Circular No. 80/1997/TT-BTC guides the management and use of funds collected from anti-smuggling activities.

CIRCULAR

GUIDELINES ON THE MANAGEMENT AND USE OF FUNDS COLLECTED FROM COMBATING SMUGGLING ISSUED BY THE MINISTRY OF FINANCE NUMBER 80/1997/TT-BTC ON NOVEMBER 7, 1997

Pursuant to Resolution No. 85/CP dated July 11, 1997 of the Government on the regular meeting of the Government in June 1997; Directive No. 853/1997/CT-TTg dated October 11, 1997 of the Prime Minister on combating smuggling under new circumstances; Circular No. 07-1997/TTLT/BTM-BNV-BTC-TCHQ dated October 21, 1997 of the Ministry of Trade, Ministry of Home Affairs, Ministry of Finance, and General Department of Customs on guiding the implementation of anti-smuggling measures and organizing coordinated forces for combating smuggling, the Ministry of Finance hereby issues guidelines on the management and use of fines and confiscated goods from smuggling as follows:

I. OBJECTS AND SCOPE OF APPLICATION

Article 1. Scope of Application:

All funds collected from administrative penalties for smuggling activities and the sale of confiscated imported contraband goods (hereinafter referred to as funds collected from combating smuggling) by competent authorities (including both central agencies and local units) must be centralized, managed, and used according to the guidelines set forth in this Circular.

2. The recipients eligible for rewards include:

Anti-smuggling forces (both central and local agencies) including tax, customs, border guard, home affairs, inspection, market management forces, and other forces assigned tasks to inspect and handle violations related to smuggling according to the law; organizations and individuals with outstanding achievements in anti-smuggling activities.

3. The sources of funds collected from combating smuggling include:

3.1. Fines paid by organizations and individuals who engage in smuggling based on decisions on administrative penalties or decisions on appeals made by competent authorities according to the Administrative Violations Handling Decree dated July 6, 1995 and its guiding documents.

3.2. Revenue from the sale of seized goods and means of transportation.

II. CENTRALIZATION OF REVENUES.

1. Principles for concentrating revenues:

Funds collected from combating smuggling shall be centralized into a temporary account opened at the State Treasury.

Revenues obtained from detection, arrest, and handling in a specific locality shall be centralized into that locality's temporary account.

For cases of combating smuggling on the sea within a specific locality's jurisdiction, funds collected from combating smuggling shall be deposited into that locality's temporary account. In case of disputes, the location where the smuggling goods were seized shall serve as the basis for resolution.

2. Opening of temporary accounts:

Provincial Departments of Finance and Prices shall open temporary accounts at the State Treasury to centralize revenues from combating smuggling collected by organizations directly responsible for inspection, detection, arrest, and handling; simultaneously, they shall settle expenses, allocate reward funds for combating smuggling, and distribute revenue according to the provisions in Section III below.

For cases of inspection, detection, arrest, and handling at locations far from the temporary account opening site, funds collected from combating smuggling shall be temporarily deposited into the district or county treasury. The district or county treasury has the responsibility to consolidate all such funds into the temporary account of the provincial finance department at the provincial treasury.

III. DISTRIBUTION AND USE OF FUNDS COLLECTED FROM ANTI-SMUGGLING ACTIVITIES

1. Basis for determining revenue from anti-smuggling activities for distribution and use:

Sources of revenue from combating smuggling are based on the following grounds:

- Decisions on handling by competent state authorities or court decisions without any appeal within the time frame stipulated by law.

- Amounts actually deposited into the temporary account at the State Treasury from combating smuggling.

2. Distribution of funds collected from anti-smuggling activities:

2.1. Funds collected from combating smuggling may be used to cover costs such as:

- Investigation, pursuit, verification, unloading, transportation, storage, testing, auctioning of seized goods and means of transportation, provided there are valid invoices and receipts.

The provincial finance department is responsible for reviewing and approving payments for anti-smuggling costs according to the prescribed regulations.

2.2. After deducting the costs mentioned in Point 2.1, thirty percent of the remaining amount shall be allocated as rewards for organizations and individuals with outstanding achievements in combating smuggling and supplementary funding for anti-smuggling operations by units tasked with the mission and which have made successful detections and handling.

2.3. The remaining amount shall be left for the budgets of provinces and centrally administered cities (referred to as provinces) to purchase anti-smuggling equipment for local forces and other purposes as guided below.

3. Use of funds collected from anti-smuggling activities:

3.1. Rewards and supplementary funding for anti-smuggling operations by units mentioned in Point 2.2 can only be used directly for inspection, supervision, and handling of anti-smuggling operations by agencies assigned tasks in their respective jurisdictions and organizations and individuals with outstanding achievements in coordinating anti-smuggling efforts.

Among which, distribution and usage are as follows:

- Twenty-five percent shall be used for bonuses and rewards for organizations and individuals with outstanding achievements in combating smuggling, additional costs for anti-smuggling operations such as publicity, summarization; compensation for officers from various forces injured during investigation and arrest while undergoing treatment; hospital fees for cases without medical insurance coverage.

The maximum individual reward per incident does not exceed 300,000 VND and monthly does not exceed 1,000,000 VND/person/month. In special cases, due to complex investigations, arrests, and handling of incidents requiring significant effort, the head of the unit eligible for rewards may decide on specific reward amounts for each incident.

- Sixty-five percent shall be reserved for purchasing supplementary anti-smuggling equipment for the unit (as stipulated in Point 5.2 below).

- Ten percent shall be submitted to the immediate superior level for rewarding coordinating units and funding publicity, training, mid-term reviews, and summaries. In cases where there is no superior agency, it can be retained by the unit to supplement funding for purchasing anti-smuggling equipment. In cases where an incident involves multiple departments of a locality, the head of the unit assigned the task shall be responsible for considering the allocation of rewards to those units based on the complexity of the incident and the degree of participation of each unit.

3.2. The amount left for the locality from the operation of combating smuggling shall be used according to the decision of the Chairman of the People's Committee of the province for the following objectives:

- Procuring anti-smuggling equipment for local forces.

- Covering related expenses: This amount is used to cover cases implemented by localities, additional expenses for anti-smuggling work such as expenses for propaganda, mid-term and final reviews of anti-smuggling activities at the local level.

- Providing additional support to districts and counties in organizing anti-smuggling efforts in key areas. In particular, in border areas, priority should be given to supporting border communes with funds to organize anti-smuggling activities.

- Balancing capital for infrastructure projects and social welfare, mainly allocating to border communes.

- Expenditure on procuring equipment for anti-smuggling forces and combating illegal business practices must comply with current financial management regulations.

- Expenditure on constructing social welfare projects and infrastructure facilities must comply with state regulations on basic construction management and capital investment construction disbursement and management.

3.3. When the competent authority decides to confiscate contraband goods and hand them over to the Finance Department for auction, the Finance Department shall temporarily advance payment for rewards and allowances to the units. The temporary advance shall not exceed 40% of the anticipated reward expenditure and supplementary funding for units tasked with anti-smuggling duties as stipulated in Point 2.2, Section III above. After the auction of confiscated contraband goods, the finance department shall refund the temporary advance.

IV. ACCOUNTING AND SETTLEMENT

Units entitled to rewards for anti-smuggling work must maintain books and vouchers, and account for the concentration and use of funds from anti-smuggling activities according to current financial management regulations.

At year-end, the unit must settle accounts for expenditures with the directly managing finance department along with the settlement of the unit's budget.

The Department of Finance and Prices shall be responsible for consolidating, settling accounts, and reporting to the Ministry of Finance on the management and use of funds from anti-smuggling activities within its jurisdiction.

For proceeds from the sale of confiscated contraband goods as specified in Point 3.2 when deposited into the State budget, they shall be recorded under the corresponding chapter, type 10, item 10, sub-item 052 of the current State Budget Classification.

V. IMPLEMENTATION

The Chairmen of People's Committees of provinces and cities shall direct finance departments and other relevant agencies within their jurisdictions, heads of units utilizing anti-smuggling revenue to manage and use anti-smuggling revenues in accordance with the provisions of this Circular.

This Circular takes effect from December 1, 1997, and replaces previous guiding documents of the Ministry of Finance regarding the management and use of funds from anti-smuggling activities.

Smuggling cases discovered and seized but not yet resolved as of December 1, 1997, shall be handled in accordance with the provisions of this Circular.

During implementation, if there are difficulties or obstacles, relevant sectors and levels shall promptly report to the Ministry of Finance for research and supplementary guidance.