Is export of sawn timber prohibited in Vietnam? How much is fine for exporting sawn timber in Vietnam?

Is export of sawn timber prohibited in Vietnam? How much is fine for exporting sawn timber in Vietnam? 

Hi, I have a problem that needs to be answered. I am the director of F Wood Production Joint Stock Company. Of all the types of wood my company produces, sawn timber is very popular in the country. I am intending to expand my business market by exporting sawn timber abroad. Can I ask if the sawn timber can be exported?

Please advise. Thankyou.

Is export of sawn timber prohibited in Vietnam?

In Section I, Appendix I promulgated together with Decree 69/2018/ND-CP stipulating the list of goods prohibited from export and import as follows:

No.

Description

Ministry or ministerial-level agency in charge

1

Weapons, ammunitions, explosives (excluding industrial explosives), military technical equipment.

The Ministry of National Defense

2

Encrypted products used for protection of state secrets.

The Ministry of National Defense

3

a) Relics, antiques and national precious objects in accordance with the law on cultural heritage.

b) Assorted cultural products banned from dissemination and circulation or decided to be suspended from dissemination and circulation, or subject to revocation, confiscation and destruction in Vietnam.

The Ministry of Culture, Sports and Tourism

4

a) Assorted publications banned from dissemination and circulation in Vietnam.

b) Postage stamps banned from trading, exchange, display and dissemination in accordance with the Law on Post.

The Ministry of Information and Communications

5

Logs, sawn timber from domestic natural forests.

The Ministry of Agriculture and Rural Development

6

a) Samples of precious, rare and endangered animals and plants under Appendix I of CITES derived from natural resources; or samples of precious, rare and endangered forest animals and plants under  which need to be placed under category IA, IB prescribed in Decree No. 32/2006/ND-CP on export for commercial purpose.

B) Samples and processed products of species: white rhinoceros (Ceratotherium simum), black rhinoceros (Diceros bicornis), African elephants (Loxodonta africana).

c) Wild precious, rare and endangered species category I.

d) Aquatic species under list of aquatic species prohibited from export.

dd) Livestock breeds and plant varieties under the list of precious and rare livestock breeds and plant varieties prohibited from export promulgated by the Ministry of Agriculture and Rural Development in conformity with the Ordinance on Livestock Breeds 2004 and Ordinance on Plant Varieties 2004.

The Ministry of Agriculture and Rural Development

7

a) Schedule-1 toxic chemicals defined in the Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on their Destruction and Annex to the Government’s Decree No. 38/2014/ND-CP dated May 6, 2014 on the management of chemicals under control in the Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on their Destruction.

b) Chemicals under the list of banned chemicals prescribed in Appendix III to the Government’s Decree No. 113/2017/ND-CP dated October 9, 2017 on guidelines for certain articles of the Law on Chemicals.

The Ministry of Industry and Trade

Thus, according to the above regulations in Vietnam, sawn timber is one of the types of timber banned from export. If your company exports sawn timber to foreign markets, it will violate the law and be administratively sanctioned.

How much is fine for exporting sawn timber in Vietnam? 

According to Article 36 of Decree 98/2020/ND-CP stipulating violations against regulations on goods banned from export and those banned from import as follows:

1. The following fines shall be imposed for exporting or importing goods included in the list of goods banned from export or the list of goods banned from import:

a) A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed for the violation involving goods worth less than VND 20.000.000;

b) A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed for the violation involving goods worth from VND 20.000.000 to under VND 50.000.000;

c) A fine ranging from VND 30.000.000 to VND 50.000.000 shall be imposed for the violation involving goods worth from VND 50.000.000 to under VND 70.000.000;

d) A fine ranging from VND 50.000.000 to VND 70.000.000 shall be imposed for the violation involving goods worth from VND 70.000.000 to under VND 100.000.000;

dd) A fine ranging from VND 70.000.000 to VND 100.000.000 shall be imposed for the violation involving goods worth VND 100.000.000 or more, if not liable to criminal prosecution.

2. Additional penalty:

The exhibits of the violations prescribed in this Article shall be confiscated, except the case of application of the remedial measure prescribed in Point a or Point b Clause 3 of this Article.

3. Remedial measures:

a) The exhibits of the violations prescribed in this Article that cause harm to human health, domestic animals, plants and environment shall be confiscated, except the case of application of the remedial measure prescribed in Point b of this Clause;

b) The violating entity is compelled to transport to out of the territory of the Socialist Republic of Vietnam or re-export the goods involving in one of the violations in this Article;

c) The violating entity is compelled to return any benefits illegally obtained from one of the violations in this Article.

Pursuant to Point b, Clause 4, Article 4 of Decree 98/2020/ND-CP as amended by Point b Clause 1 Article 3 of Decree 17/2022/ND-CP stipulating the fine level:

b) Fines mentioned under Chapter II hereof apply to administrative violations committed by individual offenders, except for administrative violations under Article 33, Article 35, Article 68, Article 70, Clauses 6, 7, 8, and 9 Article 73, Clauses 6, 7, and 8 Article 77 hereof. Organization offenders shall be met with twice the fines applicable to individual offenders.

Therefore, if your company exports sawn timber to foreign markets, it may be fined up to 200,000,000 VND, the fine amount will depend on the value of exported goods in Vietnam. In addition, the sawn timber that your company exports is required to be re-exported and has to pay back the illegal profits derived from the export of sawn timber.

Best Regards!

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