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Country Risk Profiles

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Risks are listed below and organised under the relevant indicator. Click on the risk below for details on the specifc risk, mitigation options and the related legal requirements.
  • Specified Risks
  • Low Risks
  • Not Applicable
Legal rights to harvest
1.1 Land tenure and management rights
  • Risk related to Land tenure and management rights based on a precautionary approach
1.2 Concession licenses
  • Risk related to Concession licenses based on a precautionary approach
1.3 Management and harvesting planning
  • Risk related to Management and harvesting planning for Annual Forest Harvesting License holders based on a precautionary approach
  • Risk related to Management and harvesting planning for Concession contract holders based on a precautionary approach
1.4 Harvesting permits
  • Illegal transfer of Annual Forest Harvesting Licenses between national to foreign companies
  • Logging activities are carried out without or with a fraudulent permit

1.5 Payment of royalties and harvesting fees
  • Risk related to Payment of royalties and harvesting fees based on a precautionary approach
1.6 Value-added taxes and other sales taxes
  • Risk related to Value-added taxes and other sales taxes based on a precautionary approach
1.7 Income and profit taxes
  • Risk related to Income and profit taxes based on a precautionary approach

1.8 Timber harvesting regulations
  • Risk of harvesting below the minimum allowed felling diameter
  • Risk of harvesting beyond boundaries
1.9 Protected sites and species
  • Risk of illegal logging of protected species
1.10 Environmental requirements
  • Risk related to Environmental requirements based on a precautionary approach
1.11 Health and safety
  • Risk related to Health and safety based on a precautionary approach
1.12 Legal employment
  • Risk that Employment regulations are not respected

1.13 Customary rights
  • Risk related to Customary rights based on a precautionary approach
1.14 Free prior and informed consent
  • Risk related to Free prior and informed consent based on a precautionary approach
1.15 Indigenous/traditional peoples rights
  • Not applicable

1.16 Classification of species, quantities, qualities
  • False declarations are made regarding species and their volume on transport documents
1.17 Trade and transport
  • Risk related to Trade and Transport based on a precautionary approach
1.18 Offshore trading and transfer pricing
  • Risk related to Offshore trading and transfer pricing based on a precautionary approach
1.19 Custom regulations
  • Risk related to Custom Regulations based on a precautionary approach
1.20 CITES
  • Risk related to CITES based on a precautionary approach
1.1 Land tenure and management rights
Last updated on 2023-03-02 Risk related to Land tenure and management rights based on a precautionary approach Specified RISK
The risk identified for this indicator is based on a precautionary approach.•  Stakeholders acknowledge and accept that land and natural forests are State property. Consultation of experts and stakeholders, including Civil Society Organisations (CSOs), also confirmed that the State recognises customary rights for land and forest for subsistence use. An example of this is the government, with the support of an NGO working with local communitie... VIEW MORE

The risk identified for this indicator is based on a precautionary approach.

•  Stakeholders acknowledge and accept that land and natural forests are State property. Consultation of experts and stakeholders, including Civil Society Organisations (CSOs), also confirmed that the State recognises customary rights for land and forest for subsistence use. An example of this is the government, with the support of an NGO working with local communities, granting community land certificates for a select number of communities in Southern Angola to demonstrate government recognition of community land tenure rights. The role of The National Directorate of Forestry within the Ministry of Agriculture and Forestry (MINAGRIF) as authority for policy development and monitoring, and the Forestry Development Institute (IDF) role as implementation authority are also recognised and accepted by the stakeholders.

•  Civil Society Organizations (CSO) have been skeptical of the current technical capabilities of the IDF to carry out its legal mandate adequately. The IDF has also recognised capacity issues, and as a result, it is implementing a new policy in gradual pace with its current capacity. For example, according to the IDF, no long-term forest concession tenders have been established because it does not have the experience and the capacity to manage the issuance of new contracts. Instead, more manageable annual licenses are being issued based on expert consultation conducted in October 2019.

•  In post-war Angola, land tenure implementation is weak. Land property rights are sometimes unclear, and cases of residents occupying land without formal title deeds are frequent. A root cause for this are the Angolan civil wars during which internally displaced persons settled on lands they did not possess a legal title for. 

•  Various foreign aid development projects have been implemented to achieve better governance of land tenure and natural resources in Angola. These have strengthened governmental agencies, prevented conflicts, and improved land occupation security. However, the effectiveness of development projects to solve land tenure conflicts is unknown. (European Commission, 2019). 

References
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The risk applies to the following source types
  • Annual Forest Harvesting License
  • Forest Concession Contract
Risk mitigation options
Document verificationStakeholder consultation
1
Consult Local families and rural communities

Consultation shall verify that there are no ongoing land right conflicts.

2
Consult Ministry of Agriculture and Forestry (MINAGRIF)

Consultation shall verify that there are no ongoing land right conflicts.

3
Consult Forest Development Institute (IDF)

Consultation shall verify that there are no ongoing land right conflicts.

4
Verify Land title certificate
5
Verify Community land title certificate
6
Verify Annual Forest Harvesting License
Description of legal requirements
Requirements related to Land tenure and management rights are followed
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The 2010 Constitution of the Republic of Angola (Article 15) states that land is the state's property and can be transferred to individuals or corporate bodies for their rational and full use. The law clearly states that the transfer of land tenure rights over the State property does not imply the acquisition of any right over the natural resources. Natural resources, including natural forests, are property of the State, determining the condition, surveying, and harvesting for concessions (Article 16). The abovementioned provisions are elaborated in Land Law no. 9/04 (Land Law) in Articles 10, 35. The Land Law Article 37 on Customary Rights recognizes the land rights of families and rural communities that have occupied these lands for several years. 
Logging is restricted to production forests. Law No. 6/17 of January 24, 2017 (Forest and Wildlife Basic Legislation) Article 59 clarified that logging activities could be carried out in production forests, natural forests either in the public domain or under local authorities' jurisdiction in forest plantations. The article clarifies that only natural or legal Angolans can exercise logging rights in natural forests. In State-owned Forest plantations, natural or legal persons can exercise the right to carry out logging activities under logging concession contracts, under terms that are yet to be regulated.
The use and access to forest and wildlife resources are conditional on obtaining a license or concession contract issued by the Ministerial Department for the Protection of Forestry. In protection and special-purpose forests, harvesting is prohibited except for subsistence use or scientific purposes. Regarding forest conversion to other uses, forest clearing and deforestation on land classified as forests are prohibited except for special cases specified in the law.
Natural resources belong to the State. However, according to Presidential Decree no. 171/18, plantations can be private. Private plantations owners have the right to the property of plantations areas. 
Law 3/04 on Territorial Planning and Urbanization governs rural and urban land and requires territorial development plans at central, provincial, and municipal levels. Territorial planning shall respect the State's right over natural resources, including the forest use or harvesting by the rural communities or private through concessions. Rural plans shall classify rural land as agricultural or forest land.
The institutional arrangement for the management of forests is also legally defined. The Presidential Decree No. 15/18 of January approved the Ministry of Agriculture and Forests (MINAGRIF) as the ministerial department of the Executive (Government) responsible for policy in the forests subsector. Article 18 of the Presidential decree establishes the National Directorate of Forests under MINAGRIF as responsible for formulating, promoting, and monitoring forest policies and strategies. The Forest Development Institute (IDF) is established by Article 23 of the Presidential Decree No. 15/18 of January and given Executive powers by Article 138 of Law No. 6/17 of January (Forest and Wildlife Basic Law) as a legal person with administrative, financial, and asset management autonomy to implement policies in the forest and wildlife sector.
 
Legally required documents
Applicable legislation
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1.2 Concession licenses
Last updated on 2023-02-14 Risk related to Concession licenses based on a precautionary approach Specified RISK
The risk for this indicator is based on a precautionary approach.No forest concession has been issued yet since the law on concession licenses came into force (Angop (2021) and expert consultation carried out in 2019). Acknowledging a lack of experience and capacity, forest authorities currently only issue Annual Forest Harvesting Licenses and want to learn about this management before concession contracts are issued. It has therefore not been ... VIEW MORE

The risk for this indicator is based on a precautionary approach.

No forest concession has been issued yet since the law on concession licenses came into force (Angop (2021) and expert consultation carried out in 2019). 

Acknowledging a lack of experience and capacity, forest authorities currently only issue Annual Forest Harvesting Licenses and want to learn about this management before concession contracts are issued. 

It has therefore not been possible to evaluate risks related to concessions. A specified risk has been concluded based on a precautionary approach until evidence shows that the requirements related to concessions are well implemented. If concessions are being issued, the legal implementation shall be evaluated. 

References
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The risk applies to the following source types
  • Annual Forest Harvesting License
  • Forest Concession Contract
Risk mitigation options
Document verification
1
Verify Concession Agreement

Verify that the concession allocation process has been followed as legally required.

2
Verify Environmental permit for installation

Verify that the concession allocation process has been followed as legally required.

Description of legal requirements
Requirements related to concession licenses are followed
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According to the Angolan Constitution, land, in general, and natural resources are the property of the State. However, the State can define the conditions for concessions, surveys, and harvesting by law. The law clearly states that the transfer of land tenure rights over the State property does not imply the acquisition of any right over the natural resources.
Law No. 6/17 on Forest and Wildlife Basic Legislation identifies concession and license schemes as sustainable forest and wildlife management (art. 9(j)). The said act states further that using and accessing forest and wildlife resources for profit and non-profit purposes is conditional on obtaining an authorization, license, or concession contract issued by the Ministerial Department for the Protection of Forestry (art. 10). Article 52 of Presidential Decree No. 171/18 (the law that regulates the Forest and Wildlife Basic Law) clarifies access to logging rights for-profit and non-profit use through forest concession and annual harvesting licenses. 
Allocation of the right of harvesting must be based on bidding, auctioning, and developing a simplified contract under an initiative from the applicant to request for the preferred area and responsibility to carry out mapping and inventory of the area (Presidential Decree no. 171/18 (art. 61)).
Law No. 6/17 on Forest and Wildlife Basic Legislation and Presidential Decree no. 171/18 lay down the model of the contract for the concession of forest harvesting rights. It is stated that the determination of the concession areas follows the provisions contained in land use plans and relies on the demonstration of the capability of the stakeholders to use the areas according to the aims they intend to achieve. The duration of the concession contract is set up to a maximum of twenty-five years (art. 58), renewable for an equal or shorter period.
The forest concession shall be in earlier forest concessions or forest reserves. The forest concession area shall be delimited by a perimeter that marks the boundaries.
The concession must operate under a detailed management plan approved by the grantor. The concessionaire has various obligations deriving from the concession contract, such as the obligation to reforest within the exploited forest perimeter, comply with the concession contract clauses, and process the product obtained, in whole or in part (Presidential Decree No. 171/18, Art. 58). The said acts also regulate the causes of the modification or termination of the contract.
Decree no. 171/18 (art. 54) clarifies that logging rights constituted by forest concession or harvesting license are not transferrable if proven incapacity of the respective holder. The heirs duly authorized representatives or their legal representatives takes over. Transfer of license and forest harvesting to third parties will result in a fine (art 169) (TimberLex – Angola, 2021). 
 
Legally required documents
  • Concession Agreement
  • Environmental permit for installation
Applicable legislation
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1.3 Management and harvesting planning
Last updated on 2021-12-20 Risk related to Management and harvesting planning for Annual Forest Harvesting License holders based on a precautionary approach Specified RISK
There is no information available on the risks related to timber management and Harvesting planning.Since no forest concession contracts have been issued in Angola, forest level planning requirements are observed only for Annual Forest Harvesting Licenses. The simplified management plan required by Annual Forest Harvesting License holders is made as part of the application process. According to outcomes from expert consultation conducted in Octob... VIEW MORE

There is no information available on the risks related to timber management and Harvesting planning.

Since no forest concession contracts have been issued in Angola, forest level planning requirements are observed only for Annual Forest Harvesting Licenses. The simplified management plan required by Annual Forest Harvesting License holders is made as part of the application process. According to outcomes from expert consultation conducted in October 2019, the requirement to have a simplified management plan in place was found to have been enforced. However, there is a lack of details related to the planning documents' quality and whether these reflect the actual situation on the ground. Based on a precautionary approach, the risk is concluded as specified risk.

References
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The risk applies to the following source types
  • Annual Forest Harvesting License
Risk mitigation options
Document verificationField verification
1
Verify 1/100,000 map of the concession area prepared by the local services of the Institute of Geodesy and Cartography of Angola (IGCA)
2
Verify Environmental Impact Assessment
3
Verify Environmental Management Plan
4
Verify Logging plan indicating the species to be exploited, the harvesting method, the types of products to be obtained
5
Visit Harvesting site to check that the maps and management plans in place are consistent with the situation on the ground
Description of legal requirements

Requirements related to Management and harvesting planning for Annual Forest Harvesting License holders shall be followed

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Angolan law lays down various instruments and procedures for forest legal management and harvesting. The Law on Forest and Wildlife Basic Legislation provides for a National Forestry Plan at a national level. The said plan is defined as a sustainable and integrated management tool that aims at planning and implementing technical and administrative actions. The said Act also provides a Forest Management Plan, defined as a technical document indicating the sources of commercial harvesting of forest resources, aiming to ensure sustainable resource management. The plan indicates, among other things, the species and quantities of resources to be cut or hunted in each period, the technologies to be used, and the areas or zones where harvesting takes place. Forest harvesting under a concession is carried out according to detailed management plans. A simplified management plan is required (Presidential Decree No. 171/18 approving the Forestry Regulation, Law No. 6/17 on Forest and Wildlife Basic Legislation).

Forest inventories

National level inventories are the responsibility of the State. It is the responsibility of the Forest Ministerial Department to order the implementation of the National Forest Inventory at least every ten years. The Institute prepares the National Forest Inventory for Forest Development. The National Forest Inventory collects information covering all types of forests on the national territory to support the formulation of forest policies, the National Forest Plan, and the development of national land planning.

The Forest Harvesting Inventory is the holder's responsibility of logging rights, with the technical assistance of the competent ministerial department. The harvesting inventory shall contain various data, such as lists of species, estimated commercial volumes, maps of the forest composition at the date of the inventory, and after the planned harvesting, the forest regeneration potential, the percentage of burned land, and other forest parameters. The Institute shall approve the results of the submitted inventory for Forest Development.

The Management Forest Inventory is required for all individuals or legal persons, public or private, carrying out activities related to the harvesting of forests.

The Forest Ministerial Department ensures that all interested parties have constant information on the forest inventories of different types (TimberLex – Angola, 2021).

Presidential Decree No. 171/18, art. 31 (Obligations of the holder of logging rights) under item (m) mentions adopting and implementing fire control, forest fire-prevention, and firefighting plans of different origins regard coal production, shifting agriculture, and hunting.

For Annual Forest Harvesting License, Decree No. 171/18, art. 77 requires, among other application requirements, to include: 

•   A map of scale 1/100,000 scale of the area to be explored, prepared by the local services of the Institute of Geodesy and Cartography of Angola (IGCA), accompanied by a description of the intended area and respective area information on the legal situation of the land.

•   Description of the proposed forest area if there is no previous forest inventory, describe the forest types in the area and enumerate the main species present.

•   The logging plan indicates the species being exploited, the harvesting method, and the types of products the applicant proposes to obtain.

•   Environmental Impact Assessment and Environmental Management Plan.

Legally required documents
  • Environmental permit for installation
  • Forest management plan
  • Inventory report
  • Logging plan
  • 1/100,000 map of the concession area prepared by the local services of the Institute of Geodesy and Cartography of Angola (IGCA)
Applicable legislation
VIEW LESS
1.3 Management and harvesting planning
Last updated on 2021-12-20 Risk related to Management and harvesting planning for Concession contract holders based on a precautionary approach Specified RISK
There is no information available on the risks related to timber management and Harvesting planning. Since no forest concession contracts have been issued in Angola, forest level planning requirements are observed only for Annual Forest Harvesting Licenses. The simplified management plan required by Annual Forest Harvesting License holders is made as part of the application process. According to the outcomes from the expert consultation, during ... VIEW MORE

There is no information available on the risks related to timber management and Harvesting planning. 

Since no forest concession contracts have been issued in Angola, forest level planning requirements are observed only for Annual Forest Harvesting Licenses. The simplified management plan required by Annual Forest Harvesting License holders is made as part of the application process. According to the outcomes from the expert consultation, during the development of this report in October 2019, the requirement to have a simplified management plan in place was found to have been enforced. However, there is a lack of details related to the planning documents' quality and whether these reflect the actual situation on the ground. Based on a precautionary approach, the risk is concluded as specified risk.

References
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The risk applies to the following source types
  • Forest Concession Contract
Risk mitigation options
Document verificationField verification
1
Verify Forest management plan
2
Verify Inventory report
3
Verify Environmental permit for installation
4
Visit Harvesting site to check that the maps and management plans in place are consistent with the situation on the ground
Description of legal requirements
Requirements related to Management and harvesting planning for Concession contract holders should be followed
VIEW MORE

Angolan law lays down various instruments and procedures for forest legal management and harvesting. The Law on Forest and Wildlife Basic Legislation provides for a National Forestry Plan at a national level. The said plan is defined as a sustainable and integrated management tool that aims at planning and implementing technical and administrative actions. The said Act also provides a Forest Management Plan, defined as a technical document indicating the sources of commercial harvesting of forest resources, aiming to ensure sustainable resource management. The plan indicates, among other things, the species and quantities of resources to be cut or hunted in each period, the technologies to be used, and the areas or zones where harvesting takes place. Forest harvesting under a concession is carried out according to detailed management plans. A simplified management plan is required (Presidential Decree No. 171/18 approving the Forestry Regulation, Law No. 6/17 on Forest and Wildlife Basic Legislation).

Forest inventories

National level inventories are the responsibility of the State. It is the responsibility of the Forest Ministerial Department to order the implementation of the National Forest Inventory at least every ten years. The Institute prepares the National Forest Inventory for Forest Development. The National Forest Inventory collects information covering all types of forests on the national territory to support the formulation of forest policies, the National Forest Plan, and the development of national land planning.

The Forest Harvesting Inventory is the holder's responsibility of logging rights, with the technical assistance of the competent ministerial department. The harvesting inventory shall contain various data, such as lists of species, estimated commercial volumes, maps of the forest composition at the date of the inventory, and after the planned harvesting, the forest regeneration potential, the percentage of burned land, and other forest parameters. The Institute shall approve the results of the submitted inventory for Forest Development.

The Management Forest Inventory is required for all individuals or legal persons, public or private, carrying out activities related to the harvesting of forests.

The Forest Ministerial Department ensures that all interested parties have constant information on the forest inventories of different types (TimberLex – Angola, 2021).

Presidential Decree No. 171/18, art. 31 (Obligations of the holder of logging rights) under item (m) mentions adopting and implementing fire control, forest fire-prevention, and firefighting plans of different origins regard coal production, shifting agriculture, and hunting.

For Annual Forest Harvesting License, Decree No. 171/18, art. 77 requires, among other application requirements, to include: 

•   A map of scale 1/100,000 scale of the area to be explored, prepared by the local services of the Institute of Geodesy and Cartography of Angola (IGCA), accompanied by a description of the intended area and respective area information on the legal situation of the land.

•   Description of the proposed forest area if there is no previous forest inventory, describe the forest types in the area and enumerate the main species present.

•   The logging plan indicates the species being exploited, the harvesting method, and the types of products the applicant proposes to obtain.

•   Environmental Impact Assessment and Environmental Management Plan.

Legally required documents
  • Environmental Impact Assessment
  • Environmental permit for installation
  • Forest management plan
  • Inventory report
  • Logging plan
  • 1/100,000 map of the concession area prepared by the local services of the Institute of Geodesy and Cartography of Angola (IGCA)
Applicable legislation
VIEW LESS
1.4 Harvesting permits
Last updated on 2021-12-20 Illegal transfer of Annual Forest Harvesting Licenses between national to foreign companies Specified RISK
According to stakeholders and media reports, some Angolan Annual Forest Harvesting License holders have transferred their licenses to foreign companies and nationals, contradicting Article 54 of the forest regulation. Authorities are aware of reports on illegality; media reports quote authorities referring to the sanctions which come with this offense. During the development of this report, personal communication also confirmed that authorities k... VIEW MORE

According to stakeholders and media reports, some Angolan Annual Forest Harvesting License holders have transferred their licenses to foreign companies and nationals, contradicting Article 54 of the forest regulation. Authorities are aware of reports on illegality; media reports quote authorities referring to the sanctions which come with this offense. During the development of this report, personal communication also confirmed that authorities know or have heard of reports of such illegal transfer of Annual Forest Harvesting Licenses. The main reason for this illegal transfer is perceived to be license applicants' inadequate financial capacity. Therefore, authorities have decided to strengthen the verification of the applicant's financial capacity and equipment ownership to decrease the likelihood of illegal license transfers. However, the implementation of the strengthening of the enforcement of this requirement is yet to have been seen, and its effectiveness evaluated. 

No further information and evidence were identified to state low risk related to applying and issuing licences. 

References
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The risk applies to the following source types
  • Annual Forest Harvesting License
Risk mitigation options
Document verificationStakeholder consultation
1
Verify Annual Forest Harvesting Licenses and associated documents (environmental permit for installation, environmental impact assessment report, company registration, etc.) shall be held and operated by Angolan nationals
2
Consult with Forest Development Institute (IDF) to ensure that Annual Forest Harvesting Licenses are allocated to Angolan nationals
Description of legal requirements

Annual Forest Harvesting Licenses shall be granted to Angolian nationals only

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Access to harvesting rights of forest resources for profit and non-profit purposes shall be established by granting annual forest concessions and harvesting licenses. The Forest Ministerial Department is responsible for authorising the conclusion of concession contracts (see 1.2) and the issue of Annual Forest Harvesting Licenses. 

Annual Forest Harvesting Licences

Law No. 6/17 Forest and Wildlife Basic Law states that the Annual Forest Harvesting Licences shall be issued only for one season of felling or harvesting of wood and Non-Timber Forest Products and shall expire on October 31 of the year in which they were issued or on an earlier date expressly mentioned in the permit. Decree No. 115/21 of May 5, 2021, established the calendar for issuing the Annual Forestry Harvesting Licence during the Forest Campaign period. Decree No. 95/21 of April 15, 2021, established quotas for issuing Annual Forest Harvesting Licences for different provinces and species (for round wood, firewood, and charcoal).

Annual Forest Harvesting Licences shall only be issued for areas not exceeding 1,000 hectares in production forests, in Community Forest areas, on land from previous concessions, or reserves extinguished or deactivated. All Annual Forest Harvesting Licenses holders shall provide the grantor with a report of the activity developed.

Community Forest Harvesting can be collective, individual, or collective in partnership with third parties. The harvesting of forests by communities shall take place on the public domain or communal land. The communities have the right to use and enjoy other land granted through licenses (Forest and Wildlife Basic Law, art 74).  

Logging rights in natural forest is reserved for the citizens of Angola. Foreign nationals can only give administrative and logistical support to Angolan nationals regarding annual harvesting licenses. Therefore, all existing Annual Forest Harvesting licenses in the natural forest must be held and operated by Angolan nationals. However, logging activities in forest plantations can be carried out by natural and legal persons who fulfill the requirements of the Forest and Wildlife Basic Act (Law No. 6/17 Forest and Wildlife Basic Law, art. 77)

Application and issuance of Annual Forest Harvesting Licence

When applying for an Annual Forest Harvesting Licence, individuals must provide proof of Angolan citizenship or a social agreement in the case of legal or collective persons. It is also required to prove financial capacity adequate to the volume of wood applied for, such as a bank statement and proof of ownership of logging equipment (Law No. 6/17 Forest and Wildlife Basic Law, art. 77). In the application and issuance of Annual Forest Harvesting Licenses. 

Suppose an application for an Annual Forest Harvesting License is successful and the applicant accepts the technical and administrative conditions. In that case, the IDF Director-General issues the Annual Forest Harvesting License after the payment of fees due at the local tax office of the region where the logging is to be carried out (Law No. 6/17, art.77). Logging rights are not transferrable unless proven incapacity of the respective holder; the heirs become authorized representatives (Law no. 6/17, art 54). 

Article 168 (sanctions) and Article 169 (accessory punishment measures) of the forest regulation provide a list of sanctions for infringements against both the forest and basic wildlife law and the forest regulation; these include in item e), a fine for transfer of the license and forest harvesting by third parties (TimberLex – Angola, 2021).

Legally required documents
  • Declaration of subjection to current laws and national courts in case of conflict
  • Declaration of the traditional authorities and of the municipal administration where it intends to carry out the forest harvesting
  • Environmental Impact Assessment
  • Environmental permit for installation
  • Identification of the applicant with proof of national citizenship
  • Maps of the location of the area to be exploited
  • Partnership agreement recognized at the National Registry Office
  • Proof of company registration or association
  • Proof of financial capacity adequate to the volume required, to be provided by a bank statement
  • Proof of ownership of the logging equipment
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1.4 Harvesting permits
Last updated on 2021-12-20 Logging activities are carried out without or with a fraudulent permit Specified RISK
According to stakeholders and media reports, some Angolan Annual Forest Harvesting License holders have transferred their licenses to foreign companies and nationals, contradicting Article 54 of the forest regulation. Authorities are aware of reports on illegality; media reports quote authorities referring to the sanctions which come with this offense. During the development of this report, personal communication also confirmed that authorities k... VIEW MORE

According to stakeholders and media reports, some Angolan Annual Forest Harvesting License holders have transferred their licenses to foreign companies and nationals, contradicting Article 54 of the forest regulation. Authorities are aware of reports on illegality; media reports quote authorities referring to the sanctions which come with this offense. During the development of this report, personal communication also confirmed that authorities know or have heard of reports of such illegal transfer of Annual Forest Harvesting Licenses. The main reason for this illegal transfer is perceived to be license applicants' inadequate financial capacity. Therefore, authorities have decided to strengthen the verification of the applicant's financial capacity and equipment ownership to decrease the likelihood of illegal license transfers. However, the implementation of the strengthening of the enforcement of this requirement is yet to have been seen, and its effectiveness evaluated.

No further information and evidence were identified to state low risk related to applying and issuing licences. 

References
VIEW LESS
The risk applies to the following source types
  • Annual Forest Harvesting License
  • Forest Concession Contract
Risk mitigation options
Document verificationField verificationStakeholder consultation
1
Check validity of Harvesting permit
2
Verify that information in the license correspond with the situation in the field
3
Consultation with Forest Development Institute (IDF) to verify the validity of the Forest harvesting License
Description of legal requirements
Logging activities are carried outonly with valid permit
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Access to harvesting rights of forest resources for profit and non-profit purposes shall be established by granting annual forest concessions and harvesting licenses. The Forest Ministerial Department is responsible for authorising the conclusion of concession contracts (see 1.2) and the issue of Annual Forest Harvesting Licenses. 

Annual Forest Harvesting Licences

Law No. 6/17 Forest and Wildlife Basic Law states that the Annual Forest Harvesting Licences shall be issued only for one season of felling or harvesting of wood and Non-Timber Forest Products and shall expire on October 31 of the year in which they were issued or on an earlier date expressly mentioned in the permit. Decree No. 115/21 of May 5, 2021, established the calendar for issuing the Annual Forestry Harvesting Licence during the Forest Campaign period. Decree No. 95/21 of April 15, 2021, established quotas for issuing Annual Forest Harvesting Licences for different provinces and species (for round wood, firewood, and charcoal).

Annual Forest Harvesting Licences shall only be issued for areas not exceeding 1,000 hectares in production forests, in Community Forest areas, on land from previous concessions, or reserves extinguished or deactivated. All Annual Forest Harvesting Licenses holders shall provide the grantor with a report of the activity developed.

Community Forest Harvesting can be collective, individual, or collective in partnership with third parties. The harvesting of forests by communities shall take place on the public domain or communal land. The communities have the right to use and enjoy other land granted through licenses (Forest and Wildlife Basic Law, art 74).  

Logging rights in natural forest is reserved for the citizens of Angola. Foreign nationals can only give administrative and logistical support to Angolan nationals regarding annual harvesting licenses. Therefore, all existing Annual Forest Harvesting licenses in the natural forest must be held and operated by Angolan nationals. However, logging activities in forest plantations can be carried out by natural and legal persons who fulfill the requirements of the Forest and Wildlife Basic Act (Law No. 6/17 Forest and Wildlife Basic Law, art. 77)

Application and issuance of Annual Forest Harvesting Licence

When applying for an Annual Forest Harvesting Licence, individuals must provide proof of Angolan citizenship or a social agreement in the case of legal or collective persons. It is also required to prove financial capacity adequate to the volume of wood applied for, such as a bank statement and proof of ownership of logging equipment (Law No. 6/17 Forest and Wildlife Basic Law, art. 77). In the application and issuance of Annual Forest Harvesting Licenses. 

Suppose an application for an Annual Forest Harvesting License is successful and the applicant accepts the technical and administrative conditions. In that case, the IDF Director-General issues the Annual Forest Harvesting License after the payment of fees due at the local tax office of the region where the logging is to be carried out (Law No. 6/17, art.77). Logging rights are not transferrable unless proven incapacity of the respective holder; the heirs become authorized representatives (Law no. 6/17, art 54). 

Article 168 (sanctions) and Article 169 (accessory punishment measures) of the forest regulation provide a list of sanctions for infringements against both the forest and basic wildlife law and the forest regulation; these include in item e), a fine for transfer of the license and forest harvesting by third parties (TimberLex – Angola, 2021).

Legally required documents
  • Declaration of subjection to current laws and national courts in case of conflict
  • Declaration of the traditional authorities and of the municipal administration where it intends to carry out the forest harvesting
  • Environmental Impact Assessment
  • Environmental permit for installation
  • Identification of the applicant with proof of national citizenship
  • Maps of the location of the area to be exploited
  • Partnership agreement recognized at the National Registry Office
  • Proof of company registration or association
  • Proof of financial capacity adequate to the volume required, to be provided by a bank statement
  • Proof of ownership of the logging equipment
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1.5 Payment of royalties and harvesting fees
Last updated on 2021-12-20 Risk related to Payment of royalties and harvesting fees based on a precautionary approach Specified RISK
There are stakeholder concerns that timber rights holders are more knowledgeable in the species and forest operations than the staff of the Forest Development Institute (IDF). The latter are on-the-ground enforcing these regulations, which can lead to IDF staff not identifying potential violations of classification, according to outcomes from expert consultation conducted in October 2019. Species and timber volume are important variables for calc... VIEW MORE

There are stakeholder concerns that timber rights holders are more knowledgeable in the species and forest operations than the staff of the Forest Development Institute (IDF). The latter are on-the-ground enforcing these regulations, which can lead to IDF staff not identifying potential violations of classification, according to outcomes from expert consultation conducted in October 2019. Species and timber volume are important variables for calculating the forest product fee; see findings for 1.16 Classification of Species, Quantities, and Qualities and 1.17 Trade and Transport. If species are incorrectly classified, there is a risk of incorrect payment VAT. This conclusion has been based on precautionary approach.

References
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The risk applies to the following source types
  • Annual Forest Harvesting License
  • Forest Concession Contract
Risk mitigation options
Document verificationStakeholder consultation
1
Verify Annual Forest Harvesting License
2
Verify Certificate of Origin
3
Verify Transit permit

Transit permit indicates the species, the volume harvested and the amount being transported for which the applicable fees are calculated

4
Verify Bank payment receipts

Bank payment receipts - 30% payment for reforestation and 10% for local administration.

5
Verify Tax Non-debtor clearance

Bank payment receipts - 30% payment for reforestation and 10% for local administration.

6
Verify Income tax non-debtor letter from the General Tax Administration upon request
7
Consult General Tax Administration of the Ministry of Finance
Consult to obtain information on the payment of taxes and fees
8
Consult Forest Development Institute (IDF)
Consult to obtain information on the payment of taxes and fees
9
Consult Ministry of Agriculture and Forestry (MINAGRIF)
Consult to obtain information on the payment of taxes and fees
Description of legal requirements
Requirements related to Payment of royalties and harvesting fees are followed
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Law no. 6/17 of January 24, 2017 (Forests and Wildlife Basic Law), Article 14, item 5(m) and the Presidential Decree No. 171/18 approving the Forestry Regulation require natural or legal persons engaged in activities relating to forest and wildlife resources to pay fees and other special contributions due to forest and wildlife harvesting.
The Industrial Tax Code set the basis for the taxation of industrial activity, including forest processing. Taxpayers will have to justify arm's length pricing in the cases of commercial transactions of the taxpayer with other "special relations" entities.
Joint Executive Decree No. 200/16 on forestry taxes establishes the forestry taxes and other charges resulting from the harvesting of forestry products. It also applies to the harvesting of forestry non-timber products, issuing forestry certificates and permits, transport authorization, and conducting surveys to update the forestry taxes amounts and the responsibility of the Central and Local Executive Services of the Forestry Development Institute.
The Presidential decree 171/18 of July 23, 2018, regulates Law no. 6/17 and the Joint Decree #200/16 April 26, 2016, of the Ministry of Finance and Agriculture, which specifies the set requirements for calculating forest fees. The product value calculation upon which the forest product fees are calculated is based on species class number x the UCF (Fiscal Correction Unit) x Volume. From this value, 30% must be paid as reforestation tax and 10% for local administration while the forest enterprise retains the remaining 60%. 
The Presidential Decree No. 171/18 approving Forests and Wildlife Basic Law Article 77 (Procedures) (11) indicates the is issued after the payment of fees. Once the applicant has accepted the technical and administrative conditions, also, under Article 78 (License Revalidation) of the Forest regulation, the Annual Forest Harvesting License could not be started or completed during the year of harvesting. Still, it can be revalidated under specified justifiable conditions, which, if accepted, requires the payment of a 5% increase on exploration fees paid when initially established. In the same forest regulation under Article 72 (General Characterization) for Annual Forest Harvesting License holders) item (d) clarifies the obligation to pay logging and reforestation fees.
Article 31 (Obligations of the holder of logging rights) approves the Forestry Regulation. Item (e) requires that all timber rights holders are required to make timely and full payment of forest operating fees and provide compensation for any collateral damages to the state.
 
Legally required documents
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1.6 Value-added taxes and other sales taxes
Last updated on 2021-12-20 Risk related to Value-added taxes and other sales taxes based on a precautionary approach Specified RISK
The legislation on VAT is only recently introduced in Angola, and as a precautionary approach, there is a risk that the law is not enforced due to the recently introduced requirements. It is still early to evaluate the implementation of the law.... VIEW MORE

The legislation on VAT is only recently introduced in Angola, and as a precautionary approach, there is a risk that the law is not enforced due to the recently introduced requirements. It is still early to evaluate the implementation of the law.

References
VIEW LESS
The risk applies to the following source types
  • Annual Forest Harvesting License
  • Forest Concession Contract
Risk mitigation options
Document verificationStakeholder consultation
1
Verify Annual Forest Harvesting License
Annual Forest Harvesting License indicates the total volume of timber and the volume of specific species approved for harvesting under the license)
2
Verify Certificate of Origin
Certificate of origin indicates the species, the volume harvested and the amount being transported for which the applicable fees are calculated)
3
Verify Transit permit

Transit permit indicates the species, the volume harvested and the amount being transported for which the applicable fees are calculated

4
Verify Bank payment receipts
Bank payment receipts - 30% payment for reforestation and 10% for local administration
5
Verify Tax Non-debtor clearance
Bank payment receipts - 30% payment for reforestation and 10% for local administration
6
Verify Income tax non-debtor letter from the General Tax Administration upon request
7
Consult General Tax Administration of the Ministry of Finance
Consult to obtain information on the payment of taxes and fees
8
Consult Forest Development Institute (IDF)
Consult to obtain information on the payment of taxes and fees
9
Consult Ministry of Agriculture and Forestry (MINAGRIF)
Consult to obtain information on the payment of taxes and fees
Description of legal requirements
Requirements related to Value-added taxes and other sales taxes are followed
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Value Added Tax (VAT) has been introduced in Angola by Law no. 7/19 of 24 April 2019.

The General Regime for VAT payment is 14%. VAT is levied upon a) the transmission of goods and services rendered within the Angolan territory; and b) the import of goods. 

Among the taxpayers subjected to VAT are: 

a)   Any individual or entity that performs any of the acts to which VAT is levied; 

b)   Any individual, legal entity, or entities that acquire services from non-resident entities without domicile, headquarters, or permanent establishment in the national territory; 

c)   The estate, the governmental entities, Public Institutes, Municipalities, Public Institutions of pension and social security, except when they act within their powers of authority and provide no distortions to the competition arise; 

d)   Political parties and coalitions, trade unions, and religious institutions are legally constituted, performing the operations that are subjected to VAT (Ernst and Young, 2021).

General VAT regime

All entities with a turnover or goods import operations higher than AOA (kwanza-local currency) 350 million are liable to the General VAT regime. These taxpayers and those that choose to be framed in the standard regime should assess VAT on the supplies of goods and services and, in principle, can deduct the VAT incurred on their purchases. 

Entities operating in the manufacturing industry are always required to be under the standard VAT regime.

The taxpayers subject to this regime should:

•   Assess VAT on invoices issued.

•   File a monthly VAT return up to the last working day of the end of the month following the one in which the operations were carried out (file all the respective annexes of the VAT return).

•   Have proper accounting according to Angolan PGC (Angolan GAAP).

•   When carrying out exclusively exempt operations, these taxpayers must pay stamp tax on the receipt at a rate of 7% (Ernst and Young, 2021).

Simplified VAT Regime

Angolan Law no. 42/20 of 31 December 2020, approving the State Budget for 2021, introduced a new VAT Regime - Simplified VAT Regime - which applies to taxpayers whose annual turnover and/or import operations the previous 12 months was equal to AOA 350 million or less. 

This new Simplified VAT Regime, if applicable to a taxpayer, provides for:

•   VAT to be charged at a rate of 7% on the turnover amount effectively paid by the customers related to the sales of goods and services subject to VAT and not exempt.

•   VAT to be charged (through the reverse-charge mechanism) at a rate of 7% on the services acquired and paid to non-resident entities.

•   Recovery of 7% of the VAT incurred on the acquisitions of goods and services (including import VAT).

•   Refund claims of the correspondent VAT credit.

•   Concerning VAT-exempt transactions performed, payment of Stamp Tax at a rate of 7% on the receipt of discharge of such transactions related to item 23.3 of the table attached to the Stamp Tax Code, which may be allowed against income tax (Ernst and Young, 2021).

Taxpayers under the Simplified VAT Regime may opt to be included in the standard VAT regime if all the following requirements are fulfilled:

•   Organised accounting according to Angolan PGC (Angolan GAAP).

•   Absence of tax and customs debt.

•   Registration duly updated in the system of the General Register of Taxpayers.

•   Issuance of invoices/equivalent documents through certified billing software.

•   Submission by electronic data transmission regarding the VAT returns and the elements of its accounts (PWC, 2021). 

Scope of VAT

•   Taxpayers whose annual turnover or import transactions are equal to or less than AOA10 million are excluded from the scope of VAT (PWC, 2021). 

Legally required documents
  • Tax Non-debtor clearance
Applicable legislation
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1.7 Income and profit taxes
Last updated on 2021-12-20 Risk related to Income and profit taxes based on a precautionary approach Specified RISK
There is no information on the risks related to Income and profit taxes.... VIEW MORE

There is no information on the risks related to Income and profit taxes.

References
VIEW LESS
The risk applies to the following source types
  • Annual Forest Harvesting License
  • Forest Concession Contract
Risk mitigation options
Document verificationStakeholder consultation
1
Verify Annual Forest Harvesting License
Annual Forest Harvesting License indicates the total volume of timber and the volume of specific species approved for harvesting under the license)
2
Verify Certificate of Origin
Certificate of origin indicates the species, the volume harvested and the amount being transported for which the applicable fees are calculated)
3
Verify Transit permit
Transit permit indicates the species, the volume harvested and the amount being transported for which the applicable fees are calculated)
4
Verify Bank payment receipts
Bank payment receipts - 30% payment for reforestation and 10% for local administration
5
Verify Tax Non-debtor clearance
Bank payment receipts - 30% payment for reforestation and 10% for local administration
6
Verify Income tax non-debtor letter from the General Tax Administration upon request
7
Consult General Tax Administration of the Ministry of Finance
Consult to obtain information on the payment of taxes and fees
8
Consult Forest Development Institute (IDF)
Consult to obtain information on the payment of taxes and fees
9
Consult Ministry of Agriculture and Forestry (MINAGRIF)
Consult to obtain information on the payment of taxes and fees
Description of legal requirements

Requirements related to Income and profit taxes are followed

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Law no. 26/2020, of 20th July 2020, approved several amendments to the Industrial Tax Code. By the amendment, the Standard Tax Rate was reduced from 30% to 25%. In addition, the new law replaced the two existing taxation groups (Group A and B) with a General and a Simplified regime.

Currently, the tax rate (25%) is on the profits deriving from business activities carried out in Angola by resident entities or non-resident entities with a permanent tax establishment, as defined by Angolan domestic legislation (PWC, 2021). 

The General Tax Code, Law No. 21/14, of October 22 sets the general basis for tax in Angola to include income tax. General Tax Code (Law 21/20) was amended in July 2020. 

Law no 10/14 of October 22, 2014 (Industrial Tax Code) sets the basis for taxation of industrial activity, including forest processing. The Industrial Tax Code was amended by Law no. 26/2020 of 20 July. Among the key amendments is the subjection of persons and entities to industry tax. That is in addition to commercial entities; the industrial tax now applies to civil firms with or without a commercial activity object, cooperatives, foundations, autonomous funds, public companies, and other public or private law bodies with headquarters or place of effective management within the Angolan territory (PWC, 2021).

Legally required documents
  • Income tax non-debtor letter from the General Tax Administration upon request
Applicable legislation
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1.8 Timber harvesting regulations
Last updated on 2021-12-20 Risk of harvesting below the minimum allowed felling diameter Specified RISK
During the development of this report (October 2019), experts have indicated that: • Some Annual Forest Harvesting License holders are known to harvest timber below the minimum diameter and beyond their permitted areas' boundaries. • Illegal timber harvested in the situations described above is processed using mobile wood processing machinery before being transported to any of the three functioning timber products warehouses for control... VIEW MORE

During the development of this report (October 2019), experts have indicated that: 

• Some Annual Forest Harvesting License holders are known to harvest timber below the minimum diameter and beyond their permitted areas' boundaries. 

• Illegal timber harvested in the situations described above is processed using mobile wood processing machinery before being transported to any of the three functioning timber products warehouses for control and application of timber export permits, phytosanitary certificates, and other documents. 

• Violations of harvesting restrictions continue given the lack of control by authorities and the ongoing improvement of the forestry sector, which includes the establishment of annual harvesting quotas for each of the 16 timber-producing provinces. Although the authorities have stepped up enforcement measures, inadequate regulator’s technical capacity and logistics such as transport for field supervisors have weakened enforcement efforts. Timber license holders and their foreign partners also have better technical knowledge of species and forest operations than regulators. Therefore there is a high risk that the regulator could be easily evaded. 

• Perceived corruption among government officials and the influence of “powerful generals” also contribute to timber right holders and traders circumventing harvesting requirements.

References
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The risk applies to the following source types
  • Annual Forest Harvesting License
  • Forest Concession Contract
Risk mitigation options
Document verificationField verificationStakeholder consultation
1
Verify Forest management plan
2
Verify valid annual harvesting license specifying the species that the company is authorised to harvest
3
Verify Site logbooks
4
Verify Reports of field checks and inspections carried out by representatives from the Ministry of Forests
5
Consult Civil society organisations
Consult to obtain information on the progress of harvesting activities on the ground
6
Consult Local forest administration
Consult to obtain information on the progress of harvesting activities on the ground
7
Visit Harvesting site
Carry out field checks (expert, independent monitor), and notably carry out the following checks: That the harvesting operations are compliant with the species and diameters authorised in the legally required documents (forest management plan and annual operating permit), as well as the specified volumes; That the limits of the logging area are respected. Check also that other legal requirements are in place
Description of legal requirements
Requirements related to Timber harvesting regulations are followed
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Access to harvesting rights of forest resources for-profit and non-profit purposes shall be established by granting annual forest concessions or Annual Forest Harvesting Licences. The Forest Ministerial Department is responsible for authorizing the conclusion of concession contracts and the issue of Annual Forest Harvesting Licences.
Angolan legislation does not contain specific provisions on artisanal logging, although it recognizes the right of all the citizens to use the forest resources for artisanal use.
The procedures for awarding the Annual Forest Harvesting License include submitting a forest plan, indicating the harvesting method to be used. The species to be harvested and the types and products obtained from the logging operations (Presidential Decree No. 171/18 of 23 July 2018, art 77). Felling is required to observe the minimum felling diameter established for each timber species, as well as seasonal limitation. Article 37 of the presidential decree defines harvesting as the year when weather conditions permit logging in natural forests. The period of the forest campaign begins on May 1 and ends on October 31 of the same year. Logging in natural forests is allowed during this period, and all harvesting activities are required to be compulsorily withdrawn by its end. Article 27 from the Forests and Wildlife Basic Law defines that the Ministerial Department in charge of Forestry and Wildlife establishes the annual period of vegetative reproduction for the different forest species, prohibited from harvesting.
Harvesting activities are restricted to specific operations such as a) removal of forest products, (b) extraction of dry fuel material, c) wood for community use, and e) forest plantation management activities. Clear sanctions are also detailed in the Forests and Wildlife Basic Law to deter offenders.
Law no. 6/17 - Law on the Bases of Forests and Wildlife, Article 59 (forestry exploration activities) clarifies that logging activities must only be carried out in production forests. 
Article 38 (classification of wood producing species) directs timber classification according to their commercial, scientific value, rarity, utility, and strength. Timber-producing species are classified as a function of density group and class of technological quality. This classification is outlined in Annex I of the forest regulation. Harvesting is limited to the species listed in the forest concession contract as given under Article 60 (forms of and operation under a forest concession contract) item (3).
Sanctions for infringements related to logging activities are provided in Chapter XIII (infringements) Article 168 (inquiries and sanctions), including:
•    Logging in the vegetative rest period.
•    Carry out logging outside the authorized area.
•    Logging of species not included in the logging plan or license.
•    Harvest volumes greater than those contained in the logging plan and the logging license.
•    Harvesting, cutting or damaging, processing, marketing, or displaying products from endangered species or have ecological, aesthetic, historical, or cultural value.
 
Legally required documents
Applicable legislation
VIEW LESS
1.8 Timber harvesting regulations
Last updated on 2021-12-20 Risk of harvesting beyond boundaries Specified RISK
During the development of this report (October 2019), experts have indicated that: • Some Annual Forest Harvesting License holders are known to harvest timber below the minimum diameter and beyond their permitted areas' boundaries. • Illegal timber harvested in the situations described above is processed using mobile wood processing machinery before being transported to any of the three functioning timber products warehouses for control... VIEW MORE

During the development of this report (October 2019), experts have indicated that: 

• Some Annual Forest Harvesting License holders are known to harvest timber below the minimum diameter and beyond their permitted areas' boundaries. 

• Illegal timber harvested in the situations described above is processed using mobile wood processing machinery before being transported to any of the three functioning timber products warehouses for control and application of timber export permits, phytosanitary certificates, and other documents. 

• Violations of harvesting restrictions continue given the lack of control by authorities and the ongoing improvement of the forestry sector, which includes the establishment of annual harvesting quotas for each of the 16 timber-producing provinces. Although the authorities have stepped up enforcement measures, inadequate regulator’s technical capacity and logistics such as transport for field supervisors have weakened enforcement efforts. Timber license holders and their foreign partners also have better technical knowledge of species and forest operations than regulators. Therefore there is a high risk that the regulator could be easily evaded. 

• Perceived corruption among government officials and the influence of “powerful generals” also contribute to timber right holders and traders circumventing harvesting requirements.

References
VIEW LESS
The risk applies to the following source types
  • Annual Forest Harvesting License
  • Forest Concession Contract
Risk mitigation options
Document verificationField verificationStakeholder consultation
1
Verify Forest management plan
2
Verify valid annual harvesting license specifying the species that the company is authorised to harvest
3
Verify Site logbooks
4
Verify Reports of field checks and inspections carried out by representatives from the Ministry of Forests
5
Consult Civil society organisations
Consult to obtain information on the progress of harvesting activities on the ground
6
Consult Local forest administration
Consult to obtain information on the progress of harvesting activities on the ground
7
Visit Harvesting site
Carry out field checks (expert, independent monitor), and notably carry out the following checks: That the harvesting operations are compliant with the species and diameters authorised in the legally required documents (forest management plan and annual operating permit), as well as the specified volumes; That the limits of the logging area are respected. Check also that other legal requirements are in place
Description of legal requirements
Harvesting should happen beyond boundaries
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Legally required documents
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1.9 Protected sites and species
Last updated on 2021-12-20 Risk of illegal logging of protected species Specified RISK
Clear definitions are given in the forest legislation to protect important sites and species. Still, limited information was available to evaluate the actual implementation of the legal requirements related to forestry. There have been reports of illegal cutting and exporting Mussivi African Rosewood (Guibourtia coleosperma), a species banned from harvesting and exporting in Angola. According to expert consultation conducted in October 2019, suc... VIEW MORE

Clear definitions are given in the forest legislation to protect important sites and species. Still, limited information was available to evaluate the actual implementation of the legal requirements related to forestry. 

There have been reports of illegal cutting and exporting Mussivi African Rosewood (Guibourtia coleosperma), a species banned from harvesting and exporting in Angola. According to expert consultation conducted in October 2019, such violations were mainly within the period immediately after the ban, and the authorities have been effective in making arrests. However, recent sources (Paulina, 2021) indicate that Mussivi African Rosewood's illegal logging is still present. 

According to Huntly (2019), many of the biodiversity hotspots identified in protected areas expansion strategies are still to be accurately surveyed, described, and gazetted. Huntly further states that Angola has excellent conservation strategies at a national scale, and several parks have pragmatic ‘emergency’ management plans. Still, there is a need for adaptation and implementation of these plans. For many protected areas, a triage approach to zonation and investment is appropriate where land invasions, illegal infrastructure developments, and other irreversible developments have taken place. 

References
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The risk applies to the following source types
  • Annual Forest Harvesting License
  • Forest Concession Contract
Risk mitigation options
Document verificationField verificationScientific testing
1
Verify Annual Forest Harvesting License
2
Verify Special Protected Species Authorisation permit
3
Visit harvesting site to verify that protected species identified in harvesting documents have not been harvested.
While conducting onsite audits, verify that protected species identified in harvesting documents have not been harvested.
4
Verify the species with visual identification or timber testing
Description of legal requirements
Requirements related to Protected sites and species are followed
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The Constitutional Law of the Republic of Angola states that the state shall take the requisite measures to protect the environment and species of flora and fauna throughout the national territory and maintain the ecological balance. Angola's forests and wildlife are defined as national heritage, whose protection constitutes an obligation of the state, citizens, and legal persons carrying out economic activities related to them.

The Law no. 6/17 of 24 January 2017 (Forests and Wildlife Basic Law), Chap. II, art II(j), the State is required to ensure the protection of endangered species, endangered ecosystems, and vulnerable or in any way requiring special protection measures. Under Article 14(f), timber rights holders, among other forest use right holders, must refrain from harvesting, cutting, hunting, marketing, or otherwise causing harm to endangered, rare, and vulnerable species or their habitats. Protected trees benefit from the status of natural monuments. They are to be identified in territories by signboard indicating the common and scientific names of the species and the classification category. Cutting or mutilation of protected trees is prohibited.

Article 39 (operating restrictions) restricts the cutting of protected species following Article 16 (protected species), which requires logging authorisation under specified conditions. 

Protection of species

Special authorisation from the Ministry of Agriculture and Forestry is required for (Decree 171/18 of 23 July 2018, art.16): 

•   cutting of specimens of forest species classified as rare threatened or of particular ecological value; 

•   the cutting of specimens of vulnerable and endemic species. 

Harvesting restrictions are provided for protected species. 

Under Decree 171/18 of 23 July 2018, the authorization to harvest species may subsequently be suspended, reduced in quantity, or prohibited from export if new knowledge of the species concerned is obtained. The Ministry of Agriculture and Forestry is required to keep the list of rare, threatened, and endangered species up to date. Protected trees are considered natural monuments, and felling or mutilation of protected trees are prohibited. The protected trees are to be identified on the ground by a sign indicating the common and scientific names of the species and the classification certificate. (art. 16). Article 38 (2) (classification of wood producing species) of Decree 171/18 of 23 July 2018 requires the Ministerial Department, which oversees the forest sector, in coordination with the Ministerial Department, that oversees the environmental permit; to update the list of species of flora considered as protected and the list of species classification (See sub-category 1.16) in which rarity of species shall be considered together with other characteristics relevant for wood. 

It is forbidden to cut Mussivi African Rosewood (Guibourtia coleosperma). The logging ban has been in place since August 2018 (Executive decree No. 278/18) and is extended until March 2022 (Executive Decree No. 57/21 of 3rd March 2021). 

Protected and special-purpose forests

The State shall ensure that the areas of protected and special-purpose forests are defined. The Presidential decree 171/18 of 23 July 2018, art. 6(2) states that permanently protected forests may be natural or plantations. Permanently protected forests in terms of their location include: 

•   At headwaters and riverbanks within a perimeter of 50 meters and a minimum range of 50 to 500 meters, respectively.

•   Around ponds, lakes, or water reservoirs within a radius of 50 to 100 meters.

Article 5 prohibits the harvesting of forest products in permanent protection forests, except for subsistence uses or scientific purposes. 

The state, by legislation, established several national parks for protecting endangered ecosystems and habitats and rare, threatened, and endangered species (TimberLex – Angola, 2021).

Legally required documents
Applicable legislation
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1.10 Environmental requirements
Last updated on 2021-12-20 Risk related to Environmental requirements based on a precautionary approach Specified RISK
Environmental laws are established in the forest legislation, but there is no information on the risks related to violations of environmental requirements.... VIEW MORE

Environmental laws are established in the forest legislation, but there is no information on the risks related to violations of environmental requirements.

References
VIEW LESS
The risk applies to the following source types
  • Annual Forest Harvesting License
  • Forest Concession Contract
Risk mitigation options
Document verificationField verification
1
Verify Environmental Impact Assessment
2
Verify Environmental permit for installation
3
Visit harvesting site to verify that all environmental requirements are adhered to in the field
Description of legal requirements
Requirements related to Environmental requirements are followed
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Environmental rights are clearly expressed in Article 39 of the National Constitution, 2020 and encourage the state to take necessary measures to protect the environment and the species of flora and fauna in the country; maintain the ecological balance, ensure the correct location of economic activities, and the sustainable development and use of all-natural resources, respect for the rights of future generations and the preservation of species.

Forestry/environmental laws include environmental protection. Users of forests for economic activities to carry out activities to minimize the negative environmental impacts of activities on forest ecosystems (Forest and Wildlife Basic Law No. 6/17, art. 14(e) requires). Forest harvesting rights holders are to use forest resources sustainably (Forest and Wildlife Basic Law No. 6/17, art. 70) and ensure (a) compliance with existing legislation, in particular of the provisions of the Forest and Wildlife Basic Law, the legislation on waters, land, town planning and land use planning and environmental protection, as well as the conditions laid down in the concession contract or community license.

The Presidential Decree No. 171/18 of 23 July 2018 (the Forest Regulation), art. 114 requires that an Environmental Impact Assessment be imposed by state entity: (a) for planting projects on areas larger than 1,000 hectares; (b) for planting projects which the land on which the person concerned already holds title to land by law and land that is granted for forest planting. Article 95(3) of the forest regulation further clarifies that logging or clearing of an area over 200 hectares may require prior Environmental Impact Assessment at the expense of the person concerned. Article 77, which gives the detailed procedure for the award of the Annual Forest Harvesting License, includes the applicant's requirement to hold an EIA report approved by the Ministry of Environment and the Ministry of Agriculture and Forestry for the area for which the application is made.

Law no. 5/98 of 19 June (Law on the Environment) establishes the basic principles to be carried out by the Government of Angola on the following issues: 1) natural heritage protection, 2) ecosystem preservation, and 3) environmental conservation, to guarantee the quality of human life. This law concerns the National Programme of Environmental Management, to be drawn up according to the national legislation. It specifies conditions and requirements to be satisfied by environmental quality standards. The Decree No. 51/04 Environmental Impact Assessment establishes the environmental requirements to be completed to perform any environmental activity. It has an Annex listing all the activities requiring an EIA authorization. Decree No. 59/07 (Environmental Licensing) regulates environmental licensing of all activities that may have a significant environmental and social impact because of their nature, location, or size. Particular attention is paid to the regulation of the licensing procedure and the licensees' rights and duties. It establishes a national registry of environmental consultants to support the licensing process. The Annexes provide the license models for both operations and installations. 

Legally required documents
  • Environmental Impact Assessment
  • Environmental permit for installation
Applicable legislation
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1.11 Health and safety
Last updated on 2021-12-20 Risk related to Health and safety based on a precautionary approach Specified RISK
Based on a precautionary approach, it is concluded that Health and Safety at the forest level often violate requirements as there is no enforcement or very weak enforcement of regulations (Expert consultation, 2019). ... VIEW MORE

Based on a precautionary approach, it is concluded that Health and Safety at the forest level often violate requirements as there is no enforcement or very weak enforcement of regulations (Expert consultation, 2019). 

References
VIEW LESS
The risk applies to the following source types
  • Annual Forest Harvesting License
  • Forest Concession Contract
Risk mitigation options
Field verification
1
Visit harvesting site
Verify that all Health and Safety requirements are adhered to in the field.
Description of legal requirements
Requirements related to Health and safety are followed
VIEW MORE

The General Labour Law (No. 7/15 of 15 June 2015), article 81 (general employer obligations), requires employers to take necessary measures for their workers' occupational health and safety and include the provision of PPEs. Article 83 (obligation of the worker) also makes it an offense for workers who have received PPEs, and the necessary instructions to not correctly use the collective and individual protection equipment and further not to ensure its maintenance. Under Article 85 (2) (employer emergency obligations), employers must inform the competent authorities of an accident or illness in the event of occupational accidents or illness within the time limit and follow the procedure outlined in the legislation. Article 87 (Authority of the General Labour Inspectorate) recognises that supervision of compliance with regulatory provisions on occupational health and safety is the responsibility of the Inspector General of Labour. Article 91 (medical examination) permits health authorities to carry out medical examinations of workers. The health authorities shall carry it out without the special examinations and care required by the characteristics of certain types of labor provided for in the applicable regulations.

The Inspector-General of Labour is to inform and advise on matters of legal and employment relations in regards to legislation on working and employment conditions, a system of protection of employment and unemployment of workers and payment of contributions of social security, as well as propose the necessary measures to overcome the gaps in labor legislation (The Decree No. 9/95 of 21 April 1995, Decree on the Regulation of the General Labour Inspectorate). Enforcement of occupational hygiene, safety, and health standards is the responsibility of the Inspector General of Labour through inspection staff of the Labour Directorate (art. 3 and art. 25). The inspection staff is to carry out any examinations, inspections, investigations, inquiries, and other necessary steps to ensure that labor standards are complied with.

Applicable legislation
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1.12 Legal employment
Last updated on 2021-12-20 Risk that Employment regulations are not respected Specified RISK
Angola’s employment laws require employers to comply with the national minimum wage established for their industrial sector. The laws include mandatory registration of all workers for social protection, deduction, and payment of social security contribution at a rate of 3% by the employee and 8% by the employer. However, based on expert consultation conducted in October 2019, during the development of this report, in some remote forest operatio... VIEW MORE

Angola’s employment laws require employers to comply with the national minimum wage established for their industrial sector. The laws include mandatory registration of all workers for social protection, deduction, and payment of social security contribution at a rate of 3% by the employee and 8% by the employer. However, based on expert consultation conducted in October 2019, during the development of this report, in some remote forest operations and timber processing facilities, these legal employment requirements are violated. Some workers engaged in forest operations and wood processing are not registered for social protection by their employers. Social security contribution deductions are not made or paid on their behalf by employers. Some forest operations and wood processing employers do not pay the monthly minimum wage for the agricultural sector. Therefore, the risk is considered specified. 

References
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The risk applies to the following source types
  • Annual Forest Harvesting License
  • Forest Concession Contract
Risk mitigation options
Document verificationField verification
1
Verify Proof that workers are registered with the National Social Security
2
Verify Employment contract
3
Verify Documents relating to payment of social contribution and payment prove meet minimum wage
4
Visit harvesting site
Through interview with forest workers and document review verify that workers have been given an employment contract, a social security, rest days and annual leave, are over the minimum legal age, and are being paid within the regulatory time frame, etc.
Description of legal requirements
Requirements related to Legal employment are followed
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The general labor law and Forest and Wildlife Basic law contain provisions on working conditions. In particular, the Forests and Wildlife Basic Law states that Angolan citizens must be preferred in the recruitment and training for forestry activities.

Provisions on working conditions are contained in the general labor law and forestry legislation. In particular, the Forests and Wildlife Basic Law states that Angolan citizens must be preferred in the recruitment and training for forestry activities.

Fundamental collective rights of workers have been recognized, and the general right to work. Forced labor is prohibited and underage work, discriminative behaviors, and degrading or inhuman treatments.

Angola has ratified 34 International Conventions related to Labour, namely C087 - Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87); C098 - Right to Organise and Collective Bargaining Convention, 1949 (No. 98); C029 - Forced Labour Convention, 1930 (No. 29); C105 - Abolition of Forced Labour Convention, 1957 (No. 105); C006 - Night Work of Young Persons (Industry) Convention, 1919 (No. 6); C081 - Labour Inspection Convention, 1947 (No. 81); C138 - Minimum Age Convention, 1973 (No. 138) Minimum age specified: 14 years; C182 - Worst Forms of Child Labour Convention, 1999 (No. 182); C026 - Minimum Wage-Fixing Machinery Convention, 1928 (No. 26); C012 - Workmen's Compensation (Agriculture) Convention, 1921 (No. 12); and C017 - Workmen's Compensation (Accidents) Convention, 1925 (No. 17). 

These contents have been included in the country’s legislation, starting from the highest law which the Constitution of the Republic of Angola of 21 January 2010. Article 60 (ban on torture and degrading treatment) of the constitution clearly states that no one shall be subjected to torture, forced labor, or cruel, degrading, or inhuman treatment. Article 50 (trade union freedoms) recognizes that all workers have the freedom to create trade union organisations to defend their collective and individual interests. In contrast, Article 21(h) states that one of the fundamental tasks of the state is to promote equal rights and opportunities between Angolans, regardless of origins, race, party affiliations, sex, color, age, or any other form of discrimination. Several labor laws have been enacted to give meaning to these constitutional provisions.

 

The General Labour Law (7/2015) of 15 June 2015 is the main statute governing all employment relationships in Angola. Article 13 (1 and 2) (capabilities) sets the minimum working age. People aged 14 and 18 require authorisation to work by a legal representative, employment center, or other appropriate institutions. The article also gives meaning to the conclusion of work contracts. Though from the General Labour Law, an employment agreement does not need to be made in writing, a written employment agreement is required in some cases, such as employment agreements entered into with foreign employees and traineeship agreements. 

Article 161 (fixed national minimum wage) confirms the periodic setting of a national minimum wage by the Executive Authority, which belongs to the President of the Republic in Angola. Article 5 (1 and 2) (prohibition of forced or compulsory labor) states that forced or compulsory work is prohibited. Article 7 (1) (related rights as the right to work) states the fundamental the right to work, the right to freely exercise a profession adds that the fundamental rights of workers shall be: (a) freedom of association and consequent right to organize, use and exercise of trade union activity b) the right to negotiate with the collective; c) the right to strike; (d) the right to meet and participate in the business activity of the enterprise. Article 4 (1) (Right to work) states the right to work and bans discrimination from indicating that every citizen has the right to freely choose work, with equal opportunity and without any discrimination based on race, gender, ethnic origin, marital status, social origin and status, religious reasons, political opinion, union affiliation, and language.

Decree no. 9/95 of 21 April 1995 is the General Labour Inspectorate Regulation. Article 4 (specific assignments) specifies the duties of the General Labour Inspectorate to include checks for the regular processing of social security discounts and the payment of contributions. Presidential Decree No. 136/19 of 5 May 2019 (unique social register) gives specific regulations on registration for social security. While decree No. 38/08 of 19 June 2008 establishes the legal regime for contractual ties and contribution for compulsory social protection. In Chapter III (contributory regime), Article 12 (1) of this law sets the contribution rate for compulsory social protection at 3% for the employee and 8% for the employer of the worker's total salary.

Legally required documents
  • Employment contract
  • Social security clearance letter
Applicable legislation
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1.13 Customary rights
Last updated on 2021-12-20 Risk related to Customary rights based on a precautionary approach Specified RISK
Angolan legislation has clear provisions to safeguard customary third-party rights from timber harvesting and other operational activities. However, there is no information on whether their provisions are well in place and adhered to. ... VIEW MORE

Angolan legislation has clear provisions to safeguard customary third-party rights from timber harvesting and other operational activities. However, there is no information on whether their provisions are well in place and adhered to. 

References
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The risk applies to the following source types
  • Annual Forest Harvesting License
  • Forest Concession Contract
Risk mitigation options
Document verificationStakeholder consultation
1
Verify a letter of prior consent from the community

Verify a letter of prior consent from the community must be provided where the forest harvesting application is made

2
Verify Prior agreement between the communities and an initiator of forest plantation
Verify Prior agreement between the communities and an initiator of forest plantation on communities’ lands where the plantation is not established and managed by the communities themselves
3
Consult Local families and rural communities
Description of legal requirements
Requirements related to Customary rights are followed
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The Forest and Wildlife Basic Law (Law no. 6/17) establish the norms that seek to guarantee the conservation, rational, and sustainable use of forests and wildlife in Angola, as well as the general basis for the exercise of activities related to forestry under Article 62 (b) (Types of Rights) which recognises the right to use forest land for community needs. Article 73 (about the position of rights) clarifies that the right of logging shall be exercised with respect for the rights of third parties regarding existing natural rights and easements within the concession area; in particular access by local communities to the natural resources not covered by the law of forest exploration. Article 14 (rights and duties for the pursuit of economic activity in the forestry and wildlife domains) item (c) requires that the pursuit of economic activities within the Forestry and the Wildlife sector respect the rights of third parties, in particular of rural communities and holders of other rights to natural resources existing within the area of forestry or wildlife harvesting, in particular as regards easements of water, of passage, and mining; (d) and to respect established sites of cultural, ecological, economic, religious or spiritual importance, over which the respective communities have rights. 

The Land Law (No. 9/04) Article 37 on Customary Rights recognizes the land rights of families and rural communities that have occupied these lands for several years.

The Presidential Decree No. 171/18 of 23 July 2018 (approving the forestry regulation), which regulates the forest and basic wildlife law under Article 32 (harmonization and overlap of rights), clarifies that (1) the allocation of the right to forestry in a given area does not prevent the exercise of equally valid rights, earlier or later of third parties over other natural features from the same area; (2) and that the right of forest harvesting shall be exercised concerning third-party rights regarding natural resources and existing services within the concession area especially, local communities access to natural resources which are not covered by the law on logging. Article 77 (procedures) (3a) requires that the preliminary assessment by the IDF of Annual Forest Harvesting License applications comprise the analysis of the legal situation of the intended area in consultation with the local department of the Institute of Geodesy and Cartography of Angola. They are responsible for the registration of land titles. This shall be done to guarantee that there will be no overlap of areas and collision with third-party rights. 

The Forest and Wildlife Basic Law, art 21(4), guarantees that the right to subsistence use and community needs of forests and wildlife resources is governed by communities' customary norms and practices. Art 21(5) clarifies that in the case of expropriation of forest land for public utility or another land-use form of customary useful land, the community has the right to get assigned other land with identical or similar vegetation cover than that of the expropriated. Article 31 (Obligations of the holder of logging rights) of the forest regulation requires that holders of logging rights (b) recognize the customary use of forest areas necessary for local harvesting under the Forest and Wildlife Basic Law terms. Article 26 recognizes the sales of firewood and non-wood products between neighbours for (a) traditional and customary use. Under article 116, an application for forest plantation development includes (i) a copy of the title of land or title of customary use land or evidence of the steps already taken with the competent services to obtain titles required. 

Legally required documents
  • 1/100,000 map of the concession area prepared by the local services of the Institute of Geodesy and Cartography of Angola (IGCA)
Applicable legislation
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1.14 Free prior and informed consent
Last updated on 2021-12-20 Risk related to Free prior and informed consent based on a precautionary approach Specified RISK
There are clear provisions for Free, Prior, and Informed consent related to approving and carrying out timber harvesting and other operational activities. However, no information is available on whether the provisions are well in place and adhered to.... VIEW MORE

There are clear provisions for Free, Prior, and Informed consent related to approving and carrying out timber harvesting and other operational activities. However, no information is available on whether the provisions are well in place and adhered to.

References
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The risk applies to the following source types
  • Annual Forest Harvesting License
  • Forest Concession Contract
Risk mitigation options
Document verificationStakeholder consultation
1
Verify A letter of prior consent from the community must be provided where the forest harvesting application is made
Verify A letter of prior consent from the community must be provided where the forest harvesting application is made
2
Verify Prior agreement between the communities and an initiator of forest plantation
Verify Prior agreement between the communities and an initiator of forest plantation on communities’ lands where the plantation is not established and managed by the communities themselves
3
Consult Local families and rural communities
Description of legal requirements
Requirements related to Free prior and informed consent are followed
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Forest lands are the state’s property, but community use for subsistence and other uses is recognized in the forest area. Commercial harvesting rights to third parties in community forests should be processed only by prior consent of the community present in the area where commercial forest harvesting is made. 

Presidential Decree No. 171/18 of 23 July 2018 requires;

a)   Commercial harvesting of forest products must not override the right of subsistence use and communities living in the area where such harvesting is authorized (art 22), and;

b)   that the granting of commercial harvesting rights to third parties in community forests should be processed only with the prior consent of the community (art 22). 

c)   An application for an Annual Forest Harvesting license must include a statement by traditional authorities and municipal administration where the applicant intends to carry out logging (art. 77). 

d)   Commercial, industrial and community plantations or energy sources located on community land must be developed by the communities themselves. If by the initiative of others, then the prior agreement with the communities is required (art, 113(1c)).

Legally required documents
  • A letter of prior consent from the community must be provided where the forest harvesting application is made
  • Prior agreement between the communities and an initiator of forest plantation on communities’ lands where the plantation is not established and managed by the communities themselves
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1.15 Indigenous/traditional peoples rights
Last updated on 2021-12-20 Not applicable Not Applicable
Although stakeholders have confirmed, there are indigenous people in Angola and that the country has ratified international conventions related to indigenous peoples, these laws have not been implemented in any of the national forest or related laws and are therefore not enforceable within the country. Therefore, the indicator is not applicable.... VIEW MORE

Although stakeholders have confirmed, there are indigenous people in Angola and that the country has ratified international conventions related to indigenous peoples, these laws have not been implemented in any of the national forest or related laws and are therefore not enforceable within the country. Therefore, the indicator is not applicable.

References
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Description of legal requirements
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Angola has been a signatory state to ILO Convention 107 on Indigenous and Tribal Populations since 1976. However, there is no reference to indigenous people in the Constitution of the Republic of Angola. There is no specific policy or provision in the constitution which can be referenced to indigenous people. Likewise, there are no specific references to indigenous peoples or minorities in Law No. 6/17 on Forest and Wildlife Basic Legislation, the Presidential Decree No. 171/18 approving the Forestry Regulation, or other domestic law. The International Work Group for Indigenous Affairs (IWGIA) has concluded that the Government of Angola does not recognise the concept of indigenous peoples as affirmed in international law, despite being a signatory to ILO Convention 107 on Indigenous and Tribal Populations since 1976, though with very limited reporting. The international organisation further states that Angola has not indicated any interest in considering the ratification of ILO Convention 169 on Indigenous and Tribal Peoples, which superseded C107 in 1989. 
Applicable legislation
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1.16 Classification of species, quantities, qualities
Last updated on 2021-12-20 False declarations are made regarding species and their volume on transport documents Specified RISK
According to the outcomes from expert consultation conducted in October 2019, the procedures requiring classifying timber according to species, wood density, and commercial class and minimum felling diameter classes were generally considered. The certificate of origin and transit permit from the relevant province and the related documentation also contain species classification as given in Annex 1 (for logs) and Annex VIII (for sawn wood) of Decr... VIEW MORE

According to the outcomes from expert consultation conducted in October 2019, the procedures requiring classifying timber according to species, wood density, and commercial class and minimum felling diameter classes were generally considered. The certificate of origin and transit permit from the relevant province and the related documentation also contain species classification as given in Annex 1 (for logs) and Annex VIII (for sawn wood) of Decree No. 171/18. However, there seems to be a risk that the requirement to classify timer accurately related to species and volumes is only on paper and not done accurately. While to the stakeholders' knowledge, there is no known evidence of inserting wrong information into the trade documents, the stakeholders are concerned that timber operators have better experience and competence in identifying timber species than the regulator. There is a recognition of the inadequate capacity of the Forestry Development Institute (IDF), and as a consequence, license holders could therefore be able to swap species and evade detection by IDF.  

During expert consultation, it was also noticed that enforcement measures done by the State include the use of weigh bridges at the checkpoints and the use of scanning machines at the ports of export to check wood quantities against declared quantities on the related documents. Variance in declaration timber volumes of more than 10% is an offense and attracts sanctions. However, stakeholders believe that corrupt officials and influence from “generals” have weakened enforcement efforts, and timber can be transported under falsified volumes and, therefore, high risk to timber legality.

A high level of corruption, weak regulatory quality, and the rule of law are in Angola are supported by the World Bank Governance Indicators (WB, 2021). 

References
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The risk applies to the following source types
  • Annual Forest Harvesting License
  • Forest Concession Contract
Risk mitigation options
Document verification
1
Verify Annual Forest Harvesting License
2
Verify Site logbooks
3
Verify Document for transportation of logs and processed wood (samples)
Description of legal requirements
Requirements related to Classification of species, quantities, qualities are followed
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Article 39 (2) (Inventory and Classification of Species and their Habitats) of Law no. 6/17 Forest and Wildlife Basic Law requires the state to ensure the implementation of research projects aimed at the identification and classification of wild flora and fauna species, as well as their ecosystems.

Within the Presidential Decree No. 171/18 of 23 July 2018 (approving the forestry regulation), which regulates the forest and wildlife basic law, Article 38 (1) (classification of wood producing species) provides clear criteria for the classification of timber species. These include commercial value, scientific value, rarity, utility and strength, wood density group, and a class of technological quality. A detailed list is given in Annex 1 of the regulation that all timber classification in Angola must follow. 

Decree No. 171/18, art 40 (classification of log and sawn wood), classifies;

1)   Round log as wood resulting directly from the felled tree stem, is cylindrical or conical in shape, slightly oval or tortuous, of a length of 6.00 meters or more (for dense rainforest), 2.80 meters (for open forest). Minimum felling diameter required by law differs between species, and;

2)   Sawn wood as the direct result of the splitting of the logs into pieces cut longitudinally by saw, regardless of its section dimensions rectangular or square, and as: (a) square block or fillet; b) board; c) beam; d) vigota; e) barrote; f) clapboard; (i) other commercially accepted forms. The detailed dimensions of these defined sawn wood are given in the Annex VIII of the regulation.

Legally required documents
Applicable legislation
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1.17 Trade and transport
Last updated on 2021-12-20 Risk related to Trade and Transport based on a precautionary approach Specified RISK
No information has been identified to describe the trade and transport risks. It is unclear if there is a risk of lack or misuse of trade and transport documentation. Therefore, based on a precautionary approach, the risk is concluded as specified risk.... VIEW MORE

No information has been identified to describe the trade and transport risks. It is unclear if there is a risk of lack or misuse of trade and transport documentation. Therefore, based on a precautionary approach, the risk is concluded as specified risk.

References
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The risk applies to the following source types
  • Annual Forest Harvesting License
  • Forest Concession Contract
Risk mitigation options
No mitigation options defined
1
We have not identified mitigation measures for the risks identified
Description of legal requirements
Requirements related to Trade and transport are followed
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There are provisions in place for registering and issuing a certificate to cover forest products harvested under a license but which could not be transported out of the forest during the validity period of the license (Forests and basic wildlife law, art 86). Inspection officers have the power to inspect any suspect vehicle, vessel, or aircraft used in the transport of any forest products to check if these do not originate from a legal origin (art 152).

The forest actors required to display relevant documents covering their forest products whenever required by the forest inspectorate or by the tax and customs policy include (Forests and basic wildlife law, Article 148): 

a)   Transporters of forest products; the certificate of origin and a transit guide/permit are required for transit checks.

b)   The sellers; For products sold by an authorized entity, the sales receipt, the copies of the certificate of origin, and the transit guide. 

c)   The buyer; the transit certificate and transit permit/certificate.

d)   Processing units for products being processed or deposited in the yards of the processing units. 

For a consignment moving within the same locality (intra-provincial trade) from one operator to the other for sale, processing, or using the following documents are required: a consignment note or equivalent document accompanied by copies of the certificate of origin and waybill are required. 

The inspectorate office can retain these documents until full clarification is reached whenever illegality is suspected. 

Decree No. 171/18 Article 150 (transport of logs and sawn wood) of the Forests and basic wildlife law provides that 1) the inter-provincial transport of the timber in log form is prohibited 2) intra-provincial transport of Round wood in containers and tipper trucks are also prohibited. Inter-provincial transport of Round wood is to be carried out on vehicles with a platform box with side braces or stanchions following the models set out in Annex VII or on lorries adapted for transporting timber round form as provided in the regulation.

Article 151 (forest product warehouses) make provision for forest product warehouses located in nearby zones of production and circulation of forest products with infrastructures and services intended for the reception of forest products, in particular, timber from logging areas and semi-processed units for checks and internal and external marketing by the various forest operators. The article clarifies that no forest products intended for sale or marketing can be displayed without first passing through one of the warehouses existing in the country for checks by the Forestry Development Institute (IDF), the Tax Police, the General Tax Administration, Commerce, and Commercial Banking.

Article 144 (general restrictions) of the regulation gives the sources of timber which can be transported, stored, transferred, marketed, or displayed for sale as forest products from (a) Annual Forest Exploitation Licenses granted following terms of the forest regulation, (b) forestry concessions granted following the forest regulation, (c) established commercial and industrial plantations following the terms of the forest regulation, (d) community forest plantations established by the terms of the forest regulation, (e) from sales made by the state as a result of seizures of infringement of the provisions of this Regulation. The article further states that the possession, import, export, reproduction, and /or transit in the national territory of genetically modified forested species and their parts or products is not allowed except under the authorization of the IDF.

Section I0 Internal Transit, Article 145 (Required Certificate of Origin and Transit Guide) of the forest regulation states that 1) no forest products from farms in natural forest or plantations can be transported within the national territory, by any land or waterway, without their certificates of origin and transit guide based on the operating license or in the forest concession contract. The certificate of origin must be issued and signed by the Head of the IDF Provincial Department, where Annual Forest Harvesting is carried out. Transit permit shall be completed and signed by the holders of forest concession contracts, annual logging, and plantation operations and checked by: a) resident inspector, in the case of forest concession contracts and harvesting of forest plantations; b) head of the Provincial Department of the IDF of the area where the exploration takes place and in his absence, by the Chief of Technical and Supervisory Section, in the case of Annual Forest Exploration Licenses. 

Forest products coming from outside Angola and passing through the national territory to other countries are to have a certificate of origin and a phytosanitary certificate issued by the competent authorities of the country of origin.

Article 168 (infringements and sanctions) details the sanction related to the infringements.

Legally required documents
Applicable legislation
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1.18 Offshore trading and transfer pricing
Last updated on 2021-12-20 Risk related to Offshore trading and transfer pricing based on a precautionary approach Specified RISK
There is no information available on the risks related to Offshore trading and transfer pricing. Therefore, based on a precautionary approach, this risk is concluded as specified risk.... VIEW MORE

There is no information available on the risks related to Offshore trading and transfer pricing. Therefore, based on a precautionary approach, this risk is concluded as specified risk.

References
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The risk applies to the following source types
  • Annual Forest Harvesting License
  • Forest Concession Contract
Risk mitigation options
No mitigation options defined
1
We have not identified mitigation measures for the risks identified
Description of legal requirements
Requirements related to Land tenure and management rights are followed
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The Industrial Tax Code (Law 19/14 of October 22, 2014), Article 50º of the application for tax years from 2014 onwards, and as amendments on the Industrial Tax Code – Law no. 4/19, of 18 April call for the obligation of documentation applicable to tax years and transactions beginning or occurring on or after 1 January 2013 . Taxpayers will have to justify arm's length pricing in the cases of commercial transactions of the taxpayer with other “special relations” entities, regardless of whether these transactions are subject to industrial tax. This concerns domestic and cross-border transactions. The rules generally cover commercial transactions, including any transaction of goods, rights, or services, including financial transactions.

Decree no. 147/13 states that an entity-specific transfer pricing file would have to be prepared and submitted to the tax administration within six months of the end of the tax year. This transfer-pricing file must be prepared annually and must detail the relationships and prices established by the large taxpayers with the companies and entities with which they have “special relations.” The entity-specific transfer pricing file must contain:

•   describes the taxpayer and the group structure

•   describes the industry/sector

•   identifies the related entities with which the taxpayer has carried out transactions and characterise the special relationship existing between them

•   describe and quantify the related transactions by nature of the transaction and by counterparties

•   analyse the split of functions and risks of each transaction between the involved parties

•   select the transfer pricing method to validate the terms and conditions applied, and

•   present the transfer pricing economic analyses to validate each transaction. 

Article 152 (1d) (export of forest products) of the Presidential Decree No. 171/18 of 23 July 2018 (approving the forestry regulation) make provisions for the application to the Forestry Development Institute (IDF) Director-General, requesting the phytosanitary and exports of forest license to include sales invoice to the buyer based on reference minimums prices. The forest regulation defines minimum reference prices as the reference price for exported timber calculated based on the average prices practiced in the main international markets. The export will not be allowed for products below the minimum reference price.

Legally required documents
Applicable legislation
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1.19 Custom regulations
Last updated on 2021-12-20 Risk related to Custom Regulations based on a precautionary approach Specified RISK
The timber export has to comply with the customs, commerce, tax, and forestry requirements. Export of timber between these ministries is coordinated and linked by an online system. For any particular export, the applicable tax, foreign exchange (forex), commerce, and forestry requirements must be met and approved, and validated by the Directorate of External Trade before it gives final authorisation for export. The system is to be checked by the ... VIEW MORE

The timber export has to comply with the customs, commerce, tax, and forestry requirements. Export of timber between these ministries is coordinated and linked by an online system. For any particular export, the applicable tax, foreign exchange (forex), commerce, and forestry requirements must be met and approved, and validated by the Directorate of External Trade before it gives final authorisation for export. The system is to be checked by the National Security Intelligence, which carries out regulation audits of exports. 

No evidence was identified on the effectiveness of the online system and the relevant authorities and the requirements described on custom requirements. Therefore, based on a precautionary approach, the risk is concluded as specified risk.

References
VIEW LESS
The risk applies to the following source types
  • Annual Forest Harvesting License
  • Forest Concession Contract
Risk mitigation options
No mitigation options defined
1
We have not identified mitigation measures for the risks identified
Description of legal requirements
Requirements related to Custom regulations are followed
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The Angolan Customs Code, approved by Decree-Law No. 5/06 of 4 October, sets the customs requirements for general imports and exports, including timber, complemented by sector-specific requirements. For all exports and imports, the law requires original Air Waybill (AWB)/ Bill of Lading (BL), original commercial invoice (listing HTS codes for each item), Packing list, Angolan Loading Certificate issued in the country of shipment, Import License, Phytosanitary Certificate issued by the relevant ministry and in the case of timber by the Ministry of Agriculture and Forestry.

Article 87(2) of the Forests and Wildlife Basic Law (Law no. 6/17 of 24 January 2017) clearly states that the export of forest products is only allowed upon presentation of the Annual Forest Harvesting License, Certificate of Origin, Transit permit/Certificate, and Phytosanitary Certificate. Item 3 of the same article requires import of forest products to obtain authorization from the Ministry of Agriculture and Forestry upon presentation of proforma invoices covering the product, Phytosanitary Certificate, and model certificate of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) issued at the source of import.

Decree No. 171/18 Article 152 (exporting forest products) of the regulation outlines the required process for exporting forest products. The process begins with an application by the harvesting company/expert to the Forestry Development Institute (IDF) general director, requesting Phytosanitary Certificate, and Export certificate for forest products as well as the foreign exchange declaration form in the specified format given in the regulation, including the following documents: 

a)   Copy of the Certificate of Origin of the product to be exported, accompanied by Transit Permit/Certificate and in case of harvesting rights holders; 

b)   Commercial Invoice issued by a company or operator recognized by the IDF in the case of wood purchased from third parties; 

c)   Specification list containing dimensions and volume of wood pieces; 

d)   Commercial invoice to a buyer based on minimum price reference 

e)   Declaration of phytosanitary treatment of wood issued by a company accredited by the IDF; 

f)   Declaration of the non-tax debtor; 

g)   Declaration of registration at exhibitions and imports 

h)   Bank Payment for receipt corresponds to the invoice issued by a bank outside the country in favor of a bank of exporter account domiciled in Angola. 

The export of endemic or classified forest species as vulnerable requires permission from the IDF.

Article 144 (general restrictions) of the regulation gives the sources of timber which can be transported, stored, transferred, marketed, or displayed for sale as forest products from (a) annual operating licenses granted following terms of the forest regulation, b) forestry concessions granted following the forest regulation and c) established commercial and industrial plantations following the terms of the forest regulation, (d) community forest plantations established by the terms of the forest regulation, e) from sales made by the state as a result of seizures of infringement of the provisions of this regulation. The article further states that the possession, importation, exportation, reproduction, and/or transit in the national territory of genetically forested species and their parts or products is not allowed except under the authorization of the IDF. Article 144 (general restrictions) prohibits the possession, import, export, reproduction, and/or transit in the national territory of genetically modified forested species as well as their parts or products, except under the authorization of the IDF.

Registration of importers/exporters

The Presidential Decree 74/17, 2017, art 4 sets out the registration for the application for Exporters and Importers Registration (REI). Importers and exporters register their REI to the Ministry of Commerce (i.e., REI Registration). REI registration requires a) an ID, b) business registration, and c) proof of payment for REI application, The NIF (Tax ID). 

When issued, export registration certification is to be renewed every year and therefore should always be valid before an entity can export. Freight forwarders complete export documentation, and when approved (validation at the external trade department), it then goes to the customs division of the General Tax Administration and National Bank (for the payment of the letters of credit). Validation includes checks to ensure the exported forest products meet the reference pricing for timber against transfer pricing. The criminal investigation agency also does the checks at the Ministry of trade. Angolan import duty rates were adjusted in August 2018 by Presidential Decree no. 03/18 May 2018. The Presidential Legislative Decree No. 3/18 of May 09 approves the customs tariff of Import and Export Rights. The Rectification no. 17-18 Customs Tariff gives the details of custom tariff. 

Legally required documents
  • Acquisition invoice and producer declaration to confirm that the product is made in Angola (applicable only for exporters companies)
  • Air Waybill (AWB)/ Bill of Lading (BL)
  • Application form for the issue of Loading Certificates
  • Bank payment receipts
  • Business registration
  • Certificate of Origin
  • CITES Certificate/Permit
  • Commercial Invoice
  • Consignment note
  • Declaration of non-tax debtor (tax clearance)
  • Declaration of phytosanitary treatment of wood (issued by a company accredited by IDF)
  • Declaration of registration at exhibitions and imports (products for the exhibition of imported products)
  • Export and Import License
  • Export Certificate for Forest Products
  • Export and Import Registration (REI)
  • Foreign exchange declaration form (for exported products)
  • Harvesting permit
  • Loading Certificate issued in the country of shipment
  • National identity
  • NIF (Tax ID)
  • Packing list
  • Permission from IDF for the export of endemic or species classified as vulnerable
  • Phytosanitary Certificate
  • Proof of payment for REI application
  • Proof of payment of applicable fees and tax using the registered tax identification
  • Specification list containing dimensions and volume of wood pieces
  • Transit permit
Applicable legislation
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1.20 CITES
Last updated on 2021-12-20 Risk related to CITES based on a precautionary approach Specified RISK
Enforcement of CITES (the Convention of the International Trade in Endangered Species) requirements in Angola includes education on importers and exporters of the application process. There is no information about the effective and legal implementation of CITES requirements in Angola; however, due to the low score of CPI (27/100 in 2020), there can be risks of corrupted practices in issuing CITES permits. Therefore, as a precautionary approach, ... VIEW MORE

Enforcement of CITES (the Convention of the International Trade in Endangered Species) requirements in Angola includes education on importers and exporters of the application process. There is no information about the effective and legal implementation of CITES requirements in Angola; however, due to the low score of CPI (27/100 in 2020), there can be risks of corrupted practices in issuing CITES permits. Therefore, as a precautionary approach, the risk is concluded as specified risk.

References
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The risk applies to the following source types
  • Annual Forest Harvesting License
  • Forest Concession Contract
Risk mitigation options
No mitigation options defined
1
We have not identified mitigation measures for the risks identified
Description of legal requirements
Requirements related to CITES are followed
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Angola was accessioned to the CITES on 02/10/2013 and came into force on 31/12/2013. It has not yet been ratified but has been domesticated into legislation. The Law no. 6/17 of 24 January 2017. Forests and Wildlife basic law Article 87 (exports and imports of forest products) requires import and export of CITES species to get prior approval and presentation of CITES certificate during the approval process.
Presidential Decree No. 171/18 of 23 July 2018 (approving the forestry regulation) regulates the forest and wildlife basic law. Article 155 (supervision and control of imports and exports) gives the authority to the IDF and DNF of the Ministerial of Agriculture and Forestry, and the Ministry of Environment respectively to ensure compliance with the provisions of Articles 153 (importation of forest products), 154 (export and import of CITES species) and 155 of this regulation. The supervision and control of import and export of forest products covered by CITES species are given to the Ministerial Department at the Ministry of Environment.
Article 154 (export and import of CITES species). The export and import of species listed in the (CITES) require authorization from the national administrative authority. CITES importers and exporters are required to present the following documents: (a) in the case of export, import licenses issued by the authorities of the destination country, supported by phytosanitary certificates and CITES export licenses concerning the species listed in Appendices I, II, and III of that convention; and (b) in the case of imports, phytosanitary certificates and export CITES issued by the country of origin concerning species in Appendix I, II and III of Convention, seconded by import license issued by the National Administrative Authority of the Angola Convention.
Executive Decree No. 469/15 prohibits hunting activity and logging within the country of all protected wild fauna and flora species. These activities are cited as endangering biodiversity, violating the intention of the CITES treaty. Monitoring and controls responsibility is given to the Ministry of Environment for supervision and determination of penalties. Executive Decree no. 433/16 validates the CITES permit. 
The CITES permit application process is centralized with other export application processes but made to the National Directorate of Biodiversity of the Ministry of Environment. Inspection is carried out on the products after receipt of the application, followed by an interview with the applicant to seek clarification of any issues that might not be clear to the issuing authorities.
 
Legally required documents
Applicable legislation
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