Circular No. 93/2000/TT-BTC guiding the management and use of financial resources for anti-counterfeiting work

CIRCULAR

Guidelines for managing and using financial resources

in anti-counterfeiting work

Pursuant to the directive of the Prime Minister in Directive No. 31/1999/CT-TTg dated October 27, 1999 on combating the production and sale of counterfeit goods, the Ministry of Finance provides specific guidelines for managing and using financial resources in anti-counterfeiting work 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 Financial resources in anti-counterfeiting work include:

1.1 State budget funds allocated according to the approved annual budget estimate.

1.2 The entire amount of fines collected from administrative violations and proceeds from the sale of seized counterfeit goods and related items in cases of counterfeit goods, retained by the state budget for anti-counterfeiting activities.

1.3 Voluntary contributions and sponsorships (if any) from organizations and individuals both domestically and internationally for anti-counterfeiting work.

1.4 Anti-smuggling revenue support from local areas (if available) as decided by the Chairman of the Provincial People's Committee (hereinafter referred to as the province).

2 Financial resources in anti-counterfeiting work shall be received, managed, and used based on the following principles:

2.1 State budget funds allocated annually according to the approved budget estimate (as detailed in Clause 1.1, Point 1, Part I) and anti-smuggling revenue support from local areas as decided by the Chairman of the Provincial People's Committee (as detailed in Clause 1.4, Point 1, Part I) shall be managed and used in accordance with current financial management regulations.

2.2 Financial resources from voluntary contributions and sponsorships from domestic and international organizations and individuals for units assigned anti-counterfeiting tasks (as detailed in Clause 1.3, Point 1, Part I) shall be received and managed in accordance with current financial management regulations and used for anti-counterfeiting work of the unit in line with the set objectives of the contributions and sponsorships.

2.3 Financial resources collected from anti-counterfeiting activities (as detailed in Clause 1.2, Point 1, Part I) are state budget revenues retained entirely for the unit to use for anti-counterfeiting work and shall be managed and used in accordance with the guidelines provided in this Circular.

3 The forces responsible for inspection, supervision, and handling of counterfeit goods as stipulated in this Circular include:

Market management forces.

Customs forces.

Border Guard forces.

Police forces.

Specialized inspection forces (if authorized by competent authorities to handle inspections, supervision, and counterfeiting).

II. GUIDELINES FOR MANAGING AND USING FUNDS COLLECTED FROM ANTI-COUNTERFEITING ACTIVITIES

1 Concentrating funds collected from anti-counterfeiting activities

1.1 Sources of funds collected from anti-counterfeiting activities include:

Administrative violation fines for acts of storing, transporting, selling, and producing counterfeit goods as decided by competent authorities under the Administrative Violation Handling Decree dated July 6, 1995 and its implementing regulations.

Proceeds from the sale of seized counterfeit goods and items allowed to re-enter the market according to decisions made by competent state authorities.

1.2 Opening a temporary account to concentrate funds collected from anti-counterfeiting activities.

The provincial Department of Finance and Price Control opens a temporary account (sub-account for funds collected from anti-counterfeiting activities) at the provincial State Treasury; district finance offices open a temporary account at the district State Treasury to collect funds from anti-counterfeiting activities investigated, discovered, arrested, and handled by anti-counterfeiting forces. Temporary accounts for anti-counterfeiting activities at the State Treasury do not accrue interest.

1.3 Depositing funds collected from anti-counterfeiting activities into the temporary account.

All funds collected in cash from administrative violations in the field of anti-counterfeiting and from the sale of seized goods allowed to re-enter the market (after deducting related transportation, unloading, storage, and sales organization costs) shall be deposited into the temporary account opened by the provincial or district finance departments at the State Treasury according to the following principles:

Funds collected by central or provincial anti-counterfeiting forces directly investigating, discovering, arresting, and handling cases shall be concentrated in the temporary account opened by the provincial Department of Finance and Price Control at the provincial State Treasury;

Funds collected by district-level anti-counterfeiting forces directly investigating, discovering, arresting, and handling cases shall be concentrated in the temporary account opened by the district finance department at the district State Treasury.

In cases where central or provincial anti-counterfeiting forces investigate, discover, arrest, and handle cases far from the location of the temporary account, the collected funds shall be deposited into the district State Treasury where the case occurred. The district State Treasury shall collect and transfer the total amount to the temporary account of the provincial Department of Finance and Price Control.

In cases involving multiple locations or border areas, the place of arrest shall serve as the basis for resolution.

2 Distributing funds from the temporary account to units participating in anti-counterfeiting work.

2.1 Based on the actual funds deposited into the temporary account (sub-account for funds collected from anti-counterfeiting activities) at the State Treasury and the request of the unit handling the violation, the Director of the provincial Department of Finance and Price Control shall submit to the Chairman of the Provincial People's Committee, and the District Finance Office Head shall submit to the Chairman of the District People's Committee for a decision to distribute the administrative fine amounts and proceeds from the sale of goods allowed to re-enter the market (if any) monthly or per case, depending on the scale of the revenue source, to the unit that has handled the violation for use in anti-counterfeiting work.

2.2 Based on the decision of the Chairman of the Provincial People's Committee (or the Chairman of the District People's Committee), the finance authority at the same level shall transfer funds from the temporary account to the unit's account and monitor the management and use in accordance with the guidelines provided in this Circular.

3 Guidelines for using funds collected from anti-counterfeiting activities.

On the basis of the funds received, units within the anti-counterfeiting forces shall use them for the following purposes:

3.1 Supporting investigation, pursuit, verification costs, testing, appraisal, and evaluation of goods.

The head of the unit examines and approves expenditures for specific cases based on lawful and valid payment vouchers.

The decision to pay and accompanying accounting vouchers are used as documents for settlement with financial authorities according to current regulations. The head of the unit assigned to combat counterfeit goods is responsible for their decisions.

3.2 Support for expenditures related to propaganda, training, summarizing experiences, concluding anti-counterfeit activities, and organizing information dissemination.

Based on the specific plan of the unit and balanced with other sources of funds, the head of the unit decides to use funds collected from anti-counterfeit activities to cover these expenses according to current state standards.

3.3 Expenses for purchasing information.

Information purchase costs are reimbursed based on the value of the provided information, the effectiveness of the case, and controlled per person and per incident as follows:

The maximum cost for purchasing information from one person is 200,000 VND/person/incident.

In cases where multiple high-quality information sources are available, the maximum cost for purchasing information for one incident shall not exceed 1,000,000 VND/incident.

Specific expenditure levels are determined by the head of the unit assigned to combat counterfeit goods based on proposals from staff tasked with this responsibility. Payment must ensure safety and confidentiality for the informant. To prevent corruption, when paying money to the provider of information, there must be the presence of a responsible person from the unit.

If the reported information has no value and does not yield results, the cost of purchasing information must be deducted from the reward fund from other incidents of the unit.

The head of the unit assigned to combat counterfeit goods is responsible for their decisions regarding information purchase costs to ensure they are correct and effective. If misuse of funds is discovered, the head of the unit will face administrative disciplinary action or criminal prosecution according to the law.

The decision to pay and accompanying accounting vouchers are used as documents for settlement with financial authorities according to current regulations.

3.4 Support for expenditures on procurement and repair of equipment and tools serving anti-counterfeit activities.

The head of the unit develops plans for procurement and repair of equipment using funds collected from anti-counterfeit activities.

Procurement and repair of equipment and tools serving anti-counterfeit activities must comply with current financial management regulations.

3.5 Support for overtime allowances; compensation for officers or their families injured, wounded, or killed while performing duties.

When the annual budget allocation is insufficient to cover night shift allowances, overtime payments, or compensation for injuries, wounds, or deaths of officers while performing duties, the head of the unit may use funds from anti-counterfeit activities to cover these expenses. For expenses with state-prescribed regulations, follow those regulations. For expenses without such regulations, the head of the unit proposes and implements them after approval from higher authorities.

3.6 Rewards for organizations and individuals contributing to investigation, detection, arrest, and handling of counterfeit goods cases.

The Chairman of the Provincial People's Committee guides the specific reward levels uniformly implemented within the province for this work.

The head of the unit assigned to combat counterfeit goods bases their specific reward decisions on the Chairman’s guidance, considering the complexity, effectiveness of the case, cooperation results, and within the permitted reward budget balanced with other expenditures.

Reward decisions must ensure transparency, democracy, fairness, economy, effectiveness, prevent corruption, and encourage anti-counterfeit efforts.

The head of the unit is personally responsible before superiors and the law for their decisions.

3.7 Submitting to central agencies for directing anti-counterfeit activities across the sector and coordinating inter-departmental forces to participate in anti-counterfeit activities.

This submission shall not exceed 10% of total revenue from anti-counterfeit activities, the Ministry of Finance authorizes heads of participating forces to decide appropriately.

Expenditures from this source are carried out according to the above guidelines and current state financial management regulations.

4 Accounting, bookkeeping, and settlement

Units participating in anti-counterfeit activities must maintain accounting books to track revenue and anti-counterfeit funding, record receipt, usage, and settlement of anti-counterfeit funding; prepare financial reports and settlement reports according to the State Budget Law and current financial and accounting regulations.

National Treasury units at all levels implement accounting for revenue collection, agency collection, and payment of anti-counterfeit funding according to the State Budget Item List and current financial and accounting regulations.

III IMPLEMENTATION

1 This Circular takes effect 15 days from the date of signature. Cases of storing, transporting, selling, and producing counterfeit goods discovered and seized but not yet processed until the date this Circular takes effect shall be handled according to this Circular.

2 State agencies receiving and using anti-counterfeit funding shall not reimburse expenses and allowances prescribed in Circular No. 52TC/CSTC dated September 12, 1996 of the Ministry of Finance guiding the collection and use of fines for administrative violations.

During implementation, if difficulties arise, please promptly report to the Ministry of Finance for research and supplementary guidance./.