Circular No. 65-TC/TCĐN guiding the payment to domestic economic organizations having export goods or service revenue for offsetting foreign debts of the State

CIRCULAR

NUMBER 65/TC-TCT OF NOVEMBER 13, 1991 ISSUED BY THE MINISTRY OF FINANCE GUIDING
THE PAYMENT FOR DOMESTIC ECONOMIC ORGANIZATIONS WITH EXPORT GOODS OR SERVICE REVENUE TO OFFSET FOREIGN DEBTS OF THE STATE
HAVING EXPORT ITEMS OR FOREIGN CURRENCY SERVICE REVENUE FOR SETTING OFF DEBTS
OF THE STATE

I. GENERAL PROVISIONS

1. The Ministry of Finance shall only pay Vietnamese currency to units with export goods or service revenue to offset foreign debts that have registered with the Ministry of Finance and been approved in writing by the Ministry of Finance to implement based on the annual foreign debt repayment limit approved by the National Assembly and the Council of Ministers.

2. The exchange rate for payment shall be the rate agreed upon by the Ministry of Finance with the unit having export goods or service revenue to offset foreign debts for the State, based on consulting the opinion of the State's Foreign Exchange Management Committee.

3. Payment for goods shall be made directly by the Ministry of Finance to the unit exporting goods or providing services to offset foreign debts for the State.

II- SPECIFIC PROVISIONS

1\. In the case of debt repayment with physical goods (the agreement stipulates borrowing physical goods to repay with physical goods).

In this case, the method applied in the export repayment is the bidding method.

All units permitted to export directly (regardless of whether they are state-owned or not) are entitled to participate in the bidding.

Within thirty days from the date the Ministry of Finance announces the bidding conditions, units with needs must register with the Ministry of Finance their bid levels. The Ministry of Finance will prioritize units registering the lowest exchange rate bids. The unit winning the bid (successful bidder) will have to sign a specific contract with the Ministry of Finance regarding the organization and implementation of export delivery to repay foreign debts for the State.

2\. In the case of exporting goods or providing services to collect foreign currency to offset foreign debts to the State.

Annually, based on the plan assigned by the State, units proceed to register with the Ministry of Finance about their ability to export goods or provide services to offset foreign debts for the State.

The registration content must clearly record: quantity of exported goods, export time, value of foreign currency received, proposed exchange rate for payment... so that the Ministry of Finance can proactively arrange within the foreign debt repayment plan.

On this basis, the Ministry of Finance will proactively discuss with relevant Ministries to unify policies and implementation measures and will notify in writing for units to implement.

3\. Payment procedures for goods.

Units exporting goods or providing services to offset State debts as stipulated in points (1) and (2) above when coming to the Ministry of Finance to settle payment for goods must ensure the following conditions:

- Notification from the Ministry of Finance accepting the unit's permission to export goods or provide services to offset foreign debts for the State.

- A set of foreign payment documents for each shipment of exported goods confirmed by the bank indicating that the foreign country has deducted the debt for the State or has processed payment with the foreign country to deduct the debt for the State.

For units providing services, there must also be a confirmation letter from the service recipient (Embassy, foreign representative agency, etc.).

After reviewing the payment documents of the unit (payment request file), the Ministry of Finance will proceed to pay Vietnamese Dong as follows:

- Pay 100% of the value of the goods immediately under the condition that the export volume or service value of the unit is clearly confirmed by the bank as "fully deducted by the foreign bank for our State for the entire value of the consignment."

- Pay 90% of the value of the goods under the condition that the bank has only confirmed "processed payment with the foreign country to deduct the State's debt."

The remaining 10% will be paid by the Ministry of Finance to the unit once the unit presents a confirmation letter from the bank stating that the foreign bank has fully deducted the debt for our State for the entire value of the consignment.

4\. Provisions on penalties.

4.1. If the basic unit has been approved by the Ministry of Finance to export goods or provide services to repay foreign debts for the State, but:

- Does not fulfill the obligation to deliver goods.

- Does not fully fulfill the obligation to deliver goods.

- Delivers goods of poor quality resulting in complaints from abroad.

- Delivers goods late according to the contract signed with the foreign party and is penalized by the foreign party.

- etc..

then the entire loss incurred will be borne by the basic unit. The Ministry of Finance will coordinate with banking agencies to take necessary measures to recover the losses caused by the unit.

4.2. Within thirty days from the date the unit submits the payment file to the Ministry of Finance (provided that this file is confirmed by the Ministry of Finance as complete and valid), if the Ministry of Finance has not paid, then starting from day thirty-one, the Ministry of Finance must pay additional interest on the delayed amount at the lending rate specified by the State Bank.

5\. In the case of debt repayment using income from labor cooperation and experts, specific regulations will be provided in a separate document.

III\. REPORT ON IMPLEMENTATION

- After receiving the foreign debt repayment quota from the Ministry of Finance, the unit negotiates with the foreign party to sign a delivery export contract or service provision contract. This contract is sent to the Ministry of Finance (Department of Foreign Financial Affairs and Foreign Currency Management) for one copy to monitor the export process and payment along with the contract signed with the Ministry of Finance for the implementation of export delivery to repay foreign debts.

- Quarterly, the unit sends a report to the Ministry of Finance on the situation of implementing exports or service provision to offset foreign debts for the State.

- After completing each registration or contract signed with the Ministry of Finance regarding the delivery of export goods or service provision to offset foreign debts for the State, the unit director and chief accountant must organize contract settlement together with the Ministry of Finance.

IV. IMPLEMENTATION PROVISIONS

- This Circular takes effect from the date of signature, all previous provisions contrary to this Circular are abolished.

- During the implementation period, if any difficulties arise, please promptly report to the Ministry of Finance for resolution.