Circular No. 200/2016/TT-BTC on the establishment, management, use, and settlement of funds to ensure the operation of civil enforcement agencies and enforcement costs

CIRCULAR

Regulations on the establishment, management, use, and settlement of funds for the operation of civil enforcement agencies and for compulsory execution of civil judgments.
Funds for the operation of civil enforcement agencies,
Compulsory execution of civil judgments funds

Pursuant to the Civil Enforcement Law No. 26/2008/QH12 dated November 14, 2008; the Law Amending and Supplementing Certain Provisions of the Civil Enforcement Law No. 64/2014/QH13 dated November 25, 2014;

Pursuant to the State Budget Law No. 83/2015/QH13 dated June 25, 2015;

Pursuant to the Law on Fees and Charges No. 97/2015/QH13 dated November 25, 2015;

Pursuant to Decree No. 62/2015/NĐ-CP dated July 18, 2015 of the Government detailing and guiding certain provisions of the Civil Enforcement Law;

Pursuant to Decree No. 17/2010/NĐ-CP dated March 4, 2010 of the Government on auctioning assets;

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

At the proposal of the Director of the Administrative and Public Service Financial Department;

The Minister of Finance issues this Circular regulating the establishment, management, use, and settlement of funds for the operation of civil enforcement agencies; compulsory execution of civil judgments funds.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular stipulates the financial management mechanism for compulsory execution of civil judgments funds and the establishment, management, use, and settlement of funds for the operation of civil enforcement agencies, including:

1. Content of expenses, expense levels, sources of compulsory execution of civil judgments funds (hereinafter referred to collectively as enforcement expenses); procedures for temporary advance payments, suspension of temporary advance payments of enforcement expenses, preparation of budgets, implementation, and settlement of compulsory execution of civil judgments funds organized by civil enforcement agencies.

2. Establishment, management, use, and settlement of funds for the operation of civil enforcement agencies.

Article 2. Applicability

1. Civil enforcement agencies.

2. Other agencies, organizations, and individuals related to civil enforcement work.

Chapter II

FINANCIAL MANAGEMENT MECHANISM FOR COMPULSORY EXECUTION OF CIVIL JUDGMENTS FUNDS

ENFORCEMENT OF COURT DECISIONS BY FORCED EXECUTION

Article 3. Payment of Enforcement Expenses

1. Enforcement expenses shall be paid by the person subject to enforcement, the person entitled to enforcement, or the third party against whom enforcement is carried out, or deducted from proceeds obtained, proceeds from the sale of seized assets at auction, including assets currently held, rented, borrowed, repaired, or modified by a third party, except where enforcement expenses are guaranteed by the state budget.

2. In cases where parties request a revaluation of assets subject to enforcement pursuant to point b, Clause 1, Article 99 of the Civil Enforcement Law No. 26/2008/QH12, they must pay part of the valuation costs before the public announcement of the asset auction.

Civil enforcement agencies shall base the amount of revaluation costs on the previous nearest valuation cost and the actual valuation cost in the locality at the time of the party's request for revaluation to determine the amount of revaluation costs to be paid and notify the party requesting revaluation to pay the valuation costs.

Upon completion of the revaluation, the party will pay the difference between the total actual revaluation costs and the costs already paid by the party.

Civil enforcement agencies are responsible for monitoring, recording, and fully reflecting in accounting books all payments of valuation costs made by the parties in accordance with the State Budget Law and Accounting Law.

Article 4. Enforcement Expenses to be Borne by the Person Subject to Enforcement

1. Costs of notification of enforcement:

a) Costs of notification through mass media (television, radio, press);

b) Allowances for those directly implementing enforcement notifications (enforcement officers, local government representatives, social organization representatives, and other components).

2. Costs of purchasing raw materials, fuel; renting protective equipment, medical equipment, fire prevention, explosion prevention, and other necessary equipment for enforcement.

3. Costs for valuation, revaluation, appraisal, and auction of assets:

a) Valuation and revaluation costs:

- Cost of valuation and revaluation services: Service fees for valuation and revaluation according to contracts with valuation organizations.

- Costs related to valuation when the enforcement officer determines the asset value according to Clause 3, Article 98 of the Civil Enforcement Law No. 26/2008/QH12.

b) Allowances for members participating in determining and revaluing asset prices;

c) Appraisal costs: Costs for appraising assets and other legitimate actual costs for conducting the appraisal;

d) Auction costs:

- Auction fees and other reasonable actual costs for auctions when the civil enforcement agency entrusts an organization to conduct the auction.

- Rent for venues and means of transportation for organizing auctions, posting, and publicly announcing the auction of assets when the civil enforcement agency directly organizes the auction to enforce judgments.

4. Costs for leasing, guarding, and preserving assets; costs for loading, transporting assets; costs for hiring labor and expenses serving construction, demolition; costs for surveying and determining boundaries to carry out enforcement.

5. Costs for temporarily holding, seizing assets, documents, and materials:

a) Costs for renting protective equipment, venues, and other legitimate actual costs directly serving the implementation of measures to temporarily hold, seize assets, documents, and materials;

b) Allowances for those directly implementing decisions to apply measures to temporarily hold, seize assets, documents, and materials.

6. Costs for compensating those directly involved in enforcement and protecting enforcement proceedings as stipulated in point a, Clause 2, Article 43 of Decree No. 62/2015/NĐ-CP dated July 18, 2015 of the Government detailing and guiding certain provisions of the Civil Enforcement Law (hereinafter referred to as Decree No. 62/2015/NĐ-CP).

7. Costs for seizure and disposal of assets as stipulated in Clause 4, Article 17 of Decree No. 62/2015/NĐ-CP corresponding to the proportion of money and assets they actually receive.

8. Other costs prescribed by law serving enforcement.

Article 5. Enforcement costs shall be borne by the person subject to enforcement.

1. The cost of re-evaluating assets as stipulated in point a, Clause 3, Article 4 of this Circular if the person subject to enforcement requests a re-evaluation, except in cases where the re-evaluation is due to violations of asset evaluation regulations.

2. A portion or all of the costs for constructing barriers and demolishing structures as determined by court judgments or decisions that require the person subject to enforcement to bear such costs.

3. Costs for seizing and disposing of assets as stipulated in Clause 4, Article 17 of Decree No. 62/2015/ND-CP corresponding to the proportion of money or assets they actually receive.

4. If the person subject to enforcement requests the enforcement agency to apply enforcement security measures incorrectly, then that person must settle actual expenses incurred from enforcing the decision to apply such enforcement security measures.

Article 6. Enforcement costs shall be borne by third parties.

1. Third parties shall bear enforcement costs in the following situations:

a) When a third party managing assets refuses to voluntarily hand over the assets to the buyer at a public auction and is subsequently subjected to enforcement measures, they must bear the enforcement costs as provided for in Clause 5, Article 17 of Decree No. 62/2015/ND-CP;

b) When a third party, whether an organization or individual, holding money or assets of the person subject to enforcement must bear enforcement costs as provided for in Clause 3, Article 23 of Decree No. 62/2015/ND-CP.

2. The content of the costs that third parties must bear shall be implemented according to the cost items specified in Article 4 of this Circular.

Article 7. Enforcement costs shall be covered by the state budget.

1. Costs as stipulated in Clause 3, Article 73 of the Civil Execution Law No. 26/2008/QH12.

2. Costs as stipulated in Clause 1, Article 43 of Decree No. 62/2015/ND-CP.

3. Costs for re-evaluating assets as stipulated in point a, Clause 3, Article 4 of this Circular in cases of violations of asset evaluation regulations as provided for in point a, Clause 1, Article 99 of the Civil Execution Law No. 26/2008/QH12.

4. Fees and costs for unsold auctioned assets as stipulated in Clause 3, Article 43 of Decree No. 17/2010/NĐ-CP dated March 4, 2010 of the Government on Auctioning Assets (hereinafter referred to as Decree No. 17/2010/NĐ-CP).

5. Costs incurred during the execution of forced enforcement measures but had to be suspended due to the following reasons:

a) Due to force majeure as defined in Point a, Clause 3, Article 4 of Decree No. 62/2015/ND-CP;

b) In cases where the head of the civil enforcement agency issues a decision to suspend or temporarily halt enforcement proceedings to resolve complaints as provided for in Articles 49 and 50 of the Civil Execution Law No. 26/2008/QH12.

6. Enforcement costs when the person subject to enforcement has assets but the value of those assets is only sufficient to cover the enforcement costs as stipulated in point a, Clause 1, Article 44a of the Civil Execution Law No. 64/2014/QH13.

Article 8. Levels of enforcement costs for civil enforcement.

1. Costs for participants in meetings to discuss enforcement actions, valuation, and revaluation of assets subject to enforcement:

a) Chairperson: VND 150,000/person/day;

b) Participants: VND 100,000/person/day.

2. Allowances for those directly involved in enforcement actions:

a) Enforcement officers, other civil servants engaged in enforcement work, prosecutors, police officers, self-defense militia members, local government representatives directly participating in enforcement actions:

- Chairperson: VND 150,000/person/day for participation in enforcement.

- Other participants: VND 100,000/person/day for participation in enforcement.

b) Representatives of residential wards, village chiefs, village elders, and other individuals mobilized to participate in enforcement actions when necessary: VND 100,000/person/day for participation in enforcement.

3. Allowances for those directly responsible for announcing enforcement actions, verifying enforcement conditions; those directly implementing decisions to apply temporary seizure and retention measures, confiscation of assets and documents:

a) Enforcement officers, other civil servants engaged in enforcement work, prosecutors, police officers: VND 70,000/person/day;

b) Self-defense militia members, local government representatives, and other individuals: VND 100,000/person/day.

4. Travel expenses for those going to verify enforcement conditions: Implemented according to Circular No. 97/2010/TT-BTC dated July 6, 2010 of the Ministry of Finance regarding travel expenses and organizing conferences within state agencies and public institutions.

5. Hiring interpreters for enforcement actions:

a) Interpreting ethnic languages: Calculated based on the highest minimum wage level set by the State at the time of hiring. Depending on the specific location, the head of the civil enforcement agency will decide on the payment amount for the work performed accordingly.

(Example: The highest minimum wage level set by the State is VND 3,500,000/month. The maximum daily rate for external hire labor costs is calculated as follows: VND 3,500,000 ÷ 22 days = VND 159,000).

b) Interpreting foreign languages: Implemented according to Circular No. 01/2010/TT-BTC dated January 6, 2010 of the Ministry of Finance regarding reception expenses for foreign visitors working in Vietnam, organizing international conferences and seminars in Vietnam, and domestic reception expenses.

6. Other expenses: Renting equipment and protective devices for enforcement; fire prevention and explosion control costs; renting venues and equipment for organizing auctions; appraisal fees; auction fees; renting surveillance and asset preservation services; costs for loading, unloading, and transporting assets, and other related expenses for enforcement actions shall be carried out based on contracts, settlement agreements, invoices, and valid and lawful expense receipts, and approved by the head of the civil enforcement agency.

Article 9. Advance payment for enforcement costs

1. In cases where enforcement costs have not yet been collected from the person subject to enforcement, the person entitled to enforcement, or the third party responsible for enforcement costs; the civil enforcement agency shall advance funds to the enforcers to organize enforcement from the budget allocated by the competent authority.

2. Advance payment and refund of advance payment for enforcement costs from the state budget:

a) Advance payment of enforcement costs from the state budget:

When enforcement costs have not yet been collected from the person responsible for enforcement costs, the civil enforcement agency shall make an advance payment of enforcement costs in accordance with Article 45 of Decree No. 62/2015/NĐ-CP and the regulations on advance payment from the State Budget Law. Before organizing enforcement, the enforcer must prepare and submit a draft budget for enforcement costs to be approved by the head of the civil enforcement agency, specifying: The enforcement measures to be applied; time and place of enforcement; enforcement plan; participating forces (number of people, composition); estimated enforcement costs.

Based on the draft enforcement budget and the approved enforcement plan, the enforcer shall proceed with the procedures to advance funds for enforcement activities from the budget allocated by the state budget to the civil enforcement agency, except in cases where the parties voluntarily pay the advance enforcement costs.

The documents and forms for advance payment of enforcement costs shall be implemented in accordance with Circular No. 91/2010/TT-BTC dated June 17, 2010, issued by the Ministry of Finance, guiding accounting practices for civil enforcement.

b) Refund of advance payment for enforcement costs:

After disposing of assets or collecting money from the person responsible for enforcement costs, the enforcer must immediately process the refund of previously advanced enforcement costs to the civil enforcement agency.

The civil enforcement agency is responsible for monitoring and urging the persons responsible for enforcement costs to recover the advanced funds.

c) Documents and forms for refund of advance payment for enforcement costs and payment of enforcement fees shall be implemented in accordance with Circular No. 91/2010/TT-BTC dated June 17, 2010, issued by the Ministry of Finance, guiding accounting practices for civil enforcement.

3. In cases where the parties voluntarily pay the advance enforcement costs in accordance with point b, Clause 1, Article 45 of Decree No. 62/2015/NĐ-CP, the civil enforcement agency shall determine the amount of funds requested from the parties based on the enforcement plan and the draft budget for enforcement costs.

Article 10. Preparation, execution, and settlement of enforcement cost budgets

The preparation, execution, and settlement of enforcement cost budgets are tasks under the state budget, carried out in accordance with the State Budget Law and implementing regulations. This circular specifies the following additional points:

1. Establishment of budget projections:

Civil enforcement agencies shall prepare a budget for enforcement costs and submit it to the Ministry of Justice for consolidation into the annual state budget according to regulations, including two separate parts:

a) Part of the advance enforcement cost budget;

b) Part of the state budget ensuring enforcement cost expenses as prescribed.

2. Execution and settlement:

a) Allocation of the budget: Based on the enforcement task budget already allocated in the annual budget and the actual enforcement cost expenditures of civil enforcement agencies at the end of the previous year, the Ministry of Justice will allocate and assign the advance enforcement cost budget to civil enforcement agencies within non-autonomous funds;

b) Adjustment of the budget: In cases where it is deemed necessary to adjust the advance enforcement cost budget of civil enforcement agencies that have been assigned, the Ministry of Justice will decide to reallocate the budget among civil enforcement agencies within the scope of the advance enforcement cost budget allocated by the state budget;

c) At the end of the year, upon completion of the adjustment period for settlement as stipulated by the State Budget Law and implementing regulations, any unused balance of the budget will be canceled according to regulations, and the remaining advance enforcement cost balance will be recovered by reducing the advance enforcement cost budget allocated in the annual budget of the civil enforcement agency;

d) Settlement of civil enforcement cost budgets shall be carried out in accordance with current regulations and consolidated in the annual settlement report of the civil enforcement agency.

For the advance enforcement cost budget of civil enforcement agencies, the agency shall compile a report on the use of the advance enforcement cost budget (allocated budget, amount of advance payments made, amount of advance payments recovered, remaining advance payments not recovered, reasons for non-recovery...) and report to the superior management agency. The Ministry of Justice will consolidate and submit this report to the Ministry of Finance along with the annual budget settlement report.

Chapter III

ESTABLISHMENT, MANAGEMENT, USE, AND SETTLEMENT OF FUNDS FOR THE OPERATIONS OF CIVIL ENFORCEMENT AGENCIES

Article 11. Sources of funds to ensure the operation of civil enforcement agencies

1. State budget.

Clause 2. The execution fee amount that units are allowed to use shall be in accordance with regulations.

Clause 3. The advance payment of persons who refuse to purchase assets as stipulated in Clause 3, Article 39 of Decree No. 17/2010/NĐ-CP and Clause 5, Article 27 of Decree No. 62/2015/NĐ-CP. After deducting legitimate expenses added to the unit's funding source.

Clause 4. Other sources of income as prescribed by law (if any).

Article 12. Contents of expenditures for the operation of civil enforcement agencies

Clause 1. Expenditures for individuals: Salary, wages, allowances, contributions based on salary (social insurance, health insurance, trade union fees, unemployment insurance), bonuses, collective welfare, and other payments to individuals as prescribed.

Clause 2. Payments for public services, office supplies, information, propaganda, communication, rental expenses, purchasing books and materials for work purposes.

Clause 3. Conference and domestic travel expenses, expenses for foreign missions and welcoming foreign delegations to Vietnam, organizing training and professional courses.

Clause 4. Professional business expenses, including:

a) Uniform costs for enforcement officers, inspectors, other civil servants, and other personnel involved in civil enforcement work;

b) Transportation costs, lodging allowances, and rental costs for accommodation for those not receiving state budget salaries participating in enforcement verification and notification work upon request from civil enforcement agencies;

c) Costs for hiring guides during the process of verification and notification of enforcement. Hiring interpreters for ethnic languages when the parties are ethnic minorities in Vietnam who do not know Vietnamese and when the parties are foreigners;

d) Rental costs for protective equipment and medical supplies;

đ) Fire prevention rental costs (if applicable);

e) Rental costs for locations and means of selling assets and goods; hiring auction companies according to contracts (if applicable);

g) Rental costs for asset and civil enforcement property storage;

h) Expenses for destroying evidence and assets:

- Allowances for the destruction evidence committee.

- Hiring experts and organizations to carry out the destruction of hazardous chemicals or other evidence and assets requiring specialized equipment to ensure safety and not affect the environment at the destruction site.

- Transportation costs for moving evidence and assets to the destruction site; rental costs for the destruction location, fuel purchases, and other expenses serving the destruction process.

i) Hiring appraisal costs, verification of conditions for civil enforcement;

k) Costs for announcing civil enforcement on mass media; postal service and direct announcement costs;

l) Hiring expert consultants for complex cases. The head of the civil enforcement agency is responsible for identifying complex cases requiring expert consultation;

m) Allowances for those directly implementing the seizure and urgent temporary detention of assets upon request of the Court; applying enforcement security measures;

n) Allowances for participants in civil enforcement work;

o) Costs for publicly disclosing information about the person subject to enforcement;

p) Other professional business expenses as prescribed;

q) Costs for implementing judicial assistance work as prescribed by law.

Clause 5. Purchase and regular maintenance and major repair expenses for fixed assets.

Clause 6. Expenses for collecting civil enforcement fees from retained civil enforcement fees in accordance with the Circular of the Ministry of Finance guiding procedures for collection, submission, exemption, reduction, management, and use of civil enforcement fees under the principle of not overlapping with state budget allocations.

Clause 7. Compulsory enforcement costs guaranteed by the state budget are stipulated in Article 7, Chapter II of this Circular.

Clause 8. Advance payment amounts that successful auction buyers refuse to pay after the auction ends or have signed a purchase contract but have not paid additional amounts as stipulated in Clause 5, Article 27 of Decree No. 62/2015/NĐ-CP shall be used to settle the following items in order:

a) Late enforcement interest rates related to financial guarantees and state compensation;

b) Advance state compensation costs as prescribed by the Law on State Compensation Liability;

c) Financial guarantees for enforcement;

d) Other necessary expenses as prescribed by law.

Article 13. Level of expenditure to ensure the operation of civil enforcement agencies

1. Expenditure contents serving the activities of civil enforcement agencies shall be implemented according to the established standards, criteria, and financial expenditure regulations issued by the competent authority.

2. This Circular guides certain special levels of expenditure in civil enforcement work as follows:

a) Allowance for individuals participating in the verification process, announcement of enforcement decisions; application of measures to secure enforcement; enforcement of court orders and commercial arbitration emergency measures:

- Enforcement officers, other civil servants involved in enforcement work, prosecutors, police: VND 70,000/person/day;

- Local government representatives and other individuals: VND 100,000/person/day;

b) Allowance for members attending the Civil Enforcement Directive Board meetings, asset valuation meetings (excluding asset valuation for compulsory civil enforcement):

- Chairperson: VND 150,000/person/day;

- Members: VND 100,000/person/day;

c) Expenditure for enforcement officers directly involved in reviewing and granting exemptions or reductions in enforcement; expenditure for members involved in transferring assets according to court judgments, transferring assets after auctioning organized by the person subject to enforcement: VND 100,000/person/day;

d) Expenditure for the destruction of evidence and property:

- Hiring experts and organizations for destruction: Based on contracts signed between the civil enforcement agency and the experts or destruction organizations;

- Allowance for individuals participating in the destruction of evidence and property: Chairperson VND 150,000/person/day, member VND 100,000/person/day;

đ) Allowance for members determining prices and conducting auctions: VND 70,000/person/day;

e) Hiring expert consultants for complex cases requiring written expert consultation: VND 500,000 - VND 700,000/report;

g) Hiring interpreters:

- Interpreting ethnic languages: Calculated based on the highest minimum wage region rate at the time of hiring, as stipulated by the State. Depending on the specific location, the head of the civil enforcement agency decides the payment amount for the above tasks appropriately.

(Example: The highest minimum wage level set by the State is VND 3,500,000/month. The maximum daily rate for external hire labor costs is calculated as follows: VND 3,500,000 ÷ 22 days = VND 159,000).

- Interpreting foreign languages: Implemented according to the provisions of Circular No. 01/2010/TT-BTC dated January 6, 2010, issued by the Ministry of Finance, regarding the expenditure system for receiving foreign guests for work in Vietnam, organizing international conferences and seminars in Vietnam, and domestic hospitality expenses.

h) Allowance for individuals directly implementing asset seizures and urgent temporary asset detentions according to court or commercial arbitration emergency measures; applying measures to secure enforcement, allowance level VND 70,000/person/time;

i) For other expenditures: Hiring means of transportation and protective equipment, fire prevention and firefighting costs, medical expenses; hiring venues and means for asset valuation and sale of goods; hiring storage and preservation of evidence and enforcement assets; hiring transportation, purchase of raw materials and other reasonable actual expenses based on contracts, invoices, and valid and lawful expense receipts, approved by the head of the civil enforcement agency.

3. Compulsory enforcement costs are guaranteed by the state budget according to the law and are implemented according to Chapter II of this Circular.

Article 14. Preparation, execution, and settlement of funds to ensure the operation of civil enforcement agencies

The preparation, execution, and settlement of funds to ensure the operation of civil enforcement agencies shall be carried out in accordance with the provisions of the State Budget Law, the Accounting Law, and other guiding documents.

Chapter IV

IMPLEMENTING PROVISIONS

Article 15. Implementation Provisions

1. This Circular takes effect from January 1, 2017, and shall be implemented from the 2017 budget year.

2. This Circular replaces Joint Circular No. 184/2011/TTLT-BTC-BTP dated December 19, 2011, issued by the Ministry of Finance and the Ministry of Justice on the financial management mechanism for compulsory enforcement costs of civil judgments; and Joint Circular No. 136/2012/TTLT-BTC-BTP dated August 16, 2012, issued by the Ministry of Finance and the Ministry of Justice on the preparation, management, use, and settlement of funds to ensure the operation of civil enforcement agencies and the Management and Liquidation Organization of assets of enterprises and cooperatives in bankruptcy situations.

3. In cases where the legal normative documents cited in this Circular are amended, supplemented, or replaced by other legal normative documents, the provisions of the amended, supplemented, or replacing documents shall apply.

4. During the implementation process, if there are any difficulties, units are requested to report to the Ministry of Finance for study and resolution./.