Circular No. 111/2000/TT-BTC guides the management and use of funds collected from quota export fees for textile and garment products to the EU and Canada markets, and fees for issuing permits to establish permanent representative offices of foreign economic organizations in Vietnam.

CIRCULAR

Guidelines for managing and using funds from quota export fee collections

on textile and garment exports to the EU and Canadian markets with quotas

and the fee for issuing licenses to establish permanent representative offices

of foreign economic organizations in Vietnam

Pursuant to Decree 87/CP dated December 19, 1996 and Decree No. 51/1998/NĐ-CPdated July 18, 1998 of the Government detailing the delegation, management,preparation, implementation, and settlement of state budget;

Pursuant to Decree No. 04/1999/NĐ-CP dated January 30, 1999 of the Governmenton fees and charges under the state budget.

Pursuant to Decision No. 99/1999/QĐ-BTC dated August 27, 1999 of the Ministerof Finance promulgating the schedule of quota export fee collection for textilesand garments to the EU and Canadian markets; Circular No. 73/1999/TT-BTC datedJune 14, 1999 of the Ministry of Finance guiding the collection of fees forlicensing the establishment of permanent representative offices of foreigneconomic organizations in Vietnam.

Pursuant to Circular No. 150/199/TT-BTC dated December 21, 1999 of theMinistry of Finance guiding the implementation of Decision No. 195/1999/QĐ-TTgdated September 27, 1999 of the Prime Minister regarding the establishment, use,and management of the Export Support Fund, which has defined the agencies andunits responsible for collecting quota export fees and licensing fees forrepresentative offices of foreign economic organizations in Vietnam, which shallreceive a maximum remuneration of 10% and remit 90% of the remaining revenueinto the Export Support Fund.

After reaching consensus with the Ministry of Trade, the Ministry of Financetakes the lead in guiding the management and use of funds from quota exportfees on textiles and garments to the EU and Canadian markets with quotas; andfees for licensing the establishment of permanent representative offices offoreign economic organizations in Vietnam as follows:

I. GENERAL PROVISIONS:

1. The quota export fee on textiles and garments to the EU and Canadian marketswith quotas; and the fee for licensing the establishment of permanentrepresentative offices of foreign economic organizations in Vietnam is a revenuestream of the state budget aimed at compensating for part of the costs of stateadministration activities and issuing export licenses for textiles and garments tothe EU and Canadian markets with quotas; and issuing licenses for establishingpermanent representative offices of foreign economic organizations inVietnam.

2. The annual use of fees for licensing the export of textiles and garments to theEU and Canadian markets with quotas; and licensing the establishment ofpermanent representative offices of foreign economic organizations in Vietnammust be budgeted and approved by the competent authority.

II. SPECIFIC PROVISIONS:

1. Content of expenditure:

1.1. Recurrent expenses ensuring activities related to issuing licenses andexport quotas for textiles and garments; and issuing licenses for establishingpermanent representative offices of foreign economic organizations in Vietnam.The contents of expenditure include

Expenditurefor license application forms.

Expenditurefor office supplies.

Expenditurefor information exchange and documentation on implementing the Agreement ontextile and garment trade between Vietnam and markets applying quotas.

Expenditurefor sending Vietnamese experts abroad for research and inviting foreign expertsto Vietnam for exchanges and learning experiences on implementing theAgreement on textile and garment trade between Vietnam and markets applyingquotas (Expenditure for business expert delegations is not allowed).

Expenditurefor seminars, promotional activities, advertising, and exhibitions on exportingtextiles and garments between Vietnam and markets applying quotas.

Expenditurefor activities aimed at accelerating Vietnam's export quotas for textiles andgarments to markets applying quotas.

Expenditurefor regular and extraordinary inspections to enhance the effectiveness ofimplementing the Agreement between Vietnam and markets applying quotas.

Expenditurefor labor compensation and contributions according to regulations.

Expenditurefor overtime and night shift allowances for staff involved in fee collectionbeyond their assigned duties.

Expenditurefor purchasing, repairing equipment, facilities, and means of service for fee collectionand issuing export quotas for textiles and garments to the EU and Canadianmarkets with quotas.

1.2. Allocating a bonus fund for officials directly involved in fee collection. Themaximum average annual bonus for each person shall not exceed three months'salary.

Theamount of 10% of the fees retained by the Ministry of Trade for allocationaccording to the provisions set out in Points 1.1 and 1.2, Section II above, willbe transferred to the state budget if unused at year-end.

2. Preparing and adhering to the budget for collecting and spending fees forlicensing the export of textiles and garments to the EU and Canadian markets withquotas; and licensing the establishment of permanent representative offices offoreign economic organizations in Vietnam.

2.1. Annually, based on the fee collection levels prescribed by the Ministry ofFinance in the schedule of fees for licensing the export of textiles and garments tothe EU and Canadian markets with quotas; and licensing the establishment ofpermanent representative offices of foreign economic organizations in Vietnam,along with the expenditure provisions stipulated in this Circular and currentfinancial expenditure regulations, the Ministry of Trade prepares a detailed budgetfor fee collection and spending, and submits it to the Ministry of Finance inaccordance with the current state budget classification.

2.2. Based on the approved budget for collection and spending, the Ministry ofTrade prepares a quarterly detailed budget for fee collection and spending, andsubmits it to the State Treasury where transactions take place, and the Ministryof Finance as a basis for controlling income and expenditure.

2.3. The Ministry of Trade must open a fee and charge account at the StateTreasury where transactions take place. All collected fees and charges must befully deposited into the unit's income account opened at the State Treasury wheretransactions take place.

2.4. Based on the collected fee amount; approved expenditure projects; thehead of the unit's payment order; and valid and legal supporting documents, theState Treasury provides advance payments or settlements to units according tocurrent regulations on state budget expenditure management, disbursement, andsettlement through the State Treasury and the provisions of this Circular. Anyexpenditures outside the approved budget must be settled and recovered andreturned to the state budget. The person who issues incorrect payment ordersmust compensate public funds and be dealt with according to the law.

2.5.The Ministry of Commerce is responsible for declaring, collecting, depositing, and managing the licensing fees in accordance with current regulations.

3.Settling the income and expenditure of licensing fees for exporting woven and knitwear products to the EU and Canada markets subject to quotas; issuing licenses for establishing permanent representative offices of foreign economic organizations in Vietnam.

The Ministry of Commerce is responsible for opening accounting books to record and settle the income and expenditure of licensing fees in accordance with Decision No. 999/TC/QĐ/CĐKT dated November 2, 1996, issued by the Minister of Finance on the system of administrative and public service accounting regulations.

The Ministry of Commerce is responsible for approving the settlement of income and expenditure of licensing fees for exporting woven and knitwear products to the EU and Canada markets subject to quotas; issuing licenses for establishing permanent representative offices of foreign economic organizations in Vietnam of subordinate units, and consolidating them into a general settlement report sent to the Ministry of Finance for review and issuing an approval notice for the settlement together with the Ministry of Commerce's settlement.

The Ministry of Commerce is responsible for coordinating with the Ministry of Finance to conduct periodic (or ad hoc) inspections to ensure that income and expenditure comply with prescribed regulations.

III. IMPLEMENTATION PROVISIONS:

These provisions of this Circular shall take effect from January 1, 2000. Any other provisions regarding the use of licensing fees for exporting woven and knitwear products to the EU and Canada markets subject to quotas; issuing licenses for establishing permanent representative offices of foreign economic organizations in Vietnam that conflict with this Circular are hereby abolished.

In the course of implementation, if there are any difficulties, the Ministry of Commerce is requested to promptly reflect them to the Ministry of Finance for study and resolution./.