Circular No. 08/2017/TT-BTC guiding the management and use of environmental remediation and restoration bonds for mineral extraction activities at the Environmental Protection Fund.

CIRCULAR

Guidelines for managing and using environmental protection funds for rehabilitation and restoration of the environment in mineral extraction activities

 for the rehabilitation and restoration of the environment in mineral extraction activities

at the Environmental Protection Fund

          Pursuant to the Law on Environmental Protection dated June 23, 2014;

          Pursuant to Decree No. 19/2015/NĐ-CP dated February 14, 2015 of the Government detailing the implementation of certain provisions of the Law on Environmental Protection;

          Pursuant to Decree No. 215/2013/NĐ-CP dated November 23, 2013 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

          Considering the proposal of the Director of the Department of Financial Institutions and Financial Organizations;

          The Minister of Finance hereby issues this Circular guiding the management and use of environmental protection funds for rehabilitation and restoration of the environment in mineral extraction activities at the Environmental Protection Fund.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the management and use of environmental protection funds for rehabilitation and restoration of the environment in mineral extraction activities at the Environmental Protection Fund.

Article 2. Applicability

1. Local Environmental Protection Funds are established by People's Committees of provinces and centrally-run cities, and the Vietnam Environmental Protection Fund (under the Ministry of Natural Resources and Environment) is established by the Prime Minister (hereinafter referred to as the Environmental Protection Fund).

2. Organizations and individuals shall perform the deposit of funds for rehabilitation and restoration of the environment in mineral extraction activities at the Environmental Protection Fund.

3. Other agencies, organizations, and individuals related as provided by law.

Article 3. Explanation of Terms

1. Depositor: Organizations and individuals engaged in mineral extraction must deposit funds for rehabilitation and restoration of the environment in mineral extraction activities at the Environmental Protection Fund in accordance with the law and this Circular.

2. Deposit recipient: The Environment Protection Fund established and operating in accordance with the law and this Circular.

3. Deposit funds: This is the amount of money deposited by the depositor into the recipient to ensure the responsibility for implementing environmental rehabilitation and restoration projects in mineral extraction activities in accordance with the law and this Circular.

Deposit currency, deposit amount, deposit method, deposit time, documentation, and procedures for deposit shall be implemented in accordance with Decree No. 19/2015/NĐ-CP dated February 14, 2015 of the Government detailing the implementation of certain provisions of the Law on Environmental Protection and Circular No. 38/2015/TT-BTNMT dated June 30, 2015 of the Ministry of Natural Resources and Environment on environmental restoration and rehabilitation in mineral exploration activities and other legal regulatory documents replacing, amending, or supplementing.

The currency of deposit, the amount of deposit, the method of deposit, the time of deposit, the documents, and procedures for deposit shall be implemented in accordance with Decree No. 19/2015/NĐ-CP dated February 14, 2015 of the Government detailing the implementation of certain provisions of the Law on Environmental Protection and Circular No. 38/2015/TT-BTNMT dated June 30, 2015 of the Ministry of Natural Resources and Environment on environmental rehabilitation and restoration in mineral extraction activities and other legal documents replacing or amending and supplementing (if any).

PART II

1. Deposits must be managed and used on the principle of preserving the principal, paying interest on deposits in accordance with the regulations, and self-balancing to cover management costs for deposit receipt activities of the deposit recipient.

Article 5. Principles for Managing and Using Security Deposits

2. The management and use of deposits must be carried out openly and transparently, complying with the provisions of this Circular and related legal regulatory documents.

1. The deposit recipient must open a separate account to track deposits.

Article 6. Management of Security Deposits

2. Deposits must be placed in commercial banks with good quality operations according to the credit rating of the State Bank of Vietnam, following the principle of ensuring preservation of the principal, covering interest payment costs for the depositor, and management costs for deposit receipt activities.

2. Deposit funds shall be deposited by the recipient at commercial banks with good quality of operation according to the credit rating of the State Bank of Vietnam, in principle ensuring the preservation of the principal, compensating interest payment costs for the depositor, and management costs for the deposit receiving activity.

4. Deposit interest rate:

a) The deposit interest rate is adjusted based on the lending interest rate of the deposit recipient and applied to the entire balance of deposits;

b) In case the deposit recipient does not carry out lending activities, the deposit interest rate is determined based on the lending interest rate of the Vietnam Environment Protection Fund at the time of deposit receipt;

c) In case the deposit recipient applies multiple lending interest rates for different categories, the interest on deposit paid by the deposit recipient to the depositor is calculated based on the arithmetic average of those lending interest rates;

c) In case the recipient applies different interest rates for loans to different categories, the interest rate on deposit funds that the recipient must pay to the depositor shall be calculated based on the arithmetic average of those loan interest rates;

d) The depositor may only withdraw interest once after obtaining a certificate confirming the completion of all contents of the environmental rehabilitation and restoration plan or supplementary environmental rehabilitation and restoration plan as stipulated in Clause 4, Article 8 of Decree No. 19/2015/NĐ-CP and other legal documents replacing or amending and supplementing (if any).

1. The deposit recipient may not use deposits for lending or other purposes outside the provisions of this Circular.

Article 7. Use of Deposit Money

2. Use of interest from deposit placement:

a) All interest earned from deposit placement at commercial banks is recorded as business operation revenue of the deposit recipient;

b) All interest paid to the depositor is recorded as business operation expenses of the deposit recipient.

3. Refund of deposits:

a) The refund of deposits is carried out in accordance with Clause 5, Article 8 of Decree No. 19/2015/NĐ-CP dated February 14, 2015 of the Government detailing the implementation of certain provisions of the Law on Environmental Protection and Article 15 of Circular No. 38/2015/TT-BTNMT dated June 30, 2015 of the Ministry of Natural Resources and Environment on environmental restoration and rehabilitation in mineral exploration activities and other legal regulatory documents replacing, amending, or supplementing (if applicable);

a) The refund of deposit funds shall be carried out in accordance with Clause 5, Article 8 of Decree No. 19/2015/NĐ-CP dated February 14, 2015 of the Government detailing the implementation of certain provisions of the Law on Environmental Protection and Article 15 of Circular No. 38/2015/TT-BTNMT dated June 30, 2015 of the Ministry of Natural Resources and Environment on environmental rehabilitation and restoration in mineral extraction activities and other legal documents replacing or amending and supplementing (if any);

b) The depositor must submit a withdrawal plan for deposit funds to the recipient three (03) months before the date when the recipient is required to refund deposit funds in accordance with Clause 5, Article 8 of Decree No. 19/2015/NĐ-CP and other legal documents replacing or amending and supplementing (if any).

Chapter III

RESPONSIBILITIES OF THE AUTHORITIES

Article 8. Responsibilities of the Receiving Party for Deposit

1. Notify competent authorities approving environmental rehabilitation and restoration plans or supplementary environmental rehabilitation and restoration plans in cases where the depositor does not fully replenish deposit funds as prescribed.

2. Urge the depositor to make deposits for environmental rehabilitation and restoration in accordance with the prescribed deadlines; propose competent authorities to issue decisions imposing penalties for late deposit payments in accordance with current laws.

3. Manage and use deposit funds in accordance with the law and this Circular. Report quarterly (before the 25th day of the first month of each quarter) and annually (before March 31 of the following year) to the People's Committee of the province or centrally-run city, the Ministry of Natural Resources and Environment, and the Ministry of Finance on the management and use of deposit funds in accordance with the annex attached to this Circular.

4. Establish internal regulations on the management and use of deposits in accordance with this Circular and related laws.

5. Provide information and ad hoc reports on the management and use of the deposit upon request from competent authorities.

Article 9. Responsibilities of the Depositing Party

The depositor shall perform deposit and other tasks as prescribed in this Circular and related laws.

Article 10. Responsibilities of the Ministry of Finance

1. Take the lead, coordinate with the Ministry of Natural Resources and Environment and relevant units to amend and supplement regulations related to the management and use of deposit funds at the Environmental Protection Funds in accordance with this Circular (if necessary).

2. Coordinate with the Ministry of Natural Resources and Environment and related units to guide Environmental Protection Funds and related units to implement the provisions of this Circular.

Chapter IV

IMPLEMENTATION

Article 11. Transitional Provisions

For cases where the depositor has made deposits before the effective date of Decree No. 19/2015/NĐ-CP dated February 14, 2015 of the Government detailing the implementation of certain provisions of the Law on Environmental Protection:

1. From March 31, 2015 and earlier: the depositor shall enjoy interest rates equivalent to the interest rates on demand deposits at commercial banks for the balance of deposit funds as stipulated in Decision No. 71/2008/QĐ-TTg dated May 29, 2008 and Decision No. 18/2013/QĐ-TTg dated March 29, 2013 of the Prime Minister on environmental rehabilitation and restoration for mineral extraction activities.

2. From April 1, 2015: the depositing party shall enjoy interest rates equivalent to the lending interest rate of the receiving party for the balance of the deposit as prescribed in Clause 4, Article 6 of this Circular.

Article 12. Implementation Provisions

1. This Circular takes effect 45 days from the date of issuance.

2. The Director of the Office of the Ministry of Finance, the Heads of the Department of Banking and Financial Institutions, the Heads of relevant units under the Ministry of Finance, the Vietnam Environmental Protection Fund, local Environmental Protection Funds, and organizations and individuals concerned are responsible for implementing this Circular./.