Processes and procedures for preparation and submission of plans for disposal of property qualified for the established all-people ownership in Vietnam

Processes and procedures for preparation and submission of plans for disposal of property qualified for the established all-people ownership in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Safekeeping of property eligible for the established all-people ownership in Vietnam

Safekeeping of property eligible for the established all-people ownership in Vietnam according to Article 17 of Decree 29/2018/ND-CP is as follows:

- Property subject to decisions on seizure or decisions on establishment of the all-people ownership, issued by competent persons or entities, shall be kept in safe custody so that they are in good condition to serve the tasks of disposal thereof in accordance with laws.

- Property handed over to authorities undertaking specialized state management for their storage and safekeeping shall include the followings:

+ National treasure, antiques and other objects of historical and cultural value.

+ Weapons, explosive materials, supporting gears, technical and dedicated equipment, specially-made equipment and other items related to national defence and security.

+ Vietnamese currency, foreign currency, valuable papers, gold, silver, jewels and precious metal.

+ Radioactive substances.

+ Organs (specimens) of precious and rare forest animal species listed in group IB.

+ Precious and rare forest products not used for commercial purposes, except those property items prescribed in point dd of this clause.

Ministry of Finance shall preside over and collaborate with relevant ministries and entities in publishing the detailed list of specialized authorities receiving and keeping custody of the property specified in this clause.

- Responsibilities for safekeeping of property shall be prescribed as follows:

+ The host entity of the person having jurisdiction to issue the decision on confiscation of property in accordance with laws, or the entity appealing to the competent person to issue the decision on confiscation of property in accordance with laws on handling of administrative violations, shall be responsible for storing and keeping custody of confiscated property.

+ The law enforcement entity shall be responsible for keeping safe custody of exhibits in legal cases or other property confiscated under criminal, criminal proceedings and civil judgement enforcement laws.

+ The entity presiding over management of property that is prescribed in Article 5 of Decree 29/2018/ND-CP shall be responsible for presiding over and collaborating with other relevant entities in undertaking the safekeeping of property prescribed in clauses 2, 3, 4 and 5 of Article 106 in the Law on Management and Use of Public Property.

The safekeeping and storage of property shall be subject to provisions laid down in clause 1 of Article 108 in the Law on Management and Use of Public Property.

2. Processes and procedures for preparation and submission of plans for disposal of property qualified for the established all-people ownership in Vietnam

Processes and procedures for preparation and submission of plans for disposal of property qualified for the established all-people ownership according to Article 18 of Decree 29/2018/ND-CP are as follows:

- Responsibilities for preparation of the plan for disposal of property eligible to be under the established all-people ownership shall be subject to the following provisions:

+ The entity presiding over management of property that is referred to in clause 1, 2 or 3 of Article 5 of Decree 29/2018/ND-CP shall prepare the plan for disposal of the confiscated property in accordance with laws, except those property confiscated under point c of this clause.

+ The customs authority shall prepare the plan for disposal of property which is the stagnant good stored within a customs territory under the jurisdiction to grant approval by the Director of a Customs Department, except stagnant goods prescribed in point b of clause 3 of Article 19 of Decree 29/2018/ND-CP.

+ The entity authorized to perform tasks of managing public property according to clause 1, 2 and 3 of Article 19 in the Law on Management and Use of Public Property shall prepare the plan for disposal of the following property:

++ Property confiscated under laws shall be disposed of in the form of transfer to the entity or organization managing and using such property under the jurisdiction of the Minister of Finance, Minister or Director of a central agency and the Chairperson of the provincial-level People’s Committee;

++ Stagnant goods stored within a customs territory under the provisions of laws on customs according to the plan for disposal thereof approved by the Minister of Finance as provided in point b of clause 3 of Article 19 of Decree 29/2018/ND-CP;

++ The remainder of property qualified for being under the established all-people ownership.

- A plan for disposal of property eligible for the established all-people ownership must contain the following main information:

+ Property information: The decision on establishment of the all-people ownership of property or the decision on confiscation of property (number, date (dd/mm/yyyy), issuing agency), type, quantity and quality of property, origin, year of manufacturing and country of manufacturing, etc.

+ Property value (if any).

Especially for property disposed of in a form of transfer to the entity or organization for use, the entity formulating the plan for disposal of property must establish the Valuation Committee in order to determine value of property inscribed in the plan for disposal of property.

The Committee shall be chaired by the Head of the entity formulating the plan for disposal of property and shall be joined by representatives of: Financial institution (which owns the property), the entity receiving the property (if any), specialized entity concerned.

+ Forms of disposal of specific items of property:

++ Handing over the property to the specialized entity with respect to items of property specified in clause 2 of Article 108 in the Law on Management and Use of Public Property;

++ Handing over or transferring the property to the entity or organization for the purpose of management and use thereof.

Handing over or transferring property to the entity or organization managing and using such property must conform to permissible standards and norms for use of property, issued by the entity or competent person in accordance with laws.

This regulation shall only be applicable to: Real property, motor vehicles, motorcycles, machinery, equipment and other property of which the remaining quality rate is 50% or higher;

++ Handing over the property to an enterprise in a form of recording an increase in state capital invested in that enterprise;

++ Selling (auctioning, appointing the buyer of and publicly posting the price of) property in accordance with laws on management and use of public property and other relevant legislation.

Especially property that are perishable goods or articles (e.g. fresh and live food that is easily gone off, difficult to be preserved, flammable and explosive goods, processed food products of which shelf life is less than 30 days, dead wild animals of which elimination is not required by laws, etc);

Bulky and heavy goods aboard inland watercraft or sea-going vessels that incur a lot of transportation costs; raw materials or goods that are prohibited for import and subject to the forced re-export carried out by only one economic organization, the form of disposal of such property may be either appointing the buyer or publicly posting the price thereof;

++ Destroying perishable goods or objects that cannot be disposed of in the form of sale; property unable to be used or property in the list of items prohibited for manufacturing, trading and circulation in accordance with laws, including: Toxic cultural products, drugs, counterfeit goods, objects harmful to human health, livestock, plants, dead wild animals and other property of the forced elimination is required.

In special cases where other forms of disposal are needed to ensure cost efficiency and effectiveness, the entity presiding over management of property shall be responsible for reporting to the Ministry of Finance or reporting to the superior supervisory entity (if any) that will then consolidate a final report submitted to the Ministry of Finance to seek its decision on possible actions;

++ Remitting Vietnamese currency or foreign currency sums to the state budget; surrendering gold, silver, jewels and precious metal.

As regards valuable papers that may be liquidated, it shall be obliged to implement procedures for turning them into cash amounts paid in the state budget in accordance with laws.

If these papers fail to meet requirements for being turned into cash, it shall be obligatory to pay them in the State Treasury for its storage and safekeeping;

++ Taking other actions according to the Prime Minister’s decision.

+ Presiding entity and cooperating entity. The entity presiding over disposal of property is the entity presiding over management of property referred to in Article 5 of Decree 29/2018/ND-CP.

+ Disposal duration.

+ Disposal costs.

+ Management and use of proceeds from disposal of property.

+ Other information (if any).

- Within duration of 10 days of receipt of the decision on confiscation of property or the decision on establishment of the all-people ownership of property:

The competent entity prescribed in clause 1 of this Article shall be responsible for preparing and submitting the plan for disposal of property to the competent entity prescribed in Article 19 herein to seek its approval of that plan.

Quoc Dat

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