JOINT CIRCULAR NO. 93 TT/LB PROVIDING TEMPORARY REGULATIONS ON THE SYSTEM OF COLLECTION, MANAGEMENT AND USE OF FEES FOR QUOTA EXPORT LICENSES FOR TEXTILE AND GARMENT PRODUCTS TO THE EC MARKET.

JOINT CIRCULAR

Interim regulations on the collection, management, and use of quota fees for exporting textile and garment products to the EC market.

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 Pursuant to Decision No. 276/CT dated July 28, 1992 of the Chairman of the Council of Ministers (now the Prime Minister) regarding the unified management of various types of fees, and Circular No. 58691/ KTTH dated October 22, 1994 of the Government Office;

The Ministry of Finance and the Ministry of Trade hereby guide the system for collecting, managing, and using quota fees for exporting textile and garment products to the EC market as follows:

I-OBJECTS OF COLLECTION

Enterprises engaged in production and trading of exports when obtaining quotas for exporting textile and garment products from Vietnam to the EC market according to the quotas allocated to Vietnam by the EC must pay the quota fee.

II-AMOUNT OF COLLECTION

1. Based on the actual situation each year, the Ministry of Trade and the Ministry of Finance will specify specific collection rates applicable for the year. The general collection rate for 1994 is set forth in the appendix attached to this Circular.

2. The collection rate specified above shall be applied with the following specific coefficients:

a. Vietnamese enterprises, foreign-invested enterprises in Vietnam (including those with 100% foreign investment) where the foreign party belongs to the EC bloc shall pay according to the rate specified in the appendix attached to this Circular;

b. Foreign-invested enterprises where the foreign party does not belong to the countries within the EC bloc shall pay a quota fee equal to 150% (1.5 times) of the rate specified in the appendix;

c. Foreign-invested enterprises with 100% foreign investment that do not belong to the EC bloc shall pay a quota fee equal to 200% (2 times) of the rate specified in the appendix.

3. The quota fee for exporting textile and garment products to the EC market shall be collected in US dollars (USD). In cases where the payer requests payment in Vietnamese dong, it shall be converted into Vietnamese dong based on the buying exchange rate published by the State Bank of Vietnam at the time of payment.

II-MANAGEMENT AND USE OF FEES

1. The quota fee for exporting textile and garment products to the EC market is a revenue of the State managed and organized for collection by the Ministry of Trade in accordance with the prescribed regulations. The Ministry of Trade must use the receipt issued by the Ministry of Finance, maintain separate accounting books to track this fee and related expenses for implementing the agreement, as stipulated by the Accounting and Statistics Ordinance. These accounting books must be registered with the tax authority before use.

2. After receiving the official notification from the Ministry of Trade regarding the product type, quantity, quota fee for the product, and the total quota fee payable by the entity, the enterprise must make a single transfer of the quota fee into the foreign currency account number 362-111-370-725 of the Ministry of Trade opened at the Central Vietcombank.

When the enterprise applies for the first export permit, it must present the original debt notice from the bank where the unit has its "Standing Order" account regarding the quota fee paid for the entire shipment and submit a copy of the "Standing Order" to the issuing department.

3. The Ministry of Trade temporarily retains 15% of the total collected quota fees to supplement necessary expenditures serving the issuance of quotas beyond the annual regular budget allocation, specifically including:

a. Information exchange and transactions with the EC community regarding the implementation of the textile and garment trade agreement between Vietnam and the EC.

b. Expenses for sending Vietnamese experts abroad and inviting foreign experts to Vietnam for the purpose of exchanging and learning about the implementation of the agreement (excluding expenses for business experts).

c. Expenses for seminars, advertising, and exhibitions on textile and garment import and export between Vietnam and the EC.

d. Expenses for activities aimed at accelerating the quota for exporting textile and garment products from Vietnam to the EC.

e. Expenses for periodic and extraordinary inspections to enhance the effectiveness of the agreement's implementation.

All payments must be supported by valid receipts as prescribed by the Ministry of Finance.

The use of foreign currency retained must comply with the current state regulations on foreign currency management. At the end of the year, the Ministry of Trade is responsible for settling the amount of the retained quota fee and reporting to the Ministry of Finance and the local tax authority on the collection, expenditure, and use of the quota fee. If there is any surplus, it must be fully remitted to the State Budget.

4. The remaining 85% of the quota fee must be fully remitted to the State Budget. The deadline for submission is determined by the local tax authority but must be completed no later than five days after the end of the month. By January 30 of the following year, the Ministry of Trade must settle accounts with the Ministry of Finance and the local tax authority regarding the collection, submission, and use of the quota fee.

5. The issuing authority for export permits (EC) is responsible for checking the payment of quota fees by enterprises utilizing quotas. Enterprises that fail to pay the correct or full amount will not be granted an export permit. If the issuing authority or individual grants an export permit despite incorrect or insufficient payment, they must pay the outstanding quota fee to the State Budget and be subject to administrative penalties as stipulated in Decree No. 01-CP dated January 18, 1992 of the Prime Minister regarding administrative penalties in the field of taxation.

6. Provincial and municipal tax bureaus are responsible for urging the quota issuing authorities to promptly remit the required amount to the State Budget in accordance with the provisions of this Circular.

Annually, the Ministry of Trade prepares plans for collecting quota fees for exporting textile and garment products to the EC market and plans for expenditures related to the collection of these fees, which are submitted together with the Ministry of Trade's annual budget plan to the Ministry of Finance and the directly managing tax authority.

This Circular takes effect from January 1, 1994, and all previous regulations inconsistent with this Circular are abolished.

For 1993, the quota fees collected, after deducting legitimate expenses (as per the regulations of the Ministry of Finance) directly related to the issuance of quotas as specified in Point 3, Section III, the remainder must be fully remitted to the State Budget.