Joint Circular No. 44/TT/LB stipulates the payment for units exporting goods to import materials and equipment for construction works under the management of the Ministry of Energy.

JOINT CIRCULAR

Regulations on payment to export units for importing materials and equipment for construction projects under the management of the Ministry of Energy

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Pursuant to Decision No. 61-CT dated February 25, 1992 and Directive No. 49-CT dated February 12, 1992 of the Chairman of the Council of Ministers regarding the construction of the 500 kV North-South power transmission system; the operation of Units 5 and 6 of the Hoa Binh Hydroelectric Plant in 1992 and Units 7 and 8 in 1993;

In accordance with the Construction Management Regulation issued together with Decree No. 385-HĐBT dated November 7, 1990 of the Council of Ministers;

To ensure that materials and equipment for the projects are imported according to schedule and to facilitate payment in goods with foreign countries for the importation of materials and equipment for the projects in accordance with signed contracts;

The Ministry of Finance and the Ministry of Energy hereby regulate the payment of capital to units participating in exporting goods to pay foreign countries in contracts for importing materials and equipment for construction projects under the management of the Ministry of Energy as follows:

I- GENERAL PROVISIONS:

1\. The capital for payment to export units for importing foreign materials and equipment according to import contracts for project materials and equipment is part of the investment capital of the project.

The Project Owner (or the agency entrusted by the Minister of Energy to act on behalf of the Project Owner - hereinafter referred to collectively as the Project Owner) is responsible before the State and the Ministry of Energy for signing export contracts to import materials and equipment for construction projects approved by the State; implementing payments to foreign countries and being responsible for the legal basis (documents, accounting) to pay the exporting unit and settle accounts with the Ministry of Energy and the Ministry of Finance regarding the amount paid to the aforementioned exporting units.

2\. Export units signing contracts with the Project Owner undertaking the task of exporting goods to pay foreign countries must be responsible before the State, the Ministry of Energy, and the Project Owner for fully implementing the signed export contracts with foreign countries to ensure the timely importation of project materials and equipment as stipulated.

3\. At the request of the Project Owner, with the opinion of the Ministry of Energy, the Ministry of Finance may act on behalf of the Project Owner to directly pay the exporting units according to the signed contracts to import materials and equipment for the project.

4\. The exchange rate for paying exported goods shall be determined by the Ministry of Finance prior to export (after negotiating with the exporting unit and the Project Owner).

5\. The Ministry of Finance shall implement the provision of advance capital to the Project Owner, while acting on behalf of the Project Owner to pay the exporting units according to the contracts for importing materials and equipment for the project through the State Treasury System.

II\. SPECIFIC REGULATIONS:

1\. The exporting unit directly paid by the Ministry of Finance according to this Circular at the request of the Project Owner is the main unit signing contracts directly with the Project Owner. Payment to the unit authorized to export goods by the main unit, if any, shall be the responsibility of the main unit.

2\. The Project Owner (or the unit entrusted by the Project Owner) and the exporting unit must register with the Ministry of Finance on the exchange rate for paying exported goods for each type or group of goods and obtain the agreement and decision of the Ministry of Finance before exporting. This exchange rate applies to the entire contract. During the implementation of the contract, if there is a significant change in the exchange rate, it will be reviewed and may be adjusted.

This exchange rate shall not exceed the buying rate published by the Foreign Trade Bank. Any other exchange rate different from the rate specified in this Circular must have a decision of the Chairman of the Council of Ministers.

In cases where goods are delivered abroad or the delivery is offset by another form, the Project Owner and the exporting unit must present legal documents to the Ministry of Finance to negotiate the exchange rate for payment.

3\. Payment procedures:

a\. Advance payment:

The Ministry of Finance provides advance capital to the Project Owner and acts on behalf of the Project Owner to pay the exporting unit in two stages:

- When the goods are completely loaded onto ships at Vietnamese ports, the exporting unit is paid 80% of the value of the shipment. Payment documents include:

+ A letter from the Project Owner requesting the Ministry of Finance to provide advance capital for the project and to act on behalf of the Project Owner to pay the exporting unit, clearly stating the legal basis for the payment documents, the unit to be paid, account number, and the converted Vietnamese dong amount from foreign currency.

+ A payment request from the exporting unit

+ An export invoice

+ A quality certificate

+ A consignment note

+ A copy of the bill of lading

+ A copy of the export permit

- After the foreign party has received all the goods, the exporting unit is paid the remaining value of the shipment.

Payment documents include:

+ A letter from the Project Owner requesting the Ministry of Finance to provide additional advance capital for the project and to act on behalf of the Project Owner to pay the exporting unit.

+ Confirmation from the foreign party that they have received the full value of the consignment (accompanied by the required procedures according to regulations) if the exporting unit has completed the shipment to the foreign party.

The total value of the shipment to be paid (in Vietnamese dong) is based on the value (in foreign currency) of each type or group of goods and the exchange rate of that type or group of goods at the time the exporting unit completes the loading of the goods onto ships at Vietnamese ports.

Each time providing advance capital for the project and acting on behalf of the Project Owner to pay the exporting unit for importing materials and equipment for the project, the Ministry of Finance sends the Project Owner a set of documents for tracking and recording the construction investment capital of the project.

b\. Official payment:

When the equipment of the project has been imported according to the contract signed between the Project Owner and the foreign country using foreign currency obtained through the aforementioned goods-for-goods method, the Ministry of Finance implements the allocation of investment capital for the project according to the current construction investment capital allocation system, while recovering (deducting) the previously provided advance capital.

III- RESPONSIBILITY FOR IMPLEMENTATION:

1\. The Ministry of Energy, as the principal investor, is responsible for directing the Project Owners (or units entrusted by the Project Owner) to import materials and equipment for installation in projects according to the State's schedule and to make payments to foreign countries according to signed contracts, reviewing and approving settlements for each export contract for importing materials and equipment for the project so that the Project Owner can use them as the basis for recording construction investment capital for the project.

2/ The project investor (or the unit entrusted by the project investor) shall be responsible before the Ministry of Industry and Trade and the Ministry of Finance for the implementation of signed contracts, bear legal responsibility for certificates, invoices, and other bases stipulated in the import contract and the agency contract for units exporting goods, and be responsible for the entire amount proposed to the Ministry of Finance for payment to the units exporting goods.

After concluding the delivery contract with foreign countries to import materials and equipment for the project, settle accounts with the Ministry of Industry and Trade and the Ministry of Finance regarding the amount paid to the units exporting goods; when the settlement is approved, record the investment capital for construction projects according to the prescribed regulations.

3/ The supervising ministry of the exporting unit and the exporting unit shall be responsible for delivering goods to foreign countries in accordance with the type, specifications, quality, and delivery time specified in the signed contract, work with the project investor and the Ministry of Finance to agree on exchange rates before each shipment, settle accounts with the project investor upon completion of each shipment and at the end of the contract, repay the subcontractor unit (if any), prevent and mitigate all risks in the export process, and the State budget shall not be responsible for the consequences of such risks.

4/ The Ministry of Finance: based on the payment plan for the exporting units established by the Ministry of Industry and Trade and on the proposal of the project investor, shall pay the export goods money directly to the main exporting unit on behalf of the project investor.

This payment amount shall be transferred directly into the account of the main exporting unit through the National Treasury system by the Ministry of Finance.

These provisions of this Circular shall take effect from the date of signing and shall apply to construction projects funded by state budget funds and managed by the Ministry of Finance.

During the implementation process, if there are any arising difficulties, the units need to report them promptly for the two ministries to consider and resolve.