Decree 94: Regulations on handling losses of national reserve goods in Vietnam

Decree 94: Regulations on handling losses of national reserve goods in Vietnam (Internet image)

Article 17 of Decree 94/2013/ND-CP stipulates that if the national reserve goods loss during storage is within or below the stipulated loss rate, the ministries and central authorities managing national reserve goods, and the specialized national reserve agencies, are allowed to reduce the national reserve capital and report the final accounts to the Ministry of Finance of Vietnam in accordance with regulations.

- If the national reserve goods loss exceeds the stipulated rate during storage, the national reserve unit based on the inspection record; the loss determination record or the record confirming that the goods have deteriorated in quality compared to the Vietnamese Standards, National Technical Regulations on national reserve goods; the loss record of national reserve goods due to the National Reserve Property Handling Council of the respective national reserve agency or unit, will identify the reasons for the loss, damage, or reduction in quality and handle it according to the following regulations:

- If the national reserve goods loss exceeds the stipulated rate due to subjective reasons, the organization or individual must compensate for the entire damage for the excess loss; the compensation price is decided by the head of the national reserve goods management unit based on the market price of such goods or similar goods at the time of compensation handling;

- If the national reserve goods loss exceeds the stipulated rate due to objective reasons, the handling and capital reduction will be executed according to delegated authority.

The authority to decide on the handling of national reserve goods loss exceeding the stipulated rate, damage, or loss, is regulated as follows:

- The heads of the ministries and central authorities managing national reserve goods, the heads of specialized national reserve agencies are authorized to decide on capital reduction for a single handling of national reserve goods with a loss value below VND 300 million according to the accounting book value and are responsible for their decision, and concurrently report to the Minister of Finance of Vietnam;

- The heads of the ministries and central authorities managing national reserve goods, the heads of specialized national reserve agencies shall report to the Minister of Finance of Vietnam for consideration and decision on capital reduction for a single handling of national reserve goods with a loss value from VND 300 million to below VND 1 billion according to the accounting book value;

- The Prime Minister of the Government of Vietnam will consider and decide on capital reduction for a single handling of national reserve goods with a loss value from VND 1 billion or more according to the accounting book value.

More details can be found in Decree 94/2013/ND-CP which comes into effect in Vietnam from October 10, 2013.

Ty Na

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