Circular No. 76/2000/TT-BTC guides the implementation of Decision No. 219/1999/QD-TTg dated November 11, 1999 of the Prime Minister on policies to protect the rights and interests of local people where minerals are being exploited and processed, and to conserve unexploited mineral resources.

CIRCULAR

Guidelines for Implementing Decision No. 219/1999/QD-TTg dated November 11, 1999 of the Government on policies to protect the rights and interests of local residents where minerals are being extracted and processed and to conserve unexploited mineral resources

 

On November 11, 1999, the Government issued Decision No. 219/1999/QD-TTg on policies to protect the rights and interests of local residents where minerals are being extracted and processed and to conserve unexploited mineral resources. After receiving unified opinions from the Ministry of Planning and Investment, the Ministry of Industry, the Ministry of Agriculture and Rural Development, the Ministry of Labor, Invalids and Social Affairs, the Ministry of Construction, and the General Department of Land Administration, the Ministry of Finance hereby provides guidelines for implementation as follows:

I. OBJECTS AND SCOPE OF APPLICATION

1. The subjects to which the protective policies outlined in this Circular apply include organizations, households, and individuals residing and producing legally in areas with mineral deposits who must relocate their residence or production sites according to decisions made by competent state authorities to implement mineral extraction and processing activities or to protect unexploited mineral resources.

2. Organizations and individuals permitted to extract and process minerals shall be responsible for compensating losses to ensure the rights and interests of organizations, households, and individuals affected by such activities and required to relocate their residence or production sites as guided by this Circular.

3. The State shall protect the rights and interests of organizations, households, and individuals in areas where minerals are being extracted and processed or where unexploited mineral resources need protection through investment policies aimed at developing economic and social infrastructure, ensuring stable living conditions and production. The State guarantees funding for implementing plans to protect unexploited mineral resources.

II. IMPLEMENTATION OF PROTECTIVE POLICIES

1. Organizations and individuals permitted to extract and process minerals shall be responsible for:

1.1. Compensating losses related to land and property attached to land of organizations, households, and individuals who must relocate their residence or production sites due to mineral extraction and processing activities in accordance with current regulations of the State.

1.2. Providing support to stabilize the livelihood and production of organizations, households, and individuals who must relocate their residence or production sites due to mineral extraction and processing activities, specifically as follows:

- Providing subsistence and production stabilization allowances for people who must move their residences within a six-month period, calculated as 30 kilograms of rice per capita per month based on the average market price in the locality at the time of compensation;

- Providing unemployment benefits for workers of production and business establishments (excluding short-term or project-based contract workers) during the period of cessation of production and business operations for relocation purposes, but not exceeding one year; the amount of benefit is equivalent to the salary level corresponding to the rank or grade of each employee entitled to the benefit or as stipulated in their labor contracts;

- Supporting training costs for agricultural workers who must change professions, at specific levels set by the Provincial People's Committee and transferred either directly to the workers or to vocational training organizations;

- Providing relocation assistance ranging from VND 1,000,000 to VND 3,000,000 for each household relocating within the province or centrally-administered city; if relocating to another province, the compensation ranges from VND 3,000,000 to VND 5,000,000; the specific amount is determined by the Provincial People's Committee or the centrally-administered city committee; this relocation support does not apply to individuals already receiving relocation allowance under new economic zone development programs;

- Paying relocation expenses for movable buildings, structures, fixed assets, and other production materials moved to new locations for production and business establishments that must relocate;

- Paying relocation expenses for movable buildings, structures, and other public assets for state agencies, political-social organizations, public service units, and civilian armed forces that must relocate to new locations; the expense level is determined by the relocating unit and submitted to the Provincial Department of Finance for approval by the Chairman of the Provincial People's Committee;

- Providing rental housing subsidies for households and individuals who must relocate but have not yet received new housing and must temporarily rent housing while waiting; the subsidy level is specified by the Provincial People's Committee in the compensation plan and must be publicly announced.

1.3. Paying compensation fees for infrastructure facilities in areas where land is reclaimed to the local budget; the compensation for damage to infrastructure facilities is equal to the value of newly constructed facilities with equivalent technical standards to those in the reclaimed area. Special cases are decided by the Prime Minister or the Chairman of the Provincial People's Committee.

Infrastructure works (roads, power stations, pumping stations, water supply and drainage systems, electricity networks) located within the project area and not destroyed and still serving local needs are not subject to compensation.

1.4. Supporting the construction of infrastructure facilities in resettlement areas in accordance with Clause 3, Article 31 of Decree No. 22/1998/ND-CP dated April 24, 1998 of the Government; the specific level of support is determined by the Provincial People's Committee based on agreements with organizations and individuals permitted to extract and process minerals.

1.5. Prioritizing the recruitment of labor from the population affected by mineral extraction and processing activities for their own mineral-related activities. from communities that must relocate due to the impact of mineral extraction and processing activities.

2. Organizations, households, and individuals legally using land in areas with unexploited mineral resources that must relocate their residence or production sites shall be allocated or leased land in accordance with Decree No. 04/2000/NĐ-CP dated February 11, 2000 of the Government on the Implementation of the Law Amending and Supplementing Certain Articles of the Land Law, Decree No. 22/1998/NĐ-CP mentioned above, and other relevant legal documents supplementing, amending, and guiding the implementation of these two decrees.

3. Production and business establishments that must relocate to new production and business sites shall be treated as newly established entities and shall enjoy preferential investment incentives as follows:

- Domestic production and business establishments shall enjoy investment incentives as prescribed in Decree No. 51/1999/NĐ-CP dated July 8, 1999, guiding the implementation of the Law on Encouraging Domestic Investment.

Within ten days from stabilizing their production and business operations, such establishments must submit registration files for investment incentives along with the decision to relocate in order to implement projects for exploiting, processing, and protecting unexploited mineral resources, as required by the competent authority.

Within twenty days from the date when the Department of Planning and Investment or the People's Committee of the district receives complete valid files, the Chairman of the Provincial People's Committee shall issue a certificate of investment incentive benefits similar to those granted to newly established enterprises upon the proposal of the Department of Planning and Investment or the People's Committee of the district. In cases where the enterprise falls under the licensing authority of the Ministry of Planning and Investment, within thirty days from receiving complete valid files, the Ministry of Planning and Investment shall issue a certificate of investment incentive benefits.

The procedures, forms, and processes for registering tax exemptions and reductions shall be carried out in accordance with Circular No. 146/1999/TT-BTC dated December 17, 1999, issued by the Ministry of Finance, guiding the implementation of tax exemptions and reductions as prescribed in Decree No. 51/1999/NĐ-CP dated July 8, 1999, of the Government.

- Foreign-invested enterprises shall enjoy investment incentives as prescribed in Point 3, Article 3, of Decree No. 22/1998/NĐ-CP dated April 24, 1998, of the Government.

4. In cases where relocation to another province is necessary, apart from being protected according to Decision No. 219/1999/QĐ-TTg dated November 11, 1999, of the Prime Minister, the people’s group must also be entitled to preferential policies regarding settlement and new economic zone development if they meet the conditions.. Specifically, the period during which assistance for stabilizing life and production as stipulated in Point 1.2, Clause 1, Part II, of this Circular is one year.

5. The Chairman of the Provincial People's Committee shall decide based on local circumstances:

- Financial support for households whose members are currently receiving social welfare benefits from the State and who need to move due to land expropriation; the minimum level of support is 1,000,000 VND;

- Rewards for organizations, households, and individuals who are land users and are relocated according to the plan of the Land Compensation and Relocation Committee. Specific reward levels are determined by the Chairman of the Provincial People's Committee.

6. The Provincial People's Committee directly organizes the implementation of compensation and payment according to the guidance provided in Points 1.1, 1.2, and 1.3, Clause 1, Part II, of this Circular for organizations, households, and individuals mentioned in Clause 2, Part II, of this Circular. All compensation funds are sourced from the provincial budget. Organizations and individuals permitted to exploit and process minerals within the area directly compensated and cleared by the Provincial People's Committee must pay the compensation to the provincial budget as stipulated in Point 8, Article 34, Decree No. 22/1998/NĐ-CP dated April 24, 1998, of the Government.

7. Local authorities at all levels must prioritize the recruitment of labor from the population affected by mineral exploitation and processing activities or those required to relocate to protect unexploited mineral resources, into activities according to the investment plans for economic development, stabilization of life and production, and protection of unexploited mineral resources as stipulated in Article 2, Decision No. 219/1999/QĐ-TTg dated November 11, 1999, of the Prime Minister.

III. USE OF REVENUES FROM MINERAL ACTIVITIESTO PROTECT THE RIGHTS AND INTERESTS OF LOCAL CITIZENS AND TO PROTECT UNEXPLOITED MINERAL RESOURCES

1. The provincial budget revenue forecast from mineral activities is established as follows:

1.1. When preparing the annual tax revenue forecast, the provincial Tax Service in areas with mineral activities or unexploited mineral resources that require protection must prepare forecasts of revenue from mineral activities within the province by type of tax and fee and send them to the provincial Department of Finance and Price:

- Rent for land and water surfaces for businesses engaged in mineral extraction and processing;

- Fees for issuing mineral activity permits as prescribed in Clause 2, Article 9, Decree No. 68/CP dated November 1, 1996, of the Government;

- Penalties for administrative violations in the mineral sector as prescribed in Decree No. 35/CP dated April 23, 1997, of the Government;

- Mineral resource tax;

- Other revenues from mineral activities as prescribed by law.

1.2. Based on the tax revenue forecast from the Tax Service and the guidance provided in Circular No. 103/1998/TT-BTC dated July 18, 1998, issued by the Ministry of Finance, guiding the division, preparation, execution, and settlement of the state budget, the provincial Department of Finance and Price shall be responsible for preparing the revenue forecast from mineral activities that the provincial budget will benefit from;

- Preparing additional revenue forecasts from the central budget: In cases where the provincial budget does not have revenue from mineral activities (or the revenue is insufficient to cover expenditures) but there are unexploited mineral resources within the province that need protection, when preparing the annual provincial budget, based on approved mineral protection plans, additional revenue forecasts from the central budget should be prepared;

Revenue from mineral activities that the provincial budget benefits from does not include revenues from oil and gas activities and natural water sources (except mineral water and hot springs), mineral resource taxes on natural forest products, hydroelectric power, and marine and freshwater fisheries.

2. The use of revenues from mineral activities to ensure policies protecting the rights and interests of local citizens where minerals are extracted, processed, and protected from unexploited mineral resources shall be implemented as follows:

2.1. Budget estimates for expenses under plans to protect the rights and interests of local citizens where minerals are extracted, processed, and to protect unexploited mineral resources include the following contents:

2.1.1. Budget estimates for investment in economic and social development in areas where minerals are extracted and processed:

- Expenditure for new construction or upgrading and repairing infrastructure projects in residential areas such as water supply and drainage systems, local transportation roads, bridges and culverts, power grid, telephone network;

- Expenditure for new construction or upgrading and repairing educational, healthcare, and social welfare facilities in the locality such as schools, medical examination and treatment facilities, vocational training centers;

- Expenditure for new construction or upgrading and repairing economic and commercial development projects such as markets, docks, communal centers, shopping centers, irrigation works serving agricultural and forestry production;

- Expenditure for planning and development programs for industrial exploitation, processing, utilization, and trading of minerals in the locality, urban and rural development planning;

The budget estimate for economic and social development investment expenditure is included in the annual provincial budget estimate for economic development investment expenditure.

2.1.2. Budget estimate for expenditure to protect and stabilize the livelihood and production of organizations and parts of the population where mineral extraction and processing require relocation from their place of residence and production:

- Prioritize investment in infrastructure at the new location; in addition to compensation costs for infrastructure and infrastructure construction support levels specified in Article 31 of Decree No. 22/1998/NĐ-CP dated April 24, 1998 of the Government and detailed in points 1.3, 1.4, Clause 1, Part II of this Circular, investment in new infrastructure will also be sourced from provincial mineral activity revenue according to the guidance on economic and social development investment expenditure detailed in item 2.1.1, point 2.1, Clause 2, Part III of this Circular;

- Expenditure to restore and develop traditional trades linked to mineral exploitation industry policies and general socio-economic development policies of the province such as support expenditure for local traditional vocational training centers (purchase of equipment, payment for master craftsmen's teaching,...), expenditure for organizing competitions related to traditional products of the locality;

- Expenditure to maintain and develop healthy customs and practices of the community that must relocate to a new place of residence;

- Expenditure for vocational training for agricultural workers who need to change professions; the level of expenditure must be balanced with the support for vocational training costs provided by organizations and individuals involved in mineral extraction and processing as stipulated in point 1.2, Clause 1, Part II of this Circular;

- Expenditure for land clearance and resettlement (land reclamation, paddy field construction), production support expenditure (seedlings, livestock);

The budget estimate for expenditure to protect and stabilize the livelihood of parts of the population that need to relocate is included in the budget estimate for funding social organizations and social-professional organizations and implementing social policies managed by the provincial level;

2.1.3. The budget estimate for protecting unexploited mineral resources includes measures and organizational work for protecting unexploited mineral resources decided by the Provincial People's Committee;

The budget estimate for approved mineral resource protection plans is included in the provincial budget estimate for security and social order maintenance expenditure;

2.2. The preparation of the budget estimate must be detailed according to the items of the State Budget Classification System issued together with Decision No. 280/TC/QĐ/NSNN dated April 15, 1997 of the Ministry of Finance, supplemented and amended according to Circular No. 156/1998/TT-BTC dated December 12, 1998 of the Ministry of Finance;

2.3. The procedures for preparing, implementing, and settling accounts for funds allocated to projects protecting the rights of local people where minerals are extracted and processed or to protect unexploited mineral resources, in addition to following the guidelines set out in Circular No. 103/1998/TT-BTC dated July 18, 1998 of the Ministry of Finance regarding the division, preparation, implementation, and settlement of the State Budget and relevant directives from ministries, sectors, and localities concerning cost standards, unit prices, and contents of expenditures, must also ensure the following requirements:

- The total annual budget estimate for protective and protective schemes already approved must be balanced from the annual revenue budget from mineral activities of the provincial budget as guided in point 1.2, Clause 1, Part III of this Circular;

- Additional revenue from the central budget may only be used for expenditures according to approved mineral resource protection schemes;

- Revenue from land and water rental fees from mineral extraction and processing enterprises, and mineral resource taxes can only be used for investment tasks, not for regular tasks;

3. For expenditure on basic construction projects according to approved plans, it is necessary to comply with the management procedures stipulated by current state regulations;

IV. IMPLEMENTATION

The implementation process and responsibilities of various sectors and People's Committees at all levels in organizing compensation for losses and land clearance for relocation of organizations, households, and individuals where minerals are extracted and processed or to protect unexploited mineral resources shall be carried out in accordance with the provisions of Decree No. 22/1998/NĐ-CP dated April 24, 1998 of the Government;

This Circular takes effect from the date the Prime Minister's Decision No. 219/1999/QĐ-TTg dated November 11, 1999 comes into effect. During implementation, if there are any difficulties, please report them immediately to the Ministry of Finance for timely research and amendment.