Joint Circular No. 59/2014/TTLT-BTC-BGTVT guiding the collection, submission, and utilization of revenue from leasing the exploitation of infrastructure structures of ports and wharfs invested with state capital.

JOINT CIRCULAR

Guidelines on collection, payment, and utilization of revenue from leasing and exploiting infrastructure structures of state-invested port terminals and wharves infrastructure

ports and wharfs invested with state capital

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Pursuant to the Maritime Code of Vietnam dated June 14, 2005;

Pursuant to the Law on State Budget dated December 16, 2002;

Pursuant to the Law on Management and Use of State Property dated June 3, 2008;

Based on Decree No. 21/2012/NĐ-CP dated March 21, 2012 of the Government on management of seaports and maritime channels;

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. 52/2009/NĐ-CP dated June 3, 2009 of the Government detailing and guiding the implementation of certain provisions of the Law on Management and Use of State Assets;

On the basis of Decree No. 215/2013/NĐ-CP dated December 23, 2013 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 107/2012/NĐ-CP dated December 20, 2012 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Transport;

The Minister of Finance and the Minister of Transport issue this Joint Circular guiding the collection, payment, and utilization of revenue from leasing and exploiting infrastructure structures of state-invested port terminals and wharves:

Article 1. Scope of Regulation and Applicability

Article 1. Scope of Regulation: This Circular guides the collection, payment, and utilization of revenue from leasing and exploiting infrastructure structures of state-invested port terminals and wharves.

Article 2. Applicability: This Circular applies to domestic and foreign agencies, organizations, and individuals related to the collection, payment, and utilization of revenue from leasing and exploiting infrastructure structures of state-invested port terminals and wharves.

Article 3. Collection and Payment of Leasing Revenue for Exploiting Infrastructure Structures of Port Terminals and Wharves

Clause 1. The leasing price for exploiting infrastructure structures of port terminals and wharves shall be implemented in accordance with Article 37 of Decree No. 21/2012/NĐ-CP dated March 21, 2012 of the Government on management of seaports and maritime channels.

Clause 2. The lessee is responsible for paying the leasing revenue for exploiting infrastructure structures of port terminals and wharves into the account of the lessor opened at the State Treasury. The payment method shall be carried out according to the lease agreement between the parties and must comply with the following requirements:

Point a. Regarding fixed leasing payment: In the first year of signing the lease agreement for exploiting infrastructure structures of port terminals and wharves: within the latest seven days from the date of signing the lease agreement, the lessee must pay 100% of the fixed rental price of the first year according to the lease agreement. From the second year onwards, annually, the lessee is responsible for paying the leasing fee as follows:

- First installment: pay 50% of the fixed rental price of that year according to the lease agreement no later than January 15 each year;

- Second installment: pay 50% of the fixed rental price no later than June 15 each year.

Point b. Regarding variable leasing payment (calculated as a percentage of revenue):

By the latest June 30 of the following year, based on the actual revenue from exploiting leased assets in that year according to the audit results of the State Audit Office or independent auditor, the lessor and the lessee officially determine the variable rental price of the previous year. Within the latest seven days after determining the variable rental price of the previous year, the lessee must pay the entire variable leasing payment of the previous year into the lessor's account opened at the State Treasury.

Clause 3. Within the latest seven days from the date of receiving the leasing revenue for exploiting infrastructure structures of port terminals and wharves, the lessor must pay the entire amount into the state budget, after deducting the operating costs of the lessor according to the approved budget (in cases where the state budget has not guaranteed the operating expenses).

Clause 4. Revenue from leasing and exploiting infrastructure structures of port terminals and wharves invested with central government budget shall be managed by the central government. Revenue from leasing and exploiting infrastructure structures of port terminals and wharves invested with local government budget shall be managed by the local government.

Article 3. Handling of Late Payment of Rent

1. In case the Lessee fails to pay rent for exploiting port infrastructure and wharf structures within six months, the Lessee shall pay an additional amount of interest calculated at the interest rate published by the State Bank at the nearest time point for the amount and period of late payment.

2. In case the Lessee fails to pay beyond the deadline from six months up to less than one year, in addition to paying the interest as stipulated in Clause 1 of this Article, the Lessee shall also pay an additional amount of interest calculated for the period of late payment from six months up to less than one year at an interest rate equal to 150% of the interest rate prescribed in Clause 1 of this Article.

3. In case of late payment beyond the deadline of one year or more, the Lessor has the right to terminate the lease contract. The Lessee shall be responsible for all resulting losses (if any) due to the premature termination of the lease contract. Fifteen days after the date of termination of the lease contract, the Lessor will deduct the rental amount and the interest as prescribed in Clauses 1 and 2 of this Article from the guarantee deposit for the performance of the lease contract according to the regulations of the Ministry of Transport.

Article 4. Subleasing of Port Infrastructure Structures

1. The subleasing of port infrastructure structures shall be carried out in accordance with the provisions of Article 42 of Decree No. 21/2012/NĐ-CP dated March 21, 2012 of the Government on management of seaports and maritime channels.

2. The Lessee shall prepare a dossier and a plan for subleasing part of the port infrastructure structures, submit it to the Lessor for review and decision by the competent authority. The competent authority is the agency that approves the leasing exploitation plan and the result of selecting the lessee for port infrastructure structures.

3. The sublessee must ensure the conditions for leasing and exploiting port infrastructure structures in accordance with Article 38 of Decree No. 21/2012/NĐ-CP dated March 21, 2012 of the Government on management of seaports and maritime channels, and must commit to fulfill all obligations of the Lessee under the lease contract signed with the Lessor.

Article 5. Use of Revenue from Leasing and Exploiting Port Infrastructure Structures

The revenue from leasing and exploiting port infrastructure structures shall be used as follows:

1. In case the Lessor has not been guaranteed state budget funding for annual operating expenses, a portion of the revenue from leasing port infrastructure structures may be allocated to cover the operating costs of the Lessor according to the approved budget, including:

a) Salaries and allowances for personnel involved in managing and exploiting port infrastructure structures (excluding salary and allowance costs for officials and civil servants who already receive state budget salaries according to established regulations);

b) Management expenses: electricity, water, communication, materials, office supplies, repair and purchase of assets and equipment for management purposes;

c) Expenses for developing plans and organizing selection of lessees; monitoring and supervising the implementation of the lease contract;

d) Expenses for summarizing, reviewing, and training;

đ) Other expenses (if any).

2. After allocating the operating expenses of the Lessor as stipulated in Clause 1 of this Article, the entire revenue from leasing and exploiting port infrastructure structures shall be remitted to the state budget and used for the following purposes (if applicable):

a) Repaying loans and loan interest for ports and wharves invested using borrowed funds;

b) Maintenance and repair of port infrastructure structures (leased assets) according to current maintenance and repair standards. In cases where maintenance and repair of port infrastructure structures (leased assets) are included in the operating costs of the Lessee, the Ministry of Transport will specify the responsibilities of the Lessee for the maintenance and repair tasks of port infrastructure structures belonging to the Lessor;

c) Upgrading, improving, and expanding port infrastructure; constructing new ports and wharves according to approved plans and port development master plans.

3. For regular expenses that are implemented according to current financial expenditure standards and regulations of the state; for investment expenses, they are implemented according to laws on investment and construction and current financial expenditure standards and regulations of the state regarding basic construction investment.

Article 6. Establishment, Implementation of Budget Estimates and Settlement

1. Establishment of budget projections:

a) Based on the Lease Contract (for wharves and port structures that have been leased out), the leasing plan (for wharves and port structures planned to be leased out within the planning year), the agency entrusted with the task by the lessor shall establish the budget estimate for revenue from leasing the exploitation of port infrastructure (including: fixed lease fees, variable lease fees, and other revenues related to leasing the exploitation of port infrastructure; detailed for each wharf and port structure), the amount retained for operational expenses of the lessor, and the amount to be remitted to the state budget.

Based on the tasks and projects approved by the competent authority, the implementation situation of the reporting year; the requirements of the planning year's tasks, economic and technical norms, and current financial expenditure regulations; units entrusted with the task shall establish the budget estimates for expenditures according to the contents stipulated in Clause 2, Article 5 of this Circular in accordance with the regulations on establishing the state budget estimates for regular expenditures (for expenditures of a regular nature) and construction investment expenditures (for expenditures of an investment and new construction nature);

b) Relevant Ministries shall be responsible for establishing the budget estimates for revenue and expenditure for leasing port infrastructure under central management, consolidating them into their annual state budget revenue and expenditure estimates, and submitting them to the Ministry of Finance and the Ministry of Planning and Investment for consolidation and reporting to the Government for approval by the National Assembly as prescribed.

Relevant Departments shall be responsible for establishing the budget estimates for revenue and expenditure for leasing port infrastructure under local management, submitting them to the same-level finance agencies and planning and investment agencies for review and consolidation into their annual state budget revenue and expenditure estimates, and reporting to the People's Councils of the provinces for approval by the Provincial People's Councils as prescribed.

2. Allocation, Management, Disbursement, and Payment: The allocation, management, disbursement, and payment shall be carried out in accordance with the State Budget Law and current guiding documents.

3. Finalization Work:

a) Units allocated state budget funds from leasing revenue for the exploitation of port infrastructure shall be responsible for finalizing according to the regulations;

b) The examination and verification of finalization reports according to current regulations for each source of funding (construction investment expenditures, regular expenditures).

Article 7. Inspection Work

Relevant Ministries and Departments at provincial and centrally-administered city levels shall be responsible for coordinating with the same-level finance agencies to periodically and urgently inspect units regarding the implementation of revenue and expenditure from leasing the exploitation of port infrastructure.

Article 8. Effectiveness and Implementation

1. This Circular takes effect from June 24, 2014;

2. For lease management contracts for port infrastructure signed before this Circular takes effect, they shall be implemented according to the signed lease contracts.

3. During the implementation process, if there are any difficulties, relevant ministries, sectors, localities, organizations, and individuals are requested to promptly reflect these issues to the Ministry of Finance and the Ministry of Transport for consideration and resolution.