Circular No. 119 TC/GTBĐ stipulates the management regime for maritime security service fees revenue and expenditures for ensuring maritime safety in Vietnam.

CIRCULAR

REGULATING THE MANAGEMENT SYSTEM FOR REVENUE FROM MARITIME SAFETY FEES AND EXPENDITURE FOR VIETNAMESE MARITIME SAFETY ACTIVITIES Maritime and expenditure for ensuring maritime safety activities Vietnamese Maritime

- BASED ON THE CONCLUSIONS OF THE PRIME MINISTER REGARDING THE DIRECTION FOR THE DEVELOPMENT OF THE VIETNAMESE SHIPPING INDUSTRY, AS STATED IN THE OFFICE OF THE GOVERNMENT'S ANNOUNCEMENT NO. 36/TB ON MARCH 16, 1994.

- BASED ON DECISION NO. 1950/QĐ-TCCB ON OCTOBER 28, 1994 OF THE MINISTER OF TRANSPORTATION REGARDING THE ESTABLISHMENT OF THE VIETNAMESE MARITIME SAFETY AGENCY.

TO UNIFORMLY MANAGE THE COLLECTION OF MARITIME SAFETY FEES AND THE DIRECT EXPENDITURE FOR VIETNAMESE MARITIME SAFETY WORKS, THE MINISTRY OF FINANCE REGULATES THE FOLLOWING SPECIFIC POINTS.

A- GENERAL PROVISIONS

1\. THE REVENUE FROM MARITIME SAFETY FEES (MSF) IS THE NATIONAL REVENUE COLLECTED FROM DOMESTIC AND FOREIGN WATERBORNE VESSELS ENTERING AND LEAVING VIETNAMESE SEAPORTS, AIMED AT COVERING PART OF THE COSTS FOR DREDGING, MAINTENANCE, AND REPAIR OF SEAPORT APPROACH CHANNELS, NAVIGATION CHANNELS ADJUSTMENT, OBSTRUCTION REMOVAL, AND THE MAINTENANCE OF THE MARITIME SIGNALING SYSTEM.

2\. VIETNAMESE MARITIME SAFETY GUARANTEE (VMSG), ALSO KNOWN AS VIETNAMESE MARITIME SAFETY GUARANTEE (VMSGVN), IS A NATIONAL ECONOMIC ORGANIZATION RESPONSIBLE FOR ENSURING MARITIME SAFETY IN VIETNAMESE MARITIME AREAS, CONTINENTAL SHELF, AND EXCLUSIVE ECONOMIC ZONE. IT COLLECTS MSF THROUGH PORT AUTHORITIES. THE PORT AUTHORITY MSF REVENUE MUST BE SUBMITTED TO THE STATE BUDGET ACCORDING TO THE PRESCRIBED RATIO, WITH THE REMAINING AMOUNT TRANSFERRED TO THE ACCOUNT OF THE VMSGVIETNAM OFFICE AT THE STATE TREASURY (REFERRED TO AS THE VMSGVN REVENUE).

3\. ANNUALLY, BASED ON THE PLAN FOR MSF COLLECTION AND THE PLAN FOR VMSGVN EXPENDITURE, WHICH HAVE BEEN AGREED UPON IN WRITING BY THE MINISTRY OF FINANCE AND THE MINISTRY OF TRANSPORTATION, THE VIETNAMESE MARINE DEPARTMENT WILL ISSUE THE PLAN FOR MSF COLLECTION TO PORT AUTHORITIES AND THE PLAN FOR VMSGVN EXPENDITURE TO THE VMSGVIETNAM OFFICE.

THE ANNUAL EXPENDITURE PLAN OF VMSGVN IS ARRANGED WITHIN THE SCOPE OF THE MSF REVENUE PLAN TRANSFERRED FROM PORT AUTHORITIES TO THE VMSGVIETNAM OFFICE. IF THE REVENUE PLAN STILL HAS A SURPLUS AFTER MEETING THE APPROVED EXPENDITURE PLAN, THE REMAINING AMOUNT MUST BE SUBMITTED TO THE STATE BUDGET.

B\. SPECIFIC PROVISIONS

I\. OBJECTS OF COLLECTION, RATE OF COLLECTION - COLLECTION DOCUMENTS

1\. THE OBJECTS OF COLLECTION AND THE RATE OF MSF COLLECTION ARE REGULATED IN THE DECISION ON SEAPORT FEES ISSUED BY THE AUTHORIZED STATE PRICE CONTROL AGENCY.

2\. THE COLLECTION DOCUMENTS FOR MSF ARE ISSUED BY THE MINISTRY OF FINANCE (GENERAL DEPARTMENT OF TAXATION) ALONG WITH THE PORT AUTHORITY COLLECTION DOCUMENTS. PORT AUTHORITIES RECEIVE THE COLLECTION DOCUMENTS FROM LOCAL TAX AUTHORITIES AND MANAGE AND USE THEM IN ACCORDANCE WITH CURRENT MINISTRY OF FINANCE REGULATIONS.

II\. MANAGEMENT OF COLLECTION AND EXPENDITURE AND SUBMISSION TO THE STATE BUDGET

1\. PLANNING WORK

a\. PLAN FOR MSF COLLECTION: ANNUALLY, ALONG WITH THE PLAN FOR PORT FEE COLLECTION, PORT AUTHORITIES ESTABLISH THE PLAN FOR MSF COLLECTION FROM WATERBORNE VESSELS ENTERING AND LEAVING SEAPORTS UNDER THEIR MANAGEMENT AND SUBMIT THE PLAN TO THE VIETNAMESE MARINE DEPARTMENT, WHILE MONITORING THE PLAN WITH THE VMSGVIETNAM OFFICE.

b\. PLAN FOR VMSGVN EXPENDITURE

BASED ON THE REQUIREMENTS OF VMSGVN WORKS, THE VMSGVIETNAM OFFICE ESTABLISHES THE ANNUAL EXPENDITURE PLAN AND SUBMITS IT TO THE VIETNAMESE MARINE DEPARTMENT. THE CONTENT OF THE EXPENDITURE PLAN INCLUDES:

- REGULAR EXPENSES:

+ SALARIES AND ALLOWANCES

+ SOCIAL INSURANCE AND HEALTH INSURANCE

+ REGULAR MAINTENANCE OF EQUIPMENT AND VEHICLES

+ TRAVEL EXPENSES

+ CONFERENCE AND ENTERTAINMENT EXPENSES

+ OFFICIAL BUSINESS EXPENSES

+ OPERATIONAL EXPENSES INCLUDING LIGHTING, NAVIGATION CHANNEL SURVEY, REPORTING, BUOY INSTALLATION, SUPPLY TO ISLAND LIGHTHOUSES, AND OTHER EXPENSES.

- IRREGULAR EXPENSES:

+ OBSTRUCTION REMOVAL AND NAVIGATION CHANNEL ADJUSTMENT

+ DREDGING, MAINTENANCE, AND LARGE-SCALE REPAIR OF SEAPORT APPROACH CHANNELS

+ LARGE-SCALE REPAIR OF FIXED ASSETS

c\. ANNUALLY, BASED ON THE REPORTS OF THE MSF COLLECTION PLAN AND THE VMSGVN EXPENDITURE PLAN FROM THE UNITS, THE VIETNAMESE MARINE DEPARTMENT IS RESPONSIBLE FOR REVIEWING, ADJUSTING, AND COMBINING THE REPORTS INTO A PLAN TO SUBMIT TO THE MINISTRY OF TRANSPORTATION AND THE MINISTRY OF FINANCE. AFTER RECEIVING WRITTEN AGREEMENT FROM THE MINISTRY OF FINANCE AND THE MINISTRY OF TRANSPORTATION ON THE MSF REVENUE PLAN, THE VMSGVN EXPENDITURE PLAN, AND THE SUBMISSION PLAN TO THE STATE BUDGET, THE VIETNAMESE MARINE DEPARTMENT WILL ISSUE THE OFFICIAL PLAN FOR MSF COLLECTION, EXPENDITURE, AND SUBMISSION TO THE STATE BUDGET TO THE UNITS.

2\. ORGANIZATION OF MSF COLLECTION:

- PORT AUTHORITIES ARE RESPONSIBLE FOR DIRECTLY COLLECTING MSF ACCORDING TO THE PLAN ISSUED BY THE VIETNAMESE MARINE DEPARTMENT.

- PORT AUTHORITIES ARE RESPONSIBLE FOR SUBMITTING THE MSF REVENUE TO THE STATE BUDGET ACCORDING TO THE RATIO AND REGULATIONS SET OUT IN POINT 4 BELOW AND TIMELY TRANSFERRING THE REMAINING AMOUNT TO THE ACCOUNT OF THE VMSGVIETNAM OFFICE.

- THE COOPERATION RELATIONSHIP BETWEEN THE VMSGVIETNAM OFFICE AND PORT AUTHORITIES IS REGULATED BY THE VIETNAMESE MARINE DEPARTMENT, WHICH DIRECTLY SUPERVISES AND MONITORS THE UNITS' ACTIVITIES TO ENSURE THE COLLECTION OF MSF REVENUE.

- TO ENCOURAGE DIRECT COLLECTION UNITS, PORT AUTHORITIES ARE PERMITTED TO RETAIN 0.5% OF THE TOTAL MSF REVENUE COLLECTED TO COVER COLLECTION COSTS AND INCENTIVES FOR DIRECT PARTICIPANTS IN THE COLLECTION PROCESS. THIS AMOUNT IS DEDUCTED FROM THE AMOUNT TRANSFERRED TO THE VMSGVIETNAM OFFICE.

3\. MANAGEMENT OF EXPENDITURE:

- THE VMSGVIETNAM OFFICE AND ITS AFFILIATES ARE REQUIRED TO OPEN ACCOUNTS AT THE STATE TREASURY WHERE THEY ARE LOCATED AND STRICTLY COMPLY WITH THE STATE TREASURY REGULATIONS ON ACCOUNT OPENING AND USE, AND FUNDS MANAGEMENT.

- THE EXPENDITURE OF THE VMSGVIETNAM OFFICE IS IMPLEMENTED ACCORDING TO THE FOLLOWING PRINCIPLES:

+ THE VMSGVIETNAM OFFICE REGISTERS THE APPROVED EXPENDITURE PLAN WITH THE STATE TREASURY AND PROCURES FUNDS FOR VMSGVN ACTIVITIES THROUGH THE STATE TREASURY SYSTEM.

+ FOR REGULAR EXPENSES:

BASED ON THE EXPENDITURE PLAN APPROVED BY THE VIETNAMESE MARINE DEPARTMENT, THE VMSGVIETNAM OFFICE NOTIFIES THE STATE TREASURY OF THE MONTHLY AND QUARTERLY EXPENDITURE PLANS FOR ITS AFFILIATES. BASED ON THIS, THE STATE TREASURY PROVIDES FUNDS TO THE AFFILIATES AND THE VMSGVIETNAM OFFICE FROM THE MSF REVENUE OF THE VMSGVIETNAM OFFICE.

+ FOR IRREGULAR EXPENSES:

As the contents of non-recurring expenditure items such as major dredging and repair of channels, major repairs of fixed assets, and equipment for maritime safety assurance systems have the nature of construction and development investment, the Vietnam Marine Safety Administration is responsible for managing, inspecting, and supervising all activities related to channel dredging contracts, major repairs of marine safety infrastructure projects, or internal units performing such tasks. The State Treasury will manage and settle payments to marine safety units or contractors based on approved non-recurring expenditure budgets, following the same procedures as those for managing and disbursing construction and development investment capital.

4/ Collection to the State Budget:

- Port Supervision fees collected at port supervision offices must be submitted to the State Budget at 20%, with the remaining amount, after deducting a bonus of 0.5% of total revenue for the port supervision office, transferred to the account of the Vietnam Marine Safety Administration (79.5%).

- Monthly, along with declaring and paying port supervision fees, port supervision offices are responsible for declaring and paying maritime safety service fees to local tax authorities.

- Local tax authorities are tasked with monitoring and urging port supervision units to submit monthly revenues from maritime safety service fees according to the prescribed ratio to the State Budget.

- For the Marine Safety Administration, after annual settlement approval, if the revenue from maritime safety service fees received from port supervision offices exceeds the approved budget for marine safety expenses, the excess amount must be paid into the State Budget by the Vietnam Marine Safety Administration.

III- ACCOUNTING REGIME AND SETTLEMENT REPORTS:

1/ The Vietnam Marine Safety Administration, as an economic public institution, shall apply the accounting regime for public institutions as stipulated in Decision No. 257 TC/CĐKT dated June 1, 1990 issued by the Ministry of Finance.

2/ Quarterly and annually, the Vietnam Marine Safety Administration must prepare and submit settlement reports to the Vietnam Maritime Administration under the Ministry of Transport and the Ministry of Finance.

The content and basis for preparing settlement reports include:

a. Settlement of revenue from port supervision fees.

- The Vietnam Marine Safety Administration shall cooperate with port supervision units to review and reconcile revenue from port supervision fees, determine the amount of revenue from port supervision fees, the amount transferred to the Vietnam Marine Safety Administration from port supervision offices, the amount due to be paid and actually paid into the State Budget for port supervision fees, serving as the basis for preparing settlement reports on revenue from port supervision fees.

For port supervision offices, when preparing and submitting quarterly and annual settlement reports as prescribed in Circular No. 01 TC/GTBĐ dated January 7, 1993, they must also report in detail the revenue from port supervision fees consistent with the figures reconciled with the Vietnam Marine Safety Administration.

b. Settlement of expenditures.

The settlement of expenditures by the Vietnam Marine Safety Administration must fully reflect regular and non-recurring expenditure items according to the specified categories in the State Budget for public institutions, compared with the approved expenditure plan, analyzing the implementation of assigned targets.

3/ If the Vietnam Marine Safety Administration engages in other business services utilizing idle labor, it must organize separate accounting and fulfill the obligation to pay full taxes, reporting settlements according to the indicators stipulated in Circular No. 01 TC/HCVX dated January 4, 1994 issued by the Ministry of Finance "Issuing financial management regulations for public institutions with income" and Circular No. 25 TC/TCT dated March 28, 1994 issued by the Ministry of Finance "Guidelines for supplementing certain points of Circular No. 01 TC/HCVX".

4/ Deadline for submission of settlement reports: Quarterly settlement reports must be submitted within 15 days after the end of the quarter, and annual settlement reports must be submitted within 30 days of the start of the next year.

5/ Based on the annual settlement report of the Vietnam Marine Safety Administration, the Vietnam Maritime Administration in coordination with the Ministry of Finance and the Ministry of Transport will conduct settlement inspections and issue settlement approval notifications to the unit according to current classification and regulations.

IV- REWARDS AND PENALTIES

1/ Subsidiary units of the Vietnam Marine Safety Administration that engage in ancillary production and business may establish two reward and welfare funds based on their production and business results after fulfilling all statutory tax obligations.

2/ The Vietnam Marine Safety Administration may allocate rewards according to the current system for economic public institutions.

3/ In case the Vietnam Marine Safety Administration violates financial management policies and regulations, or fails to properly remit revenues to the State Budget, penalties will be imposed, reducing the allocation to the unit's fund according to current state regulations.

V- IMPLEMENTATION PROVISIONS

This Circular takes effect from January 1, 1995. All previous regulations concerning revenue and expenditure for Vietnam's maritime safety operations that conflict with this Circular are null and void.

During implementation, if there are any difficulties, units are advised to promptly report them to the Ministry of Finance for study and resolution.