Circular No. 48/2005/TT-BTC guiding the implementation of Decree No. 196/2004/NĐ-CP dated December 2, 2004 of the Government detailing the implementation of the National Reserve Law.

CIRCULAR

Circular No. 48/2005/TT-BTC dated June 9, 2005 of the Ministry of Finance

"Guidelines for Implementing Decree No. 196/2004/NĐ-CP dated December 2, 2004 of the Government detailing the implementation of the National Reserve Law"

The Ministry of Finance provides detailed guidelines as follows:

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Pursuant to the National Reserve Law No. 17/2004/PL-UBTVQH11 dated April 29, 2004;

Pursuant to the Government Decree No. 196/2004/NĐ-CP dated December 2, 2004 detailing the implementation of the National Reserve Ordinance;

I. SCOPE AND APPLICABLE SUBJECTS:

1. This Circular guides on plans and budgets for national reserve funds; import and export of goods in national reserves; handling losses and damages to goods in national reserves due to deterioration, reduced quality, or loss; establishing, issuing, and implementing economic-technical norms, procedures, and regulations for storing goods in national reserves; signing general contracts, storing goods, warehouse storage, planning the national reserve warehouse system; financial management and budget allocation for national reserves; procedures and steps for exporting national reserves in cash; setting up, managing, and using welfare and incentive funds; protecting state secrets, inspecting, and auditing national reserves.

2. This Circular applies to agencies, organizations, and individuals involved in the construction, organization, management, and utilization of national reserves.

1. Plans and Budgets for National Reserve Funds:

II. SPECIFIC PROVISIONS:

a. National Reserve Plan:

- Comprehensive plan for importing and exporting goods in national reserves (Form 1-KH):

The content of the comprehensive plan for importing and exporting goods in national reserves includes the level of reserves for each item, trends in imports, exports, and end-of-period inventory (including quantity and value).

- Plan for increasing and decreasing goods in national reserves (Form 2-KH):

The content of the plan for increasing goods in national reserves clearly identifies items that need to be supplemented into reserves; the content of the plan for decreasing goods in national reserves identifies items that need to be exported in emergency situations to respond to natural disasters, implement relief, or due to no longer needing continued reserves, or changes in the quantity and list of items in national reserves. The plan for increasing and decreasing goods must clearly show the quantity and value of each item increased or decreased annually, and must be detailed according to specifications and code marks.

- Plan for rotating goods in national reserves (Form 3-KH):

The content of the plan for rotating goods in national reserves is carried out similarly to the plan for increasing and decreasing goods in national reserves. In cases where the detailed list, type, and specifications of imported items differ from those of items nearing the end of their rotation period, the reasons must be clearly stated in the report. During the implementation process, if specific items need to be changed from the plan, the relevant ministries and sectors managing national reserve goods must clearly explain the reasons and report to the Minister of Finance for decision by the Prime Minister.

- Investment Plan for Developing Infrastructure and Technical Facilities:

Based on the approved warehouse system planning and existing infrastructure and technical facilities, ministries and sectors managing national reserve goods develop plans for constructing new warehouses to ensure design requirements and modern preservation technology suitable for each type of goods. Liquidate warehouses not included in the planning, old, outdated, and unable to meet preservation requirements for national reserve goods. The investment plan for developing infrastructure and technical facilities is implemented according to current regulations.

- The National Reserve Administration collaborates with ministries and sectors managing national reserve goods to develop plans and prepare budgets for national reserves, forecasting additional national reserve funding for the following year to report to the Ministry of Planning and Investment and the Ministry of Finance before July 10th each year.

b. Forms for Preparing Budgets for National Reserves:

Based on the content of the national reserve plan stipulated in Clause 1, Point 1, Section II of this Circular, ministries and sectors managing national reserve goods prepare comprehensive forms for budget revenues and expenditures for national reserves according to the guidance provided in Circular No. 59/2003/TT-BTC dated June 23, 2003 of the Ministry of Finance regarding the implementation of Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the State Budget Law.

The system of forms for preparing budgets is based on the State Budget Law.

2. Importing and Exporting Goods in National Reserves:

- Rotating imports and exports of goods in national reserves are carried out according to the provisions of Clause 1, Article 10 of Decree No. 196/2004/NĐ-CP dated December 2, 2004 of the Government (hereinafter referred to as Decree 196/2004/NĐ-CP).

- Cases of exporting goods in national reserves according to decisions of the Prime Minister or under the authority delegated by the Prime Minister, and other cases of exporting goods in national reserves are carried out according to the provisions of Clauses 2, 3, and 5, Article 10 of Decree 196/2004/NĐ-CP; after completing the export, ministries and sectors managing national reserve goods must report to the Ministry of Planning and Investment and the Ministry of Finance to compile and submit to the Prime Minister for immediate replenishment of the national reserve fund within the same year.

- In cases of temporarily exporting goods in national reserves according to point b, Clause 3, Article 10 of Decree 196/2004/NĐ-CP: Upon receiving the export order (urgent telegram or fax), the head of the national reserve unit organizes all necessary procedures and immediately exports the goods. After completing the task, the receiving unit has the responsibility to recover and maintain the technical condition, and re-import the goods back into the national reserve warehouse according to the principle of returning to the original location; national reserve units must organize the storage of imported goods in national reserves according to current regulations. Before re-storing, the national reserve unit coordinates with related units and inspection authorities to establish a Quality Inspection Committee to evaluate the quality and report the results to the head of the ministry or sector managing national reserve goods.

In cases where machinery, equipment, and means temporarily exported are not in good condition and continue to be stored, the national reserve unit will handle them according to the provisions of Point 3, Part II of this Circular.

- Reports on imports, exports, and inventory of goods in national reserves are carried out according to the provisions of point a, Clause 2, Article 19 of Decree 196/2004/NĐ-CP, including Form 1/BC "Detailed Report on Imports and Exports of National Reserve Goods" (quantity only); and Form 2/BC "Report on Imports, Exports, and Inventory of National Reserve Goods" (both quantity and value).

- The report on the import, export, and inventory of national reserve goods shall be implemented in accordance with the provisions at point a, Clause 2, Article 19 of Decree 196/2004/NĐ-CP, including Form 1/BC "Detailed Report on Import and Export of National Reserve Goods" (regarding quantity); and Form 2/BC "Report on Import, Export, and Inventory of National Reserve Goods" (both quantity and value).

3. Handling national reserve goods that have been lost, damaged due to deterioration, reduced quality, or missing:

National reserve goods that have been lost, damaged due to deterioration, or reduced quality must be handled immediately. The head of the national reserve unit shall direct the preparation of records and legal procedures, while simultaneously applying measures to prevent further damage. Subsequently, the cause must be clarified, responsibility determined, handling measures established, and a report submitted to the superior ministry or sector for reporting to the Ministry of Finance on the total amount of loss and the results of remediation.

3.1. Forms of handling for goods with reduced quality:

When national reserve goods are found to have reduced quality, the national reserve unit must handle them as follows:

- Restore, maintain, and repair. In cases where goods meet the quality standards for national reserves after being processed, they should be re-entered into storage. If they do not meet the quality standards, a report and proposal must be made to the Ministry of Finance and the Ministry of Planning and Investment for consideration and submission to the Prime Minister for permission to allocate for use or sell to purchase new goods.

- In special cases, if national reserve goods exceed their usage period and must be destroyed, such as medical drugs, veterinary drugs, plant protection products, crop seeds, etc., the relevant ministry or sector managing national reserve goods shall propose to the Ministry of Finance and the Ministry of Planning and Investment for submission to the Prime Minister. After receiving the Prime Minister's decision to destroy, the relevant ministry or sector managing national reserve goods must carry out the destruction according to current regulations and environmental management authorities' regulations (if the goods are hazardous and affect environmental hygiene) and process the reduction of capital with the Ministry of Finance.

3.2. Handling national reserve goods that have been lost, damaged, or missing:

a. In cases where the loss of national reserve goods is within the allowable limit (equal to or below the specified loss rate) during storage, the relevant ministry or sector managing national reserve goods may reduce the national reserve capital and report the final settlement to the Ministry of Finance.

b. In cases where the loss of national reserve goods exceeds the allowable limit, is damaged, or is missing, the head of the national reserve unit shall establish a Property Management Committee to handle the excess loss, damage, or missing national reserve goods (hereinafter referred to as the Unit Committee). The composition of the Unit Committee includes:

- A representative from the leadership of the national reserve unit serving as the Chairman of the Committee.

- The financial accounting officer serving as a permanent member.

- The planning and warehouse management officer serving as a member.

- The organizational personnel officer serving as a member.

- The technical and preservation technology officer serving as a member.

- Other related department officers serving as members (if necessary).

- A representative from the local police agency serving as a member (in cases where national reserve goods are missing).

The Unit Committee has the following responsibilities: Based on inspection records determining the quality of national reserve goods (Model No. 2) and records determining the loss of national reserve goods (Model No. 3), examine and analyze to clarify the causes of damage and loss; propose handling measures to the head of the national reserve unit.

The head of the national reserve unit shall consider the recommendations of the Unit Committee and request the head of the relevant ministry or sector to decide on handling within their authority.

c. The head of the ministry or sector managing national reserve goods shall establish a Property Management Committee to review and handle national reserve goods that have exceeded the allowable loss, suffered damage, or reduced quality, which are reported by the head of the national reserve management unit (referred to as the Ministry Committee). The Ministry Committee consists of:

- A representative from the leadership of the ministry or sector managing national reserve goods serving as the Chairman of the Committee.

- The financial accounting officer serving as a permanent member.

- The planning officer serving as a member.

- The technical and preservation technology officer serving as a member.

- The inspection officer serving as a member.

- The organizational personnel officer serving as a member.

- Other related unit officers serving as members (if necessary).

The Ministry Committee has the following responsibilities:

- Based on the handling recommendation of the head of the national reserve unit and the accompanying documentation from the Unit Committee, examine and analyze to clarify the causes of damage and loss.

- Propose handling measures to the head of the ministry or sector managing national reserve goods:

+ If the cause is determined to be subjective, require individuals to fully compensate for the loss, with compensation based on the market price of similar items at that time.

+ If the cause is objective, after clarifying the cause (with confirmation from specialized agencies and local authorities), the Ministry Committee shall recommend to the head of the ministry or sector managing national reserve goods to make a decision according to Clause e Point 3.2 Section II of this Circular.

d. The Property Management Committee for national reserve goods that have exceeded the allowable loss, suffered damage, or reduced quality managed by the National Reserve Agency has the same composition and functions as the Property Management Committee of the ministry or sector.

e. Authority to handle national reserve goods that have exceeded the allowable loss, suffered damage, or reduced quality, or are missing:

For national reserve goods that have exceeded the allowable loss, suffered damage, or reduced quality due to objective reasons, the head of the ministry or sector managing national reserve goods may decide on handling for goods valued under 300 million VND and bear responsibility for their decision, while reporting to the Minister of Finance; for losses valued between 300 million VND and less than 1 billion VND, the head of the ministry or sector managing national reserve goods must report to the Minister of Finance for consideration and decision; for losses valued at 1 billion VND or more, the head of the ministry or sector managing national reserve goods must report to the Minister of Finance for consolidation and submission to the Prime Minister for consideration and decision.

4. Establishing, issuing, and implementing economic-technical norms, procedures, and regulations for preserving national reserve goods:

4.1. Establishing, issuing, and managing procedures and regulations for preserving national reserve goods:

a. Based on the quality standards for national reserve goods, comparing each item category, the relevant ministries and sectors managing national reserve goods shall direct the establishment, issuance, and management of procedures and regulations as follows:

- For types of national reserve goods that have storage procedures and regulations, relevant ministries and sectors managing national reserve goods shall organize inspections of the implementation of these procedures and regulations and propose the Ministry of Finance to consider including them in the common list of storage procedures and regulations for the sector according to the mechanism of national reserve management.

- For types of national reserve goods that have not yet established storage procedures and regulations, relevant ministries and sectors managing national reserve goods must develop plans to establish such procedures and regulations, clearly defining timelines and related requirements to ensure that the procedures and regulations are suitable for the specific characteristics of national reserve goods in accordance with current regulations.

b. The issuance of storage procedures and regulations shall be carried out in accordance with the steps outlined in TCVN 1-1-2003, reflecting the content at TCVN 1-2-2003, which includes provisions on scope, applicability, basic requirements for warehouses, quality standards for incoming and outgoing goods, storage periods, operational regulations for inspection, acceptance, transportation, stacking planning, and storage, handling of incidents during storage, and record-keeping and reporting systems. Each procedure and regulation must clearly specify safety requirements, labor protection measures, and enforcement clauses.

4.2. Authority to issue norms, Economic and Technical Norms Council for the storage of national reserve goods:

a. The authority to issue norms is implemented in accordance with Clause 2, Article 15 of Decree 196/2004/NĐ-CP.

b. The Economic and Technical Norms Council for the storage of national reserve goods:

- Relevant ministries and sectors managing national reserve goods are responsible for establishing the Economic and Technical Norms Council for the storage of national reserve goods, consisting of: representatives from the leadership of the ministry or sector managing national reserve goods as the Chairman of the Council; permanent members being representatives from the agencies or units entrusted with the task of managing national reserve goods, and other members being representatives from agencies or units related to the storage of national reserve goods.

The Economic and Technical Norms Council of the ministry or sector has the responsibility to direct the work of establishing norms, organize the review and approval of norms submitted to the head of the ministry or sector managing national reserve goods, and propose the Ministry of Finance to promulgate them; guide the implementation of economic and technical norms issued by the Ministry of Finance; conduct interim and final reviews of norm management, and recommend amendments and new norm development.

- The Ministry of Finance establishes the Economic and Technical Norms Council to review and promulgate economic and technical norms for the storage of national reserve goods. The composition includes: representatives from the leadership of the Ministry of Finance as the Chairman, representatives from the Ministry of Science and Technology, representatives from the leadership of the National Reserve Agency as permanent members, and representatives from units under the Ministry of Finance related to the task as members.

In each specific case, the Council must include representatives from ministries and sectors related to the establishment of economic and technical norms for the storage of national reserve goods as members.

The Economic and Technical Norms Council for the storage of national reserve goods of the Ministry of Finance has the responsibility to organize the review of economic and technical norms for the storage of national reserve goods; direct the establishment and implementation of economic and technical norms throughout the national reserve system; inspect the management of economic and technical norms; and submit economic and technical norms to the Minister of Finance for promulgation in accordance with the storage of national reserve goods.

c. Responsibility for implementing economic and technical norms for the storage of national reserve goods:

Relevant ministries and sectors managing national reserve goods are responsible for organizing and directing subordinate national reserve units to implement economic and technical norms for the storage of national reserve goods.

5. Signing principle contracts, storing goods, warehouses, and planning the national reserve warehouse system:

5.1. Signing principle contracts for storing national reserve goods with management agencies of national reserve goods under relevant ministries and sectors managing national reserve goods (excluding the Ministry of Defense, the Ministry of Public Security, and the Government Office of Administration):

- The organization of signing principle contracts for storing national reserve goods between the National Reserve Agency and management agencies of national reserve goods (Model No. 1) must be based on the plan for receiving and dispatching national reserve goods assigned to each national reserve unit under the relevant ministry or sector managing national reserve goods, economic and technical norms for storage, and the storage budget allocated by the competent authority.

- Periodically or unexpectedly, the National Reserve Agency will coordinate with the relevant ministry or sector managing national reserve goods to inspect the implementation situation at national reserve units to ensure that national reserve goods are stored according to the prescribed procedures and regulations, and are safe in quantity and quality.

If a national reserve unit does not comply with the storage procedures and regulations for national reserve goods as stipulated, the National Reserve Agency will require the unit to comply with the regulations and report to the main supervising ministry and the Ministry of Finance to take timely corrective actions.

- The Director of the National Reserve Agency will specify the content, procedures, and formalities for signing principle contracts for storing national reserve goods; organize direction, inspection, and supervision of the implementation of signed contracts; and compile results to report to the Minister of Finance.

5.2. Storing goods, warehouses, and planning the national reserve warehouse system:

- National reserve goods must be scientifically arranged, placed in the correct warehouse and location as specified, separated into old and new goods, and accompanied by complete documentation detailing quantity, value, and changes during receipt, dispatch, and storage (such as warehouse cards, testing certificates, storage monitoring logs, etc.).

- During storage, national reserve units must strictly follow the storage procedures and regulations for national reserve goods issued by the competent authority. If there are issues requiring changes, they should propose to the competent authority for appropriate modifications and supplements.

- For national reserve goods marked with usage periods, such as medicines, veterinary drugs, plant protection products, and crop seeds, the relevant ministry or sector managing national reserve goods must specify the period for exchanging goods before these items expire.

- The storage facilities for reserve goods must meet requirements suitable to the physical and chemical properties of each type of goods; ensure the quantity and quality of reserve goods are safely stored. Inside the storage facility, there must be sufficient equipment and facilities that are appropriate and necessary to serve the work of preservation, prevention against natural disasters, fire, security, and any other forms of infringement.

- The national reserve storage system must be planned and have strict, safe measures to maintain confidentiality and meet basic requirements as follows:

+ Be consistent with the requirements of economic and social development, ensuring national defense and security at different periods; guarantee readiness for rescue and mitigation of disaster consequences.

+ Be consistent with the requirements of gradually modernizing the national reserve sector, the storage system must gradually be invested and equipped with advanced technology and increasingly advanced management methods to ensure the effective implementation of national reserve objectives, functions, and tasks.

+ On the basis of the existing storage system, adjust the storage system to be consistent with assigned tasks and overall planning. Gradually eliminate unsuitable storage points. Select new storage points to be built in accordance with new development requirements.

- Heads of Ministries and sectors managing national reserve goods direct units managing national reserves to organize regular inspections on the protection and preservation of national reserve goods; identify and prevent violations of preservation procedures and regulations, and provisions regarding the safety of quantity and quality of goods and storage facilities for reserve goods.

6. Financial management and budget allocation for national reserves:

The budget allocated for national reserves must be strictly managed according to the budget estimate, for the intended purpose, for the designated recipients, and with efficiency. Agencies and units using the budget for national reserves must manage, monitor, account for expenditures accurately, prepare final reports according to the regulations of the national reserve accounting system, and report to competent state authorities.

6.1. Management of capital for purchasing and selling national reserve goods:

Annual capital for purchasing national reserve goods includes:

- Capital allocated by the state budget to increase national reserves in the annual plan and additional budget supplements decided by the Prime Minister.

- Capital for selling national reserve goods as decided by the Prime Minister.

a. If the additional capital for purchasing national reserve goods allocated within the annual plan has not been fully utilized, relevant Ministries and sectors managing national reserve goods must report in detail to the Ministry of Finance about the remaining capital, clearly stating the reasons, so that the Ministry of Finance can consider and decide whether to transfer it to the next year for continued use in purchasing goods or to supplement the national reserve fund with money.

- The National Reserve Agency checks the documentation and procedures submitted by relevant Ministries and sectors managing national reserve goods and national reserve units under the National Reserve Agency to purchase additional national reserve goods through payment orders based on Decision No. 42/2004/QĐ-BTC dated April 22, 2004, issued by the Minister of Finance on the issuance of regulations for central government budget payments through payment orders, based on the following grounds:

+ According to the approved budget estimate;

+ Decisions assigning purchase plans by heads of Ministries and sectors managing national reserve goods;

+ Requests for capital allocation from heads of Ministries and sectors managing national reserve goods;

+ Approval documents for bid prices; settlement prices for cases of direct assignment, selection, or competitive bidding, or maximum purchase prices for national reserve goods by authorized agencies.

- When all these conditions are met, the Ministry of Finance (National Reserve Agency) will process temporary advance payments of 70% of the annual plan capital for increasing national reserve purchases approved by the Prime Minister for Ministries and sectors managing national reserve goods. The remaining capital will be provided based on the progress report of the national reserve agency or unit.

- Upon completion of the capital plan for increasing national reserve purchases, the national reserve agency or unit must settle accounts with the Ministry of Finance (National Reserve Agency).

Payment of capital for purchasing national reserve goods can only be made when the following conditions are met:

+ Purchase contracts for national reserve goods;

+ National reserve goods have been warehoused and meet quality standards, accompanied by full invoices and supporting documents;

+ Settlement records or inventory lists signed by the head of the unit for direct purchases without bidding;

+ Approval for payment by the head of the national reserve unit.

b. Capital for selling national reserve goods for rotation purposes must be deposited into an account opened at the State Treasury. In cases where urgent purchases of seasonal national reserve goods are required before selling them, the national reserve agency or unit must submit a request to the Minister of Finance for temporary advance from the national reserve fund to purchase goods in time; if insufficient, further advances may be taken from the state budget reserve. After completing the sale and rotation of goods, relevant Ministries and sectors managing national reserve goods must promptly repay the temporarily advanced funds within the year.

6.2. Budget for managing national reserves:

a. Expenditures for managing national reserves shall be implemented in accordance with Clause 4, Article 16 of Decree No. 196/2004/NĐ-CP.

b. Costs for import, export, relief, and aid of special nature national reserve goods shall be implemented according to Decision No. 42/2004/QĐ-BTC dated April 22, 2004, issued by the Minister of Finance.

- Based on plans, budgets, and requests from national reserve agencies and units, the National Reserve Agency will review and propose the Ministry of Finance to provide temporary advances of 70% of the budget estimates for each batch of imports and exports of national reserve goods and each relief and aid mission for the National Reserve Agency and national reserve units. The remainder will be provided based on the progress of implementation, according to the approved import costs, export costs, relief costs, and aid costs by authorized agencies and national reserve management agencies and units.

- Payments for import costs, export costs, relief costs, and aid costs must be supported by valid documentation.

c. Preparation and allocation of budget estimates for preservation costs.

Annually, based on the plan for managing national reserve goods, standards, and budgetary expenses for storage; ministries and sectors managing national reserve goods prepare the budget for storage costs of national reserve goods to send to the National Reserve Agency for consolidation of annual storage costs of national reserve goods; at the same time, consolidate the storage costs of national reserve goods into the annual revenue and expenditure budget of ministries and sectors managing national reserve goods to send to the Ministry of Finance and the Ministry of Planning and Investment for consolidation and submission to the competent authority for decision in accordance with the State Budget Law and guiding documents.

Based on the approved budget, ministries and sectors managing national reserve goods allocate storage funds to subordinate units to implement storage activities, and submit to the Ministry of Finance for review according to current regulations.

In cases where there are unexpected occurrences during the year regarding the import, export, and storage of national reserve goods, the national reserve unit prepares a budget for storage costs to send to the ministry or sector managing national reserve goods for consolidation and submission to the Ministry of Finance for consideration and resolution according to current regulations.

d. Allocation of storage funds:

- On the basis of the allocated budget, national reserve units implement the withdrawal of storage fund limits at the State Treasury where the unit conducts transactions according to regulations.

- Implement the allocation of storage funds through payment orders according to Decision No. 42/2004/QD-BTC dated April 22, 2004, of the Minister of Finance for the National Reserve Agency and enterprises storing national reserve goods. Quarterly, the National Reserve Agency implements the task of allocating storage funds for enterprises storing national reserve goods and the regular expenses of national reserve units. For non-routine storage expenses, based on plans and allocated budgets, the national reserve agency or unit issues a request for storage funds according to actual needs and sends it to the National Reserve Agency for review and recommendation to the Ministry of Finance for consideration and allocation according to progress.

e. Implement a mechanism for allocating import, export, and storage costs for national reserve goods for national reserve units, with costs allocated based on the actual quantity of goods imported, exported, and stored, and cost standards established by the competent authority. Within the allocated costs, national reserve units may proactively use them to serve the import, export, and storage of national reserve goods as prescribed. If a unit achieves cost savings, it may use the savings to establish welfare and reward funds according to point 8 of this Circular.

6.3. Handling state assets within the national reserve system:

- The management, handling, recovery, transfer, and liquidation of state assets serving the management of national reserve goods include: state assets such as houses, land, and construction works attached to land within the national reserve warehouse system; transportation means serving work and transportation of national reserve goods; machinery, equipment, and other assets for working and storing national reserve goods shall be implemented according to current regulations on state asset management at state agencies and public institutions.

- For cases of asset liquidation, the proceeds from the liquidation of assets, warehouses, and structures shall be implemented according to point b, clause 3, Article 16 of Decree No. 196/2004/NĐ-CP.

6.4. Reporting and settlement system:

Ministries and sectors managing national reserve goods are responsible for preparing settlements and consolidating settlement reports according to the prescribed system to send to the Ministry of Finance. Annually, ministries and sectors managing national reserve goods must organize inspections and approvals of settlement reports from national reserve units, bear responsibility for approved settlements, consolidate and send to the Ministry of Finance. The National Reserve Agency performs the review and consolidation of settlements on national reserves to report to the Ministry of Finance for submission to the Government.

National reserve agencies and units must implement the accounting system for national reserves according to current regulations.

7. Procedures and sequence for releasing national reserve funds to purchase national reserve goods:

The procedures and sequence for releasing national reserve funds to purchase national reserve goods are carried out as follows:

- Based on the provisions of clause 3, Article 18, and clause 3, Article 10 of Decree No. 196/2004/NĐ-CP, the Minister of Finance decides to release national reserve funds to purchase domestic goods or imports to meet timely requirements for combat, anti-sabotage, anti-riot; prevention, mitigation, and aftermath of natural disasters, fires; prevention and control of diseases with potential outbreaks; simultaneously reporting to the Prime Minister to supplement national reserve funds to ensure the ratio between national reserve goods and national reserve funds as prescribed.

- The National Reserve Agency, the Department of State Budget, and the State Treasury implement the release of national reserve funds according to the Minister of Finance's decision. The procedures and sequence for releasing national reserve funds to purchase additional national reserve goods are stipulated like the procedures for capital allocation to increase national reserves.

8. Establishment, management, and use of Welfare Fund and Reward Fund:

8.1. Establishment of Welfare Fund and Reward Fund:

Annually, based on the results of purchasing, selling, importing, exporting, and storing national reserve goods, if the purchase price of national reserve goods is lower than the maximum price, the sale price of national reserve goods is higher than the minimum price decided by the Ministry of Finance, reduction in loss rate compared to standards, saving in storage costs, import, and export costs of national reserve goods, national reserve units can benefit from a portion of these profits to establish a welfare fund and a reward fund. Specifically as follows:

a. Regarding the purchase and sale of national reserve goods: purchasing below the maximum price and selling above the minimum price decided by the Ministry of Finance; national reserve units can benefit 25% of the profit value to establish the Welfare Fund and Reward Fund.

The method of determining the profit value through the purchase and sale of national reserve goods is stipulated as follows:

+ Profit value through the purchase of national reserve goods.

L = Q X (G1 - G2)

+ Profit value through the sale of national reserve goods.

L = Q X (G2 - G1)

Where:

L: Profit value through the purchase and sale of national reserve goods.

Q: Quantity of national reserve goods actually purchased and sold.

G1: The maximum price or minimum price as prescribed by the Ministry of Finance.

G2: The actual purchase price or actual sale price of national reserve goods.

b. For goods lost during storage below the specified limit, the national reserve unit shall be entitled to 50% of the value of the goods lost below the specified limit (based on the warehouse entry price) to establish the Welfare Fund and the Reward Fund.

c. For savings from storage costs, import costs, and export costs of national reserve goods, the national reserve unit shall be entitled to 100% of the saved amount to establish the Welfare Fund and the Reward Fund.

d. The maximum level of rewards for the Welfare Fund and the Reward Fund is three months' salary of the unit. Savings fees are temporarily deducted in June each year, and after the annual settlement is approved, they will be offset. If the temporary deduction is lower than the amount to be deducted, it will continue to be deducted; if the temporary deduction is higher than the amount to be deducted, it must be refunded.

e. Implementation procedure:

- In cases where there is profit generated through buying and selling national reserve goods, reducing loss rates below the specified limits, the national reserve unit shall prepare a report requesting rewards and submit it to the management agency of national reserve goods. The management agency of national reserve goods shall inspect and consider issuing a document to request the Ministry of Finance to decide on rewarding the national reserve unit based on the profit results.

- Based on the proposal of the management agency of national reserve goods, the Ministry of Finance shall examine and issue a decision to reward the unit that generates profit through buying and selling national reserve goods, which is due to the reduction in losses below the specified limits.

f. The reward funds from purchasing goods at prices lower than the maximum price, selling goods at prices higher than the minimum price, and reward funds from reducing losses shall be drawn from the capital for annual purchases and sales of national reserve goods allocated to the management agency of national reserve goods.

8.2. Management and use of the Welfare Fund and the Reward Fund:

- The Welfare Fund and the Reward Fund of the national reserve unit shall be strictly managed, used for their intended purposes, and implemented transparently within the unit.

- Based on the general regulations of the State regarding competition and rewards, the head of the national reserve unit shall be responsible for establishing the Reward Regulations according to the guidelines of the management agency of national reserve goods; the National Reserve Agency shall guide subordinate units in establishing the Reward Regulations. The Reward Regulations must be publicly announced within the unit for officials and staff to know and monitor.

- The head of the national reserve unit, based on the Reward Regulations, shall establish a Reward Committee consisting of representatives from the leadership of the unit, subordinate units, with the participation of the Trade Union to decide on rewards for collectives and individuals with achievements.

9. Protection of State Secrets, Inspection, and Audit of National Reserves:

a. Protection of State Secrets in managing national reserves.

Agencies managing national reserves and national reserve units must strictly implement the Ordinance on Protecting State Secrets dated December 28, 2000; Decree No. 33/2002/NĐ-CP dated March 28, 2002 of the Government detailing the implementation of the Ordinance on Protecting State Secrets; Circular No. 12/2002/TT-BCA (A11) dated September 13, 2002 of the Ministry of Public Security guiding the implementation of Decree No. 33/2002/NĐ-CP dated March 28, 2002 of the Government detailing the implementation of the Ordinance on Protecting State Secrets; Decision No. 196/2003/QĐ-BTC dated December 1, 2003 of the Minister of Finance promulgating the Regulation on Protecting State Secrets of the Finance Sector and other related legal documents.

b. Inspection and Audit of National Reserves:

The inspection and audit of national reserves shall be carried out in accordance with Article 21 of Decree No. 196/2004/NĐ-CP dated December 2, 2004 of the Government detailing the implementation of the Ordinance on National Reserves.

III. IMPLEMENTATION PROVISIONS

This Circular shall take effect fifteen days after its publication in the Official Gazette and shall replace Circular No. 170/CSDT dated April 4, 1997 of the National Reserve Agency guiding the implementation of the Management Regulation of National Reserves issued together with Decree No. 10/CP dated February 24, 1996 of the Government, and Circular No. 29/1998/TT-BTC dated March 11, 1998 of the Ministry of Finance guiding the management system of national reserves issued together with Decree No. 10/CP dated February 24, 1996 of the Government. During the implementation process, if there are any difficulties, please reflect them to the Ministry of Finance for research and resolution.