| THE MINISTRY OF FINANCE ------- | SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------- |
| No. 234/2009/TT-BTC | Hanoi, December 09, 2009 |
CIRCULAR
GUIDING THE MECHANISM TO FORM, MANAGE AND USE THE FUND FOR PETROL AND OIL PRICE VALORIZATION UNDER THE GOVERNMENT'S DECREE NO. 84/ 2009/ND-CP OF OCTOBER 15, 2009, ON PETROL AND OIL TRADING
THE MINISTRY OF FINANCE
Pursuant to June 17, 2003 Accounting Law No. 03/2003/QH11 of the National Assembly of the Socialist Republic of Vietnam;
Pursuant to May 10, 2002 Price Ordinance No. 40/2002/PL-UBTVQH10 of the National Assembly Standing Committee;
Pursuant to the Government's Decree No. 118/2008/ND-CP of November 27,2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;
Pursuant to the Government's Decree No. 170/2003/ND-CP of December 25, 2003, detailing the Price Ordinance, and Decree No.75/2008/ND-CP of June 9, 2008, amending and supplementing a number of articles of the Government's Decree No. 170/2003/ND-CP;
Pursuant to the Government's Decree No. 129/2004/ND-CP of December 31, 2004, detailing and guiding a number of articles of the Accounting Law regarding business activities;
Pursuant to the Government's Decree No. 84/2009/ND-CP of October 15, 2009, on petrol and oil trading (below referred to as Decree No. 84/2009/ND-CP);
Considering opinions of the Ministry of Industry and Trade in Official Letter No. 11339/BCT-TTTN of November 10, 2009, on the circular guiding Decree No. 84/2009/ND-CP;
The Ministry of Finance guides the mechanism to form, manage and use the Fund for petrol and oil price valorization under Decree No. 84/2009/ND-CP as follows:
Pursuant to May 10, 2002 Price Ordinance No. 40/2002/PL-UBTVQH10 of the National Assembly Standing Committee;
Pursuant to the Government's Decree No. 118/2008/ND-CP of November 27,2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;
Pursuant to the Government's Decree No. 170/2003/ND-CP of December 25, 2003, detailing the Price Ordinance, and Decree No.75/2008/ND-CP of June 9, 2008, amending and supplementing a number of articles of the Government's Decree No. 170/2003/ND-CP;
Pursuant to the Government's Decree No. 129/2004/ND-CP of December 31, 2004, detailing and guiding a number of articles of the Accounting Law regarding business activities;
Pursuant to the Government's Decree No. 84/2009/ND-CP of October 15, 2009, on petrol and oil trading (below referred to as Decree No. 84/2009/ND-CP);
Considering opinions of the Ministry of Industry and Trade in Official Letter No. 11339/BCT-TTTN of November 10, 2009, on the circular guiding Decree No. 84/2009/ND-CP;
The Ministry of Finance guides the mechanism to form, manage and use the Fund for petrol and oil price valorization under Decree No. 84/2009/ND-CP as follows:
Chapter I
GENERAL PROVISIONS
Article 1. Scope of regulation
This Circular guides the mechanism to form, manage and use the Fund for petrol and oil price valorization (below referred to as the price valorization fund).
Article 2. Subjects of application
This Circular applies to principal traders of petrol and oil under the Commercial Law; Decree No. 84/2009/ND-CP and other relevant legal documents.
This Circular does not apply to traders licensed to import, produce and prepare petrol and oil for their own special use without selling them on the market under law; traders licensed to import petrol and oil under the Investment Law to be used as samples for advertisement or for display in fairs and exhibitions, or as refundable or non-refundable aid; and petrol and oil producers selling petrol and oil to petrol and oil importers.
Article 3. Interpretation of terms
In this Circular, the terms below are construed as follows:
1. Petrol and oil under this Circular include petrol, diesel oil, kerosene and mazut oil.
2. World petrol and oil prices means the trading prices of end-product petrol and oil on the international market announced by Piatt's Singapore.
3. Prime price means the price used to set the petrol or oil retail price, which has the following constituents and is determined as (=) {C1F price plus (+) import duty plus (+) excise tax} multiplied by (x) foreign exchange rate plus (+) business expense norm plus (+) price valorization fund plus (+) pre-tax profit norm plus (+) value-added tax plus (+) petrol and oil charges plus (+) other payable taxes, charges and payments under current law. The prime price is calculated on the average number of days of reserve under Article 22 Decree No. 84/2009/ND-CP.
4. C1F price means the world petrol or oil price plus (+) insurance plus (+) freight for transportation to Vietnamese port;
5. Foreign exchange rate used to calculate the prime price is the average selling rate of US dollar (USD)-Vietnam dong (VND) applied by commercial banks to principal traders in conformity with the number of days of reserve under Article 22 of Decree No. 84/2009/ND-CP.
6. Business expense norm means the expense for domestic circulation of petrol and oil (wholesale and retail expenses) of principal traders (including expenses for general agents and agents) for calculation of the maximum prime price, in which:
- The average expense for retail of petrol, diesel oil and kerosene in the regions nationwide is maximum VND 600/liter;
- The average expense for wholesale of mazut oil in the regions nationwide is maximum VND 400/kg.
- The Ministry of Finance shall announce the adjustment of the above maximum business expense norms suitable to the actual business situation of principal traders in each period.
7. Pre-tax profit norm means principal traders profit from petrol and oil trading at home for calculation of the prime price, which has the maximum level of VND 300/liter or kg. Its adjustment shall be announced by the Ministry of Finance to suit the actual business situation of principal traders in each period.
Actually earned profits depend on business results of traders.
