Decision No. 31/2006/QĐ-BGTVT on the method of collecting service fees for international flight passengers at Vietnamese airports

Pursuant to …;

Regarding the method for collecting Passenger Service Fees for international flights at Vietnamese airports

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MINISTER OF TRANSPORT

Pursuant to Decree No. 34/2003/NĐ-CP dated April 4, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Transport;

Pursuant to Decision No. 13/2006/QĐ-BTC dated March 13, 2006 of the Ministry of Finance on prices for certain aviation services;

Pursuant to Circular No. 2107/VPCP-CCHC dated April 20, 2006 of the Office of the Government regarding the notification of the Prime Minister's opinion on handling difficulties related to administrative procedures at airports;

Pursuant to Circular No. 8089/BTC-QLG dated June 30, 2006 of the Ministry of Finance regarding comments on collecting passenger service fees for international passengers into air ticket prices;

At the proposal of the Director of the Civil Aviation Authority of Vietnam,

DECISION:

Article 1. Passenger Service Fees for international flights shall be collected through airlines operating to and from Vietnam. Passengers pay the Passenger Service Fee together with the air transportation fare.

Article 2. The collection rate shall be implemented according to Decision No. 13/2006/QĐ-BTC dated March 13, 2006 of the Ministry of Finance on Passenger Service Fees for international flights at Vietnamese airports. Specifically:

Article 3. Exempted Parties

1. Transit passengers staying less than 24 hours;

2. Flight crew members (including those changing airports);

3. Infants under two years old (as of the departure time of the first leg of the journey).

Article 4. Reduced Rate Parties

Children aged two to twelve years old (as of the departure time of the first leg of the journey): Collected at 50% of the rate specified in Article 2.

Article 5. Payment

1. Airlines shall pay the collected Passenger Service Fees for international flights to the airport operator monthly (transfer costs borne by the transferring party).

2. Currency of payment: Vietnamese Dong (VND) or US Dollar (USD). Payments shall be made in accordance with current regulations on foreign currency management by the State of Vietnam. The exchange rate for payment is the average inter-bank foreign exchange transaction rate published by the State Bank of Vietnam at the time of payment.

3. The basis for payment is the "Collection Notice" issued by the airport operator based on the Passenger Manifest of each flight. The amount in the "Collection Notice" is determined by the formula:

In which:

a) The amount collected from adult passengers is calculated as follows:

b) The amount collected from child passengers is calculated as follows:

c) Commission fee for collection: The commission fee is determined at a rate of 2% of the monthly payment amount made by the airline for each settlement period of the Passenger Service Fee. Formula:

d) Overpayment (-) Underpayment (+) verified and confirmed.

Airlines have the right to request verification if discrepancies or errors are found in the "Collection Notice". Verification and settlement of any difference (if any) shall be carried out immediately in the next settlement period following the complaint period.

e) Documentation proving eligibility for exemption or reduction:

+ For the subject matter specified in Clause 1, Article 3: A copy of the ticket showing that the passenger is a transit passenger (Transit) in Vietnam.

+ For the subject matter specified in Clause 2, Article 3: A copy of the ticket clearly indicating the flight crew changing airports (Cabin Positioning).

+ Other exempted or reduced-rate subjects: Based on the Passenger Manifest.

4. The payment between the airport operator and the airline shall be carried out according to the contract signed between both parties detailing the time and form of payment, the method and deadline for late payment penalties.

The late payment penalty rate applied is 0.5% of the amount overdue for each day.

Article 6. Responsibilities of Airlines.

1. Collect Passenger Service Fees according to the rates and exemptions specified in Articles 2, 3, and 4.

2. Pay the airport operator the amount of Passenger Service Fees for international flights due for the month as stated in the "Collection Notice" according to Article 5 and the contract signed between the airline and the airport operator.

3. Provide complete Passenger Manifests and documentation proving eligibility for exemption or reduction upon request of the airport operator.

Article 7. Responsibilities of Airport Operators.

1. Issue and send the "Collection Notice" to relevant airlines according to Article 5 and the contract signed between the airline and the airport operator.

2. Monitor, verify, and settle payments for Passenger Service Fees with airlines.

3. Cooperate and promptly resolve any requests for verification from airlines regarding the collection of Passenger Service Fees (if any).

Article 8. This Decision takes effect from November 1, 2006.

Article 9. Collection process during transition period.

1. Within one year (from November 1, 2006 to November 1, 2007), airport operators shall collect additional Passenger Service Fees from international passengers who purchased tickets before November 1, 2006.

2. Airlines shall only process check-in for passengers traveling on flights with tickets purchased before November 1, 2006 at the airport collection counters after they have paid the additional Passenger Service Fees.

3. The enterprise operating the civil airport shall be responsible for confirming the number of passengers purchasing additional service fees with airlines on a flight-by-flight basis. This data serves as the basis for determining the amount to be deducted from the payment due from the airlines according to each settlement period.

Article 10. The Head of the Ministry's Office, the Inspector General of the Ministry, the Director of the Civil Aviation Administration of Vietnam; the General Directors of enterprises operating civil airports; and the airlines operating passenger transportation at Vietnamese civil airports are responsible for implementing this Decision./.