Circular No. 16/2017/TT-BTC detailing certain provisions of Decision No. 20/2016/QĐ-TTg dated May 11, 2016 of the Prime Minister on financial support for anti-smuggling, commercial fraud, and counterfeit goods activities and the settlement of management and disposal costs of assets confiscated according to the law in the field of anti-smuggling, commercial fraud, and counterfeit goods.

CIRCULAR

Providing detailed regulations on certain provisions of Decision No. 20/2016/QĐ-TTg dated May 11, 2016 of the Prime Minister regarding financial support for anti-smuggling, trade fraud, counterfeit goods activities and payment of management and disposal costs of assets confiscated under the law in the field of
anti-smuggling, trade fraud, counterfeit goods

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013 of the Government stipulating functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decision No. 20/2016/QĐ-TTg dated May 11, 2016 of the Prime Minister regarding financial support for anti-smuggling, trade fraud, counterfeit goods activities and payment of management and disposal costs of assets confiscated under the law in the field of anti-smuggling, trade fraud, counterfeit goods;

At the proposal of the Director of the Legal Department,

The Minister of Finance issues this Circular providing detailed regulations on certain provisions of Decision No. 20/2016/QĐ-TTg dated May 11, 2016 of the Prime Minister regarding financial support for anti-smuggling, trade fraud, counterfeit goods activities and payment of management and disposal costs of assets confiscated under the law in the field of anti-smuggling, trade fraud, counterfeit goods.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular provides detailed regulations on implementing certain provisions of Decision No. 20/2016/QĐ-TTg dated May 11, 2016 of the Prime Minister regarding payment of management and disposal costs of confiscated assets under the law in the field of anti-smuggling, trade fraud, counterfeit goods (hereinafter referred to as Decision No. 20/2016/QĐ-TTg) as follows:

1. Preparation of budget estimates, management, use, and settlement of financial support from the state budget.

2. Management, use of voluntary financial support from agencies, organizations, and individuals.

3. Guidance on the content and payment of management and disposal costs of confiscated assets.

Article 2. Applicability

This Circular applies to:

1. Forces with the function of combating smuggling, trade fraud, and counterfeit goods (hereinafter collectively referred to as agencies and units combating smuggling, trade fraud, counterfeit goods) include: Police, border guard forces, coast guard, market administration, competition management, forest rangers, agencies entrusted with specialized inspection functions, tax, customs, and other functional forces at central and local levels assigned to inspect and handle violations of laws on smuggling, trade fraud, and counterfeit goods according to the law.

2. Other agencies, organizations, and individuals related to the preparation of budget estimates, management, use, and settlement of financial support.

Chapter II

SPECIFIC PROVISIONS

Article 3. Content and level of financial support from the financial support source

The content and level of financial support from the financial support source under Article 6 of Decision No. 20/2016/QĐ-TTg are specified as follows:

1. Expenditures within the regular budget estimate of the agency or unit that have been approved by the competent authority but the funds allocated in the regular budget estimate have been exhausted:

a) Expenditure on propaganda and popularization of laws on preventing and combating smuggling, trade fraud, and counterfeit goods shall be implemented in accordance with Circular Joint No. 14/2014/TTLT-BTC-BTP dated January 27, 2014 of the Ministry of Finance and the Ministry of Justice stipulating the preparation of budget estimates, management, use, and settlement of state budget funds to ensure the work of popularizing, educating the law, and ensuring people's access to the law at the grassroots level;

b) Expenditure on travel expenses, conference fees for mid-year and year-end reviews, training, and vocational training on preventing and combating smuggling, trade fraud, and counterfeit goods shall be implemented in accordance with Circular No. 97/2010/TT-BTC dated July 6, 2010 of the Ministry of Finance stipulating the travel expense system and the system of expenditure for organizing conferences for state agencies and public service units; Circular No. 139/2010/TT-BTC dated September 21, 2010 of the Ministry of Finance stipulating the preparation of budget estimates, management, and use of funds from the state budget for training and capacity building for officials and civil servants;

c) Expenditure on purchasing equipment, repairing tools, renting equipment and means of transportation; expenditure on registration and certification fees for equipment directly serving anti-smuggling, trade fraud, and counterfeit goods investigation activities in accordance with current legal standards and norms. In cases where there are no standards or norms, the head of the agency or unit combating smuggling, trade fraud, and counterfeit goods decides within their authority and bears responsibility for their decision;

d) Expenditure on fuel for vehicles used for inspection, arrest, escort, and protection of violators and evidence; expenditure on communication, office supplies, and printing materials for anti-smuggling, trade fraud, and counterfeit goods activities: Implemented based on actual expenditure vouchers and contracts with suppliers. The above expenditures must be approved by the competent authority before implementation;

đ) Expenditure on rewards for collectives and individuals who have outstanding achievements in preventing and combating smuggling, trade fraud, and counterfeit goods in accordance with Decree No. 42/2010/NĐ-CP dated April 15, 2010 of the Government detailing certain provisions of the Law on Competition and Rewards and the Law Amending and Supplementing Certain Provisions of the Law on Competition and Rewards;

e) Expenditure on overtime pay for night work and additional hours in accordance with Circular Joint No. 08/2005/TTLT-BNV-BTC dated January 5, 2005 of the Ministry of Home Affairs and the Ministry of Finance guiding the implementation of the system of paying wages for night work and additional hours for officials, civil servants, and employees and the current law;

2. Special expenditures

a) Expenditure on allowances during treatment for officials, civil servants, employees, officers, non-professional military personnel, and soldiers injured or killed and their families during the investigation and arrest process; expenditure on hospitalization fees in cases not covered or exceeding the coverage range of the Health Insurance Fund or partially covered by the Health Insurance Fund. The specific level of support is decided by the head of the agency or unit combating smuggling, trade fraud, and counterfeit goods but shall not exceed ten months of the basic salary level.

b) To provide allowances to individuals directly participating in investigation, surveillance, pursuit, inspection, and control of smugglers, commercial fraud, and counterfeit goods during their direct involvement on the site where the incident occurs. The allowance rate is VND 100,000 per person per day. The determination of individuals eligible for allowances shall be decided and the responsibility borne by the head of the anti-smuggling, commercial fraud, and counterfeit goods agency or unit.

Article 4. Management and Use of Voluntary Support Funding

1. The acceptance and management of voluntary support funding from domestic organizations and individuals shall be carried out in accordance with Clause 2, Article 5 of Decision No. 20/2016/QĐ-TTg, with specific guidance as follows:

a) Acceptance of Voluntary Support Funding

- For voluntary support in the form of money or foreign currency: The anti-smuggling, commercial fraud, and counterfeit goods agency or unit must open a separate deposit account at the State Treasury to record and manage according to regulations. Procedures for opening and using accounts are stipulated in Circular No. 61/2014/TT-BTC dated May 12, 2014, issued by the Ministry of Finance regarding registration for opening and using accounts at the State Treasury.

- For voluntary support in the form of physical assets: The anti-smuggling, commercial fraud, and counterfeit goods agency or unit must establish state ownership rights over the asset and manage and use the asset in accordance with current laws on the management and use of state assets.

b) Management and Use of Voluntary Support Funding

The management and use of voluntary support funding by domestic agencies, organizations, and individuals must comply with the purposes of the contributors and ensure compliance with current laws. In cases where the support does not specify a specific purpose, the head of the anti-smuggling, commercial fraud, and counterfeit goods agency or unit shall decide on the support based on the expenditure items and levels specified in Article 6 of Decision No. 20/2016/QĐ-TTg, ensuring it aligns with the work of the agency or unit, maintaining transparency and accountability. Unspent funds may be transferred to the following year for continued use.

2. Acceptance, Management, and Use of Funding from Foreign Organizations and Individuals

The acceptance, management, and use of funding from foreign organizations and individuals shall be carried out in accordance with the provisions of Decree No. 93/2009/NĐ-CP dated October 22, 2009, promulgated by the Government on the management and use of non-governmental foreign aid.

Article 5. Content and Levels of Expenditure for Managing and Disposing of Seized Assets

The content and levels of expenditure for managing and disposing of seized assets shall be implemented in accordance with Decree No. 29/2014/NĐ-CP dated April 10, 2014, issued by the Government on the authority and procedures for establishing state ownership rights over assets and managing and disposing of assets that have been established as state-owned property (hereinafter referred to as Decree No. 29/2014/NĐ-CP) and Article 8 of Decision No. 20/2016/QĐ-TTg. Specifically, the expenditure for purchasing information is guided as follows:

1. Level of Expenditure for Purchasing Information

The level of expenditure for purchasing information in the fields of smuggling, commercial fraud, and counterfeit goods shall be carried out in accordance with Decision No. 20/2016/QĐ-TTg and the guidance provided in this Circular. The provisional expenditure level for purchasing information for each case shall be determined by the head of the anti-smuggling, commercial fraud, and counterfeit goods agency or unit based on forecasts of revenue from administrative penalties and the amount of proceeds from the sale of seized assets, and they shall bear responsibility for their decision.

If an agency or unit has already paid for purchasing information from the funding allocated for managing and disposing of seized assets as stipulated in Article 7 of Decision No. 20/2016/QĐ-TTg, it shall not pay for purchasing information from the state budget as currently regulated.

In cases where the proceeds from selling assets are insufficient to cover the cost of purchasing information, the payment for purchasing information shall be carried out in accordance with Clause 1, Article 37 of Decree No. 29/2014/NĐ-CP; in cases where assets are disposed of through transfer or destruction, the funding for purchasing information shall be carried out in accordance with Clause 2, Article 37 of Decree No. 29/2014/NĐ-CP.

2. Payment Receipts for Purchasing Information

Payments for purchasing information must be supported by complete receipts as required; in cases where the name of the information provider must be kept confidential, payments for purchasing information shall be based on a payment voucher signed by the person directly paying the information provider, the cashier, the accountant, and the head of the agency or unit directly investigating and handling administrative violations. The head of the anti-smuggling, commercial fraud, and counterfeit goods agency or unit directly investigating and handling administrative violations shall be responsible for the accuracy and honesty in the payment for purchasing information, ensuring it is paid to the correct individual and for the correct purpose and is effective.

Article 6. Preparation of budget estimates and final accounts for state budget funds supporting anti-smuggling, commercial fraud, and fake goods forces

The preparation, management, use, and finalization of budget support funds for anti-smuggling, commercial fraud, and fake goods forces shall be carried out in accordance with the provisions of the State Budget Law and guiding documents thereof. This Circular provides additional guidance on the following matters:

1. Preparing budgets

a) Each year, anti-smuggling, commercial fraud, and fake goods agencies and units shall base their budget estimates on the following contents:

- Requirements of the anti-smuggling, commercial fraud, and fake goods tasks for the planned year;

- Revenue from administrative and criminal penalties collected from smuggling, commercial fraud, and fake goods cases seized and processed by competent authorities in the previous fiscal year, including: fines paid for administrative violations related to smuggling, commercial fraud, and fake goods, proceeds from the sale of confiscated items and means of transportation that are transferred to the state treasury after deducting reasonable and lawful expenses as prescribed by law; proceeds from the sale of assets as evidence in criminal cases involving smuggling, commercial fraud, and fake goods, which are transferred to the state treasury after deducting reasonable and lawful expenses as prescribed by law.

In cases where actual revenue from administrative and criminal penalties for smuggling, commercial fraud, and fake goods in the previous fiscal year is not available at the time of preparing the budget estimate, the agencies and units shall base their estimates on projected revenues from administrative and criminal penalties for smuggling, commercial fraud, and fake goods in the previous fiscal year.

b) During the year, if the allocated support funding according to the approved budget estimate is lower than the actual revenue from administrative and criminal penalties for smuggling, commercial fraud, and fake goods in the previous fiscal year, and the agency or unit has additional support expenditure requirements as stipulated in Article 6 of Decision No. 20/2016/QĐ-TTg, then the agency or unit shall prepare supplementary budget estimates for approval by the competent authority in accordance with the State Budget Law, ensuring that it does not exceed the actual revenue from administrative and criminal penalties for smuggling, commercial fraud, and fake goods in the previous fiscal year.

c) At the end of the year (the year in which the plan was assigned), if the actual revenue from administrative and criminal penalties for smuggling, commercial fraud, and fake goods is less than the amount allocated in the annual budget estimate, the excess amount will be canceled at the national treasury (in cases where the anti-smuggling, commercial fraud, and fake goods agency or unit has not withdrawn the budget estimate) or deducted from the amount to be allocated in the following year (in cases where the anti-smuggling, commercial fraud, and fake goods agency or unit has withdrawn the budget for spending).

d) The preparation of budget estimates for activities against smuggling, commercial fraud, and fake goods funded from the state budget as stipulated in Decision No. 20/2016/QĐ-TTg shall not overlap with other sources of funding from the state budget.

2. Based on the provisions of Clause 1 of this Article, anti-smuggling, commercial fraud, and fake goods agencies and units shall prepare support budget estimates as follows:

a) For expenditures within the regular budget estimates of the agency or unit approved by the competent authority as stipulated in Clause 1 of Article 6 of Decision No. 20/2016/QĐ-TTg and Clause 1 of Article 3 of this Circular, in cases where the regular budget estimate funds have been fully utilized but additional tasks arise (as specified in Clause 1 of Article 6 of Decision No. 20/2016/QĐ-TTg): The anti-smuggling, commercial fraud, and fake goods agency or unit shall base its supplementary budget estimates on the support funding provided for in Clause 1 of Article 4 of Decision No. 20/2016/QĐ-TTg and submit them to the supervising agency in accordance with the State Budget Law and guiding documents.

b) For special expenditures as stipulated in Clause 2 of Article 6 of Decision No. 20/2016/QĐ-TTg and Clause 2 of Article 3 of this Circular, the anti-smuggling, commercial fraud, and fake goods agency or unit shall prepare budget estimates and submit them to the supervising agency for consolidation in the state budget estimate, which will then be submitted to the financial department at the same level for consolidation in accordance with the State Budget Law and guiding documents.

3. Finalization work

a) Agencies and units receiving budget estimates for state budget funds supporting anti-smuggling, commercial fraud, and fake goods activities must maintain accounting records to record, account for, and consolidate in the annual state budget finalization of the agencies and units in accordance with the laws on state budget, accounting, and statistics.

b) Expenditures from state budget funds supporting the activities of anti-smuggling, commercial fraud, and fake goods agencies and units shall be accounted for and finalized in corresponding chapters, sections, and sub-sections as prescribed in the current State Budget Manual.

c) For voluntary contributions from domestic organizations and individuals, the anti-smuggling, commercial fraud, and fake goods agencies and units must report these as separate sources of funding (not combined with state budget funds).

Article 7. Implementation Provisions

1. This Circular takes effect from April 17, 2017.

2. This Circular abolishes the provisions on the expenditure limit for purchasing information in the field of smuggling, commercial fraud, and fake goods set forth in Clause 2 of Article 11 of Circular No. 153/2013/TT-BTC dated October 31, 2013 of the Ministry of Finance regarding procedures for collecting, depositing fines, fine receipts, and state budget funds to ensure the operation of administrative penalty enforcement forces, as amended by Clause 6 of Article 1 of Circular No. 105/2014/TT-BTC dated August 7, 2014 amending and supplementing some articles of Circular No. 153/2013/TT-BTC dated October 31, 2013 regarding procedures for collecting, depositing fines, fine receipts, and state budget funds to ensure the operation of administrative penalty enforcement forces.

3. In case the legal normative documents referred to for application in this Circular are amended, supplemented, or replaced by new documents, then the new documents shall be applied.

4. During the implementation process, if any difficulties arise, they should be promptly reported to the Ministry of Finance for study and resolution./