LEGALITY STANDARD 3: PLANTATION
Principle 3.1: Land Allocation for PlantationsCriterion 3.1.1 Plantations are established according to laws and regulations
Indicator / Verifiers / Legal references
3.1.1.1 Owners of Sscattered trees or pPlantations on degraded or barren forestland less than 3 hectares per labor and household have a land use or land utilization right for degraded or barren forestland established on land within compliance with the law and regulations. / 3.1.1.1.1 Land titles or temporary land use certificate or land development certificate or land tax receipt. /
- Decree 88/PM (2008), articles 3 & 16
- Draft revised Decree 96/PM, article 7.2Law 04/NA (2003), article 21
3.1.1.2 Plantations on degraded or barren forestland, bigger than 3 hectares per labor and household have a lease contract or concession agreement :
-with MPI and MAF for projects under central responsibility
-with DPI and PAFO for projects under provincial responsibilitywith the respective authority / 3.1.12.21.1 Land lease contract or concession agreement /
- Law 04/NA (2003), article 21
- 14/NA (2016), article 99 (A3) and (B3)
Principle 3.21: Plantation establishment[EFI1][FSO2] and management[EFI3][FSO4].[EFI5][FSO6]
Criteriona3.21.1Plantations must comply with technical, environmental and social assessment requirementsSmall holder plantation on land with land ownership must be established in compliance with regulations.
Indicator / Verifiers / Legal references
3.21.1.1 Plantations greater than 3 hectares that have with a lease or concession or/and plantations greater than 5 hectares, including those areas owned by several smallholders but forming a block of more than 5 hectares must conduct a technical analysis, approved by DOFLand owners of plantations and scattered trees must hold land tenure in accordance with laws and pay the land tax[EFI7]. / 3.21.1.1.1Technical Assessment report approvalTemporary land use certificate or Land Title.
3.1.1.1.2 Receipt of land tax payment. /
- Regulation 0196/MAF (2000), article 4
Regulation No. 0196/MAF, dated 15 August 2000, Article 5.
- Law on Land, No. 04/NA, dated 21/10/2003, Article 60.
3.21.12.2 Plantations from 20 – 200 hectares[1] must conduct an IEE and prepare an ESMMP, approved by PONRE / 3.21.12.2.1 ECCECC issued by PONRE /
- Instruction 8029/MONRE (2013), point 2.6
3.21.12.3 Plantations greater than 200 hectares must conduct an ESIA and prepare an ESMMP, approved by MONRE / 3.21.12.3.1 ECC issued by MONREECC /
- Instruction 8030/MONRE (2013), 2.10
Criteria 3.1.2 Industrial plantation established on land lease or land concessions must be implemented in compliance with regulations without causing any negative environmental and social impacts[EFI8][FSO9].
Indicator / Verifiers / Legal references
3.1.2.1 In case of land leasing or concession for plantation activities, the land must be approved by relevant authorities. / 3.1.2.1.1 Investment permit certificate. / Law on Investment Promotion, No. 02/NA, dated 08 July 2009, Article 19.
- Decree on Land Lease and Concession No. 135/PM 2009, Article 26
3.1.2.1.2 Land lease or concession agreement. / Law on Forestry, No. 06/NA, dated 24 December 2007, Article 74.
- Regulation No. 0196/MAF, dated 15 August 2000, Article 06 and 07.
3.1.2.1.3 Receipt of land lease or concession fees[EFI10]. /
- Presidential Ordinance, No. 02/PD, dated 18 Nov 2009, Article 4 and 11.
Criteriona 3.21.3Plantation management must be compliedcomply with regulations.
Indicator / Verifiers / Legal references
3.21.3.1The sScattered trees must be certified by the village headman, approved by DAFO.in accordance with regulations. / 3.21.3.1.1 Tree registration certificatePlanted tree certificate. /
- Notification 1374/MCAF (2010), article 3.3Regulation No. 0196/MAF, dated 15 August 2000, Article 12.
3.12.3.2
Plantations less than 5 hectares must be registered by DAFOPlantations must be registered in accordance with regulations. / 3.21.3.2.1
Plantation registration certificate. / Notification 1374/MCAF (2010), article 3.2Directive No. 1849/MAF, dated 7 October 1999.
- Regulation No. 0196/MAF, dated 15 August 2000, Article 12.
3.2.3.3 Plantations more than 5 hectares must be registered by DAFO and approved by PAFO / 3.2.3.32.1 Plantation Registration Certificate /
- Notification 1374/MCAF (2010), article 3.1
3.2.3.4 Plantations under lease and concession and plantations with more than 5 hectares must have a management plan.[2] / 3.2.3.4.1 Management Plan /
- Regulation 0196/MAF (2000), article 7
- Instruction 1643/DOF (2010), chapter V, part IV, point 2
3.2.3.5 Plantations required to have an ESMMP must comply withregularly report as specified in the ECC to the natural resource and environmental sector (area >200 ha: MONRE; area between 20 and 200 ha: PONRE). / 3.2.3.5.1 Report on ESMMP implementation /
- Instruction 8029/MONRE (2013), point 2.15
- Instruction 8030/MONRE (2013), point 2.19
Principle3.32: Cutting operation[EFI11][FSO12].[EFI13][FSO14]
Criteriona3.32.1: Approval of Harvestingcutting non-native timber species fromin plantations or cutting of/ scattered treesmust be approved[EFI15] in complianceshall comply with relevant regulations.
Indicator / Verifiers / Legal references
3.32.1.11The volume of harvested timber from plantations or scattered trees with Cutting non-native timber species[EFI16][FSO17] from plantation/scattered trees, including eEucalyptus, Aacacia mimosaauriculiformis, Aacacia mangium and, para rubber trees and agarwood,which completely registered must be approved bymust be reported by the buyer[3] to DAFO District Agriculture and Forestry Office. / 3.32.1.11.1 Cutting timber permit.Plantation timber volumes record keeping system of DAFO /
- Official Regulation No. 0196/MAF, dated 15 August 2000, Article 14 (1).Instruction 3659/DOF (2017)[4]
Criteria 3.2.2: Approval of cutting native timber species from plantation/scattered trees must be implemented in compliance with relevant regulations.
Indicator / Verifiers / Legal references
3.32.12.21Cutting of native timber tree species from plantations/ or scattered native trees which included in control and special timber species, it must be approved by Provincial Agriculture and Forestry Office (PAFO), PAFO of Vientiane CapitalPAFO. / 3.32.12.21.11Cutting timber permitHarvesting approval from PAFO. /
- Official Instruction 3659/DOF (2017)[5]Regulation No. 0196/MAF, dated 15 August 2000, Article 14.
3.3.1.3 When harvesting is done by a harvesting enterprise[6], the plantation owner or timber buyer has signed a contract with an officially established and legally operating Timber Harvesting Unit or Timber Harvest Enterprise / 3.3.1.3.1 Signed harvesting contract /
- Law 06/NA (2007), article 49 (2)
- Decision 0182/MAF (2009), article 15 (3)
3.3.1.3.2 Harvesting enterprise[EFI18][FSO19] establishment permit issued by MAF /
- Law 06/NA (2007), article 49 (2)
- Decision 0182/MAF (2009), article 24
3.3.1.3.3 Harvesting enterprise registration from POIC /
- Law 06/NA (2007), article 49 (2).
- Decision 0182/ MAF (2009), article 24.
3.3.1.3.4 Vehicles utilization permit /
- Law 06/NA (2007), article 49 (2)
- Decision 0182/MAF, (2009), article 15 (4)
3.3.1.3.5 Chainsaw utilization permit /
- Law 06/NA (2007), article 49 (2)
- Decision 0080/MAF (2012), article 8
- Decision 0182/MAF (2009), article 11 (4)
3.3.1.4 When harvesting is done by a household labor with a chainsaw, the chainsaw needs to be registered at PAFO which needs to be notified each time the chainsaw is to be used. / 3.3.1.4.1 Chainsaw utilization permit /
- Decision 0080/MAF (2012), articles 8 & 9
Principle3.43: Timber purchases-sSales
Criteriona3.43.1: Purchasing and sellingSales of planted trees must be compliedcomply with relevant regulations.[7]
Indicator / Verifiers / Legal references
3.43.1.1Buyers and seller make a sale contract based on log list with verification from related authorities. / 3.43.1.1.1Log list. /
- Regulation No. 1862/MOIC ,point III
3.43.1.1.2Sales contract. /
- Regulation 1862/MOIC, point III
3.34.1.1.3Profit tax receipt[EFI20] /
- Regulation 1862/MOIC, point IILaw on Tax, No. 70/NA, dated 15 Dec 2015, Article???
Principle 3.54: Timber transportation[EFI21][FSO22][EFI23][FSO24]
Criteriona 3.54.1: Transportation of timber from plantation/scattered trees to the buyer’s log yardin domestic markets must comply be complied with relevant regulations.
Indicator / Verifiers / Legal references
3.4.1.1. Transportation of non-native timber species from plantation/scattered trees, including eucalyptus, acacia mimosa, acacia mangium and para rubber trees, which completely registered must be approved[EFI25] by District Agriculture and Forestry Office. / 3.4.1.1.1. Transport permit[EFI26]. / Regulation No. 0196/MAF, dated 15 August 2000, Article 14.
3.54.1.21.Transportation of timber from eucalypts, Acacia auriculiformis, Acacia mangium, rubber and agarwood doesn’t need a transport permit, yet transportation of native timber species from plantations/scattered trees which included in control and special timber species, it must be approved by Provincial Agriculture and Forestry Office,PAFO[8]. of Vientiane Capital. / 3.54.1.21.1Transport permit for native tree species. /
- Official Instruction 3659/DOF (2017)Regulation No. 0196/MAF, dated 15 August 2000, Article 14.
3.4.1.2.2 Log list. /
- Regulation No. 0196/MAF, dated 15 August 2000, Article 14.
Criteria 3.4.2: Transportation of timber from plantation/scattered trees for export[EFI27][FSO28] must be complied with relevant regulations.
Indicator / Verifiers / Legal references
3.4.2.1. Transportation of non-native timber species from plantation/scattered trees, including eucalyptus, acacia mimosa, acacia mangium and para rubber trees, with timber diameter of not more than 12 cm must be approved by Provincial Agriculture and Forestry Office.
(In case of transportation of non-native timber species from plantation/scattered trees with timber diameter of more than 12 cm must be processed to the finished wood products before exporting). / 3.4.2.1.1 Transport permit. /
- Notice, No. 1355/PMO, dated 09 Sep 2016 (3).
2018 02 20 TLD3 on Plantation_v4.0_EN / 1
[1] Gap: It can be assumed that current ESIA requirements (8029, 8030, 8056) apply for investment projects and not in the case of plantation regimes under contract farming arrangements, even for areas larger than 20 hectares (1 landowner or several landowners in one block of more than 20 hectares). This should be reflected during drafting of the new ESIA decision
[2] Inconsistency: On the one hand, 0916/MAF (2000), art. 7 requires a management plan for the application for foreign investment for tree planting but not for individuals or domestic enterprises with a lease or concession (art. 6). The regulation has been issued in a period where domestic and foreign investments had different legislations. On the other hand, 1643/DOF (2010) doesn’t mention a management plan as such, but the action plan under the cited reference contains clearly elements of management planning, e.g. an annual workplan. No other requirements regarding management plan exist in the legal framework for plantations. Clarify if 0196/MAF (2010) is still in force and if management plans are required and/or intended for which type of plantation. Eventually, draft revised decree 96/PM which is currently in the final stage of approval requires in art. 9.3 plantation maps or layouts and annual harvesting plans for concessions or lease of big scale, without specification what “big scale” means. The requirement for management plans for plantations of different scales and their distinction to planning in natural forests should particularly be addressed in the current revision of the forestry law.
[3] Remark: 3659/DOF (2017) delegates reporting of volumes to buyer. Draft revised Decree 96/PM and Draft revised Forestry Law are unspecific regarding the reporting responsibility.
[4] existing inconsistency: 3659/DOF (2017) reflects the requirements of art. 8.12 in the draft revised decree 96/PM whereas the draft revised forestry law (v. 11-12 Jan 2018) shows a separate tree list in art. 53. However, the listed Cratexylon prunifolium doesn’t exist but is probably Cratoxylum prunifolium which is a synonym for the accepted name Cratoxylum formosum (in Lao draft: ໄມ້ຕິ້ວ). This should be reviewed during revision of forestry law. Anyway, the different levels of listed species (Eucalyptus only genus, Acacia only 2 species, 2 more single species) should be reflected in all mentioned documents.
[5] Inconsistency: This is again in line with draft revised Decree 96/PM, art. 8.12 and draft revised forestry law, art. 53 (v.11-12. January 2018). However, the draft decree states in art. 7.2 that the harvesting permit is issued by PAFO but additionally based on the proposal of DAFO.
[6] Decision 0182/MAF 2009 determines the basic principles on establishment and management of timber harvest units and enterprises. However, the definitions for enterprises are unclear, especially the distinction between state enterprises or private companies and there are existing inconsistencies to be addressed.
[7] Inconsistency: Sales of planted trees has been laid down in Regulation 1862/MOIC (2008), based on Order 17/PM (2008), art. 7.2 and is under the responsibility of the plantation’s owners and the buyers. However, the regulation contains requirements regarding pre-harvest inventories, harvesting, scaling and grading and transportation in contrast to Instruction 3659/DOF (2017) which explicitly states that pre-harvest inventories are no longer required or harvesting and transportation of non-native species doesn’t need approval. 1862/MOIC (2008) should be revised, taking into account the currently ongoing revision of the forestry law.
[8] Remark: the draft revised forestry law, article 60 (v. 11-12. January 2018) makes a difference between transportation within the province (permit by DAFO required) and transportation from one to another province (permit from PAFO required).
[EFI1]Clear criteria as to where plantation may (and may not) be developed need to be set out first, then:
-For plantations established on forestland (Lao previously explained that “establishment of plantation in case of land lease or concession are allowed to conduct in unstock, barren and degraded forestland”) the requirements related to the conversion steps set out in the TLD for Conversion Areas should also apply to plantations
-For plantations established on other types of land, then Lao should reflect on how the requirements related to the decision to convert the use of land from one category to another and then allocated to a developer should be captured in the TLD
-[FSO2]Development of tree plantations on degraded or barren forestland is not conversion of forestland to other another land category
-the establishment of tree plantations on forestland is only allowed on degraded or barren forestland
-Technical, environmental and social assessments are included in next principle.
[EFI3]The current draft does not include any requirement for a management plan or mapping of the plantation area. Lao explained that draft Decree 96 scarcely defines requirements for management plans.
However, the TLD presents an opportunity to clarify such requirements, which appear to be in line with the present draft of the Forest Law which in Article 14 on Forest Management does not appear to restrict application of management activities (including planning) to natural forests alone. Furthermore, the inclusion of management plans and mapping of areas would support Lao’s pursuit of sustainable forest management and demonstration of increased forest cover.
Lastly, in the case that a plantation is established on forest land, management planning and mapping should be consistent with the project development process – i.e. to provide a basis to check that the allocated area is developed as proposed.
As this TLD includes two scales of operation (smallholder and industrial plantation), Lao should reflect on what would be the most appropriate planning and mapping requirements to include for these different scales of operation.
[FSO4]We agree with the analysis. Current legal framework on assessments and management are now better described, including existing inconsistencies regarding management planning and the advice to address this during ongoing forestry law revision-
[EFI5]Lao has explained that there are two categories of plantation – “plantation and scattered-planted trees” – defined as follows:
-Plantation means an estate with the area of 1 Rai or 1,600 square meters or more that has been planted according to silvicultural practices
-Scattered-planted trees refers to tree planted in an area of less than 1,600 square meters or planted alongside the roads, paddy fields, gardens, houses and other areas
This TLD includes requirements for the establishment of smallholder and industrial plantations but only refers to scattered planted trees in relation to management, cutting and transportation requirements.
Lao should reflect on how to include requirements for establishment of scattered planted trees in the TLD
[FSO6]Should be clear now with revised draft, although inconsistencies exist (see previous comment and footnotes).
[EFI7]Taxes seem to be a different issue to establishment of ownership. Consider to broaden the scope of the criteria
[EFI8]Environmental and social impact requirements were included in the first draft TLD shared with EU, and we understand that there is ongoing reflection among stakeholders in Laos with some considering that these are “subsumed to happen during the lease or concession approval process”.
In order to be able to demonstrate how negative impacts are avoided and in line with our above comments on plantation establishment, it would be important to maintain environmental and social impact requirements in the TLD appropriate to the scale of operation – e.g. are there different ESIA requirements for smallholders and industrial scale operations
[FSO9]This is now addressed in criterion 3.2.1
[EFI10]As this seems to be similar to the tax that appears under 3.1.1.1.2 , consider broadening the indicator (see bracketed text from EFI) to also mention payment of fees.
We understand that no other tax / fee is paid by industrial plantations at this stage
[EFI11]A harvesting plan would provide a clear basis for approving cutting of native and non-native species.
Relying on regulation alone may not be sufficient if the regulations are not specific enough and do not capture site-specific characteristics of the plantation
Lao should reflect on what basis for approving cutting could be included in addition to reference to regulation (e.g. harvesting plan, operational plan, or management plan), noting that such requirements typically differ according to the scale of operation (i.e. different requirements may apply to smallholder and industrial scale operations)
[FSO12]See also comments above and footnotes.
[EFI13]The previous TLD shared with EU included verifiers 'Chainsaw license' and 'Vehicle use permit', which are also included in other TLDs. Lao should explain why this requirement is important to include for some types of operation (e.g. harvesting in Conversion Area) and not in others such as plantations.
[FSO14]see footnote
[EFI15]Why approved here instead of implemented, as per criteria 3.2.2?
Is there a requirement also for implementation to be checked and approved by an authority? If so, Lao should consider to include another indicator checking, following implementation, compliance with the pre-harvesting approval. For example, by adding an indicator 3.2.1.2
[EFI16]The comment below from Lao states that the harvesting for non-native fast growing tree species that have been registered, can occur without permission. Therefore Lao should reflect further on what would be the most appropriate requirements to include under this criterion
[FSO17]Current legal framework now displayed
[EFI18]Presumably this is ‘Logging Unit/Enterprise’
[FSO19]Requirements from TLD1 used, including a footnote on inconsistencies in 0182
[EFI20]Comment from Lao in draft received by EU
This is from Regulation No. 1862/MOIC, Title II (2)
[EFI21]Comment from Lao in draft received by EU Relevant amended law and regulation should be followed up and updated to this TLD, especially New Decree No. 96
[FSO22]This has been done by core experts
[EFI23]On the first draft we were unclear whether the transportation requirements just apply to the first movement (i.e. from the plantation to the first buyer) or also to subsequent movements (e.g. between traders and/or processors)? Lao responded that “it applies only for one movement”. However it is still unclear whether the transportation requirements included in this draft apply throughout the supply chain including to export (as stated in criteria 3.4.2), or just from the plantation to the first buyer.
[FSO24]Transportation of plantation timberis done directly from LL1 to first buyer