Save your supply chain for quick access to risk data in the future. You will also receive notifications about changes in the risk profile of countries in your supply chain. You will need to create a supply chain for each country of origin that you source from.
It is important to note that the information on the actual occupation of land and the delineation of the different areas of national territory is still insufficient and is not centralised, as demonstrated by the creation of the CNAT in 2017, whose work is still on-going. There is no clear, detailed zoning plan, notably due to outdated information, poor imagery and limited involvement of the local populations and communities in the zone classification procedures. This impacts all the risks relating to land rights and management:
The space and resources in the Gabonese Republic are governed by the regulatory texts on land matters (notably Law 1963 on the state-owned domain and the 2012 ordinance on the land ownership regime) and forest matters (notably the 2001 Forest Code).
In 2017, a national land allocation commission (CNAT) was established with the aim of collecting and centralising all information on the allocation of land within national territory, and producing a national land allocation plan (work was still on-going when this document was drawn up).
The regulations stipulate that some land is registered according to the land registration procedure by private individual land owners (Ordinance n°5/2012). All other land forms the national domain, which belongs to the state. This domain is divided into (1) a public domain for land left available to the public or assigned to a public service and (2) a private domain for the remaining land.
According to the Forest Code, all forest land falls under the national domain and constitutes the exclusive property of the state (Art. 13 of Law n°016/01). The national forest domain is divided into (1) the permanent forest domain and (2) the rural forest domain (Art. 5 of Law n°016/01).
The permanent forest domain is in turn divided into (1) classified state forests and (2) registered productive forests.
• The first sub-division comprises forest land classified in state-owned public domain that has been classified for preservation reasons (e.g. protection forests, botanical gardens, protected areas, etc.) (Art. 7 and 8 of Law n°016/01). Forest land is classified (or declassified) by way of decree following a procedure that involves acknowledging the area, having it deliberated by a classification commission, involving local communities, and having the classification (or declassification) approved by the council of ministers (Art. 9 of Law n°016.01 and Decree n°1032/PE/MEFEPEPN). Customary user rights must be provided for and defined in the classification text (Art. 257 of Law n°016/01). Forest resources cannot be harvested in classified state-owned forests (Art. 93 to 97 of Law n°016/01).
• In the second sub-division, the forests are part of the state-owned private domain. They are qualified as registered state-owned productive forests. These forests may be allocated to private individuals by way of logging titles (Art. 96 and 97 of Law n°016/01). Management rights over forest land are acquired by way of an adjudication process governed by the regulations (Order n°00640-08/MEFEPA) (see category 1.2 below). Productive forests that have not been allocated form the country’s productive forest reserves. The customary user rights of local communities are provided for in the forest management plan (Art. 257 of Law n°016/01). Furthermore, the law provides for a regulatory text to establish the conditions for constituting productive forests (Art. 6 of Law n°016/01), however this regulatory text does not exist (Brainforest, 2013).
The rural forest domain comprises land and forest that can only be used by rural communities (Art. 12 of Law n°016/2001). The right to use the forest resources in these areas is conferred to the rural communities by the Forest Code in the rural forest domain. Outside of these user rights, nobody can exploit the natural products in the rural forest domain without prior authorisation (Art. 14. of Law n°016/01). Logging titles may be issued in the rural forest domain. The state may also allocate a forest in the rural domain to a rural community in the form of a community forest (Art. 156 to 161 of Law n°016/01). Rural communities have a right of reservation which excludes the area concerned from any other form of title allocation (Art. 5 of order n°106/MFEPRN).
Management rights over forest areas can also be acquired via a permit transfer procedure or by a land tenancy agreement, subject to this being registered with the forestry administration.
Furthermore, any natural or legal person wishing to engage in logging must obtain a professional accreditation, under the conditions established by the applicable regulations (Article 102 of Law n°016/2001 and Decree n°0278-PR-MEF).
Finally, it is useful to note that the Forest Code does not explicitly provide for a legal regime applicable to the complete deforestation of forest areas, for example for the purpose of developing farming projects. Any state-owned forest must be subject to a management plan, which must provide for the protection of the related resources and ecosystems, and is therefore incompatible with deforestation practices (Art. 3 and 20 of Law n°016/01). However, deforestation is not actually explicitly prohibited by the applicable regulations (ClientEarth, 2016).
Failure to respect the regulatory requirements relating to the stages of the allocation process and the implementation of forestry concessions (CPAET/CFAD et PFA) (Expert consultation, 2019). This notably includes the allocation of concessions:
o in the absence of a tender process;
o based on incomplete technical and financial files (missing documents);
o in the absence of a professional forestry accreditation. VIEW LESS
CPAET/CFAD
Forestry concessions under sustainable management are surface area permits allocated in state-owned productive forests. Their surface area is between 50,000 and 200,000 hectares.
The procedure for allocating a CFAD starts with a provisional management, exploitation and processing agreement (CPAET) being allocated through a tender procedure (Articles 106a, 106b and 108 of Law n°016/2001 modified by Ordinance n°011/PR/2008) (see below for the tender procedure). The CPAET is concluded between the applicant and the Administration of Water and Forests. It is assigned for a maximum of three years. It does not constitute a logging title, but enables the concessionaire to carry out the operations necessary to be able to draw up the management plan and industrialisation plan within the area requested.
For the three years during which the CPAET is valid, the owner is authorised to carry out logging activities. The Administration of Water and Forests may suspend the logging operations if the provisions stipulated by the CPAET are not respected.
At the end of the three years, the CPAET holder files a request for a CFAD accompanied by the associated management plan and industrialisation plan. If the request is accepted, the CFAD is allocated by way of a CFAD approval and a CFAD allocation decree signed by the prime minister (Articles 108 and 110 of Law n°016/2001, modified by Ordinance n°011/PR/2008).
N.b.: It seems that in practice, the CFAD allocation decrees are not signed by the government. In practice, the concessionaires therefore do not have this document.
PFA
Associated forestry permits are reserved for Gabonese nationals. Their maximum surface area is 50,000 hectares and they are allocated within productive state-owned forests (Art. 96 of Law n°016/2001). They can either by managed by the permit holder, or they can be part of a larger CFAD (and the management is therefore taken care of by the CFAD holder).
PFAs are allocated by way of a tender procedure (Art. 102b of Law n°016/2001 modified by Ordinance n°011/PR/2008) (see below for the tender procedure). They are issued by an allocation order issued by the Ministry of Water and Forests.
Use of the PFA is contingent upon the Head of the Provincial Inspectorate of Forestry issuing their authorisation (Art. 113 of Law n°016/2001).
Tender procedure (CPAET/CFAD and PFA)
Forestry concessions under sustainable management (CPAET/CFAD) and associated forestry permits (PFA) are allocated by way of a tender procedure, the modalities of which are established by the applicable regulations (Art. 102b of Law n°016/2001 modified by Ordinance n°011/PR/2008 and Order n°00640/08/MEFEPA).
Any natural or legal person legally established on national territory with a professional accreditation may submit a bid. The public is informed of the tender procedure by the Ministry of Forests at least 15 days in advance, by way of a notice in the press and posters in the offices of the provincial inspectorates, departmental authorities and district authorities. This notice notably indicates the number of lots, their location and the procedure for submitting and withdrawing bids.
Upon publication of the tender notice announcing the tender process, a set of contractual specifications stating the specific obligations of each of the lots is made available to the potential bidders.
The committee for the industrialisation of the timber sector selects the winning bidders (checks the legality of the offers, scores the offers, makes the final ranking and draws up the report).
The bidders are selected in line with several criteria, including available logging equipment, financial capacities and performance guarantees, technical capacities, professional experience and whether they meet the commitments and rules for operating in forest areas.
However, if no winning bid is selected, the CPAET/CFAD and PFA may be allocated on the basis of a private agreement (Art. 102c of Law n°016/2001 modified by Ordinance n°011/PR/2008).
Transferring permits (CFAD and PFA)
Concession rights can also be acquired via a permit transfer procedure, which applies to CFADs and PFAs, subject to approval from the Administration of Water and Forests (Article 150a of Law n°016/2001). Handovers, transmissions and transfers of associated forestry permits are only authorised between nationals (Article 150b (new) of Law n°016/2001).
Several CFADs or PFAs can also be grouped together to form one CFAD. The total surface area of any group of CFADs cannot exceed 600,000 hectares.
Community forests
Community forests are forests in the rural forest domain allocated by the state to a village community, based on a management agreement (Art. 2 of Order n°018-MEF-SG-DGF-DFC).
The regulations define what it means to be a village community (Art. 3 and 4 of Order n°018-MEF-SG-DGF-DFC). The village community must set up a committee and must also formalise a legal management entity (Art. 5 and 6 of Order n°018-MEF-SG-DGF-DFC).
There are several preliminary stages, including one or several awareness and information meetings, participatory mapping, a dialogue meeting and the submission of an allocation application.
If the application is approved, a provisional management agreement is signed. Once the simplified management programme has been drawn up and validated, the management agreement is signed between the Ministry of Water and Forests and the community concerned (Art. 7 to 18 of Order n°018-MEF-SG-DGF-DFC).
Forests subject to a reservation (right acknowledged and assigned by the forestry administration to a village community that wants to be involved in the creation of a community forest) are exempt from all other forms of logging title allocations (Article 5 of Order n°106/MFEPRN).
Land tenancy
A title holder may transfer the management of their concession to an accredited operator in the forestry profession. The interested parties sign a tenancy agreement to this effect, based on templates drawn up by the Administration of Water and Forests (Articles 150 to 150c (new) of Law n°016/2001).
The exploitation or use of community forests may also be transferred by way of a tenancy contract, based on a template provided for by the applicable regulations (Art. 2, 3 and Annex of Order n°000366/MEF/CAB-ME).
Corruption and/or influence peddling during the allocation of forest concessions (CPAET/CFAD and PFA) (Willy, 2012; Brainforest, 2013). Concessions are sometimes allocated to a legal or natural person closely related to the political decision-makers, but who do not have the physical capacities necessary to manage a concession. Once the title has been allocated, the logging activities are subcontracted. VIEW LESS
Some transactions between accredited operators are not carried out in strict compliance with the applicable regulations (Expert consultation, 2019). The following discrepancies have been identified:
All industrial forest concessions cover one or several “forest management units” (UFA) (Art. 3. of Decree n°689/PR/MEFEPEPN). For each UFA, a forest management plan must be drawn up (Art. 20 and 21 of Law n°016/2001). The forest management plan must be drawn up before the CFAD is allocated, during the maximum three-year period of the provisional management, exploitation and processing agreement (CPAET) concluded with the Administration of Water and Forests.
Where they are not executed by the concessionaire, the forest management plan and related work must be assigned either to a specialist firm accredited by the ministry of water and forests, or to the Administration of Water and Forests (Article 4 of Decree n°689/PR/MEFEPEPN).
Once the forest management plan has been approved by the authorities concerned, it binds the company for a period of no less than twenty years (normally 30 years).
During the forest management plan development period, logging is permitted by the concessionaire within the limits of provisional annual allowable cuts, subject to certain conditions.
Decree n°0689/PR/MEFEPEPN and the 2004 technical guide specify the stages involved in drawing up the forest management plan and the applicable framework. The forest management plan must be drawn up in line with the following stages:
• Forest map: An initial forest map presenting a description of the plant formations and topography is drawn up.
• Management inventory: The concessionaire must deliver their draft management inventory within six (6) months from the date on which the provisional agreement is signed. Failure to do so shall lead to the provisional agreement being rescinded. The draft must be validated by the forestry administration before the inventory works are initiated. The forest management inventory evaluates the timber resources available in the long term, how they are distributed within the space, and how they will change over time. It covers the entirety of the area to be exploited. All of the data collected over the course of the management inventory phase must be transmitted in digital format at least six (6) months before the expiry of the Provisional Agreement. The forestry administration must also approve the inventory results. Based on the results, some species may be banned from being harvested due to their low density, or may be assigned a Minimum Cutting Diameter (DMA) that is higher than the national regulation.
• Socio-economic diagnosis: This diagnosis provides an evaluation of the local populations living within or just outside the concession, and of the workers and residents of the logging camps. It provides an overview of aspects such as living conditions, health and safety, food and living supplies, pressure on the forest ecosystems, safety at work, and more generally, social expectations. It involves consulting the local populations and asking them to identify the areas they traditionally use within the concession, as well as the natural resources that contribute to improving their quality of life. The socio-economic study report must be transmitted to the forestry administration before the end of the second year following the signature of the provisional agreement.
• Biodiversity diagnosis: This diagnosis provides an inventory of the animal populations and ecosystems found within the concession. Any threats to the wildlife are also identified during this phase. The wildlife study report must be transmitted to the forestry administration before the end of the second year following the signature of the provisional agreement.
• Forest management plan and forest zoning: Following these preparatory stages, the forest management plan can be drawn up. The concession is split into different zones called “series”, responding to specific objectives (for example, a conservation series, a farming series, a lumber production series, etc.). These series are themselves split into Forest Management Units (UFG), each corresponding to around 5 years of forest management activities. Their rotation schedule is determined so as to maintain fairly constant annual production in terms of quantity and species.
• Adoption of the forest management plan: The approval of the forest management plan is pronounced by an order issued by the ministry for water and forests, following consultation of the committee for the industrialisation of the wood sector (Article 47 of Decree n° 689/PR/MEFEPEPN). It can be revised every five years. All requests to have the forest management plan revised must state the restrictions or new information behind the request, the aspects of the forest management plan they wish to be revised, and the new proposed groundings along with their justifications. It must be accompanied by a draft amendment to the forest management plan and, if applicable, to the contractual specifications (Article 48 of Decree n° 689/PR/MEFEPEPN of 24 August 2004).
After the CFAD has been allocated based on the validated forest management plan, its implementation can begin. The plan is broken down into detailed forest management documents for each five-year (forest management unit) and annual (annual allowable cut) logging area.
As such, the forest management units (UFG) are each covered by a management programme (Art. 28 and 30 of Law n°016/2001), which notably includes the characteristics of the UFG, the characteristics of the resource and its target species, and the delineation of the annual allowable cuts (AAC).
An annual operations plan (PAO) is drawn up each year for each annual allowable cut (AAC) opened (Art. 45 of Law n°016/2001). This is drawn up once a logging inventory has been produced for the AAC (a more detailed inventory than the forest management inventory). The PAO notably states the results of the logging inventory, the location of the resources, an outline of the skid trails and logyards, and a schedule of the logging operations, including reforestation, artificial regeneration, the creation of infrastructure or other inventories, etc. It must be drawn up in line with the framework proposed in the technical guide for annual operations plans. All resources that are required to verify the inventory works must be attached to the PAO (declaration of delineation of the area, declaration of conformity of the inventory works, etc.).
If the PFA is integrated within a CFAD, the forest management is carried out by the CFAD concessionaire, in accordance with the information below.
If the PFA is not integrated within a CFAD, the owner of the PFA is responsible for the forest management (Art. 96 and 99 of Law n°016/2001), still in line with the same procedure for drawing up a forest management plan, validating it and subsequently implementing it (application of Decree n° 689/PR/MEFEPEPN).
Community forests are all managed under a simplified regime. Once the application to create a community forest has been accepted, the simplified sustainable management programme is drawn up, either by and on the initiative of the Administration of Water and Forests, or by the community with assistance from a water and forests official (Art. 6. Decree n°001028/PR/MEFEPEPN).
The inventories and map are required as preparatory documents. If these are produced by the community, they must be validated by the Administration of Water and Forests. If they are produced by the Administration of Water and Forests, this work is free (Art. 7 of Decree n°001028/PR/MEFEPEPN).
The finalised simplified management programme must notably indicate the priority uses and an action plan (Art. 8 of Decree n°001028/PR/MEFEPEPN).
After this, an inventory is carried out of the five-year blocks defined by the simplified management programme, the report of which is validated by the Administration of Water and Forests, which shall then issue the annual logging quotas (Art. 6 of Order n°000365/MEF/CAB/ME).
PGG, ACSBL and ASC
The surface area covered by permits by private agreement (PGG), special logging authorisations (ASC) and authorisations for sawing wood lengthwise (ACSBL) is not subject to a forest management plan. Only the trees to be harvested are identified and subject to a prior declaration.
• PGG: During the PGG allocation request procedure, officials from the Administration of Water and Forests carry out botanical checks, mark the trees identified by the applicant with a hammer and produce a tree marking report, as well as a map of where the trees are located (Art. 14 of Order n°136/MEF). Logging is also conducted in line with an operations plan validated by the Administration of Water and Forests (Order n°136/MEF).
• ASC and ACSBL: For ASCs (5 trees maximum) and ACSBLs (15 trees maximum), the Administration of Water and Forests carries out a prior identification of the trees requested, marks them, and produces a related report (Art. 7 of Order n°000669/MEF and Art. 3, 6 and 7 of Order n°104/MFEPRN/SG/DGF/DEPRC/SR).
CPAET
Logging can take place during the 3 years of the provisional management, exploitation and processing agreement (CPAET) preceding the allocation of a CFAD. This takes place within the limits of provisional annual allowable cuts, which are subject to the same regulatory regime as all other allowable cuts: they must be mapped out and delineated on the ground (Article 28 of Decree n°689/PR/MEFEPEPN) and must be subjected to a logging inventory and an annual operations plan.
The surface area of these annual allowable cuts cannot exceed one thirtieth of the concession area (Article 28 of Decree n°689/PR/MEFEPEPN).
CFAD and PFA
Based on the logging inventory conducted within the annual allowable cut (AAC), the Administration of Water and Forests issues authorisation for logging operations in the AAC and approves the annual operations plan (Art. 121 of Law n°016/2001).
CFADs and PFAs are subject to clauses that are specific to each logging title and documented in the contractual specifications, a template for which is laid down by an order (Art. 115 of Law n°016/2001). Such clauses relate to the provisions that enable the communities to take advantage of the benefits arising from the logging operations carried out by the concessionaire (Order n°105/MFEPRN/SG/DGF/DDF/SACF) (also see section 1.13).
The annual allowable cuts are delineated on the ground before the logging operations begin by way of an open, regularly maintained path (Art. 117 to 120 of Law n°016/2001).
Logging in community forests is conducted either by the community itself or through a land tenancy agreement (Art. 160 of Law n°016/2001 and Art. 2 of Order n°000365/MEF/CAB/ME). In both cases, the Administration of Water and Forests issues a logging permit (AME) prior to the start of the logging operations, based on the delineation of the five-year block, the five-year block inventory report and the logging map produced. An annual logging quota is attached to the AME (Art. 6, 7 and 8 of Order n°000365/MEF/CAB/ME).
Logging in community forests under a land tenancy agreement is subject to the signature of a land tenancy contract between the community with rights to the forest and a third-party lessee or farmer. If applicable, this contract is then registered with the district court and the forestry administration (Article 4 of Order n°000365/MEF/CAB/ME).
Other logging titles
Other permits are designed to satisfy the needs of the local populations. The Forest Code provides for permits by private agreement (PGG), special logging authorisations (ASC) and logging authorisations for pitsawing (ACSBL) (which replace the household permits, pit sawing authorisations and special permits provided for in the former Forest Code).
• Permits by private agreement (PGG) (Order n°136/MEF): for a maximum volume of 50 trees in forests in the rural domain. They are issued to natural persons of Gabonese nationality (one single PGG per year per person). They are valid for 12 months. They are allocated by the Ministry of Water and Forests following consultation of the provincial PGG awarding committee. All PGG applications are indexed in an ad hoc register kept by the provincial department of water and forests. Applications are submitted in January and February of each year and successful applications are published in March. The trees are hammer-marked before the permit is definitively allocated. PGG beneficiaries must be formed of groups of at least 5 members, backed up by the relevant minutes of settlement. Logging must comply with the operations plan validated by the administration. PGGs are currently no longer being allocated by the forestry administration (CENAREST, 2019).
• Special logging authorisations (ASC) (Order n°000669/MEF): these authorisations were created by an order in 2010, in application of the article in the Forest Code on customary user rights (Art. 12, 14 and 252 of Law n°016/2001). They are for a maximum of five trees, equivalent to fifteen cubic metres, including all species, previously identified by the applicant and substantiated by the local forestry department. ASCs are only issued within the rural forest domain to natural persons of Gabonese nationality, with the aim of satisfying the needs of local village communities. They are valid for two months and cannot be extended. One single ASC may be allocated per person per year. ASCs are allocated on a personal, non-transferable basis.
• Logging authorisations for pitsawing (ACBSL) (Order n°104/MFEPRN/SG/DGF/DEPRC/SR): these authorisations were created by order in 2014, in application of the article in the Forest Code on customary user rights (Art. 12 and 14 of Law n°016/2001). They are for a maximum volume of 15 trees in the state-owned rural domain, for a duration of 2 months. They are non-transferable. Each authorisation is indexed in a record held by the provincial department of water and forests.
In practice, there is some confusion between the titles provided for by the former Forest Code and those provided for by the current Forest Code (for example between the former ASLs and the current ACBSLs), and between the different titles that exist currently (notably PGGs and community forests) (CENAREST, 2019).
There is a risk that the surface area tax is not paid or is paid late (Expert consultation, 2019); This may lead to a significant backlog of outstanding payments. VIEW LESS
The Gabon Forest Code stipulates the following logging taxes (Article 244 of Law n°016/2001):
• felling tax;
• surface area tax;
• renewal tax;
• transfer tax;
• tax on processing with a chainsaw;
• exit taxes;
• farm tax;
• specific plantation bidding fee;
• forest charges.
The modalities (rate and base) are determined by the applicable finance laws (Art. 246 of Law n°016/2001) that are adopted each year and constitute the General Tax Code.
The 2009 Tax Code updated by the 2019 Finance Law only determines the modalities for surface area tax (Art. 316 to 330 of the General Tax Code). The other taxes provided for by the Forest Code are not mentioned. The felling tax was abolished by the 2012 Finance Law.
Provisional management, exploitation and processing agreements (CPAET), forestry concessions under sustainable management (CFAD), associated forestry permits (PFA) and permits by private agreement (PGG)
The surface area tax concerns all logging permit holders, whether the areas are managed or not (CPAET/CFAD, PFA and PGG). Since 2020, the amount has stood at F.CFA 300 per hectare per year for FSC-certified forests or PEFC/PAFC, F.CFA 600/hectares/year for concessions that have a voluntary certification of the legality of their operations and 800 FCFA/hectares/year for non-certified concessions (Art. 317 and 318 of the General Tax Code).
Every year, logging permit holders are required to declare the forest areas allocated to them (Art. 319) and, at the same time, pay the annual surface area tax (Art. 323).
Loggers without a logging permit who are conducting logging operations in a forest area located on farming land must also declare the relevant surface areas to the administration (Art. 320). In this setup, permit holders and loggers are severally responsible for the tax payment (Art. 325).
Furthermore, logging permit holders must take out a guarantee from a bank that covers their surface area tax obligations (Art. 329).
Logging products resulting from logging operations carried out on community forests are exempt from all taxes (Art. 3 Order n°0365).
Special logging authorisations (ASC) and Logging authorisations for pitsawing (ACBSL)
Special logging authorisations (ASC) and logging authorisations for pitsawing (ACBSL) are subject to payment of a felling tax, the amount of which is established by the finance laws in force (Art. 10 order n°669 and Art. 11 Order n°104). However, given that these amounts are not defined in the current finance laws, it would appear that the exploitation of these permits is not subject to any taxes.
Forest charges
Finally, the General Tax Code also lists the forestry services subject to specific charges, including marking, exploration and clearing of tracks (Art. 326).
Very little information is available on VAT payments for deliveries of wood and wood products between Gabonese entities.
It appears that it is actually the government that must reimburse exporters for significant VAT sums. These sums are paid indirectly by the exporters when they purchase wood products, paying an amount inclusive of tax (incl. VAT), the VAT part being paid to the state by the supplier. These sums are therefore refundable by the state when the product is exported. VIEW LESS
All legal persons who generate a turnover equal to or greater than F.CFA 500 million are subject to VAT (Art. 208 of the General Tax Code). VAT applies to the majority of operations concerning the delivery of goods or supply of services (Art. 209). The standard VAT rate is 18% (Art. 221 of the General Tax Code).
However, is it actually in very few cases applicable to the sale of wood:
• If the wood is intended for the local market, it is unlikely that the companies involved have a turnover large enough to be subject to VAT;
• If the wood is intended for the international market, it is de facto VAT-exempt, as a 0% rate is applied (Art. 221 of the General Tax Code). As VAT is passed on from company to company until the final consumer, this means that nothing is collected by the government on the added value of wood harvesting and processing operations. Exporters must therefore file a VAT refund claim for the amount they have paid their suppliers, if applicable.
The most frequent risks of illegality are that (EIA, 2019, expert consultation, 2019):
• Fraudulent information is declared on companies’ income and profit statements with the aim of reducing the amount of corporate tax due. Some companies make false declarations regarding the actual value of the transactions completed on their annual balance sheet. The representatives in charge of carrying out the tax inspections are sometimes complicit in this.
• Companies evade tax through transfer pricing. A lack of information on actual sale prices conceals the profit margins for branches and clients of logging companies based abroad. VIEW LESS
Corporate income tax (CIT) is a direct tax that applies to all income generated by companies and other legal persons (Art. 4 of the General Tax Code). CIT covers a period of one (1) financial year.
Whether or not legal persons are subject to this tax depends on their legal regime (joint stock company, limited liability company, cooperative company and public bodies or establishments – Art. 5 of the General Tax Code). The Tax Code also lists the organisations exempt from CIT, notably small and medium-sized enterprises during their first five years of trading (Art. 6).
The tax base is the company’s net earnings during the relevant period (Art. 8). Some expenses can be deducted from the taxable income in line with specified conditions (Article 11). Standard corporate income tax is 30% (Art. 16).
The minimum diameters not being respected (DME and DME/UFA) VIEW LESS
Minimum diameters (all source types)
For all forest species, the Gabonese regulations stipulate a Minimum Felling Diameter (DME). Trees below this diameter cannot be harvested (Art. 3 of Order n°00117/PR/ MEFEPEPN, community forests: Art. 16 of order n°000365/MEF/CAB/ME, ACBSL: Art. 13 of Order n°104/MFEPRN, PGG: Art. 9 of Order n°136/MEF).
In managed forests (CPAET/CFAD and PFA), some species have a minimum felling diameter that is higher than the figure specified by the regulations (Art. 37 of Law n°016/01). Here we talk about DME/UFA (minimum felling diameters for each UFA). These are indicated in the Forest Management Plan.
Species being harvested outside of the defined areas (AAC for CPAET/CFAD and PFA or perimeters of community forests, PGG, ACSBL and ASC); VIEW LESS
Felling and marking (all source types)
All logging permit holders must have at least one log-marking hammer with a mark specific to that logger. This mark must be registered with the relevant administrations (Art. 127 of Law n°16-01, community forests: Art. 17 of Order n°000365/MEF/CAB/ME). Groups of loggers assigned permits by private agreement are exempt from the logging hammer requirement (Art. 17 of Order n°136-MEF).
Logging is limited to the quotas allocated by the logging authorisations and to the limits established by these authorisations (see category 1.4). Only trees that have been previously marked can be felled ((CPAET/CFAD and PFA: Guide Technique National pour l’aménagement - 4.6.4.3, PGG: Art. 10 of Order n°136/MEF, ASC: Art. 7 of Order n°000669, ACBSL: Art. 3 and 13 of Order n°104/MFEPRN).
Within state forests (CPAET/CFAD and PFA), logging must be conducted by a qualified person able to demonstrate controlled, directional felling, ensuring the protection of future trees and minimum breakage (Guide Technique National pour l’aménagement - 4.6.4.3).
All felled trees must be imprinted with the logger’s hammer mark and a tree identification code on the stump, log and “culée” (the part between the stump and log) (Art. 128 of Law n°16-01). For permits by private agreement, the hammer is replaced by a group number, which is applied in white oil-based paint (Art. 17 of Order n°136-MEF).
Abandoning of wood (all source types)
Loggers are prohibited from abandoning logs of commercial value on logging sites, in loading areas or along evacuation routes. Logs that have not been removed more than six months after being felled are deemed abandoned on the related permit (Art. n°134 of Law n°16-01, Art. 2 of Decree n°0273-PR-MEF, Guide Technique National pour l’aménagement - 4.6.4.4).
At the end of these six months, the abandoned wood becomes the property of the state by way of a request to seize the abandoned wood (Art. 4 to 8 of Decree n°0273-PR-MEF).
Creation of logyards (state forests: CPAET/CFAD and PFA)
Logyards cannot be created less than 30 metres from a water body or course. Concessionaires must endeavour to establish these storage areas on land that is on a slight slope (recommended slope of 2%). It is important that the logyards are well drained and that the water in draining ditches is directed towards an area of vegetation and not directly into a water course (Guide Technique National pour l’aménagement - 4.6.3.3)
Road networks (state forests: CPAET/CFAD and PFA)
The creation of all road networks must be subject to a planning stage that factors in various criteria, including minimising earthworks by avoiding steep slopes and wetlands, and sensitive areas in terms of flora and fauna, selecting the most favourable intersections of water courses, optimising the network of main roads by considering other logging operations, and avoiding trees marked by the forestry administration and the forest resources used by the local communities (Guide Technique National pour l'aménagement - 4.6.3.2).
Once the logging inventory has been produced, the trees that can be harvested are grouped into small batches connected to the main roads. The network is planned out in advance on paper in order to optimise the route so as to reach the trees to be harvested first, and then those to be skidded after.
Records (all source types)
All logging activities are recorded in a site logbook (all source types: Art. 130 of Law n°016-2001, CPAET/CFAD and PFA: Art. 49 of Law n°016-2001 and Guide Technique National pour l’aménagement - 4.6.4.3, PGG: Art. 20 of Order n°136/MEF, community forests: Art. 20 of Order n°000365/MEF/CAB/ME). Stump details must be recorded before the end of the week during which the trees were felled, whilst log details must be recorded before they are removed from the site (Art. 131 of Law n°016-01). The specifications for managed forests (CPAET/CFAD and PFA) may stipulate the requirements for the keeping of site logbooks (Guide Technique National pour l’aménagement - 4.6.4.3).
The number of trees and volumes authorised by the permit/authorisation being exceeded VIEW LESS
The number of trees and/or authorized volumes are respected.
Trees being harvested other than those previously identified and marked jointly with the administration, notably for permits in the rural forest domain (permits by private agreement (PGG), special logging authorisations (ASC) and logging authorisations for pitsawing (ACBSL)) (Jeune Afrique, 2015 and expert consultation, 2019). VIEW LESS
Although not an example of illegality, it should be noted that the regulations are not very clear regarding the criteria for identifying the sites and species to be protected within managed forests (CPAET/CFAD and PFA) (Proforest, 2018).
Illegal wood harvesting in areas that are not assigned to logging, such as national parks or nature reserves. This wood is laundered and reintegrated into the formal circuit for export, covered by false markings and falsified transport documents (Expert consultation, 2019) VIEW LESS
Protected sites
In classified state forests, no logging activities may take place and no logging permits may be allocated. These forests notably include protection forests, protected areas and forests used for educational and scientific purposes (Art. 8 and 149 of Law n°016-01). There is an exception for areas that have been reforested by the state within these zones (Art. 149 of Law n°016-01).
Logging is also no longer permitted in National Parks (Law n° 003-2007). Trees may potentially be harvested for scientific or tourism-related purposes – see Article 10 of Law n° 003-2007). There are severe penalties (prison or fines) for the harvesting of timber within national parks (Article 64 of Law n° 003-2007).
Within state-owned productive forests (CPAET/CFAD and PFA), the regulations notably protect the areas surrounding running water and sloping ground.
The forest management plans must contain mapping information specific to the logging restrictions relating to, for example, sloping areas and large wetlands (Guide Technique National pour l’aménagement – 3.4.6.1).
Campsites or industrial installations cannot be developed (1) less than one kilometre from an area identified as sensitive by the forestry administration (sharp slope, swamp, etc.) or (2) less than 60 metres from a body of water (including for storing organic matter produced as a result of the works) (Guide Technique National pour l’aménagement – 3.4.6.1).
Logging cannot take place less than 30 metres from any lake or body of water that is more than 5 metres wide. There are also specifications relating to the protection of water for digging drainage canals, cleaning machinery, handling fuels (Guide Technique National pour l’aménagement – 3.4.6.1) and the creation of logyards (Guide Technique National pour l’aménagement – 4.6.3.3).
Finally, some areas may be established as conservation areas during the forest management plan development stage, particularly due to specific factors on an ecological or biodiversity level (notably in the form of conservation or research series).
Simplified management programmes for community forests may also contain specific provisions relating to the sites and species to be protected.
Protected species (flora)
A logging ban may be placed on certain forest species, either due to their protection status on a national scale, or for that specific forest.
In application of the law on environmental protection, a list of rare or endangered plant species is fixed through the applicable regulations (Art. 75 of Law n°007/2014).
In 2015, a precautionary logging suspension on Kevazingo was introduced by an order, due to the intensity of illegal felling of this species.
Five Gabonese species had also notably been subjected to selective and intensive logging: Afo (Poga oleosa), Andok (Irvingia gabonensis), Douka (Tieghemella Africana), Ozigo (Dacryodes buetnerii) and Moabi (Baillonnella toxisperma). A logging ban was placed on these species for a period of 25 years as of 2009 (Decree n°137/PR/MEFEPA, also see Art. 11 of Order n°000669 for ASCs and Art. 8 of Order n°136/MEF for PGGs).
The logging ban on Ozigo and Kevazingo was lifted in 2016 (Decree n°350/PR/MPERNFM). Ozigo and Kévazingo may therefore be harvested and sold under certain conditions: when they are to be exported, Ozigo products must be subject to a secondary processing carried out in Gabon, and Kévazingo products must be subject to a tertiary processing carried out in Gabon (in accordance with the definition in the Forest Code) (Decree n°350/PR/MPERNFM).
Furthermore, the export of Kévazingo products its subject to special authorisation (Order n°33/MFEPRN/CAB).
Forest species subject to logging bans on national territory or within the specific forest being harvested (Expert consultation, 2019). VIEW LESS
Within productive forests (CPAET/CFAD and PFA), logging operations being carried out in protected areas and conservation series (Expert consultation, 2019) VIEW LESS
For productive forests (CPAET/CFAD and PFA), no biodiversity diagnosis being carried out for the forest management plan or the management measures provided for in relation to biodiversity not being respected (for example, creation of checkpoints at the concession entrances, etc.) (Expert consultation, 2019). VIEW LESS
Wildlife protection
The forest management plans for CFADs and PFAs are drawn up based on the biodiversity diagnosis conducted during the preparation stage, as well as the guidelines contained in the national technical guide on forest management and the management of state-owned forests (Guide Technique National pour l’aménagement et la gestion des forêts domaniales) (section 4.6.2), which stipulates: a ban on the transport of hunting machinery and hunting products on-board concessionaires’ vehicles, an obligation to ensure the supply of food to logging workers residing at the camps, and an obligation to barricade the non-permanent roads at the end of the logging activities.
Furthermore, Order n°0937 has stipulated since 2004 that forest concessions have a wildlife protection plan (PFF), the duration of which is calculated based on the duration of the management plan (5 years). The role of the PFF is to ensure improved governance of wildlife protection and to ensure that the applicable wildlife protection measures are respected (Art. 2). The PFFs must be drawn up with the involvement of all stakeholders, (Art. 10), must follow a predefined framework (Art. 10) and must be validated by the administration (Art. 4).
In general, the wildlife protection measures provided for in the forest management plans and wildlife protection plans involve the implementation of an anti-poaching surveillance and monitoring system, alternatives to bush meat for workers, supporting the forestry administration during anti-poaching operations, the implementation of checkpoints at the concession entrances, and raising awareness amongst communities about the sustainable wildlife management, etc.
Protection of water and soil & waste management
The national technical guide on forest management and the management of state-owned forests also contains guidelines on:
• The protection of water: maintaining a wooded border of 30m around water courses and bodies, conditions for digging drainage canals, banning cleaning machinery in or around bodies of water.
• Waste management: a ban on abandoning waste in the forest.
Furthermore, the forest infrastructure (camps, industrial installations and road networks) must also take into account the environmental requirements relating to the protection of running water, protected areas and specific zones (sloping ground, marshlands, etc.).
The possession, collection and disposal of waste oil is also subject to specific regulations (Decree n°000545/PR/MEFEPEPN, chapter 1).
Environmental impact assessments
The clearing of non-permanent forests of a surface area greater than or equal to 25 hectares, the reforestation of large areas greater than or equal to 100 hectares, and forest road networks are also subjected to an environmental impact assessment (Article 3 Decree n°0539/PR/MEFEPEPN and Order n°035).
The law on environmental protection (Law n°007/2014) stipulates that the exploitation of natural resources ensures the protection of human health (Art. 73).
Furthermore, establishments belonging to logging companies are explicitly declared as being subject to the provisions of the labour code on health and safety at work (Art. 197).
The employer is responsible for the application of the necessary prevention measures to ensure health and safety in the workplace (Art. 198). Internal regulations that include guidelines on health and safety at work must be established (Art. 110), alongside a programme to prevent risks in the workplace (Art. 198).
The employer is responsible for providing workers with the appropriate facilities and equipment for carrying out their work, in order to ensure appropriate protection against accidents at work and any damage to their health. The employer is also responsible for providing workers with individual and group protection resources, and ensuring the maintenance and renewal thereof (Art. 200).
All professional establishments must maintain the necessary levels of hygiene and cleanliness to ensure the health of all workers (Art. 211).
A fitness for work medical assessment is obligatory for all workers (Art. 207).
Workers must be trained on the risks that their respective jobs involve and the measures they need to take to prevent them, including the use of protection systems (Art. 201).
Except for in cases of force majeure, the employer is responsible for declaring all accidents at work and all occupational illnesses contracted within the company to the social security body within two working days. A copy of this declaration is forwarded to the labour inspectorate.
Finally, all companies and establishments must provide an occupational health service that can provide first aid and emergency care (Art. 221).
The Labour Code contains the majority of all employment-related obligations in Gabon. Other modalities are stipulated for specific sectors in the applicable collective bargaining agreements.
Contract
The employment contract is the only document that justifies a professional relationship between an employee and their employer. It may be freely concluded either verbally or in writing (Art. 19). It may be concluded for a fixed term, on an open-ended basis or for the performance of a pre-determined project or task (Art. 22). It must be registered with the labour administration and the national social security fund before it takes effect.
Salary
In Gabon, there is a regulatory minimum wage (Article 2. Decree n° 855/PR/MTE), as well as set weekly working hours spread across different days of the week. Overtime may be authorised by the authorities upon a request submitted by the employer.
Salaries are stipulated in the applicable collective bargaining agreements (Art. 126 of the Labour Code).
When they pay their employees, employers must provide them with an individual payslip (Art. 153 of the Labour Code).
Workers
Forced or compulsory labour is prohibited. The term “forced or compulsory labour” means all work or service which is exacted from any person under the threat of a penalty and for which the person has not offered himself or herself voluntarily (Article 4 of the Labour Code).
The employment of children under the age of 16 is prohibited, unless an exemption is prescribed by way of a Decree (Article 177 of the Labour Code).
Before any foreign worker can be recruited, a work permit must be issued by the Ministry of Labour, as well as approval from the local offices of the Ministry of Labour (Article 104 of the Labour Code). Decree n°0162/PR/MTE of 7 March 2016 provides details on the conditions for issuing and renewing individual work permits of foreign workers.
All workers in the private sector must be covered by the national social security system (Article 13 of the Social Protection Code).
Other rights
The Labour Code lists the mandatory provisions of the collective bargaining agreements (Art. 126), which notably include provisions on paid leave, conditions for dismissal and severance pay, bonuses for length of service, free exercise of trade union rights, etc.
Workers may organise themselves into staff representative bodies and freely join trade unions (Article 14 of the Labour Code). All establishments with more than 10 employees must have a staff representative body.
Internal regulations
A set of internal regulations must be established by the company director. It must cover the rules on the technical organisation of work, discipline, requirements on health and safety at work, and the modalities for the payment of salaries (Article 110 of the Labour Code). Before the internal regulations are put into force, the company director must communicate them, for comment, to the permanent commission for economic and social concertation and the staff representative bodies, and, for approval, to the labour inspectorate, which may require any provisions that are contrary to the laws and regulations in force to be omitted or modified.
State-owned productive forests are initially subject to a classification procedure. This procedure, as laid down by the regulations, stipulates that representatives of the surrounding local communities must be involved in the classification phase, carried out by the administration (acknowledgement of the perimeter, uses, activities and practices within the perimeter) (Art. 3 of Decree n°1032). The classification draft report is published for one month, during which time any objections may be formulated in writing (Art. 5 and 6 of Decree n°1032). The classification committee must include the heads of the cantons concerned, and the heads and any other persons of note of the villages concerned (Art. 7 of Decree n°1032).
The local communities are less involved during the forest concession allocation procedure for concessions located within state forests. The tender procedure is public (Art. 3 of Order n°00640-08/MEFEPA). An independent monitor may be appointed to monitor the work of the Selection Committee (Art. 42 n°00640-08/MEFEPA).
Consulting populations on the allocation of concessions (CFAD)
During the management plan development phase, the local communities are consulted for the purpose of the socio-economic diagnosis, which reveals the areas and resources traditionally used by them.
Finally, the 2004 national technical guide on forest management stipulates that concessionaires must inform the local administrative or traditional authorities before undertaking the activities relating to management and logging. They must notably identify and protect the resources used by these populations (fields, fruit trees, sacred areas and areas of special value). They must also repair any infrastructure (bridges, culverts, tracks) damaged by the passage of the logging trucks.
User rights
The Forest Code governs the exercise of customary user rights as rights whose purpose is the satisfaction of the personal or collective needs of local communities. These notably cover the use of trees as construction wood and the use of dead wood or branches as fire wood, the collection of secondary forest products (bark, latex, mushrooms, medicinal or edible plants, stones, lianas), the performance of small-scale hunting and fishing, pastureland, subsistence agriculture, grazing rights and the use of water (Forest Code, chapter 6).
The exercise of customary user rights is unrestricted and free of charge within the rural forest domain for members of the local communities traditionally living near this domain and subject to compliance with restrictive regulations for the purpose of management or protection.
The exercise of customary user rights is, however, regulated in classified state forests and registered productive forests, subject to the specific authorisations provided for by the classification texts (with the exception of the collection of dead wood lying on the ground (Article 5 of Decree n°692/PR/MEFEPEPN).
In registered productive forests subject to management, the management plan is founded on maintaining the local communities and their customary user rights within the forest management unit or its surroundings (Article 31 Decree n°689/PR/MEFEPEPN). The preparatory socio-economic study addresses the rural communities concerned and provides an opportunity to identify any customary user rights, any sites of socio-cultural interest to the local populations and potential situations of conflict. If applicable, an agro-forestry series for use by the populations may be defined, alongside an involvement programme, on a negotiated basis (Article 31 of Decree n°689/PR/MEFEPEPN). The exercise of customary user rights is based on the allocation of land, as provided for by the management plan (Article 6 Decree n°692/PR/MEFEPEPN).
Finally, the sale of any forest products extracted in exercise of such user rights must also be in compliance with the trade regulations.
Right to economic development (for CFADs)
Community rights in Gabon include rights to the financial income generated by the harvesting of forest resources under concessions (CFAD). In order to promote the social aspect of the country’s policy on sustainable management, concession holders are required to make a contribution. This contribution is primarily financial and aims to support development initiatives of a collective interest initiated by these communities. The nature and level of this contribution are defined by the contractual specifications associated with each concession (Art. 251 of Law n°16-2000 on the Forest Code). These contractual specifications must be concluded between the company and the communities.
Order n°105/MFEPRN/SG/DGF/DDF/SACF establishes a template for these contractual specifications, which must be signed by the community and the concessionaire. Article 4 of this template is entitled “social and economic obligations” and stipulates that the concessionaire shall undertake to finance the project(s) of collective interest identified by the local communities concerned through a fund called the “local development fund” (FDL). For the forest concessionaire, the amount of this financial contribution is determined on the basis of the volume of wood cut the previous year, confirmed by the representative of the forestry administration. Payment of the funds into the FDL - linked with the company’s bank account - must be made after the site logbooks have been validated by the administration.
The communities not receiving the financial revenue provided for by the regulations. Some companies with management plans not contributing to the local development fund, either because the order creating such fund has not yet been published, or because the management plan has not yet been approved, or even because the sanctions provided for by the regulations in the event that they don’t contribute to the fund are not enforced by the forestry administration.
Although this does not constitute a specified risk of illegality, it is important to note that the ClientEarth report identifies significant weaknesses in the current community forest system, including (1) a legal uncertainty regarding the space in which community forests can be created, (2) terminological inconsistencies regarding the recipients of community forests, notably questioning the inclusion of aboriginal populations, and (3) a lengthy and complex procedure for the allocation of community forests, making access to community forestry difficult (ClientEarth (not dated)). VIEW LESS
There is a risk of manipulation of the legal framework through the creation and exploitation of community forests with no real involvement or representation of all members of the community in the decision-making process and conflict management (ClientEarth (not dated)).
The conditions for creating community forests are governed by the Forest Code (Law n°16/01, Art. 156 to 161), Decree n°1023 of 2004 and Orders n°106 of 2014 and n°018 of 2013).
All communities who wish to initiate the process for creating a community forest may submit a forest reservation application, based on the minutes from a general assembly, a sketch of the area and a description of how the forest concerned would be used (Art. 2 to 4 Order n°106). Forests subject to reservation are exempt from all other forms of allocation (Art. 5 Order n°106).
Community forests are created following an application submitted by a village, a group of villages or a canton, in the general interest of the village communities concerned (Art. 157 Law n°016/01 and Decree n°1023). Decree n°1023 stipulates that the local community must act within the framework of a recognised legal entity (“association”) with a representative body (Art. 2 and 3). The related articles of association must be attached to the application (art. 4).
Several stages are required before a community forest can be allocated, including one or several information and awareness meetings, a participatory mapping exercise, a consultation meeting and the submission of an allocation file.
The law stipulates that the state provides the community with assistance, notably for the delineation and management of community forests, which are carried out free of charge (Art. 159 Law n°016/01).
All revenue generated from community forest logging shall go back to the community concerned (Art. 161 Law n°016/01).
Not applicable VIEW LESS
Note: there are no specific regulations on indigenous people in Gabon. The Gabonese state does not officially recognise the existence of indigenous people. The Constitution stipulates that all Gabonese nationals have equal rights on Gabonese territory. VIEW LESS
There is a risk that false declarations (volumes, species) are made on the logbooks and road maps for transportation of the logs (Expert consultation, 2019).
The main aim is to avoid paying felling tax in proportion to the volume harvested (here, the false information therefore relates to the volumes).
Another aim is to conceal the over-harvesting of certain species in relation to the quotas allocated (EIA, 2019) or to conceal the harvesting of banned species (Gabon Initiative 2017) (here, the false information therefore relates to the species).
As well as false declarations on the wood transport documents, the markings made on the transported logs can sometimes be altered, notably when the wood is unloaded and stored at break bulk yards located along the trade route.
This risk is heightened by failures on the part of the forestry administration and insufficient staff numbers, preventing systematic checks from being carried out along the route taken by the wood. The individuals in charge of the check points do not always have suitable equipment to measure the diameter and length, or the skills required to identify the species of the transported logs. VIEW LESS
For every forest site being harvested, all loggers must keep an up-to-date site logbook in compliance with the national technical standards defined by the Administration of Water and Forests (Articles 19 and 130 of Law n°016/2001).
Moreover, CPAET/CFAD and PFA holders are obliged to list all trees felled, along with their characteristics, in a daily felling logbook. The details in this daily logbook are then transferred over to the site logbook. A site logbook is opened for each annual allowable cut (AAC) (Article 49 of Law n°016/2001).
The site logbook notably includes information on the logger, identification of the permit/site, a list of all trees felled, including the species and felling date, and the dimensions, cubic volume and date of evacuation of the wood. It must be numbered and initialled by the Head of the Provincial Inspectorate of Water and Forests. This logbook must be presented upon the request of any official from the Administration of Water and Forests, who must then sign it after the last entry.
Trees that suffer breakages when harvested and trees with visible defects or damage after harvesting making them unusable are considered abandoned on-site. The reasons for this abandonment must be stated in the site logbook (Article 130 of Law n°016/2001).
Logging title holders wishing to borrow a public or private road to evacuate the raw or processed products they have harvested are required to draw up a road map, in three original copies, presenting no deletions or alterations. A copy of this road map must accompany the products (Article 135 and 229 of Law n°016/2001) The road maps must notably include information on the logger, the recipient, the processed wood (species, dimensions, cubic volume), identification of the permit/site and reference to the vehicle transporting the wood.
The origin of the wood must be justified upon the request of any Water and Forest Official, by presentation of a road map that is compliant with the regulations.
Distributors of processed wood products must justify the origin of their products upon the request of any Water and Forest Official, by presentation of a transport slip that is compliant with the regulations (Article 229 of Law n°016/2001).
Logging title holders wishing to borrow a public or private road to evacuate the raw or processed products they have harvested are required to draw up a road map, in three original copies, presenting no deletions or alterations (Article 135 of Law n°016/2001).
Distributors of processed wood products must source their supplies from the processing units accredited by the Administration of Water and Forests. As such, they must justify the origin of their products upon the request of any Water and Forest Official, by presentation of a transport slip that complies with the applicable regulations (Article 229 of Law n°016/2001).
Al loggers are required to provide (1) a quarterly statement of sales to each buyer to the Provincial Inspectorate of Water and Forests (Article 136 of Law n°016/2001) and (2) annually, before 31 March, a global summary per species of all volumes harvested, sold in the form of logs and volumes delivered to the local processing units to the Administration of Water and Forests (Article 50 of Law n°016/2001).
Tax evasion via subsidiaries based abroad purchasing wood for much less than market price. This risk applies both to small and medium-sized enterprises, and to major corporations. That the legal provisions are not effective, due to a lack of resources available to evaluate the information provided by the companies (Expert consultation, 2019; EIA, 2019). VIEW LESS
The texts in force in Gabon prohibit tax evasion and money laundering. For this purpose, sales prices are monitored and their alignment with official market prices are verified in order to prevent the manipulation of prices, which is one of the most widespread methods of tax evasion.
The aim is to bypass the procedure through which companies distribute the income generated through logging operations and the export of timber products. In order to do this, a subsidiary based in Gabon sells the wood and derived products at an artificially low price to other group subsidiaries based in countries with low corporate income tax. The wood products are then sold on to the end consumers at market price. The biggest proportion of the apparent profits are generated by a subsidiary subject to low tax. This subsidiary often acts solely as an intermediary and the products are shipped directly from Gabon to the end client.
The 2019 Finance Law (Law n°047/2018) establishes new documentary regulations on transfer prices. These documentary obligations apply to legal persons established in Gabon:
• That are dependent de facto or de jure on companies or groups of companies located outside of the Central African Economic and Monetary Community (CEMAC);
• Or that control companies located outside of the CEMAC.
This documentary obligation includes two files: (1) a main file (specific to the group), which contains general information on the nature of the activities carried out by the group of multi-national companies, its global policy on transfer prices and the distribution of its profits and activities on a global level and (2) a local file (specific to the company), which contains information proving that that all major intra-group transactions concluded with the company established in Gabon are compliant with the arm's length principle. These two files must be made available to the Finance Administration by the tax return deadline applicable to the group and its subsidiary. This documentation must be presented in digital format in French.
If it has not been made available by the date indicated or if it is only partially complete, the Finance Administration may issue a formal notice for the company to produce or complete the documentation within a maximum of 60 days.
Violation of these documentary obligations regarding transfer prices is subject to a penalty equal to 5% of all intra-group transactions. The minimum amount is F.CFA 65,000,000 (€99,092) per tax year.
The texts in force also stipulate the establishment of several supervisory structures and bodies to crack down on corruption by state officials.
Based on Expert consultation, 2019. VIEW LESS
Exports in Gabon
Wood for export is primarily transported via the ports of Owendo (Libreville) and Port-Gentil.
Export procedure
A single administrative document (DAU) is usually required for exports. It is a declaration of the goods to customs.
Packages of processed wood must display certain details (number, condition, destination, etc.). They must be accompanied by a specification sheet, stating the package reference, the names of the species comprising the package, the dimensions, volume or weight or the package and the number of units contained in the package,
The wood must be treated and subjected to a phytosanitary inspection. The first stage is to request an inspection from the phytosanitary department, which then treats the wood and issues a phytosanitary certificate.
Depending on the country of import, an origin certificate signed by customs may also be required. This document confirms the place of production, manufacture or treatment of a product.
The wood is then loaded into a sealed container: this is called packing. This activity must be carried out in the presence of a customs officers and an officer from the ministry of forests. A report is jointly signed by these authorities (visit report/visit certificate issued by the customs authority).
During the export preparation stage, the necessary documents are:
• Authorisation for collection issued by customs;
• Delivery note initialled by the shipowner;
• Shipping note.
Export bans
A suspension on log exports was adopted in 2010 (Ordinance n°008/PR/2010) in order to promote the development of the local wood industry. It is still in force on the date on which the present report is being drawn up.
There is an export ban on some processed products (square-edged, boules or boards) (Order n°132/MFEPRN/SG/GGCICBVPF). However, boards that that are no more than 250 mm thick and 2 m wide are authorised for export, as long as both the primary and secondary processing have been carried out by the same factory simultaneously.
Furthermore, the export of Kévazingo products its subject to a special authorisation (Order n°33/MFEPRN/CAB0. This authorisation is issued by the General Secretariat of the Ministry of Forests, following submission of an application.
Okoume and Ozigo are free to be purchased and sold in Gabon, and may therefore be freely exported (Decree n°488/PR/MEFEPPN).
Export taxes
Different products are subject to different export tax rates in line with their processing status:
• Products that have undergone a primary processing: 9%
• Products that have undergone a secondary processing: 3%
• Products that have undergone a tertiary processing: 1.5%
Illegal practices in the wood export sector are facilitated by:
• Containers being loaded and sealed outside of the port area and/or in the absence of any customs officers or officials from the Ministry of Forests. Due to a lack of material and human resources, the appointed representatives (Ministry of Forests) are not always able to attend the packing operations. They sometimes sign the packing reports despite not being present, or sometimes the officer in question does not have the expertise required to carry out certain checks, such as recognising different species. The administrations have not developed systematic procedures for verifying the identity of species during export operations (Expert consultation, 2019);
• Corruption amongst customs officers;
• The absence of a single database accessible to all officials responsible for carrying out the checks, coupled with a lack of synergy and communication between the administrations. VIEW LESS
TRAFFIC (2013) highlights the numerous difficulties encountered in implementing the CITES Convention in Gabon, and in the four other countries that make up the Central African Forest Commission (Cameroon, Chad, CAR and Equatorial Guinea). Globally, various flaws in the application of the CITES Convention have been highlighted, notably:
• poor collaboration between the departments responsible for ensuring compliance with the CITES Convention and the related national legislation;
• a lack of collaboration with nearby countries and purchasing countries in Asia (China, Thailand and Pakistan) identified as being involved in the illegal trade of products in their countries, as well as with international shippers;
• the tools and methods for the detection of smuggling are most often limited to intelligence networks, with limited use of scanners;
• a lack of training programmes available where the officers responsible for enforcing the forestry legislation are based;
• the officers responsible for enforcing the law more often than not do not have any guide to refer to for the identification of CITES species.
Several reports mention the use of Kevazingo for the manufacture of high-end furniture sold for very large sums of money on Asian markets (China and Japan). The shipment of Kevazingo made the headlines in 2019: 353 containers were seized by the authorities and then disappeared from the port of Libreville: an operation in which the customs officers were complicit. Since then, only 200 containers are believed to have been located at other warehouses.
Sources reveal widespread corruption linked to Gabonese officials covering up fraudulent activities carried out by certain timber loggers/traders (ENACT Observer, 2020; EIA, 2019), alongside the inadequacy of the system in place in monitoring the volumes harvested and exported.
There is therefore a potential risk that Kevazingo is harvested and exported without a CITES permit. VIEW LESS
Gabon has been a signatory to the CITES Convention since 1989.
Three Guibourtia species listed in annex II face huge export pressure: Guibourtia tessmannii, Guibourtia pellegriniana and Guibourtia demeusei. They are known by the generic name “Kevazingo”. Other Guibourtia species are not of such a high commercial interest.
Dalbergia spp. is another species present in Gabon that features on the CITES lists, however this species is largely unexploited for timber.
These species may be exported within the limit of an annual export quota. In general, these export quotas are established unilaterally by the states concerned, on the basis of a non-detriment finding (NDF) issued by the national CITES Scientific Authority. It is these authorities that then distribute the volumes between the various logging titles.
Exporting these species is also contingent upon the issuance of a CITES permit by the CITES management body in Gabon (at the time of writing this report, this is the General Directorate of Fauna and Protected Areas of the Ministry of Forests.)
The CITES database confirms that permits are regularly allocated for Guibourtia exports. No data is available for Dalbergia spp.
Not applicable. There is no law on due diligence in Gabon. VIEW LESS
No systematic risks of illegality have been observed regarding the registration of wood processing units. VIEW LESS
Professional accreditation
The performance of logging activities in Gabon is contingent upon the possession of a professional accreditation (Decree n°0278/PR/MEF) and registration with the financial authorities, which issue a unique registration card (or trader’s card) to all companies legally established on Gabonese territory. The professional accreditation covers all processing and trading activities relating to forest products, and is issued to any natural or legal person that applies for one to the Ministry of Water and Forests.
Registration
The creation/registration of a company in Gabon also involves the drafting and certification of the articles of association, the registration of the articles of association with the tax office, the allocation of a tax identification number (NIF), registration with the trade and personal property credit register (RCCM) and registration with the national social security fund (CNSS). The registration documents are then published in the Official Journal.
Industrialisation plan
All wood processing industries (primary, secondary and tertiary processing) must be subject to an industrialisation plan (Art. 226 of Law n°016/2001); This plan includes:
• a project feasibility assessment;
• an environmental impact assessment;
• an implementation schedule with a detailed timeline;
• a description of all industrial installations and equipment with an indication of performance, such as: production, productivity, the material yield, product specifications and staff numbers;
• company articles of association or a trading accreditation for natural persons;
• a professional accreditation.
It should be noted that in addition to the management plan, CFAD holders must implement their own industrialisation plan (Art. 23, 110 of Law n°016/2001). CFADs are allocated upon examination of the two plans by the wood industry industrialisation committee, which issues its opinion to the applicable decision-making ministry. In practice, CFAD concessionaires therefore also carry out wood processing activities.
The implementation of processing activities is subject to an environmental impact assessment (EIA) being carried out in advance, which is subjected for examination by the Ministry of Environment (Art. 226 of Law n°016/2001 and Law n°007/2014, Decree n°000539/PR/MEFEPEPN).
Furthermore, manufacturers must endeavour to limit and offset their greenhouse gas emissions when performing major operations involving the exploitation or processing of natural resources. All manufacturers must draw up a carbon audit in order to evaluate the volumes or quantities of greenhouse gases emitted by their operations to ensure the reduction thereof (Art. 42 Law n°007/2014).
Law n°007/2014 also stipulates a number of prohibitions regarding the release of fumes, gas, aerosols etc. into the atmosphere, the projection or emission of substances that could cause damage to health or inconveniences to the neighbouring communities, and the drainage/release of waste or residue into the water.
All individuals producing or possessing waste in conditions that could be harmful to health or damage the quality of the environment must remove or have such waste removed (Decree n°000541/PR/MEFEPEPN). Waste removal involves collecting, transporting, storing, sorting and processing to recover the elements and materials that can be reused or utilised for the production of energy, as well as depositing or releasing all other products into the environment, under conditions that can guarantee no harm is caused to the health of people or the quality of the environment.
Storing specialist industrial waste in storage facilities containing other forms of waste is prohibited.
Waste oils originating from industrial installations must be collected and stored in satisfactory separation conditions, notably avoiding mixing it with water or other non-oil waste.
For forest concessions (CFAD), there is a risk that the processing capacity that is required/declared is different to the actual capacity (Expert consultation, 2019). In effect, the allocation of the CFAD is partly based on the industrialisation plan, which sometimes overestimates processing capacity. It can also happen than false declarations are made, such as the applicant falsely declaring to be in possession of a processing machine. As a consequence, the applicant’s processing capacity is not in line with the potential volume of wood present within the concession.
There is also a risk that the factory records are poorly kept (Expert consultation, 2019). This aspect is generally poorly monitored by the administration officials, the focus primarily resting on the nature and quality of the packed products and on monitoring customs duties when the sawn products are exported. VIEW LESS
Levels of processing
The regulations classify the different levels and segments of processing: primary processing (sawing, peeling and slicing), secondary processing (drying and machining of solid wood and the production of plywood) and tertiary processing (panels, cladding, joinery, furniture, wooden flooring, etc.) (Article 3 of Order n°015-MEF-SG-DGICBVPF). The dimensions of the different types of square-edge wood (beams, sleepers, boards, planks, rafters, slats, etc.) are also established by the regulations (Article 5 of Order n°015-MEF-SG-DGICBVPF).
Content of the industrialisation plan
The industrialisation plan, mandatory for all wood processing businesses (Art. 226 of Law n°016/2001) notably includes a feasibility assessment, an environmental impact assessment, an implementation programme with a detailed timeline, and a description of the industrial installations and equipment with an indication of their expected performance.
The industrialisation plan comes into play during the forest concession allocation process (CFAD), as it must be drawn up by the logging title applicant and the content thereof contributes to the final decision as to whether the concession is allocated or not.
Records
Article 288 of the Forest Code stipulates that wood business managers must compile records of the movement of all wood coming into and processed inside their factories. These records must be regularly updated. For this purpose, wood business managers must write down all information that appears on the road map in the designated records, within a maximum of 48 hours of receipt of the logs.