Circular 57/2018/TT-BTC guiding the implementation of Decree 29/2018/ND-CP stipulating the order and procedures for establishing people's ownership of property and handling of established assets All-people ownership promulgated by the Minister of Finance

CIRCULAR

ON GUIDELINES FOR SOME ARTICLES OF THE GOVERNMENT’S DECREE NO. 29/2018/ND-CP DATED MARCH 05, 2018 ON PROCEDURES FOR ESTABLISHING PUBLIC OWNERSHIP OF PROPERTY AND DISPOSAL OF PROPERTY WHOSE PUBLIC OWNERSHIP IS ESTABLISHED

Pursuant to the Law on Management and Use of Public Property dated June 21, 2017;

Pursuant to the Government’s Decree No. 29/2018/ND-CP dated March 05, 2018 on procedures for establishing public ownership of property and disposal of property whose public ownership, is established;

Pursuant to the Government’s Decree No.87/2017/ND-CP dated July 26, 2017 defining functions, tasks, entitlements and organizational structure of the Ministry of Finance;

At the request of the Director of the Department of Public Assets Management;

The Minister of Finance hereby promulgates a Circular on guidelines for some Articles of the Government’s Decree No. 29/2018/ND-CP dated March 05, 2018 on procedures for establishing public ownership of property and disposal of property whose public ownership is established.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Circular provides guidelines for some Articles of the Government’s Decree No. 29/2018/ND-CP dated March 05, 2018 on procedures for establishing public ownership of property and disposal of property whose public ownership is established (hereinafter referred to as “the Decree No.29/2018/ND-CP”). To be specific:

1. Transfer, receipt and storage of property whose public ownership is established.

2. Preparation of plans for disposal of property whose public ownership is established and disposal of property whose public ownership is established.

3. Management and use of proceeds earned from disposal of property whose public ownership is established.

Article 2. Regulated entities

1. Authorities that have the power to decide to establish public ownership of property

2. Authorities and organizations assigned to manage and dispose of property whose public ownership is established.

3. Other relevant organizations and individuals.

Chapter II

SPECIFIC PROVISIONS

Article 3. Transfer, receipt and storage of property whose public ownership is established

1. Confiscated exhibits and equipment used for committing administrative violations shall be stored as prescribed in the Government’s Decree No. 115/2013/ND-CP dated October 03, 2013, except the property specified in Clause 2 of this Article.

2. The property prescribed in Clause 2 Article 108 of the Law on Management and Use of Public Property and Clause 2 Article 17 of the Decree No. 29/2018/ND-CP must be transferred to a specialized authority for storage. To be specific:

a) National treasures, antiques and other historic or cultural valuables shall be transferred to:

- Vietnam National Museum of History;

- State museums of provinces where exhibits and equipment used for committing administrative violations are confiscated.

b) Weapons, explosives, combat gears, technical means, special vehicles and other national defense and security-related property that are confiscated by the competent authority affiliated to the Ministry of National Defense or Ministry of Public Security shall be stored by such authority.

Weapons, explosives, combat gears, technical means, special vehicles, and other national defense and security-related property that are confiscated by a competent authority affiliated to another authority shall be transferred to:

- Military Commands of provinces and central-affiliated cities where exhibits and equipment used for committing administrative violations are confiscated;

- Police authorities of provinces and central-affiliated cities where exhibits and equipment used for committing administrative violations are confiscated;

- Regulatory authorities that are permitted to use combat gears to perform professional duties.

c) Vietnamese currency, foreign currencies, valuable papers, gold, silver, precious stones and precious metals shall be transferred to State Treasuries of provinces (regarding the property confiscated by a central or provincial-level competent authority) or State Treasuries of districts (regarding the property confiscated by a commune or district-level competent authority) for storage. Regarding the valuable papers which can be converted into cash, it is required to convert them into cash that will be transferred to state budget as prescribed. The valuable papers cannot be converted into cash shall be transferred to the State Treasury for storage.

d) Parts (specimens) of precious forest animals in group IB shall be transferred to State Reserve Authorities affiliated to Ministry of Finance for storage according to the decision issued by the Prime Minister.

dd) Endangered and precious wood and other forest products that are not allowed to be used for commercial purposes except the property specified in Point d of this Clause; forest animals that are alive or get recovered after being rescued shall be transferred to the following authorities:

- Forest protection authorities of provinces (regarding the property confiscated by a central or provincial-level competent authority) or forest protection authorities of districts (regarding the property confiscated by a competent authority of the commune/district) where exhibits are confiscated;

- Zoos under the management of the State;

- Scientific research institutions (including propagation facilities), environmental education institutions, research-intensive institutes;

- Vietnam National Museum of Nature.

e) Endangered and precious aquatic animals that are not allowed to be used for commercial purposes shall be transferred to:

- Regional fisheries resources surveillance offices or fisheries authorities of provinces or protected areas for living aquatic animals;

- Vietnam National Museum of Nature;

- Scientific research institutions (including propagation facilities, education institutions, research-intensive institutes).

g) Radioactive substances, nuclear materials, radiation devices and nuclear devices shall be transferred to Vietnam Atomic Energy Institute affiliated to the Ministry of Science and Technology.

3. In case exhibits or convict’s property is confiscated as prescribed by the Criminal Code and Criminal Procedure Code, the decision on disposal of the confiscated property issued by a competent authority is in effect and the exhibits are confiscated by an investigating authority or People’s Procuracy, the units in charge of property management specified in Clauses 2, 3 and 5 of the Decree No. 29/2018/ND-CP shall store such exhibits and property as prescribed by law, except in the case they must be transferred to a specialized authority as prescribed in Clause 2 of this Article.

4. The inventory stored in harbors, warehouses or yards within customs controlled areas (hereinafter referred to as “the inventory”), property without owners, property whose owner is unidentified, property that is dropped, forgotten, buried, hidden, sunk and found, property without inheritors, property of social funds and charity funds that are dissolved but there is no other funds having the same purposes of receiving transferred property or dissolved due to committing violations against the law or against social ethics (hereinafter referred to as “property of a dissolved fund”) shall be stored by the units in charge of property management specified in Clauses 4, 5, 6 and 7 Article 5 of the Decree No. 29/2018/ND-CP, except in the case such property must be transferred to a specialized authority as prescribed in Clause 2 of this Article.

5. Property whose ownership is voluntarily transferred to the State by organizations and individuals shall be received and stored by the units in charge of property management specified in Clauses 8 and 9 Article 5 of the Decree No. 29/2018/ND-CP pending the disposal thereof.

Article 4. Preparing and approving plan for disposal of property that is exhibits and equipment used for committing administrative violations

1. Regarding the property whose disposal is subject to approval by the Minister of Finance according to Point a Clause 1 Article 19 of the Decree No. 29/2018/ND-CP:

a) Regarding the property that is transferred from the central government to the local government and vice versa or between local governments as prescribed in Point c Clause 2 Article 18 of the Decree No. 29/2018/ND-CP:

- Each unit in charge of property management shall propose a disposal plan (enclosed with a copy of the confiscation decision), send the proposed plan to its superior authority (if any), seek opinions of the authority assigned to manage public property prescribed in Clauses 2 and 3 Article 19 of the Law on Management and Use of Public Property and submit it to Ministry, central government authority and People’s Committee of the province, which will request the Ministry of Finance in writing to approve it.

- In consideration of the request of the y central government authority and People’s Committee, the authority assigned to manage public property affiliated to the Ministry of Finance according to Clause 1 Article 19 of the Law on Management and Use of Public Property (hereinafter referred to as “the public property management authority affiliated to the Ministry of Finance”) shall prepare a disposal plan and submit it to the Minister of Finance for approval.

b) In case the property that is houses, land, automobiles and other property worth at least 500 million dong per 01 unit of property and confiscated by competent central government authority is disposed using the remaining methods prescribed in Point c Clause 2 Article 18 of the Decree No. 29/2018/ND-CP, the unit in charge of property management  shall prepare a disposal plan, seek opinions of the authority assigned to manage public property  prescribed in Clause 2 Article 19 of the Law on Management and Use of Public Property (hereinafter referred to as “the public property management authority affiliated to Ministry and central government authority”), send the plan to a Ministry and central government authority, which will request the Minister of Finance in writing to approve it or submit it to the Prime Minister for decision.

2. Regarding the property whose disposal is subject to approval by Ministers, heads of central government authorities or authorities or persons assigned as prescribed in Point b Clause 1 Article 19 of the Decree No. 29/2018/ND-CP:

a) Regarding the property that is distributed or transferred to affiliates of Ministries or central government authorities as prescribed in Point c Clause 2 Article 18 of the Decree No. 29/2018/ND-CP:

- The unit in charge of property management shall propose a disposal plan (enclosed with a copy of the confiscation decision), send the proposed plan to its superior authority (if any) and to the public property management authority affiliated to a Ministry or central government authority.

- Each public property management authority affiliated to a Ministry or central government authority shall prepare a plan for disposal of property that is distributed or transferred to an affiliate of the Ministry or central government authority, submit it to the Minister, head of the central government authority or authority/person assigned as prescribed in Point b Clause 1 Article 19 of the Decree No. 29/2018/ND-CP for approval.

b) Regarding the property that is disposed using the methods prescribed in Point c Clause 2 Article 18 of the Decree No. 29/2018/ND-CP, the unit in charge of property management  shall prepare a disposal plan, send the proposed plan to its superior authority (if any), seek opinions of the public property management authority affiliated to a Ministry or central government authority and submit it to the competent authority prescribed in Point b Clause 1 Article 19 of the Decree No. 29/2018/ND-CP for approval or the Prime Minister for decision.

3. Regarding the property whose disposal is subject to approval by the President of People's Committee of the province or person assigned by the People's Council of the province to approve the disposal plan as prescribed in Point c Clause 1Article 19 of the Decree No. 29/2018/ND-CP:

a) Regarding the property that is distributed or transferred to organizations and units within the province as prescribed in Point c Clause 2 Article 18 of the Decree No. 29/2018/ND-CP:

The unit in charge of property management shall send a proposed disposal plan (enclosed with a copy of the confiscation decision) to the Department of Finance - Planning (regarding the property confiscated by an authority of the district), which will send it to the Department of Finance or send the proposed plan to the Department of Finance (regarding the property confiscated by an authority of the province), which will prepare a plan for disposing of property by distributing or transferring it to an organization or unit within the province, submit it to the President of People's Committee of the province or a provincial-level competent authority assigned by the People's Council of the province as prescribed in Point c Clause 1 Article 19 of the Decree No. 29/2018/ND-CP for approval (regarding the property whose disposal is subject to approval by the competent authority of the province).

Regarding the property whose disposal is subject to approval by a competent authority of the district, the Department of Finance - Planning shall, in consideration of the request of the unit in charge of property management, prepare a plan for disposing of property by distributing or transferring it to an organization or unit under the management of the district and submit the plan to the competent authority of the district for approval.

b) Regarding the property that is disposed using the remaining methods prescribed in Point c Clause 2 Article 18 of the Decree No. 29/2018/ND-CP:

The unit in charge of property management shall prepare a disposal plan, send the proposed plan to its superior authority (if any), seek opinions of the public property management authority prescribed in Clause 3 Article 19 of the Law on Management and Use of Public Property (hereinafter referred to as “the local public property management authority”) and submit it to the President of the People's Committee of the province or a provincial-level competent authority assigned by People’s Council of the province prescribed in Point c Clause 1 Article 19 of the Decree No. 29/2018/ND-CP for approval (regarding the property whose disposal is subject to approval by the competent authority of the province).

Regarding the property whose disposal is subject to approval by a competent authority of the district, the unit in charge of property management shall prepare a disposal plan, seek opinions of the Department of Finance - Planning and submit it to the competent authority of the district for approval.

4. In case the exhibits used for committing violations are perishable goods or articles, Ministries, central government authorities and People’s Councils of provinces shall assign units in charge of property management to prepare and approve disposal plans and organize the implementation thereof as prescribed.

Article 5. Preparing and approving plan for disposal of confiscated property that is exhibits or convict’s property

1. Regarding the confiscated property whose disposal is subject to approval by the Prime Minister according to Point a Clause 2 Article 19 of the Decree No. 29/2018/ND-CP, the unit in charge of property management shall prepare a disposal plan, notify it to its superior authority (if any) and President of People's Committee of the province, which will submit it to the Prime Minister for approval after obtaining written opinions of the Minister of Finance and Minister of Culture, Sports and Tourism.

2. Regarding the confiscated property whose disposal is subject to approval by the Minister of Finance according to Point b Clause 2 Article 19 of the Decree No. 29/2018/ND-CP:

a) If the judgment enforcement authority's decision on disposal of confiscated property is in effect, the Department of Finance - Planning shall request the Department of Finance (regarding the property transferred by a judgment enforcement authority of the district) to prepare a disposal plan or the Department of Finance (regarding the property transferred by a judgment enforcement authority of the province and judgment enforcement authority of the military region) shall send a proposed disposal plan (enclosed with a copy of the confiscation decision) to the People’s Committee of the province, which will request the Ministry of Finance in writing to approve it.

In consideration of the request of the People’s Committee of the province, the public property management authority affiliated to the Ministry of Finance shall prepare a disposal plan and submit to the Minister of Finance for approval.

b) Regarding the property confiscated by an investigating authority or People’s Procuracy, within 10 working days from the effective date of the confiscation decision, the investigating authority or People’s Procuracy shall propose a disposal plan (enclosed with a copy of the confiscation decision), send the proposed plan to its superior authority (if any) and submit it to the Ministry of Public Security or People’s Supreme Procuracy, which will request the Ministry of Finance in writing to approve it.

In consideration of the request of the Ministry of Public Security or People’s Supreme Procuracy, the public property management authority affiliated to the Ministry of Finance shall prepare a disposal plan and submit to the Minister of Finance for approval.

3. Regarding the property whose disposal is subject to approval by the President of People's Committee of the province or competent authority assigned by the People's Council of the province according to Point c Clause 1Article 19 of the Decree No. 29/2018/ND-CP:

a) Regarding the property that is distributed or transferred to organizations and units under the management of the local government as prescribed in Point c Clause 2 Article 18 of the Decree No. 29/2018/ND-CP:

- If the judgment enforcement authority's decision on disposal of the confiscated property is in effect, the Department of Finance - Planning shall send a proposed disposal plan to the Department of Finance (regarding the property transferred by a judgment enforcement authority of the district) or the Department of Finance (regarding the property transferred by a judgment enforcement authority of the province and judgment enforcement authority of the military region) shall prepare a plan for disposing of property by distributing or transferring it to an organization or unit within the province, submit it to the President of People's Committee of the province or a provincial-level competent authority assigned by the People's Council of the province as prescribed in Point c Clause 2 Article 19 of the Decree No. 29/2018/ND-CP for approval (regarding the property whose disposal is subject to approval by the competent authority of the province).

Regarding the property whose disposal is subject to approval by a competent authority of the district, the Department of Finance - Planning shall prepare a plan for disposing of property by distributing or transferring it to an organization or unit under the management of the district and submit the plan to a competent authority of the district for approval.

- Regarding the property confiscated by an investigating authority or People’s Procuracy, within 10 working days from the effective date of the confiscation decision, the investigating authority or People’s Procuracy shall send a proposed disposal plan (enclosed with a copy of the confiscation decision) to the Department of Finance - Planning, which will send it to the Department of Finance (regarding the property confiscated by a judgment enforcement authority or People's Procuracy of the district) or send the proposed plan to the Department of Finance (regarding the property confiscated by a judgment enforcement authority or People's Procuracy of the province), which will prepare a plan for disposing of property by distributing or transferring it to an organization or unit within the province, submit it to the President of People's Committee of the province or a provincial-level competent authority assigned by the People's Council of the province as prescribed in Point c Clause 2 Article 19 of the Decree No. 29/2018/ND-CP for approval (regarding the property whose disposal is subject to approval by the competent authority of the province).

Regarding the property whose disposal is subject to approval by a competent authority of the district, the Department of Finance - Planning shall prepare a plan for disposing of property by distributing or transferring it to an organization or unit under the management of the district and submit the plan to a competent authority of the district for approval.

b) Regarding the property that is disposed using the remaining methods prescribed in Point c Clause 2 Article 18 of the Decree No. 29/2018/ND-CP:

- If the judgment enforcement authority's decision on disposal of the confiscated property is in effect, the Department of Finance - Planning shall request the Department of Finance (regarding the property transferred by a judgment enforcement authority of the district) to prepare a disposal plan or the Department of Finance (regarding the property transferred by a judgment enforcement authority of the province and judgment enforcement authority of the military region) shall prepare a disposal plan and submit it to the President of People's Committee of the province or a provincial-level competent authority assigned by the People's Council of the province as prescribed in Point c Clause 2 Article 19 of the Decree No. 29/2018/ND-CP for approval (regarding the property whose disposal is subject to approval by the competent authority of the province) or to the Prime Minister for decision.

Regarding the property whose disposal is subject to approval by a competent authority of the district, the Department of Finance - Planning shall prepare a disposal plan and submit it to a competent authority of the district for approval.

- Regarding the property confiscated by an investigating authority or People’s Procuracy, the investigating authority or People’s Procuracy shall prepare a disposal plan, send it to its superior authority (if any), seek opinions of the local public property management authority, submit it to the President of the People's Committee of the province or a provincial-level competent authority assigned by People’s Council of the province prescribed in Point c Clause 2 Article 19 of the Decree No. 29/2018/ND-CP for approval (regarding the property whose disposal is subject to approval by the competent authority of the province) or to the Prime Minister for decision.

Regarding the property whose disposal is subject to approval by a competent authority of the district, the investigating authority or People’s Procuracy shall prepare a disposal plan, seek opinions of the Department of Finance - Planning and submit it to a competent authority of the district for approval.

Article 6. Preparing and approving plan for disposal of property without owners, property whose owner is unidentified, property that is dropped, forgotten, buried, hidden, sunk and found, property without inheritors

1. Regarding the property whose disposal is subject to approval by the Prime Minister according to Point a Clause 3 Article 19 of the Decree No. 29/2018/ND-CP:

The Department of Finance shall prepare a disposal plan or the Department of Finance - Planning shall request the Department of Finance to prepare a disposal plan, which will be sent to the President of People's Committee of the province, which will submit it to the Prime Minister for approval after obtaining written opinions of the Minister of Finance and Minister of Culture, Sports and Tourism.

2. Regarding the property whose disposal is subject to approval by the Minister of Finance according to Point b Clause 3 Article 19 of the Decree No. 29/2018/ND-CP:

a) The Department of Finance shall propose a disposal plan (enclosed with a copy of the decision on establishment of public ownership of property) to the People’s Committee of the province, which will request the Ministry of Finance in writing to approve it.

b) In consideration of the request of the People’s Committee of the province, the public property management authority affiliated to the Ministry of Finance shall prepare a disposal plan and submit to the Minister of Finance for approval.

3. Regarding the property whose disposal is subject to approval by the local competent authority prescribed in Point c Clause 3 Article 19 of the Decree No. 29/2018/ND-CP:

a) The Department of Finance or the Department of Finance - Planning shall prepare a disposal plan and submit it to the President of the People’s Committee of the province or a provincial-level competent authority assigned by the People's Council of the province for approval (regarding the property whose disposal is subject to approval by the competent authority of the province) or to the Prime Minister for decision.

b) The Department of Finance - Planning shall prepare a disposal plan and submit it to a competent authority for approval (regarding the property whose disposal is subject to approval by the competent authority of the district).

Article 7. Preparing and approving plan for disposal of property that is inventory within customs controlled areas

1. Regarding the inventory whose disposal is subject to approval by the Prime Minister according to Point a Clause 3 Article 19 of the Decree No. 29/2018/ND-CP, the customs authority shall propose a disposal plan (enclosed with a copy of the decision on establishment of public ownership of property) to the public property management authority affiliated to the Ministry of Finance.

According to the proposed disposal plan, the public property management authority affiliated to the Ministry of Finance shall prepare a disposal plan and submit it to the Minister of Finance, which will submit it to the Prime Minister for approval after obtaining written opinions of the Minister of Culture, Sports and Tourism.

2. Regarding the inventory whose disposal is subject to approval by the Minister of Finance according to Point b Clause 3 Article 19 of the Decree No. 29/2018/ND-CP, the customs authority shall propose a disposal plan (enclosed with a copy of the decision on establishment of public ownership of property) to the public property management authority affiliated to the Ministry of Finance.

According to the proposed disposal plan, the public property management authority affiliated to the Ministry of Finance shall prepare a disposal plan and submit it to the Minister of Finance for approval.

3. Regarding controlled goods, the customs authority shall cooperate with the public property management authority affiliated to the Ministry of Finance in notifying thereof to the Ministry of Finance, which will request the Prime Minister to consider and decide on methods for disposing of such goods.

Article 8. Preparing and approving plan for disposal of property of social funds and charity funds that are dissolved

1. Regarding the property of the dissolved fund under the management of the central government, the unit in charge of property management shall propose a disposal plan (enclosed with a copy of the decision on establishment of public ownership of property) to the public property management authority affiliated to the Ministry of Home Affairs.

According to the proposed disposal plan, the public property management authority affiliated to the Ministry of Home Affairs shall prepare a disposal plan and submit it to the Minister of Home Affairs or a competent authority assigned by the Minister of Home Affairs for approval or to the Prime Minister for decision.

2. Regarding the property of the dissolved fund under the management of the local government, the Department of Finance shall prepare a disposal plan and submit it to the President of the People’s Committee of the province or a provincial-level competent authority assigned by the People's Council of the province for approval or to the Prime Minister for decision.

Article 9. Preparing and approving plan for disposal of property whose ownership is voluntarily transferred to the State by organizations and individuals

1. Regarding special property and property used for national defense and security purposes whose disposal is subject to approval by the Minister of National Defense or the Minister of Public Security:

a) The unit in charge of property management shall propose a disposal plan (enclosed with a copy of the decision on establishment of public ownership of property), send the proposed plan to its superior authority (if any) and to the public property management authority affiliated to the Ministry of National Defense or Ministry of Public Security.

b) The public property management authority affiliated to the Ministry of National Defense or Ministry of Public Security shall prepare a disposal plan and submit it to the Minister of National Defense or the Minister of Public Security or the competent authority assigned by the Minister of National Defense or the Minister of Public Security for approval or to the Prime Minister for decision.

2. Regarding the property whose disposal is subject to approval by the Minister of Finance:

a) Regarding the property whose ownership is voluntarily transferred to the State by an organization or individual but the transferee is not specified, the unit in charge of property management shall propose a disposal plan to the public property management authority affiliated to the Ministry of Finance. Such authority shall submit the proposed plan to the Minister of Finance for approval or to the Prime Minister for decision.

b) Regarding the property whose ownership is voluntarily transferred to the State by an organization or individual and the transferee is specified:

- The unit in charge of property management shall propose a disposal plan (enclosed with a copy of the decision on establishment of public ownership of property), send the proposed plan to its superior authority (if any), seek opinions of the public property management authority affiliated to a Ministry or central government authority and submit it to the Ministry or central government authority, which will request the Ministry of Finance in writing to approve it.

- In consideration of the request of the Ministry or central government authority, the public property management authority affiliated to the Ministry of Finance shall prepare a disposal plan and submit it to the Minister of Finance for approval or to the Prime Minister for decision.

3. Regarding the property whose disposal is subject to approval by a Minister or head of the central government authority:

a) The unit in charge of property management shall propose a disposal plan (enclosed with a copy of the decision on establishment of public ownership of property), send the proposed plan to its superior authority (if any) and to the public property management authority affiliated to a Ministry or central government authority.

b) The public property management authority affiliated to a Ministry or central government authority shall prepare a disposal plan and submit it to the Minister or head of the central government authority for approval or to the Prime Minister for decision.

4. Regarding the property whose disposal is subject to approval by the President of People's Committee of the province or competent authority assigned by the People's Council of the province:

a) Regarding the property whose ownership is voluntarily transferred to a local government by an organization or individual and the transferee is not specified, the Department of Finance or the Department of Finance - Planning shall prepare a disposal plan and submit it to the President of the People’s Committee of the province or a provincial-level competent authority assigned by the People's Council of the province for approval or to the Prime Minister for decision.

b) Regarding the property whose ownership is voluntarily transferred to a local government by an organization or individual and the transferee is specified:

- The unit in charge of property management shall propose a disposal plan (enclosed with a copy of the decision on establishment of public ownership of property), send the proposed plan to the Department of Finance - Planning, which will send it to the Department of Finance (if the transferee is affiliated to an authority of the district) or to the Department of Finance (if the transferee is affiliated to an authority of the province).

- The Department of Finance shall prepare a disposal plan and submit it to the President of the People’s Committee of the province or a provincial-level competent authority assigned by the People's Council of the province for approval or to the Prime Minister for decision.

5. Regarding projects’ temporarily imported goods which are transferred to the State by foreign experts, contractors and consultants but on which tax has yet to be paid to the Vietnamese State, the unit in charge of property management shall follow procedures for tax payment and request a competent authority to establish public ownership of property as prescribed by law.

If the unit in charge of property management fails to provide funding for tax payment, request a competent authority’s permission for payment of tax after selling or liquidating property or assign a transferee to follow procedures for tax payment as prescribed by law.

Article 10. Preparing and approving plan for disposal of property transferred by foreign-invested enterprises without reimbursement to the Vietnamese State according to their commitments after expiry of their operation duration

After obtaining the competent authority’s decision on establishment of public ownership of property transferred by foreign-invested enterprises without reimbursement to the Vietnamese State according to their commitments after expiry of their operation duration, the Department of Finance shall prepare a disposal plan and submit it to the President of the People’s Committee of the province or a provincial-level competent authority assigned by the People's Council of the province for approval or to the Prime Minister for decision.

Article 11. Preparing and approving plan for disposal of property transferred to the Vietnamese State under public-private partnership project contracts

1. Regarding the property whose disposal is subject to approval by a Minister or head of the central government authority:

a) The unit in charge of property management shall propose a disposal plan (enclosed with a copy of the decision on establishment of public ownership of property), send the proposed plan to its superior authority (if any) and to the public property management authority affiliated to a Ministry or central government authority.

b) The public property management authority affiliated to a Ministry or central government authority shall prepare a disposal plan and submit it to the Minister or head of the central government authority for approval after obtaining opinions of the Ministry of Finance or to the Prime Minister for decision.

2. Regarding the property whose disposal is subject to approval by the President of People's Committee of the province or competent authority assigned by the People's Council of the province:

a) The unit in charge of property management shall propose a disposal plan (enclosed with a copy of the decision on establishment of public ownership of property) to the Department of Finance - Planning (if an authority of the district signs a public-private partnership contract) or the Department of Finance (if an authority of the province signs a public-private partnership contract).

b) If an authority of the district signs a public-private partnership contract, the Department of Finance - Planning shall prepare a disposal plan and submit it to a competent authority of the district for approval or request the Department of Finance to prepare a disposal plan, which will be submitted to the President of the People’s Committee of the province or a provincial-level competent authority assigned by the People's Council of the province for approval (regarding the property whose disposal is subject to approval by the competent authority of the province).

If an authority of the district signs a public-private partnership contract, the Department of Finance shall prepare a disposal plan and submit it to the President of the People’s Committee of the province or a provincial-level competent authority assigned by the People's Council of the province for approval or to the Prime Minister for decision.

Article 12. Organizing disposal of property whose public ownership is established

1. Regarding the property that is transferred to a specialized management authority, Clause 1 Article 20 of the Decree No. 29/2018/ND-CP shall be complied with. Where:

a) Regarding the property that is Vietnamese currency, the State Treasury shall pay it to the state budget as prescribed by the Law on State Budget.

b) Regarding the property that is foreign currencies, the unit in charge of property management shall pay them to the foreign currency account of the State Treasury of the province. The state budget revenue in foreign currency shall be recorded as a revenue of the foreign currency fund of state budget (in original currency) and be converted into Vietnam dong at the foreign exchange rate to record payments to state budget in accordance with regulations.

2. Regarding the property that is distributed or transferred to an organization or unit, Clause 2 Article 20 of the Decree No. 29/2018/ND-CP shall be complied with. In case the property that is distributed or transferred to an organization or unit but there is not any organization or unit applying for receipt of such property, the property shall be offered for sale in accordance with regulations of the law on management and use of public property.

3. Regarding the property that is auctioned:

a) The exhibits and equipment used for committing administrative violations, shall be auctioned as follows:

- The unit in charge of property management shall sign an auction contract with a property auction organization or establish a property auction council (in case of failure to hire a property auction organization) as prescribed in Clause 1 Article 12 of the Government's Decree No. 81/2013/ND-CP dated July 19, 2013.

- Value of the exhibits and equipment used for committing administrative violations that is determined as prescribed in Article 60 of the Law on Actions against Administrative Violations is the reserve price.

It is required to establish a council to determine the reserve price in the following cases: The exhibit or equipment used for committing administrative violations is yet to have its value determined when transferred to be sold at an auction; the expected time for holding an auction exceed 60 days from the date of determining value of the exhibit used for committing administrative violations as prescribed in Article 60 of the Law on Actions against Administrative Violations; the exhibit's value determined as prescribed in Article 60 of the Law on Actions against Administrative Violations is 10% higher or lower than the price of property of the same type announced by the Department of Finance at the time the exhibit is transferred to be sold at an auction.

Members and operation principles of the council responsible for reserve price determination are specified in Article 8 of the Circular No. 144/2017/TT-BTC dated December 29, 2017 of the Ministry of Finance on guidelines for some contents of the Government's Decree No. 151/2017/ND-CP dated December 26, 2017 on guidelines for some Articles of the Law on Management and Use of Public Property (hereinafter referred to as “the Circular No. 144/2017/TT-BTC”).

- Payment for property purchase and issuance of invoices for public property sale, and transfer of property to purchasers shall comply with Clauses 7 and 8 Article 24 of the Government’s Decree No. 151/2017/ND-CP dated December 26, 2017 on guidelines for some Articles of the Law on Management and Use of Public Property (hereinafter referred to as “the Decree No. 151/2017/ND-CP).

- Procedures for property auction shall comply with regulations of the law on property auction.

b) The inventory within a customs controlled area shall be auctioned as follows:

- Reserve price is the price (inclusive of taxes and fees) that is determined by the council responsible for reserve price determination as prescribed in Article 8 of the Circular No. 144/2017/TT-BTC or by an organization eligible for valuation.

- Organization of auctions, payment for property purchase and issuance of invoices for public property sale, and transfer of property to purchasers shall comply with Article 24 of the Decree No. 151/2017/ND-CP.

- The purchaser of inventory shall pay for the inventory and remove it from the customs controlled area within the time limit specified in the sale contract, but not exceeding 15 days from the date of signing the contract. After the aforementioned deadline, if the purchaser fails to make payment or makes payment but fails to receive or remove the inventory from the  customs controlled area without legitimate reasons, the inventory shall be disposed under the auctioned property sale contract and civil laws.

- The purchaser has the responsibility to pay the unit in charge of property management for the inventory, is not required to follow import procedures, pay taxes and fees in connection with import.

- When the purchaser has made payment and removed inventory from the customs controlled area, the unit in charge of property management shall provide him/her with documents, including: 01 original of the invoice for public property sale, 01 original of the property sale contract and 01 original of the delivery note of the unit assigned to store inventory.

- The unit in charge of property management shall transfer inventory to the purchaser. The depot operator, agent service provider and ship owner shall cooperate in delivering inventory to the purchaser and bear the costs of delivery, receipt, handling, transport and storage of inventory by the time the competent authority’s decision on establishment of public ownership of property is issued. The customs authority shall pay the costs of delivery, receipt, handling, transport and storage of inventory from the date on which the competent authority’s decision on establishment of public ownership of property is issued to the date on which the disposal is completed.

c) Regarding the property whose public ownership is established (other than the property prescribed in Points a and b of this Clause), the property auction shall be conducted as prescribed in Article 24 of the Decree No. 151/2017/ND-CP. Procedures for property auction shall comply with regulations of the law on property auction.

d) In case the property auction prescribed in this Clause is unsuccessful, Article 25 of the Decree No. 151/2017/ND-CP shall be complied with.

4. Regarding the property that is offered for designated sale or sold at fixed prices:

a) In case the exhibits used for committing violations are perishable but usable goods and articles

- The following perishable but usable goods and articles will be sold through bidding, direct contracting or at fixed prices: fresh foods, foods that are easily spoiled or hardly preserved; flammable and explosive goods (petrol, gas, oil, liquefied gas and other flammable and explosive substances); curative medicines, veterinary drugs and pesticides whose useful life remains less than 60 days; processed foods and other goods whose useful life remain less than 30 days; seasonal goods (such as seasonal consumable goods or goods served in public holidays or new year's festivals), electronic products (computers, smart phones) and other goods and/or articles which shall be damaged, deteriorated, be hardly sold or whose useful life expires if they are not disposed once the confiscation decision is issued.

- Prices of perishable goods and articles shall be determined by the unit in charge of property management according to Clause 2 Article 60 of the Law on Actions against Administrative Violations and their quality. In case it is impossible to apply Clause 2 Article 60 of the Law on Actions against Administrative Violations, the unit in charge of property management shall cooperate with a finance authority at the same level or a finance authority of the area where the administrative violation is committed (if the superior finance authority grants authorization or the confiscation decision issuer is affiliated to an authority other than those in the administrative hierarchy) in order to determine prices of perishable goods and articles;

- The goods subject to business conditions, such as flammable and explosive goods, curative medicines, veterinary drugs and pesticides shall be only sold to organizations and individuals eligible for doing business as prescribed by law.

- Property shall be offered for designated sale or sold at fixed prices as prescribed in Articles 26 and 27 of the Decree No.151/2017/ND-CP and its instructional documents.

b) Regarding the property that is inventory within customs controlled areas:

- The following inventory will be sold through bidding, direct contracting or at fixed prices: fresh foods, foods that are easily spoiled or hardly preserved; flammable and explosive goods (petrol, gas, oil, liquefied gas and other flammable and explosive substances); processed foods whose useful life remain less than 30 days; curative medicines and veterinary drugs whose useful life remains less than 60 days; other goods and/or articles which shall be damaged or deteriorated or whose useful life expires if they are not immediately disposed; goods worth under 50 million dong per shipment that is determined by the unit in charge of property management.

- The goods subject to business conditions, such as flammable and explosive goods, curative medicines, veterinary drugs and pesticides shall be only sold to organizations and individuals eligible for doing business as prescribed by law.

- Property shall be offered for designated sale or sold at fixed prices as prescribed in Articles 26 and 27 of the Decree No.151/2017/ND-CP and its instructional documents.

- When the purchaser has made payment and removed inventory from the customs controlled area, the unit in charge of property management shall provide him/her with documents, including: 01 original of the invoice for public property sale, 01 original of the inventory sale contract and 01 original of the delivery note of the unit assigned to store inventory.

- The unit in charge of property management shall transfer inventory to the purchaser. The depot operator, agent service provider and ship owner shall cooperate in delivering inventory to the purchaser and bear the costs of delivery, receipt, handling, transport and storage of inventory by the time the competent authority’s decision on establishment of public ownership of property is issued. The customs authority shall pay the costs of delivery, receipt, handling, transport and storage of inventory from the date on which the competent authority’s decision on establishment of public ownership of property is issued to the date on which the disposal is completed.

c) Regarding the remaining property whose public ownership is established (other than the property prescribed in Points a and b of this Clause), it shall be offered for designated sale or sold at fix prices as prescribed in Articles 26 and 27 of the Decree No. 151/2017/ND-CP and its instructional documents.

5. Regarding the property that is disposed by destruction:

a) In case the confiscated exhibits used for committing violations are perishable goods or articles prescribed in Point a Clause 4 of this Article but they are no longer usable, the unit in charge of property management shall establish a council to carry out the destruction. The President of the council is the confiscation decision issuer or authorized person. Other members include: representative of the finance authority at the same level or a finance authority of the area where the administrative violation is committed (if the superior finance authority grants authorization or the confiscation decision issuer is affiliated to an authority other than those in the administrative hierarchy) and representatives of relevant authorities.

b) Regarding the inventory within a customs controlled area, the inventory that is no longer usable (inventory which is rotten, broken, damaged, deteriorated or whose useful life expires, or which are of inferior quality, or articles that are harmful to human health, animals or plants) or must be destroyed as prescribed by Vietnam’s law shall be destroyed. In case the goods pollute the environment and its owner or operator or the person authorized by the vehicle owner fails to be identified, the unit in charge of property management shall cooperate with relevant authorities to destroy it.

The unit in charge of property management shall carry out the destruction or hire another organization to do so. If the unit in charge of property management carries out the destruction, it may assign the enterprise responsible for inventory management to mobilize its employees to do so.

c) Regarding the remaining property whose public ownership is established (other than the property prescribed in Points a and b of this Clause), the unit in charge of property management shall cooperate with relevant authorities to destroy it.

d) Property shall be destroyed as follows:

- According to the nature and characteristics of goods and articles and requirements for environmental protection, they shall be destroyed using the following methods: use of chemicals, adoption of mechanical measures, burning, burying and other methods prescribed by law;

- The property destruction shall be made into a record. The record shall contain at least: grounds for destruction; date and place of destruction; persons involved in the destruction; name, type, quantity or status of the property at the time of destruction; methods of destruction and other relevant contents;

- The property destruction that affects the environment shall be subject to approval by and comply with guidelines of the local environment authority before the destruction.

6. Regarding the property that is disposed using the remaining methods, the Decree No. 29/2018/ND-CP shall be complied with.

7. The disposal of property whose public ownership is established shall be carried out for property involved in each case. In case the property involved in a case is worth less than 100 million dong per case, the unit in charge of property management may aggregate property involved in multiple cases to dispose the property at a time. Time limit for disposal must not exceed 01 year from the date on which the competent authority’s confiscation decision or the decision on establishment of public ownership is issued.

Article 13. Management and use of proceeds earned from disposal of property whose public ownership is established

1. The proceeds earned from disposal of property whose public ownership is established shall be transferred to temporary accounts at the state treasury. The account holders are the following public property management authorities:

a) Public property management authorities affiliated to the Ministry of Finance, regarding the property whose disposal is subject to approval by the Prime Minister and Minister of Finance;

b) Departments of Finance, regarding the property whose disposal is subject to approval by the competent authority of the province and by competent central government authority, except the property specified in Point a of this Clause;

c) Departments of Finance - Planning of districts, regarding the property whose disposal is subject to approval by the competent authority of districts/communes.

2. The amount transferred to the temporary accounts specified in Clause 1 of this Article after deducting the expenditures specified in Article 29 of the Decree No. 29/2018/ND-CP be transferred to the state budget.

Chapter III

IMPLEMENTATION CLAUSE

Article 14. Transitional provisions

1. The property whose public ownership was established before the effective date of the Decree No. 29/2018/ND-CP (except the property prescribed in Clause 2 of this Article) but whose disposal is yet to be approved by the competent authority shall be disposed as prescribed in the Decree No. 29/2018/ND-CP and this Circular (regarding the exhibits and equipment used for committing administrative violations that are being sold, liquidated or destroyed as prescribed by law at the time the Decree No. 29/2018/ND-CP is in effect, the decision on approval for plan for disposal thereof shall be obtained to take the next steps).

In case the property whose disposal has been approved is being disposed as prescribed by law before the effective date of the Decree No. 29/2018/ND-CP but is yet to be completely disposed, keep disposing the property, and manage and use the proceeds earned from disposal of property as prescribed in the Decree No. 29/2018/ND-CP and this Circular.

2. In case the inventory that is within a customs controlled area has had its state ownership (now public ownership) established and its disposal approved as prescribed in the Circular No. 203/2014/TT-BTC dated December 22, 2014 of the Ministry of Finance, keep disposing such inventory, and manage and use the proceeds earned from disposal thereof as prescribed in the Circular No. 203/2014/TT-BTC.

3. In case the inventory that is within a customs controlled area has or is yet to have its state ownership (now public ownership) established but a plan for disposal thereof is not available,  establish public ownership, and manage and use the proceeds earned from disposal as prescribed in the Decree No. 29/2018/ND-CP and this Circular.

4. Regarding the remaining proceeds (if any) earned from disposal of inventory within a customs controlled area in the account whose holder is the Director of the Customs Department, the Customs Department shall transfer it to the temporary account whose holder is the Department of Finance as prescribed in Point b Clause 1 Article 13 of this Circular by January 01, 2019.

Article 15. Effect

1. This Circular comes into force from August 20, 2018.

2. This Circular repeals the following documents:

a) Circular No. 159/2014/TT-BTC dated October 27, 2014 of the Ministry of Finance.

b) Clause 3 Clause 4; Point b Clause 1, Clause 2 Article 5; Article 7 and Article 8 of the Circular No. 173/2013/TT-BTC dated November 20, 2013 of the Ministry of Finance.

c) Articles 13, 14, 15, 16, 17, 18 and 19 of the Circular No. 203/2014/TT-BTC dated December 22, 2014 of the Ministry of Finance.

Difficulties that arise during the implementation of this Circular should be promptly reported to the Ministry of Finance./.

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