Circular No. 52 TC/TCĐN guiding the submission of foreign currency according to obligations to the centralized foreign exchange fund of the State pursuant to Decision No. 218/CT dated August 18, 1989 of the Chairman of the Council of Ministers.

CIRCULAR

GUIDELINES FOR THE DEPOSIT OF FOREIGN CURRENCY IN ACCORDANCE WITH OBLIGATIONS TO THE NATIONAL CONCENTRATED FOREIGN EXCHANGE FUND PURSUANT TO DECISION 218/CT OF AUGUST 18, 1989 OF THE CHAIRMAN OF THE STATE COUNCIL OF MINISTERS.

The Chairman of the State Council of Ministers issued Decision No. 218/CT on August 18, 1989 regarding the establishment of the national concentrated foreign exchange fund. The Ministry of Finance provides guidance on the implementation of Points 4, 5, and 6 of Article II of the aforementioned Decision 218/CT as follows:

I. GENERAL PRINCIPLES:

1/ Individuals dispatched for expert cooperation, labor cooperation; individuals dispatched to work in international organizations, foreign companies, and joint ventures with foreign countries who are paid in foreign currency; individuals dispatched for short-term missions, study, etc., abroad where expenses are covered by foreign entities in foreign currency must deposit into the national concentrated foreign exchange fund the difference between the amount of foreign currency provided by foreign entities and the amount of foreign currency that individuals are entitled to according to the financial regulations stipulated by the Ministry of Finance (currently Circulars No. 41 TC/NTNT dated October 10, 1984 on the treatment regime for experts working in non-socialist countries; Joint Circular No. 16/TTLB dated May 23, 1989 on income distribution for individuals dispatched for labor cooperation in Iraq; Circular No. 10-TC/NTNT dated March 24, 1989 and No. 02-TC/NTNT dated January 28, 1989 of the Ministry of Finance on the income regulation regime for individuals dispatched for study and work abroad where expenses are covered by foreign entities, etc.).

2/ Ministries, sectors, localities responsible for the subjects mentioned in Point 1 above have the responsibility to guide, organize, and urge the collection and deposit of the foreign currency difference that must be deposited into the national concentrated foreign exchange fund. In cases where there are no circulars guiding from the Ministry of Finance, the ministries, sectors, and localities responsible for the subjects above shall work with the Ministry of Finance to determine the amount of foreign currency entitlement and the amount of difference to be deposited.

3/ Ministries, sectors, and localities having surplus foreign currency balances on their accounts under the revenue sources mentioned in Point 1 above (except for the Ministry of Health and the Ministry of Higher Education and Vocational Training which have separate regulations from the Chairman of the State Council of Ministers) must process the transfer of these balances into the national concentrated foreign exchange fund (account number 120) at the Vietnam Foreign Trade Bank. In cases where units holding the accounts have planned to spend the foreign currency from these balances, they shall work with the Ministry of Finance to examine and resolve each case specifically.

II. PROCEDURES FOR COLLECTING AND DEPOSITING INTO THE NATIONAL CONCENTRATED FOREIGN EXCHANGE FUND. OF THE STATE.

1/ In cases where the collected amount is local currency not convertible, the representative office of our country in the host country (where the revenue source arises) has the responsibility to deposit it into the temporary holding fund of the state budget according to Circular No. 50 TC/TCĐN dated /11/1989 of the Ministry of Finance guiding the management regime of the temporary holding fund of the state budget at embassies and diplomatic missions of our country abroad.

2/ In cases where the collected amount is convertible foreign currency.

a/ For the foreign currency collected from individuals dispatched for expert cooperation and labor cooperation, the departments managing experts and laborers in the host country or the main ministry (in cases where units are organized and managed by the main ministry itself) have the responsibility to organize and urge the collection and transfer of the collected amount into the national concentrated foreign exchange fund. In cases where the collected amount is used to repay debts owed by our government to the government of the country hiring our experts and laborers, the main ministry of the subjects obligated to pay (such as the Ministry of Transport, Construction, Water Resources, Foreign Economic Relations, etc.) has the responsibility to organize accounting for the collected amount through debt repayment to establish the basis for settlement of this amount with the Ministry of Finance. Quarterly, the departments managing experts and laborers in diplomatic missions have the responsibility to report the actual foreign currency collected (the difference between what the other party must pay and the portion the individual receives) to the Ministry of Finance. In cases where the actual collected amount is used for debt repayment, the management department in the respective countries has the responsibility to report the actual amount received according to the contract for debt repayment, the amount transferred by the counterpart units into the bank in the host country to offset the debt, and the amount yet to be transferred into the bank for debt repayment.

b/ For individuals attending conferences, surveys, internships, etc., abroad funded by international organizations or foreign entities; individuals dispatched to work in international organizations who are paid in foreign currency, they must deposit the foreign currency obligation according to one of the following two methods:

+ In cases where foreign currency is brought back to the country for deposit domestically, the competent authority of the subject obligated to pay bases on the stipulated adjustment system and ratio to determine the difference amount to be deposited into the account of the national concentrated foreign exchange fund at the Vietnam Foreign Trade Bank (account number 120-001) and reports the settlement to the Ministry of Finance, accompanied by a certificate confirming the deposit of foreign currency.

+ In cases where foreign currency is deposited abroad, the representative office of our country there has the responsibility to calculate and collect accurately according to the stipulated regulations and issue a certificate confirming the payment along with original documents for the subject to report to the competent authority for settlement and submission to the Ministry of Finance.

This circular takes effect for the revenues mentioned in the circular arising from January 1, 1989, all previous provisions contrary to this circular are null and void./.