Circular No. 88/2011/TT-BTC guiding the financial mechanism for support from the state budget to implement the National Trade Promotion Program

CIRCULAR

Guidelines for the financial mechanism to support from the state budget for implementing the National Trade Promotion Program

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Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the Law on State Budget;

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

Based on Decision No. 72/2010/QĐ-TTg dated November 15, 2010 of the Government Chairman regarding the issuance of the Regulation on the construction, management, and implementation of the National Trade Promotion Program;

The Ministry of Finance issues guidelines for the financial mechanism to support from the state budget for implementing the National Trade Promotion Program 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.

Article 1. Scope of Regulation

These Circulars guide the preparation of budgets, allocation, utilization, and settlement of accounts for funds supporting from the state budget to implement the National Trade Promotion Program according to the provisions of the Regulation on the construction, management, and implementation of the National Trade Promotion Program issued together with Decision No. 72/2010/QĐ-TTg dated November 15, 2010 of the Government Chairman.

Article 2. Applicability

These Circulars apply to units responsible for implementing the program, units participating in the implementation of the program, program management agencies, and agencies providing funding support.

Article 3. Sources of state budget funds to support the implementation of the program

State budget funds to support the implementation of the National Trade Promotion Program shall be sourced from the annual budget allocated for the Trade Promotion - Investment - Tourism Program.

II. PROVISIONS ON CONTENT AND EXPENSE LIMITS

Article 4. General provisions on expenditure management

1. Expenditures must comply with current standards, norms, and expenditure regulations and the scope of funding support for the program's contents as stipulated in these Circulars.

2. For expenditures that must be conducted through bidding, the provisions of the Bidding Law and guiding documents thereof shall apply; Circular No. 63/2007/TT-BTC dated June 15, 2007 of the Ministry of Finance guiding the implementation of bidding for asset procurement to maintain the regular operation of state agencies using state budget funds; and Circular No. 131/2007/TT-BTC dated November 5, 2007 of the Ministry of Finance amending and supplementing Circular No. 63/2007/TT-BTC.

Article 5. Scope and level of funding support for the export-oriented trade promotion program

1. For the content "Trade information, market research, building databases for key export markets by commodity": Support 70% of the following expenses:

- Purchase costs for materials;

- Investigation, survey, and compilation costs for materials: cost norms apply according to Circular No. 58/2011/TT-BTC dated May 11, 2011 of the Ministry of Finance on the management, use, and settlement of statistical investigation funds;

- Publication and distribution costs.

The maximum level of support for the content stipulated in Clause 1 of Article 5 of this Circular shall not exceed 700,000 VND (seven hundred thousand dong) per enterprise registering and receiving information.

2. For the content "Promoting exports":

a) Promoting the image of industries and famous geographical indications of regions abroad: Support 70% of the costs under contracts for issuing on foreign mass media to introduce images and geographical indications.

b) Inviting representatives of foreign media to Vietnam to write articles, produce reports on radio, magazines, television, and the Internet to promote Vietnamese exports under full-package contracts: Support 70% of the completed communication product costs (broadcasted films, published articles...).

3. For the content "Hiring domestic and foreign experts to advise on product development, improve product quality, develop exports, and penetrate foreign markets":

a) Full-package contracts with consulting experts: Support 70% of the completed consulting product costs.

b) Organizing meetings and disseminating knowledge and advice to enterprises by domestic and foreign experts: Support 100% of the costs for renting conference halls, equipment, decoration, duplicating advisory materials, translation, transportation for experts.

The maximum level of support for the content stipulated in Point b of Clause 3 of Article 5 of this Circular shall not exceed 1,000,000 VND (one million dong) per participating enterprise.

4. For the content "Short-term training within and outside the country to enhance trade promotion skills": Support 50% for enterprises and cooperatives; Support 100% for government and non-governmental trade promotion organizations; including the following costs:

- Instructor fees, rental of classrooms, teaching equipment, learning materials for trainees: cost norms apply according to Circular No. 139/2010/TT-BTC dated September 21, 2010 of the Ministry of Finance on the preparation of budgets, management, and use of state budget funds for cadre training and capacity building;

- Or full-package course fees.

5. For the content "Organizing and participating in trade fairs":

a) Organizing and participating in trade fairs and exhibitions abroad: Support 100% of the following expenses:

- Renting space and designing, setting up booths;

- Common decoration of the Vietnamese area (including the national booth if applicable);

- Opening ceremony organization costs (if it is a Vietnamese-only fair): Invitation letters, reception, decoration, sound, lighting;

- Costs for organizing seminars and product demonstrations: rental hall and equipment costs;

- Travel expenses for staff organizing the program: cost norms apply according to Circular No. 91/2005/TT-BTC dated October 18, 2005 of the Ministry of Finance on travel expense allowances for civil servants and officials traveling abroad for short periods funded by the state budget.

The maximum level of support for the content stipulated in Point a of Clause 5 of Article 5 of this Circular shall not exceed 20,000,000 VND (two hundred million dong) per participating enterprise.

b) Organizing export-oriented trade fairs in Vietnam: Support 50% of the following costs (after deducting other income from fair activities):

- Renting space and designing, setting up booths;

- Service costs: electricity, water, sanitation, security, protection (if not included in venue and booth rental costs).

- Management costs of the exhibition organizer;

- Common decoration of the exhibition;

- Opening and closing ceremony organization: Invitation letters, reception, decoration, sound, lighting;

- Seminar organization costs: rental hall and equipment costs.

The maximum level of support for the content stipulated in Point b of Clause 5 of Article 5 of this Circular shall not exceed 6,000,000 VND (six million dong) per participating enterprise.

c) Promoting and inviting visitors when organizing trade fairs: Support 100% of the costs under contracts for issuing on mass media about introducing the trade fair (after deducting income from non-eligible participants such as foreign legal entities).

6. For the content "Organizing business delegations abroad": Support 100% of the following costs:

- Round-trip air tickets for units participating in the program;

- Organizing trade seminars: Renting conference halls, equipment, invitation letters, interpreters, materials.

- Administrative expenses for staff organizing the program: expenditure standards applied according to Circular No. 91/2005/TT-BTC dated October 18, 2005, issued by the Ministry of Finance.

The maximum support level for the content stipulated in Clause 6, Article 5 of this Circular shall not exceed 40,000,000 VND (forty million VND) per participating enterprise.

7. For the content "Organizing comprehensive promotional activities": Support 70% of the expenditures specified in the specific contract for the assignment work within the scope of the costs prescribed in Clause 5 and Clause 6 of Article 5 of this Circular with a ceiling on the amount of support corresponding to the respective ratio.

8. For the content "Organizing foreign business delegations to Vietnam for purchasing transactions": Support 100% of the following expenses:

- Expenses for receiving foreign business delegations: Expenditure standards applied according to Circular No. 01/2010/TT-BTC dated January 6, 2010, issued by the Ministry of Finance, which stipulates the expenditure system for receiving foreign guests working in Vietnam, organizing international conferences and seminars in Vietnam, and entertaining domestic guests.

- Administrative expenses for organizing staff: expenditure standards applied according to Circular No. 97/2010/TT-BTC dated July 6, 2010, issued by the Ministry of Finance, which stipulates the administrative expense system and the expenditure system for organizing conferences for state agencies and public service units.

The aforementioned expenses shall not exceed 0.5% of the value agreed upon with that business delegation.

9. For the content "Organizing international industry conferences in Vietnam": Support 100% of the following expenses:

Conference organization expenses: expenditure standards applied according to Circular No. 01/2010/TT-BTC dated January 6, 2010, issued by the Ministry of Finance, which stipulates the expenditure system for receiving foreign guests working in Vietnam, organizing international conferences and seminars in Vietnam, and entertaining domestic guests;

10. For the content "Promotional activities already implemented and effective in expanding export markets": Support 100% of the following expenses (if not participating in the national promotional program):

- Air tickets;

- Administrative expenses: expenditure standards applied according to Circular No. 91/2005/TT-BTC dated October 18, 2005, issued by the Ministry of Finance;

- Participation fees for trade fairs and exhibitions.

The maximum support level for the content stipulated in Clause 10, Article 5 of this Circular shall not exceed 200,000,000 VND (two hundred million VND) per enterprise.

The support applies to enterprises whose exported products have achieved effectiveness according to the criteria and list approved by the Ministry of Industry and Trade.

Article 6. Scope and level of financial support for domestic market promotion programs

1. For the content "Organizing consumer goods fairs or machinery and equipment fairs suitable for each locality to introduce Vietnamese enterprises' products to consumers": Support 50% of the following expenses:

- Renting space and designing, setting up booths;

- Service expenses: electricity, water, sanitation, security, protection (if not included in rental fees and booth fees);

- Management expenses;

- Common decoration of the exhibition;

- Opening and closing ceremony organization: Invitation letters, reception, decoration, sound, lighting;

- Seminar organization: Hall rental, equipment;

- Expenses for publishing information about the fair on mass media;

The maximum support level for the content stipulated in Clause 1, Article 6 of this Circular shall not exceed 6,000,000 VND (six million VND) per production and trading unit participating.

2. For the content "Organizing sales activities, implementing programs to bring Vietnamese goods to rural areas, industrial zones, urban areas through businesses operating in specific industries, cooperatives, cooperative organizations providing services in the area according to approved plans": Support 70% of the following expenses:

- Transportation costs;

- Rental fees for premises and design, construction of stalls;

- Service expenses: electricity, water, sanitation, security, protection;

- Common decoration of the sales activity area;

- Opening and closing ceremony organization: Invitation letters, reception, decoration, sound, lighting;

- Management and service personnel expenses;

- Expenses for publishing information about the sales activity on mass media.

The maximum support level for the content stipulated in Clause 2, Article 6 of this Circular shall not exceed 70,000,000 VND (seventy million VND) per sales event.

3. For the content "Domestic market research, survey, and development of important and essential product databases; researching and developing distribution systems and commercial infrastructure. Publications to disseminate research results, laws, customs, and shopping habits": Support 100% of the following expenses:

- Purchase costs for materials;

- Investigation, survey, and compilation costs for materials: cost norms apply according to Circular No. 58/2011/TT-BTC dated May 11, 2011 of the Ministry of Finance on the management, use, and settlement of statistical investigation funds;

- Publishing and distribution expenses;

The maximum support level for the content stipulated in Clause 3, Article 6 of this Circular shall not exceed 1,000,000 VND (one million VND) per enterprise registering and receiving information.

4. For the content "Raising public awareness about Vietnamese goods and services through media activities such as newspapers, online news, radio, television, publications, and other information dissemination methods": Support 100% of the expenses for producing and distributing media products on mass media.

The maximum support level for the content stipulated in Clause 4, Article 6 of this Circular shall not exceed 50,000,000 VND (fifty million VND) per promotional topic.

5. For the content "Supporting planning, management, and operation of commercial infrastructure": Support 50% of the expenses (if not funded by the state) related to planning, managing, and operating commercial infrastructure, purchasing research materials.

The maximum support level for the content stipulated in Clause 5, Article 6 of this Circular shall not exceed 175,000,000 VND (one hundred seventy-five million VND) per planning cluster or point.

6. For the content "Organizing domestic market promotion events: month of promotions, week of Vietnamese products, Vietnamese product program, new product introduction program, monthly, quarterly, and annual favorite Vietnamese product selection": Support 50% of the expenses specified in the implementation project contract, within the scope of the expenses prescribed in Clauses 1, 2, 3, and 4 of Article 6 of this Circular, with a cap on the amount of support corresponding to the respective ratio.

7. For the content "Short-term training on business skills, retail network organization; supporting participation in short-term specialized training courses for businesses operating in specific industries; developing domestic market skills for leading units; cooperating with organizations and individuals to research and develop domestic market programs": Support 100% of the expenses:

- Instructor fees, rental of classrooms, teaching equipment, and materials for participants: cost standards applied according to Circular No. 139/2010/TT-BTC dated September 21, 2010, of the Ministry of Finance.

- Or full-package course fees.

Article 7. Scope and level of financial support for mountainous, border, and island area trade promotion programs:

1. For the content "Developing distribution systems for Vietnamese goods from production areas to mountainous regions, border areas, remote areas, ethnic minority regions, and islands" and the content "Organizing and developing sales activities for Vietnamese goods in border areas with neighboring countries": Support 100% of the costs:

a) Sales organization costs:

- Costs for obtaining permits from local authorities (organized in foreign border provinces);

- Sales organization costs: renting space, design, booth setup, electricity, water, security, sanitation;

- Costs for publicizing the sales program and goods distribution system through mass media.

The maximum support level for the content stipulated in Point a Clause 1 Article 7 of this Circular shall not exceed 100,000,000 VND (one hundred million dong) per sales event.

b) Actual administrative fees paid to licensing authorities to establish representative offices in foreign provinces sharing borders with Vietnam.

2. For the content "Building and providing market information for border areas and ports of Vietnam and neighboring countries": Support 100% of the costs:

- Purchase costs for materials;

- Investigation, survey, and compilation costs for materials: cost norms apply according to Circular No. 58/2011/TT-BTC dated May 11, 2011 of the Ministry of Finance on the management, use, and settlement of statistical investigation funds;

- Publication and distribution costs

The maximum support level for the content stipulated in Clause 2 Article 7 of this Circular shall not exceed 1,000,000 VND (one million dong) per enterprise registering and receiving information.

3. For the content "Organizing transportation and logistics services for export goods through border ports": Support 100% of the costs for project investment planning, design, administrative procedures, and approval processes to build transport terminals, cargo handling facilities, and infrastructure systems serving exports at border port areas.

The maximum support level for the content stipulated in Clause 3 Article 7 of this Circular shall not exceed 350,000,000 VND (three hundred fifty million dong) per planned cluster or point.

4. For the content "Organizing commercial transactions and bringing goods into Border Economic Zones": Support 100% of the costs for organizing transactions: renting conference halls, equipment, decoration, reception, materials, and translation services.

The maximum support level for the content stipulated in Clause 4 Article 7 of this Circular shall not exceed 1,000,000 VND (one million dong) per participating enterprise.

5. For the content "Activities to enhance capabilities for traders involved in cross-border exports and traders in mountainous, border, remote, ethnic minority, and island regions": Support 100% of the costs:

- Investigation, survey, and compilation costs: cost standards applied according to Circular No. 58/2011/TT-BTC dated May 11, 2011, of the Ministry of Finance, which regulates the management, use, and settlement of funds for statistical surveys;

- Publication and distribution costs for handbooks, guides, and special topics related to border and mountainous region trade development and island areas;

- Training and capacity-building costs for staff, cooperative leaders, and traders in border, mountainous, and island regions regarding market management, border economic zone operations, product sales, and implementation of government policies: cost standards applied according to Circular No. 139/2010/TT-BTC dated September 21, 2010, of the Ministry of Finance.

The maximum support level for the content stipulated in Clause 5 Article 7 of this Circular shall not exceed 1,000,000 VND (one million dong) per participating unit registering and receiving information.

6. For the content "Organizing promotional, advertising, and consumption activities for goods, especially agricultural products, in mountainous, border, remote, ethnic minority, and island regions": Support 100% of the costs for writing articles and distributing them through Vietnamese mass media and border provinces (Vietnamese and neighboring countries' border provinces).

The maximum support level for the content stipulated in Clause 6 Article 7 of this Circular shall not exceed 50,000,000 VND (fifty million dong) per promotional topic.

III. REGULATIONS ON THE DISTRIBUTION PROCEDURE OF FUNDS, TEMPORARY ADVANCE, SETTLEMENT, AND MONITORING SUPERVISION PROCEDURES

Article 8. Consolidation and Allocation of Budgetary Funds

1. The Ministry of Industry and Trade shall consolidate the demand for budgetary funds to support the implementation of the national trade promotion program and submit it to the Ministry of Finance. Based on the state budget's balancing capacity, the Ministry of Finance will consider consolidating it into the annual state budget plan and report to the Government for approval by the National Assembly.

After the state budget plan has been approved by the National Assembly, the Ministry of Finance will notify the Ministry of Industry and Trade of the total amount of budgetary funds allocated for the national trade promotion program for that year.

2. Based on the allocated budget estimate, the Ministry of Industry and Trade will approve the program and allocate budgetary funds for implementing the national trade promotion program in detail according to each entity responsible for implementing the program and the contents stipulated in Articles 5, 6, and 7 of this Circular, on the principle that the total budgetary support for implementing the program's projects does not exceed the approved budget estimate. The budget allocation to the entities responsible for the program will be made after receiving the written opinion of the Ministry of Finance. Program sponsors must open accounts at the State Treasury to facilitate transactions.

Article 9. Certain Requirements for Contracts Implementing Projects

1. Based on the Decision approving the national trade promotion program and the budget allocation for the program sponsors, which have been unified by the Ministry of Finance, representatives of the Ministry of Industry and Trade (the Department of Trade Promotion) will sign contracts to implement projects with entities responsible for implementing the program.

The contract to implement the project is a specificization of tasks for the program sponsor to carry out, responsibilities of both the party assigning and the party accepting the work, serving as the basis for settling the support funding.

2. The contract to implement the project must be based on economic and technical standards and norms issued for common application among program sponsors according to: content, scale, location...

3. The contract to implement the project must minimally include the following basic contents:

a) Detailed list of each task, including:

- Quantity and volume according to specific standards and techniques;

- Quality of each task.

b) Number of enterprises, trainees... participating in the program

c) Location and time of implementation

d) Supervision and acceptance methods according to the detailed list of tasks.

đ) Responsibilities, obligations, and rights; specific sanctions when failing to comply with the contract's contents

e) Other ancillary activities related to the program (including all activities of entities related to the program event)

- Content

- Implementation method

Article 10. Advance Payment of Funds for Program Implementation

1. Based on the budget allocation for the program sponsor, which has been unified by the Ministry of Finance, and the contract to implement the project of the Ministry of Industry and Trade, the entity responsible for implementing the program will make advance payments of funds at the State Treasury.

2. The State Treasury will control and settle payments for each task of the program according to the regulations of the Ministry of Finance on management, issuance, and settlement of state budget expenditures through the State Treasury, current expenditure regulations, and provisions in this circular.

3. The level of advance payment of funds: Based on the progress of the program and 70% of the reviewed budget estimate.

Article 11. Settlement and Finalization of Program Expenses

1. For the program sponsor

a) Based on the acceptance certificate and contract termination document for the implementation project of the Ministry of Industry and Trade, within twenty working days from the end of the program, the program sponsor shall report on the settlement of program expenses to the Ministry of Industry and Trade for review (including all activities related to the program).

b) After receiving complete files, within twenty working days, the Ministry of Industry and Trade shall prepare a review certificate and notify the approval of the settlement of support funds for the main implementing unit of the program (to be sent to the Ministry of Finance - State Enterprise Financial Department).

c) The notification of the approval of the settlement of support funds for the main implementing unit of the program by the Ministry of Industry and Trade serves as the basis for the State Treasury to continue payment or recover temporarily advanced funds.

2. For the Ministry of Industry and Trade

Based on the notification approving the settlement of support funds for the program sponsor, no later than January 31 of the following year, the Ministry of Industry and Trade shall compile and finalize the national trade promotion program expenses according to the implementing units, program content, and number of participating enterprises; provide an overall assessment of the implementation of the national trade promotion program to the Ministry of Finance.

3. For the Ministry of Finance

After receiving complete files, within thirty working days, the Ministry of Finance shall review and consolidate into the finalization of the state budget, simultaneously notifying the Ministry of Industry and Trade of the settled amount for the year and the unused funds to be carried over to the next year.

Article 12. Payment Documents and Files of the Program Sponsor

1. Payment Documents

a) The main implementing unit of the program is responsible for collecting all expenditure vouchers in accordance with the content, time, and location of occurrence, and retaining original vouchers. For contents where the state partially subsidizes expenses, the program sponsor is responsible for raising sufficient funds to implement.

b) The main implementing unit of the program is responsible for the accuracy and honesty of the vouchers and invoices executed. Economic contracts between the program sponsor and service providers must clearly specify the service price excluding commission.

c) Any violations discovered such as fake vouchers, purchasing invoices, sending prices, not declaring sideline activities related to the program... will be punished according to the law and payment will be refused.

2. Payment Files at the State Treasury

a) Temporary Advance Payment Files

- A letter requesting the State Treasury to temporarily advance funds;

- The budget allocation plan for the program sponsor approved in writing by the Ministry of Finance;

- Decision approving the program and implementation contract;

- Invoices, vouchers, economic contracts...

b) Payment Settlement Files

- A letter requesting the State Treasury to settle funds;

- Acceptance certificate and contract termination document for the implementation project;

- Notification of approval of settlement by the Ministry of Industry and Trade;

- Invoices, vouchers, economic contracts...

Article 13. Inspection and Supervision

1. The program sponsor and the Ministry of Industry and Trade have the responsibility to provide full documentation and be subject to inspection, examination, and supervision of the use of state support funds by management agencies according to their prescribed functions.

2. In cases where funds need to be recovered due to inspections by competent authorities, the Ministry of Industry and Trade shall require the main implementing unit of the program to return the state treasury and report to the Ministry of Finance the results of implementation according to the law.

IV. EFFECTIVE DATE OF IMPLEMENTATION

Article 14. Effective Date

1. This Circular takes effect from August 1, 2011.

2. During the implementation process, if there are any difficulties, it is recommended that relevant units reflect them to the Ministry of Finance for prompt resolution./.