Decision No. 3107/QD-BTC Issuing the Regulation on Management and Use of Revenue from Law Enforcement in Anti-Smuggling, Commercial Fraud, and Counterfeit Goods

 

Pursuant to …;

Issuing regulations on management and use of revenue from handling violations of law in the field of anti-smuggling, commercial fraud, and counterfeit goods

field of anti-smuggling, commercial fraud, and counterfeit goods

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THE MINISTER OF FINANCE

Pursuant to the Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;
Pursuant to Circular No. 59/2008/TT-BTC dated July 4, 2008 of the Ministry of Finance guiding the management and use of revenue from handling violations of law in the field of anti-smuggling, commercial fraud, and counterfeit goods;
Pursuant to Circular No. 51/2010/TT-BTC dated April 14, 2010 of the Ministry of Finance amending and supplementing Circular No. 59/2008/TT-BTC dated July 4, 2008 of the Ministry of Finance guiding the management and use of revenue from handling violations of law in the field of anti-smuggling, commercial fraud, and counterfeit goods;
supplements Circular No. 59/2008/TT-BTC dated July 4, 2008, of the Ministry of Finance guiding the management and use of revenue from the handling of violations of laws in the field of anti-smuggling, commercial fraud, and counterfeit goods;
FIELD OF ANTI-SMUGGLING, COMMERCIAL FRAUD, AND COUNTERFEIT GOODS
At the proposal of the Director of the Planning and Finance Department, the Director General of the Tax General Department, the Director General of the Customs General Department,

Pursuant to …;

Article 1. This decision promulgates the regulations on management and use of revenue from handling violations of law in the field of anti-smuggling, commercial fraud, and counterfeit goods for the forces with functions to combat smuggling, commercial fraud, and counterfeit goods under the Ministry of Finance.

Article 2. This decision takes effect from the date of signature, all previous provisions contrary to this decision are abolished.

Article 3. The Director General of the Tax General Department, the Director General of the Customs General Department, the Director of the Planning and Finance Department, the Head of the Ministry's Office, and the Heads of related units are responsible for implementing this decision./.

 

 

REGULATIONS

MANAGEMENT AND USE OF REVENUE FROM HANDLING VIOLATIONS OF LAW IN THE FIELD OF ANTI-SMUGGLING, COMMERCIAL FRAUD, AND COUNTERFEIT GOODS

c) Supporting families of officers of agencies and units combating smuggling, commercial fraud, and counterfeit goods who die during the process of investigating and apprehending smugglers, commercial fraudsters, and distributors of counterfeit goods: a maximum of not more than twenty million dong per person per case.
(Annexed to Decision No. 3107/QD-BTC dated November 26, 2010 of the Minister of Finance)

These regulations apply to units under the Tax Authority and the Customs Authority assigned the main responsibility for inspecting and handling violations of smuggling, commercial fraud, and counterfeit goods according to the law (referred to collectively in these regulations as the main authority against smuggling).

PART I

GENERAL PROVISIONS

Article 1. The management and use of administrative violation fines and criminal law penalties not within the field of anti-smuggling, commercial fraud, and counterfeit goods by the Tax Authority and the Customs Authority shall continue to be implemented according to current laws and regulations.

Principles for managing and using revenue from anti-smuggling, commercial fraud, and counterfeit goods activities deposited in temporary accounts:

Article 2. 1. The main authority against smuggling may use a portion of the funds remaining in the temporary account after deducting reasonable and legitimate expenses incurred during the process of handling administrative and criminal law violations in the field of smuggling, commercial fraud, and counterfeit goods to invest in material infrastructure, purchase equipment and means of operation, and reward organizations and individuals who participate in detecting, arresting, and handling acts of smuggling, commercial fraud, and counterfeiting.

2. All amounts collected according to Point 2, Part I of Circular No. 59/2008/TT-BTC dated July 4, 2008 of the Minister of Finance must be deposited into the temporary account opened at the State Treasury by the Financial Authority and managed uniformly by the Financial Authority. Amounts collected by central and provincial level main authorities against smuggling should be deposited into the temporary account opened at the State Treasury by the Provincial Financial Department, while amounts collected by county-level and lower main authorities against smuggling should be deposited into the temporary account opened at the State Treasury by the County Financial Authority.

The retained funds at the main authorities against smuggling (after deducting reasonable expenses) will be transferred by the local financial authority to the deposit account of these authorities at the State Treasury for expenditure control.

The amount deposited into the temporary account after deducting allowable expenses and the portion used to supplement the budget as stipulated in these regulations must be remitted to the local budget for use according to the State Budget Law.

3. The heads of the main authorities against smuggling shall base their specific regulations on the current state and ministry standards for expenditures to determine the amount of funds from deposits in the "temporary receipt and retention" account that can be used during the process of handling administrative and criminal law violations in the field of anti-smuggling, commercial fraud, and counterfeit goods, ensuring economy and effectiveness.

The retained funds for use at the main authorities against smuggling include:

Chapter II

SPECIFIC PROVISIONS

Article 3. - 100% of the total amount deposited in the "temporary receipt and retention" account after deducting reasonable and legitimate expenses incurred during the process of handling administrative and criminal law violations involving counterfeit goods.

- 50% of the total amount deposited in the "temporary receipt and retention" account after deducting reasonable and legitimate expenses incurred during the process of handling administrative and criminal law violations involving smuggling and commercial fraud.

Contents of the retained funds for use at the main authorities against smuggling:

Article 4. The funds specified in Article 3 are considered 100% and are used as follows:

1. Using from 30% to 50% for the following purposes:

a) Rewarding organizations and individuals with outstanding achievements in anti-smuggling, commercial fraud, and counterfeit goods work. The maximum reward for an individual, decided by the head of the main authority against smuggling based on the available funds for this purpose, is not more than 2,000,000 VND/person/one time and not more than 2,000,000 VND/organization/one time.

b) Providing subsistence allowance during treatment for officers of the main authority against smuggling injured or harmed during investigation and arrest; paying hospital fees for cases without health insurance coverage or where health insurance only partially covers the costs: up to a maximum of 20,000,000 VND/person/case.

c) Supporting the families of officers of the main authority against smuggling who die during the investigation and arrest of smugglers, commercial fraudsters, and counterfeiters: up to a maximum of 20,000,000 VND/person/case.

c) Support for the families of officials from agencies and units combating smuggling who die during the process of investigating and apprehending smugglers, traders in counterfeit goods, and commercial fraud: a maximum of not more than twenty million VND per person per case.

d) For night overtime allowances, allowances for concurrently held positions for officials participating in anti-smuggling, commercial fraud, and fake goods work (in addition to the expenses already included in the case costs as stipulated by the state): Implement according to the general regulations of the locality as prescribed by the People's Committee of the province where the funds are deposited into the state budget.

In cases where the revenue is not significant but involves many forces participating in handling, the head of the agency or unit primarily responsible for anti-smuggling may use up to a maximum of 10% of the total funds allocated (this 10% is taken from the funds allocated for the purposes specified in Clause 2 below) to supplement allowances and rewards for organizations and individuals with outstanding achievements as stipulated herein. In cases where multiple forces participate in a single case, the head of the agency or unit primarily responsible for anti-smuggling shall be responsible for considering, based on the complexity of the case and the level of participation of each agency or unit, to provide allowances and rewards to participating agencies and units, ensuring transparency and fairness.

e) Expenses for disseminating, publicizing, and educating the law on preventing and combating smuggling, commercial fraud, and fake goods, training and providing allowances for officials engaged in anti-smuggling, commercial fraud, and fake goods work, conference, seminar, and specialized survey expenses for anti-smuggling, commercial fraud, and fake goods. Implement according to current state regulations.

f) Support expenses for the guidance and management of superior agencies: 10% of the funds allocated for the purposes specified in Clause 1 of this Article. The head of the superior agency or unit is responsible for managing and using the support funds from subordinate agencies or units primarily responsible for anti-smuggling in accordance with the current state regulations, standards, and internal expenditure rules of the Ministry of Finance and the unit. Settlement, accounting, and bookkeeping for these funds shall be carried out at the superior agency or unit in accordance with current laws and the provisions of this Regulation.

The head of the agency or unit primarily responsible for anti-smuggling shall base the specific proportion of funds allocated for the purposes specified in this Clause on the actual situation of anti-smuggling, commercial fraud, and fake goods work in the area, ensuring economy and effectiveness.

2. The remaining amount after allocating funds for the purposes specified in Clause 1 of this Article shall be used for investment in material infrastructure, procurement of equipment, and means of operation to serve the prevention and combat of smuggling, commercial fraud, and fake goods.

Investment in material infrastructure, procurement of equipment, and means of operation must comply with current state standards and norms and the guidelines of the Ministry of Finance. In cases where there are no established standards or norms for certain expenditures, the head of the agency or unit primarily responsible for anti-smuggling shall compile and report to the General Department of Customs and the General Department of Taxation for submission to the Ministry of Finance (through the Planning and Finance Department) for consideration and decision.

Article 5. Agencies and units primarily responsible for anti-smuggling that allocate additional operating funds from anti-smuggling, commercial fraud, and fake goods revenues must maintain accounting records and organize accounting for the use of these funds in strict compliance with current regulations. Settlement and accounting for these funds shall be carried out in accordance with current laws and the provisions of this Regulation.

Any surplus funds added at the end of the year that have not been fully utilized can be transferred to the following year for continued use for the purposes specified in this Regulation.

Chapter III

IMPLEMENTATION

Article 6. This Regulation takes effect from the date of signature and applies to units under the Tax Authority and Customs Authority assigned the primary responsibility for inspecting and handling violations related to smuggling, commercial fraud, and fake goods as stipulated by law.

Management and use of fines from administrative violations and proceeds from criminal cases outside the scope of anti-smuggling, commercial fraud, and fake goods shall not follow the provisions of this Regulation but shall follow current state regulations.

During implementation, if difficulties arise, units are advised to report to the Ministry of Finance (Planning and Finance Department) for research and resolution.

 

ANNEX

Example illustration of the use of proceeds from the handling of violations in the field of anti-smuggling, commercial fraud, and fake goods

1. The total amount of revenue deposited into the "temporary receipt, temporary retention" account during the process of handling administrative violations and criminal law violations in the field of smuggling, commercial fraud, and fake goods by Tax Bureau A - General Department of Taxation in 2010 was: 10,000 million VND, including:

- For the fake goods case: 4,500 million VND.

- For the smuggling and commercial fraud case: 5,500 million VND.

2. Reasonable and legitimate expenses incurred during the process of handling administrative violations and criminal law violations in the field of smuggling, commercial fraud, and fake goods, which are allowed to be used from the revenue deposited into the "temporary receipt, temporary retention" account according to Tax Bureau A, were: 6,000 million VND, including:

- For the fake goods case: 2,000 million VND.

- For the smuggling and commercial fraud case: 4,000 million VND.

3. Tax Bureau A is entitled to use the remaining amount of 3,250 million VND from the revenue deposited into the "temporary receipt, temporary retention" account in 2010 for investment in material infrastructure, procurement of equipment, operational means, and rewarding organizations and individuals who participated in detecting, apprehending, and handling acts of smuggling, commercial fraud, and fake goods. Specifically.

- For the fake goods case: 2,500 million VND (4,500 million VND - 2,000 million VND).

- For the smuggling and commercial fraud case: 750 million VND (5,500 million VND - 4,000 million VND) x 50%.

4. The 3,250 million VND mentioned above, Tax Bureau A will use as follows:

4.1. Use up to a maximum of 1,625 million VND (3,250 million VND x 50%) for the following purposes:

a) Expenditure for immediate or year-end rewards; supplementary payments during treatment for officials of agencies and units combating smuggling who suffer accidents, injuries, or death during investigation and arrest; payment of hospital fees for cases without medical insurance or where medical insurance covers only part of the costs; supplementary payments for night work and overtime; supplementary payments for concurrently held positions; expenditure for the dissemination, propaganda, and education on laws; training and professional development expenses for officials tasked with combating smuggling, trade fraud, and counterfeit goods; conference, seminar, and specialized survey expenditures for combating smuggling, trade fraud, and counterfeit goods: In accordance with Points a, b, c, and d of Clause 1, Article 4 of the Regulation issued together with Decision No. 3107/QĐ-BTC dated November 26, 2010, of the Minister of Finance.

In cases where the retained revenue for use is not large but involves many forces participating in handling, the head of the agency or unit primarily responsible for combating smuggling may additionally use up to a maximum of 162.5 million VND (= 1,625 million VND x 10%) to supplement supplementary payments and rewards for organizations and individuals with outstanding achievements as stipulated in Points a, b, and c of Clause 1, Article 4 of the Regulation issued together with Decision No. 3107/QĐ-BTC dated November 26, 2010, of the Minister of Finance.

b) Expenditure for the guidance and management activities of higher-level agencies (General Department of Taxation): up to a maximum of 162.5 million VND (= 1,625 million VND x 10%).

4.2. The remaining budget of 1,625 million VND (= 3,250 million VND - 1,625 million VND), the Tax Bureau A may use for investment in infrastructure, procurement of equipment, and means of operation to serve the prevention and combat of smuggling, trade fraud, and counterfeit goods according to the current allocation levels, regulations, standards, and guidelines of the Ministry of Finance.

In cases where the retained revenue for use is not large but involves many forces participating in handling, and the head of the agency or unit primarily responsible for combating smuggling decides to use additional funds: up to a maximum of 162.5 million VND (= 1,625 million VND x 100%) to supplement supplementary payments and rewards for organizations and individuals with outstanding achievements as stipulated in Points a, b, and c of Clause 1, Article 4 of the Regulation issued together with Decision No. 3107/QĐ-BTC dated November 26, 2010, of the Minister of Finance, then: the remaining budget for investment in infrastructure, procurement of equipment, and means of operation to serve the prevention and combat of smuggling, trade fraud, and counterfeit goods of the Tax Bureau A is 1,462.5 million VND (= 1,625 million VND - 1,625 million VND).