Circular No. 117/2009/TT-BTC guides the implementation of Decision No. 63/2009/QD-TTg dated April 20, 2009 of the Prime Minister on the issuance of financial management mechanisms and staffing for the Customs sector in 2009 and 2010.

CIRCULAR

||| Guidelines for implementing Decision No. 63/2009/QD-TTg dated April 20, 2009 of the Prime Minister on the mechanism for financial management and staffing for the Customs sector in 2009 and 2010.

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Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the State Budget Law;

Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

||| Pursuant to Decision No. 63/2009/QD-TTg dated April 20, 2009 of the Prime Minister on the mechanism for financial management and staffing for the Customs sector in 2009 and 2010;

||| The Ministry of Finance guides the implementation of the mechanism for financial management and staffing for the Customs sector in 2009 and 2010 as follows:

||| Article 1. Scope and Objectives of Implementation

||| Implement the mechanism for financial management and staffing for units under the Customs sector directly subordinate to the Ministry of Finance in 2009 and 2010 according to Decision No. 63/2009/QD-TTg dated April 20, 2009 of the Prime Minister.

Article 2. Purpose and Requirements

||| The implementation of the mechanism for financial management and staffing of the Customs sector must ensure the following objectives and requirements:

||| 1. Effectively perform the state management function over import and export tax revenues; complete the tax revenue tasks assigned by the State.

||| 2. Reform the staffing and operating budget management mechanism of the Customs sector; promote organizational restructuring, build a clean, strong, and highly qualified workforce; utilize allocated funds in conjunction with results and effectiveness of state budget revenue collection activities; grant autonomy and responsibility to unit heads in organizing work, labor utilization, and financial resource allocation.

||| 3. Actively utilize allocated funds, practice thrift, and prevent waste; focus on modernizing information technology and equipping advanced technology to enhance efficiency and modernize management technology to effectively fulfill assigned state functions and meet international integration conditions; strengthen training and supplement income for officials and civil servants.

||| 4. Implement transparency and democracy in accordance with the provisions of the law, ensuring the legitimate rights of officials and civil servants in the Customs sector.

Article 3. On Staffing

||| Point 1. Staffing of the Customs sector is determined within the total staffing quota granted by the competent state authority to the Ministry of Finance. The Minister of Finance allocates staffing quotas to the Customs sector in line with its assigned functions and tasks based on actively organizing and restructuring the management apparatus and utilizing labor in accordance with the national policy of reducing staffing.

||| Point 2. The General Director of the General Department of Customs proactively organizes, manages, and utilizes officials and civil servants in accordance with the law and regulations of the Ministry of Finance. The total staffing quota allocated to units under the Customs sector shall not exceed the staffing quota already granted by the Minister of Finance to the Customs sector.

||| Point 3. In addition to the allocated staffing quota, the Customs sector may enter into service contracts and labor contracts in accordance with the law.

||| Point 4. In cases where additional or merged Customs Departments at provincial and centrally-administered city levels are established or new functions and tasks are added pursuant to decisions of authorized authorities, the General Director of the General Department of Customs proactively reorganizes staffing within the total staffing quota granted by the Minister of Finance. If it is necessary to increase staffing quotas to meet newly arising tasks, the General Director of the General Department of Customs reports to the Minister of Finance for consideration and coordination with the Minister of Home Affairs to submit to the Prime Minister for decision.

Article 4. Funding to Ensure the Operation of the Customs Sector

1. The funding to ensure the operation of the Customs sector shall be determined at 1.6% of the revenue forecast approved by the National Assembly, which the Customs sector organizes and implements within the annual state budget revenue and expenditure forecast.

2. The revenue forecast serving as the basis for determining the funding to ensure the operation of the Customs sector includes:

- Export tax;

- Import tax;

- Value-added tax on imported goods;

- Special consumption tax on imported goods.

3. In cases where the revenue organized and implemented annually by the Customs sector increases or decreases compared to the revenue forecast approved by the National Assembly, the Minister of Finance shall report to the Government for a decision by the Standing Committee of the National Assembly in accordance with Article 59 of the State Budget Law.

4. When the State changes policies or systems, the Customs sector shall cover additional expenditures according to new policies and systems. In cases where objective factors lead to insufficient allocated funding to ensure the minimum operational costs of the Customs sector's machinery, the Minister of Finance shall report to the Prime Minister for appropriate adjustments.

Article 5. Other Sources of Funding

In addition to the funding allocated under Article 4 of this Circular, the Customs sector may also utilize the following sources of funding:

1. State budget funding allocated to implement the following tasks:

a) Implementing scientific management tasks and national-level research projects;

b) Training and upgrading staff and civil servants according to the state program;

c) Implementing national target programs and other government programs outside the regular tasks of the Customs sector;

d) Implementing reductions in staffing according to regulations set by the state.

2. Revenue from fees and charges permitted to be retained according to the regulations of authorized agencies, and other lawful sources of funding may be utilized in accordance with the law.

The management and utilization of these sources of funding must comply with their designated uses and current expenditure regulations applicable to each source of funding.

Article 6. Contents of Funding to Ensure the Operation of the Customs Sector

1. Regular Expenditure Items:

The regular funding to ensure the operation of the Customs sector includes the following items:

a) Personal payment expenses: salaries, wages, allowances, contributions (including social insurance, health insurance, trade union funds), collective rewards and welfare benefits as stipulated by state regulations, and other payments to individuals (including salary increases, outsourcing work payments, and external labor contracts). The average salary level across the sector is 1.8 times the state-regulated salary system for officials, civil servants, and employees (grade, rank, position, and various allowances, excluding night and overtime allowances).

b) Administrative management expenses and expenses to ensure specialized professional operations, including:

- Expenses for public service payments, office supplies, telecommunications, communication, conferences, travel expenses, rentals, etc.;

- Expenses for propaganda of state policies, laws on taxes and customs activities;

- Research expenses; training and upgrading expenses for staff and civil servants according to the Customs sector's program and plan;

- Special expenses for anti-smuggling and seal operations; uniform expenses and other special expenses;

- Inspection and control expenses to prevent tax evasion and violations of tax and customs laws;

- Cooperation expenses;

- Compensation expenses for losses of money and property for taxpayers as prescribed by law;

- Expenses for purchasing, repairing, and major repairs of assets, equipment, facilities, and offices to support the professional and operational work of the Customs sector (including purchasing tools, equipment, information technology assets; repairing assets and offices);

- Expenses for overseas trips; expenses for hosting foreign guests visiting Vietnam, organizing international seminars and conferences in Vietnam;

- Expenses for supporting the dispatch, rotation, and assignment of staff and civil servants within the Customs system;

- Other regular operational expenses.

c) Information technology application and modernization expenses according to approved programs and plans, ensuring a minimum of 9% of the total regular expenses of the Customs sector.

d) Implementation of programs, plans, projects, and proposals for information technology applications, procurement of equipment, strengthening of facilities, training and upgrading of staff and civil servants, and other contents according to the general tasks of the entire finance sector, including those serving the professional tasks of the Customs sector. The Minister of Finance decides on the management of the budget to implement the above tasks within the approved Customs sector budget.

e) Expenses to ensure the operation of party organizations according to Decision No. 84-QD/TW dated October 1, 2003 of the Central Party Secretariat; expenses to ensure the operation of mass organizations according to current laws.

Unspent regular operational expenses at year-end may be carried over to the next year for continued use.

2. Investment Construction Expenses:

Investment construction expenses must ensure a minimum of 10% of the annual approved budget of the Customs sector.

Investment capital is allocated for building and renovating Customs sector offices. Management and use of investment capital follow current regulations.

In necessary cases, the Minister of Finance has the authority to reallocate investment capital already allocated to the Customs sector for investment in other construction projects serving the general tasks of the finance sector that have sufficient procedures but lack funding.

Article 7. Standards, expenditure levels, and expenditure regimes

1. For expenditure regimes, standards, and levels that have been issued by competent authorities, the Director General of the Customs General Department shall proactively guide units within the Customs sector to implement them in accordance with the activities of the Customs sector.

2. For special expenditure items, the Director General of the Customs General Department shall base on specific circumstances and the financial capacity, applying current standards and expenditure levels to establish special standards and expenditure levels suitable for approval and issuance by the Minister of Finance.

3. Regarding expenditure levels for salaries and wages: Based on the number of positions assigned by the Minister of Finance and the operational budget, the expenditure level for salaries and wages for officials, civil servants, and employees shall be implemented according to the provisions at point a, Clause 1, Article 6 of this Circular.

The Director General of the Customs General Department decides on the distribution of salaries and wages based on the quality of work completion results of each official, civil servant, and employee, following the principle of fairness and reasonableness, linking salaries to work performance, while also being reflected in the internal expenditure regulations of the Customs sector.

Article 8. Utilization of saved funds

Annually, the saved funds from the regular budget (excluding the expenditure contents stipulated at points c and d, Clause 1, Article 6 of this Circular) may be used for the following purposes:

1. In cases where it is necessary to accelerate the progress of constructing physical infrastructure and modernizing the sector while the investment capital for basic construction has not yet met the requirements, the Customs sector may use the saved funds to allocate for construction projects and modernization of the sector.

Based on the financial capacity of the saved funds and the need for funds to accelerate the progress of constructing physical infrastructure and modernizing the sector, the Director General of the Customs General Department shall report to the Minister of Finance for approval to allocate for each item of work.

2. To set up a Fund for Stabilizing Income to ensure stable income for officials and civil servants in the Customs sector due to objective reasons reducing their income; to support officials, civil servants, and employees in the Customs sector facing difficult situations, suffering from serious illnesses, death, or other special cases. The Minister of Finance shall specify the detailed level of establishing the Fund for Stabilizing Income appropriately.

3. To supplement income for officials, civil servants, and employees across the entire Customs sector, with a maximum of 0.2 times the salary level prescribed by the state (grade, rank, position, and various allowances, excluding night shift and overtime allowances).

The level of supplementary income for each official, civil servant, and employee shall be decided by the head of the unit based on the principle of linking to work performance, fairness, and reasonableness, while also being consistent with the trade union organization of the unit and made public throughout the unit.

4. To reward organizations and individuals inside and outside the Customs sector who have made contributions and supported customs activities; to fund collective welfare. The Director General of the Customs General Department shall provide guidance on specific reward levels suitable for these purposes.

The total level of rewards and welfare expenditures in the Customs sector shall not exceed three months' worth of salaries, wages, and actual income realized in the year.

5. To provide additional subsidies beyond general policies for those voluntarily retiring during the process of labor restructuring; to support public institutions under the Customs sector. The Director General of the Customs General Department shall provide guidance on specific subsidy levels suitable for these purposes.

6. To support the activities of party organizations and mass organizations, with specific support levels determined by the Director General of the Customs General Department and the heads of agencies and units under the Customs sector as appropriate.

7. Any remaining funds (if any) after ensuring the above expenditure items, the Customs sector may transfer to the next year for continued use.

Article 9. Funding to ensure operations for units under the General Department of Customs

Units under the General Department of Customs shall be guaranteed operational funding from the state budget according to regulations from the source of funding allocated by the state to ensure the operation of the Customs sector as stipulated in Article 4 of this Circular; they shall apply the expenditure regime as prescribed in this Circular and exercise autonomy and responsibility for fulfilling tasks, organizational structure, staffing, and finance for public service units as provided for in Decree No. 43/2006/NĐ-CP dated April 25, 2006, and Decree No. 115/2005/NĐ-CP dated September 5, 2005 of the Government.

Article 10. Budget preparation, implementation, and settlement

The preparation of budgets, implementation of budgets, and settlement of expenditures shall be carried out in accordance with current regulations.

Article 11. Implementation Organization

1. The Ministry of Finance (primary budget unit) shall be responsible for guiding and implementing the financial management and staffing mechanism for the Customs sector as prescribed in Decision No. 63/2009/QĐ-TTg dated April 20, 2009 of the Prime Minister and the guidance provided in this Circular.

2. Based on the guidance of the Ministry of Finance (primary budget unit), the Director-General of the General Department of Customs shall be responsible for guiding and organizing the implementation of the financial management and staffing mechanism for units within the Customs sector.

Annually, the General Department of Customs shall organize inspections, evaluations, and lessons learned in the implementation of the financial management and staffing mechanism to ensure compliance with the objectives and requirements set forth in Decision No. 63/2009/QĐ-TTg dated April 20, 2009 of the Prime Minister.

In the third quarter of 2010, the Director-General of the General Department of Customs shall organize a summary and evaluation of the results of the financial management and staffing mechanism of the Customs sector in 2009 and 2010, develop the financial management and staffing mechanism for the next phase, and report to the Minister of Finance for submission to the Prime Minister for decision.

3. Operational funds assigned to the Customs sector (including all funds) that were not utilized or settled prior to 2008 may continue to be used to serve specialized tasks, investment construction expenses, and expenses to strengthen infrastructure and develop the sector as guided in this Circular.

Based on the amount of unused and unsettled funds and the necessary expenses required to meet specialized tasks, investment construction expenses, and expenses to strengthen infrastructure and develop the sector, the Director-General of the General Department of Customs shall report to the Minister of Finance for a decision on the effective use of these funds.

4. This Circular shall take effect 45 days from the date of signature and shall apply to the fiscal years 2009 and 2010. The Circular No. 55/2005/TT-BTC of the Ministry of Finance guiding the implementation of Decision No. 109/2005/QĐ-TTg dated May 16, 2005 of the Prime Minister regarding the pilot assignment of staffing and operational funds for the General Department of Customs for the period 2005-2007 is hereby repealed.

During the implementation process, if there are difficulties or obstacles, units are requested to reflect them to the Ministry of Finance for timely research and resolution./.