Circular No. 91/2007/TT-BTC guiding the preparation, allocation, and management of finance in the field of providing public service pilotage for maritime vessels.

CIRCULAR

Guidelines for the preparation, allocation of plans, and financial management in the field of providing public utility pilotage services

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Pursuant to the Maritime Code;

Pursuant to the Decree on Fees and Charges;

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

Pursuant to Decree No. 199/2004/NĐ-CP dated December 3, 2004 of the Government promulgating the Financial Management Regulations for State-owned Enterprises and the Management of State Capital Invested in Other Enterprises;

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

Pursuant to Decision No. 256/2006/QĐ-TTg dated November 9, 2006 of the Prime Minister promulgating the Bidding, Ordering, and Allocation of Plans for Production Implementation and Public Utility Product and Service Supply Regulations;

Pursuant to Decision No. 888/QĐ-BGTVT dated April 16, 2007 of the Minister of Transport recognizing state-owned enterprises performing public utility tasks under the Vietnam Maritime Administration;

The Ministry of Finance hereby provides guidelines for the preparation, allocation of plans, and financial management in the field of providing public utility pilotage services 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. These Circular applies to state-owned enterprises established by the Minister of Transport and having the function of providing public utility pilotage services.

2. Public utility pilotage services are services guiding ships in and out of ports within a mandatory pilotage zone in Vietnam.

3. State-owned enterprises providing public utility pilotage services (hereinafter referred to as Pilotage Companies) shall be provided with capital, assets, and necessary human resources by the State to perform the task of guiding ships in and out of ports according to economic and technical norms prescribed by the Minister of Transport.

In addition to performing public utility tasks, Pilotage Companies have the right to utilize the capital, assets, and other resources provided by the State to organize business activities in accordance with the law without affecting the public utility tasks assigned by the State.

4. Sources of funds for paying for public utility pilotage services:

Pilotage fees are revenue from fees collected by the State as specified in the list of fees issued together with the Law on Fees and Charges, which are allocated to Pilotage Companies for collection. Annual revenue from pilotage fees collected by each Pilotage Company shall be used to pay for the volume of public utility pilotage services provided by that Pilotage Company.

Pilotage Companies are exempt from value-added tax on revenue from pilotage fees.

II. PREPARATION AND ALLOCATION OF PLANS FOR PROVIDING PUBLIC UTILITY PILOTAGE SERVICES

1. Preparation of plans:

1.1 Annually, based on forecasts of growth in ship traffic entering and leaving Vietnamese port areas and the capacity to provide pilotage services, Pilotage Companies shall prepare plans for providing public utility pilotage services and financial plans to be submitted to the Vietnam Maritime Administration. The Vietnam Maritime Administration shall be responsible for reviewing, examining, and consolidating these plans to submit to the Ministry of Transport before July 20 each year for inclusion in the next year's budget plan of the Ministry of Transport and to send to the Ministry of Finance as required.

1.2 Basis for preparing plans:

a) Volume of service provision;

b) Procedures and economic and technical norms for public utility pilotage services issued by the Minister of Transport.

2. Allocation of plans:

Based on the proposal of the Vietnam Maritime Administration, the Ministry of Transport shall allocate plans for providing public utility services and financial plans for the operation of providing public utility pilotage services to Pilotage Companies after obtaining written agreement from the Ministry of Finance. The allocation of plans to companies must be completed before December 31 of the previous year.

3. Content of plan allocation:

The content of the plan includes two parts:

3.1 Plan for providing public utility services:

a) Name of public utility service;

b) Quantity of public utility service;

c) Quality of public utility service.

3.2 Financial plan:

a) Revenue from providing public utility services: Revenue from annual pilotage fees;

b) Operating expenses for public utility services;

c) Difference between revenue and expenditure for providing public utility services: - To be paid into the State budget; - To establish various funds.

III. FINANCIAL MANAGEMENT OF PILOTAGE COMPANIES

1. Pilotage Companies are designed to consistently and stably perform the main task of providing public utility pilotage services; they are provided with minimum capital by the State to fulfill the public utility tasks assigned by the State in accordance with the law. Pilotage Companies must concentrate their capital and resources to perform the task of providing public utility pilotage services.

When necessary, the Ministry of Transport has the authority to reallocate capital and assets among companies performing public utility tasks through an increase or decrease in capital. Such reallocation shall not affect the provision of public utility services by the Pilotage Companies being reallocated.

2. The sale or liquidation of assets directly serving public utility tasks must be approved by the Ministry of Transport. Investment of capital outside the company by Pilotage Companies must be reported to the Ministry of Transport for decision.

3. Management of revenue and expenses from the provision of public utility pilotage services:

3.1 Revenue from providing public utility pilotage services: Revenue from annual pilotage fees and other income generated from the provision of public utility pilotage services.

3.2 Expenses for the provision of public utility pilotage services: These are business operating costs as stipulated in Decree No. 199/2004/NĐ-CP dated December 3, 2004 of the Government promulgating the Financial Management Regulations for State-owned Enterprises and the Management of State Capital Invested in Other Enterprises.

Pilotage Companies shall manage revenue and expenses in accordance with current regulations. Specifically, training costs for pilots shall be based on actual costs. The Ministry of Transport shall specify the form and norms for pilot training.

4. Distribution of revenue and expenditure differences from the provision of public utility pilotage services:

4.1 Allocate 5% into the Financial Reserve Fund; when the fund balance equals 25% of the registered capital, no further allocations shall be made.

4.2 Establish a Management Board Reward Fund in accordance with current laws.

4. 3. Allocate 25% to the Development Investment Fund; when the fund balance equals 30% of the registered capital, no further allocation shall be made.

4. 4. Allocate two welfare and incentive funds equivalent to two months' salary.

4. 5. The remaining difference shall be remitted to the state budget.

5. Management of capital, assets, and other financial regulations of the Pilotage Company shall be carried out in accordance with current laws.

IV. ORGANIZATION OF INSPECTION AND SETTLEMENT OF PROVIDING MARITIME PILOTAGE PUBLIC SERVICES

1. Quarterly and annually, the Pilotage Company shall prepare financial settlement reports and submit them to the Vietnam Maritime Administration, Ministry of Transport, and Ministry of Finance in accordance with the timeframes stipulated by current regulations.

Annually, maritime pilotage companies must engage independent auditors to audit their annual financial statements as prescribed. The maritime pilotage company is subject to inspection, examination, and supervision by financial authorities regarding financial management in accordance with the law.

2. The Ministry of Transport shall take the lead in coordinating with the Ministry of Finance and the Vietnam Maritime Administration to inspect and settle the provision of maritime pilotage public services assigned to pilotage companies.

V. IMPLEMENTATION

1. In addition to the provisions set forth in this Circular, pilotage companies must also comply with other legal regulations applicable to state-owned enterprises.

2. This Circular shall take effect fifteen days from the date of publication in the Official Gazette. All previous regulations that conflict with this Circular are hereby abolished.

3. During implementation, if there are any difficulties, the pilotage companies and related units are requested to compile and report to the Ministry of Finance for study and appropriate amendments and supplements./.