Circular No. 150/1999/TT-BTC dated December 21, 1999 of the Ministry of Finance guiding the implementation of the Prime Minister's Decision No.195/1999/QD-TTg dated September 27, 1999 on the setting up, use and management of export support fund
THE MINISTRY OF FINANCE
SOCIALIST REPUBLIC OF VIETNAM
Independence- Freedom- Happiness
Hanoi, December 21, 1999
GUIDING THE IMPLEMENTATION OF THE PRIME MINISTER'S DECISION No.195/1999/QD-TTg OF SEPTEMBER 27, 1999 ON THE SETTING UP, USE AND MANAGEMENT OF EXPORT SUPPORT FUND
In furtherance of the Prime Minister's Decision No.195/1999/QD-TTg dated September 27, 1999 on the setting up, use and management of export Support Fund, the Ministry of Finance provides the following guidance for implementation:
A. GENERAL PROVISIONS
1. The Export Support Fund is set up with a view to providing financial support for enterprises to encourage them to develop the export business, search for and expand markets, and raise the competitiveness of Vietnam's export goods.
2. On the basis of the undertakings and tasks of economic development in each period under the Government's or the Prime Minister's direction; the domestic and overseas situation and fluctuations concerning the markets, prices, export goods, as well as the business situation and financial results of importing/exporting enterprises, the Finance Ministry shall organize the provisions of financial support for importing/exporting enterprises that meet all conditions stipulated in this Circular, after consulting the Ministry of Trade, the Government Pricing Committee and the goods category-management agencies according to the relevant contents and nature of the supports.
3. Enterprises entitled to financial support under the guidance in this Circular include: enterprises engaged in import and export (mainly of agricultural products), enterprises producing goods directly for export and other enterprises as decided by the Prime Minister.
4. The Export Support Fund has its own bank account at the State Treasury. The Price Stabilization Fund's remaining balances up to October 12, 1999 and the revenue being surcharges on goods items subject there to for the Price Stabilization Fund under Decision No.151/TTg dated April 12, 1993 and for the Export Reward Fund under Decision No.764/QD-TTg dated August 24, 1998 of the Prime Minister shall be transferred into the Export Support Fund's account.
B. SPECIFIC PROVISIONS
I. THE REVENUES FOR THE EXPORT SUPPORT FUND
1.The revenue from import-export goods price differences:
1.1. Principles for the calculation of price differences:
a/ For import goods, it shall be the difference between the domestic selling prices accepted by the market and the cost prices of the import goods, including the import prices with freight, insurance charges to the port of import, import tax and other taxes as prescribed by law.
For goods subject to the import tax, the above-mentioned cost prices of import goods shall be determined with the import tax calculation prices, import tax and other taxes as prescribed by law.
b/ For export goods, it shall be the difference between the actual export prices (the FOB prices) and the cost prices of export goods, including the actual buying prices, export tax prescribed by law and domestic circulation expenses.
For goods subject to the export tax, the above-mentioned cost prices of export goods shall be determined with the export tax calculation prices and the export tax.
c/ The amount of goods for collection of the price difference is the amount of goods actually exported or imported as written in the bill of lading in conformity with the customs declaration.
d/ The applicable time for the collection of price differences: shall comply with decisions of the competent agencies. Basing themselves on the time of registration of the customs declarations, enterprises shall remit the said difference amounts according to regulations.
e/ The remittable price difference amount shall not exceed 60% of the total actual price difference, for both import and export goods. This remittable amount shall be determined in percentage for each goods category;
- For import goods, it shall be the percentage between the remittable price difference and the actual import price, including the overseas freight and insurance charge to the port of import.
- For export goods, it shall be the percentage between the remittable price difference and the actual export price at the port of export, excluding the costs arising outside the country.
1.2. Goods which are not subject to the price difference remittance include: goods exported from or imported into the export-processing zones; equipment, supplies and goods imported under the Law on Foreign Investment in Vietnam; goods exported or imported as samples, for advertisements, exhibitions or fairs; refundable and non-refundable aid goods; goods being gifts; goods and luggage of passengers on entry and exit.
1.3. According to the stipulations of the Prime Minister, the Government Pricing Committee shall assume the prime responsibility and coordinate with the Finance Ministry, the Trade Ministry, the goods category-management agencies and the People's Committees of the provinces and centrally-run cities in monitoring the price situation fluctuations at home and abroad, detecting the price differences of import and/or export goods, proposing lists of goods, percentages and time and submitting them to the Prime Minister for deciding the collection of price differences.
1.4. Enterprises having goods items subject to the remittance of price differences shall have to remit them into the State budget through the Export Support Fund's account at the State Treasury.
2. The fees collected as from October 12, 1999 including:
- The import-export quota-bidding fee.
- The import-export quota-granting fee.
- The licensing fee for the establishment and operation of representative offices of foreign organizations in Vietnam, as well as the opening of branches of foreign companies in Vietnam.
- The fee for the granting of certificates of goods’ origin.
The agencies functioned to collect the above-mentioned fees shall enjoy a remuneration amount, which represents at most 10% (ten per cent) of the actually collected fee amounts before remitting them into the State budget, in order to spend on the fee collection in accordance with the stipulations of the Finance Ministry's Circular No.54/1999/TT-BTC of May 10, 1999 which guides the implementation of the Government's Decree No.04/1999/ND-CP of January 30, 1999 on charges and fees belonging to the State budget. The remaining amount shall be remitted into the State budget through the Export Support Fund's account at the State Treasury.
3. For the amounts contributed by importing exporting enterprises for goods items with import-export price differences which have not yet been collected, the Finance Ministry and the Trade Ministry shall coordinate with the Government Pricing Committee in determining, on the basis of the market price of each goods item in each period the price difference and contribution level to be notified to enterprises for implementation.
4. The revenues from other sources by the Prime Minister's decisions.
The above-mentioned revenues, when arising, shall be wholly remitted into the State budget through the Export Support Fund's account at the State Treasury.
5. In addition to the above revenues, the Finance Ministry, basing itself on the revenue-expenditure task and plan of the Export Support Fund as well as the Fund's balance carried forward to the subsequent year and after consulting the Ministry of Planning and Investment, shall elaborate and submit to the Government a plan on the level of supplement to the Export Support Fund, to be included in the annual State budget estimate.
II. CONTENTS OF THE USE AND MANAGEMENT OF THE EXPORT SUPPORT FUND
1.Contents of the use of the Export Support Fund:
a/ Providing full or partial support for interests on bank loans for importing-exporting enterprises to purchase export agricultural products at the floor prices or the prices securing the producers' business set by the Prime Minister.
b/ Providing full or partial support for differences between the short-term loan interest rates of commercial banks and the preferential interest rates for importing-exporting enterprises to purchase agricultural products for export under the Prime Minister's direction.
c/ Providing full or partial support for interests on bank loans for enterprises performing the task of reserve for circulation under the Prime Minister's direction.
d/ Providing full or partial support for differences between the short-term loan interest rates of commercial banks and the preferential interest rates for importing-exporting enterprises to purchase, process and directly export seasonal agricultural products, under the Prime Minister's direction.
e/ Providing definite financial support for a number of export goods items that suffer from temporary losses or financial difficulties due to their low competitiveness or objective risks, in the following cases:
+ Goods exported for the first time.
+ Goods exported to the newly-sought and unstable markets.
+ Goods already purchased but not yet exported due to the sudden fall in world prices.
+ Goods for direct export suffering from temporary losses in production due to their low competitiveness as the result of newly mobilized investments.
f/ Providing partial support for importing-exporting enterprises which have made contributions to the Export Support Fund (remitted the import-export price differences as stipulated at Point 1, Section I of this Circular) and which are now facing financial difficulties due to the market price fluctuations.
g/ Reward for export-market search and expansion, new goods items exported for the first time; the export of high-quality goods recognized and certified by international organizations; the export of goods made largely of domestic raw materials and by domestic labor, for achievement of high and efficient export value.
h/ Providing other supports under the Prime Minister's decisions.
2. Principles and procedures for support consideration:
a/ For cases where the Prime Minister decides the concrete levels of support for enterprises, the Finance Ministry shall provide financial support for such enterprises.
b/ For cases where the Government or the Prime Minister decides the support undertakings, the Finance Ministry shall assume the prime responsibility and coordinate with the Government Pricing Committee and the Trade Ministry (depending on the above-mentioned expenditure contents) as well as the relevant branches to consider and define the concrete support levels as directed or report them to the Prime Minister for decision.
c/ For cases mentioned in Article 4 of Decision No.195/1999/QD-TTg and Point 1, Section II of this Circular: Basing itself on the proposals of enterprises and opinions of the goods category-management agencies (the ministries and provincial/municipal People's Committees), the Finance Ministry shall assume the prime responsibility together with the Government Pricing Committee and the Trade Ministry (depending on the expenditure contents) to determine goods items that need the support as well as the support mode, level and duration and report them to the Prime Minister for decision.
After obtaining decisions from the Prime Minister, the Finance Ministry shall coordinate with the Trade Ministry and the Government Pricing Committee (depending on the expenditure contents) in evaluating the dossiers and data to consider the support. On the basis of the evaluation results (the minutes on the inter-ministerial working sessions of experts) as well as opinions of the Government Pricing Committee and the Trade Ministry (depending on the expenditure contents), the Finance Minister shall decide the supports spendings from the Export Support Fund.
d/ Procedures and dossier for consideration:
For cases of support stipulated in Clauses a, b, c and d, Point 1, Section II:
- The list of unsold goods, which are warehoused and ex-warehoused and need support during the support period.
- The lists of capital loan contracts, receipts of interests collection by the banks, list of the banks' debts at different moments with the banks' certification for the purchase, temporary reserve or seasonal reserve of the supported goods items.
On the basis of the above-mentioned dossiers and documents, the Finance Ministry (the Enterprise Finance Department) shall assume the prime responsibility together with the relevant ministries and branches to organize the evaluation so as to report such to the Finance Minister for consideration and decision of the concrete support levels for enterprises.
For cases of support stipulated in Clauses e and f, Point 1, Section II:
- The report on the production and import/export situation by the time of proposing the support and evaluation of the enterprise's situation.
- Other reports and vouchers related to the contents and nature of each support item.
- For cases of rewarding export stipulated in Clause g, Point 1, Section II:
The Trade Minister shall assume the prime responsibility and coordinate with the Finance Ministry in organizing the reward consideration and issuing decisions on rewarding the qualified exporting enterprises as stipulated in Clause g, Point 1, Section II of this Circular.
e/ The procedures for expenditures from the Export Support Fund: On the basis of the Prime Minister's and the Finance Minister's decisions on support for units and the Trade Minister's decisions on rewarding the qualified exporting enterprises as prescribed, the Finance Ministry shall fill in the procedures for expenditures from the Export Support Fund for enterprises.
III. SETTLEMENT OF THE USE OF THE EXPORT SUPPORT FUND
Annually, the Trade Ministry shall have to synthesize the expenditures on export rewards; the Finance Ministry shall synthesize and take responsibility for the settlement of revenues and expenditures of the Export Support Fund so as to have a basis for reporting to the Prime Minister on the results of the Fun's operations. Where the Export Support Fund is not used up within a year, the Fund's balance shall be carried forward to the subsequent year.
C. ORGANIZATION OF IMPLEMENTATION
On the basis of the provisions at Article of the Prime Minister's Decision No.195/1999/QD-TTg of September 27, 1999, to ensure the proper implementation of the Prime Minister's Decision, in addition to the provisions of this Circular, importing-exporting enterprises shall have to comply with guidances of the following ministries and branches:
1. The Trade Ministry's decisions on rewarding the qualified exporting enterprises as stipulated in Clause g, Point 1, Section II of this Circular.
2. The Government Pricing Committee's guidance on the collection of price differences and list of goods, percentages and time of collection... for import-export goods; guidance on the reduction and exemption of price differences for goods items other than those exempt from the price difference collection stipulated in Article 3 of Decision No.195/1999/QD-TTg.
3. The guidance of the goods category management ministries and the People's Committees of the provinces and centrally-run cities in the elaboration of the export strategy for each goods item as well as the export capability and conditions in each period, thus boosting the export, expanding the market, raising the competitiveness of Vietnams export goods, ensuring the import and export's efficiency, increasing the State budget revenues and at the same time minimizing risks in the course of import and export.
This Circular takes effect from the effective date of the Prime Minister's Decision No.195/1999/QD-TTg of September 27, 1999. All the previous regulations contrary to the provisions of this Circular are now annulled.
In the course of implementation, if any problems arise, agencies and enterprises should promptly report them to the Finance Ministry for amendments and/or supplements suited to the reality so as to ensure that the Export Support Fund is used and managed in an efficient and right manner.
MINISTER OF FINANCE
Nguyen Sinh Hung