The Ministry of Finance of VIetnam: What are the guidelines on fees for issuance of certificates of origin (C/O) collection, transfer, management, and use?
On July 19, 2023, the Ministry of Finance issued Official Dispatch 7453/BTC-CST in 2023 on guidelines on the implementation of Circular 36/2023/TT-BTC on fees for issuance of certificates of origin (C/O) collection, transfer and use thereof
Who is the fee collectors of the certificates of origin in Vietnam?
In Clause 1 of Official Dispatch 7453/BTC-CST in 2023, the Ministry of Finance has comments on the organization of collection of fees for certification of origin (C/O) as follows:
Clause 1 Article 34 of the Law on Foreign Trade Management stipulates: “The Minister of Industry and Trade of Vietnam shall issue or authorize other organizations to issue certificates of origin”.
Article 3 of Circular 36/2023/TT-BTC, according to the Law on Foreign Trade Management and requests of the Ministry of Industry and Trade of Vietnam, stipulates: “Fee collectors are the agencies and organizations that issue C/Os specified in Point b Clause 2 Article 1 of this Circular, including: the Ministry of Industry and Trade of Vietnam, other organizations authorized by the Ministry of Industry and Trade of Vietnam to issue C/Os”.
The Ministry of Finance of VIetnam: What are the guidelines on fees for issuance of certificates of origin (C/O) collection, transfer, management, and use? (Image from the internet)
What is the management and use of the fees for issuance of certificates of origin in Vietnam?
In Clause 2 of Official Dispatch 7453/BTC-CST in 2023, the Ministry of Finance has comments on the management and use of the fee for certification of origin as follows:
Article 5 of Circular 36/2023/TT-BTC stipulates as follows:
Payment and settlement
1. Fee payers shall pay the fees specified in Article 4 of this Circular to the collecting organizations upon submission of the applications for issuance of C/Os using the methods using the methods specified in Circular No. 74/2022/TT-BTC dated December 22, 2022 of the Minister of Finance on methods, deadlines for collection, transfer and declaration of fees and charges under the jurisdiction of the Ministry of Finance.
2. By the 5th every month, the collecting organizations mentioned in Article 3 of this Circular shall fully transfer the fees that were collected in the previous month plus (+) interest accrued on to their fee collection accounts opened at credit institutions (if any) to the accounts opened by the Ministry of Industry and Trade at State Treasury pending transfer to state budget.
3. The Ministry of Industry and Trade shall prepare statements and transfers the fees and interests (in the account opened by the Ministry of Industry and Trade at State Treasury) in accordance with Circular No. 74/2022/TT-BTC; management and use the collected fees in accordance with Article 6 of this Circular.
In Article 6 of Circular 36/2023/TT-BTC stipulates as follows:
Management and use of collected fees by the Ministry of Industry and Trade
1. Collecting organizations shall:
a) Transfer 100% of the collected fees to central government state budget. The costs of service provision and fee collection shall be covered by to central government state budget.
b) Prepare annual estimates of costs of service provision and fee collection (including the costs of authorization of C/O issuance) within the state budget norms and regulations of law.
2. In case the collecting organization is permitted to use the collected fees to cover its operating costs according to Clause 1 Article 4 of the Government’s Decree No. 120/2016/ND-CP dated August 23, 2016, it may retain 83% of the collected fees to cover the costs of service provision and fee collection as prescribed in Article 5 of Decree No. 120/2016/ND-CP and transfer the remaining 17% to central government state budget in accordance with state budget laws.
According to the above regulations, fee collectors, which are organizations authorized by the Ministry of Industry and Trade of Vietnam to issue C/Os (including VCCI; Hai Phong Industry and Trade Department; Management Boards of industrial zones - export processing zones), shall transfer all of the collected fees to the account opened by the Ministry of Industry and Trade of Vietnam at State Treasury pending transfer to state budget. The Ministry of Industry and Trade of Vietnam shall summarize, declare, and settle fees for issuance of C/Os according to the Law on Tax Administration.
If the fee collector (Ministry of Industry and Trade of Vietnam or a unit assigned to collect fees for C/O issuance by the Ministry of Industry and Trade of Vietnam) is permitted to cover its operating costs according to Clause 1 Article 4 of Decree No. 120/2016/ND-CP, it may retain 83% of the collected fees to cover the costs of service provision and fee collection (including payments for organizations authorized to perform C/O issuance according to authorization documents). The authorization funding source is 1 revenue source of the authorized units.
How to assign providers of public services as collectors of fees for certificates of origin issuance in Vietnam?
In Clause 3 of Official Dispatch 7453/BTC-CST in 2023, the Ministry of Finance has comments on assigning a charge management unit for certification of origin of goods under the Ministry of Industry and Trade as follows:
Article 7 of the Law on Fees and Charges 2015 stipulates as follows:
Collectors
Collectors include regulatory agencies, public service providers, and organizations tasked with providing public services for state management tasks by competent state agencies as prescribed hereof.
According to decisions on functions, tasks, entitlements, and organizational structure of units of the Ministry of Industry and Trade of Vietnam, the Ministry of Industry and Trade of Vietnam shall assign providers of public services (C/O issuance) for people and enterprises as collectors of fees for C/O issuance (via Import and Export Department or Ministry Office) in conformity with Article 7 of the Law on Fees and Charges.
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