The method used by the DoF to set forest charges is consultation. There is no formula used to set forest charges, although inflation is taken into account at the time of determining a new set of forest charges.
The DoF proposes charges in consultation with stakeholders such as farmers and other public representatives. This process is open and transparent. The proposed charges are forwarded as recommendations to the Permanent Secretary and Minister of Environment and Tourism for further consideration. If satisfied, the Minister then forwards the proposed charges to the Ministry of Finance for approval (as per the provisions of the 1968 Forest Act). The charges are then issued as a new list of forest products tariffs, attached as Schedules to the Forest Act.
The current list of forest products tariffs (shown in Appendix 1) were established in 1997 and have not, so far, been updated. However, there is a provision for annual revisions in the Forest Act. In addition, timber concessions note that forest charges can be updated periodically.
Information about forest charges is published in the government gazette, not in the public press. However, DoF staff distribute the approved list of forest products tariffs to any interested member of the public. The DoF is currently the main authority collecting forest revenue and it works independently of other institutions. Ideally, it would be useful for the DoF and other institutions that collect forest-related revenue to co-operate in sharing and disseminating information about total forest revenue collection (particularly from charges collected from forestry and wildlife activities).
The amount of charges that should be paid is based on the amount of timber to be harvested and the list of forest products tariffs published by the government. Competition or auctions are not used to assess charges, although confiscated timber can be sold by auction.
In the case of timber concessions, a sawmiller first applies to the DoF to harvest timber in a desired area. The DoF then surveys and delimits the area for the concession and awards the concession for that fixed area for one year (renewable). The DoF supervises the timber harvesting to ensure that the concessionaire harvests timber according to the regulations, such as: stipulated stump height; species; minimum damage to the environment etc. This is both to control the harvesting of the forest resource and to provide the information necessary to assess the forest charges due.
At present, there are no concessions that are operational (but similar procedures to those described above are used to control and supervise forest permits). Previously, forest concessions were Namib Wood in Rundu District and the Development Brigade Corporation concession in West Tsumkwe District. Both concessionaires were cutting Pterocarpus angolensis (Mukwa) for their own sawmills and it should be noted that the price of sawn Pterocarpus angolensis (Mukwa) is about N$ 4,000 to N$ 5,000 per cubic metre (compared with a tariff of only N$ 80 to N$ 110 per tree).
The process of collecting forest charges is entirely managed by the DoF, while the Directorates of Specialist Support Services and Parks and Wildlife Management collect revenue from charges levied in the wildlife sector. Authority to receive revenue is carried out according to the Finance Act and Treasury Regulations. Any District Forestry Office can be recommended to receive revenue upon registration by the Ministry of Finance and training is normally provided in banking rules and the rules for recording financial information. At present District Offices, Regional Offices and Head Office of the DoF receive revenue.
Forestry Rangers and Forestry Technicians in the DoF are responsible for assessing production levels and calculating total charges due. The Regional Forest Officers are responsible for checking their Forestry Rangers and Forestry Technicians. Data from DoF farm inspections and the issuance of harvesting, transport and export permits are also used to provide information that is input into the Forest Permit System recently established at the Directorate of Forestry.
Charges are collected at the regional level by respective District Forest Officers. Depending on circumstances, government receipts are issued for cash received for services as such issuing permits and payments for forest products. However, in the case of concessionaires, an invoice (based on the calculated volume) would be given and is payable within 30 days.
Due to the small size of the DoF (particularly in terms of manpower) compared to the large forest areas covered by the staff, it is likely that there may be inaccurate recording of production. In addition, some customers may certainly try to avoid paying charges.
Communities are not involved in any way in the collection of forest charges and/or checking production levels. This is solely the responsibility of government officials in the DoF. In addition, all the revenue collected by any government institution goes to the Ministry of Finance so the sharing of forest revenue is done through the Ministry of Finance in its annual national budget. However, the DoF, through the community forestry component of the Namibia-Finland Forestry Programme, is working towards empowering selected local communities to be involved in issuing forest permits and the collection of charges.
