Circular No. 15948/BTC-TCDN on the use of revenue from quota textile and garment fees

LETTER

 OF THE MINISTRY OF FINANCE NO. 15948/BTC-TCDN DATED DECEMBER 8, 2005 ON THE USE OF REVENUE FROM TEXTILE AND GARMENT QUOTA FEES

Unit: Equivalent USD: - Ministries, ministerial-level agencies, government agencies

- People's Committees of provinces and centrally governed cities

- Vietnam Textile and Apparel Corporation, Vietnam Textile and Apparel Association

The Ministry of Finance has received the letter from the Vietnam Textile and Apparel Association and the Vietnam Textile and Apparel Corporation requesting guidance on supplementing the implementation of financial support for trade promotion expenses for enterprises from revenue generated from textile and garment quota fees pursuant to Decision No. 55/2001/QĐ-TTg dated April 23, 2001 of the Prime Minister approving the strategy for the development of the textile and garment industry until 2010 and Circular No. 106/2001/TT-BTC dated December 31, 2001 of the Ministry of Finance guiding the implementation of Decision No. 55/2001/QĐ-TTg. The Ministry of Finance provides specific guidance on supporting trade promotion expenses using revenue from textile and garment quota fees as follows:

I. CONTENT AND LEVEL OF SUPPORT EXPENSES

1. Organizing exhibition booths at overseas trade fairs:

1.1. Content of expenses:

- Renting booth costs, transportation costs for displayed products.

- Expenses for staff participating in overseas trade fairs.

These expenses are determined based on legal documentation according to current regulations.

1.2. Level of support expenses:

- Renting booth costs and transportation costs for displayed products will be supported up to a maximum of 70% of actual expenses within the approved budget.

- Expenses for staff participating in overseas trade fairs: Staff members eligible for support must be designated by the competent authority according to current regulations specifically:

+ The number of participants from the Office of the Vietnam Textile and Apparel Corporation and the Office of the Vietnam Textile and Apparel Association shall be agreed upon by both offices, and the level of support for the entire delegation (Office of the Association and Office of the Vietnam Textile and Apparel Corporation) shall be based on the actual number of people attending but not exceeding six people.

+ In cases where programs are organized separately by the Vietnam Textile and Apparel Association or the Vietnam Textile and Apparel Corporation: the level of support shall be based on the actual number of people from the Office of the Vietnam Textile and Apparel Corporation attending, but not exceeding five people; support shall be based on the actual number of people from the Office of the Vietnam Textile and Apparel Association attending, but not exceeding three people.

+ For enterprises participating in the delegation: one person per enterprise will be supported.

The level of expense for each supported staff member shall be in accordance with the provisions of the Ministry of Finance in Circular No. 45/1999/TT-BTC dated [date] and Circular No. 91/2005/TT-BTC dated October 18, 2005 regarding travel expenses for state officials and civil servants on short-term missions abroad. Other common expenses for the delegation shall be supported up to a maximum of 50% of actual expenses within the approved budget.

2. Establishing trade promotion centers or representative offices of enterprises and the Vietnam Textile and Apparel Association abroad:

2.1. Content of expenses:

- First-year rental costs for office space.

- Costs for purchasing office equipment.

- Fees required by local regulations to establish trade promotion centers or representative offices of enterprises and the Vietnam Textile and Apparel Association.

These expenses are determined based on legal documentation according to current regulations.

2.2. Level of support expenses:

- For markets in Germany, the United States, Russia, Japan, Hong Kong, Iraq, and the United Arab Emirates (Dubai), full funding will be provided.

- For other markets: funding will support up to 50% of actual expenses incurred by enterprises and the Association.

3. Expenses for participating in international textile and apparel organizations:

3.1. Content of expenses:

- Travel expenses for attending annual meetings of international textile and apparel organizations held abroad when Vietnam is a member.

- Expenses for organizing annual meetings of international textile and apparel organizations held in Vietnam when Vietnam is a member.

3.2. Level of support expenses:

- Support for travel expenses for attending annual meetings held abroad when Vietnam is a member includes: support for the actual number of people attending but not exceeding two people. The level of expense for each supported person shall be in accordance with the provisions of Circular No. 45/1999/TT-BTC dated May 4, 1999 and Circular No. 91/2005/TT-BTC dated October 18, 2005 of the Ministry of Finance regarding travel expenses for state officials and civil servants on short-term missions abroad. Other common expenses for the delegation shall be supported up to a maximum of 50% of actual expenses within the approved budget.

- Support for organizing annual meetings of international textile and apparel organizations held in Vietnam when Vietnam is a member includes:

+ Common expenses for organizing the meeting will be supported up to 50% of actual expenses incurred including: room rental fees, equipment rental fees for the meeting, document translation fees, simultaneous interpretation fees, office supplies, and hospitality for meeting participants.

+ Expenses for staff from the Office of the Vietnam Textile and Apparel Association responsible for organizing the domestic meeting: support will be based on the actual number of people participating but not exceeding five people. The level of support for each person will be based on actual receipts but hotel expenses will not exceed 450,000 VND per night for Association leaders and 350,000 VND per night for Office staff. Food expenses will be supported at 50,000 VND per day per person.

4. Other trade promotion activities:

4.1. Expenses for collecting information about markets, customers, and export goods:

- Costs for purchasing specialized market and product information (with registration for purchase).

- Costs for purchasing foreign information (with accompanying contracts).

4.2. Expenses for hiring economic and trade consultants for exporting goods (with accompanying contracts).

The maximum level of support expenses will not exceed 50% of actual expenses incurred by enterprises and the association according to the content of expenses specified in points 4.1 and 4.2 of this section. These expenses are determined based on legal documentation according to current regulations.

4.3. Expenses for seeking other export markets:

The level of travel expenses for staff traveling abroad to seek markets and business partners shall be implemented according to the provisions at point 4.3 of this section, following the levels prescribed by the Ministry of Finance in Circular No. 45/1999/TT-BTC dated May 4, 1999, and Circular No. 91/2005/TT-BTC dated October 18, 2005. In cases where the Vietnam Textile and Apparel Association or the Vietnam National Textile and Garment Corporation needs to hire models or artists to participate in performances and fashion shows to promote textile and garment product brands abroad, the support level will be 50% of the expenditure for staff, with a maximum number of people supported not exceeding six individuals. Other common expenses will be supported up to a maximum of 50% of actual expenditures. Expenditures will be determined based on legitimate receipts in accordance with current regulations.

II. DOCUMENTS FOR APPLICATION FOR SUPPORT FOR MARKETING PROMOTION EXPENSES

As stipulated at point c of Section 7 of Circular No. 106/2001/TT-BTC issued by the Ministry of Finance.

III. IMPLEMENTATION OF ISSUANCE AND SETTLEMENT

Annually, the Vietnam National Textile and Garment Corporation and the Vietnam Textile and Garment Association have the responsibility to develop plans for marketing promotion activities and register them with the Ministry of Finance.

Quarterly, after receiving applications for funding for marketing promotion activities from units, the Ministry of Finance will review and issue a provisional payment of 70% of the budgeted funds. The remaining amount will be issued as supplementary funding upon receipt of the official settlement report from the unit.

For delegations organized by the Vietnam Textile and Garment Association: the funding will be issued and settled through the Vietnam Textile and Garment Association (including all funding for the entire delegation).

For delegations organized by the Vietnam National Textile and Garment Corporation: the funding will be issued and settled through the Vietnam National Textile and Garment Corporation (including all funding for the entire delegation).

For marketing promotion activities organized independently by enterprises, funding will be issued and settled for each enterprise every six months or once a year.

Units receiving state support for marketing promotion expenses must ensure that the supported funds are used economically and effectively and bear responsibility for the content of expenditures in accordance with current regulations.

IV. PROVISIONS ON ACCOUNTING:

All market development and marketing promotion support expenses specified in Part I of this circular shall be accounted for as a reduction in business costs (management costs). Except for office equipment expenses at Section 2, Part I, if they meet the criteria for fixed assets, they shall be accounted for as an increase in business capital of the enterprise.

For the Vietnam National Textile and Garment Corporation and the Vietnam Textile and Garment Association, the revenue from marketing promotion activities of the Corporation or the Association shall be recorded as income.

We request relevant ministries, departments, People's Committees of provinces and centrally-administered cities, the Vietnam Textile and Garment Association, and the Vietnam National Textile and Garment Corporation to guide enterprises in implementation. If there are difficulties, please reflect them to the Ministry of Finance for research and resolution.

This circular replaces Circular No. 4714 TC/TCDN dated [date] of the Ministry of Finance guiding the specific use of revenue from quota fees for textiles and garments.

Delegations going abroad for marketing promotion from [start date] to [end date] will be supported financially according to the guidance provided in this circular.

From [date] onwards, marketing promotion expenses of textile and garment enterprises will be implemented according to the general state regulations.

Deputy Minister

Vice Minister

Le Thi Bang Tam