Circular No. 119/2007/TT-BTC guides financial management work and the allocation of plans for providing public utility services to ensure flight operations.

CIRCULAR

Guidelines for financial management and allocation of plans for providing public services to ensure flight operations

public service ensuring air operations

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- Based on the Civil Aviation Law of Vietnam;

- Based on the Ordinance on Fees and Charges;

- Based on the Ordinance on Prices;

- Based on Decree No. 77/2003/NĐ-CP dated July 1, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

- Based on Decree No. 31/2005/NĐ-CP dated March 11, 2005 of the Government on production and supply of public goods and services;

- Based on Decree No. 199/2004/NĐ-CP dated December 3, 2004 of the Government promulgating the Financial Management Regulations for State-owned Enterprises and State Capital Investment in Other Enterprises;

- Based on Decision No. 256/2006/QĐ-TTg dated November 9, 2006 of the Prime Minister promulgating the Tendering, Ordering, and Allocation Plan Implementation Regulations for Production and Supply of Public Goods and Services;

- Based on Decision No. 1477/QĐ-BGTVT dated May 18, 2007 of the Minister of Transport recognizing state-owned enterprises performing public service tasks under the Civil Aviation Administration of Vietnam;

The Ministry of Finance provides guidelines for financial management and plan allocation for public services ensuring flight operations as follows:

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

1. Scope of application:

The Civil Aviation Air Traffic Control Center is a state-owned enterprise with the task of providing air traffic services to ensure flight operations, aiming to guarantee safety, coordination, continuity, and efficiency for state-planned flights, collected according to prices and fees set by the state and specific provisions in this Circular.

2. Scope of Application:

Public services ensuring flight operations performed by the Civil Aviation Air Traffic Control Center include:

2.1. Air traffic services: air traffic control services, flight information services, advisory air traffic services, and alerting services.

2.2. Other services ensuring flight operations: communication services, navigation services, surveillance services, meteorological services, aerodrome information services, and search and rescue services.

Principles of management:

3.1. The Civil Aviation Air Traffic Control Center is entrusted by the owner representative with capital, assets, and personnel necessary to perform flight operation assurance tasks according to economic and technical norms prescribed by the Ministry of Transport.

In addition to performing assigned public service tasks, the Civil Aviation Air Traffic Control Center may utilize provided state capital, assets, and resources to organize business activities in accordance with the law without affecting the assigned public service tasks.

3.2. Revenue from air traffic control overflight charges and flight information region charges is revenue from fees as prescribed by the state regarding fees and charges. The Civil Aviation Air Traffic Control Center is exempt from value-added tax on such fee revenues.

II. ESTABLISHING AND ALLOCATING PLANS FOR PROVIDING PUBLIC SERVICES TO ENSURE FLIGHT OPERATIONS

1. Plan establishment:

Annually, based on forecasts of air transport demand, the Civil Aviation Air Traffic Control Center establishes plans for providing public services to ensure flight operations, reporting to the Ministry of Transport and the Ministry of Finance.

2. Allocation of plans for providing public services to ensure flight operations:

Based on the budget revenue and expenditure plan for air traffic control overflight charges and flight information region charges announced by the Ministry of Finance, and the production volume plan for public services of the Civil Aviation Air Traffic Control Center, the Ministry of Transport organizes the allocation of financial plans and production volume plans for providing public services to the Civil Aviation Air Traffic Control Center after obtaining written comments from the Ministry of Finance. The allocation plan must be completed before December 31 of the preceding year.

3. Content of plan allocation:

3.1. Service provision plan:

- Name of public service;

- Volume of public service;

- Quality of public service.

3.2. Financial plan:

a) Revenue:

- Allocate 25% of revenue from air traffic control overflight charges and flight information region charges.

- Revenue from aircraft handling services both domestically and internationally arriving at Vietnamese airports.

- Revenue from other services.

- Revenue from State subsidies and price supports (if any).

The determination of revenue shall be carried out according to current regulations.

b) Expenditure items: Including expenditure items as prescribed by law for state-owned enterprises and special expenditure items as follows:

- Safety awards.

- Calibration flight costs.

- Satellite communication channel rental costs.

- Payment for supplementary air traffic control services at transit airports.

- Property insurance and civil liability insurance for air traffic controllers.

- Air search and rescue drill costs.

- Meal allowance.

c) Submission to the state budget.

d) Establishment of funds as prescribed by current laws.

III. FINANCIAL MANAGEMENT AND DISTRIBUTION OF PROFITS OF THE CIVIL AVIATION AIR TRAFFIC CONTROL CENTER

1. The management of capital, assets, and other financial regulations, the Civil Aviation Air Traffic Control Center shall implement as prescribed in Decree No. 199/2004/NĐ-CP dated December 3, 2004 of the Government promulgating the Financial Management Regulations for State-owned Enterprises and State Capital Investment in Other Enterprises, Circular No. 33/2005/TT-BTC dated April 29, 2005 of the Ministry of Finance guiding certain provisions of the Financial Management Regulations for State-owned Enterprises and State Capital Investment in Other Enterprises, and Circular No. 87/2006/TT-BTC dated September 27, 2006 amending and supplementing Circular No. 33/2005/TT-BTC of the Ministry of Finance.

2. After covering previous year losses (if any) in accordance with the Corporate Income Tax Law and paying corporate income tax, the remaining profit of the Civil Aviation Air Traffic Control Center shall be distributed according to current regulations. If, after setting aside funds as prescribed, the Civil Aviation Air Traffic Control Center does not have enough to set aside bonus and welfare funds at two months' actual salary level, the Civil Aviation Air Traffic Control Center may reduce investment development fund contributions and reduce the portion of profits allocated according to state capital to make up the shortfall for the two funds. If reducing the entire amount still leaves insufficient funds for the two funds, the state will consider providing assistance.

3. Provisions on the ratio of retained fees and payment of fees into the state budget:

The Civil Aviation Air Traffic Control Center retains 25% of revenue from air traffic control overflight charges and flight information region charges and records it as revenue of the unit. The remaining revenue from air traffic control overflight charges and flight information region charges (75%), the Civil Aviation Air Traffic Control Center is responsible for submitting to the state budget. The collection and submission system is implemented according to the current regulations of the Ministry of Finance.

In the event that the Civil Aviation Management Centre uses up all its own capital sources but still lacks funds to perform its tasks of providing air traffic service in accordance with international standards, the Civil Aviation Management Centre shall develop specific plans, report to the Vietnam Civil Aviation Authority, which will coordinate with the Ministry of Finance to review and issue documents adjusting the proportion of revenue retained to be appropriate.

IV. ORGANIZATION OF INSPECTION AND SETTLEMENT OF THE PERFORMANCE OF PUBLIC SERVICE TASKS TO ENSURE AIR TRAFFIC

1. Quarterly and annually, the Civil Aviation Management Centre shall prepare financial reports and settlement reports on the provision of public services, to be submitted to the Ministry of Transport and the Ministry of Finance in accordance with current regulations.

The General Director of the Civil Aviation Management Centre is responsible for implementing the financial regulations stipulated in Clause 8 and Clause 9 of Article 34 of Decree No. 199/2004/ND-CP dated December 3, 2004, issued by the Government on the Financial Management Regulations for State-Owned Enterprises and State Capital Investment in Other Businesses.

Annually, the Civil Aviation Management Centre must conduct independent audits of annual financial reports and be subject to inspection, examination, and supervision by financial authorities regarding financial management activities in accordance with the regulations.

2. Annually,, The Ministry of Transport shall take the lead in coordinating with the Ministry of Finance to organize inspections and settlements of public service tasks assigned to the Civil Aviation Management Centre to ensure air traffic.

V. IMPLEMENTATION

1. In addition to the provisions set out in this Circular, the Civil Aviation Management Centre must also comply with other legal regulations applicable to state-owned enterprises.

2. This Circular takes effect fifteen days from the date of publication in the Official Gazette, replacing Circular No. 36/1998/TT-BTC dated March 21, 1998, Circular No. 121/1999/TT-BTC dated October 12, 1999, and Circular No. 77/2006/TT-BTC dated August 23, 2006, issued by the Ministry of Finance guiding the financial management system for the Civil Aviation Management Centre.

3. During implementation, if there are any difficulties, the Civil Aviation Management Centre and related units are requested to compile and report to the Ministry of Finance for research and appropriate amendments and supplements./