Circular No. 110/2014/TT-BTC guiding the collection, payment, management, and use of ferry fees

CIRCULAR

Guidelines for the collection, submission, management, and use of ferry fees

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Based on the Ordinance on Fees and Charges No. 38/2001/PL-UBTVQH10 dated August 28, 2001;

Pursuant to Decree No. 57/2002/NĐ-CP dated June 3, 2002 and Decree No. 24/2006/NĐ-CP dated March 6, 2006 of the Government detailing the implementation of the Ordinance on Fees and Charges;

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

At the proposal of the Director of the Policy Department;

The Minister of Finance issues this Circular to guide the regime for the collection, submission, management, and use of ferry fees, as follows:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the regime for the collection, submission, management, and use of ferry fees for ferry terminals funded by the state budget; it does not apply to ferry terminals funded by the state budget but have been transferred to organizations or individuals for implementation on the principle of accounting.

Article 2. Objects subject to fees, exempt from fees, and persons paying fees

1. Objects subject to ferry fees include: pedestrians, non-motorized road transport vehicles, motorized road transport vehicles, and similar vehicles.

2. Persons paying ferry fees include: pedestrians; drivers of non-motorized road transport vehicles, motorized road transport vehicles, and similar vehicles.

3. Ferry fees shall not be collected from: war invalids, disabled veterans, students, children under ten years old (including those riding bicycles), and other specific objects as stipulated in Clause 4 of this Article. When crossing ferries, these cases must present necessary documents (originals or certified copies) such as: War Invalids' Card, Disabled Veterans' Card, or certificate for war invalids and disabled veterans; Student Card or school certificate for students; Birth Certificate for children.

4. Based on local socio-economic conditions and actual situations at ferry terminals, the Ministry of Finance decides (for centrally-managed ferry terminals) or the People's Councils of provinces and centrally-administered cities (hereinafter referred to collectively as provincial level) decide (for locally-managed ferry terminals) specifically about objects subject to fees and exemptions (other than the cases specified in Clause 3 of this Article) appropriately.

Article 3. Exemption and reduction of ferry fees

The exemption and reduction of ferry fees shall be implemented according to the provisions of Clause 6, Article 1 of Decree No. 24/2006/ND-CP dated March 6, 2006 amending and supplementing some articles of Decree No. 57/2002/ND-CP dated June 3, 2002 of the Government detailing the implementation of the Ordinance on Fees and Charges.

Article 4. Conditions for applying ferry fees

1. For ferry terminals, there must be decisions on establishing and operating the ferry terminal and collecting fees by competent state agencies: for centrally-managed ferry terminals, there must be decisions by the Minister of Transport on establishing and operating the ferry terminal and fee collection regulations by the Ministry of Finance; for locally-managed ferry terminals, there must be establishment and operation decisions by the Chairman of the Provincial People's Committee where the ferry terminal is located and resolutions by the Provincial People's Council on collecting fees.

2. Specific collection rates for each ferry terminal are decided by the Ministry of Finance for centrally-managed ferry terminals or by the Provincial People's Council for locally-managed ferry terminals.

In case the national consumer price index increases by more than 20% compared to the most recent issuance or amendment date of the ferry fee collection rate, the Vietnam Highway Corporation (for centrally-managed ferries) reports to the Ministry of Transport, which then requests the Ministry of Finance; the Department of Transport (for locally-managed ferries) reports to the Provincial People's Committee, which submits to the Provincial People's Council for consideration and adjustment of the ferry fee collection rate accordingly.

Chapter II

MANAGEMENT AND USE OF FERRY FEES

Article 5. Management and use of ferry crossing fees

1. Ferry crossing fees are revenue under the state budget used to cover the costs of organizing the transportation of people and vehicles across rivers. In cases where:

a) The revenue is insufficient to cover the approved expenditure budget for the year, the Central Road Maintenance Fund (hereinafter referred to as the Central Fund) will make up the shortfall for ferries managed by the central government; the Local Road Maintenance Fund (hereinafter referred to as the Local Fund) will make up the shortfall for ferries managed by local governments.

b) The revenue exceeds the approved expenditure budget, the excess must be remitted to the state budget.

Article 6. Content of Expenditure

1. Regular operational expenditure for fee collection and river crossing activities, including:

a) Salaries, wages, meal allowances during work shifts, salary supplements, contributions based on salaries (excluding salary expenses for officials and civil servants already receiving salaries from the state budget): social insurance, health insurance, trade union fees, unemployment insurance according to current regulations;

b) Administrative expenses: travel expenses, conference fees, communication and information services, public utilities (electricity and clean water for ferry terminal offices), office supplies, office materials, meeting and training expenses according to current standards and norms;

c) Labor protection expenses or uniforms according to prescribed regulations (if applicable);

d) Expenses for hiring functional forces to maintain security at the ferry terminal (if applicable);

đ) Ticket and stamp expenses for fee collection purposes;

e) Purchase expenses for spare parts, small-value equipment, and other tools directly serving fee collection and river crossing operations;

g) Fuel expenses for river crossing operations;

h) Insurance expenses for vehicles and passengers when crossing the ferry;

i) Registration and inspection expenses for river-crossing vehicles;

k) Other expenses (such as fire prevention and hazardous waste disposal expenses) directly serving the organization of fee collection and river crossing operations at the ferry terminal, subject to approval by competent authorities (if applicable);

l) Minor repair expenses for regular maintenance of buildings, river-crossing vehicles, auxiliary equipment for river crossing operations, wharves, and office equipment at the ferry terminal.

2. Irregular expenditures, including:

a) Upgrading, major and medium repairs of river-crossing vehicles, wharves, parking areas, buildings, access roads, auxiliary equipment for river crossing operations, office equipment, and channel dredging;

b) Expenses for disaster recovery from typhoons, floods, enemy attacks, accidents that damage facilities, bridges, vehicles, and equipment at the ferry terminal after insurance compensation has been received (if applicable);

c) Transportation expenses for ferries and boats transferred between ferry terminals according to decisions of competent state agencies.

3. Deductions and expenditures for rewards and welfare for staff directly involved in work, services, and fee collection within the unit, following the principle that the maximum deduction shall not exceed three months' average salary per year if this year's revenue is higher than last year's, and shall not exceed two months' average salary per year if this year's revenue is lower or equal to last year's.

Chapter III

ESTABLISHING, ASSIGNING, AND IMPLEMENTING BUDGETS

FERRY CROSSING FEES INCOME AND EXPENSES

Article 7. Budget Preparation

Annually, units with ferry terminals base their budget estimates for income and expenses on the target groups, fee rates for each type of vehicle, the number of vehicles participating in traffic in the planned year, current financial expenditure standards and regulations, and the guidelines issued by the Ministry of Finance regarding the分级分类

1. For ferry terminals managed by the central government

a) Units directly managing ferry terminals under the Directorate General of Roads prepare detailed budgets for income and expenses for the planned year, submit them to the Directorate General of Roads for review and consolidation, then send them to the Vietnam Highway Administration.

b) Units directly managing ferry terminals under the Department of Transport and Communications for national highways entrusted with management prepare detailed budgets for income and expenses for the planned year, submit them to the Department of Transport and Communications for review and consolidation, then send them to the Vietnam Highway Administration.

c) The Vietnam Highway Administration reviews and consolidates the detailed budgets for income and expenses of each ferry terminal (including the subsidy portion, if any), sends them to the Ministry of Transport and the Management Board of the Central Fund. The Ministry of Transport reviews and consolidates these with the annual budget of the Ministry, then submits them to the Ministry of Finance as stipulated.

2. For ferry terminals managed by local governments

Units directly managing ferry terminals prepare detailed budgets for income and expenses (including the subsidy portion, if any), submit them to the Department of Transport and Communications and the Management Board of the Local Fund. The Department of Transport and Communications reviews and consolidates these with the annual budget of the Department, then submits them to the Department of Finance as stipulated.

In cases where localities delegate management of ferry terminals to other units (outside the Department of Transport and Communications), the Provincial People's Committee shall specify procedures for preparing, assigning, implementing, and finalizing budgets for income and expenses from ferry crossing fees in accordance with this Circular and relevant laws.

3. Detailed budgets for income and expenses prepared by units include:

a) Detailed income budget by revenue category.

b) Expenditure budget ensuring compliance with the expenditure items specified in Article 6 of this Circular.

Units prepare detailed budgets for income and expenses for each ferry terminal, providing detailed explanations of the calculation bases according to the income and expenditure items specified in this Circular.

Article 8. Allocation of Budget Estimates

1. For ferry terminals under central management: Based on the annual budget estimates for revenue and expenses through ferries allocated by the competent authority, the Vietnam Highway Administration shall approve detailed budget estimates for revenue and expenses of each ferry terminal based on current standard rates and financial expenditure regulations, consolidate them and submit to the Ministry of Transport for review, and send to the Ministry of Finance for verification. After receiving the Ministry of Finance's comments, the Ministry of Transport shall allocate the budget estimates for revenue and expenses through ferries to the Vietnam Highway Administration, specifically for each ferry terminal: The budget estimate for revenue and expenses through ferries; the amount to cover organizational expenses of the ferry terminals from the Road Maintenance Fund (if applicable). Based on the decision allocating the budget estimates by the Ministry of Transport, the Central Fund Management Board shall implement the compensation for the ferry terminals according to the regulations.

2. For ferry terminals under local management: Based on the annual budget estimates for revenue and expenses through ferries allocated by the competent authority, the Department of Transport shall allocate the budget estimates for revenue and expenses through ferries to each directly managing unit of the ferry terminals including: The budget estimate for revenue and expenses through ferries; the amount to cover organizational expenses of the ferry terminals from the Road Maintenance Fund (if applicable). The Local Fund Management Board shall implement the compensation for the ferry terminals according to the regulations.

3. On the basis of the allocated budget estimates, the Road Management Bureaus and Departments of Transport shall carry out procurement or plan allocation for organizing toll collection tasks, regular and irregular expense tasks for the ferry terminal management and toll collection units; conduct bidding or procurement for regular and irregular expenses according to investment construction laws.

Article 9. Implementation of Budget Estimates

1. For units directly managing and collecting tolls through ferries: Based on the toll collection situation (the amount of toll collected being more or less, the distance from the State Treasury office,...), these units must deposit the toll collected daily or weekly into a bank account opened at the State Treasury office where the ferry terminal is located for use according to the approved budget estimate and the procurement contract or plan allocation. At year-end settlement, if the actual revenue exceeds the approved budget estimate, the toll collection unit must pay the difference into the state budget.

a) In cases where the budget estimate for toll revenue through ferries is higher than the approved budget estimate for expenses, quarterly, the toll collection unit must deposit the excess revenue and expenses into the state budget according to the regulations.

b) For the budget estimates for revenue and expenses through ferries allocated for the year:

- If the actual toll revenue at year-end is lower than the initial annual budget estimate, the corresponding expenses of the toll collection organization shall be reduced.

- If the actual toll revenue at year-end exceeds the initial annual budget estimate, after deducting the actual incurred expenses according to the regulations, the remaining amount shall be paid into the state budget.

2. State Treasury's control over expenditures: Based on the approved budget estimate; procurement contracts or decisions allocating the budget estimates for revenue and expenses through ferries; the actual revenue deposited into the State Treasury; the payment authorization order from the unit head and valid documentation according to the regulations, the State Treasury shall implement expenditure control, advance payments, or settlements for units according to Circular No. 161/2012/TT-BTC dated October 2, 2012 of the Ministry of Finance on the system of control and payment of state budget expenditures through the State Treasury for regular expenses, and Circular No. 86/2011/TT-BTC dated June 17, 2011 of the Ministry of Finance on the management and payment of investment capital and public service capital with investment characteristics from the state budget for irregular expenses.

Article 10. Settlement of revenue and expenditure through ferries

1. Units organizing the collection of ferry fees must conduct accounting and settle revenue and expenditure through ferries in accordance with the current accounting regulations. At the end of each quarter and year, the unit must prepare a settlement report on the situation of revenue and expenditure through ferries after settling with the tax authority regarding the collected ferry fees as prescribed.

The Departments of Highway Administration and Provincial Departments of Transport are responsible for consolidating and settling the total revenue and expenditure through ferries and preparing settlement reports in accordance with the templates and requirements stipulated by the State Budget Law and current guiding documents.

2. The annual review and verification of the settlement report on ferry fees shall be carried out in accordance with the Circular of the Ministry of Finance guiding the review, verification, and notification of annual settlements for administrative agencies, public institutions, organizations supported by state budget funds, and budgets at various levels, specifically as follows:

a) For ferry terminals managed by the central government: The General Department of Roads shall review the annual settlement of ferry terminals under its direct management (including those entrusted to provincial transport departments for management) and consolidate them into the annual settlement of the General Department; submit to the Ministry of Transport for verification and consolidation into the annual settlement of the Ministry, then submit to the Ministry of Finance as prescribed.

b) For ferry terminals managed by local roads: The Provincial Department of Transport shall approve the annual settlement of revenue and expenditure of ferry terminals under local management; consolidate them into the annual settlement of the Department and submit to the Provincial Finance Department for verification as prescribed.

Article 11. Inspection work

To ensure that ferry fees are used for their intended purposes effectively, the Ministry of Transport, the Central Fund Management Board, the Local Fund Management Board, the General Department of Roads, and the Provincial Department of Transport shall coordinate with financial authorities at the same level to regularly and randomly inspect the management, use, and settlement of ferry fee sources at subordinate units.

Article 12. Revenue Receipts

Revenue receipts for ferry fees shall be implemented in accordance with Circular No. 153/2012/TT-BTC dated September 17, 2012, issued by the Ministry of Finance, guiding the printing, issuance, management, and use of various types of revenue receipts and fees belonging to the state budget.

Chapter IV

IMPLEMENTATION

Article 13. Implementation Provisions

1. This Circular takes effect from October 1, 2014.

2. This Circular replaces Circular No. 04/2013/TT-BTC dated January 9, 2013, issued by the Ministry of Finance, guiding the collection, payment, management, and use of ferry fees, and Circular No. 61/2013/TT-BTC dated May 9, 2013, amending and supplementing Circular No. 04/2013/TT-BTC dated January 9, 2013.

3. Other contents related to the management, use, and revenue receipts for ferry fees not mentioned in this Circular shall be implemented in accordance with Circular No. 63/2002/TT-BTC dated July 24, 2002, issued by the Ministry of Finance, guiding the implementation of legal provisions on fees and charges; Circular No. 45/2006/TT-BTC dated May 25, 2006, amending and supplementing Circular No. 63/2002/TT-BTC dated July 24, 2002; Circular No. 156/2013/TT-BTC dated November 6, 2013, issued by the Ministry of Finance, guiding the implementation of certain provisions of the Law on Tax Administration; the Law Amending and Supplementing Certain Provisions of the Law on Tax Administration and Decree No. 83/2013/NĐ-CP dated July 22, 2013, issued by the Government; Circular No. 153/2012/TT-BTC dated September 17, 2012, issued by the Ministry of Finance, guiding the printing, issuance, management, and use of various types of revenue receipts and fees belonging to the state budget, and any supplementary documents (if any).

4. In the course of implementation, if there are any difficulties, units are requested to report to the Ministry of Transport and the Ministry of Finance for timely amendment and supplementation./.