Circular No. 143/2007/TT-BTC guiding the implementation of Decree No. 196/2004/NĐ-CP dated December 2, 2004 of the Government detailing the implementation of the National Reserve Law.

CIRCULAR

Guidelines for implementing Decree No. 196/2004/NĐ-CP dated December 2, 2004 of the Government detailing the implementation of the National Reserve Law

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Pursuant to the National Reserve Law;

Pursuant to the Government Decree No. 196/2004/NĐ-CP dated December 2, 2004 detailing the implementation of the National Reserve Ordinance;

Pursuant to 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;

The Ministry of Finance hereby issues the following guidelines:

I. GENERAL PROVISIONS

Thông tư này quy định chi tiết khoản 4 Điều 38 Luật Thủy sản số 18/2017/QH14 đã được sửa đổi, bổ sung tại điểm c khoản 21 Điều 14 Luật số 146/2025/QH15.

These Circulars guide the implementation of Decree No. 196/2004/NĐ-CP dated December 2, 2004 of the Government detailing the implementation of the National Reserve Law regarding activities of building and implementing plans, budget management mechanisms for national reserve budgets; building a system of material and technical infrastructure to manage the national reserve; managing the import, export, storage, and protection of national reserve goods.

Thông tư này áp dụng đối với tổ chức, cá nhân có liên quan đến hoạt động kinh doanh đối tượng thủy sản nuôi chủ lực trên lãnh thổ Việt Nam.

These Circulars apply to agencies, organizations, and individuals related to the construction, organization, and management of the national reserve.

II. SPECIFIC PROVISIONS

1. Plan and Budget of the National Reserve Fund 

1.1. National Reserve Plan

The construction of the national reserve plan shall be carried out in accordance with Article 12 of the National Reserve Law and Article 7 of Decree No. 196/2004/NĐ-CP dated December 2, 2004 of the Government detailing the implementation of the National Reserve Law (hereinafter referred to as Decree No. 196/2004/NĐ-CP); some specific contents are as follows:

- The annual comprehensive plan for importing and exporting national reserve goods includes the level of reserves (quantity and value of each item), quantity and value of imports, exports, and end-of-period inventory (Annex 1 attached hereto).

- The plan to increase national reserve goods includes the quantity and value of items needed to be supplemented into the reserve during the planning year, detailed by each item according to specifications and code numbers (Annex 2 attached hereto).

- The plan to reduce national reserve goods includes the quantity and value of items needed to be reduced due to no longer having the need to continue storing or due to changes in requirements about the quantity and list of national reserve goods during the planning year, detailed by each item according to specifications and code numbers (Annex 3 attached hereto).

- The plan for rotating national reserve goods includes the list, quantity, and value of items needed to be imported and exported for rotation, detailed by each item according to specifications and code numbers. In cases where the list or specifications of imported items differ from those of items due for export under the rotation plan, the reasons must be clearly stated. During the implementation process, if it is necessary to change items from the plan, the relevant ministries and sectors managing national reserve goods must provide clear explanations and report to the competent authority for approval by the Prime Minister (Annex 4 attached hereto).

- Investment plan for developing material and technical infrastructure: Based on the approved warehouse system planning and existing material and technical infrastructure, ministries and sectors managing national reserve goods shall develop plans to construct new warehouses to ensure design requirements and modern preservation technology suitable for each type of goods; liquidate warehouses not included in the planning, old, outdated, and unable to ensure preservation requirements  a) A letter of request accompanied by the registration form for national technical regulations for national reserve goods in accordance with the guidelines of the Ministry of Science and Technology;

- Based on assigned tasks, ministries and sectors managing national reserve goods are responsible for reviewing the list of items, total national reserve levels, and developing annual national reserve plans to be submitted to the competent authority before July 10 each year for consolidation and submission to the Government as prescribed.

1.2. Establishment, Allocation, and Assignment of Budget for National Reserves

- Along with establishing the national reserve plan, ministries and sectors managing national reserve goods establish the national reserve budget plan annually including revenue from selling national reserve goods, expenditure for increasing national reserves, and expenditure for national reserve operations, consolidated into their own departmental budget, sent to the Ministry of Planning and Investment, and the Ministry of Finance for consolidation of the national reserve budget to be decided by the competent state authority.itself to compile the state budget for B- Based on the decision of the competent state authority on assigning the plan and budget for national reserves, the heads of ministries and sectors managing national reserve goods allocate and assign the state budget plan and budget to subordinate national reserve units and organize guidance, inspection, and implementation; in cases of urgent tasks arising during the year as decided by the competent authority, supplementary budget execution shall be carried out in accordance with the laws on state budget management. Investment, the Ministry of Finance shall aggregate the state budget estimate for national reserves and submit it to the competent state agency for decision.

- Based on the decision of the competent state authority on assigning the plan and budget for national reserves, the heads of ministries and sectors managing national reserve goods allocate and assign the state budget plan and budget to subordinate national reserve units and organize guidance, inspection, and implementation; in cases of urgent tasks arising during the year as decided by the competent authority, supplementary budget execution shall be carried out in accordance with the laws on state budget management. entrust the plan and state budget estimate for national reserve funds, the Head of the Ministry or sector managing national reserve goods shall allocate and entrust the state budget plan and estimate to subordinate national reserve units and organizations, directing, guiding, and supervising implementation; in cases where urgent tasks arise during the year according to the decision of the competent authority, supplementary state budget estimates shall be implemented in accordance with the laws on state budget management.

2. Importing and Exporting National Reserve Goods

2.1. Importing, Exporting, and Rotating National Reserve Goods

a) Importing, exporting, and rotating national reserve goods according to the plan shall be implemented in accordance with Clause 1, Article 10 of Decree No. 196/2004/NĐ-CP.

b) Using national reserve goods for import and export based on the Prime Minister's decision in the following cases: preventing and mitigating the consequences of natural disasters, fires, epidemics; ensuring national defense and security requirements; participating in market stabilization, contributing to macroeconomic stability; meeting special requirements for aid, loans, or debt repayment in foreign relations or to fulfill other urgent and critical tasks of the State.

c) Using national reserve goods for import and export based on the Prime Minister's authorization as stipulated at point a and point c, Clause 3, Article 10; and in other cases specified in Clause 5, Article 10 of Decree No. 196/2004/NĐ-CP, including:

- Immediate import and export of national reserve goods to meet social security, national defense, disaster prevention and mitigation, fire control, and epidemic prevention requirements.

- Import and export of national reserve goods for confidential services to ensure national defense and security.

- Import and export in other urgent and critical cases.

 After implementing the export of goods in the above cases, ministries and sectors managing national reserve goods must report to the Ministry of Planning and Investment and the Ministry of Finance for consolidation and submission to the Prime Minister for immediate replenishment of the national reserve fund in the same year the goods were exported.

d) In the case where state reserve goods are temporarily exported as machinery, equipment, or means to implement newly generated tasks as stipulated in point b, Clause 3, Article 10 of Decree No. 196/2004/NĐ-CP: Upon receiving the decision or order for exporting state reserve goods from the competent authority (in original form, telegrams, or fax), the Head of the State Reserve Unit shall immediately carry out the export procedures according to regulations. After completing the task, the unit that receives and uses state reserve goods shall be responsible for recovering, maintaining, and returning the goods to the State Reserve Unit that exported them to complete the warehouse entry procedures and store them according to regulations, ensuring that goods exported from where they were originally stored are returned there. When re-entering the warehouse, the State Reserve Unit that exported the goods shall cooperate with the receiving unit and relevant functional agencies to establish a Council to inspect and evaluate the quality of the goods in accordance with the provisions of the law and report the results to the Ministry or sector managing state reserve goods. If machinery, equipment, or means are not of sufficient quality after recovery,development they shall be handled by the Head of the Ministry or sector managing state reserve goods in accordance with the guidance provided in item 3.1, Section II of this Circular.

2.2. Methods of purchasing and selling state reserve goods

Methods of purchasing and selling state reserve goods as prescribed in Article 24 of the National Reserve Law; point a, Clause 1, Article 10 of Decree No. 196/2004/NĐ-CP shall be implemented as follows:

a) In the case of tendering to purchase state reserve goods or supplementing contracts for tenders with similar contents signed within six months prior, it shall be carried out in accordance with the Public Procurement Law and guiding documents thereof. The Head of the Ministry or sector managing state reserve goods shall delegate and decentralize to subordinate State Reserve Units to implement in accordance with the law.

b) In the case of auctioning state reserve goods, it shall be carried out in accordance with the laws on the sale of state assets through auctions. The Head of the unit selling state reserve goods through auction shall be responsible for signing a power of attorney contract for auction sales with organizations authorized to sell state assets. In cases where the organization authorized to sell refuses or fails to meet the requirements for auctioning state reserve goods, the State Reserve Unit selling the goods shall request the Head of the Ministry or sector or the Director of the National Reserve Administration to establish an auction committee to organize the auction sale of state reserve goods in accordance with the law. Auction costs shall be included in the budget estimate allocated for national reserve management activities assigned to the State Reserve Unit. 

c) In the case of purchasing or selling state reserve goods without using tendering or auction methods, the reserve units must follow the decisions of the competent authorities, ensuring compliance with the legal regulations on national reserve management, signing economic contracts, accounting vouchers...

d) The establishment of pricing plans, evaluation, and submission to the competent authority for approval of the tender price in procurement tenders, the starting price in auction sales, the maximum purchase price limit, the minimum sale price limit, or specific prices in the purchase and sale of state reserve goods shall be carried out in accordance with the laws on public procurement, asset auctions, the Price Ordinance, the National Reserve Ordinance, and related state regulations.

3. Handling of state reserve goods with reduced quality, loss, damage, or theft

3.1. For goods with reduced quality

- Upon discovering state reserve goods with reduced quality, the Head of the State Reserve Unit shall direct immediate measures to prevent further damage; prepare inspection records, verify, and determine the state reserve goods with reduced quality, clarify the cause, and identify responsibility (Annex 5 attached to this Circular); at the same time, take measures to restore, maintain, and repair the goods to ensure they meet the required quality standards for re-entry into storage; if restoration, maintenance, and repair still fail to meet the required quality standards, the State Reserve Unit shall report to the Ministry or sector managing state reserve goods to request the Ministry of Finance and the Ministry of Planning and Investment to consider submitting to the Prime Minister for permission to allocate or sell the goods to purchase new ones.

- The Head of the Ministry or sector managing state reserve goods shall be responsible for organizing reviews and inspections of the usage period of state reserve goods in storage, planning for warehouse exit at least one year before the usage period, ensuring that the state reserve goods exiting the warehouse do not exceed their usage period.

In special cases, state reserve goods exceeding their usage period or with reduced quality that cannot be used anymore must be destroyed, such as medical drugs, veterinary drugs, plant protection chemicals, crop seeds... Based on reports from the State Reserve Unit, the Ministry or sector managing state reserve goods shall inspect, determine the cause, responsibility, handling plan, and propose to the Ministry of Finance and the Ministry of Planning and Investment to submit to the Prime Minister for decision-making. Based on the Prime Minister's decision, the Head of the Ministry or sector managing state reserve goods shall handle the state reserve goods in accordance with the law; issue a decision compelling those causing damage (if any) to compensate; decide to reduce capital or request the Ministry of Finance to process the reduction of capital in accordance with the guidance provided in item 3.3, Section II of this Circular.

The preparation of inspection records to verify state reserve goods with reduced quality, the establishment of a Council to handle state reserve assets, and the procedures and sequence for handling state reserve goods with reduced quality shall be carried out similarly to the handling of state reserve goods with loss, damage, or theft as specified in item 3.2, Section II of this Circular.

3.2. Goods with loss, damage, or theft

a) State reserve goods lost during storage up to or below the specified loss rate shall allow the Ministry or sector managing state reserve goods and the National Reserve Administration to reduce the national reserve capital and report the final accounts to the Ministry of Finance as prescribed.

b) State reserve goods lost beyond the specified rate, damaged, or stolen, the State Reserve Unit shall prepare an Inspection Record to verify the state reserve goods lost, damaged, or stolen (Annex 5 attached to this Circular); establish a Council for Handling State Reserve Assets to clarify the causes leading to loss, damage, or disappearance, and propose measures for handling.

The composition of the Council for Handling Assets of the Unit includes:

- A representative of the leadership of the State Reserve Unit serving as Chairman of the Council.

- A leader of the financial accounting department serving as a permanent member.

- Leaders of relevant departments within the unit serving as members.

- A representative of the local police agency serving as a member (in cases where State Reserve assets are lost).

The head of the State Reserve Unit shall consider the recommendations of the Council for Handling Assets of the Unit and prepare a document requesting the head of the Ministry or sector managing State Reserve assets to decide on handling according to their authority (attached with related minutes, reports on the work results of the Council for Handling Assets of the Unit; inthe case due to objective reasons there must be confirmation from specialized agencies and local authorities).

c)The head of the Ministry or sector managing State Reserve assets shall establish a Council for Handling Excessive Losses, Damage, or Disappearance of State Reserve Assets at the ministry or sector level to propose measures for handling. The composition of the Council for Handling Assets includes:

- A representative of the leadership of the Ministry or sector managing State Reserve assets serving as Chairman of the Council.

- A leader of the financial accounting department serving as a permanent member.

- Leaders of relevant departments serving as members.

The head of the Ministry or sector managing State Reserve assets shall consider the recommendations of the Council for Handling Assets, issue a decision compelling the person causing damage to compensate; issue a decision reducing capital or request the Ministry of Finance to handle the reduction of capital for each specific case in accordance with the guidance provided in point 3.3 Section II of this Circular.

3.3. Decision on Handling State Reserve Assets with Excessive Losses, Damage, Reduced Quality, or Loss

a) In cases where State Reserve assets suffer excessive losses, damage, reduced quality, or loss due to subjective reasons

- Within twenty working days from the date of discovering State Reserve assets suffering excessive losses, damage, reduced quality, or loss, the head of the State Reserve Unit shall be responsible for conducting the contents of work specified in point b, clause 3.2, Section II of this Circular; within twenty working days from the date of receiving the request document of the head of the State Reserve Unit and accompanying documents, the head of the Ministry or sector managing State Reserve assets, and the Director of the National Reserve Agency shall be responsible for issuing a handling decision. The handling decision must include all contents about the name of the goods, quantity of loss, value of loss, handling deadline, handling measures, compensation method; ensuring compliance with current regulations on handling material responsibility for civil servants (if caused by civil servants).

- The compensation price is determined based on the most recent selling price (within six months from the compensation handling date) of the same type of State Reserve goods; if there is no selling price for the same type of State Reserve goods, the compensation price is based on the market price of the same type of goods at the time of determining the compensation price proposed by the State Reserve Unit and decided by the local Department of Finance where the State Reserve assets were damaged.

b) In cases where State Reserve assets suffer excessive losses, damage, reduced quality, or loss due to objective reasons

- The head of the Ministry or sector managing State Reserve assets, and the Director of the National Reserve Agency may decide to reduce capital for the amount of State Reserve assets handled at once with a loss value under three billion VND according to the accounting records, and bear responsibility for their decision while simultaneously reporting to the Minister of Finance.

- The head of the Ministry or sector managing State Reserve assets, and the Director of the National Reserve Agency report to the Minister of Finance for consideration and decision to reduce capital for the amount of State Reserve assets handled at once with a loss value from three billion VND to less than ten billion VND according to the accounting records; in cases where the loss value is ten billion VND or more, the Minister of Finance shall report to the Prime Minister for consideration and decision.

Ministries and sectors shall compile the situation of handling State Reserve assets with excessive losses, damage, reduced quality, or loss in a year and send it to the Ministry of Finance before February 15 of the following year.

4. Establishing, Issuing, and Implementing Technical Standards and Economic-Techical Norms for Managing State Reserve Assets

4.1. Authority to Establish and Issue Technical Standards and Regulations for State Reserve Assets

The National Reserve Agency is the lead agency responsible for assisting the Ministry of Finance in state management over activities in the field of standards and the field of technical regulations for State Reserve.

The establishment, review, issuance of technical standards and regulations in the field of State Reserve shall be carried out in accordance with the Law on Standards and Technical Regulations and Decree No. 127/2007/NĐ-CP dated August 1, 2007 detailing the implementation of certain provisions of the Law on Standards and Technical Regulations, specifically detailed in other documents of the Ministry of Finance and relevant ministries and sectors. 

 4.2. Economic-Techical Norms for Managing State Reserve Assets

The authority to issue economic-techical norms for managing State Reserve Assets is implemented in accordance with Clause 2, Article 15 of Decree No. 196/2004/NĐ-CP, guided as follows:

- Establishing, operating, and managing the national price database to ensure compatibility and connectivity with price database systems of ministries, sectors, localities, and other organizations and individuals;

- Organizing the review of national-level economic-techical norms established by the Ministry or sector managing State Reserve assets. National-level economic-techical norms serve as the basis for planning, preparing budget estimates, and signing contracts for the storage of State Reserve assets.

- Establishing a Council for Reviewing Economic-Techical Norms for Managing State Reserve Assets, consisting of: a representative of the leadership of the Ministry of Finance as Chairman, a representative of the leadership of the National Reserve Agency as a permanent member, representatives of relevant ministries and sectors, and representatives of leaders of relevant units under the Ministry of Finance as members. The Council's tasks include: reviewing economic-techical norms for managing State Reserve Assets; advising the Minister of Finance on establishing and implementing economic-techical norms throughout the State Reserve system; inspecting the management of economic-techical norms for managing State Reserve Assets.

b) The Ministry or sector managing State Reserve assets shall be responsible:

- Establish economic and technical standards for the storage of national reserve items directly managed, and submit them to the Ministry of Finance for review.

- Issue economic and technical storage standards after reaching agreement with the Ministry of Finance.

- Form an Economic and Technical Storage Standards Council for national reserves of the Ministry or sector, consisting of representatives from the leadership of the Ministry or sector as the Chairman; permanent members include representatives from agencies or units tasked with managing national reserves, and other members are representatives from related agencies or units. The Council's responsibilities include advising the head of the Ministry or sector on the work of establishing, issuing, and applying standards; inspecting and evaluating standard management work; recommending amendments or additions to existing standards or developing new standards.

- Implement economic and technical storage standards for national reserves within their scope of management.

- Report annually on the implementation of economic and technical storage standards for national reserves. to the Ministry of Finance before February 15 of the following year.

5. Storage of goods, warehouses storing goods, planning the system of national reserve warehouses

5.1. National reserve goods must be arranged scientifically; stored in the correct warehouse and designated location; old and new goods should be stored separately; there must be complete documentation detailing quantity, value, and changes during import, export, and storage processes (such as inventory cards, testing certificates, storage monitoring logs, etc.). Units directly responsible for storing national reserve goods must comply with the technical storage standards for national reserve goods issued by the competent authority. Ministries and sectors managing national reserve goods must base their plans for exchanging goods on the shelf life of the national reserve goods and post the date of exchange at the warehouse.

5.2. Warehouses storing national reserve goods must meet requirements suitable for the physical and chemical properties of each type of goods and the needs for storage, ensuring the safety of quantity and quality of national reserve goods. Warehouses must have appropriate and necessary equipment and facilities to serve storage, security, disaster prevention, fire protection, and other forms of damage prevention.

5.3. The system of national reserve warehouses must be planned with strict protective measures, confidentiality, and meet basic requirements such as:

- Being consistent with the requirements of socio-economic development, ensuring national defense and security at different times; ensuring readiness to respond to and mitigate the consequences of natural disasters.

- Meeting the requirements of gradually modernizing the national reserve sector, the warehouse system must be progressively equipped with modern technology and advanced management methods to ensure the effective fulfillment of national reserve objectives, functions, and tasks.

- Based on the current warehouse system, implement the warehouse network plan approved by the competent authority.

5.4. The head of the Ministry or sector managing national reserve goods directs units managing national reserves to regularly inspect the protection and storage of national reserve goods; identify and prevent violations of technical storage standards and regulations concerning the safety of quantity and quality of goods and warehouses storing national reserve goods.

6. Management of purchase capital and sale capital for national reserves

6.1. Purchase capital for national reserve goods

a) Annual purchase capital for national reserve goods includes:

- Capital allocated from the state budget to increase national reserves in the annual state budget estimate and additional budget funds (if any) decided by the Prime Minister.  - Capital from the sale of national reserve goods as decided by the Prime Minister.

The National Reserve Agency checks the documents and procedures, and submits to the Ministry of Finance for approval of capital for agencies and units under the management of ministries and sectors handling national reserve goods to purchase increased national reserve goods according to Decision No. 42/2004/QD-BTC dated April 22, 2004, of the Minister of Finance on the issuance of regulations for central government budget spending through payment orders; based on the following:

b) Capital for purchasing national reserve goods

- A request for capital from the head of the ministry or sector managing national reserve goods;

- The budget estimate approved by the competent authority;

- The decision on the purchase plan by the head of the ministry or sector managing national reserve goods;

- Approval documents for bid prices, settlement prices for direct procurement, competitive bidding, or maximum purchase prices for national reserve goods by the competent authority;

- Contracts for purchasing national reserve goods.

The Ministry of Finance provides purchase capital according to the progress recorded in the contract; if purchasing national reserve goods requires imports, capital will be provided in accordance with the payment terms in the import contract.

c) Payment of purchase capital for national reserve goods can only be made when the following conditions are met:

- A contract for purchasing national reserve goods;

- National reserve goods have been warehoused and meet quality standards, accompanied by complete invoices and documents as required;

- An acceptance certificate or inventory list signed by the head of the national reserve unit for direct purchases not through bidding;

- Approval by the head of the national reserve unit for payment.

If agencies and units managing national reserve goods have not fully utilized the increased purchase capital for national reserves in a year, the ministry or sector managing national reserve goods must submit a request for transferring the remaining budget balance to the Ministry of Finance no later than February 15 of the following year. The Ministry of Finance will consider and decide whether to transfer it for continued use in purchasing national reserve goods or to supplement the national reserve fund with cash.

d) 6.2. Sale capital for national reserve goods Ministries and sectors managing national reserve goods, the National Reserve Agency may use sale capital to implement purchases according to plans assigned by the competent authority..

In cases where temporary funding is needed to purchase seasonal national reserve goods before selling them, ministries and sectors managing national reserve goods, the National Reserve Agency may issue a request to the Ministry of Finance to temporarily allocate funds from the national reserve fund or the state budget reserve; the amount borrowed must be repaid within the same year after completing the sale of the goods.

6.3. Purchase price, sale price of national reserve goods

In cases where capital is needed to purchase seasonal national reserve goods before selling them for exchange, the Ministry or sector managing national reserve goods and the National Reserve Agency shall issue a document requesting the Ministry of Finance to consider temporary advances from the national reserve fund in cash or from the state budget reserve fund; after completing the sale and exchange of goods, the temporarily advanced amount must be repaid within the same year.

6.3. Purchase price, sale price of national reserve goods

The purchase price and sale price of national reserve goods shall be implemented in accordance with Article 17 of Decree No. 196/2004/NĐ-CP and relevant laws.

7. National budget for managing national reserves

National budget for managing national reserves is allocated in the annual budget estimate of the Ministry or sector managing national reserve goods. The expenditure content for managing national reserves is implemented in accordance with Clause 4 of Article 16 of Decree No. 196/2004/NĐ-CP, which is allocated, disbursed, and managed in accordance with the State Budget Law; some guiding contents are as follows:

7.1. Import costs, export costs, relief costs, and aid costs for national reserve goods

a) Content of costs

Import costs, export costs for national reserve goods include reasonable and necessary costs arising during the import and export process of national reserve goods, including:

 - Preparation costs for import and export: publicity, advertising, training guidance; repair, inspection of measuring instruments; purchase of tools, equipment, packaging (if any);

- Costs at warehouse gate: quality inspection of goods; weighing, measuring, counting, repackaging, pouring into bags, loading and unloading national reserve goods from transport vehicles into warehouses; from warehouses onto transport vehicles; security and protection work; night shift, overtime, interim summary, final summary costs;

- Relief and aid costs also include: printing, transportation, distribution, receipt and delivery, insurance, loss for relief and aid national reserve goods delivered at different locations (if any);

- Other related costs.

b) Allocation and disbursement

- For enterprises under the direct management of the Ministry or sector managing national reserve goods, expenses for import, export, relief, and aid are disbursed by payment order according to current regulations. Based on the national budget estimate assigned to the Ministry or sector managing national reserve goods and the proposal of the national reserve agency, the National Reserve Agency will review and provide a provisional advance of 70% of the budgeted funds for each import, export, relief, and aid operation of national reserve goods. The remaining amount will be provided based on the approved cost level by the competent authority and the progress of implementation.  - For other units: based on the allocated national budget estimate and the proposal of the national reserve goods management agency, the Ministry of Finance will allocate the budget to the Ministry, sector, and National Reserve Agency to distribute the budget to subordinate national reserve units.

Based on quarterly and annual plans and estimates assigned by the authorized body; within the quarter, the national reserve unit withdraws the budget from the State Treasury for import, export, relief, aid, and storage costs. At the end of the quarter, the national reserve unit prepares a report on the implementation of import, export, relief, aid, and storage plans (Annex 6 attached to this Circular) and sends it to the State Treasury where transactions take place, transferring savings fees to the account of the national reserve unit at the State Treasury to temporarily deduct welfare funds, reward funds, and additional income for staff. At the end of the year, the national reserve unit prepares a report on the implementation of the annual import, export, relief, aid, and storage plan and sends it to the State Treasury where transactions take place, transferring remaining savings fees to the account for welfare funds, rewards, and additional income for staff, and bears responsibility for its own report,

while reporting to the higher financial authority. In case the amount withdrawn exceeds the actual amount allowed to be withdrawn according to the annual plan, the State Treasury will deduct it from the amount allowed to be withdrawn in the following year or recover the reduction in state budget spending. The balance in the deposit account is transferred to the next year for use. The national reserve unit opens a deposit account at the State Treasury; the State Treasury implements expenditure control according to the prescribed system.ofc) Based on the cost standards for import and export at the warehouse door issued by the Ministry of Finance and the actual import, export, relief, and aid activities, the National Reserve Agency is responsible for assisting the Minister of Finance in reviewing and deciding on the import costs, export costs, relief costs, and aid costs based on the proposals of national reserve agencies under the management of the Ministry or sector. 7.2. Storage costs

a) Storage costs are classified according to the time of implementation, including: initial storage costs; annual storage costs; periodic storage costs, and other non-routine storage costs.

b) The main content of storage costs includes:

 - Raw materials, equipment, technical means, tools serving storage work;

- Hired labor for storage;

c) The allocation and disbursement of storage costs are carried out similarly to import costs, export costs, relief costs, and aid costs for national reserve goods as stipulated in Item 7.1 of Part II of this Circular.

7.3. Implementation of cost contracting mechanism

Pursuant to Point b Clause 4 Article 16 of Decree No. 196/2004/NĐ-CP, import costs, export costs, relief costs, aid costs, and storage costs for national reserve goods are implemented under a contracting mechanism; the total contracted cost level is determined based on the actual quantity of goods imported, exported, relieved, aided, and stored, and the contracted amount in money for import costs, export costs, relief costs, aid costs, and storage costs for each item is assigned by the competent authority. Within the scope of the contracted costs, the head of the national reserve unit may proactively decide on expenditures according to the contents specified in Item

- Other related costs.

7.1, Item 7.2 of Part II of this Circular to serve the import, export, relief, aid, and storage of national reserve goods as prescribed; using saved funds to establish welfare funds, reward funds, and additional income for civil servants and employees at the unit.

7.3. Implementing the cost allocation mechanism

Pursuant to point b, Clause 4, Article 16 of Decree 196/2004/NĐ-CP, costs for importation, exportation, relief, aid, and storage of national reserve goods shall be implemented under the cost allocation mechanism; the total allocated cost level shall be determined based on the actual quantity of goods imported, exported, relieved, aided, and stored, and the allocation rate in cash for each type of cost for importation, exportation, relief, aid, and storage, as assigned by the competent authority. Within the allocated cost range, the Head of the national reserve unit may proactively decide on expenditures according to the provisions set out in Section 7.1 and Section 7.2 of this Circular to serve the importation, exportation, relief, aid, and storage of national reserve goods as prescribed; any savings can be used to establish welfare funds, award funds, and additional income for civil servants and employees at the unit.  Article 7.1, Section 7.2, Part II of this Circular shall serve for import, export, relief, assistance, and storage of national reserve goods as prescribed; funds saved may be allocated to establish welfare funds, award funds, and supplementary income for officials, civil servants, and employees at the unit.

The Heads of Ministries and Agencies managing national reserve goods, the Director of the National Reserve Agency are responsible for guiding subordinate units to establish internal expenditure regulations to manage and utilize savings funds; the supervising agency may implement adjustments among subordinate units (if any) within the total amount of savings achieved, ensuring support and encouragement for efforts to save in the performance of tasks. The establishment and utilization of welfare funds, reward funds, and additional income supplements for civil servants shall be carried out in accordance with the guidelines set forth in Paragraphs 11.1 and 11.2 of this Circular.

Non-recurring costs for import, export, and non-routine storage that have not been assigned by authorized agencies shall be issued and settled on a case-by-case basis.

7.4. Expenditure on insurance for national reserve warehouses 

The Heads of Ministries and Agencies managing national reserve goods, the Director of the National Reserve Agency are responsible for implementing fire and explosion insurance for national reserve warehouses under their management in accordance with the current mandatory fire and explosion insurance regime.

Mandatory fire and explosion insurance costs for national reserve warehouses are included in the regular expenditure items in the budget estimate allocated to Ministries and Agencies managing national reserve goods.

The selection of enterprises to purchase mandatory fire and explosion insurance for national reserve warehouses shall be conducted through bidding procedures while ensuring compliance with state secrets protection regulations.

8. Management of national reserves in monetary form

- Based on the annual state budget estimates, supplementary estimates for monetary national reserves approved by the competent authority, the Ministry of Finance shall allocate the national reserve fund in monetary form into a non-interest-bearing deposit account opened at the State Treasury, according to the regulations of the Minister of Finance.

- To promptly meet the requirements for importing, exporting, and using national reserve goods as stipulated in Clause 3, Article 10 of Decree No. 196/2004/ND-CP in the execution of combat, anti-sabotage, anti-riot duties; disaster prevention, mitigation, and firefighting; disease prevention, the Minister of Finance shall decide to release monetary national reservesto purchase domestic goods or imports for emergency response, and report to the Prime Minister to supplement monetary national reserves to ensure the ratio between national reserves in goods and monetary form as prescribed. The National Reserve Agency shall carry out the release of monetary national reserves for Ministries and Agencies to purchase additional national reserve goods based on the decision of the Minister of Finance. The procedure for releasing monetary national reserves to purchase additional national reserve goods shall be implemented similarly to capital allocation for increased national reserves.

- Management of state assets serving national reserve management activities shall be carried out in accordance with the current regulations on state asset management at state agencies and public service units.

The proceeds from the liquidation and disposal of state assets (sales, changes in ownership forms, transfers) including land use rights at property facilities due to detailed planning

of the national reserve warehouse network approved by the competent authority

- after deducting reasonable liquidation and disposal costs in accordance with the regulations of the Ministry of Finance, shall be supplemented to the capital for investment, renovation, upgrading of headquarters, warehouses, and enhancing technical infrastructure for national reserve units as decided by the competent authority according to - For remaining assets, when liquidating and disposing, it shall be carried out in accordance with the provisions of point b, clause 3, Article 16 of Decree No. 196/2004/ND-CP. The transfer and receipt of notarization files must be recorded in a protocol signed by representatives of the Department of Justice.

10. Reporting and statistical accounting system - Quarterly and annual reports on the import, export, and inventory of national reserve goods shall be prepared in accordance with the provisions of point a, clause 2, Article 19 of Decree No. 196/2004/ND-CP, including the Summary Report on Import, Export, and Inventory of National Reserve Goods

(Annex 7 attached to this Circular)

and the Detailed Report on Import, Export, and Inventory of National Reserve Goods  (Annex 8 attached to this Circular). Ministries and Agencies managing national reserve goods shall prepare quarterly and annual reports on the import, export, and inventory of national reserve goods and submit them to the Ministry of Finance before the 25th day of the first month of the next quarter (for quarterly reports) and before January 31st of the following year (for annual reports).  - Ministries and Agencies managing national reserve goods are responsible for preparing and consolidating final accounts reports in accordance with the national reserve accounting system regulations and submitting them to the Ministry of Finance. Annually, Ministries and Agencies managing national reserve goods must organize reviews and approve final accounts reports of subordinate national reserve units, bear responsibility for approved final accounts, consolidate and submit them to the Ministry of Finance. The National Reserve Agency shall conduct audits, consolidate, and report final accounts on national reserves to the Ministry of Finance for submission to the Government. National reserve agencies and units must comply with the national reserve accounting system as currently prescribed.

11. Establishment, management, and use of Welfare Fund and Reward Fund

11.1. Establishment of Welfare Fund and Reward Fund

a) In cases where savings or benefits accrue to the state budget from buying and selling national reserve goods, national reserve units are entitled to a 25% bonus of the value of the benefit to establish the Welfare Fund and Reward Fund and to supplement the income of civil servants and employees, as decided by the Minister of Finance. National reserve units shall prepare a proposal for rewards and submit it to the Ministry and Agency managing national reserve goods, the National Reserve Agency. The Ministry and Agency managing national reserve goods, the National Reserve Agency shall review and propose the Minister of Finance to award bonuses to national reserve units from the state budget allocated for national reserve management work.

b) In cases where the loss rate during the storage of national reserve goods is below the standard, national reserve units are entitled to a 50% bonus of the value of the goods lost below the standard (calculated based on the warehouse exit price), taken from the state budget allocated for national reserve management work to establish the welfare fund, reward fund, and supplement the income of civil servants and employees.

The Heads of Ministries and Agencies managing national reserve goods, the Director of the National Reserve Agency

shall consider and approve the amounts to be allocated to the funds due to the implementation of storage losses below the specified standards by the units review and approveabroad the allocation of funds to the various funds due to the implementation of storage losses below the specified standard by the unitstogether with the approval of the annual settlement report.

c) Implement the mechanism for allocating import costs, export costs, relief costs, aid costs, and storage costs of national reserve goods; the national reserve unit may use 100% of the remaining amount after deducting actual incurred costs to establish the Welfare Fund, the Reward Fund, and supplement income for civil servants and employees. the amounts to be allocated to the funds due to the implementation of storage losses below the specified standards by the units review and approveabroad saving expenses of unitstogether with the approval of the annual settlement report.

d) Allocate from the Welfare Fund and the Reward Fund, from the amounts specified in points a, b, and c of this clause, up to a maximum of three months' salary of the unit; the remainder shall be used together with the savings from implementing the mechanism for autonomous management of regular expenses to supplement income for civil servants up to a maximum of once the state-prescribed grade and position salary fund. Heads of Ministries and sectors managing national reserve goods, Directors of National Reserve Bureaus may coordinate the allocation of funds between subordinate national reserve unitswithin the scope ofthe allocation limits prescribed in points a, b, and c above.

11.2. Management and use of the Welfare Fund and the Reward Fund

- The Welfare Fund and the Reward Fund of the national reserve unit must be strictly managed, used for their intended purposes, and ensure transparency within the unit.

- Based on current laws, the Head of the national reserve unit shall establish Rules for Competition and Awards, Internal Expenditure Regulations in accordance with the guidelines of the Ministry or sector managing national reserve goods, and make them public so that civil servants in the unit can know, check, and supervise.

12. Protection of State Secrets, Inspection, and Audit of National Reserves

12.1.  Protection of State Secrets in the management of national reserves

National reserve management agencies and national reserve units must strictly implement the Ordinance on Protecting State Secrets dated December 28, 2000; Decree No. 33/2002/NĐ-CP dated March 28, 2002 of the Government detailing the implementation of the Ordinance on Protecting State Secrets; Circular No. 12/2002/TT-BCA (A11) dated September 13, 2002 of the Ministry of Public Security guiding the implementation of Decree No. 33/2002/NĐ-CP dated March 28, 2002 of the Government detailing the implementation of the Ordinance on Protecting State Secrets; Decision No. 196/2003/QĐ-BTC dated December 1, 2003 of the Minister of Finance promulgating the Rules for Protecting State Secrets in the finance sector, and other related legal documents.

12.2. Inspection and Audit of National Reserves

The inspection and audit of national reserves shall be carried out in accordance with Article 21 of Decree No. 196/2004/NĐ-CP dated December 2, 2004 of the Government detailing the implementation of the Ordinance on National Reserves.

III. IMPLEMENTATION

This Circular takes effect fifteen days after its publication in the Official Gazette and replaces Circular No. 48/2005/TT-BTC dated June 9, 2005 of the Ministry of Finance guiding the implementation of Decree No. 196/2004/NĐ-CP of the Government detailing the implementation of the Ordinance on National Reserves.

During the implementation process, if there are any difficulties, please promptly reflect them to the Ministry of Finance for study and amendment./.