Joint Circular No. 76/2011/TTLT-BTC-BGTVT guides the establishment and management of prices for public goods products and services in the national railway management and maintenance sector implemented through ordering or allocating plans to use state budget funds.

JOINT CIRCULAR

Guidelines for establishing and managing prices of public goods and services in the field of management and maintenance of national railway lines carried out through procurement orders and allocation plans

the maintenance of the national railway is carried out through the method of placing orders,

allocate the plan for using state budget funds

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Pursuant to the Railway Law No. 35/2005/QH11 dated June 14, 2005;

Pursuant to Decree No.Decision No. 60/2003/NĐ-CPdated June 6, 2003, detailing and guiding the implementation of the State Budget Law;

Pursuant to Decree No.Decree No. 31/2005/NĐ-CPdated March 11, 2005, on the production and supply of public goods and services;

Pursuant to Decree No.Decree No. 170/2003/NĐ-CPdated December 25, 2003, detailing the implementation of certain provisions of the Price Ordinance;Decree No. 75/2008/NĐ-CPdated June 9, 2008, amending and supplementing certain articles of Decree No.Decree No. 170/2003/NĐ-CPdated December 25, 2003, detailing the implementation of certain provisions of the Price Ordinance;

Pursuant to Decree No.118/2008/NĐ-CPdated November 27, 2008, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No.Decree No. 51/2008/NĐ-CPdated April 22, 2008, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Transport;

The Prime Minister issues this Decision amending and supplementing certain Articles of Decision No.Decision No. 1082/QĐ-TTgdated July 14, 2010, and Decision No.1386/QĐ-TTgdated August 9, 2010, of the Prime Minister regarding changes to the authority to determine prices of public goods in the fields of management and maintenance of national railways, roads, and inland waterways carried out through procurement orders and allocation plans;

The Ministry of Finance and the Ministry of Transport issue guidelines on establishing and managing prices of public goods and services in the field of management and maintenance of national railways carried out through procurement orders and allocation plans using state budget funds as follows:

PART I

GENERAL PROVISIONS

Article 1. Scope of application

These joint Circulars provide guidelines on establishing and managing prices of public goods and services in the field of management and maintenance of national railways carried out through procurement orders or allocation plans using state budget funds as stipulated in Decree No. 31/2005/NĐ-CP dated March 11, 2005, on the production and supply of public goods and services.

Article 2. Applicability

These joint Circulars apply to enterprises, organizations, and individuals (hereinafter referred to collectively as units) providing public goods and services in the field of management and maintenance of national railways; economic agencies allocated funds from the state budget in the field of management and maintenance of national railways.

Article 3. Principles for determining prices

Prices of public goods and services in the field of management and maintenance of national railways shall be determined to ensure compensation for actual reasonable and legitimate costs to complete a unit volume of public goods and services specified in the management and maintenance of national railways; they must be consistent with procedures, regulations, and economic technical norms issued by competent state authorities and the technical condition of each project or specific work item; they must also be consistent with market conditions at the place of construction and the quantity and quality of products and services. Costs already covered by the state budget shall not be included in the price of products and services.

Chapter II

SPECIFIC PROVISIONS

Article 4. Structure and method for determining prices

1. The structure of prices for public goods and services in the field of management and maintenance of national railways used for procurement orders and allocation plans for units to implement according to the guidance in Appendix No. 01 attached to these joint Circulars includes:

- Raw material, fuel costs;

- Labor costs;

- Machinery, equipment, and vehicle costs;

- Other direct costs;

- Common costs;

- Pre-tax income;

- Value-added tax.

2. In cases where public goods and services in the field of management and maintenance of national railways require supervision consultancy, design consultancy, project preparation consultancy, or other consultancy services, the determination of these cost items shall be applied according to the regulations of the Ministry of Construction.

3. The method for determining prices of public goods and services in the field of management and maintenance of national railways shall be implemented according to the guidance in Appendix No. 02 issued together with these joint Circulars.

Article 5. Using economic technical norms

The establishment of prices for public goods and services in the national railway management and maintenance sector must utilize the economic and technical norms issued by competent authorities.

Article 6. Authority to decide prices

1. Prices of public goods and services in the field of management and maintenance of national railways carried out through state procurement orders or allocation plans using central government budget funds shall be stipulated by the Ministry of Transport or authorized by economic agencies allocated funds from the state budget, after obtaining written agreement from the Ministry of Finance.

2. If the Ministry of Transport delegates authority, it shall issue a specific assignment letter to relevant agencies and units to carry out pricing according to the regulations.

Article 7. Time for deciding prices

1. Pricing of public goods and services shall be carried out after the budget estimate has been approved by the competent authority.

2. The time limit for reviewing and deciding prices shall be implemented according to Clause 2, Article 10 of Decree No. 170/2003/NĐ-CP dated December 25, 2003, detailing the implementation of certain provisions of the Price Ordinance.

Article 8. Adjusting contract prices for ordered goods; levels of subsidies and support for production and supply of public goods and services

The adjustment of contract prices for ordered goods; levels of subsidies and support for production and supply of public goods and services through ordering methods and plan assignments shall be carried out in accordance with current laws.

Article 9. Monitoring compliance with price management regulations

1. The monitoring of compliance with price management regulations for public goods and services in the national railway management and maintenance sector shall be conducted in accordance with this Joint Circular and relevant current laws.

2. Entities that violate the provisions of this Joint Circular shall be subject to administrative penalties or criminal prosecution, and must compensate for damages if they occur, in accordance with the law, depending on the nature and severity of the violation.

3. Specific authority to impose penalties, procedures, and formalities for imposing penalties shall be carried out in accordance with the law on handling administrative violations.

Chapter III

IMPLEMENTATION

Article 10. Authorities and responsibilities of agencies and units

1. Ministry of Transport

a) Directing and guiding units and competent authorities to implement price management in accordance with this Joint Circular and related legal documents;

b) Issuing economic and technical norms within its authority; procedures and standards in the national railway management and maintenance sector as a basis for pricing;

c) Leading or coordinating with the Ministry of Finance and other relevant agencies to inspect the implementation of public goods and service prices in the national railway management and maintenance sector in accordance with this Joint Circular and other relevant legal provisions.

2. Ministry of Finance

a) Implement price management in accordance with this Joint Circular and related legal documents;

b) Annually allocate funds from the central budget to provide public goods and services in the national railway management and maintenance sector;

c) Coordinate with the Ministry of Transport and other relevant agencies to inspect the implementation of public goods prices in the national railway management and maintenance sector in accordance with this Joint Circular and other relevant legal provisions.

3. Units assigned orders or plans by the State

a) Calculate the prices of public goods and services in the national railway management and maintenance sector according to the ordering or plan assignment method based on the provisions of this Joint Circular.

b) Implement and take responsibility for providing public goods and services ensuring quality, quantity, and timely completion as stipulated.

c) Strictly comply with the provisions of this Joint Circular, price management regulations, and other relevant legal provisions.

Article 11. Implementation

1. This Joint Circular shall take effect 45 days from the date of signature. Previous regulations concerning price management for public goods and services in the national railway management and maintenance sector that conflict with the content of this Joint Circular are hereby abolished.

2. In case of difficulties during implementation, agencies and units are requested to report to the Ministry of Transport, which will take the lead and coordinate with the Ministry of Finance to examine and resolve them./.