JOINT CIRCULAR No. 02/LB-VGCP-GTVT ON THE MANAGEMENT OF FREIGHT RATES AND PORT FEES FOR INLAND WATERWAY TRANSPORT

JOINT CIRCULAR

RESOLUTION NO. 02/LB-VGCP-GTVT OF JANUARY 27, 1995 BY THE STATE COMMITTEE ON PRICES - MINISTRY OF TRANSPORTATION ON THE MANAGEMENT OF WATERWAY FREIGHT RATES AND INLAND WATERWAY PORT FEES 

Pursuant to Decree No. 01/CP dated January 5, 1993 of the Government on the tasks, powers, and organizational structure of the State Committee on Prices.

Pursuant to Decree No. 22/CP dated March 22, 1994 of the Prime Minister on the tasks, powers, and responsibilities for state management of the Ministry of Transportation.

Pursuant to Decree No. 08/CP dated January 30, 1993 of the Government on the establishment of the Vietnam Inland Waterway Transport Corporation.

Implementing Decision No. 137/HĐBT dated April 24, 1992 of the Council of Ministers (now the Government) on price management,

The State Committee on Prices - Ministry of Transportation hereby stipulates the mechanism for state management of waterway freight rates and inland waterway port fees as follows:

I. GENERAL PROVISIONS:

Article 1. The freight rates specified in this Circular include transportation charges and inland waterway port fees for the carriage of goods by inland waterway vessels and services aimed at serving economic and social development, protecting the legitimate interests of parties involved in transportation and inland waterway port operations.

Article 2. Freight rates for waterway transportation and inland waterway port fees are established based on state norms; actual production costs that are reasonable and consistent with domestic and regional market prices during each period.

Article 3. Scope of Application:

3.1 - Transportation charges apply to vessels engaged in the carriage of goods within the country and transit goods on inland waterway routes (including vessel rental fees).

3.2 - Inland waterway port fees (including specialized ports) apply to goods and vessels entering and exiting inland waterway ports operated by domestic organizations and individuals and joint ventures operating under the Law on Foreign Investment in Vietnam.

3.3 - Fees are calculated in Vietnamese dong; in cases where fees are calculated in US dollars, they shall only be applicable to transport units and port operation units permitted to collect foreign currency.

II - AUTHORITY TO REGULATE WATERWAY FREIGHT RATES AND INLAND WATERWAY PORT FEES:

Article 5. The State Committee on Prices approves and guides the following types of freight rates:

5.1 - Transportation charges for goods from budgetary funds for disaster relief and transit goods through Vietnam (including vessel rental fees).

5.2 - Various types of fees: tonnage fees, procedural fees, pilotage fees.

5.3 - Establish a framework for freight rates for large-volume goods that affect production and people's livelihoods.

Article 6. The Ministry of Transportation delegates authority to the Vietnam Inland Waterway Transport Corporation:

6.1 - Direct and guide transport enterprises and port operators (including specialized ports) to implement the management mechanism for freight rates and the levels set by the state.

6.2 - Guide transport enterprises and port operators to develop plans, review, and consolidate proposals for approval by the State Committee on Prices of the types of freight rates stipulated in Article 5 of this Circular after reporting and seeking opinions from the Ministry of Transportation.

6.3 - Announce and approve various types of inland waterway port fees including bridge and wharf fees, cargo handling fees, warehouse rental fees, loading and unloading fees, compensation and penalty fees, and support fees for river vessels.

Article 7. Directors of transport enterprises and port business operations on inland waterways:

7.1 - Organize the implementation of the tariff management mechanism and tariff levels prescribed by the State strictly and comprehensively.

7.2 - Develop plans for various types of transport tariffs (as stipulated in Article 5) and inland waterway port tariffs (as stipulated in Clause 6.3) to be reviewed by the Vietnam Inland Waterways Administration before submission to the Ministry of Transport and the Government Price Management Board for approval and publication within their respective jurisdictions.

7.3 - For goods with large transportation volumes affecting production and people's livelihoods, based on the price framework guidelines of the Government Price Management Board, transport enterprises shall negotiate specific transport tariffs within the State's price framework with the consignors.

7.4 - Organize the registration of prices and negotiate with customers regarding tariff types outside those specified in Clauses 1 and 2 of Article 5 and Point 3 of Section 6 of this Circular.

III- REGISTRATION AND NEGOTIATION OF TRANSPORT AND INLAND WATERWAY PORT TARIFFS:

Article 8. Registration of transport and inland waterway port tariffs:

8.1 - Business units engaged in transport and inland waterway ports with large volumes of goods, concentrated areas, or clusters of ports in regions must register tariffs outside those stipulated in Articles 5 and 6.3 with the Vietnam Inland Waterways Administration, the Ministry of Transport, and the Government Price Management Board.

- Enterprises under the management of local authorities and sectors, in addition to registering prices with the aforementioned agencies, must also register prices with local price management agencies (provincial or centrally governed city).

8.2 - The State price management agency does not review tariff types subject to registration.

8.3 - The registration dossier for transport and inland waterway port tariffs includes:

- Tariff schedules for transport and inland waterway ports.

- An explanatory statement on the factors forming the tariffs, production costs, other influencing factors, and calculation methods.

- Current transport and inland waterway port tariffs (prior to the enterprise's price registration period).

8.4 - Enterprises may adjust registered prices and tariffs by up to 10% increase or decrease. If the adjustment exceeds this ratio, enterprises must re-register. The re-registration dossier only needs to clarify the changes and reasons for the change compared to the previously registered level.

8.5 - In cases where it is deemed necessary, the State price management agency, together with the supervisory agency, will conduct inspections of production costs and factors forming the tariffs.

Article 9. Negotiation of transport and inland waterway port tariffs.

9.1 - When there is a dispute over transport and inland waterway port tariffs, one of the disputing parties has the right to request the competent authority to organize tariff negotiations. The leading body for negotiation is as follows:

- The Vietnam Inland Waterways Administration leads the negotiation (with participation from the Government Price Management Board) when the disputing parties are under the management of the Vietnam Inland Waterways Administration.

- The local price management agency leads the negotiation when the disputing parties are managed by the same locality.

- The Government Price Management Board leads the negotiation (with participation from the Vietnam Inland Waterways Administration) when the disputing parties do not fall into the two cases above.

9.2 - In cases where tariff negotiations have been organized but the parties still cannot agree on the tariff level, the leading negotiation body decides the tariff level to promptly meet the requirements of the enterprises.

If necessary, renegotiate the tariffs after a certain period of implementation.

IV. OTHER PROVISIONS

Article 10. The Government Price Board shall coordinate with the Vietnam Inland Waterway Administration to conduct inspections and checks on the implementation of inland waterway transport tariffs and port tariffs.

Article 11. Thirty days prior to the effective date of the tariffs, transport enterprises and inland waterway ports shall notify relevant authorities and simultaneously report to the Government Price Board, the Vietnam Inland Waterway Administration, and local management agencies (provinces and centrally governed cities).

Article 12. The directors of transport enterprises and inland waterway port operating businesses shall implement regular and ad hoc reporting systems to the Vietnam Inland Waterway Administration regarding the implementation of tariffs within their management. The Vietnam Inland Waterway Administration shall compile these reports and submit them to the Ministry of Transport and the Government Price Board. Reporting deadlines are as follows:

- Enterprises shall submit reports to the Administration: Regular semi-annual reports before July 15th, and regular annual reports before January 30th of the following year, according to the guidelines provided by the Vietnam Inland Waterway Administration.

- The Vietnam Inland Waterway Administration shall submit reports to the Ministry of Transport and the Government Price Board: Semi-annual regular reports before July 30th, and annual regular reports before February 15th of the following year.

- Ad hoc reports shall only be implemented in cases where price management agencies or higher-level supervisory agencies require them, or when there are sudden changes in business operations that directly affect the current tariff system.

V. IMPLEMENTATION PROVISIONS

Article 13. The provisions of this Circular shall take effect from the date of signature. Previous regulations concerning the management and guidance mechanisms for inland waterway transport tariffs and port tariffs that conflict with this Circular are hereby abolished.

Article 14. During the implementation process, inland waterway transport businesses and inland waterway port operating businesses have the responsibility to promptly reflect any emerging issues requiring supplementation or modification to the Vietnam Inland Waterway Administration. The Administration will consolidate these based on the authority provisions set out in this Circular. The Administration will consider and process proposals to adjust and modify them appropriately in coordination with the Government Price Board.