Circular No. 13/2016/TT-BCT stipulates the management of floating coal.

CIRCULAR

Regulations on Floating Coal Management 

Pursuant to Decree No. 95/2012/NĐ-CP dated November 12, 2012, of the Government, detailing the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

Implementing Directive No. 21/CT-TTg dated August 26, 2015 of the Prime Minister on strengthening state management over coal production and business activities;

At the proposal of the Director General of the Energy Administration,

The Minister of Industry and Trade promulgates this Circular on floating coal management.

Article 1. Scope of Regulation

This Circular stipulates the management of floating coal, including the collection, purchase, sale of floating coal and the volume, quality, and purchase price of floating coal.

Article 2. Applicability

This Circular applies to agencies, organizations, and individuals involved in the management, collection, purchase, and sale of floating coal.

Article 3. Explanation of Terms

In this Circular, the following terms shall be understood as follows:

1. Floating coal: is coal eroded and washed away by rain and floods from exposed seams, mining areas, waste disposal sites, coal storage facilities, coal gathering points, and coal transfer points along the flow of rivers, streams, ditches, and ravines outside the management and protection boundaries of units under the Vietnam National Coal-Mineral Industries Group (VINACOMIN) and the Northern East Corporation collected by collectors.

2. Coal according to Vietnamese Standards (VNS):is coal meeting the quality standards issued by competent state authorities.

3. Coal according to Corporate Standards (CS):is coal meeting the quality standards established and issued by VINACOMIN and the Northern East Corporation.

4. Collector: is an organization or individual collecting floating coal.

5. Purchasing unit:is a subsidiary or company under VINACOMIN and the Northern East Corporation that has the necessary conditions, capacity, and is assigned the task of purchasing by VINACOMIN and the Northern East Corporation.

Article 4. Principles of Floating Coal Management

1. Floating coal outside the portion reserved for direct use by the collector (if any) may only be sold directly to the purchasing unit.

2. The purchase of floating coal by VINACOMIN and the Northern East Corporation is not aimed at profit, but mainly to reduce coal resource losses and help prevent illegal coal trading.

Article 5. Volume, Quality, and Purchase Price of Floating Coal

1. The volume and quality of floating coal serving as the basis for settlement between the purchasing unit and the collector shall be determined based on mutual agreement between the collector and the purchasing unit, referencing the quality standards of coal according to VNS or CS; if no agreement can be reached, it shall be determined using equipment and means recognized by competent state authorities.

2. The purchase price of floating coal is the selling price (excluding VAT) of VINACOMIN and the Northern East Corporation for domestic users, established and announced by VINACOMIN and the Northern East Corporation for each type of coal according to VNS or CS, minus all costs and taxes payable by VINACOMIN and the Northern East Corporation as prescribed.

Article 6. Responsibilities of VINACOMIN and the Northern East Corporation

1. Select subsidiaries and companies with the necessary conditions and capacity to undertake the task of purchasing floating coal and widely announce this through local mass media.

2. Direct the purchasing unit (in collaboration with the local government where the unit operates) to select appropriate purchasing points and methods suitable for specific conditions in each area, ensuring convenience for collectors and publicly announcing this information through local mass media.

3. Direct the purchasing unit to organize effective purchasing operations; arrange temporary coal storage areas; equip sufficient equipment and means meeting the prescribed standards at each purchasing point to facilitate volume and quality determination; publicly announce at each purchasing point the method of determining volume and quality, and the regular purchasing schedule (every five days, ten days, fifteen days, etc., depending on specific conditions).

4. Publicly announce the purchase price of floating coal at each purchasing point.

5. Maintain records of purchased floating coal; issue separate payment confirmation certificates for purchased floating coal; pay the collector the purchase price in cash or by bank transfer within five working days from the date of purchase and sale, in accordance with regulations. Costs of purchasing floating coal and revenue from its sale are recorded in the business results of VINACOMIN and the Northern East Corporation.

6. Review and amend internal regulations to strictly prevent and thoroughly address instances of collusion and diversion of coal under the guise of floating coal.

7. Twice a year (at the end of the first six months and the full year), prepare separate reports on the implementation of floating coal purchasing activities and submit them to the People's Committee of the province or centrally-administered city where floating coal exists, the Ministry of Industry and Trade, and the Ministry of Natural Resources and Environment (the report submission deadline is no later than fifteen days after the reporting period).

The content of the report on the implementation of floating coal purchasing activities includes:

a) Results of floating coal purchasing activities by each purchasing unit's area (volume, quality, purchase price, etc.);

b) Observations and evaluations of compliance with floating coal management regulations, and recommendations (if any).

Article 7. Responsibilities of the People's Committee of the commune or ward where coal drifts exist.

1. Create favorable conditions for units purchasing coal drifts to fulfill their assigned tasks effectively.

2. Widely disseminate, publicize, mobilize, and guide residents under its management to implement this Circular well.

3. Coordinate with purchasing units in selecting and arranging collection points for coal drifts within the managed area; establish a record to monitor the list of collectors and supervise the collection activities of coal drifts within the area.

4. Depending on specific conditions, stipulate registration and declaration procedures for collectors based on the principles of simplicity, transparency, ease of implementation, and minimizing cumbersome administrative procedures that cause difficulties for collectors.

5. Inspect, confirm, and be responsible for the confirmation of the origin of collected coal drifts from collectors.

Article 8. Responsibilities of organizations and individuals collecting coal drifts.

1. Register or declare with the People's Committee of the commune or ward where coal drifts exist regarding participation in collection and only proceed with collection after being confirmed by the People's Committee of the commune or ward.

2. When selling collected coal drifts to purchasing units, present the confirmation of the People's Committee of the commune or ward regarding the origin of the collected coal.

Article 9. Responsibilities of the People's Committee of the province or centrally governed city where coal drifts exist.

1. Delegate the People's Committee of the commune or ward where coal drifts exist to guide the confirmation of the origin of coal drifts within the area according to Clause 5 of Article 7 of this Circular.

2. Direct relevant agencies to coordinate with TKV and the Northern General Corporation to inspect, detect, and promptly handle violations related to the collection, purchase, sale, and management of coal drifts.

Article 10. Effective Date

This Circular takes effect from August 25, 2016, and replaces Decision No. 29/2008/QĐ-BCT dated August 22, 2008, issued by the Minister of Industry and Trade on regulations governing the management of floating coal sources in Quang Ninh Province.

Article 11. Implementation Organization

1. Agencies, organizations, and individuals involved in the management, collection, purchase, and sale of coal drifts are responsible for implementing this Circular.

2. The Ministry of Industry and Trade shall take the lead and coordinate with relevant ministries, sectors, and the People's Committee of the province or centrally governed city where coal drifts exist to periodically organize inspections of the implementation of this Circular.

3. In case of any difficulties during implementation, organizations and individuals concerned shall promptly report in writing to the Ministry of Industry and Trade for consideration and resolution.

                                                                                                            MINISTER

                                                                                                           (Signed)

                                                                                                           Trần Tuấn Anh