Unofficial translation

Lao’s People Democratic Republic
Peace Independence Democracy Unity Prosperity

 

Ministry of Industry and Commerce
Ref no.0981/MOIC
Vientiane Capital, dated 19 October 20

 

Instruction

On Exportation of Plantation Timber Products
 

 

• Pursuant to Law on Forestry (Revised version) no.64/NA, dated 13 June 2019;
• Pursuant to Decree on the Organization and Operation of Ministry of Industry and Commerce no.230/PM, dated 24 July 2017;
• Pursuant to Decree on Timber Plantation Promotion no.247/GOV, dated 16 October 2019;
• Pursuant to Order on the facilitation of import-export, temporary import, transit and movement of goods in Lao PDR no.12/PM, dated 16 October 2019;
• Pursuant to Notification of Prime Minister Office no. 855/PMO, dated 28 July 2021;
• Pursuant to the request letter of Department of Import and Export no.3411/DIMEX, dated 13 October 2021.

 

To promote plantation timbers as commodity and increase monitoring of timber source in compliance with laws as well as to create conditions to facilitate uniformly across the country on implementing conditions, procedures, methods and measures towards the exportation of plantation timbers.

 

 

Minister of Industry and Commerce has issued:

 

Type of plantation timbers to be exported and plantation timbers exporters

a. Type of plantation timbers to be exported

Exportation of plantation timbers is exporting plantation timbers and plantation timber products as specified in the Decision on the Adoption of Timber Product List for Export that Ministry of Industry and Commerce has adopted and promulgated each period.

b. Plantation timber exporters

Type of Plantation Timber exporters

Plantation Timber exporters are the general exporters which are certified as followings:

1. General exporters are plantation timber processing factories, plantation timber companies, plantation timber and plantation timber products import and export companies which have been established and operated in accordance with the laws of Lao PDR;
2. Certified exporters are exporters who have been certified the compliance on source management and authenticity of timbers from Department of Import and Export. Certified exporters shall receive facilitation on their plantation timber export.

Criteria for the Application to be a Certified Exporter

Application for being a certified exporter shall have the following criterias:

1. Shall be an operator of any of the following activities:
2. Carry out industrial tree planting activities and allocate forest area for sustainable planting;
3. Operate a timber processing factory that uses plantation timbers 100 percent (100%) to manufacture finished timber products;
4. Operate a sale-purchase business of finished timber products that have been produced from plantation timbers 100%.
2. Shall fully fulfill obligations for the Government according to the laws;
3. Shall have the management and monitoring input and output timbers according to the Decision on the management and monitoring of input and output timbers no.0777/MOIC.DOIH, dated 25 August 2020.

Supporting documents for applicant to be a certified exporter

An exporter who wants to be a certified exporter must prepare the following documents and submit to Department of Import and Export:

1. Application form provided by Department of Import and Export;
2. Copy of Business Certificate;
3. Copy of Business Operation License;
4. Copy of a valid annual tax payment certificate;
5. Copy of factory timber products certificate from Industry and Handicraft sector.

 

Consideration of application to be a certified exporter

Upon receiving correct and complete documents, Department of Import and Export shall cooperate with related sectors to conduct an inspection and make an inspection record within five working days.

In the case that the applicant fully meets the criteria, Department of Import and Export shall consider issuing the certificate within two working days.

In the case that the applicant does not fully meet the criteria, Department of Import and Export shall notify the applicant immediately as well as to indicate the reasons in the inspection record.

List of Certified Exporters will be published for related sectors and the public through the Lao Trade Portal website (www. laotradeportal.gov.la) and Department of Import and Export website (www.dimex.moic.gov.la).

Validity and Renewal of Certified Exporter Certificate

Certified Exporter Certificate is valid for two years and can be renewed by submitting documents as specified in clause no.3 of this section to Department of Import and Export for 60 days prior to the expiration date. Consideration for renewing the certificate shall follow the procedures specified in clause no.4 of this section.

Exportation of Plantation Timbers

a. Procedures to export plantation timbers

Exportation of plantation timbers consists of two steps as followings:

1. Application for export license for plantation timbers;
2. Customs declaration at customs checkpoint.

     b. Application for license to export plantation timbers

1. Document preparation

An exporter who wants to export plantation timbers shall prepare document and submit to Capital, District Industry and Commerce Offices (the Industry and Handicraft and Import and Export units are in charge of implementing) which is the gathering point of timber products prior to export in order to make a consideration for export license each time and the documents to be submitted are as followings:

1. Completed Export License Form for Plantation Timbers (MOIC.02) as provided by Department of Import and Export;
2. Completed form of table of list of plantation timbers as provided by Department of Import and Export;
3. Copy of a valid business operation certificate of the plantation timbers exporter (for the first application or if there is any changes);
4. Copy of a valid annual tax payment certificate (for the first application or if there is any changes);
5. Copy of timbers planation registration certificate or certificate of plantation timbers from which the timbers have been harvested;             
6. Document certifying a sale-purchase of timbers.

 

For a Certified Exporter, Copy of a Certified Exporter issued by Department of Import and Export can be used to replace document no. 3,4,5 and 6.

 

2. Document consideration

Upon receiving the documents applying for license to export plantation timbers. The Capital, District Industry and Commerce Offices shall check the accuracy and completeness of documents and notify the applicant immediately or no later than thirty minutes. In the case that documents are not correct or incomplete, the document examiner shall notify the points to be corrected and to sign in the document receipt.

In the case that documents are correct and complete, the Capital, District Industry and Commerce Offices shall cooperate with the Capital, District Agriculture and Forestry Offices in order to together inspect the plantation timbers that will be exported within five working days from the date receiving the documents. For a Certified Exporter, The Capital, District Industry and Commerce can consider issuing the export license within two working days from the date receiving the correct and complete documents without the need to conduct inspection visit for the plantation timbers that will be exported.

3. Inspection Visit for Plantation Timbers that will be exported

An Inspection visit for plantation timbers that will be exported shall proceed as following:

1. Inspection visit shall base on the responsibility of each sector as followings:
   1. 1. The Capital, District Industry and Commerce Offices are to inspect, certify forms, size, and type of plantation timbers that will be exported according to the certificate of factory timber processing;
   2. 2. The Capital, District Agriculture and Forestry Offices are to inspect the source of timber, timber species, weight or volume of plantation timbers that will be exported.
2. All the inspectors shall sign the inspection record every time and shall certify the accuracy of timber products from natural forest that will be actually exported with the information provided by the exporter;
3. All the inspectors shall sign the inspection record every time and shall certify the accuracy of plantation timber that will be actually exported with the information provided by the exporter;
4. Plantation timbers that will be exported shall specify the information of the timbers base on each type of timbers as following:

For logs and square logs that have a cross section from 50 cm, the exporter shall make some marks as followings:

1. Serial number of logs or square logs;
2. Dimension of diameter and length for logs;
3. Dimension of width, thickness, and length for the square logs.

Figure 1: Marking symbols for logs and square logs that will be exported

 

1. For processed timbers, sawn timbers and semi-finished timber products that will be exported shall be in the form of a bundle or packing and pallet where there is important basic information to be attached as followings: 
2. Serial number of Pallets;
3. Product category;
4. Type of wood;
5. size;
6. Weight or Volume.

                                               

                                                Figure 2: Marking symbols for processed timbers and planting timber products to be exported

 

A. Issuance of Export License for Plantation Timbers

Upon inspection visit and found that plantation timbers that will be exported are correct and consistent with information that the exporter has requested, the Capital, District Industry and Commerce Offices shall issue export license for plantation timbers within two working days from the inspection day. In the case that it is found that the plantation timbers cannot be exported, the inspectors shall make a record with the applicant indicating the reasons in the record. Export license for plantation timbers shall be made for five copies for sending to each sector as followings:

1. An original copy to be attached with plantation timbers that will be exported;
2. One copy is kept with exporter;
3. One copy is kept with Capital, District Industry and Commerce Office;
4. One copy is kept with Capital, District Agriculture and Forestry Office;
5. One copy is kept with Vientiane Capital, Provincial Industry and Commerce Office which the Capital, District Industry and Commerce Office belongs.

B. Application for Certificate of Origin (CO)

An exporter who wants to apply for the certificate of origin (CO) can use the export license for plantation timbers that is issued by the Capital, District Industry and Commerce Office as supporting documents for the issuance of certificate of origin according to the certification origin regulations that Ministry of Industry and Commerce has promulgated each per.

     C. Documents Declaration at Checkpoint to Export Plantation Timbers

Exportation of plantation timbers shall be through the international checkpoints only. Upon receiving the export license for plantation timbers, the exporter can declare documents to the authority at the checkpoint that will export the timbers and to submit the followings documents:

1. One Original copy of Export License for Plantation Timbers (MOIC.02);
2. One Original copy of List of plantation timbers that will be exported;
3. Supporting documents as specified in the Law on Customs.

 

Fees, Service Fees, and Duty-Tax Obligations

Collection of fees and service fee associate with export of plantation timbers shall be according to Ordinance on fees and service fees that is promulgated each period.

Implementation of duty-tax obligation on the exportation of plantation timbers shall be done as specified in the Law on Customs, Law on Value-Added Tax and other laws, Decree on Timber Plantation Promotion and related laws that have been promulgated each period.

 

Rights and Duties of Government Authorities and Rights and Obligations of Plantation Timber Exporters

a. Government authorities have the following rights and duties:

1. Inspect, evaluate, verify the compliance in managing the source and authenticity of timber;
2. Inspect and issue the export license for plantation timbers;
3. Organize consultation meetings with public and business sectors on the work on exportation of plantation timbers;
4. Disseminate, advise, and facilitate on each procedure on the exportation of plantation timbers on the basis of accuracy and compliance with laws and legislation set out each period;
5. Maintain and provide information on exportation for each sector according to its roles;
6. Commence the inspection when there is a suspection or reliable information source that there will be a smuggling, movement of timbers with incorrect source mixing with timber products from natural forest that is being licensed for exporting or found that the plantation timbers that will be exported maybe not correct and comply with the export license for plantation timbers;
7. In the case of violations, the related authorities can detain goods (plantation timbers), transport vehicles and person who is suspected in order to carry out preliminary investigation before sending the message to the forestry inspection officers to carry out a detailed investigation according to their roles;
8. Use other rights and implement other duties as assigned by the high management and as specified in the laws and regulation.

b. Rights and obligations of plantation timber exporters

Plantation timber exporters have the following rights and obligations:

1. Request for export license for plantation timbers from the Capital, District Industry and Commerce Office that is the gathering point of timbers prior to export;
2. Report on the performance of government authorities that is inconsistent or violate laws and regulation or in case where export is not being facilitated;
3. Provide documents and information that is factually accurate when applying for export license of plantation timbers;
4. Keep copy of documents that is related to exportation of plantation timbers such as plantation timbers export license, customs declaration for export, document certifying source of plantation timbers, and sale-purchase contract at least for five years;
5. Gather information on exportation of plantation timbers according to the forms and methods specified in the regulation on the management and monitoring of input and output timbers;
6. Report on the information on exportation of plantation timbers to the Capital, District Industry and Commerce office that issue the export license base on the provided form and deadline specified in the regulation on the management and monitoring the input and output timbers;
7. Notify the Capital, District Industry and Commerce Office to eliminate export license for plantation timbers that has been issued in the case that the licensed plantation timbers have not been exported;
8. Responsible directly for all offenses or violations of laws and regulations of their own that occur upon obtaining the export license for plantation timbers;
9. Use the rights and implement other obligations as specified in the Law on Forestry and other related regulation.

 

Measures against violators

a. Measures towards Government authorities

If the Government authorities who are responsible for inspecting and certifying the export of plantation timbers have behavior to cause the document delayed or dragged as stated in this Instruction for insufficient reasons to claim benefits from the exporters that is not complied with the principles or conspire with the exporters to falsify documents, hiding the truth about the export, they shall be taken the following measures: warning, educating, disciplinary action, dismissal or dismissal from the public servant according to each case of serious or light misconduct. If the violation is a criminal offense, it shall be prosecuted according to the Criminal Code.

 

b. Measures towards exporters

 

If the exporter has behavior such as falsifying the certificate, misrepresenting or providing false information, smuggling, moving timbers that does not come from a legitimate source, mixing it with the timber that is allowed to be exported or found that the timbers that will be exported may not be in accordance with the certificate, the following measures shall be taken: warning, educating, disciplinary action, revocation of certified exporter certificate or temporary suspension of business activities according to each case of minor or serious offense. If the violation is a criminal offense, it shall be prosecuted according to the Criminal Code. In the event that the exporter, transport operator has a behavior that violates or commits a crime against the law and this Instruction, the offender is fully responsible for the violation or crime that occurs and shall be subject to measures according to the relevant laws has specified each period strictly. Plantation timbers related to the offense shall be seized or reserved for legal proceeding according to the law.

 

Implementation

The Department of Import and Export is assigned to be a main sector to cooperate with Vientiane Capital, Provincial Industry and Commerce Offices, Capital, District Industry and Commerce Offices and related sectors to disseminate and implement this Instruction for good outcome.

Effectiveness

This Instruction shall come into effect upon signing and publish in the Lao Official Gazette for 15 days.

This Instruction replaces the Notification on Import and Export Procedure of Plantation

Timbers no.1791/MOIC.DIMEX, dated 15 September 2011 and Order on Certification Procedure of Plantation Timber Products for Export no.2143/MOIC.DIMEX, dated 25 November 2016.

 

                                                                                                                  

Minister

Dr. Khampheng Xaisompheng