Circular No. 150/1999/TT-BTC of the Ministry of Finance guiding the implementation of Decision No. 195/1999/QD-TTg dated September 27, 1999 of the Prime Minister on the establishment, use, and management of the Export Support Fund.

CIRCULAR

Guidelines for implementing Decision No. 195/1999/QĐ-TTg dated September 27, 1999 of the Prime Minister on the establishment, use, and management of the Export Support Fund

To implement Decision No. 195/1999/QĐ-TTg dated September 27, 1999 of the Prime Minister on the establishment, use, and management of the Export Support Fund, the Ministry of Finance provides guidance as follows:

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1. The Export Support Fund is established to provide financial support and encourage enterprises to develop export business, seek and expand markets, and enhance the competitiveness of Vietnamese exported goods.

A. GENERAL PROVISIONS

2. Based on the policy and tasks for economic development during each period as directed by the Government or the Prime Minister; specific domestic and international market conditions, prices, and exported goods; and the business situation and financial results of import-export enterprises, the Ministry of Finance will organize financial support for import-export enterprises meeting the conditions stipulated in this Circular after consulting with the Ministry of Trade, the Government Price Control Board, and relevant industry management agencies according to the content and nature of the support.

3. Enterprises subject to the guidelines set forth in this Circular include: Import-export enterprises (mainly agricultural products), production enterprises directly exporting goods, and other enterprises as decided by the Prime Minister.

4. The Export Support Fund shall have a separate account at the State Treasury. The remaining balance as of October 12, 1999, of the Price Stabilization Fund and additional revenue from goods subject to additional charges into the Price Stabilization Fund pursuant to Decision No. 151/TTg dated April 12, 1993, and the Export Reward Fund pursuant to Decision No. 764/QĐ-TTg dated August 24, 1998 of the Prime Minister shall be transferred to the account of the Export Support Fund.

I. INCOME SOURCES FOR THE EXPORT SUPPORT FUND:

B. SPECIFIC PROVISIONS

1. Income from price differences for imported and exported goods:

1.1. Principles for calculating price differences:

a) For imported goods, it is the difference between the domestic selling price accepted by the market and the cost price of imported goods, including the import price inclusive of transportation costs, insurance fees up to the port of importation, import taxes, and other taxes as prescribed by Law.

For goods subject to import taxes, the cost price of imported goods mentioned above is determined based on the taxable import price, import taxes, and other taxes as prescribed by Law.

b) For exported goods, it is the difference between the actual export price (FOB) and the cost price of exported goods, including the actual purchase price, export taxes as prescribed by Law, and domestic circulation fees.

For goods subject to export taxes, the cost price of exported goods mentioned above is determined based on the taxable export price and export taxes.

c) The quantity of goods for which price differences are collected is the actual quantity of exported and imported goods recorded on the bill of lading consistent with the customs declaration.

d) The time for collecting price differences is determined by the competent authority. Based on the date of customs declaration registration, enterprises must pay the price difference according to the regulations.

e) The amount of price difference to be paid shall not exceed 60% of the actual price difference arising, both for imported and exported goods. This amount is determined as a percentage for each type of goods:

- For imported goods, it is the ratio (%) between the amount of price difference to be paid and the actual import price, including overseas transportation costs and insurance fees up to the port of importation.

- For exported goods, it is the ratio (%) between the amount of price difference to be paid and the actual export price at the port of export, excluding foreign costs.

1.2. Goods that are exempt from paying price differences include: goods exported and imported into export processing zones; equipment, materials, and goods imported under the Law on Foreign Investment in Vietnam; goods exported and imported for sample purposes, advertising, and trade fairs; donated goods; gifts; and personal luggage of individuals entering and exiting the country.

1.3. In accordance with the Prime Minister's directive, the Government Price Control Board shall take the lead and coordinate with the Ministry of Finance, the Ministry of Trade, relevant industry management agencies, and People's Committees of provinces and centrally-administered cities to monitor price fluctuations both domestically and internationally, identify price differences for exported and imported goods, propose a list of goods, ratios, and times for collecting price differences, and submit these proposals to the Prime Minister for decision.

1.4. Enterprises with goods subject to payment of price differences shall remit such payments to the state budget through the account of the Export Support Fund at the State Treasury.

2. Fees collected from October 12, 1999, include:

- Tender fees for import and export quota licenses.

- Fees for issuing export and import quota licenses.

- Fees for issuing certificates for the establishment and operation of representative offices of foreign organizations in Vietnam and branches of foreign companies in Vietnam.

- Fees for issuing certificates of origin for goods.

Agencies responsible for collecting the aforementioned fees may retain a maximum of 10% (ten percent) of the total fees collected before remitting them to the state budget, to cover the costs of fee collection as stipulated in Circular No. 54/1999/TT-BTC dated May 10, 1999 of the Ministry of Finance guiding the implementation of Decree No. 04/1999/NĐ-CP dated January 30, 1999 of the Government on fees and charges belonging to the state budget. The remainder shall be remitted to the state budget through the account of the Export Support Fund at the State Treasury.

3. Contributions from import-export enterprises for goods with price differences but without a price difference collection system shall be determined by the Ministry of Finance and the Ministry of Trade in coordination with the Government Price Control Board based on the market price situation of each type of goods at different times, to inform enterprises of the price difference and contribution level to be implemented.

4. Other income sources as decided by the Prime Minister.

4. Revenue from other sources as decided by the Prime Minister.

The revenues mentioned above, when generated, shall be fully deposited into the State Budget through the account of the Export Support Fund at the Treasury.

5. In addition to the aforementioned revenues, based on the tasks and the budget plan for the Export Support Fund, the balance carried over to the next year of the Fund, after reaching consensus with the Ministry of Planning and Investment, the Ministry of Finance shall prepare a plan to submit to the Government the level of additional funding for the Export Support Fund in the annual state budget estimate.

II. CONTENT OF USE AND MANAGEMENT OF THE EXPORT SUPPORT FUND:

1. Content of using the Export Support Fund:

a) Supporting part or all of the interest rate on bank loans for import-export enterprises purchasing agricultural products for export at floor prices or guaranteed business prices for producers. The Prime Minister shall stipulate.

b) Supporting part or all of the difference between the short-term loan interest rate of commercial banks and the preferential interest rate for import-export enterprises purchasing agricultural products awaiting export, as directed by.the Prime Minister.

c) Supporting part or all of the interest rate on bank loans for enterprises tasked with circulation reserves, as directed by.the Prime Minister.

d) Supporting part or all of the difference between the short-term loan interest rate of commercial banks and the preferential interest rate for enterprises purchasing, processing, and directly exporting seasonal agricultural products, as directed by.the Prime Minister.

e) Providing temporary financial support for a limited period for certain export goods suffering losses due to lack of competitiveness or encountering risks caused by external factors leading to temporary losses or financial difficulties for import-export enterprises in the following cases:

+ Goods being exported for the first time.

+ Goods exported to new and unstable markets.

+ Goods purchased but not yet exported due to sudden global price drops.

+ Goods directly produced for export suffering temporary losses due to lack of competitiveness from newly mobilized investments.

g) Supporting part of the costs for import-export enterprises that have contributed to the Export Support Fund (submitting the price difference of exported and imported goods as specified in Point 1, Section I of this Circular) now facing financial difficulties due to market price fluctuations.

h) Rewarding efforts in seeking and expanding export markets, new products produced and exported for the first time; exporting high-quality products recognized by international organizations with certificates; exporting products using many domestic raw materials and labor; achieving large export turnover and high efficiency.

i) Other support as decided by.the Prime Minister.

2. Principles and procedures for considering support:

a) For cases where the Prime Minister decides the specific level of support for enterprises, the Ministry of Finance will implement the disbursement of support funds to enterprises.

b) For cases where the Government or the Prime Minister decides the policy of support, the Ministry of Finance will take the lead in coordinating with the Government's Price Management Board, the Ministry of Trade (depending on the nature of the expenditure as above) and relevant sectors to determine the specific level of support according to instructions or to report to the Prime Minister for decision.

c) For cases falling under the provisions of Article 4 of Decision No. 195/1999/QĐ-TTg and Point 1, Section II of this Circular: Based on the enterprise's proposal and the opinion of the industry management agency (Ministry, Provincial People's Committee, City People's Committee), the Ministry of Finance will take the lead in coordinating with the Government's Price Management Board, the Ministry of Trade (depending on the nature of the expenditure) to determine the goods requiring support, the method, level, and duration of support to report. to the Prime Minister for decision.

After receiving the Prime Minister's decision, the Ministry of Finance will coordinate with the Ministry of Trade and the Government's Price Management Board (depending on the nature of the expenditure) to review the application forms and data to consider support. Based on the results of the review (minutes of the joint working group meeting) and the opinions of the Government's Price Management Board and the Ministry of Trade (depending on the nature of the expenditure), the Minister of Finance will decide on the disbursement of support funds from the Export Support Fund.

d) Procedures for reviewing applications:

For cases of support as stipulated in Clauses a, b, c, d of Point 1, Section II:

- A list of inventory of goods requiring support during the support period.

- A list of loan agreements, interest receipts from the Bank, and a list of bank balances at each point in time confirmed by the Bank for purchasing, temporarily storing, or seasonally reserving the supported goods.

Based on the above documents, the Ministry of Finance will take the lead (Enterprise Financial Department) in coordinating with relevant ministries and sectors to organize reviews and report to the Minister of Finance for consideration and determination of the specific level of support for enterprises.

For cases of support as stipulated in Clause e and g of Point 1, Section II:

- Report on the implementation of production and trade activities up to the date of requesting support and evaluation of the enterprise's performance.

Reports and other supporting documents related to the nature and characteristics of each type of support.

For cases of export rewards as stipulated in Clause h of Point 1, Section II.

The Minister of Trade will take the lead, coordinating with the Ministry of Finance to organize the assessment and issue a Decision rewarding export enterprises meeting the standards set out in Clause h of Point 1, Section II of this Circular.

e) Procedures for disbursing the Export Support Fund: Based on the decisions of the Prime Minister, the decision of the Minister of Finance regarding support for units, and the decision of the Minister of Trade regarding rewards for export enterprises meeting the standards as prescribed, the Ministry of Finance will handle the procedures for disbursing the Export Support Fund to enterprises.

III. SETTLEMENT OF THE USE OF THE EXPORT SUPPORT FUND:

Annually, the Ministry of Trade is responsible for compiling the portion of export rewards, while the Ministry of Finance is responsible for compiling and settling the income and expenditure of the Export Support Fund to serve as the basis for reporting to the Prime Minister on the operation results of the Fund. If the Export Support Fund is not fully utilized in a given year, the remaining balance will be carried over to the next year.

C. IMPLEMENTATION

Based on the provisions of Article 5 of Decision No. 195/1999/QĐ-TTg dated September 27, 1999, issued by the Prime Minister, to ensure compliance with the Prime Minister's Decision, in addition to the regulations stipulated in this Circular, export and import enterprises must comply with the guidance regulations of the following ministries and sectors:

1. The Ministry of Commerce decides to award enterprises that meet the export standards as stipulated in Clause h, Point 1, Section II of this Circular.

2. Guidelines of the Government Price Control Board on collecting price differentials, lists of goods, rates, time of collection... for exported goods and imported goods; guidelines on exempting or reducing the collection of price differentials for items outside the list of items not required to pay the price differential as prescribed in Article 3 of Decision 195/1999/QĐ-TTg.

3. Guidelines of the ministries managing specific industries, of the People's Committees of provinces and centrally governed cities in developing export strategies for each specific item, export capacity, conditions for each period to ensure the promotion of exports, expansion of markets, enhancement of competitiveness of Vietnamese export goods, ensuring effective import and export activities, increasing revenue for the state budget, while minimizing risks in the process of trading in imports and exports to the lowest possible level.

This Circular takes effect from the date Decision 195/1999/QĐ-TTg of the Prime Minister dated September 27, 1999 comes into force. All previous regulations contrary to the provisions of this Circular shall be abolished.

During implementation, if there are any difficulties, agencies and enterprises need to promptly reflect them to the Ministry of Finance for amendment and supplementation to ensure the effective use and management of the Export Support Fund in accordance with actual circumstances.