8. Conditions for forest environmental service payment exemption and reduction

1. In case service users have their capital, assets directly affected by natural calamities, enemy sabotage, fires, earthquakes, floods, tornados, tsunamis and landslides, resulting in either a stop or loss of production and business activities; and they are not obliged to buy assets insurance as prescribe by law.

2. In case service users are individuals that have lost their civil act capacity, died or was declared dead or missing with no assets to pay or having no heir or their heirs are not able to pay for their debts.

3. In case users being legal entities, economic organizations that have made decisions on dissolution or bankruptcy as prescribed by law and they have no funds or assets to pay debts to the service providers.

Article 9. Rates and terms of forest environmental service payment exemption, reduction

1. Organizations, individuals  being service users are eligible for 100% exemtion of forest environmental service payment in case the damage to capital and asset is from 70% to 100 % of the total value of their assets or their production, business plan; or in the case prescribed in Clauses 2 and 3 of Article 8.

2. Organizations, individuals being service users are eligible for up to 50% reduction of forest environmental service payment in case the damage to capital and asset is from 40% to less than 70 % of the total value of their assets or their production, business plan.

3. The terms of forest environmental service payment exemption, reduction as from the misfortune occurrence shall be determined by competent agencies. After the exemption, service users shall continue to pay for forest environment services in accordance with the regulations

Article 10. The application for forest environmental service payment exemption or reduction

1. The application for forest environmental service payment exemption and reduction must specify the reasons and the details of force majeure; the damage to capital and property; content and expected duration of  exemption and reduction.

2. In case forest environmental service users are individuals prescribed in Clause 2, Article 8,  the forest protection and development fund shall send an official dispatch to the Department of Agriculture and Rural Development (for individuals using services of forest environment located within a provincial territory) or to Vietnam Administration of Forestry (for individuals using services of forest environment located in the administrative territory of at least 2 provinces). The documents being attached with the official dispatch include:

a) The court’s decision in case of loss of civil actions, the court’s declaration on dead or missing circumstances.

 b) Death certificate in case of death.

 c) Certification of competent authority in case of having no assets to pay, having no heir or their heirs do not have ability to pay debts for respective individuals.

3. Certification on damage caused by unforeseen natural disasters by competent authorities in the locality where the organization is based or where  the individual resides.

4. In case service users are economic organizations, apart from the above mentioned documents, it is required to have following documents:

a) The record on the damage to capital and property as prescribed by law.

b) The business - production recovery plan.

Article 11. Procedures for considering exemption and reduction

1. Upon the occurrence of force majeure, the service user shall make and submit a application for the forest environmental service payment exemption and reduction to the Department of Agriculture and Rural Development (for organizations and individuals using forest environmental services within 01 province) or to Vietnam Administration of Forestry (for organizations and individuals using forest environmental services in 02 provinces or more).

2. Time-limit for application reception and initial examination:

a) For applications submitted directyly: within 01 working day from the time of receipt, the recipient must send written notice to the applicant about the validity of the documents

b) For applications sent by post: within 03 days from the time of receipt, the recipient shall send written notice to the applicant about the validity of the documents.

3. Within 07 working days after receiving the application for forest environmental service payment exemption or reduction from the service user, the Department of Agriculture and Rural Development or Vietnam Administration of Forestry shall submit a proposal to the provincial People’s Committee or Department of Agriculture and Rural Development for establishing the Inspectorate for verification.

4. Within 07 working days as from the establishment, the Inspectorate shall conduct inspections and make certification record. Within 07 working days after the inspection, the Inspectorate shall complete and submit the field inspection record to the Department of Agriculture and Rural Development or Vietnam Administration of Forestry.

The field inspection record by the Inspectorate comprises the following contents: the Inspectorate composition; the inspection time; the time of damage occurrence; the damage estimate; insurance issues; recommendations for exemption or reduction.

5. Within 07 working days as from receiving the inspection minutes, the Department of Agriculture and Rural Development or Vietnam Administration of Forestry shall prepare and submit a report summarizing the situation and recommending solutions together with a draft exemption, reduction decision to the competent authorities for consideration and decision.

Article 12. Competence for exemption and reduction decision

1.Provincial People's Committee shall make decisions on exemption or reduction for organizations and individuals that use forest environmental services within the province.

2. The Ministry of Agriculture and Rural Development make decisions on exemption or reduction for organizations and individuals that use forest environmental services in 02 provinces or more.

3. The Decision on exemption and reduction by competent agencies shall be submitted to the Forest Protection and Development Fund, organizations and individuals using forest environmental services for implementation as regulated.

Chapter 5.

IMPLEMENTATION ORGANIZATION

Article 13. Effect

1. This Circular takes effects after 45 days as from the date of signing.

2. Any arising problem during the course of implementation should be timely reported to the Minister of Agriculture and Rural Development (through Vietnam Administration of Forestry) for settlement.