Thông tư liên tịch 90/2016/TTLT-BTC-BCT

JOINT CIRCULAR

AMENDMENTS TO A NUMBER OF ARTICLES OF THE JOINT CIRCULAR NO.39/2014/TTLT-BCT-BTC DATED OCTOBER 29, 2014 ON DETERMINATION OF BASIC PRICES, ESTABLISHMENT, MANAGEMENT AND ALLOCATION OF PRICE STABILIZATION FUNDS AND CONTROL OF PETROL AND OIL PRICES UNDER THE GOVERNMENT’S DECREE NO.83/2014/ND-CP ON PETROL AND OIL BUSINESS DATED SEPTEMBER 03, 2014

Pursuant to the Law on Commerce No.36/2005/QH11 dated June 14, 2005;

Pursuant to the Law on Prices No.11/2012/QH13 dated June 20, 2012;

Pursuant to the Law on Accounting No. 03/2003/QH11 dated June 17, 2003;

Pursuant to the Government's Decree No. 215/2013/ND-CP dated December 23, 2013 defining the functions, tasks, entitlements and organizational structure of the Ministry of Finance;

Pursuant to the Government's Decree No. 95/2012/ND-CP dated November 12, 2012 defining the functions, tasks, entitlements and organizational structure of the Ministry of Industry and Trade ;

Pursuant to the Government’s Decree No.83/2014/ND-CP on petrol and oil business dated September 03, 2014;

Pursuant to the Government’s Decree No.177/2013/ND-CP detailing a number of articles of the Law on prices dated November 14, 2013;

Pursuant to the Government’s Decree No.08/2015/ND-CP detailing the implementation of the Law on Customs in respect of customs procedures, inspection, supervision and control;

Pursuant to the Government’s Decree No.12/2015/ND-CP dated February 12, 2015 providing guidance on the implementation of the Law No.71/2014/QH13;

Pursuant to the Decision No.53/2012/QD-TTg on the route maps on the Biofuel -traditional fuel blending ratio dated November 22, 2012 by the Prime Minister ;

Pursuant to the Directive No.23/CT-TTg dated August 31, 2015 by the prime Minister on use, blending and distribution of Biofuel prescribed in the Decision No.53/2012/QD-TTg on the itinerary for application of the blending ratio between the bio fuel and traditional fuel dated November 22, 2012 by the Prime Minister;

The Minister of Finance and Minister of Industry and Trade hereby issues this Joint Circular on amendments to a number of articles of the Joint Circular No.39/2014/TTLT-BCT-BTC dated October 29, 2014 on determination of basic prices, establishment, management and allocation of Price Stabilization Fund sand control of petrol and oil prices under the government’s decree no.83/2014/ND-CP on petrol and oil business dated September 03, 2014.

Article 1.Amendments to a number of articles of the Joint Circular No.39/2014/TTLT-BCT-BTC

1. Article 3 is amended as follows:

a) The clause 1is amended as follows:

“1.Petrol and oil and relevant terminologies:

a) Petrol and oil herein refers to petrol and oil finished products including all types of petroleum , diesel fuel, kerosene, mazut, biofuel and other products used as engine fuels excluding qualified gases, compressed natural gas and jet fuels.

b) Biofuel herein refers to E5 and E10 petrol prescribed in the National Technical Regulation on gasoline, diesel fuel and biofuel issued together with the Circular No.22/2015/TT-BKHCN dated November 11, 2015 by the Ministry of Science and Technology and adjustments, amendments or replacement documents ( if any).

c) E5 petrol herein refers to a mixture of unleaded petrol and ethanol with the ethanol concentration ranging from 4% to 5% by its volume (hereinafter referred to as "E5”)

d) E10 petrol herein refer to a mixture of unleaded petrol and ethanol with the ethanol concentration ranging from 9% to 10% by its volume (hereinafter referred to as "E10”)

dd) Fuel ethanol includes denatured fuel ethanol and undenatured fuel ethanol. Undenatured fuel ethanol (hereinafter referred to as “E100”) refers to ethanol which contains common substances including water produced from the fuel production. Denatured ethanol refers to undenatured ethanol which is added with denaturants or naphtha with the concentration of from 1.96% to 5% of its volume”.

b) Clauses 6 and 7 are supplemented as follows:

“6.Declaration of prices of domestic petrol and oil finished products refers to the submission of the schedule of petrol and oil finished product selling prices to the State competent authority (the Ministry of Industry and Trade and Ministry of Finance) by wholesalers and distributors as the price is adjusted.

7. Registration of domestic prices of petrol and oil finished products refers to the submission of the written analysis of petrol and oil finished product pricing and the price schedule to the State competent authority (the Ministry of Industry and Trade and Ministry of Finance) by wholesalers and distributors prior to the price adjustment and within the duration of price stabilization under regulation of laws.

2. The Article 4 is amended as follows:

Clause 1 of Article 4 is amended as follows:

“1.Basic price of petrol and oil products (except for E5 and E10) is inclusive of and equals (=) {CIF price plus (+) import duty plus (+) special excise duty} multiplied by (x) foreign exchange rate plus (+) VAT plus (+) regulated operating cost plus (+) amount of funding for the Price Stabilization Fund plus (+) expected profit plus (+) Environment protection fees plus (+) amount of other taxes, fees, or funding under the current regulations of laws. Where:

CIF price equals (=) world oil price (or Platts Singapore price) plus (+) expenses for transport of petrol and oil from overseas to Vietnam’s port (hereinafter referred to as “freight charge”). The volume of petrol and oil for pricing shall be measured at the actual temperature. The world oil price is the average price of the last 15 days immediately preceding the pricing date of compulsory petrol and oil reserve period (hereinafter referred to as “reserve period”) as prescribed in clause 1, Article 31 of the Decree No.83/2014/ND-CP

The freight charge equals (=) +/- Premium plus (+) hedge premiums plus (+) freight charge plus (+) reasonably incurring fees or charges (if any) related to importation where the hedge premium and freight charge shall be determined according to the progressive average of wholesalers.

- The foreign exchange rate for CIF price is the average closing price of 15 days immediately preceding the pricing date of the reserve period of Joint-Stock Commercial Bank for Foreign Trade of Vietnam.

- The foreign exchange rate for calculation of import duty and excise duty is prescribed in clause 3, Article 21 of the Decree No.08/2015/ND-CP dated January 21, 2015 and clause 6, Article 5 of the Government’s Decree No.12/2015/ND-CP dated February 12, 2015, and replacements or amendments (if any).

- Import duties, excise duties, VAT and environmental protection fees and funding shall be calculated in accordance with regulations of laws”.

b) Clauses 2 and 3 are supplemented as follows:

“ E5, E10 basic price is inclusive of and equals (=) {percentage (%) of unleaded petrol by its volume multiplied by (x) ( CIF price of unleaded petrol plus (+) import duty) multiplied by (x) foreign exchange rate plus (+) percentage (%) of fuel ethanol by its volume multiplied by (x) fuel ethanol price} plus (+) excise duty plus (+) VAT plus (+) regulated operating cost plus (+) amount for funding for the Price Stabilization Fund plus (+) expected profit plus (+) environmental protection fee plus (+) amount of other taxes, fees and funding under current regulations of laws. Where:

- The CIF price, foreign exchange rate, import duties, excise duties, VAT and environmental protection fee and other taxes, charges and funding shall be calculated as stipulated the clause 1”.

- The unleaded petrol for calculation of E5 and E10 basic price herein is RON 92.

- Fuel ethanol for calculation of E5 and E10 basic price herein is undenatured ethanol (E100).

- The percentage of unleaded petrol and fuel ethanol by volume for the calculation of E5 and E10 basic price herein is the highest permissible blending ratio by type of E5, E10 petrol under regulations of the competent authority. The actual permissible blending ratio shall be within the limits set by the competent authority.

- The undenatured fuel ethanol (E100) price as the basis for determination of E5 and E10 basic prices is the price of E100 at the actual temperature , exclusive of VAT, and equals (=) the average price of E100 prices in Vietnam and CIF price of imported E100 (if any) monthly declared or reported to the State regulatory authority ( the Office of price Administration- Ministry of Finance) and the Department of Domestic Market – Ministry of Industry and Trade by Vietnam's producers and importers under regulations of laws (if any)

E100 price herein shall be reviewed every month and the average price of E100 in this month shall be applied for to price the E5, E10 in the immediately succeeding month.

In case of adjustments to E100 price, E100 producers and importers shall submit price reports and analysis of the necessity for price adjustments enclosed with relevant invoices or documentation by 25^th of every month and shall be legally liable for the reports. In case the 25^th falls into legal holidays, the price report shall be submitted on the immediately preceding working days.

Price declaration, where necessary, shall be made in accordance with regulations of laws on price declaration.

3. The Ministry of Finance shall take charge of determining the average price of E100 under clause 2 of this Article”.

c) The clause 2 is amended into clause 4 as follows:

“4. Wholesalers shall submit reports on variations of freight charges and costs of E5, E10 blending (if any) to the Office of Price Administration- Ministry of Finance before March 31^st of the immediately succeeding fiscal year.

The Office of Price Administration- Ministry of Finance shall take charge of and cooperate with the Department of Domestic Market – Ministry of Industry and Trade to aggregate, assess, inspect and survey the price, where necessary, for appropriate adjustments according to reports submitted by E100 wholesalers and producers and traders.

3. The clause 1 of Article 5 is amended as follows:

a) Points a and b shall be amended as follows:

a) Regulated operating costs mean the wholesaler’s expenses for sale of petrol and oil on the domestic market ( both wholesale and retail prices at the actual temperature) including expenses for distributors, retailers, general agents and agents, particularly variable cost such as depreciation of E5, E10 blending systems, losses during blending, operating costs, fees for assessment of conformity, financing costs, incurring freight charges due to changes in itinerary, costs for renovating business facilities, etc. The maximum regulated operating costs applied to determine the basic price are as follows:

- Unleaded petrol: 1,050 dong/liter;

- E5 and E10 petrol: 1,250 dong/liter;

- Diesel fuel and kerosene: 950 dong/liter;

- Mazut fuel: 600 dong/liter;

The regulated operating costs for sale of diesel fuel and kerosene are inclusive of wholesale and retail prices. The regulated operating cost for sale of mazut fuel is inclusive only wholesale price.

In case of distance from ports, petrol and oil warehouses and producing facilities, if the reasonable audited regulated operating cost (for both wholesale and retail) is higher than that set above, the wholesaler shall be responsible for their income and shall be entitled to decide the selling price within the local area to offset their exceeding reasonable operating costs but the selling price shall not exceed 2% of the published priced at the same time.

b) Wholesalers shall annually independently audit the petrol and oil operating costs, freight charges and costs for blending E5 and E10, and report to the Office of Price Administration - Ministry of Finance and the Department of Domestic Market - Ministry of Industry and Trade before March 31^st of the immediately succeeding fiscal year. The office of Price Administration - Ministry of Finance and the Department of Domestic market - Ministry of Industry and Trade have the right to request wholesalers to summit surprised reports, where necessary.

The Office of Price Administration- Ministry of Finance shall take charge of and cooperate with the Department of Domestic Market – Ministry of Industry and Trade shall aggregate, assess, inspect and survey the prices, where necessary, for appropriate adjustments according to wholesalers’ reports”.

b) Point d is supplemented as follows:

“d) Every distributor shall be entitled to decide the retail prices of petrol and oil products (wholesale price of mazut fuel) at regions distant from petrol and oil ports, wholesale warehouses and producing facilities to offset their incurring reasonable operating costs for selling petrol and oil in distant areas but the price shall not exceed 2% of the basic price published at the same time “.

4. The clause 1 of Article 6 is amended as follows:

“1. Wholesalers shall be entitled to proactively apply trading methods in conformity with the global practices and regulations of laws, and shall be responsible for their business performance, set up the Price Stabilization Fund and only use the Price Stabilization Fund for petrol and oil price and market stabilization under regulations of laws.

The Price Stabilization Fund shall be accounted and monitored via a deposit account at the Commercial bank in Vietnam. In case the balance of the Price Stabilization Fund is of 300 billion dong or more, the wholesaler shall do accounting and keep track of the Price Stabilization Fund via a deposit account at a different commercial bank in Vietnam. Wholesalers shall select commercial banks that are legally operated in Vietnam and provide high-quality and reliable services and shall be liable for the selection of commercial banks for the security of Price Stabilization Fund account.

The wholesaler shall play as the accountholder and follow procedures for registration of accounts, collection and allocation of the Price Stabilization Account via its deposit account and report the name, address, contact number of the commercial bank where the Price Stabilization Fund account is registered to the Office of Price Administration – Ministry of Finance and the Department of Domestic Market – Ministry of Industry and Trade and make information prescribed in clause 3, Article 39 of the Decree No.83/2014/ND-CP publicly available.

Article 2. Entry into force

This Circular enters into force from August 15, 2016. /.