Circular No. 18 TC/TCĐN stipulates the management and utilization mechanism for foreign currency from crude oil exports sourced from Vietsovpetro Joint Stock Company's exploitation in 1991.

CIRCULAR

Article 1. Mechanism for managing and using foreign currency from crude oil exports sourced from Vietsovpetro Joint Stock Company's exploitation in 1991 is hereby regulated.

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In order to ensure unified management and effective utilization of the foreign currency derived from crude oil exported by PETECHIM Corporation from Vietsovpetro Joint Stock Company's exploitation in 1991, the Ministry of Finance stipulates as follows:

I/ GENERAL PROVISIONS:

1\. The State assigns PETECHIM Corporation the task of exporting the entire volume of crude oil produced by Vietsovpetro Joint Stock Company. PETECHIM Corporation shall be responsible for developing markets, identifying buyers, and applying the most advantageous export methods to ensure the highest possible foreign currency revenue for the State.

PETECHIM Corporation shall enter into economic contracts with Vietsovpetro Joint Stock Company regarding the "delivery of crude oil" for export purposes.

2\. All foreign currency proceeds from crude oil exports constitute the State's foreign currency revenue. The utilization of this foreign currency will be directly managed by the Minister of Finance for the objectives outlined in the State plan.

3\. Units utilizing foreign currency from crude oil exports to import petroleum products shall follow the principle of purchasing foreign currency from the State.

II/ SPECIFIC PROVISIONS:

1\. Foreign currency obtained from crude oil exports shall be temporarily deposited by the State into the foreign currency account of PETECHIM Corporation opened at Vietnam Commercial Bank. All foreign currency interest generated from this account shall be remitted by PETECHIM Corporation into the State foreign currency fund.

PETECHIM Corporation may only utilize the foreign currency in the aforementioned account upon receiving disbursement orders from the Minister of Finance.

2\. In principle, based on 100% of the value of each crude oil consignment after receipt of payment (excluding any fees), PETECHIM Corporation shall be responsible for remitting export taxes and export turnover taxes according to the law; the remaining portion will be divided equally between PETECHIM Corporation as commission for crude oil exports and XNLD Vietsovpetro. Of this, 50% will be prioritized for creating sources to import petroleum products according to the State plan and will be evenly divided between PETTOLIMEX and PETECHIM, while the remaining 50% will be foreign currency transferred to XNLD Vietsovpetro and utilized according to the disbursement orders of the Ministry of Finance.

However, in specific cases where there are difficulties, PETECHIM Corporation will report to the Ministry of Finance for its decision.

3\. The transfer of foreign currency to XNLD Vietsovpetro will be carried out by PETECHIM Corporation according to the disbursement orders of the Ministry of Finance and based on actual needs to ensure XNLD Vietsovpetro's production plan.

The Vietnamese Dong transferred to XNLD Vietsovpetro will be converted into US dollars at the buying rate of Vietnam Commercial Bank Vung Tau at the time when the bank reports the debt of the account held on behalf of the State budget.

The total amount of Vietnamese Dong and foreign currency transferred to XNLD Vietsovpetro shall not exceed the financial plan recorded by the Ministry of Finance in the annual State budget.

4\. Units PETROLIMEX and PETECHIM using foreign currency from crude oil to import petroleum products shall follow the principle of foreign currency trading, specifically:

a\. Each time requiring foreign currency to pay for imported gasoline and diesel, the importing unit must first transfer Vietnamese Dong to the State Treasury or into the account held on behalf of the State budget opened by PETECHIM at Vietnam Bank. The amount of foreign currency that the unit receives will be calculated based on the selling rate at the time when the commercial bank reports the debt of Vietnamese Dong to PETECHIM and PETROLIMEX.

b\. In cases where these units do not have Vietnamese Dong and cannot borrow from banks to purchase foreign currency, if they need foreign currency to timely settle payments for imported petroleum products, they may apply for advance foreign currency and accept debt in Vietnamese Dong equivalent to the amount of foreign currency used, subject to the bank's selling rate at the time of usage and bear interest according to the central bank's lending regulations for import-export units.

These units must settle their accounts with the State budget within a period not exceeding 45 days from the date of using foreign currency and accepting debt in Vietnamese Dong.

c\. If these units pay the State budget in Vietnamese Dong but do not have foreign currency from crude oil to use, they will receive foreign currency when they collect money from crude oil sales at the bank's selling rate at the time of paying Vietnamese Dong to the State budget.

5\. If PETECHIM and PETROLIMEX units sell imported petroleum products using foreign currency from crude oil exports and obtain foreign currency from domestic units, these units must resell the foreign currency to the Ministry of Finance to supplement the foreign currency source for importing petroleum products according to the State plan.

6\. On a monthly and quarterly basis, PETECHIM Corporation must report to the Ministry of Finance and the Ministry of Trade all data regarding the volume of crude oil received from Vietsovpetro Joint Stock Company for export, foreign currency proceeds, and simultaneously send copies to the Ministry of Heavy Industry for information.

Specifically, detailed reports on utilized foreign currency and the users thereof shall be reported to the Ministry of Finance.

During the implementation of this Circular, if there are any issues, relevant units shall reflect them to the Ministry of Finance for consideration and resolution./.