Circular No. 55/2005/TT-BTC guiding the implementation of Decision No. 109/2005/QĐ-TTg dated May 16, 2005 of the Prime Minister on piloting the allocation of personnel quotas and operating funds for the General Department of Customs for the period 2005-2007.

CIRCULAR

Guidelines for implementing Decision No. 109/2005/QĐ-TTg dated May 16, 2005

of the Prime Minister on piloting the allocation of personnel quotas and operating funds

of the General Department of Customs for the period 2005-2007

Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the Law on State Budget;

Pursuant to Decree No. 77/2003/NĐ-CP dated July 1, 2003 of the Government stipulating functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decision No. 109/2005/QĐ-TTg dated May 16, 2005 of the Prime Minister "On piloting the allocation of personnel quotas and operating funds for the General Department of Customs for the period 2005-2007";

The Ministry of Finance provides guidelines for piloting the allocation of personnel quotas and operating funds for the General Department of Customs as follows:

I. GENERAL PROVISIONS:

1. Implement the pilot allocation of personnel quotas and operating funds for the General Department of Customs under the Ministry of Finance according to Decision No. 109/2005/QĐ-TTg dated May 16, 2005 of the Prime Minister from January 1, 2005 to December 31, 2007.

Do not allocate personnel quotas and operating funds to subordinate units of the General Department of Customs, including: the Customs Research Institute, Customs Newspaper, Customs College, and Export and Import Goods Analysis and Classification Centers. These units shall operate under the management mechanism for public service units.

2. The implementation of the pilot allocation of personnel quotas and operating funds for units within the customs system must ensure the following objectives and requirements:

a) Effectively implement tax laws, exploit revenue sources, and prevent revenue loss to the State budget, ensuring the completion and striving to exceed the revenue targets assigned by the State.

b) Reform the management mechanisms for personnel quotas and operating funds of the General Department of Customs; promote organizational restructuring, building a clean, strong, and highly qualified workforce; allocated funds should be linked to results and effectiveness of state budget revenue collection activities; grant autonomy and responsibility to unit heads in organizing work, labor utilization, and financial resource management.

c) Create initiative in funding, practice thrift and combat waste in fund usage; focus on modernizing information technology and equipping advanced technical equipment to enhance efficiency and modernize management technology to fulfill state functions and tasks, meet international integration conditions; strengthen training and supplement income for officials and civil servants.

d) Implement transparency and democracy in accordance with the provisions of the law, ensuring the legitimate rights of officials and civil servants in the customs system.

3. Funding for the operations of the General Department of Customs includes: allocated funds from the State; State budget funds allocated for non-allocated expenditure items; and other lawful sources of funding as prescribed by law.

4. The General Department of Customs is responsible for managing and utilizing the allocated personnel quotas, assets, and operating funds in accordance with current regulations of the State and the guidelines set forth in this Circular.

5. Within the scope of allocated personnel quotas and funds, based on the characteristics and nature of each unit's activities, the Director of the General Department of Customs shall decide to allocate to units within the customs system in a manner that is appropriate.

II. SPECIFIC PROVISIONS:

1. Allocation of personnel quotas:

a) The number of personnel quotas allocated to units within the customs system implementing the allocation shall be implemented according to the Decision of the Minister of Finance and included in the total number of state administrative personnel quotas allocated to the Ministry of Finance.

b) Within the scope of allocated personnel quotas, the General Department of Customs may proactively organize, restructure, streamline personnel quotas, manage, and utilize civil servants in accordance with the Civil Servant Law, current guiding documents of the State, and the Ministry of Finance.

The General Department of Customs is responsible for allocating personnel quotas to units within the customs system implementing the allocation, ensuring that the total number of allocated personnel quotas does not exceed the number allocated by the Minister of Finance to the General Department of Customs.

In addition to the allocated personnel quotas, during the implementation period, based on assigned functions and tasks, job needs, and financial capacity, the General Department of Customs has the right to enter into contracts for the hiring of work under the Labor Code and employment contracts for certain positions as stipulated in Decree No. 68/2000/NĐ-CP dated November 17, 2000 of the Government on implementing the contract system for certain types of work in administrative agencies and public service units.

c) The number of personnel quotas allocated to the General Department of Customs will be reviewed and adjusted in cases where new (or merged) customs offices are established at provincial and centrally-administered city levels or additional functions and tasks are added according to decisions by competent authorities;

When it is necessary to adjust the allocated personnel quotas, the Director of the General Department of Customs shall report to the Minister of Finance for review and coordination with the Minister of Home Affairs to submit to the Prime Minister for decision.

2. Allocation of operating funds:

a) The level of operating funds allocated to units within the customs system implementing the allocation is 1.6% of the total actual revenue collected annually by the General Department of Customs; including:

- Export duties, import duties,

- Special consumption taxes on imported goods,

- Value-added tax on imported goods,

- Price differences on imported goods.

Annually, the Ministry of Finance will determine the total actual revenue collected into the State budget organized by the General Department of Customs to serve as the basis for calculating the operating funds allocated to the General Department of Customs for that year.

b) Operating funds allocated to the General Department of Customs shall be used for the following purposes:

- Regular operational expenses

+ Personal payment expenses: Salary, wages, allowances, contributions (including social insurance, health insurance, trade union fees), and other personal payments according to state regulations.

+ Administrative management expenses: Payment for public services; office supplies; information, propaganda, communication; conferences; travel expenses; rental expenses; regular maintenance and repair of fixed assets; and other administrative management expenses.

+ Business operation expenses: specialized technical equipment and materials; anti-smuggling and revenue loss prevention activities; seals; uniforms and labor protection; implementation and coordination expenses; other business operation expenses.

- Non-recurring activity expenses:

+ Outbound and inbound expenses.

+ Industry modernization expenses: procurement of fixed assets for professional operations; support construction costs; major repairs of office premises, equipment, and other fixed assets according to the General Department of Customs and Ministry of Finance's programs and plans.

+ Expenses for developing and modernizing information technology applications according to the General Department of Customs and Ministry of Finance's programs and plans.

+ Training and professional development expenses for customs officers according to the General Department of Customs and Ministry of Finance's programs and plans.

+ Special expenses as prescribed by the Minister of Finance.

c) Standards, norms, and expenditure regimes for the implementation of budgetary allocations:

- For salary expenditure: Based on staffing levels and allocated funds, the General Department of Customs may allocate average salary levels for the entire industry not exceeding 1.8 times the state-prescribed salary system for civil servants and public officials.

Allowances are adjusted based on salary expenditure and increased income, including position allowances, responsibility allowances, regional allowances, customs seniority allowances, and allowances for seniority beyond the standard framework as prescribed.

The implementation of contribution payment systems based on salaries shall be carried out according to current state regulations (excluding salary adjustments and increased income).

- For administrative management expenses, business operation expenses, and training and professional development expenses for customs officers: based on applying standards, quotas, and systems according to current regulations within the scope of allocated funds, the General Department of Customs Director shall establish internal expenditure standards, quotas, and systems suitable for special activities and report to the Minister of Finance for approval before issuance.

- For non-recurring activity expenses (excluding training and professional development expenses for customs officers), the General Department of Customs shall implement according to current financial management standards, quotas, and systems.

d) The General Department of Customs may utilize savings from allocated expenses for the following purposes:

- Supplementing material and equipment strengthening for anti-smuggling and customs operations; application and development of information technology.

- Supplementing training and professional development expenses for customs officers according to the General Department of Customs and Ministry of Finance's programs and plans.

- Additional subsidies for those voluntarily retiring during the restructuring and reorganization process.

- Reward and welfare expenses. The annual reward and welfare expenses shall not exceed three months' salary.

- Supporting subordinate public service units under the General Department of Customs.

- Establishing a reserve fund for stable income and a development fund for industry activities. The contribution rate and usage are regulated by the Minister of Finance.

- Supplementing income for customs officers, civil servants, and public officials:

In addition to the salary level implemented as stated above at point c, the General Department of Customs may use saved funds to supplement income for officers and civil servants; the supplementary income level for customs officers and civil servants is decided by the Minister of Finance.

đ) Payment of salaries and incomes for customs officers shall be conducted based on work results and quality, ensuring fairness and reasonableness, linked to work effectiveness after the General Department of Customs Director and heads of delegated units within the customs system reach consensus with the trade union organization at their respective units.

e) Based on the allocation amount and content, standards, quotas, and systems stipulated in clauses a, b, c, and d above, the General Department of Customs Director shall delegate funds to units within the customs system to ensure clear definition of the content and amount of allocated funds for regular activities and the content and amount of funds for non-recurring tasks.

g) During the period of implementing staff and operational budget allocations, when the state changes policies and systems, the General Department of Customs must cover additional costs according to new policies and systems.

h) The allocation amount of the state budget for the General Department of Customs will be reviewed and adjusted in certain cases where the allocated budget is insufficient to ensure the minimum salary expenditure according to the state-prescribed system and maintain the operation of the customs system machinery; specifically:

- The state changes tax collection policies,

- Adding functions and responsibilities according to the decision of the competent authority,

- Natural disasters and other objective reasons.

The General Department of Customs Director has the responsibility to report to the Minister of Finance for review and submission to the Prime Minister for appropriate adjustment to ensure that the General Department of Customs can fulfill its assigned tasks.

3. For non-delegated funds: In addition to the allocated funds specified in point a clause 2 above, each year the General Department of Customs also uses the following sources of funds:

a) Budget funds provided by the state budget to implement specific tasks:

- Centralized construction expenses funded by the state budget.

- Expenses for national-level scientific research projects;

- Expenses for national target programs; training and development of civil servants according to the state program and other government programs and projects.

- Operating expenses of subordinate public service units under the General Department of Customs according to state regulations for public service units.

- Expenses for streamlining staffing according to state regulations.

b) Funds retained from customs fees and lawful revenues are used to finance tasks according to laws within the customs domain.

Management and utilization of non-delegated funds mentioned above, the General Department of Customs is responsible for implementing according to current state standards, systems, and quotas.

4. Budget preparation, budget allocation, budget distribution, budget withdrawal, and settlement:

a) Budget preparation: Annually, the General Department of Customs is responsible for preparing the budget for state revenue and expenditure, sending it to the Ministry of Finance (primary level) for review and consolidation, then submitting it to the Ministry of Finance, the Ministry of Planning and Investment, and related agencies in accordance with the State Budget Law and guiding documents.

b) Allocate the budget:

- For allocated funds:

+ Annually, based on the state budget revenue forecast decided by the National Assembly (the portion assigned to the General Department of Customs for implementation) and the allocated budget amounting to 1.6%, the Ministry of Finance assigns the absolute amount of the allocated budget to the General Department of Customs for implementation.

+ At the end of the fiscal year, based on the confirmation by the State Treasury regarding the actual revenue collected into the state budget organized by the General Department of Customs and the allocated budget amounting to 1.6%; the General Department of Customs calculates and requests the Ministry of Finance to officially review the actual amount of the allocated budget used during the year. In cases where the allocated budget at the beginning of the year has not been fully assigned, the Ministry of Finance will assign additional budget forecasts for the difference to be used by the General Department of Customs; in cases where the allocated budget at the beginning of the year exceeds the prescribed allocated budget, the General Department of Customs is responsible for returning the excess amount to the state budget or the Ministry of Finance will deduct it from the next year's budget of the General Department of Customs.

- For the non-allocated budget amount: Based on the state budget expenditure forecast assigned by the Prime Minister, the Ministry of Finance assigns the expenditure budget to the General Department of Customs according to current regulations.

c) Allocation and assignment of budget estimates:

Based on the budget estimate assigned by the Ministry of Finance, the remaining allocated budget of the previous year that was not used (if any), the assigned tasks, and the guidance of the Ministry of Finance, the General Department of Customs implements the allocation of budget estimates to units under the Customs system for review by the Ministry of Finance according to the Law on State Budget and current guiding documents. The allocation of budget estimates must ensure the following contents:

- Allocation according to sources of funds, including: allocated operational funds; funds for expenditures not subject to allocation.

- According to four categories: personal payment expenses; specialized professional expenses; procurement and repair expenses; other expenses.

- Additionally, for the allocated operational funds, the implementation of budget estimate allocation ensures the division into two aspects: funds to ensure regular expenditure activities; funds to implement irregular expenditure tasks.

After being reviewed by the Ministry of Finance, the General Department of Customs implements the assignment of budget estimates to budgetary units under the Customs system according to current regulations.

d) Adjust the budget:

- For the budget of allocated operating funds:

+ Regular activity expenditure budget: budgetary units under the Customs system that have allocated operational funds may adjust the budget estimates between personal payment expense categories, specialized professional expense categories, and other expense categories within the scope of allocated funds or adjust from these three expense categories to increase procurement and repair expense categories according to approved plans.

When there is a need to adjust between the above expense categories, the unit prepares an adjusted budget estimate and sends it to the State Treasury (ST) where the unit maintains its transaction account; ST is responsible for making payments and settlements according to the request of the unit head implementing the allocation.

+ For cases requiring adjustments to budget estimates for irregular expenditure items, adjustments from irregular activity expenditures to regular activity expenditures, and adjustments to the budget estimates of allocated funds for Customs Bureaus; units implementing allocations prepare adjusted budget estimates and send them to the General Department of Customs for consolidation and submission to the Ministry of Finance for review according to current regulations.

- For adjustments to budget estimates for items not subject to allocation: The General Department of Customs implements according to current regulations.

đ) Unused funds at the end of the year:

- For allocated funds: at the end of the fiscal year, if there is surplus allocated funding, the unit can transfer it to the next year for continued use. The implementation of transferring surplus funds is carried out as follows:

+ For expenses that the unit has temporarily withdrawn from the budget estimate at ST during the year: the temporarily withdrawn amounts should promptly complete settlement documents to carry out final settlement according to regulations. Specifically, for cash withdrawals from the budget estimate that have not been spent by the end of December 31 (or without spending purposes), the unit must return the budget estimate to ST where the unit maintains its transaction account to complete the procedures for transferring the surplus budget estimate to the next year for use.

+ The General Department of Customs compiles the surplus budget estimates at ST (including restored surplus budget estimates) for each unit implementing allocations and by expense category (with confirmation from ST) and submits them to the Ministry of Finance to process the transfer of surplus budget estimates to the next year according to regulations.

- For non-allocated funds: at the end of the fiscal year, if there is surplus funding that has not been used, the unit must return it to the state budget according to current regulations. If necessary to transfer funds to the next year for continued implementation, the General Department of Customs provides explanations and reports for the Ministry of Finance to consider and decide.

e) Withdrawal of budget estimates, accounting, and final settlement reporting: The General Department of Customs and units implementing allocations under the Customs system shall comply with current regulations.

III. IMPLEMENTATION:

1. The Director of the General Department of Customs is responsible for guiding and organizing the implementation of pilot allocation of staffing and operational funds in the Customs sector in accordance with Decision No. 109/2005/QĐ-TTg dated May 16, 2005 of the Prime Minister, the guidance provided in this Circular, and the regulations of the Minister of Finance.

2. Annually, the General Department of Customs organizes inspections, interim reviews, and evaluations to draw lessons from the implementation of pilot allocation of staffing and operational funds.

In August 2007, the Director of the General Department of Customs will organize a comprehensive evaluation of the results of the pilot allocation of staffing and operational funds for the period 2005-2007 and the plan for staffing and operational fund allocation for the subsequent period, to report to the Minister of Finance for presentation to the Prime Minister for decision.

3. This Circular takes effect 15 days after its publication in the Official Gazette. Circulars No. 104/2003/TT-BTC dated October 30, 2003 and No. 94/2004/TT-BTC dated October 1, 2004, guiding the implementation of pilot allocation of staffing and operational funds for the General Department of Customs in 2003 and 2004, are hereby abolished.

During the implementation process, if there are difficulties or obstacles, units are requested to reflect them to the Ministry of Finance for timely research and resolution./.