Circular No. 05/1998/TT-BTC guides procedures for depositing and managing deposits or guarantees for mineral exploration permits. The document stipulates that the deposit amount is 25% of the estimated cost of exploration for the first year and will be refunded after six months if the exploration work proceeds according to schedule, while also detailing the procedures for deposit submission and refund.
Scope of application
Organizations and individuals granted mineral exploration permits with validity periods of six months or more, except those organizations and individuals holding mineral exploration permits operated with direct state investment funds.
Key points
- Organizations and individuals conducting mineral exploration must submit a deposit or guarantee of 25% of the estimated cost of exploration for the first year before the permit is issued.
- After six months from the date the permit becomes effective, if the exploration work proceeds according to schedule, the organization or individual will receive back the deposit or guarantee.
- During the period of deposit or guarantee, the deposit earns interest at the rate applicable to non-term deposits at banks or treasuries.
- If the exploration work does not proceed according to schedule and the permit is revoked, the deposit or guarantee will be paid into the state budget.
- The authority issuing the permit has the power to require organizations and individuals to submit, refund, and pay into the state budget the deposit or guarantee.
🌐 Social impact of this document
- Positive impact: Reduces financial risk for enterprises through the possibility of receiving back the deposit after six months if exploration proceeds according to schedule.
- Negative impact: Increases initial costs for enterprises due to the need to submit a deposit, along with the burden of managing and monitoring the deposit.
❓ Frequently asked questions
What is the amount of the deposit?
The deposit amount is 25% of the estimated cost of exploration for the first year.
When is the deposit refunded?
After six months from the date the permit becomes effective, if the exploration work proceeds according to schedule, the organization or individual will receive back the deposit or guarantee.
What happens to the deposit if the schedule is not met?
The deposit or guarantee will be paid into the state budget.
Which entity has the authority to require the submission of the deposit?
The authority issuing the mineral exploration permit is the entity with the authority to require submission, refund, and payment into the state budget of the deposit or guarantee.
What interest rate applies to the deposit?
During the period of deposit or guarantee, the deposit earns interest at the rate applicable to non-term deposits at banks or treasuries.
Full text
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MINISTRY OF FINANCE |
SOCIALIST REPUBLIC OF VIETNAM |
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Number: 05/1998/TT-BTC |
Hanoi, January 9, 1998 |
CIRCULAR
OF THE MINISTRY OF FINANCE NUMBER 05/1998/TT-BTC DATED JANUARY 9, 1998 GUIDING PROCEDURES FOR PAYMENT AND MANAGEMENT OF DEPOSITS OR GUARANTEES FOR MINERAL EXPLORATION LICENSES
Pursuant to Article 27, Chapter 5 of the Law on Minerals of the Socialist Republic of Vietnam;
Pursuant to Article 30, Chapter VI of Decree No. 68/CP dated November 1, 1996 of the Government detailing the implementation of the Law on Minerals;
The Ministry of Finance guides the procedures for payment and management of deposits or guarantees for mineral exploration licenses as follows:
This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.
1. Scope and applicability: All organizations and individuals granted mineral exploration licenses (excluding mineral exploration activities within the oil and gas sector and other natural water resources regulated by other legal documents), with validity periods of six months or more, except those organizations and individuals operating with direct state investment funds, must pay deposits or guarantees.
2. Organizations and individuals conducting mineral exploration may choose to deposit at State Treasury or guarantee at a bank (State Bank of Vietnam or foreign banks permitted to operate in Vietnam).
The amount of deposit or guarantee shall be 25% of the estimated cost of the first year's exploration work and shall be paid once before the issuance of the mineral exploration license.
After six months from the date the exploration license becomes effective, if exploration activities are carried out according to schedule and plan, the organization or individual has the right to reclaim the deposit or guarantee.
During the period of deposit or guarantee, interest shall be earned at the rate applicable to non-term deposits of banks or the State Treasury.
The authority issuing the mineral exploration license is the competent authority to request payment, refund, and remittance to the state budget of the deposit or guarantee.
II. SPECIFIC PROVISIONS
1. Procedures for payment of deposit or guarantee
- When the mineral exploration project is approved, prior to issuing the exploration license, the licensing authority must notify the applicant of the amount of deposit or guarantee. - Based on the written request for payment of deposit or guarantee from the competent authority, the organization or individual must pay the deposit at the State Treasury or guarantee at a bank as required by the exploration organization or individual, in accordance with the prescribed amount. The State Treasury and the bank have the responsibility to open accounts to track details for each license, each organization, and each individual, and to process confirmation of the deposit or guarantee payment.
2. Procedures for refund of deposit or guarantee.
- After six months from the date the exploration license becomes effective, if exploration activities are carried out according to schedule and plan, the organization or individual can reclaim the deposit or guarantee. Based on the written authorization from the competent authority to refund the deposit or guarantee, the State Treasury and the bank will process the refund of the deposit or guarantee to the organization or individual.
- If, after six months from the date the exploration license becomes effective, exploration activities are not carried out and the exploration license is revoked, the deposit or guarantee must be remitted to the state budget.
- The Ministry of Finance authorizes the competent authority issuing the license to issue a notice for remittance to the state budget. The State Treasury and the bank will process the remittance of the deposit or guarantee to the state budget based on the notice from the competent authority.
III. IMPLEMENTATION
This Circular takes effect fifteen days from the date of signature; all previous regulations contrary to this Circular are no longer in force.
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Le Thi Bang Tam (Signed) |
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