Thông tư liên tịch 39/2014/TTLT-BCT-BTC

JOINT CIRCULAR

ON METHOD OF DETERMINATION OF BASIS PRICES; MECHANISM FOR CREATION, MANAGEMENT AND USE OF PRICE STABILIZATION FUND AND CONTROL OF PETROL AND OIL PRICES AS PRESCRIBED IN DECREE NO. 83/2014/NĐ-CP DATED SEPTEMBER 3, 2014 OF THE GOVERNMENT ON TRADING IN PETROL AND OIL

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 on June 17, 2003;

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

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

Pursuant to Decree No. 83/2014/NĐ-CP dated September 3, 2014 of the Government on trading in petrol and oil;

Pursuant to Decree No. 177/2013/NĐ-CP dated November 14, 2013 of the Government on guidelines for the Law on prices;

Pursuant to Decree No. 129/2004/NĐ-CP dated May 31, 2004 of the Government on guidelines for the Law on Accounting for business activities;

The Minister of Industry and Trade and the Minister of Finance jointly issue a Joint Circular on method of determination of basis prices; mechanism for creation, management and use of price stabilization fund and control of petrol and oil prices as prescribed in Decree No. 83/2014/NĐ-CP dated September 3, 2014 of the Government on trading in petrol and oil:

Chapter 1

GENERAL PROVISIONS

Article 1. Scope

This Circular promulgates method of determination of basis prices; mechanism for creation, management and use of price stabilization fund and control of petrol and oil prices; inspection of estimated costs and profits used for determination of basis prices, appropriation and use of Price stabilization fund for petrol and oil (hereinafter referred to as Price stabilization fund).

Article 2. Regulated entities

1. This Circular applies to wholesale traders in petrol and oil, distributors of petrol and oil (hereinafter referred to as wholesale traders and distributors) as prescribed in Decree No. 83/2014/NĐ-CP dated September 3, 2014 of the Government on trading in petrol and oil and relevant legal documents.

2. This Circular does not apply to traders who import, produce and prepare petrol and oil for their own use without selling them on the market under regulations of law; traders who are permitted to import petrol and oil as prescribed in the Investment Law to be used as samples for advertisement or for display in fairs and exhibitions, or as refundable or non-refundable aid; wholesale traders who purchase commercial petrol and oil from other wholesale traders to provide petrol and oil for domestic market; and wholesale traders who purchase commercial petrol and oil as materials for manufacture of commercial petrol and oil.

Article 3. Interpretation of terms

For the purposes of this Circular, these terms below shall be construed as follows:

1. Petrol and oil mean types of commercial petrol and oil, including: petrol, diesel oil, kerosene, fuel oil and other products used as engine fuel; excluding: liquefied gases, jet fuel and compressed natural gases.

2. World petrol and oil prices ,which is used as the basis for calculation of CIF price, mean the prices of commercial articles of petrol and oil which are actually transacted on the Singapore market and daily average prices published by Platt's Singapore (MOP's: Mean of Platt of Singapore), hereinafter referred to as Platt Singapore price.

3. Petrol and oil retail prices mean the prices posted up at petrol and oil retail stations.

4. Basis prices of popular articles of petrol and oil on the market shall the bases for state management agencies to control petrol and oil retail prices on the domestic market.

5. Price stabilization fund for petrol and oil means a financial fund which is not included in the government budget but it constitutes the basis prices and it only used to stabilize market and domestic petrol and oil prices as prescribed.

Chapter 2

METHOD OF DETERMINATION OF BASIS PRICES

Article 4. Basis prices

1. Basis price of an article of petrol and oil shall equal (=) {CIF price plus (+) import duty plus (+) special excise tax} multiplied by (x) foreign exchange rate plus (+) VAT plus (+) estimated business costs plus (+) appropriation for Price stabilization fund plus (+) estimated profits plus (+) environmental protection tax plus (+) other fees or charges and other appropriations as prescribed in regulations of law in force. Where:

- CIF price equals (=) world petrol and oil price (Platt Singapore price) plus (+) expenses incurred from transportation of petrol and oil to a Vietnamese port. Above factors shall be determined at an actual temperature. In which, the world petrol and oil price shall equal (=) average price of prices in 15 days preceding the date on which the price of the compulsory petrol and oil reserve cycle is calculated as prescribed in Clause 1, Article 31 of Decree No. 83/2014/NĐ-CP.

Expenses incurred from transportation of petrol and oil to a Vietnamese port equal (=) plus (+) or minus (-) premium plus (+) insurance premium plus (+) freight for transportation to the Vietnamese port plus (+) reasonable costs incurred during import process (if any); in which the insurance premium, freight for transportation to the Vietnamese port shall be determined according to the average costs actually incur at the wholesale traders.

- Foreign exchange rate for calculation of CIF price is the foreign currency selling rate applied by the Joint-Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) which is the average price of prices in 15 days preceding the date on which the price of the compulsory petrol and oil reserve cycle is calculated as prescribed in Clause 1, Article 31 of Decree No. 83/2014/NĐ-CP.

- Foreign exchange rate for calculation of import duty and excise tax which is the basis for determination of the basis price (for an article of petrol and oil) is the exchange rate prescribed in law on taxes, which is the average price of prices in 15 days preceding the date on which the price of the compulsory petrol and oil reserve cycle is calculated as prescribed in Clause 1, Article 31 of Decree No. 83/2014/NĐ-CP.

- Import duty, special excise tax, VAT, environmental protection tax; other taxes, fees and appropriations shall comply with regulations of law.

2. Every year, each wholesale trader must check fluctuations in expenses incurred from transportation of petrol and oil to Vietnamese ports and then send reports to the Ministry of Finance (Department of price management) and the Ministry of Industry and Trade (Department of domestic market) not later than March 31 of the subsequent fiscal year.

On the basis of reports of the wholesale traders, the Ministry of Finance (Department of price management) shall take charge and cooperate with the Ministry of Industry and Trade (Department of domestic market) in collection, assessment, inspection and actual survey (if necessary) in order to adjust appropriate prices.

Article 5. Estimated business costs and estimated profits of petrol and oil trading for determination of basis prices

1. Estimated business costs of trading in petrol and oil:

a) Estimated business costs of petrol and oil trading mean costs of sales of domestic petrol and oil (wholesale costs, retail costs at an actual temperature) paid by wholesale traders (including costs paid to distributors, retailers, general agents or agents of petrol and oil), which are used for determination of maximum basis prices as follows:

- Estimated business cost of trading in petrol is: VND 1,050 per liter;

- Estimated business costs of trading in diesel oil or kerosene is: VND 950 per liter;

- Estimated business cost of trading in fuel oil is: VND 600 per kilogram.

In which, prices of petrol, diesel oil or kerosene include both wholesale costs and retail costs; but the fuel oil only includes wholesale costs.

Regarding administrative divisions which are far from ports, wholesale depots, petrol and oil producers having reasonable business costs (wholesale costs and retail costs) (audited by state audit or an independent audit company) higher than above costs, each wholesale trader shall balance, decide and take responsibility for their business results; concurrently, they are entitled to decide actual selling prices in such administrative divisions to cover the reasonable business costs incurred, provided that the selling price of an article of petrol and oil does not exceed 2% of its basis price announced at the same time;

b) Every year, each wholesale trader must audit their business costs separately, check, synthesize and then send reports to the Ministry of Finance (Department of price management), The Ministry of Industry and Trade (Department of domestic market) not later than March 31 of subsequent fiscal year.

If necessary, the Ministry of Finance (Department of price management), the Ministry of Industry and Trade (Department of domestic market) shall request the wholesale traders for irregular reports.

On the basis of reports of the wholesale traders, the Ministry of Finance (Department of price management) shall take charge and cooperate with the Ministry of Industry and Trade (Department of domestic market) in collection, assessment, inspection and actual survey (if necessary) for appropriate adjustments;

c) An adjustment in maximum estimated business costs shall be announced by the Ministry of Finance to suit the actual business condition of wholesale traders in each period.

2. Estimated profit means the maximum profit from trading in domestic petrol and oil trading earned by wholesale traders as the basis for calculation of basis prices of any articles of petrol and oil, which is VND 300 per liter or kg at an actual temperature. An adjustment in maximum estimated profit shall be announced by the Ministry of Finance to suit the actual business condition of wholesale traders in each period.

Actually earned profits depend on business results of traders.

Chapter 3

PRICE STABILIZATION FUNDS

Article 6. Mechanism for creation of Price stabilization funds

1. Wholesale traders may actively carry on businesses in petrol and oil in conformity with international practice and regulations of law, and shall take responsibility for their business results. They shall appropriate for their Price stabilization funds and only use these funds to stabilize domestic petrol and oil prices as prescribed.

A Price stabilization fund shall be separately accounted and recorded to a deposit account at a commercial bank operating lawfully in Vietnam by a wholesale trader where that wholesale trader usually enters into transactions. The wholesale trader shall be the owner of such account and may open, create, credit to or debit from the deposit account of Price stabilization fund; concurrently, it shall send a notification of name, address, contact information of the commercial bank where the wholesale trader opened the account of Price stabilization fund to the Ministry of Finance (Department of price management) and The Ministry of Industry and Trade (Department of domestic market) and disclose information as prescribed in Clause 3 Article 39 of Decree No. 83/2014/NĐ-CP

2. Price stabilization fund shall be appropriated regularly and continuously by a specific amount of money in the basis price of any article of petrol and oil, which is VND 300 per liter at an actual temperature pertaining to petrol, diesel oil or kerosene and VND 300 per kilogram pertaining to fuel oil actually consumed as prescribed in Clause 9 Article 3 of Decree No. 83/2014/NĐ-CP

If necessary, the Ministry of Industry and Trade and the Ministry of Industry and Trade shall adjust the appropriation amount and time for appropriation for Price stabilization funds in conformity with the market fluctuations and send notifications of adjustments to wholesale traders.

3. The Ministry of Industry and Trade and the Ministry of Industry and Trade shall notify wholesale traders of the time in which the appropriation of Price stabilization fund is adjusted in following cases:

a) If the basis price (hereinafter construed as the basis price of any article of petrol and oil) increases by more than seven percents (>07%) in comparison with the basis price of the previous period or the increase in petrol and oil prices creates negative impacts on socio-economic development and people’s lives, the appropriation of Price stabilization fund shall decrease by less than the regulated appropriation prescribed in Clause 2 of this Article;

b) When the basis price decreases in comparison with the price before adjustment as prescribed in Point a of this Clause, the Ministry of Industry and Trade and the Ministry of Finance shall notify of time and appropriation amount for Price stabilization funds.

4. Total appropriation for a Price stabilization fund shall equal the appropriation prescribed in Clause 2 and Clause 3 of this Article multiplied by (x) output of petrol and oil at an actual temperature consumed in domestic market during the period in which the Price stabilization fund is appropriated.

Closing balance of a Price stabilization fund equals (=) Opening balance of Price stabilization fund plus (+) total appropriation for Price stabilization fund during the period minus (-) total usage of Price stabilization fund during the period plus (+) profit on the positive balance of Price stabilization fund during the period minus (-) profit on the negative balance of Price stabilization fund during the period.

Article 7. Mechanism for use of Price stabilization fund

1. Entities eligible for use of Price stabilization fund

a) Any wholesale trader who appropriates for Price stabilization fund as prescribed shall be eligible for use of Price stabilization fund to stabilize market and petrol and oil prices as prescribed in regulations of the Ministry of Industry and Trade and the Ministry of Finance;

b) Wholesale traders who are no longer wholesale traders in petrol and oil as prescribed in regulations of law:

- Acquisition, consolidation, joint venture or division of enterprises: the balance of Price stabilization fund shall be transferred to balance of the wholesale trader which is the acquiring enterprise (for acquisition) and new enterprise (for consolidation, joint venture or division of enterprises) as prescribed in regulations of law (including both positive and negative balance of Price stabilization fund). The Ministry of Industry and Trade and the Ministry of Finance shall inspect and send notification of processing results for each specific case.

- With regard to the case in which a wholesale trader goes bankrupt, is dissolved or its business permit for import/export of petrol and oil is revoked or the wholesale trader is no longer the trader in import/export of petrol and oil:

+ If there is any balance in Price stabilization fund, the trader must pay the balance to government budget;

+ Before they are no longer wholesale traders, if their Price stabilization fund are negative because the Price stabilization fund is used to stabilize market and petrol and oil prices, the Ministry of Industry and Trade and the Ministry of Finance shall inspect and send reports to the competent agency for consideration and handling measures for each case, and send notification of handling results to each case.

2. Method for using Price stabilization fund

a) Do not use Price stabilization fund to grant business capital or for other purposes other than regulations in Clause 1 Article 6 of this Circular;

b) Price stabilization fund is used in following cases:

- If the basis price in the announced period increases by 3 or less than 3 percents (≤ 03%) in comparison with basis price of the previous period, but such increase creates negative impacts on socio-economic development and people’s lives, the Ministry of Industry and Trade and the Ministry of Finance shall consider using Price stabilization fund for control of petrol and oil prices;

- If the basis price increases by more than 3 percents (>3%) up to 4 percents (≤ 04%) in comparison with basis price of the previous period, the wholesale trader may increase selling price by 3 or less than percents (≤ 03%) and use Price stabilization fund for price in excess of more than 3 percents (>03%) up to 4 percents (≤ 04%). Wholesale traders shall send price declarations, estimates of adjusted prices to the Ministry of Industry and Trade and the Ministry of Finance;

- If the basis price increases by more than 4 percents (>4%) up to 7 percents (≤ 07%) in comparison with basis price of the previous period, the wholesale trader may increase selling price by up to 3% plus (+) 50% of the difference between the amount in surplus of 3% to the actual increase (from >3% to ≤ 7%); remaining 50% shall be covered by Price stabilization fund. Wholesale traders shall send price declarations, estimates of adjusted prices to the Ministry of Industry and Trade and the Ministry of Finance;

c) Use Price stabilization fund as prescribed in Point b of this Clause in accordance with period between 2 times of price adjustments;

d) If the basis price increases by more than 7 percents (07%) in comparison with the basis price of the previous period or such increase creates negative impacts on socio-economic condition and people’s lives, the Ministry of Industry and Trade shall cooperate with the Ministry of Finance in report to the Prime Minister for consideration.

3. Wholesale traders shall stop using Price stabilization fund when they receive notification of the Ministry of Industry and Trade and the Ministry of Finance.

4. Procedures for use of Price stabilization fund

a) On the basis of declaration of adjusted prices of wholesale traders in accordance with regulations of law on basis, rules, methods and procedures for determination of petrol and oil prices; Interdepartmental team of control of petrol and oil prices shall check and propose using or not using or stopping using or adjusting rate of use of Price stabilization fund in order for the Ministry of Industry and Trade and the Ministry of Finance to decide;

b) If the basis price in the announced period increases by 3 or less than 3 percents (≤ 03%) in comparison with basis price of the previous period, but the increase in the basis price create negative impacts on socio-economic condition and people’s lives, the Ministry of Industry and Trade and the Ministry of Finance shall consider using Price stabilization fund at the same time in which the basis price is announced;

c) If the basis price increases by more than 3 percents (>3%) up to 7 percents (≤ 07%) in comparison with basis price of the previous period, within 03 working days from the date on which the price declaration is received, the Ministry of Industry and Trade and the Ministry of Finance shall send notification of price adjustment and use of Price stabilization fund (if any) to wholesale traders.

After 03 working days from the date on which the price declaration is received, if the Ministry of Industry and Trade and the Ministry of Finance fails to send notification of price adjustment or use of Price stabilization fund, the wholesale trader may adjust the retail price (wholesale price for fuel oil) provided that it does not exceed the basis price of the announced period and exceed 7 percents (>07%) in comparison with basis price of the previous period;

d) When receiving the notification of time and usage of Price stabilization fund, the wholesale trader shall actively withdraw deposit account of Price stabilization fund and do accounting and settlement as prescribed in Article 8 of this Circular.

Article 8. Accounting and settlement of Price stabilization fund

1. Wholesale traders must keep records of appropriations for Price stabilization fund to costs of goods sold sufficiently and accurately.

2. Price stabilization fund shall be used as prescribed in Article 7 of this Circular and recorded to decreases in costs of goods sold,

3. The interests of balances of deposit account of Price stabilization fund shall be determined according to the interest rates applying to the payment deposit account of the commercial bank where the wholesale trader opened deposit account of Price stabilization fund in the same period. The interests earned from positive balances of Price stabilization fund at the commercial bank shall be recorded to an increase in the Price stabilization fund account. The management and control of deposit account of Price stabilization fund and accounting must be public and transparent.

4. If the wholesale trader uses Price stabilization fund according to the notification of the Ministry of Industry and Trade and the Ministry of Finance, but there is no more balance of deposit account of Price stabilization fund (balance of deposit account of Price stabilization fund at the commercial bank equals (=) 0), the wholesale trader is entitled to apply for loans to cover and charge interests up to the interest rates applying to the payment deposit account of the commercial bank where the wholesale trader opened deposit account of Price stabilization fund for the excess of use of Price stabilization fund (negative balance of Price stabilization fund). The interest incurred from negative Price stabilization fund (the amount which the wholesale trader applies for additional loan in case of negative Price stabilization fund) shall be recorded to a decrease in Price stabilization fund account. When the balance of Price stabilization fund is positive, the refund shall be made every month and the fund shall be settled at the end of the fiscal year.

5. At the end of the fiscal year, in case of residual Price stabilization fund, the wholesale trader is entitled to transfer them to the subsequent fiscal year.

6. Accounting, reporting and information disclosure of Price stabilization fund:

a) For wholesale traders

Every 25^th:

- Each wholesale trader is required to announce opening balance, appropriation for Price stabilization fund, usage of Price stabilization fund, closing balance of Price stabilization fund of the previous month. Concurrently, total appropriation of Price stabilization fund of previous month shall be transferred to deposit account of Price stabilization fund of the commercial bank where the wholesale trader opened the account of Price stabilization fund;

- Concurrently, the wholesale trader is entitled to cover the amount of usage of Price stabilization fund of the previous month according to the notification of the Ministry of Industry and Trade and the Ministry of Finance (if any);

- Wholesale traders must send reports on implementation of Price stabilization fund to the Ministry of Industry and Trade (Department of domestic market) and the Ministry of Finance (Department of price management), in particular:

+ Opening balance of Price stabilization fund of reporting period (if any);

+ Appropriation of Price stabilization fund of reporting period (if any);

+ Usage of Price stabilization fund of reporting period (if any);

+ Interest incurred from the positive or negative balance of Price stabilization fund (if any);

+ Closing Price stabilization fund of reporting period.

- If the 25^th of a month falls on a day off or a holiday as prescribed, the wholesale traders must make appropriations and transfer money to the first working day after the 25^th;

b) For the commercial bank where the wholesale opening account of Price stabilization fund

- Every 1^st, the commercial bank where the wholesale opened deposit account of Price stabilization fund must send a statement about transactions in deposit account of Price stabilization fund of wholesale traders in the previous month to the Ministry of Industry and Trade (Department of domestic market) and the Ministry of Finance (Department of price management). Contents of the statement include:

+ Opening balance of Price stabilization fund of reporting period (if any);

+ Appropriation of Price stabilization fund of reporting period (if any);

+ Usage of Price stabilization fund of reporting period (if any);

+ Interest incurred from the balance of positive or negative Price stabilization fund (if any);

+ Closing Price stabilization fund of reporting period.

- If the 1^st of a month falls on a day off or a holiday as prescribed, the commercial bank where the wholesale opened deposit account of Price stabilization fund must send statements about transactions in deposit account of Price stabilization fund of the wholesale traders on the first working day after the 1^st.

c) At the end of the fiscal year, the wholesale trader and the commercial bank where the wholesale trader opened deposit account of Price stabilization fund must prepare reports on the appropriation and use of Price stabilization fund; statement of interests from deposit account which are recorded to increases in Price stabilization fund account and interests of loans incurred monthly due to advance of capital to stabilize price due to the negative Price stabilization fund; and closing balance of Price stabilization fund, and then send them to the Ministry of Finance and the Ministry of Industry and Trade for inspection.

If necessary, the Ministry of Industry and Trade and the Ministry of Finance shall request the wholesale trader and the commercial bank where the trader opened deposit account of Price stabilization fund for irregular report.

Article 9. Method of accounting and financial statement of Price stabilization fund

1. Account 357 - Price stabilization fund shall be added

Account 357 shall have sub-accounts:

a) Account 3571 - Price stabilization fund

Account 3571 shall be used to record current balance, increases and decreases in Price stabilization fund of a wholesale trader. Accounting and method of accounting for this account shall follow rules below:

Structure and contents of account 3571 - Price stabilization fund:

Debit - Decreases in Price stabilization fund due to its usage as prescribed in regulations of law.

Credit - Increases in Price stabilization fund due to its appropriation as prescribed in regulations of law.

Credit balance – Balance of Price stabilization fund at the reporting time.

Debit balance – Balance of Price stabilization fund at the reporting time.

b) Account 3572 - Price stabilization fund

Account 3572 shall be used to record current balance, increases and decreases in Price stabilization fund of a wholesale trader. Accounting and method of accounting for this account shall follow rules below:

Structure and contents of account 3572 - Price stabilization fund:

Dr – Interests payable for negative Price stabilization fund, wholesale traders shall calculate as prescribed in Clause 4 of Article 8.

Cr – Interests payable for positive Price stabilization fund, commercial bank shall pay interests as prescribed in Clause 4 of Article 8.

Credit balance – Balance of interests of Price stabilization fund at the reporting time.

Debit balance – Uncovered interests of Price stabilization fund at the reporting time.

2. Wholesale traders must open a private deposit account of Price stabilization fund at a commercial bank to monitor fluctuations in cash flow for appropriation and use of Price stabilization fund and interests incurred from positive or negative Price stabilization fund.

3. Method of accounting for appropriation and use of Price stabilization fund

a) Every month, according to appropriation table of Price stabilization fund, the wholesale trader shall record as follows:

Dr 632 – Costs of goods sold: Monthly appropriation for Price stabilization fund as prescribed

Cr 3571 - Price stabilization fund

Concurrently, every 25^th, according to the appropriation table of Price stabilization fund of the previous month, the wholesale trader shall make a Payment order to transfer money from payment deposit account to deposit account of Price stabilization fund and the following accounts shall be recorded:

Dr 1121 – Cash in bank – Deposit of Price stabilization fund in details

Cr 1121 – Cash in bank – Payment deposit in details

b) Every month, according to the statement of use of Price stabilization fund as specified in the notification of the Ministry of Industry and Trade and the Ministry of Finance, the wholesale trader shall record as follows:

Dr 3571 - Price stabilization fund

Cr 632 – Costs of goods sold

Concurrently, every 25th, according to the appropriation table of Price stabilization fund of the previous month, the wholesale trader shall make a Payment order to transfer money from deposit account of Price stabilization fund to payment deposit account and the following accounts shall be recorded:

Dr 1121 – Cash in bank – Payment deposit in details

Cr 1121 – Cash in bank – Deposit of Price stabilization fund in details

c) If the 25th of a month falls on a day off or a holiday as prescribed, the wholesale traders must make appropriations and transfer money to the first working day after the 25th;

d) Every month, if the balance of deposit account of Price stabilization fund is positive and interests of deposit incur, according to the credit note of the commercial bank, the wholesale trader shall record as follows:

Dr 1121 – Cash in bank – Deposit of Price stabilization fund in details

Cr 3572 – Interests of Price stabilization fund incurred

dd) According to the debit note of the commercial bank pertaining to monthly interests or statement of interests payable due to negative Price stabilization fund with the interests not exceeding  the interests applying to payment deposit account of the commercial bank for the use of the negative Price stabilization fund, the wholesale trader shall record as follows:

Dr 3572 – Interests of Price stabilization fund incurred

Cr 1121 – Cash in bank – Payment deposit in details

e) At the end of the year, if the wholesale trader may use Price stabilization fund to cover interests due to negative Price stabilization fund (if any), the wholesale trader shall record as follows:

Dr 3571 - Price stabilization fund

Cr 3572 – Interests of Price stabilization fund incurred

Or: when transferring balance of interests of Price stabilization fund to Price stabilization fund account, the following accounts shall be recorded:

Dr 3572 – Interests of Price stabilization fund

Cr 3571 - Price stabilization fund

4. Financial statement:

Item “Price stabilization fund" shall be added  -  code 340 in the Balance sheet. This item is used to record Price stabilization fund at the reporting time. The credit balance of account 357 “Price stabilization fund" which is determined according to balance between account 3571 and account 3572 shall be recorded to this item.

When analyzing the financial statement, the wholesale trader may eliminate the amount of money in the deposit account of Price stabilization fund and the balance of “Price stabilization fund” account on the financial statement to analyze and assess financial items.

Chapter 4

CONTROL OF PETROL AND OIL PRICES

Article 10. Establishment of Interdepartmental team of petrol and oil price control

The Ministry of Industry and Trade shall take charge and cooperate with the Ministry of Finance in issuance of Establishment decision of Interdepartmental group of petrol and oil price control (hereinafter referred to as Interdepartmental team) and assign tasks to members and introduce working regulations of the Interdisciplinary team.

Members of Interdepartmental team: The Team leader is the Director of Department of domestic market of the Ministry of Industry and Trade; the Vice team leader is the Director of Department of Price management of the Ministry of Finance; the Standing vice team leader is the Deputy Director of Department of domestic market of the Ministry of Industry and Trade; and relevant members affiliated to the Ministry of Industry and Trade or the Ministry of Finance.

Interdepartmental team of petrol and oil price control shall be located at Department of domestic market (the Ministry of Industry and Trade).

Article 11. Tasks and entitlements of Interdepartmental team

1. Tasks of Interdepartmental team

a) Giving advices to Leader of the Ministry of Industry and Trade and the Ministry of Finance on control of petrol and oil prices as prescribed and in conformity with socio-economic condition and world petrol and oil prices in each period;

b) Calculating and publishing basis prices and difference in basis prices of the announced period in comparison with basis price of the previous period on websites of the Ministry of Industry and Trade and the Ministry of Finance every 15 days, from November 1, 2014 and as prescribed in Clause 9 Article 3 of Decree No. 83/2014/NĐ-CP;

c) Receiving price declarations, estimates of adjusted prices, price registration, decision on price adjustments of wholesale traders, petrol and oil distributors, depending on cases as prescribed in Article 39 of Decree No. 83/2014/NĐ-CP  Observing and inspect the adjustments in petrol and oil prices of wholesale traders or petrol and oil distributors;

d) Managing price declarations, estimates of adjusted prices, price registration of traders, reports on control of petrol and oil prices of Interdepartmental team sent to the Leader of the Ministry of Industry and Trade and the Ministry of Finance as prescribed in regulations on confidential documents.

2. Entitlements of Interdepartmental team

a) Requesting traders to provide explanation for the price declarations, estimates of adjusted prices, price registration, decision on price adjustments those documents fail to comply with regulations of law;

b) Signing notifications of price control sent to relevant traders under authorization from the Leader of the Ministry of Industry and Trade and the Ministry of Finance.

Article 12. Working regime and rules of Interdepartmental team

1. Working regime of Interdepartmental team

a) Interdepartmental team performs tasks under part time basis;

b) Interdepartmental team may use the stamp of the Ministry of Industry and Trade and the Team leader may sign under order of the Minister of Industry and Trade within competence in control of petrol and oil prices;

c) Standing Vice team leader of Interdepartmental team shall perform tasks under assignment of the Team leader.

2. Working rules of Interdepartmental team

a) Interdepartmental team shall work on the principle of collectives. The Team leader shall assign tasks to members and take responsibility for reports on counseling sent to the Leader of the Ministry of Industry and Trade and the Ministry of Finance. Every member of Interdepartmental team shall take responsibility for their counseling or requests pertaining to control of petrol and oil prices to the Team leader and the Leader of the Ministry of Industry and Trade and the Ministry of Finance;

b) During working time, each member of Interdepartmental team must comply with assignment of the Team leader; independently offer opinions but cooperate in exchange in information about control of petrol and oil prices; and each member may reserve their opinions but they are required to comply with the decision of the Leader of the Ministry of Industry and Trade and the Ministry of Finance. If there is any difference between two Ministries, the Ministry of Industry and Trade shall be entitled to make decision and take responsibility for such decision; if necessary, the Ministry of Industry and Trade shall send reports to the Prime Minister;

c) Confidential rules. Do not reveal information about control of petrol and oil prices, misuse assignments for out of selfish interest.

Article 13. Announcement of basis prices and adjustments in petrol and oil retail prices

1. The Ministry of Industry and Trade and the Ministry of Finance shall calculate and announce basis prices according to price-announcing period as prescribed in Clause 9 Article 3 Article 38 of Decree No. 83/2014/NĐ-CP on websites of the Ministry of Industry and Trade and the Ministry of Finance.

If the announcing date of basis prices falls on a day off or a holiday as prescribed, the Ministry of Industry and Trade and the Ministry of Finance shall announce the basis prices on the first working date after the day off or the holiday of the price-announcing period.

2. According to the basis prices and usage of Price stabilization fund announced by the Ministry of Industry and Trade and the Ministry of Finance, wholesale traders or distributors may adjust retail prices (wholesale prices for fuel oil) as prescribed in Article 37 and Article 38 of Decree No. 83/2014/NĐ-CP and Clause 4 Article 7 of this Circular provided that they are not higher than basis prices announced by the Ministry of Industry and Trade and the Ministry of Finance as prescribed. In particular:

a) If the basis price increases by 3 or less than 3 percents (≤ 03%) in comparison with the basis price of the previous period; the Ministry of Industry and Trade and the Ministry of Finance shall announce the basis price without the usage of Price stabilization fund, the traders may adjust retail prices (wholesale prices for fuel oil) as prescribed in Point a Clause 3 Article 38 of Decree No. 83/2014/NĐ-CP.

b) If basis price increases by 3 or less than 3 percents (≤ 03%) in comparison with the basis price of the previous periods; but such increase create negative impacts on socio-economic condition and people’s lives, the Ministry of Industry and Trade and the Ministry of Finance shall announce the usage of Price stabilization fund at the same time with the basis prices. The traders may not adjust retail prices or may adjust retail prices provided that the adjusted price included usage amount of Price stabilization fund is not higher than the basis price of the announced period;

c) If basis price increases by more than 3 percents (> 03%) up to 7 percents (≤ 07%) in comparison with the basis price of the previous period; within 03 working days from the date on which the price declaration is received, Interdepartmental team must send notification of price adjustment and usage of Price stabilization fund (if any) to wholesale traders.

d) If the basis price increases by more than 3 percents (> 03%) up to 7 percents (≤ 07%) in comparison with the basis price of the previous period; within 03 working days from the date on which the price declaration and estimate of adjusted prices of the wholesale trader is received by the Ministry of Industry and Trade and the Ministry of Finance, but there is not any responses from the Ministry of Industry and Trade and the Ministry of Finance, the wholesale trader may adjust their retail price provided that it is not higher than the basis price of the announced period.

3. If the wholesale trader or distributer wishes to increase retail prices, they must make such adjustments in an announcing period; if they wish to decrease retail prices, they must make such adjustments at the announcing time.

Chapter 5

IMPLEMENTATION

Article 14. Effect

This Circular shall take effect from November 1, 2014. Circular No. 234/2009/TT-BTC dated December 9, 2009 of the Minister of Finance on creation, management and use of Price stabilization fund for petrol and oil as prescribed in Decree No. 84/2009/NĐ dated October 15, 2009 of the Government on trading in petrol and oil and other provisions in contrary with this Joint Circular shall be annulled.

Article 15. Implementation

1. The Ministry of Industry and Trade assigns Department of domestic market to take charge and cooperate with relevant units affiliated to the Ministry of Industry and Trade in performance of their assignments within their competence:

a) Taking charge and cooperate with the Ministry of Finance in control of petrol and oil prices, control of appropriation and use of Price stabilization fund, inspect and observe wholesale traders and distributors as prescribed in Point dd, Clause 1 Article 40 of Decree No. 83/2014/NĐ-CP;

b) Announcing information about petrol and oil on website of the Ministry of Industry and Trade as prescribed in Clause 2 Article 39 of Decree No. 83/2014/NĐ-CP.

2. The Ministry of Finance assigns Department of price management to take charge and cooperate with relevant units affiliated to the Ministry of Finance in performance of their assignments within their competence:

a) Taking charge and inspecting wholesale traders in implementation of regulations of Article 37 of Decree No. 83/2014/NĐ-CP and relevant taxes and fees. Cooperating with the Ministry of Industry and Trade in inspection of wholesale traders in implementation of regulations of Article 38 of Decree No. 83/2014/NĐ-CP;

b) Performing state management of prices. Cooperating with the Ministry of Industry and Trade in tasks as prescribed in Point b Clause 2 Article 40 of Decree No. 83/2014/NĐ-CP;

c) Taking charge and inspecting the control of petrol and oil prices; inspecting the appropriation and use of Price stabilization fund of the wholesale traders as prescribed in Clause 2 Article 39 of Decree No. 83/2014/NĐ-CP

3. Units affiliated to the Ministry of Industry and Trade, the Ministry of Finance; Services of Industry and Trade of wholesale-affiliated cities and provinces; relevant organizations or individuals, traders in petrol and oil shall take responsibility for implementation of this Circular.

4. Difficulties that arise during the implementation of this Circular should be reported to the Ministry of Industry and Trade and the Ministry of Finance for consideration and amendments./.