Circular No. 63/2019/TT-BTC guides the regime for collecting, submitting, managing, and using maritime security guarantee fees and financial mechanisms in the field of providing public service activities ensuring maritime safety.

CIRCULAR

Guidelines on the regime for collecting, remitting, managing, and using maritime safety guarantee fees and financial mechanisms in the field of providing public service activities ensuring maritime safety

Pursuant to the State Budget Law dated June 25, 2015;

Pursuant to the Law on Fees and Registration Fees dated November 25, 2015;

Pursuant to Decree No. 32/2019/NĐ-CP dated April 10, 2019 of the Government stipulating the assignment of tasks, placing orders, or tendering for the provision of products and services from state budget funds sourced from regular expenditure;

Pursuant to Decree No. 120/2016/NĐ-CP dated August 23, 2016 of the Government detailing and guiding the implementation of certain provisions of the Law on Fees and Charges;

Pursuant to Decree No. 58/2017/NĐ-CP dated May 10, 2017 of the Government detailing some provisions of the Maritime Code of Vietnam on management of maritime activities;

Pursuant to Decree No. 43/2018/NĐ-CP dated March 12, 2018 of the Government on management, use, and exploitation of marine infrastructure assets;

Pursuant to Decree No. 159/2018/NĐ-CP dated November 28, 2018 of the Government on management of dredging activities in port water areas and inland waterways;

Pursuant to Decree No. 87/2017/NĐ-CP dated July 26, 2017, issued by the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director of the Enterprise Finance Department,

The Minister of Finance issues this Circular guiding the regime for collecting, remitting, managing, and using maritime safety guarantee fees and financial mechanisms in the field of providing public service activities ensuring maritime safety.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

To regulate the regime for collecting, remitting, managing, and using maritime safety guarantee fees and financial mechanisms in the field of providing public service activities ensuring maritime safety.

Article 2. Applicability

This Circular applies to:

1. Vietnam Maritime Administration.

2. Maritime Port Control Units.

3. Northern Maritime Safety Assurance Corporation - Limited Liability Company, Southern Maritime Safety Assurance Corporation (hereinafter referred to as the Maritime Safety Assurance Corporations) and other units providing public service activities ensuring maritime safety.

4. Enterprises investing in construction and operation management of maritime channels that have been announced by competent authorities to put maritime channels into use according to Clause 4, Article 13 of Decree No. 58/2017/NĐ-CP dated May 10, 2017 of the Government detailing some provisions of the Vietnam Maritime Code on maritime activity management.

5. Organizations, individuals, and state agencies related to maritime safety assurance activities.

Article 3. Public Service Activities Ensuring Maritime Safety

Public service activities ensuring maritime safety carried out in accordance with this Circular include:

1. Operating independent lighthouses and beacons.

2. Operating and maintaining public maritime channel systems (including wave barriers, sand barriers, flow direction revetments, and channel bank protection revetments).

3. Surveying for the announcement of maritime navigation notices for public maritime channels (including pilot station locations).

4. Repairing and improving coastal structures of public maritime channels, including wave barriers, sand barriers, flow direction revetments, and channel bank protection revetments, which are managed by specialized state administrative agencies under the Ministry of Transport.

5. Dredging maintenance of maritime channels to ensure design standards approved by competent authorities (excluding dredging work for new maritime channel construction).

6. Emergency tasks for ensuring maritime safety.

Article 4. Methods of Providing Public Service Activities Ensuring Maritime Safety

1. The methods of providing public service activities ensuring maritime safety specified in Clauses 1, 2, 3, and 6 of Article 3 of this Circular shall be implemented through placing orders.

2. The method of providing public service activities ensuring maritime safety specified in Clause 4 of Article 3 of this Circular shall be implemented through tendering.

3. The methods, procedures, and formalities for providing public service activities ensuring maritime safety specified in Clause 5 of Article 3 of this Circular shall be implemented in accordance with Decree No. 32/2019/NĐ-CP dated April 10, 2019 of the Government stipulating the assignment of tasks, placing orders, or tendering for the provision of products and services from state budget funds sourced from regular expenditure and Decree No. 159/2018/NĐ-CP dated November 28, 2018 of the Government on managing dredging activities in port waters and inland waterways.

Article 5. Sources of Marine Safety Assurance Fee Revenue

The Marine Safety Assurance Fee revenue for the state budget includes:

1. The Marine Safety Assurance Fee collected from public maritime channels invested by the State.

2. The portion of the Marine Safety Assurance Fee allocated to the state budget collected from dedicated maritime channels as stipulated in point a, Clause 2, Article 8 of this Circular.

Chapter II

REGIME OF DECLARATION, COLLECTION, PAYMENT, MANAGEMENT AND USE OF THE MARINE SAFETY ASSURANCE FEE

Article 6. Rate of the Marine Safety Assurance Fee

The rate of the Marine Safety Assurance Fee shall be implemented according to Circular No. 261/2016/TT-BTC dated November 14, 2016, issued by the Minister of Finance, detailing maritime fees and charges and the rates of such fees and charges.

Article 7. Declaration and Payment of the Marine Safety Assurance Fee by Collection Organizations

1. For the amount of the Marine Safety Assurance Fee to be paid into the state budget, marine port authorities shall be responsible for declaring and paying the collected fee monthly, with annual settlement following the guidance provided in Circular No. 156/2013/TT-BTC dated November 6, 2013, issued by the Minister of Finance, guiding the implementation of certain provisions of the Law on Tax Administration; the Law Amending and Supplementing Certain Provisions of the Law on Tax Administration; and Decree No. 83/2013/NĐ-CP dated July 22, 2013, issued by the Government, detailing the implementation of certain provisions of the Law on Tax Administration and the Law Amending and Supplementing Certain Provisions of the Law on Tax Administration.

2. For the Marine Safety Assurance Fee specified in point b, Clause 2, Article 8 of this Circular, within the first ten working days of the following month, marine port authorities shall be responsible for determining the amount that enterprises are entitled to from the previous month and transferring the funds to the relevant unit. This fee revenue already includes value-added tax. Upon receipt of the funds, enterprises shall issue a value-added tax invoice to marine port authorities and declare and pay the value-added tax according to regulations. Marine port authorities shall not declare or deduct value-added tax.

Article 8. Management and Use of the Marine Safety Assurance Fee

1. Marine port authorities in areas collecting the Marine Safety Assurance Fee at public maritime channels invested by the State and retained a percentage (%) of the total collected fee for expenditure on fee collection activities as stipulated in Article 5 of Decree No. 120/2016/NĐ-CP dated August 23, 2016, issued by the Government, detailing and guiding the implementation of certain provisions of the Law on Fees and Charges. The percentage of the Marine Safety Assurance Fee retained for marine port authorities shall be determined in the attached annex.

After deducting the amount of fee retained according to regulations, marine port authorities shall declare and pay the remaining fee into the central government budget and record it under corresponding sub-items and chapters.

2. Marine port authorities in areas collecting the Marine Safety Assurance Fee at dedicated maritime channels invested and operated by enterprises shall retain 2% of the total collected fee for expenditure on fee collection activities as stipulated in Article 5 of Decree No. 120/2016/NĐ-CP dated August 23, 2016, issued by the Government, detailing and guiding the implementation of certain provisions of the Law on Fees and Charges.

The Marine Safety Assurance Fee collected annually at dedicated maritime channels, after deducting the retained amount at marine port authorities, shall be used as follows:

a) To allocate 30% for payment into the state budget;

b) Enterprises investing in and operating dedicated maritime channels shall enjoy 70% of the retained amount to offset investment, operation, and maintenance costs of the dedicated maritime channel in accordance with prescribed standards.

Chapter III

ESTABLISHMENT, ALLOCATION AND ASSIGNMENT OF THE MARINE SAFETY ASSURANCE FEE REVENUE ESTIMATE

Article 9. Establishment, Allocation, and Transfer of Budget for Maritime Safety Assurance Fees

1. Establishment of budget for revenue collection:

a) Annually, based on the maritime safety assurance fee revenue forecast announced by the Ministry of Finance to the Ministry of Transport; the Ministry of Transport will announce it to the Vietnam Maritime Administration.

b) The Vietnam Maritime Administration establishes the budget for maritime safety assurance fees to be submitted to the Ministry of Transport for review and consolidation within the national budget of the Ministry of Transport to be sent to the Ministry of Finance for consolidation according to the State Budget Law and guiding documents.

2. Allocation and transfer of budget for revenue collection:

Based on the annual budget for maritime safety assurance fees assigned by the competent authority, before December 31, the Ministry of Transport allocates and transfers the budget for maritime safety assurance fees to maritime port authorities; simultaneously sending to the Ministry of Finance, the Vietnam Maritime Administration, and the State Treasury.

Article 10. Consolidation and Settlement of Revenue from Maritime Safety Assurance Fees

At the end of the fiscal year, maritime port authorities consolidate the collected and paid maritime safety assurance fees in the annual settlement report to be sent to the Vietnam Maritime Administration; the Vietnam Maritime Administration reviews and consolidates, reporting to the Ministry of Transport to aggregate the annual state budget revenue of the Ministry of Transport according to current regulations.

Chapter IV

FINANCIAL MECHANISM FOR IMPLEMENTING THE TASK OF PROVIDING PUBLIC SERVICES TO ENSURE MARITIME SAFETY

Article 11. Sources of Funds for Implementing the Task of Providing Public Services to Ensure Maritime Safety

Based on the revenue from maritime safety assurance fees and the ability to balance the state budget, the funds for implementing the task of providing public services to ensure maritime safety are allocated annually from the central budget.

Article 12. Establishment, Allocation, and Transfer of Budget for Providing Public Services to Ensure Maritime Safety

1. Preparing budgets

a) Based on the volume of public services stipulated in this Circular's Article 3, the price of public services to ensure maritime safety in the previous year, and the anticipated changes in input cost factors, maritime safety assurance corporations prepare the funding requirements for providing public services to ensure maritime safety to be submitted to the Vietnam Maritime Administration.

b) On the basis of the proposals of the maritime safety assurance corporations mentioned in point a, Clause 1 of this Article, the Vietnam Maritime Administration establishes the next year's state budget expenditure plan for providing public services to ensure maritime safety to be submitted to the Ministry of Transport before July 15 each year. The Ministry of Transport reviews and consolidates within the state budget expenditure plan of the Ministry of Transport to be sent to the Ministry of Finance for consolidation according to the State Budget Law.

2. Allocation and transfer of the budget

Before December 31, the Ministry of Transport implements the allocation and transfer of the budget for providing public services to ensure maritime safety to the Vietnam Maritime Administration, simultaneously sending to the Ministry of Finance and the State Treasury where the Vietnam Maritime Administration has transaction accounts to coordinate implementation.

Article 13. Advance Payment and Settlement of Funds for Providing Public Services to Ensure Maritime Safety to ensure maritime safety

1. For public services to ensure maritime safety implemented through ordering

a) Based on the state budget expenditure plan assigned by the Ministry of Transport, the approved unit price of public services to ensure maritime safety in the previous year, before December 31, the Vietnam Maritime Administration implements signing contracts with maritime safety assurance corporations and service providers for providing public services to ensure maritime safety. The contract for providing public services to ensure maritime safety includes the following main contents: Name of product, public service; quantity, volume, quality of performance; price, unit price, value of the contract; completion time; acceptance method, advance payment, settlement; rights and obligations of the parties.

b) The Vietnam Maritime Administration implements withdrawal of the budget at the State Treasury for advance payment and settlement to maritime safety assurance corporations and service providers according to signed contracts. The State Treasury where the Vietnam Maritime Administration conducts transactions checks the documents, performs expenditure control before advance payment and settlement according to the contract.

Advance payment of funds for providing public services to ensure maritime safety.

The level of advance payment for maritime safety assurance corporations and service providers for ensuring maritime safety is carried out according to the provisions of the contract but does not exceed 50% of the contract value at the time of signing and does not exceed the annual budget allocation. Recovery of the advance payment begins from the first settlement and is fully recovered when the final settlement of the planning year is made.

Settlement of funds for providing public services to ensure maritime safety.

Periodically or after the acceptance of providing public services to ensure maritime safety, the Vietnam Maritime Administration implements payment of the completed volume value to maritime safety assurance corporations and service providers according to regulations.

2. For public services to ensure maritime safety implemented through bidding

a) Based on the state budget expenditure plan assigned by the Ministry of Transport, the Vietnam Maritime Administration implements according to the laws on construction and maintenance of construction projects to organize selection and sign contracts with contractors.

b) The Vietnam Maritime Administration implements withdrawal of the budget at the State Treasury for advance payment and settlement to contractors according to signed contracts. The State Treasury where the Vietnam Maritime Administration conducts transactions checks the documents, performs expenditure control before advance payment and settlement according to the contract.

Advance payment of funds for providing public services to ensure maritime safety.

The level of advance payment for service providers is carried out according to the provisions of the contract but does not exceed 50% of the contract value at the time of signing and does not exceed the annual budget allocation. Recovery of the advance payment begins from the first settlement and is fully recovered when the final settlement of the planning year is made.

Settlement of funds for providing public services to ensure maritime safety.

Upon acceptance of the completion of project components and construction projects put into use, the Vietnam Maritime Administration implements payment of the completed volume value to service providers according to regulations.

3. The advance payment file and settlement shall be carried out in accordance with the provisions of Circular No. 161/2012/TT-BTC dated October 2, 2012, issued by the Minister of Finance on the control and settlement regime for state budget expenditures through the State Treasury; and Circular No. 39/2016/TT-BTC dated March 1, 2016, issued by the Minister of Finance amending and supplementing certain articles of Circular No. 161/2012/TT-BTC, specifically as follows:

a) The advance payment dossier includes:

- Decision on allocating state budget expenditure estimate of the Ministry of Transport to the Vietnam Maritime Administration;

- Contract between the Vietnam Maritime Administration and the service provider unit;

- Advance payment request form (if any);

- The State budget withdrawal form (advance payment) of the Vietnam Maritime Administration, clearly stating the content of the advance payment for the State Treasury to have grounds for control and monitoring during settlement.

b) The settlement dossier includes:

- Decision on allocating state budget expenditure estimate of the Ministry of Transport to the Vietnam Maritime Administration;

- Contract between the Vietnam Maritime Administration and the service provider unit;

- Acceptance certificate confirming quantity and quality completion;

- Table determining the value of completed work volume according to the Contract for settlement request;

- Request for settlement (if any);

- Withdrawal of state budget estimate of the Vietnam Maritime Administration, clearly stating the content for the State Treasury to have grounds for supervision and tracking during settlement.

Article 14. Inspection and Settlement of Service Provision Tasks for Public Services Ensuring Marine Safety

1. Annually, the General Corporations for Marine Safety Assurance and the units providing public services ensuring marine safety shall prepare reports on the settlement of service provision tasks for public services ensuring marine safety and submit them to the Vietnam Maritime Administration, the Ministry of Transport, and the Ministry of Finance.

2. The Vietnam Maritime Administration shall take the lead and coordinate with relevant agencies and units under the Ministry of Transport to organize inspections of the settlement reports on service provision for public services ensuring marine safety by the General Corporations for Marine Safety Assurance and the units providing public services ensuring marine safety.

3. The Ministry of Transport shall direct the Vietnam Maritime Administration to prepare a report on the settlement of funds allocated for the provision of public services ensuring marine safety in accordance with the State Budget Law; consolidate this report within the Vietnam Maritime Administration's annual settlement report, submit it to the Ministry of Transport for review and consolidation within the Ministry of Transport's annual settlement report, and then submit it to the Ministry of Finance for review in accordance with the State Budget Law.

4. Organizations and individuals related to the matter must bear responsibility before the State and the law for the accuracy and honesty of the data in the settlement reports and must be responsible for compensation when performing the settlement of public services ensuring marine safety not in accordance with regulations.

Chapter V

IMPLEMENTATION

Article 15. Implementation Provisions

1. This Circular takes effect from January 1, 2020, and applies from the fiscal year 2020.

2. This Circular replaces Circular No. 14/2017/TT-BTC dated February 15, 2017, issued by the Minister of Finance guiding the management and use of marine safety assurance fees from state budget revenues and financial mechanisms in the field of public service provision ensuring marine safety, and Circular No. 262/2016/TT-BTC dated November 14, 2016, issued by the Minister of Finance stipulating the collection and submission procedures for marine safety assurance fees for dedicated shipping channels.

3. The management and use of marine safety assurance fees collected along the Soài Rạp channel will continue to be implemented according to the pilot mechanism as directed by the Prime Minister and guided by the Ministry of Finance.

4. During implementation, if the legal normative documents cited in this Circular are amended, supplemented, or replaced, they shall be applied according to the amended, supplemented, or replaced legal normative documents.

5. During implementation, if there are any difficulties, please report to the Ministry of Transport and relevant units for consideration and resolution.