Circular No. 04-BTC/TT guiding the issuance of rewards to individuals who discover and apprehend smuggled goods

CIRCULAR OF THE MINISTRY OF FINANCE

Guidelines for awarding bonuses to individuals who have contributed to detecting and apprehending smuggled goods
Time has seen the Chairman of the Council of Ministers issue directives on several policies and measures to strengthen anti-smuggling efforts (Directives No. 133, 230, 231, 388, 405, etc.), including provisions regarding the rewarding of those who have made contributions in detecting and apprehending smuggled goods.

To ensure that the process of reviewing and distributing bonuses for anti-smuggling efforts is uniformly implemented nationwide, following a report and solicitation of opinions from the Chairman of the Council of Ministers at a meeting held on December 24, 1990, chaired by Comrade Vo Van Kiet, the Ministry of Finance provides specific guidelines on the procedures for reviewing and distributing bonuses for anti-smuggling efforts as stipulated in the Chairman's Directives, as follows:

I - ELIGIBILITY FOR AWARDS

According to the aforementioned directives, organizations or individuals who have contributed to detecting, reporting, tracking down, and apprehending smuggled goods, in addition to being recognized with commendations under the general state system, will also be eligible for monetary rewards based on their individual efforts and the outcomes of the smuggling cases they handle. Thus, special task forces against smuggling, market management teams, tax evasion inspection teams, border guard units, customs, police, prosecution services, and other organizations or individuals who detect and apprehend various types of smuggled goods as specified in the Chairman's Directives shall be considered for awards according to the guidelines set forth in this Circular.

II - BASIS FOR CALCULATING AWARDS AND AMOUNTS OF AWARDS

1. Basis for calculating awards:

a) Bonuses for anti-smuggling are calculated based on:

The amount obtained from selling seized goods, contraband items, and transportation vehicles after deducting transportation, loading/unloading, and storage costs associated with the seized goods and contraband items.

Fines collected (including fines for smuggling, hoarding, transporting contraband goods, and illegal business operations).

b) Not eligible for bonuses are:

Taxes: including back taxes, overdue taxes, and additional taxes discovered through anti-smuggling inspections.

Late payment penalties for taxes.

2. Proportion of bonuses:

In each smuggling case, the proportion of bonuses is as follows:

a) For six categories of goods: smuggled alcohol, beer, tobacco, fireworks, illegally traded precious metals, and fuel, a bonus of 30% of the proceeds from selling seized goods and contraband items and fines will be awarded.

b) For other categories of goods, a bonus of 15% of the proceeds from selling seized goods and contraband items and fines will be awarded.

After the bonuses are distributed, the remaining funds must be promptly and fully deposited into the National Treasury at the location where the smuggling was detected.

c) Specifically, for cases involving smuggling of various types of coins, the seizing authority shall record the confiscation in a report and immediately inform the State Reserve Agency of the Ministry of Finance and the State Planning Commission about the quantity, type, quality, and local market value of the coins, as well as their current storage location (attached with the seizure and handling report). The Ministry of Finance will coordinate with the State Reserve Agency, the State Planning Commission, and the State Price Control Commission to determine the value of each type of coin based on the average market price at the time of seizure. Following the valuation, the Ministry of Finance will notify the State Reserve Agency to deposit the confiscated coins into the national reserve.

The Ministry of Finance will advance funds to the State Reserve Agency to cover the bonuses for the seizing authority upon delivery of the coins, based on 15% of the actual value of the confiscated coins (based on the actual quantity, weight, type of coins delivered and received, and the price announced in writing by the Ministry of Finance). This bonus (15%) will be used to cover expenses related to the seizure, transportation, storage, investigation, and handling of the coin smuggling case. The remainder will temporarily be set aside as a bonus for those who contributed to the detection, tracking, seizure, investigation, and handling of the coin smuggling case.

Once the State Reserve Agency reports the actual quantity, weight, and value of the coins deposited into the reserve, and the seizing authority reports the origin of the smuggled coins, the Ministry of Finance will then review and distribute the remaining bonus (15%) based on the actual value of the coins deposited into the reserve, to be paid to the seizing authority (through the State Reserve Agency) for further distribution to those who contributed to the detection, tracking, seizure, investigation, and handling of the coin smuggling case.

When the coins are sold (upon orders from the Chairman of the Council of Ministers), the State Reserve Agency is responsible for deducting transportation, storage, and bonus expenses, and transferring 50% of the remaining proceeds to the local government budget (province or district) where the coins were seized. The remaining 50% will be transferred to the central government budget.

3. Distribution and Use of Bonuses:

In accordance with the spirit of the Council of Ministers' directives mentioned above and the instructions of the Chairman of the Council of Ministers, the bonuses extracted from the Special Anti-Smuggling Task Forces, Market Management Teams, Tax Evasion Inspection Teams, Border Guard Units, Customs, Police, Prosecution Services, etc., will only be partially allocated for individual awards, with the majority intended for purchasing equipment and means of transportation for inspection and control forces to enhance the effectiveness of anti-smuggling efforts. Therefore, the total bonus extracted from each case will be distributed as follows:

a) 20% of the extracted amount will be submitted to the immediate superior supervisory agency for rewarding indirect contributors to the detection, seizure, and handling of violations and for use in purchasing equipment and directing the pursuit of violations.

b) 30% will establish a fund for specialized teams directly involved in the seizure and handling of smuggled goods, such as Special Anti-Smuggling Task Forces, Market Management Teams, Tax Evasion Inspection Teams, Border Guard Units, Customs, Police, etc., to be used for rewarding team members (in addition to their regular salaries and travel expenses) and for purchasing communication equipment, transportation, and work tools to organize investigations, pursuits, and handling of violations.

b) Thirty percent to establish funds for specialized teams directly responsible for apprehending and handling contraband such as anti-smuggling special forces teams, market management teams, tax revenue inspection teams, border guard teams, customs, police, etc., to be used for rewarding officers within the team (in addition to their salary and travel expenses as stipulated) and for purchasing communication equipment, transportation, and work tools to organize investigations, pursuit, and prosecution of violations.

c) Fifty percent shall be directly awarded to those who report, discover, apprehend the violation or assist state agencies in apprehending and handling such violations.

The maximum reward for each individual belonging to the categories mentioned in points a, b, and c above in one anti-smuggling case shall not exceed 200,000 VND/person/case; and within one month, regardless of the number of smuggling cases discovered, the total reward for each person shall not exceed 500,000 VND/person/month. After rewarding individuals under points b and c, the remaining reward amount will be allocated to the teams' fund to purchase working equipment as stipulated in point b.

III- PRINCIPLES AND PROCEDURES FOR HANDLING AND AWARDS

1. Seizing contraband goods

Each time temporary detention or confiscation of contraband goods occurs, regardless of whether it involves an individual or organization, the competent authority must prepare a record detailing the reasons for temporary detention or confiscation, quantity, weight, type, and quality of the goods or evidence; this record must be signed by the violator or a witness present at the seizure.

The record shall be made in duplicate, with one copy given to the violator and the other transferred to the competent authority for handling.

Contraband goods and evidence must be properly stored to prevent loss or damage. In cases where perishable goods need to be sold immediately while awaiting resolution, the proceeds from the sale shall be temporarily deposited into the temporary detention account of the inspection teams at the bank. The selling price of seized goods and evidence shall be proposed by the Appraisal Council (comprising finance, pricing, taxation, and economic technology sectors) and decided upon by the People's Committee of the locality based on market prices in the area.

2. Handling and award distribution:

Rewards may only be extracted and distributed after the violation has been processed and a Decision on Handling has been issued and implemented. If the party still appeals, rewards can only be extracted and distributed after the competent authority issues a Decision on Handling the appeal. If rewards have already been distributed and the party subsequently appeals, the extraction and distribution of rewards must be recalculated or postponed based on the Decision on Handling the appeal.

Handling of violations must comply with current state regulations regarding the jurisdiction of each level (as stipulated in the Ordinance on Combating Speculation, Smuggling, Counterfeiting, and Illegal Business Operations issued on June 30, 1982; the Ordinance on Administrative Violation Penalties issued on November 30, 1989; the Laws on Income Tax, Special Consumption Tax, and Corporate Income Tax adopted by the Seventh National Assembly at its seventh session on June 30, 1990).

The person signing the Decision on Handling the violation is responsible for:

Relying on current state regulations and the assigned jurisdiction to issue the Decision on Handling the violation.

Deciding on the extraction of rewards and depositing the remaining amount into the Treasury;

Awarding those directly involved in discovering and apprehending the violation and distributing the reward according to the guidance provided in Article 3, Section II above.

The Decision on Extraction of Rewards and the list of units and individuals receiving rewards must be sent to the financial authority at the same level for monitoring, checking, and supervision.

Any organization or individual failing to comply with current regulations, seizing goods and evidence improperly, issuing decisions on handling that violate principles and regulations, awarding and distributing rewards not in accordance with the procedures outlined in this Circular, in addition to disciplinary action, must also compensate for any losses caused by their improper actions.

Official seals such as records of confiscation or temporary detention of illegal goods and evidence; Decisions on Handling violations, receipts for payment and collection of proceeds from the sale of goods and evidence, fines, taxes (if applicable), certificates of awards, ledgers tracking seizures and handling of violations... must be uniformly implemented according to the official seal models guided by the Ministry of Finance.

Inspection teams tasked with combating smuggling must maintain ledgers and records to track the establishment and use of anti-smuggling funds and monthly report the income and expenditure results of the anti-smuggling fund to the financial authority at the same level.

The Ministry of Finance is entrusted by the Prime Minister to oversee the seizure, handling, extraction of rewards, and distribution of rewards for all organizations and individuals participating in anti-smuggling efforts.

This Circular takes effect from the date of issuance and replaces previous guiding provisions of the Ministry of Finance, sectors, and levels concerning the recognition and rewards for those who report, expose, and apprehend smuggling and tax evasion cases. For smuggling cases that have been discovered and handled but not yet rewarded, they should now be evaluated and distributed rewards according to the guidelines in this Circular.

During implementation, if there are difficulties or obstacles, please report to the Ministry of Finance for the Prime Minister to resolve./.