Circular No. 119/2010/TT-BTC guiding the collection, management, and use of maritime safety guarantee fee revenues and financial mechanisms in the provision of public service to ensure maritime safety.

CIRCULAR

Guidelines on the collection, management, and use of revenue from maritime safety fees and financial mechanisms in the field

PROVIDING PUBLIC SERVICES TO ENSURE MARITIME SAFETY

__________________________________

Pursuant to Ordinance on Fees and Registration Fees No. 38/2001/PL-UBTVQH10 dated August 28, 2001;

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

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

Pursuant to Decree No. 75/2008/NĐ-CP dated June 9, 2008 of the Government amending and supplementing certain articles of Decree No. 170/2003/NĐ-CP dated December 25, 2003 of the Government detailing the implementation of certain provisions of the Ordinance on Fees and Charges;

Pursuant to Decree No. 71/2006/NĐ-CP dated July 25, 2006 of the Government on port management and maritime channels;

Pursuant to Decree No. 25/2010/NĐ-CP dated March 19, 2010 of the Government on the conversion of state-owned enterprises into limited liability companies with one member and the organization of management of limited liability companies with one member owned by the State;

Pursuant to Decision No. 256/2006/QĐ-TTg dated November 9, 2006 of the Prime Minister promulgating the Procurement Regulations for ordering, allocating plans for production and supply of public goods and services;

Implementing the opinion of the Prime Minister at Official Letter No. 4482/VPCP-KTTH dated July 9, 2008 of the Government Office regarding the handling of maintenance and dredging funds for maritime channels;

After reaching consensus with the Ministry of Transport through Official Letters No. 2248/BGTVT-TC dated April 12, 2010 and No. 4100/BGTVT-TC dated June 22, 2010, the Ministry of Finance issues guidelines on the collection, management, and use of revenue from maritime safety fees and financial mechanisms in the provision of public service to ensure maritime safety as follows:

PART I

GENERAL PROVISIONS

Article 1. The subjects implementing this Circular include:

1. Northern Maritime Safety Assurance Limited Liability Company and Southern Maritime Safety Assurance Limited Liability Company (hereinafter referred to as two Maritime Safety Assurance Companies), established by the Minister of Transport, assigned the task of providing public services to ensure maritime safety.

2. Vietnam Maritime Administration, acting on behalf of the State, organizes the allocation of plans and orders for the provision of public services to ensure maritime safety. The operating expenses of the Vietnam Maritime Administration are allocated from the State budget within the annual State budget estimate of the Ministry of Transport, including expenses for organizing the allocation of plans and orders for the provision of maritime public services according to the law.

3. Marine Port Authorities authorized to collect maritime safety fees.

Article 2. Maritime safety fees are stipulated in the list of fees promulgated together with the Ordinance on Fees and Charges; Maritime safety fees are part of the State budget revenue including:

- Maritime safety fees collected from maritime channels managed and operated by the two Maritime Safety Assurance Companies;

- Revenue from maritime safety fees collected at maritime channels invested in and constructed by businesses according to the ratio prescribed by the Ministry of Finance.

Article 3. Public services to ensure maritime safety, funded by the State, are implemented on the system of maritime channels and lighthouses managed and operated by the two Maritime Safety Assurance Companies, including:

1. Operation of lighthouse systems;

2. Operation of maritime channel systems;

3. Survey and issue of maritime notices;

4. Repair of maritime safety facilities and assets;

5. Dredging and maintenance of maritime channels to ensure the initial design depth of the channels approved by competent authorities (excluding dredging work for new construction of maritime channels);

6. Other urgent tasks to ensure maritime safety.

Article 4. The State implements the allocation of plans and orders for the provision of public services to ensure maritime safety under the current financial mechanism based on the budget estimates assigned by the competent authority or on unit prices issued by the competent authority.

The procedures for establishing, reviewing, and deciding on unit prices for the provision of public services to ensure maritime safety are carried out in accordance with Decree No. 170/2003/NĐ-CP dated December 25, 2003 of the Government detailing the implementation of certain provisions of the Ordinance on Fees and Decree No. 75/2008/NĐ-CP dated June 9, 2008 of the Government amending and supplementing certain articles of Decree No. 170/2003/NĐ-CP dated December 25, 2003 of the Government.

Chapter II

ORGANIZATION OF COLLECTION AND ESTABLISHMENT OF STATE BUDGET ESTIMATES ON MARITIME SAFETY FEES

Article 5. Maritime safety fees, part of the State budget revenue, are authorized by the State to be collected by marine port authorities and transferred to the two Maritime Safety Assurance Companies in accordance with Article 14 of this Circular for the companies to perform their assigned public service tasks.

Article 6. Vietnam Maritime Administration is responsible for guiding the organization of collecting maritime safety fees in accordance with the principle of timely, full, and accurate collection.

Article 7. Marine port authorities carry out the collection of authorized fees; Use fee receipts in accordance with current regulations and retain a percentage of the total amount of collected fees as stipulated by the Ministry of Finance as a reward for the collection of authorized fees.

Article 8. Establishment, allocation, and assignment of budget estimates for maritime safety fees:

1. Establishment of budget projections:

Annually, based on the forecast of maritime safety fee revenue announced by the Ministry of Finance to the Ministry of Transport; the Ministry of Transport announces it to Vietnam Maritime Administration.

Based on the announced forecast, Vietnam Maritime Administration establishes the budget estimate for maritime safety fees (based on the expected volume of vessels and the level of maritime safety fees established by marine port authorities) and sends it to the Ministry of Transport for review and consolidation within the Ministry's annual State budget estimate to be sent to the Ministry of Finance in accordance with the State Budget Law.

Article 16. Settlement of State Budget Funds for Support

Based on the annual budget estimate for maritime safety fees assigned by the competent authority, the Ministry of Transport allocates and assigns the budget estimate for maritime safety fees to Vietnam Maritime Administration for Vietnam Maritime Administration to assign the budget estimate for collection to marine port units; simultaneously sending it to the Ministry of Finance, the Ministry of Transport, and the State Treasury.

Article 9. Consolidation and settlement of maritime safety fee revenue:

At the end of the fiscal year, marine port authorities settle the collected maritime safety fees for the year and report to Vietnam Maritime Administration; Vietnam Maritime Administration consolidates and reports to the Ministry of Transport to consolidate the State budget revenue of the Ministry of Transport annually according to current regulations.

Chapter III

PROCEDURE FOR ALLOCATION OF PLANS AND ORDERING THE PROVISION OF PUBLIC SERVICES TO ENSURE MARITIME SAFETY

Article 10. Sources of funding for plan allocation and ordering:

BASED ON THE REVENUE FROM MARITIME SAFETY FEES AND THE ABILITY TO BALANCE THE STATE BUDGET, THE FUNDS FOR ASSIGNING PLANS AND ORDERING THE SUPPLY OF PUBLIC SERVICES TO ENSURE MARITIME SAFETY ARE ALLOCATED ANNUALLY FROM THE CENTRAL GOVERNMENT BUDGET, INCLUDING:

- THE REVENUE FROM MARITIME SAFETY FEES BELONGING TO THE STATE BUDGET IS RETAINED AT 100% FOR USE IN EXPENSES FOR TASKS RELATED TO PROVIDING PUBLIC SERVICES TO ENSURE MARITIME SAFETY.

- BASED ON THE ABILITY TO BALANCE THE STATE BUDGET, FUNDS ARE ALLOCATED FROM THE ANNUAL OPERATIONAL EXPENSES OF THE CENTRAL GOVERNMENT BUDGET TO COMPLEMENT WORKS OF DREDGING AND MAINTENANCE OF MARITIME CHANNELS.

Article 11. ESTABLISH, ALLOCATE AND ASSIGN THE BUDGET FOR EXPENSES TO PROVIDE PUBLIC SERVICES TO ENSURE MARITIME SAFETY:

1. Establishment of budget projections:

ANNUALLY, BASED ON THE AUDIT REPORT ISSUED BY THE MINISTRY OF FINANCE REGARDING THE PROPOSED BUDGET FOR EXPENSES TO ENSURE MARITIME SAFETY, THE MINISTRY OF TRANSPORT NOTIFIES THE VIETNAM MARITIME ADMINISTRATION TO PREPARE THE BUDGET FOR EXPENSES TO PROVIDE PUBLIC SERVICES TO ENSURE MARITIME SAFETY, WHICH IS SUBMITTED TO THE MINISTRY OF TRANSPORT FOR REVIEW AND COMBINED INTO THE NATIONAL BUDGET OF THE MINISTRY OF TRANSPORT TO BE SENT TO THE MINISTRY OF FINANCE FOR COMBINATION IN ACCORDANCE WITH THE LAW ON THE STATE BUDGET.

Article 16. Settlement of State Budget Funds for Support

BASED ON THE ANNUAL BUDGET FOR EXPENSES TO PROVIDE PUBLIC SERVICES TO ENSURE MARITIME SAFETY ASSIGNED BY THE AUTHORIZED BODY, THE MINISTRY OF TRANSPORT ALLOCATES THE BUDGET TO THE VIETNAM MARITIME ADMINISTRATION; SIMULTANEOUSLY, IT COMBINES THE BUDGET WITH THE NATIONAL BUDGET OF THE MINISTRY OF TRANSPORT AND SENDS IT TO THE MINISTRY OF FINANCE FOR REVIEW IN ACCORDANCE WITH THE REGULATIONS.

AFTER RECEIVING THE MINISTRY OF FINANCE'S COMMENTARY ON THE BUDGET ALLOCATION PLAN FOR THE STATE BUDGET INCOME AND EXPENDITURE, THE MINISTRY OF TRANSPORT ASSIGNS THE BUDGET FOR EXPENSES TO PROVIDE PUBLIC SERVICES TO ENSURE MARITIME SAFETY TO THE VIETNAM MARITIME ADMINISTRATION SO THAT THE VIETNAM MARITIME ADMINISTRATION CAN ASSIGN THE PLAN AND PLACE ORDERS FOR MARITIME SAFETY COMPANIES TO PROVIDE SUCH SERVICES; SIMULTANEOUSLY, IT SENDS THE INFORMATION TO THE MINISTRY OF FINANCE AND THE STATE TREASURY WHERE THE ACCOUNTS ARE OPENED FOR COOPERATION IN IMPLEMENTATION.

Article 12. ASSIGNING THE PLAN TO PROVIDE PUBLIC SERVICES TO ENSURE MARITIME SAFETY FROM MARITIME SAFETY FEES:

1. BASED ON THE BUDGET INCOME AND EXPENDITURE PLAN FOR MARITIME SAFETY FEES ALLOCATED AND AFTER RECEIVING THE MINISTRY OF TRANSPORT'S REVIEW ON THE PLAN TO PROVIDE PUBLIC SERVICES TO ENSURE MARITIME SAFETY, THE VIETNAM MARITIME ADMINISTRATION IMPLEMENTS THE ASSIGNMENT OF THE PLAN TO PROVIDE PUBLIC SERVICES TO ENSURE MARITIME SAFETY FOR PUBLIC TASKS PERFORMED FROM MARITIME SAFETY FEES TO TWO MARITIME SAFETY COMPANIES IN ACCORDANCE WITH CURRENT REGULATIONS; SIMULTANEOUSLY, IT SENDS THE INFORMATION TO THE MINISTRY OF TRANSPORT AND THE MINISTRY OF FINANCE FOR SUPERVISION.

2. CONTENT OF THE ASSIGNMENT PLAN:

- VOLUME OF PUBLIC SERVICES TO ENSURE MARITIME SAFETY PROVIDED BY THE COMPANY: SPECIFIED IN DETAIL BY THE VOLUME OF EACH TYPE OF PUBLIC SERVICE TO ENSURE MARITIME SAFETY AS SET OUT IN ARTICLE 3 OF THIS CIRCULAR;

- QUALITY OF PERFORMANCE;

- VALUE OF PERFORMANCE;

- Implementation period;

- ACCEPTANCE AND PAYMENT METHODS;

- RESPONSIBILITIES AND OBLIGATIONS OF THE MARITIME SAFETY COMPANY IN PERFORMING THE ASSIGNED TASKS.

- Other related contents.

Article 13. SIGNING CONTRACTS TO ORDER THE SUPPLY OF PUBLIC SERVICES TO ENSURE MARITIME SAFETY:

1. BASED ON THE BUDGET FOR EXPENSES TO COMPLEMENT THE TASKS OF DREDGING AND MAINTAINING MARITIME CHANNELS ALLOCATED AND AFTER RECEIVING THE MINISTRY OF TRANSPORT'S REVIEW ON THE PLAN TO PROVIDE PUBLIC SERVICES TO ENSURE MARITIME SAFETY, THE VIETNAM MARITIME ADMINISTRATION IMPLEMENTS THE SIGNING OF CONTRACTS TO ORDER THE SUPPLY OF PUBLIC SERVICES TO ENSURE MARITIME SAFETY FOR THE TASKS OF DREDGING AND MAINTAINING MARITIME CHANNELS TO TWO MARITIME SAFETY COMPANIES.

2. CONTENT OF THE ORDER CONTRACT:

- LIST OF MARITIME CHANNELS TO BE MAINTAINED AND DREDGED IN THE YEAR;

- QUALITY OF PERFORMANCE;

- VALUE OF PERFORMANCE;

- Implementation period;

- ACCEPTANCE AND PAYMENT METHODS;

- RESPONSIBILITIES AND OBLIGATIONS OF THE MARITIME SAFETY COMPANY IN PERFORMING THE SIGNED CONTRACT.

- Other related contents.

Article 14. METHOD OF PAYMENT FOR THE VOLUME OF PUBLIC SERVICES TO ENSURE MARITIME SAFETY COMPLETED:

1. FOR PUBLIC SERVICES TO ENSURE MARITIME SAFETY PAID FROM ANNUAL MARITIME SAFETY FEES: BASED ON THE BUDGET FOR EXPENSES TO ENSURE MARITIME SAFETY AND THE PLAN TO PROVIDE PUBLIC SERVICES TO ENSURE MARITIME SAFETY, THE VIETNAM MARITIME ADMINISTRATION NOTIFIES PORT AUTHORITIES OF THE PLAN TO TRANSFER MARITIME SAFETY FEES TO TWO MARITIME SAFETY COMPANIES FOR PAYMENT.

THE VIETNAM MARITIME ADMINISTRATION IS RESPONSIBLE FOR MANAGING THE COLLECTION OF MARITIME SAFETY FEES; MONITORING THE TRANSFER OF MARITIME SAFETY FEES FROM PORT AUTHORITIES TO TWO MARITIME SAFETY COMPANIES IN ACCORDANCE WITH THE PLAN TO PROVIDE PUBLIC SERVICES TO ENSURE MARITIME SAFETY ALLOCATED TO THE COMPANIES.

2. FOR FUNDS ALLOCATED FROM THE ANNUAL BALANCED EXPENSES OF THE CENTRAL GOVERNMENT BUDGET TO COMPLEMENT THE TASKS OF DREDGING AND MAINTAINING MARITIME CHANNELS: THE VIETNAM MARITIME ADMINISTRATION IMPLEMENTS PAYMENTS TO TWO MARITIME SAFETY COMPANIES THROUGH THE STATE TREASURY IN ACCORDANCE WITH ARTICLE 15 OF THIS CIRCULAR.

Article 15. STATE TREASURY EXPENSE CONTROL:

BASED ON THE BUDGET FOR FUNDS TO COMPLEMENT THE TASKS OF DREDGING AND MAINTAINING MARITIME CHANNELS ASSIGNED, THE VIETNAM MARITIME ADMINISTRATION IMPLEMENTS THE WITHDRAWAL OF THE BUDGET FROM THE STATE TREASURY FOR ADVANCE PAYMENTS AND PAYMENTS TO TWO MARITIME SAFETY COMPANIES IN ACCORDANCE WITH THE SIGNED CONTRACT; THE STATE TREASURY WHERE THE TRANSACTION OCCURS CHECKS THE DOCUMENTS AND IMPLEMENTS EXPENSE CONTROL BEFORE MAKING ADVANCE PAYMENTS AND PAYMENTS IN ACCORDANCE WITH THE CONTRACT BETWEEN THE VIETNAM MARITIME ADMINISTRATION AND THE MARITIME SAFETY COMPANY.

1. ADVANCE PAYMENT FOR DREDGING AND MAINTAINING MARITIME CHANNELS:

1.1. AFTER SIGNING THE CONTRACT TO PROVIDE PUBLIC SERVICES TO ENSURE MARITIME SAFETY FOR THE TASKS OF MAINTAINING AND DREDGING MARITIME CHANNELS, THE MARITIME SAFETY COMPANY IS ENTITLED TO AN ADVANCE PAYMENT OF UP TO 50% OF THE CONTRACT VALUE FOR THE YEAR TO PERFORM THE TASKS OF DREDGING AND MAINTAINING MARITIME CHANNELS.

1.2. ADVANCE PAYMENT DOCUMENTS:

- The State budget estimate withdrawal form (advance payment) of the Vietnam Maritime Administration;

- THE ORDER CONTRACT FOR THE SUPPLY OF PUBLIC SERVICES TO ENSURE MARITIME SAFETY SIGNED BETWEEN THE VIETNAM MARITIME ADMINISTRATION AND THE MARITIME SAFETY COMPANY.

- Decision on allocating the budget expenditure issued by the Ministry of Transport.

2. PAYMENT FOR ORDERING THE TASKS OF DREDGING AND MAINTAINING MARITIME CHANNELS:

2.1. REGULARLY EVERY QUARTER OR AFTER THE COMPLETION OF THE TASKS OF MAINTAINING AND DREDGING MARITIME CHANNELS, THE VIETNAM MARITIME ADMINISTRATION RECOVERS THE ADVANCE PAYMENT AND IMPLEMENTS PAYMENT FOR THE VOLUME OF COMPLETED TASKS OF DREDGING AND MAINTAINING MARITIME CHANNELS TO TWO MARITIME SAFETY COMPANIES IN ACCORDANCE WITH THE REGULATIONS.

The recovery of advance payments begins from the first payment and is completed at the final payment of the planning year following the completion of the contract between the Vietnam Maritime Administration and the Marine Safety Assurance Company.

2.2. In cases where, by December 31 each year, the dredging and maintenance volume of maritime channels has been completed and accepted according to the contract but the settlement procedures and documents have not yet been finalized, they shall be settled during the adjustment period for finalizing accounts in accordance with current regulations and consolidated into the previous fiscal year's budget settlement.

2.3. Settlement documents:

- Decision on allocating the budget estimate issued by the Ministry of Transport to the Vietnam Maritime Administration;

- Contract for ordering public service provision to ensure maritime safety signed between the Vietnam Maritime Administration and the Marine Safety Assurance Company;

- Acceptance certificate confirming the quantity and quality of work completed between the Vietnam Maritime Administration and the Marine Safety Assurance Company;

- The State budget estimate withdrawal form (actual expenditure) of the Vietnam Maritime Administration together with other lawful supporting documents as prescribed.

Article 16. Handling surplus or shortage of funds when allocating plans and ordering public service provision to ensure maritime safety:

The Vietnam Maritime Administration organizes the implementation of plan allocation and ordering of public service provision to ensure maritime safety within the scope of the state budget estimate. In case of increased volume of public service provision due to urgent tasks (as decided by the competent authority), the excess revenue from maritime safety fees can be utilized; If insufficient, the Vietnam Maritime Administration prepares a supplementary budget estimate for the next year; When allocating the annual state budget estimate, the Vietnam Maritime Administration proactively reserves funds to settle the volume completed in the previous year, and the remaining funds are allocated for the maritime safety tasks of the planning year.

Article 17. Inspection and settlement of the implementation of public service provision tasks to ensure maritime safety by the Marine Safety Assurance Company:

Annually, the two Marine Safety Assurance Companies prepare reports on the settlement of the implementation of assigned public service provision tasks; They organize the engagement of independent auditing companies to audit the annual financial statements in accordance with regulations. The audited annual financial statements are submitted to the Vietnam Maritime Administration, the Ministry of Transport, and the Ministry of Finance within the prescribed time.

The Vietnam Maritime Administration takes the lead in coordinating with relevant units of the Ministry of Transport and the Ministry of Finance to inspect and settle public service provision tasks assigned and ordered to the Marine Safety Assurance Companies in accordance with the tendering, ordering, and plan implementation regulations for production and public service provision products issued together with Decision No. 256/2006/QĐ-TTg dated November 9, 2006, of the Prime Minister.

All expenditures that do not comply with regulations must be rectified and recovered to the state budget; at the same time, those who issue incorrect expenditure orders must compensate and bear legal responsibility.

Article 18. Settlement of public service provision funding sources to ensure maritime safety:

The Vietnam Maritime Administration is responsible for preparing reports on the settlement of funding sources for implementing public service provision tasks to ensure maritime safety in accordance with the State Budget Law; these are summarized in the Vietnam Maritime Administration's settlement report and sent to the Ministry of Transport.

The Ministry of Transport shall review the settlement of the Vietnam Maritime Administration and consolidate it in the settlement of the Ministry of Transport, submitting it to the Ministry of Finance for review in accordance with the State Budget Law.

Chapter IV

FINANCIAL MANAGEMENT AT MARINE SAFETY ASSURANCE COMPANIES AND THE RESPONSIBILITY OF COMPANIES IN PROVIDING PUBLIC SERVICES

Article 19. The two Marine Safety Assurance Companies are invested by the State with necessary capital, assets, and human resources to continuously and stably provide public services to ensure maritime safety. Besides fulfilling the public service tasks assigned and ordered by the State, the Marine Safety Assurance Company may utilize capital, assets, and other resources to organize business activities in accordance with the law without affecting the assigned public service tasks and must be responsible for the efficiency of state capital and asset utilization.

Article 20. The two Marine Safety Assurance Companies are responsible for providing public services to ensure maritime safety in accordance with the assigned plan, signed contracts, and relevant laws concerning maritime safety assurance.

Article 21. Management and use of funds allocated and ordered by the State:

The funds allocated and ordered by the State for the two Marine Safety Assurance Companies to provide public services to ensure maritime safety are the operating revenues of the enterprises. The two Marine Safety Assurance Companies use the state funds to offset costs incurred in providing public services to ensure maritime safety; Record business results of public service operations in accordance with regulations. Financial management is carried out in accordance with current laws suitable for the type of enterprise registered for operation.

Article 22. The Marine Safety Assurance Company is subject to inspection, examination, and supervision by financial, tax, and national treasury agencies regarding the use of state funds and company business activities in accordance with current laws.

Chapter V

IMPLEMENTATION

Article 23. EFFECTIVE DATE

1. This Circular takes effect from October 1, 2010. The Circular No. 54/2007/TT-BTC dated May 22, 2007, of the Ministry of Finance, guiding the preparation, allocation of plans, and financial management in the field of public service provision to ensure maritime safety, and all previous provisions contrary to this Circular are abolished.

2. During the implementation process, if there are any difficulties, please report to the Ministry of Transport and relevant units for consideration and resolution by the Ministry of Finance./.