Consolidated Document number 63/VBHN-BTC Circular guiding the management and use of environmental restoration and recovery bonds for mineral extraction activities at the Environmental Protection Fund

CIRCULAR[1]

GUIDELINES FOR THE MANAGEMENT AND USE OF ENVIRONMENTAL RESTORATION AND REHABILITATION FUNDS DEPOSITED BY MINERAL EXPLORATION ACTIVITIES IN THE ENVIRONMENT PROTECTION FUND

Circular No. 08/2017/TT-BTC dated January 24, 2017 of the Ministry of Finance guiding the management and use of environmental restoration and rehabilitation funds deposited by mineral exploration activities in the Environment Protection Fund, which took effect from March 10, 2017, was amended and supplemented by:

Circular No. 84/2020/TT-BTC dated October 1, 2020 of the Ministry of Finance amending and supplementing regulations on periodic reporting within the authority of the Minister of Finance in the field of finance and banking, which took effect from November 15, 2020.

Pursuant to the Environmental Protection Law on June 23, 2014;

Pursuant to Decree No. 19/2015/NĐ-CP dated February 14, 2015 of the Government detailing the implementation of certain provisions of the Law on Environmental Protection;

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

Considering the proposal of the Director of the Department of Financial Institutions and Financial Organizations;

The Minister of Finance promulgates this Circular guiding the management and use of environmental restoration and rehabilitation funds deposited by mineral exploration activities in the Environment Protection Fund.[2]

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the management and use of environmental restoration and rehabilitation funds deposited by mineral exploration activities in the Environment Protection Fund.transferto the Environmental Protection Fund.

Article 2. Applicability

1. Local Environment Protection Funds are established by the People's Committees of provinces and centrally-administered cities and the Vietnam Environment Protection Fund (under the Ministry of Natural Resources and Environment), established by the Prime Minister (hereinafter referred to as the Environment Protection Fund). of the National Assembly; People's Committees of provinces and centrally governed cities establish local Environmental Protection Funds, and the Vietnam Environmental Protection Fund (subordinate to the Ministry of Natural Resources and Environment) established by the Prime Minister (hereinafter referred to as the Environmental Protection Fund).

2. Organizations and individuals implementing the deposit of environmental restoration and rehabilitation funds for mineral exploration activities at the Environment Protection Fund.transfertransfer to the Environmental Protection Funds.

3. Other agencies, organizations, and individuals related as provided by law.

Article 3. Explanation of Terms

1. Depositor: Organizations and individuals conducting mineral exploration activities must deposit environmental restoration and rehabilitation funds for such activities at the Environment Protection Fund in accordance with the law and this Circular.transfertransfer must implement a deposit for environmental remediation and restoration. for mining activitiestransfertransfer to the Environmental Protection Funds in accordance with the provisions of the law and this Circular.

2. Deposit recipient: The Environment Protection Fund established and operating in accordance with the law and this Circular.

3. Deposit amount: It is the sum of money that the depositor transfers to the deposit recipient to ensure the responsibility for implementing environmental restoration and rehabilitation projects for mineral exploration activities in accordance with the law and this Circular.transferArticle 4. Deposit currency, deposit amount, deposit method, deposit time, documentation, and procedures for deposit

Deposit currency, deposit amount, deposit method, deposit time, documentation, and procedures for deposit shall be implemented in accordance with Decree No. 19/2015/NĐ-CP dated February 14, 2015 of the Government detailing the implementation of certain provisions of the Law on Environmental Protection and Circular No. 38/2015/TT-BTNMT dated June 30, 2015 of the Ministry of Natural Resources and Environment on environmental restoration and rehabilitation in mineral exploration activities and other legal regulatory documents replacing, amending, or supplementing.

The currency of the deposit, the amount of the deposit, the method of deposit, the time of deposit, the documents, and the procedures for deposit shall be implemented in accordance with the provisions of Government Decree No. 19/2015/NĐ-CP dated February 14, 2015, detailing the implementation of certain articles of the Law on Environmental Protection, and Circular No. 38/2015/TT-BTNMT dated June 30, 2015, of the Ministry of Natural Resources and Environment on environmental remediation and restoration in mining activities, and other relevant legal documents replacing or amending these regulations.transfermining activities and other relevant legal documents replacing or amending, MANAGEMENT AND USE OF DEPOSITS AT THE ENVIRONMENT PROTECTION FUND (if applicable).

Chapter II

1. Deposits must be managed and used on the principle of preserving the principal, paying interest on deposits in accordance with the regulations, and self-balancing to cover management costs for deposit receipt activities of the deposit recipient.

Article 5. Principles for Managing and Using Security Deposits

2. The management and use of deposits must be carried out openly and transparently, complying with the provisions of this Circular and related legal regulatory documents.

1. The deposit recipient must open a separate account to track deposits.

Article 6. Management of Security Deposits

2. Deposits must be placed in commercial banks with good quality operations according to the credit rating of the State Bank of Vietnam, following the principle of ensuring preservation of the principal, covering interest payment costs for the depositor, and management costs for deposit receipt activities.

3. Interest rates and term of deposit at commercial banks are agreed upon by the deposit recipient and the commercial bank in accordance with the law.

4. Deposit interest rate:

a) The deposit interest rate is adjusted based on the lending interest rate of the deposit recipient and applied to the entire balance of deposits;

b) In case the deposit recipient does not carry out lending activities, the deposit interest rate is determined based on the lending interest rate of the Vietnam Environment Protection Fund at the time of deposit receipt;

c) In case the deposit recipient applies multiple lending interest rates for different categories, the interest on deposit paid by the deposit recipient to the depositor is calculated based on the arithmetic average of those lending interest rates;

d) The depositor can only withdraw interest once after receiving confirmation of the completion of the entire content of the environmental restoration and rehabilitation plan or supplementary environmental restoration and rehabilitation plan as stipulated in Clause 4, Article 8 of Decree No. 19/2015/NĐ-CP and other legal regulatory documents replacing, amending, or supplementing (if applicable);

5. Fulfillment of tax obligations: The deposit recipient has the responsibility to fully fulfill tax obligations in accordance with current laws. MANAGEMENT AND USE OF DEPOSITS AT THE ENVIRONMENT PROTECTION FUND (if applicable).

1. The deposit recipient may not use deposits for lending or other purposes outside the provisions of this Circular.

Article 7. Use of Deposit Money

2. Use of interest from deposit placement:

a) All interest earned from deposit placement at commercial banks is recorded as business operation revenue of the deposit recipient;

b) All interest paid to the depositor is recorded as business operation expenses of the deposit recipient.

3. Refund of deposits:

a) The refund of deposits is carried out in accordance with Clause 5, Article 8 of Decree No. 19/2015/NĐ-CP dated February 14, 2015 of the Government detailing the implementation of certain provisions of the Law on Environmental Protection and Article 15 of Circular No. 38/2015/TT-BTNMT dated June 30, 2015 of the Ministry of Natural Resources and Environment on environmental restoration and rehabilitation in mineral exploration activities and other legal regulatory documents replacing, amending, or supplementing (if applicable);

b) The depositor must submit a withdrawal plan for deposits to the deposit recipient three (03) months before the deposit recipient is required to refund deposits in accordance with Clause 5, Article 8 of Decree No. 19/2015/NĐ-CP and other legal regulatory documents replacing, amending, or supplementing.transfermining activities and other relevant legal documents replacing or amending, supplementing (if any);

b) The depositor must submit a plan to withdraw the deposit to the recipient three (03) months prior to the date when the recipient is required to refund the deposit according to Clause 5, Article 8 of Government Decree No. 19/2015/NĐ-CP and other relevant legal documents replacing or amending these regulations. MANAGEMENT AND USE OF DEPOSITS AT THE ENVIRONMENT PROTECTION FUND (if applicable).

Chapter III

RESPONSIBILITIES OF THE AUTHORITIES

Article 8. Responsibilities of the Receiving Party for Deposit

1. Notify competent authorities approving remediation and environmental recovery plans or remediation and environmental recovery plans in cases where the depositing party does not fully replenish the deposit as required each time. MANAGEMENT AND USE OF DEPOSITS AT THE ENVIRONMENT PROTECTION FUND In case the depositor does not fully replenish the deposit as stipulated each time.

2. Urge the depositing party to fulfill the environmental remediation deposit according to the prescribed deadline; recommend competent authorities to issue decisions on fines for late deposit submission in accordance with current laws.

3.[3] Manage and use the deposit in accordance with the provisions of the law and this Circular. Quarterly (before the 25th day of the first month of each quarter) and annually (before March 31 of the following year), the receiving party shall submit reports to the People's Committee of the province or centrally governed city, the Ministry of Natural Resources and Environment regarding the management and use of the deposit as stipulated in the Appendix attached to this Circular.

a) Time for compiling report data: The starting point for collecting data is the first day of the reporting quarter or year; the end point for collecting data is the last day of the reporting quarter or year.

b) Methods of submitting reports shall be implemented through one of the following methods:

- Submit directly in paper form;

- Sending via postal service in paper form;

- Sending via email systems or specialized information reporting software systems;

- Other methods as prescribed by law.

4. Establish internal regulations on the management and use of deposits in accordance with this Circular and related laws.

5. Provide information and ad hoc reports on the management and use of the deposit upon request from competent authorities.

Article 9. Responsibilities of the Depositing Party

The depositing party shall implement the deposit and other tasks as prescribed in this Circular and relevant laws.

Article 10. Responsibilities of the Ministry of Finance

1. Take the lead and coordinate with the Ministry of Natural Resources and Environment and related units to amend and supplement regulations related to the management and use of deposits at Environmental Protection Funds as prescribed in this Circular (if applicable).

2. Coordinate with the Ministry of Natural Resources and Environment and related units to guide Environmental Protection Funds and related units to implement the provisions of this Circular.

Chapter IV

IMPLEMENTATION

Article 11. Transitional Provisions

For cases where the depositing party has already implemented the deposit before the effective date of Decree No. 19/2015/ND-CP dated February 14, 2015 of the Government detailing certain provisions of the Law on Environmental Protection:

1. From March 31, 2015 and earlier: the depositing party shall enjoy interest rates equivalent to the interest rate for demand deposits at commercial banks for the balance of the deposit as prescribed in Decision No. 71/2008/QD-TTg dated May 29, 2008 and Decision No. 18/2013/QD-TTg dated March 29, 2013 of the Prime Minister on environmental remediation and restoration and deposit for environmental remediation and restoration for mining activities.transfermining activities.

2. From April 1, 2015: the depositing party shall enjoy interest rates equivalent to the lending interest rate of the receiving party for the balance of the deposit as prescribed in Clause 4, Article 6 of this Circular.

Article 12. Implementation Provisions

1. This Circular takes effect 45 days from the date of issuance.

2. The Director of the Office of the Ministry of Finance, the Director of the Department of Financial Institutions and Financial Organizations, the Heads of related units under the Ministry of Finance, the Vietnam Environmental Protection Fund, local Environmental Protection Funds, and related organizations and individuals are responsible for implementing this Circular./. unit under the Ministry of Finance, the Vietnam Environmental Protection Fund, local environmental protection funds, and organizations and individuals related thereto are responsible for implementing this Circular./.

ANNEX

REPORT ON MANAGEMENT AND USE OF DEPOSIT FOR ENVIRONMENTAL REMEDIATION AND RESTORATION FOR MINING ACTIVITIES AT THE ENVIRONMENTAL PROTECTION FUND

Quarter...Year...

(Annexed to Circular No. 08/2017/TT-BTC dated January 24, 2017 of the Ministry of Finance) Finance)

1. Regarding deposit management

Unit of measurement: Million dong

2. Regarding Interest Rate on Deposit

(Report specific interest rates on deposit of the Fund during the reporting period)

3. On the use of deposit funds

Unit of measurement: Million dong