Joint Circular No. 68/2006/TTLT-BTC-BTP guiding the financial management mechanism for enforcement costs of civil execution

JOINT CIRCULAR

Guidelines for financial management mechanisms

regarding the budget for enforcement proceedings in civil execution

_______________

Pursuant to the Civil Execution Law dated January 14, 2004;

Pursuant to Decree No. 173/2004/NĐ-CP dated September 30, 2004 of the Government on procedures, enforcement, and administrative penalties in civil execution;

Pursuant to Decree No. 05/2005/NĐ-CP dated January 18, 2005 of the Government on auctioning assets;

Pursuant to Decree No. 77/2003/NĐ-CP dated July 1, 2003 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 62/2003/NĐ-CP dated June 6, 2003 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Justice;

The Ministry of Finance and the Ministry of Justice jointly issue guidelines on the financial management mechanism for the budget for enforcement proceedings in civil execution as follows:

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

1. Object and scope of application: This Circular provides guidance on the financial management mechanism for the budget for enforcement proceedings in civil execution organized by civil execution agencies.

2. Enforcement costs shall be paid by the person subject to execution or the person entitled to execution according to Clause 1 and Clause 2, Article 28 of Decree No. 173/2004/NĐ-CP dated September 30, 2004 of the Government, except where exemptions or reductions are granted as provided. The state budget shall ensure enforcement costs according to Clause 3, Article 28 of the aforementioned Decree.

3. In cases where the persons liable for enforcement costs have not yet paid such costs to the civil execution agency, the civil execution agency may temporarily allocate funds from its annual budget to carry out enforcement proceedings. The civil execution agency is responsible for recovering and repaying the temporarily allocated enforcement cost funds.

4. Civil execution agencies must manage, utilize, and settle accounts for the enforcement cost budget in accordance with current regulations and the provisions of this Circular.

II. SPECIFIC PROVISIONS

1. Contents of enforcement costs:

a) Costs for asset seizure:

- Allowance for the Enforcement Committee: Meeting to discuss enforcement proceedings, directly organizing enforcement proceedings.

- Protection costs: Costs for those directly involved in protection (enforcement officers, security guards, medical staff, enforcement officials, prosecutors, self-defense militia members, local government representatives, social organization representatives, etc.); fuel costs, rental fees for vehicles, protective equipment, and necessary medical equipment for enforcement proceedings.

- Fire prevention and explosion control costs (if applicable): Rental fees for fire trucks, rental fees for fire prevention and extinguishing equipment; rental fees for mine detection, bomb disposal, and other necessary fire prevention and explosion control equipment.

- Construction costs: Labor costs, materials, construction machinery, and other necessary costs for constructing barriers.

- Surveying and map extraction costs in cases where land boundaries are unclear to facilitate enforcement proceedings.

b) Costs for asset valuation, revaluation, and auction sales:

- Valuation and revaluation costs:

+ Costs for members of the Valuation Committee meeting to value assets.

+ Asset appraisal costs (if applicable).

- Auction sale costs:

+ Rental fees for venues and equipment for organizing auctions, publicizing auction notices when the civil execution agency directly organizes the auction sale to enforce the judgment.

+ Auction sale fees and actual, reasonable costs for the auction sale when the civil execution agency authorizes an organization to conduct the auction sale.

c) Costs for renting, guarding, and preserving assets; costs for loading, unloading, and transporting assets.

d) Costs for notifying enforcement proceedings: Costs for publicizing enforcement proceedings through mass media (television, radio, press); costs for those responsible for participating in the notification of enforcement proceedings (enforcement officials, local government representatives, social organization representatives, and other participants).

đ) Other necessary costs (if applicable).

2. Levels of enforcement costs:

a) Costs for members participating in meetings to discuss enforcement proceedings, members of the Valuation Committee meeting to value and revalue assets: A level of 25,000 VND per person per session.

b) Allowances for those directly involved in enforcement proceedings shall be implemented according to the Prime Minister's regulations.

c) Costs: Rental fees for protective equipment, fire prevention and explosion control costs, venue and equipment rental fees for organizing auctions, auction sale fees, rental fees for guarding and preserving assets, costs for loading, unloading, and transporting assets, and other related costs for enforcement proceedings shall be implemented based on contracts, settlement of contracts, invoices, and legitimate and valid expense receipts according to regulations and approved by the head of the civil execution agency.

3. Sources of enforcement cost funding:

a) The person subject to execution shall bear enforcement costs including the contents and levels of costs specified in Clause 1 and Clause 2, Section II of this Circular. If the judgment clearly states that the person entitled to execution must bear part or all of the construction costs, the person subject to execution shall not bear these construction costs.

b) The person entitled to execution shall bear enforcement costs including:

- Revaluation costs of assets as stipulated in the first bullet point under Point b, Clause 1, Section II of this Circular if the person entitled to execution requests a revaluation, except in cases of revaluation as provided in Point a and Point c, Clause 5, Article 43 of the Civil Execution Law.

- Part or all of the construction costs as stipulated in the fourth bullet point under Point a, Clause 1, Section II of this Circular if the judgment or decision determines that the person entitled to execution must bear the construction costs.

The person subject to execution and the person entitled to execution may be exempted or reduced from enforcement costs according to Clause 5, Article 28 of Decree No. 173/2004/NĐ-CP dated September 30, 2004 of the Government on procedures, enforcement, and administrative penalties in civil execution.

Before organizing enforcement proceedings, the enforcement officer must notify the parties of the projected enforcement costs.

c) The state budget ensures the costs for enforcement proceedings, including:

- The contents of expenditure as stipulated in point đ, Clause 1, Section II of this Circular.

- The cost of re-evaluating assets as stipulated in the first item of point b, Clause 1, Section II of this Circular if there is evidence to determine a violation of the valuation procedure as prescribed in Clause 1, Article 24 of Decree No. 173/2004/NĐ-CP dated September 30, 2004 of the Government.

- Costs incurred during the enforcement process but had to be temporarily suspended due to objective reasons (natural disasters, fires...), or at the decision of the competent state agency to postpone the enforcement according to Clause 2, Article 26 of the Civil Enforcement Ordinance, suspend or temporarily halt the execution of the judgment.

- All costs of enforcement and asset valuation expenses that have been carried out if the competent state agency cancels the entire enforcement process.

- The enforcement costs that the person subject to enforcement or the person entitled to enforcement are exempted or reduced according to point a, Clause 1, Article 30 of Decree No. 173/2004/NĐ-CP dated September 30, 2004 of the Government.

Any person who is at fault in violating the procedures for asset valuation or incorrectly deciding to exempt or reduce enforcement costs as prescribed shall be responsible for compensating the state budget for such costs according to the Civil Servants Ordinance.

4. Regarding the advance payment of enforcement costs when not yet collected from the parties involved:

a) Advance payment of enforcement organization costs:

- Enforcement costs paid by the person subject to enforcement, the person entitled to enforcement, or deducted from the proceeds of auctioning seized assets, or deducted from the assets of the person subject to enforcement currently held, rented, borrowed, lent, or repaired by others.

While enforcement costs have not yet been collected from the person subject to enforcement or the person entitled to enforcement, the civil enforcement agency shall pre-finance the enforcement costs for the enforcers from the budget allocated by the competent authority to carry out enforcement activities.

- To ensure the civil enforcement agency has funds for advance payment of enforcement costs, the state budget allocates a certain amount of funds within the agency's annual budget. The specific allocation for each civil enforcement agency is assigned by the Ministry of Justice after consultation with the Ministry of Finance within the approved annual budget.

b) Procedures for enforcers to make advance payments and repay advance payments for enforcement organization support costs:

- Advance payment of enforcement costs:

Before organizing enforcement, the enforcer must prepare and submit a plan for enforcement to the head of the civil enforcement agency for approval, which includes: time, participating forces (number of people, composition), enforcement plan, and budget for enforcement services.

The budget for enforcement services is prepared based on the expenditure items and rates specified in Clauses 1 and 2, Section II of this Circular and the current financial expenditure regulations, while informing the parties in advance of the enforcement date.

Based on the approved enforcement plan, the enforcer processes the advance payment of funds for enforcement activities from the state budget allocated to the civil enforcement agency.

- Repayment of advance payment of enforcement costs:

When disposing of assets or collecting money from the person subject to enforcement or the person entitled to enforcement, the enforcer must immediately process the repayment of previously advanced enforcement costs to the agency.

The civil enforcement agency is responsible for monitoring and urging those liable for enforcement costs to recover the advance payments. At the end of each quarter and year, the agency compiles and reports on the use of advance payment funds for enforcement (amounts advanced, amounts recovered, amounts not recovered, reasons for non-recovery...) to the superior management agency. The Ministry of Justice compiles and sends these reports to the Ministry of Finance along with the annual budget settlement report.

5. Preparation, implementation, and settlement of enforcement cost budgets:

The preparation, implementation, and settlement of enforcement cost budgets are tasks under the state budget and are carried out according to the provisions of the State Budget Law and guiding documents. This Circular provides additional guidance on the following points:

a) Establishment of budget estimates:

- For the first year of implementation: Based on the necessary budget for advance payment of enforcement costs prepared by the civil enforcement agency, the Ministry of Justice consolidates it into the annual state budget of the Ministry according to the State Budget Law and submits it to the Ministry of Finance for consolidation into the state budget for submission to the Prime Minister for approval by the National Assembly.

- For subsequent years: The civil enforcement agency only prepares a budget for advance payment of enforcement costs in cases of provincial or district division or other special cases requiring an increase or decrease in initial advance payments, which are then consolidated into the annual state budget according to regulations.

b) Implementation and settlement:

- Budget allocation: Based on the enforcement costs already allocated in the annual budget, the Ministry of Justice allocates and assigns state budget funds for advance payment of enforcement costs to civil enforcement agencies within the non-autonomous budget, detailed according to the expenditure categories after obtaining the approval of the Ministry of Finance.

- Budget adjustment: In cases where it is deemed necessary to adjust the budget for advance payment of enforcement costs for civil enforcement agencies that have been assigned, the Ministry of Justice decides to reallocate the budget between agencies within the scope of the advance payment enforcement costs allocated by the state budget after obtaining a unified document from the Ministry of Finance.

- Funds allocated for advance payment of enforcement costs can be transferred to the next year for continued use.

- Settlement of enforcement cost budgets is carried out according to current regulations.

III. IMPLEMENTATION PROVISIONS

This Circular shall take effect fifteen days after its publication in the Official Gazette and shall replace Section I of the Joint Circular No. 15/2002/TTLT-BTC-BTP dated February 8, 2002, jointly issued by the Ministry of Finance and the Ministry of Justice on "Guidelines for the Financial Management Mechanism for Enforcement Costs of Civil Execution, and Funds Left for People's Committees at Commune and Ward Level to Participate in Execution Work that Have Been Collected and Deposited into the State Budget."

For enforcement costs temporarily advanced by civil execution agencies from the revenue of execution activities that must be deposited into the state budget, such agencies shall be responsible for recovering and depositing them into the state budget in accordance with the regulations.

Any difficulties encountered during implementation should be reported by units to the Ministry of Finance and the Ministry of Justice for study and resolution./.