Joint Circular No. 52/VT-KH-TC-TK guiding the implementation of the final settlement system for materials under new circumstances

 

JOINT CIRCULAR

Guidelines for Implementing the System of Material Settlements in the New Situation

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To strictly implement Decision No. 195-HĐBT dated December 14, 1982 of the Council of Ministers on "Implementing the System of Material Settlements in the National Economy," in accordance with the current situation and requirements of economic management in the new phase as stipulated in Decree No. 190-HĐBT dated June 27, 1985 on "Improving Material Management Work," Decision No. 76-HĐBT dated June 26, 1986 on "Ensuring the Autonomy of Production and Business Operations of Economic Units at the Grassroots Level," and Directive No. 85-HĐBT dated July 9, 1986 on "Some Urgent Issues in Material Management Work," the Joint Ministry of Materials - State Planning Committee - Ministry of Finance - General Statistics Office hereby provides specific guidelines to implement the system of material settlements in the new situation as follows:

I. REGULATIONS ON IMPLEMENTING THE SYSTEM OF MATERIAL SETTLEMENTS

(establishment, review, and processing of material settlements)

Material settlement is an important measure aimed at addressing the laxity in management during the stages of import, export, supply, storage, and utilization of materials, thereby enhancing the sense of responsibility in using materials efficiently and economically, with the main requirement being:

- Supplying materials must yield corresponding products for the state.

- Reducing losses and wastage of materials in all operational stages: import, export, transportation...

- Reducing the consumption rate of materials per unit product or work.

- Balancing and mobilizing all sources of materials to serve production and business operations.

- Promptly preventing violations of material management regulations and policies.

To achieve these objectives and requirements, the implementation of material settlements is specifically regulated as follows:

1. All production and business units under the state-owned sector and other sectors managed by central and local authorities, which are supplied materials by the state, must settle accounts with their immediate superior management units.

- All Ministries, State Committees, and other agencies under the Council of Ministers (referred to as the Ministry level), Provincial People's Committees directly under the Central Government (referred to as the provincial level), which receive national plan targets, must settle accounts with the state for materials uniformly managed and distributed by the state.

- The planning departments of Ministries, General Departments at the Ministry level, and Local Planning Committees at the provincial level shall examine, process, and handle material settlements for subordinate levels and prepare reports to be submitted to higher levels.

- The material departments (or planning departments where there is no separate material department) at the level of Enterprise Associations, General Companies, Departments, Bureaus, Districts, Counties, Towns, and equivalent levels shall examine, process, and handle material settlements for subordinate levels.

- The National Materials Management Agency, the Ministry of Mines and Coal, the Ministry of Construction, the Ministry of Forestry, the Ministry of Agriculture, the Ministry of Power, the Rubber General Department, etc. (referred to as the Supply Ministries) assist the state in directly examining and processing material settlements for materials supplied directly by their respective Ministries or General Departments.

- The General Statistics Office must comprehensively account for material settlements throughout the national economy and prepare analytical reports on the management and utilization of materials nationwide to be submitted to the Council of Ministers and sent to relevant Party and State agencies.

2. Material settlements must reflect the following basic contents:

- The situation of imports, exports, and inventory of materials, including detailed analysis of sources of imports (from supply agencies, self-imports, joint ventures, loans, etc.), and cases of exports (for production and business operations, balancing, joint ventures, exchanges, sales, etc.).

- The situation of material management and utilization, whether economical or exceeding allowable consumption rates.

- The results of production and business operations (total value of goods produced, quantity of key products with specified specifications and quality, consumption according to plans and contracts for each physical production sector...).

- The distribution of products, analyzed by distribution objects such as: submission to supply agencies; internal trade; food and foodstuffs; foreign trade for export; internal affairs-national defense; direct distribution to agencies and enterprises under central and local management; retail sales according to orders or self-resolution by enterprises; exchange of goods, sale of products...

- Payment for material expenses based on actual products submitted to the state (materials supplied, materials corresponding to submitted products, additional materials provided or materials to be returned or deducted from next year's expenses).

3. The forms used for material settlements are the reporting and statistical forms for material settlements for production and business units issued by the General Statistics Office:

+ Basic economic units use five forms:

01QTVT-CS Import, Export, and Inventory of Materials of Basic Units

02QTVT-CS Results of Production and Business Operations of Basic Units

03QTVT-CS Product Distribution of Basic Units

04QTVT-CS Material Consumption for Products and Tasks of Basic Units

05QTVT-CS Material Settlement Adjustment of Basic Units

+ Higher-level management units (comprehensive economic units) use six forms:

01QTVT-TH Import, Export, and Inventory of Materials of Higher-Level Management Units

02QTVT-TH Material Utilization by Economic Sector of Higher-Level Management Units

03QTVT-TH Production and Business Operation Results of Higher-Level Management Units

04QTVT-TH Product Distribution of Higher-Level Management Units

05QTVT-TH Material Consumption for Products and Tasks of Higher-Level Management Units

06QTVT-TH Material Settlement Adjustment of Higher-Level Management Units

(Specific forms can be found in the attached annex to this circular)

- The list of materials subject to settlement at the Ministry and provincial levels is the list of materials uniformly managed and distributed by the state (as stipulated by the Council of Ministers, State Planning Committee, and Supply Ministries according to Decree No. 143-CP dated May 13, 1980 on "Issuing the Legal Expense System of the State Plan") and at the grassroots level, it is the list of materials that the unit uses and has signed contracts with the direct supply agency.

- The list of materials subject to settlement at the ministry level and provincial level is the list of materials uniformly managed and distributed by the state (by the Council of Ministers, the Planning Committee, the Supply and Distribution Department) as prescribed in Decree No. 143-CP dated May 13, 1980 on "issuing the system of state plan expenditure regulations" and for economic units, it is the list of materials that the using unit contracts with the direct supply agency.

- The list of products and works for settlement at the ministry level and provincial level is the list of key products and major construction projects of the national economy as prescribed in Decree No. 106-HĐBT dated April 5, 1984 on "issuing the list of key products, priority production facilities, and major construction projects of the national economy," and subsequent supplementary and amended decrees; whereas, for basic economic units, it is the main product and work list assigned by the superior management agency in the production and business plan.

- In addition to the report with formal tables, there must also be a verbal report accompanied by annexed tables (if necessary) to explain in detail each case of self-discovered imports, material exports outside the unit, the quantity of materials on unfinished products, the number of unfinished products, inventory of finished products, and distribution targets, highlighting the main points about the effectiveness of material usage, difficulties, and the impact of planning, supply, and capital allocation factors on production and business activities during the reporting period.

- The person approving the material settlement report (the head) shall bear full responsibility before the State for the accuracy and truthfulness of the data.

- Period and place to submit the material settlement report:

Note:

4. To ensure the quality of material settlement (accuracy), requirements include:

- All levels (basic economic units, comprehensive economic units) must regularly consolidate economic accounting work: operational accounting, statistical accounting, and bookkeeping accounting.

- The statistical report on material settlement of basic economic units must necessarily be based on original records, ledgers of statistical and accounting records on material usage and production and business activities, documents assigning production tasks and plans, economic and technical norms approved by superiors, and economic contracts.

- The final material settlement report of comprehensive economic units (superior management agencies) must be based on the consolidation of final material settlement reports of subordinate units; if consolidated figures differ from those in the statistical report on material settlement of their own level, they must study and adjust the figures (aligning between statistical reports and settlements).

- Superior management agencies at all levels are responsible for guiding, urging, and inspecting material settlement work of subordinate units.

- Supply agencies at all levels have the duty to inspect material usage of production and business units (performing state management functions over materials), and before inspection, they must notify the inspected unit of the content and time of inspection, and after inspection, they must prepare an inspection record sent to the ministry or provincial level managing authority, and simultaneously send a report to superiors on the inspection results.

- Regularly once every quarter, between direct supply agencies and units receiving material allocations, there must be a verification of figures based on plans or signed contracts; subsequently, the supply agency prepares a document confirming the quantity and quality of materials supplied.

5. Supply Ministries, after receiving the final material settlement report from ministries and provinces, compare it with their recorded statistics and supply figures for each commodity category, prepare a document settling material quotas according to actual products handed over to the State.

6. To facilitate the Ministry of Materials in performing its task of reviewing material settlement for the entire national economy as stipulated in Decree No. 190-HĐBT (point 5, Article 10), supply ministries must report directly on the review and processing of material settlement for parts directly supplied by ministries and general administrations to the Ministry of Materials for consolidation and reporting to the Joint Ministries and the State.

Contents to be reported include:

- Settlement of imported materials and equipment under long-term agreements (five years), protocols, contracts, and contract appendices (annually); settlement of domestically produced materials according to procurement and processing plans, compared with actual supplies to the national economy.

- Results of settling material quotas according to actual products handed over to the State with ministries and provinces (materials supplied, additional materials provided, and materials to be returned or deducted from next year's quota).

- Settle imported materials and equipment under long-term agreements (five years), protocols, contracts, and contract appendices (annually); settle domestically produced materials according to the procurement and processing plans, with the actual supplies provided to the national economy.

- The results of settling material quotas based on the actual products delivered to the state at the ministry level and provincial level (materials supplied, additional materials granted, and materials to be returned or deducted from next year's quota).

- The situation regarding the management and use of materials, including the loss and damage of materials in each field, distribution, circulation, and use, as well as the actual consumption of materials for a unit product or work.

- Recommendations on economic planning for material resources and new measures (regulations and policies) for managing and using materials.

II. REGIME FOR SETTLING AND FINALIZING MATERIALS

1. After reporting to the superior level of both parties (supplier and user), the companies (factories) supplying materials have the right to temporarily suspend supply to units:

- Having excessive inventory of materials compared to the maximum reserve quota.

- Violating regulations and policies on the management and use of materials such as: using materials for purposes other than those specified in the plan. Engaging in production and business activities approved, selling materials distributed according to the plan or purchased from the State to private traders or other economic units to earn price differences, failing to deliver products in the quantity and quality stipulated in the signed contract without justifiable reasons.

- Not completing the production and business plan (except in cases where the failure to complete the plan is due to material factors).

When implementing the suspension of supply, both parties (supplier and user) must meet to make commitments and report to the superior level before resuming supply.

2. Supply Ministries have the right to recover materials in cases where there are no material quotas for the following year or deduct from the material quotas of the following year for units that fail to complete the plan for delivering products to the State and propose to the agency (level) issuing material quotas to resolve the issue of supplementing materials for units that exceed their delivery plans.

3. Units or individuals who achieve savings in energy and raw materials compared to the State's prescribed quotas will be rewarded with monetary awards. Conversely, if they exceed the quotas, they will have their profit-sharing ratio reduced and quarterly enterprise profits based on specific regulations on rewarding and penalizing thrift issued by the Ministry of Finance (in accordance with the spirit of Resolution No. 15-HĐBT dated February 8, 1982).

4. Production and business units that do not implement the regime for settling materials, and do not submit statistical reports on material settlement to: the supply agency, the statistical sector, and other designated places as required by the statistical reporting regime for material settlement and this circular, in addition to having their quarterly and annual bonus and welfare fund contributions reduced, will also be suspended from receiving materials until they organize the implementation of the material settlement regime and submit statistical reports on material settlement.

This circular replaces Circular No. 85 TK-KH-TC-VT dated February 2, 1983, of the Joint Ministry on "Guidelines for Implementing Decision No. 195-HĐBT dated December 14, 1982."

During implementation, if issues inconsistent with the characteristics and circumstances of the Ministry or locality are discovered, they should be reported in writing to the National Materials Settlement Agency (the permanent body for national material settlement) with detailed opinions; in cases of unreasonable report formats, in addition to reporting to the National Materials Settlement Agency, they should also report to the General Statistics Office for it to study and resolve.

Until there is an opinion on revision or supplementation from the Joint Ministry, all provisions set out in this circular shall continue to be fully implemented.