Thông tư liên tịch 18/2016/TTLT-BGTVT-BTC

JOINT CIRCULAR

INSTRUCTIONS ON DETERMINATION AND CONTROL OF PRICES OF PRODUCTS AND SERVICES FOR PUBLIC USE IN MANAGEMENT AND MAINTENANCE OF INLAND WATERWAYS ORDERED BY STATE USING CENTRAL BUDGET

Pursuant to the Law on Inland Waterway Navigation No. 23/2004/QH11 dated June 05, 2004;

Pursuant to the Government’s Decree No. 60/2003/NĐ-CP dated June 06, 2003 providing instructions on the implementation of the Law on State budget;

Pursuant to the Government’s Decree No. 130/2013/NĐ-CP dated October 16 on production and provision of products and services for public use;

Pursuant to the Government’s Decree No. 177/2013/NĐ-CP dated November 14, 2013 providing instructions on the implementation of a number of articles of the Law on Pricing;

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 the Government's Decree No. 107/2012/NĐ-CP dated December 20t, 2012, defining the functions, tasks, entitlements and organizational structure of the Ministry of Transport;

The Minister of Transport and Ministry of Finance promulgate the Joint Circular providing instructions on determination and control of prices of products and services for public use in management and maintenance of inland waterways ordered by the state using central budget.

Article 1. Governing scope

This Circular stipulates determination and control of prices of products and services for public use in management and maintenance of inland waterways ordered by the state using central budget as prescribed in the Government’s Decree No. 130/2013/NĐ-CP dated October 16, 2013 on production and provision of products and services for public use.

Article 2. Regulated entities

1. This Circular applies to agencies, organizations and businesses engaging in production and provision of products and services for public use in management and control of inland waterways ordered by the state using central budget.

2. Agencies, organizations, and individuals other than those as prescribed in Clause 1 of this Article may rely on regulations of this Circular and the law on bidding to formulate the cost estimates of a procurement or to bid for provision of products and services for public use in management and maintenance of inland waterways.

Article 3. Principles of price determination

Prices of products and services for public use in the management and maintenance of inland waterways shall be determined to ensure:

1. Compensation for the actual and appropriate expenses for completion of a product or service for public use in accordance with regulations, standards and economic-technical norms in management and maintenance of inland waterways promulgated by competent state agencies and technical conditions of individual works or work items.

2. Accordance with the market place where the work is carried out, quantity and quality of products and services.

3. Prices of prices of products and services for public use do not include expenses covered by the state budget.

4. Any irregular repair and remedial works for consequences of storms, floods and natural catastrophes in inland waterways order by the state shall be conformable with the Minister of Transport’s Circular No. 37/2010/TT-BGTVT dated December 01, 2010 stipulating prevention, combat and remedial work for consequences of floods, storms; responses to natural disasters and rescue operations on inland waterways and amendments, supplements or replacements thereof (if any).

Article 4. Structure and method of price determination

1. Structure of price of products and services for public use in management and maintenance of inland waterways ordered by the state shall be conformable with instructions in Annex 01 enclosed herewith, including:

a) Costs of raw materials, energy;

b) Labor costs;

c) Costs of machinery and equipment;

d) Other direct costs;

dd) General costs;

e) Taxable income

g) Value added tax

2. Method of determining prices of products and services for public use in management and maintenance of inland waterways ordered by the state shall be conformable with instructions in Annex 02 enclosed herewith.

3. Other related costs (if any) shall be conformable with Article 5 herein.

Article 5. Other related costs

1. Additional costs (if any) such as costs of feasibility study formulation, engineering and supervision consultancy, traffic safety assurance for repair and maintenance work, audits, financial settlement shall be recorded separately for each specific work according to regulations on construction cost management, financial settlement of state-funded projects.

2. Product and service order management costs (if any):

a) Product and service order management costs are costs for management of orders for products and services for public use in inland waterways.

Product and service order management costs for regular and irregular repair works, regular dredging shall be determined in accordance with project management cost norms stipulated by the Ministry of Construction for construction works.

Product and service order management costs for regular management and maintenance (except for regular dredging mentioned above) shall be determined as a percentage of the total cost for regular management and maintenance (excluding the cost for regular dredging) in the Ministry of Transport’s decision on annual budget spending estimate allocation. This percentage shall be based on project management cost norms stipulated by the Ministry of Construction for construction projects.

b) The entity tasked with managing orders for products and services for public use shall be allowed to use this cost when its activity is not covered by the state budget.

Article 6. Use of economic-technical norms

The formulation of prices of products and services for public use in management and maintenance of inland waterways must be based on economic-technical norms promulgated by competent agencies.

Article 7. Authority to decide prices

Prices of products and services for public use ordered by the state using central budget shall be decided by the Ministry of Transport.

Article 8. Time of price decision

1. Decisions on prices of products and services for public use shall be made after the state budget spending estimate allocated to the Ministry of Transport by the Ministry of Finance.

Time limits for assessment and decision on prices shall be conformable with Clause 2, Article 9 of the Government’s Decree No. 177/2013/NĐ-CP dated November 14, 2013 providing instructions on the implementation of a number of articles of the Law on Pricing and other amendments, supplements or replacements thereof (if any).

Article 9. Adjustments to contractual price; level of subsidy for production and provision of products and services for public use

Making adjustments to contractual price; level of subsidy for production and provision of products and services for public use shall be conformable with applicable regulations.

Article 10. Inspection of compliance with regulations on control of prices

1. The inspection of compliance with regulations on control of prices for products and services for public use in inland waterways shall be conformable with this Circular and applicable regulations.

2. Any organization or individual that commits acts in violation of this Circular, depending on nature and severity of the violation, shall be administratively sanctioned, face criminal prosecution, or be liable for compensation in case of any damage caused.

3. Authority and procedures for imposition of sanctions shall be conformable with regulations on handling of administrative violations.

Article 11. Rights and responsibility of agencies, units

1. The Ministry of Transport

a) Direct relevant units and agencies to establish and control prices of products and services for public use within competence as prescribed herein and other relevant law provisions;

b) Promulgate economic-technical  norms within competence, technical regulations and standards in management and maintenance of inland waterways as foundations for formulation of products and services for public use;

c) Inspect implementation of prices for products and services for public use in inland waterways according to this Circular and other relevant law provisions.

2. The Ministry of Finance

a) Cooperate with the Ministry of Transport in controlling prices of products and services for public use as prescribed herein and relevant law provisions;

b) Allocate funds from central budget on an annual basis for the implementation of provision of products and services for public use in management and maintenance of inland waterways according to laws.

c) Cooperate with the Ministry of Transport and relevant agencies in organizing or presiding over the inspection of the implementation of prices of products and services for public use in management and maintenance of inland waterways as prescribed herein and relevant law provisions.

Article 12. Implementation

1. This Circular takes effect since August 15, 2016 and supersedes instructions on establishment and control of prices of products and services for public use in management and maintenance of inland waterways ordered by the state as prescribed in the Ministry of Finance and Ministry of Transport’s Joint Circular No. 75/TTLT-BTC-BGTVT dated June 06, 2011.

2. Difficulties that arise during the implementation of this Circular should be reported to the Ministry of Transport for cooperation with the Ministry of Finance in carrying out considerations and handling./.

ANNEX 01

STRUCTURE OF PRICES OF PRODUCTS AND SERVICES FOR PUBLIC USE IN MANAGEMENT AND MAINTENANCE OF INLAND WATERWAYS ORDERED BY THE STATE USING CENTRAL BUDGET (Enclosed with Joint-Circular No. 18/2016/TTLT-BGTVT-BTC dated June 30, 2016)

Notes: Percentage stated above is the maximum level. Based on state budget capacity, particular conditions of individual works (products and services for public use) and market place, competent agencies shall decide a particular percentage which is not in excess of the maximum level.

- Where:

+ Q_j : Quantity of management and maintenance work at j (j=1÷n).

+ D_j^VL, D_j^NC, D_j^M: Costs of materials, labor, machinery and equipment for management work at j. Costs of materials (D_j^VL), labor costs (D_j^NC) and costs of machinery and equipment (D_j^M) are detailed in Annex 02 enclosed herewith.

+ K_nc, K_mtc: Coefficients for labor, machinery (if any).

+ G_TT: Pre-tax prices of products and services for public use.

+ T^GTGT: Value added tax rate applicable to management and maintenance of inland waterways.

+ G: Post-tax prices of products and services for public use.

- Any bonus payment (not included in labor costs) for prevention and combat against natural catastrophes shall be added to general costs after percentage stated above is determined.

ANNEX 02

METHOD OF DETERMINING PRICES OF PRODUCTS AND SERVICES FOR PUBLIC USE IN MANAGEMENT AND MAINTENANCE OF INLAND WATERWAYS ORDERED BY THE STATE USING CENTRAL BUDGET (Enclosed with Joint-Circular No. 18/2016/TTLT-BGTVT-BTC dated June 30, 2016)

1. Costs of raw materials, energy (costs of materials)

Costs of materials are determined in following formula:

VL =

Where:

- D_i: Quantity of materials at i (i=1÷n) for a unit mass of work as stipulated in economic-technical norms.

- G^VL_i: Cost of a unit of raw materials at i (i =1÷n) at the site is determined as follows:

+ The materials must be conformable to standards, types and quality of materials used and associated with the construction site. The costs of materials are determined based on market price and sources of information provided by relevant agencies, manufacturer or supplier’s quotations, costs of materials of equivalent standards and quality which are currently being used for other works;

+ For materials which are not available in the market where the construction site is situated, the costs of materials shall be determined as the purchasing price according to market price plus transport-to-site and other relevant costs.  Calculation of transport-to-site and other relevant costs shall be instructed by the Ministry of Construction.

+ Costs of materials used for calculation are not inclusive of value added tax.

- K^VL: Coefficient for calculation of costs of other materials

- Any costs of energy (electricity, petroleum, oil) for operation of machinery and equipment which have been included in equipment unit price shall not be included in these costs.

2. Labor costs

Labor costs are determined according to regulations on wages.

3. Costs of machinery, equipment (costs of machinery)

These costs shall be determined in following formula:

M =

Where:

- M_i: Loss rate of machine shift of a key machine, equipment at i (i=1÷n) calculated for a unit mass of work stipulated in economic-technical norms.

- g_i^MTC: Costs of machine shift of a machine, equipment at i (i=1÷n) according to the machine shift price or machine rental price instructed by the Ministry of Construction_.

- K^MTC: Coefficient for calculation of costs of other machinery (if any)

- Costs of machinery used for calculation are not inclusive of value added tax.

4. Other direct costs

Other direct costs include expenses for moving labor force, equipment and machinery within the construction site, protection of environment for workers and surrounding area, labor safety and other costs.

Maximum amount of other direct costs shall be calculated as 1% of total costs of materials, labor and machinery.

5. General costs

a) General costs are expenses paid by contractors or order-receiving units such as wages, financial contributions and other expenses for management apparatus, direct labor (not included in costs of direct labor for production), expenses for electricity, water, telephone, petroleum, business trips, stationery, tools and equipment for management apparatus; expenses for depreciation of fixed assets serving management apparatus of businesses; expenses for organization of preliminary and summary wrap-up conferences; expenses for moving labor force and construction of make-shift houses (or renting houses) for workers.

General costs are calculated as follows:

- For regular maintenance, maximum amount of general costs shall be calculated as 66% of costs of direct labor for production.

- For repair works, maximum amount of general costs shall be calculated as 5.3% of costs of direct labor for production.

- Any bonus payment (not included in labor costs as prescribed in Point 2 of this Annex) for prevention and combat against natural catastrophes shall be added to general costs after the percentage stated above is determined.

b) For works situated in highlands, border, sea and island regions, percentage of general costs shall be adjusted according to a coefficient from 1.05 to 1.1 decided by competent agencies depending on particular conditions of products for public use.

6.Taxable income

Taxable income is set up to ensure prices of products and services for public use are aligned with market place within the allocated budget estimates but not in excess of 6% of total costs of materials, labor, machinery, other direct costs and general costs.

7. Value added tax: Value-added tax is applied according to current regulations.