Circular No. 4714/TC/TCDN on the use of revenue from quota fees for the textile and garment industry

LETTER

OF THE MINISTRY OF FINANCE NO. 4714 TC/TCDN DATE 17 MAY 2002
ON THE USE OF REVENUE FROM TEXTILE APPAREL QUOTA FEES

Respected: Ministries, agencies at the ministerial level, government agencies

- PROVINCE PEOPLE'S COMMITTEES. provinces and centrally governed cities,

- Vietnam Textile and Apparel Corporation, Vietnam Textile and Apparel Association

The Ministry of Finance has received letters from some ministries, sectors, and localities requesting financial support for trade promotion expenses for enterprises from revenue generated from textile apparel quota fees, based on Decision No. 55/2001/QD-TTg dated April 23, 2001 of the Prime Minister approving the Strategy for Development and Certain Mechanisms and Policies to Support Implementation of the Textile and Apparel Industry Development Strategy until 2010 and Circular No. 106/2001/TT-BTC dated December 31, 2001 of the Ministry of Finance guiding the implementation of Decision No. 55/2001/QD-TTg, the Ministry of Finance hereby provides specific guidance on supporting trade promotion activities with revenue from textile apparel quota fees as follows:

I- CONTENT AND LEVEL OF SUPPORT FUNDS

1- Organizing exhibition booths and trade fairs abroad

1.1- Content of expenditure:

- Renting booth costs, transportation costs for displayed products.

- Expenses for the delegation participating in trade fairs and exhibitions abroad. participate in trade fairs and exhibitions abroad.

These expenses are determined based on legal documentation according to current regulations.

1.2- Level of support funds:

- Renting booth fees, transportation costs for products on display are supported up to a maximum of 70% of actual expenditures within the approved budget. - Expenses for the delegation participating in trade fairs and exhibitions abroad. shall be supported with a maximum of no more than seventy percent of the actual expenses within the approved budget estimate.

Staff members of the delegation who are eligible for support must be determined by the competent authority according to the current regulations.

+ Each enterprise: supports one person

+ Vietnam Textile and Apparel Association Office: supports one person

+ Vietnam Textile and Apparel Corporation Office: supports based on the actual number of people but not exceeding five people.

+ Textile and Garment Corporation Office: support based on the actual number of people The amount spent per staff member supported shall be in accordance with the provisions of the Ministry of Finance in Circular No. 45/1999/TT-BTC dated May 4, 1999 regarding travel expenses for state officials traveling abroad for short-term work. Other common expenses for the delegation shall be supported up to a maximum of 50% of actual expenditures within the approved budget. with a maximum of no more than five people.

The expenditure for each staff member receiving support shall be according to the level prescribed by the Ministry of Finance in Circular No. 45/1999/TT-BTC dated May 4, 1999, regarding the travel expense allowance for state officials and civil servants on short-term overseas missions. Other common expenses for the delegation shall be supported with a maximum of no more than fifty percent of the actual expenses within the approved budget estimate.

2- Establishing trade promotion centers or representative offices of enterprises and the Vietnam Textile and Apparel Association abroad.

2.1- Content of expenditure:

- First-year rent expenses

- Office equipment purchase expenses

- Expenses required by the host country's regulations to establish trade promotion centers or representative offices of enterprises and the Vietnam Textile and Apparel Association.

These expenses are determined based on legal documentation according to current regulations.

2.2- Level of support funds:

- For markets in Germany, the United States, Russia, Japan, Hong Kong, Iraq, and the United Arab Emirates (Dubai), the budget will cover 100%.

- For other markets, the budget will support 50% of the actual expenses of enterprises and associations.

3- Other trade promotion activities.

3.1- Collecting information about the market, customers, and export goods.

- Expenses for purchasing specialized market and product information (registered purchases).

- Costs for purchasing foreign information (with accompanying contracts).

3.2- Hiring economic and trade consultants for exporting goods (with accompanying contracts). 3.3- Activities to seek new export markets.

The travel expenses for staff traveling abroad to seek new markets and business partners as stipulated in Point 3.3 of this section shall be in accordance with the provisions of the Ministry of Finance in Circular No. 45/1999/TT-BTC dated May 4, 1999.

The maximum level of support funds shall not exceed 50% of the actual expenses of enterprises and associations as specified in Points 3.1 and 3.2 of this section. These expenses shall be determined based on legitimate receipts according to current regulations.

II- APPLICATION DOCUMENTS FOR SUPPORTING TRADE PROMOTION EXPENSES:

As stipulated in Point c, Section 7 of Circular No. 106/2001/TT-BTC dated December 31, 2001 of the Ministry of Finance. SUPPORT FOR PROMOTIONAL EXPENSES: III- IMPLEMENTATION OF ISSUANCE AND SETTLEMENT Quarterly, after receiving applications for trade promotion funding from units, the Ministry of Finance will review and issue a provisional payment of 70% of the approved budget. The remaining amount will be issued when the unit submits a final settlement report.

For enterprises that are members of the Vietnam Textile and Apparel Corporation, funding will be issued and settled through the Vietnam Textile and Apparel Corporation.

Quarterly, after receiving the application for promotional funding from the unit, the Ministry of Finance will review and provide a provisional payment of seventy percent of the funding according to the approved budget estimate. The remaining amount will be provided ||| MANAGEMENT AND USE OF DEPOSITS AT THE ENVIRONMENT PROTECTION FUND For enterprises under the Vietnam Textile and Apparel Association (excluding those that are members of the Vietnam Textile and Apparel Corporation), funding will be issued and settled through the Vietnam Textile and Apparel Corporation based on consolidated data from the Association.

For enterprises that are members of the Vietnam Textile and Garment Corporation, the funding will be disbursed and settled through the Vietnam Textile and Garment Corporation.

For other enterprises, issuance and settlement will be conducted on a case-by-case basis. Enterprises receiving state support for trade promotion expenses must ensure efficient and economical use of the funds and bear responsibility for the content of the expenses in accordance with current regulations.

IV- PROVISIONS ON ACCOUNTING

All development market and trade promotion support funds specified in Part I of this letter shall be recorded as a reduction in business costs (management expenses). Except for office equipment expenses at Point 2. must be managed economically, effectively, and the entity must be responsible for the content of the expenditures in accordance with current regulations.

All support for market development and trade promotion as stipulated in Part I of this circular shall be recorded as a reduction in business costs (management expenses). Except

for office equipment expenses under Clause 2, case of office equipment costs under Section 2, Part I, if meeting the criteria for fixed assets, shall be accounted for as an increase in the business capital of the enterprise.

For the Vietnam National Textile and Garment Corporation and the Vietnam Textile and Apparel Association, it shall be accounted for as revenue for trade promotion activities of the corporation or association.

We request the Ministries, sectors, People's Committees of the provinces and centrally governed cities, and the Vietnam National Textile and Garment Corporation to guide enterprises to implement according to the above guidance contents. In the course of implementation, if there are difficulties, we request them to report to the Ministry of Finance for study and resolution.