Circular No. 09/1998/TT-BTC guides the management and use of funds collected from anti-smuggling activities.

CIRCULAR

Guidelines for the management and use of funds collected from anti-smuggling activities

Implementing Resolution No. 85/CP dated July 11, 1997 of the Government on the regular meeting of the Government in June 1997; Directive No. 853/1997/CT-TTg dated October 11, 1997 of the Prime Minister on combating smuggling in the new situation; Announcement No. 158/TB dated December 29, 1997 of the Government Office on the conclusions of Deputy Prime Minister Nguyen Tan Dung regarding measures to combat smuggling at the southwestern border; Circular Joint No. 07/1997/TTLT/BTM-BNV-BTC-TCHQ dated October 21, 1997 of the Ministry of Trade, Ministry of Home Affairs, Ministry of Finance, and General Department of Customs guiding the implementation of anti-smuggling activities and organizing coordinated forces against smuggling, the Ministry of Finance guides the management and use of fines for administrative violations and confiscated smuggled goods as follows:

1. This Circular guides on plans and budgets for national reserve funds; import and export of goods in national reserves; handling losses and damages to goods in national reserves due to deterioration, reduced quality, or loss; establishing, issuing, and implementing economic-technical norms, procedures, and regulations for storing goods in national reserves; signing general contracts, storing goods, warehouse storage, planning the national reserve warehouse system; financial management and budget allocation for national reserves; procedures and steps for exporting national reserves in cash; setting up, managing, and using welfare and incentive funds; protecting state secrets, inspecting, and auditing national reserves.

Article 1. Scope of Application:

The scope of application of this Circular covers all funds collected from anti-smuggling activities seized and processed by anti-smuggling forces at various levels.

2. Revenue from anti-smuggling activities includes:

Fines paid by organizations and individuals involved in smuggling according to decisions on penalties or decisions on appeals (if any) made by competent authorities under the Administrative Violations Handling Decree dated July 6, 1995 and its guiding documents.

Proceeds from the sale of goods, evidence, and means of transportation confiscated in accordance with Circular Joint No. 07-1997/TTLT/BTM-BNV-BTC-TCHQ dated October 21, 1997 of the Ministry of Trade, Ministry of Home Affairs, Ministry of Finance, and General Department of Customs.

3. Recipients eligible for rewards:

Anti-smuggling forces include:

Tax, customs, border guard, home affairs, inspection, market management forces, and other forces assigned tasks to inspect and handle violations related to smuggling according to the law; Forces organized by communes and districts within their authority as stipulated in the Administrative Violations Handling Decree;

Organizations and individuals with outstanding achievements in anti-smuggling activities.

II. CONCENTRATION OF REVENUES:

1. Principles for concentrating revenues:

Funds collected from anti-smuggling activities shall be deposited into a temporary account opened by the financial agency at the State Treasury.

For cases of anti-smuggling activities on the sea in waters belonging to a province or centrally governed city (hereinafter referred to as "province"), the funds collected from anti-smuggling activities shall be deposited into the temporary account of that province. In case of disputes, the place of seizure of smuggled goods shall serve as the basis for resolution.

2. Opening of temporary accounts:

Provincial Departments of Finance and Prices shall open temporary accounts at the provincial State Treasury to collect revenues from anti-smuggling activities conducted by central and provincial forces directly responsible for inspection, detection, seizure, and handling. For cases where inspections, detections, seizures, and handling take place far from the location of the temporary account, the funds collected from anti-smuggling activities shall be temporarily deposited into the district or county State Treasury. The district or county State Treasury shall be responsible for transferring the entire amount to the temporary account of the provincial Department of Finance at the provincial State Treasury.

County Finance Departments shall open temporary accounts at the county State Treasury to collect revenues from anti-smuggling activities conducted by county and commune forces directly responsible for inspection, detection, seizure, and handling. The County Finance Department shall be responsible for opening sub-accounts under the temporary account to separately track revenues from communes for distribution as stipulated in Section III below.

For some communes and towns adjacent to the border where regular anti-smuggling operations are organized, the Chairman of the People's Committee of the county may consider allowing the commune to open a temporary account at the county State Treasury to collect revenues from anti-smuggling activities detected, seized, and handled by commune forces.

Financial agencies at all levels shall be responsible for paying expenses, allocating reward funds for anti-smuggling, and distributing revenues according to the provisions in Section III below.

III. DISTRIBUTION AND USE OF FUNDS COLLECTED FROM ANTI-SMUGGLING ACTIVITIES

1. Basis for determining revenue from anti-smuggling activities for distribution and use:

Revenue from anti-smuggling activities determined for distribution and use shall be based on the following criteria:

Decisions on handling by competent state agencies without appeals within the time prescribed by law.

The actual amount of funds collected from anti-smuggling activities deposited into the temporary account of the financial agency opened at the State Treasury.

2. Distribution of funds collected from anti-smuggling activities:

a. Funds collected from anti-smuggling activities shall be used to reimburse costs such as: investigation, pursuit, verification, unloading, transportation, preservation, testing, organization of sales of confiscated goods and evidence.

The financial agency shall be responsible for reviewing and disbursing anti-smuggling costs in accordance with the prescribed regulations.

b. The remaining total after deducting the aforementioned costs shall allocate 30% for rewarding organizations and individuals with outstanding achievements in anti-smuggling and supplementing funding for anti-smuggling operations by units tasked with detection and handling.

c. The remaining 70% shall be retained in the local budget for purchasing anti-smuggling equipment for local anti-smuggling forces and other purposes as guided in point 3b below. Specifically:

For cases investigated, detected, seized, and handled directly by central and provincial anti-smuggling forces, it shall be retained in the provincial budget.

For cases investigated, detected, seized, and handled directly by county and commune forces, it shall be retained in the county and commune budgets.

3. Use of funds collected from anti-smuggling activities:

a. The amount allocated (30%) for rewards and supplementary funding for organizations and individuals with outstanding achievements in anti-smuggling as mentioned in point 2b above shall be distributed as follows:

30% shall be used for allowances, rewards for organizations and individuals with outstanding achievements in anti-smuggling, and additional costs for anti-smuggling operations such as: publicity, summary costs; Allowances during treatment for officers from various forces injured during investigations and seizures; Hospitalization fees for cases without health insurance coverage.

The maximum bonus for an individual shall not exceed 300,000 VND per case and not more than 1,000,000 VND per person per month. In special cases, due to the complexity and labor-intensive nature of the investigation, arrest, and handling of cases, the heads of units may consider and decide on specific bonus amounts for each case within the framework of the allocated bonus funds.

When a case involves multiple departments of a locality, the head of the unit assigned the task shall be responsible for considering the distribution of the allocated bonus among those units in a transparent and democratic manner, depending on the complexity of the case and the level of participation of each unit.

Sixty percent shall be used for purchasing additional anti-smuggling equipment for the unit.

Heads of units shall be responsible for preparing plans for purchasing supplementary equipment and submitting them to the financial authority at the same level for review. The purchase of equipment for anti-smuggling forces must comply with the current state budget expenditure management system.

Ten percent shall be submitted to the immediate superior authority directing anti-smuggling work throughout the sector to reward coordinating units and fund publicity activities, training sessions, interim reviews, and final summaries. If there is no superior authority, it shall remain with the unit to supplement the funding for purchasing anti-smuggling equipment.

Any unused bonus and supplementary funds for units at the end of the year shall be carried over to the next year for continued use.

b. Seventy percent retained by the locality shall be deposited into the budgets of various levels and used according to the decision of the Chairperson of the People's Committee at each level, focusing on the following objectives:

Purchasing anti-smuggling equipment for anti-smuggling forces in the locality.

Supplementing capital for basic construction projects, social welfare facilities in the area.

Based on specific circumstances and the amount retained in the provincial budget, the Chairperson of the Provincial People's Committee shall decide to provide additional support to districts and counties in organizing anti-smuggling efforts in key areas. Particularly in border regions, priority should be given to supporting border villages (if any) in organizing anti-smuggling efforts; balancing capital for infrastructure and social welfare projects in villages.

Covering expenses related to anti-smuggling work in the locality such as funding for publicity, interim reviews, and final summaries of anti-smuggling work.

The purchase of equipment for anti-smuggling forces and the construction of social welfare facilities and infrastructure must comply with current state regulations on financial expenditure management and basic construction investment.

Advance payments for bonuses and allowances for units, as decided by the Chairpersons of the People's Committees at various levels, can be made in necessary cases where seized assets have not yet been auctioned. The advance payment shall not exceed 40% of the anticipated bonus and supplementary funding for the unit tasked with anti-smuggling work. After the auction of confiscated items, the finance authority shall refund the advance payment.

IV. ACCOUNTING AND SETTLEMENT

Units receiving bonuses for anti-smuggling work must maintain books and records, implement accounting for the centralized collection and use of funds from anti-smuggling activities in accordance with current financial management regulations.

Financial authorities and units managing and using the budget must prepare settlement statements and report settlements in accordance with the State Budget Law.

Proceeds from the sale of confiscated counterfeit goods when deposited into the state budget shall be recorded under Chapter 10, Clause 10, Section 052, and corresponding sub-sections of the current State Budget Manual.

V. IMPLEMENTATION

The Chairpersons of the People's Committees of provinces and centrally-administered cities shall direct, guide, and resolve specific cases involving proceeds from anti-smuggling activities as stipulated in this Circular.

This Circular shall take effect fifteen days from the date of signature and simultaneously revoke Circular No. 80/1997/TT-BTC dated November 7, 1997, issued by the Ministry of Finance, guiding the management and use of funds from anti-smuggling activities.

Smuggling cases discovered and arrested but not yet resolved as of the effective date of this Circular shall be handled according to the provisions of this Circular.

During implementation, if difficulties arise, they should be promptly reported to the Ministry of Finance for research and supplementary guidance./.