Circular No. 62/2001/TT-BTC guiding the payment of commission in export brokerage transactions

CIRCULAR

Guidelines for paying commission in export transactions and brokerage

Implementing Resolution No. 08/1999/NQ-CP dated July 9, 1999 of the Government on measures to manage and implement tasks 6in the last months of 1999; to encourage and promote exports, on January 5, 2000, the Ministry of Finance issued Circular No. TT-BTC guiding the payment of commissions in export transactions and brokerage; number 01/2000/ Circular No. TT-BTC guiding the payment of commissions in export transactions and brokerage;

To further strengthen encouragement and promote exports in order to increase foreign currency inflows to the country in accordance with the spirit of the Resolution number 05/2001/No. 08/1999/NQ-CP dated October 20, 2015 of dated May 24, 2001 of the Government;

II. KEY TASKS subject, organization, unit under the People's Committee of the commune level taking into account the opinions of the Ministry of Trade, the Ministry of Planning and Investment and the Government Price Board at the meeting held on May 6 14, 2001 and the guidance of the Prime Minister in Official Letter No. 3075/VP-CP-KTTH dated July 10, 2001 of the Government Office, the Ministry of Finance guides the payment of commissions in export transactions and brokerage as follows:

I. GENERAL PROVISIONS

1The system of commission payments for export transactions and brokerage stipulated in this Circular applies to enterprises exporting directly or through agency (hereinafter referred to as enterprises).

2Commission for export transactions and brokerage activities stipulated in this Circular is the amount of money that enterprises must pay to foreigners, diplomatic agencies of Vietnam abroad (including trade representatives) who have helped enterprises sell goods, increase export turnover by finding new customers and markets; help enterprises sell goods that are difficult to find markets for or maintain regular and stable traditional customers of the enterprise to export effectively.

Foreigners stipulated in this Circular are organizations and individuals from foreign countries acting as brokers for export enterprises, or directly importing goods from enterprises requesting commission payments.

3Commission for export transactions and brokerage shall be paid when enterprises have signed export contracts and exported effectively.

4The level of commission for export transactions and brokerage shall be determined based on the economic efficiency of each export contract brought about by transaction and brokerage activities.

5Depending on their specific conditions, enterprises shall establish a regulation on commission payments for export transactions and brokerage to apply uniformly and publicly within the enterprise. The basic content of the regulation must reflect the following factors: Scope of application, contract or confirmation of transaction and brokerage export activities, principles for concluding and settling transaction and brokerage contracts... This regulation shall be approved by the Board of Directors or the General Director (for enterprises without a Board of Directors).

6Organizations and individuals of Vietnamese nationality (except for diplomatic agencies of Vietnam abroad, including trade representatives) engaged in export transaction and brokerage activities shall enjoy the commission stipulated in Circular No. 01/1998/TT-BTC dated January 3, 1998 guiding the implementation of service fees and brokerage commissions in state-owned enterprises of the Ministry of Finance.

II. SPECIFIC PROVISIONS

1. The subjects entitled to receive commission for export transactions and brokerage are specified in Point 2, Section 1 of this Circular.

Payment of commission for export transactions and brokerage shall not apply to the following cases:

Exported goods under aid agreements; Exported goods under barter arrangements;

Re-exported goods.

2. Level of commission for export transactions and brokerage.

The specific level of payment shall be determined by the enterprise based on negotiation with partners and depending on the effectiveness of each transaction and brokerage activity and must ensure the principle of thrift, transparency, and accountability.

The effectiveness of expenses for export transactions and brokerage is determined based on the following specific activities:

Helping enterprises export goods, especially those facing market difficulties and declining competitive ability; finding new customers and markets; maintaining traditional customers (regular and stable direct buyers of the enterprise's products at reasonable prices requesting commission payments);

Helping enterprises export goods at higher prices than the export prices of the market at the same export time;

For agricultural and food products, if the export can break even or incur losses but still bring overall benefits (if not exported, losses would be greater; maintaining and expanding market share in the importing country), then it is permissible to pay brokerage commission according to the provisions of this Circular. 3. Authority to decide on the payment of commission for export transactions and brokerage.

For goods exported under government agreements and contracts, the Minister of Finance shall examine, decide, and report to the Prime Minister.

3.1. 3.2. For commercial exports by enterprises: Based on the approved regulations and the economic efficiency of each export contract due to transaction and brokerage activities, the General Directors of enterprises shall negotiate with partners and decide on the level of payment. Transaction and brokerage expenses for export must be reflected in the contract and its attachments and must be supported by legal documentation.

In cases where the recipient of the commission for export transactions and brokerage cannot sign the payment voucher or does not agree to be reflected in the contract and its attachments, the payment documentation must bear the signatures of the enterprise's General Director, Chief Accountant, and Cashier.

4. In such cases, if there is an intermediary directly receiving the money to transfer to the recipient of the commission for export transactions and brokerage, the intermediary transferring the money must sign (clearly stating name and address) on the receipt and must bear personal responsibility before the enterprise and the law.

The commission expense for export transactions and brokerage shall be recorded as selling expenses of the enterprise (foreign currency commission expenses shall be converted into Vietnamese Dong at the actual average buying rate published by the State Bank at the time of commission payment) and implemented in accordance with the current financial disclosure regulations.

In this case, if an intermediary directly receives money to transfer to the beneficiary and receives a commission for export trading, the intermediary must sign (clearly write their name and address) on the receipt and shall be personally liable before the enterprise and the law.

5. The expenditure for export trading commissions is recorded as selling expenses of the enterprise (commissions paid in foreign currency are converted into Vietnamese Dong at the actual average buying rate published by the State Bank of Vietnam on the inter-bank foreign exchange market at the time of payment of the commission) and shall comply with the current financial disclosure regulations.

In all cases, the applicant and the person deciding to pay transaction commissions and export brokerage fees shall be responsible for their decisions. If the system is abused to pay out of purpose or to incorrect recipients, the person making the payment decision shall bear legal responsibility.

III. IMPLEMENTATION PROVISIONS

1This Circular takes effect from June 1, 2001, and replaces Circular No. 01/2000/TT-BTC dated January 5, 2000, issued by the Ministry of Finance.

2During implementation, if there are difficulties or obstacles, enterprises are requested to report them to the Ministry of Finance for study and resolution./.