Circular No. 08/2017/TT-BTC dated January 24, 2017 of the Ministry of Finance guiding the management and use of environmental remediation deposits paid by mining organizations

THE MINISTRY OF FINANCE

Circular No. 08/2017/TT-BTC dated January 24, 2017 of the Ministry of Finance guiding the  management and use of environmental remediation deposits paid by mining organizations

Pursuant to the Law on Environmental Protection dated June 23, 2014;

Pursuant to Decree No.19/2015/NĐ-CP dated February 14, 2015 by the Government prescribing the implementation of some articles of the Law on Environmental Protection;

Pursuant to Decree No. 215/2013/NĐ-CP dated November 23, 2013 by the Government prescribing the functions, duties, power and organizational structure of the Ministry of Finance;

In consideration of the request from the Director of the Department of Banking and Financial Institutions;

The Minister of Finance promulgates a Circular giving guidance on the management and use of environmental remediation deposits paid by mining organizations.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of adjustment

This Circular gives guidance on the management and use of environmental remediation deposits paid by mining organizations and individuals (hereinafter referred to as “deposits”) to the Environmental Protection Funds.

Article 2. Subject of application

1. Local Environmental Protection Funds and Viet Nam Environmental Protection Fund (affiliated to the Ministry of Natural Resources and Environment) established by People s Committees of Provinces, central-affiliated cities and The Prime Minister respectively (hereinafter referred to as “Environmental Protection Funds”).

2. Organizations and individuals paying deposits to the Environmental Protection Funds.

3. Other relevant organizations, agencies and individuals. 

Article 3. Definitions

1. Deposit payer: An organization or individual undertaking mineral extraction activities shall pay environmental remediation deposits to the environmental protection funds as provided for in the law and in this Circular.

2. Deposit receiver: Any of the Environmental Protection Funds established and run in accordance with the provisions in the law and in this Circular.

3. Deposit: The sum of money paid to a deposit receiver by a deposit payer to provide guarantee that the latter will execute environmental restoration and remediation works following their mineral extraction activities as prescribed in the law and in this Circular. 

Article 4. Currencies and rates of deposits, methods of deposit payment, time of deposit payment, depositing documents and procedures

Currencies and rates of deposits, methods of deposit payment, time of deposit payment, depositing documents and procedures are specified in Decree No. 19/2015/NĐ-CP dated February 14, 2015 by the Government prescribing the implementation of some articles of the Law on Environmental Protection and Circular No.38/2015/TT-BTNMT dated June 30, 2015 by the Ministry of Natural Resources and Environment on environmental restoration and improvement in mineral extraction activities or other superseding document or any amendments thereto (if any).

Chapter II

MANAGEMENT AND USE OF DEPOSITS

Article 5. Rules for management and use of deposits

1. Deposits shall be used and managed on the principles that the principal is reserved, deposit interest is paid in a timely manner and management cost incurred by the deposit receiver is covered.

2. The process of management and use of deposits shall be carried out publicly, transparently and in compliance with the provisions in this Circular and other relevant legislative documents.

Article 6. Management of deposits

1. Each deposit receiver shall open a separate bank account to monitor deposits.

2. Deposits shall be kept at commercial banks with good operational quality based on credit ratings by State Bank of Viet Nam, on the principle that the principal is reserved and deposit interest payable to deposit payers and management cost incurred by deposit receivers are covered.

3. The interest rate and term of deposits shall be arranged by the deposit receiver with the commercial bank as prescribed by the law.

4. Deposit interest rates:

The deposit interest rate shall be adjusted to the lending interest rate imposed by the deposit receiver and shall be applicable to the total deposit balance.

b) If the deposit receiver does not lend the deposit, the interest rate shall be set according to the lending interest rate imposed by Viet Nam Environmental Protection Fund at the time of depositing.

c) In the event of varied application of interest rates to different organizations by the deposit receiver, interest paid to the deposit payer shall be the arithmetic mean of those interest rates.

d) A deposit payer shall make one-time withdrawal of the interest after receipt of a document certifying the completion of all terms provided for in environmental restoration and remediation plan or other supplemental environmental restoration and remediation plans as prescribed in Article 4 Clause 8 Decree 19/2015/NĐ-CP or its superseding document or any amendments thereto (if any).

5. Fulfillment of tax duties: A deposit receiver shall fulfill tax duties as prescribed in the applicable law.

Article 7. Use of deposits

1. The deposit receiver shall not use deposits for lending and purposes other than the provisions in this Circular.

2. Use of interest on deposits:

a) Total amount of interest on deposits shall be recorded as operating revenue of the deposit receiver;

a) Total amount of deposit interest payable to the deposit payer shall be aggregated with operating cost of the deposit receiver;

3. Return of deposits:

Deposits shall be returned in accordance with provisions of Clause 5 Article 8 of Decree No. 19/2015/NĐ-CP dated February 14, 2015 by the Government on the implementation of some articles of the Law of Environmental Protection and Article 15 of Circular No. 38/2015/TT-BTNMT dated June 30, 2015 by the Ministry of Natural Resources and Environment on environmental restoration and remediation in mineral extraction activities or its superseding document or any amendments thereto (if any);

b) The deposit payer shall send withdrawal plan of deposits to the deposit receiver three months before the date of return of deposits by deposit receivers as prescribed in Clause 5 Article 8 of Decree 19/2015/NĐ-CP or its superseding document or any amendments thereto (if any). 

Chapter III

RESPONSIBILITIES OF AGENCIES

Article 8. Responsibilities of the deposit receiver

1. Request competent authorities to approve environmental restoration and remediation plan or the supplemental environmental remediation plan in cases of insufficient payment of deposits by the deposit payer.

2. Remind deposit payers to pay deposits in a timely manner; request competent authorities to impose penalties for late payments of deposits as prescribed in the applicable law.

3. Comply with the provisions in the law and in this Circular in the management and use of deposits. Report monthly (before the 25^thof the first month of the following quarter) and annually (before March 31 of the following year) to People’s Committees of Provinces, the Ministry of Natural Resources and Environment and the Ministry of Finance on the management and use of deposits.

4. Impose internal regulations on the management and use of deposits as prescribed in this Circular and in other relevant regulations of the law.

5. Provide information and give irregular reports on the management and use of deposits at competent authorities request.

Article 9. Responsibilities of deposit payers

The deposit payer shall pay deposits and perform other tasks as prescribed in this Circular and other relevant regulations of the law.

Article 10. Responsibilities of the Ministry of Finance

1.  Take charge and cooperate with the Ministry of Natural Resources and Environment and relevant agencies to make amendments to regulations related to the management and use of deposits at the Environmental Protection Funds provided for in this Circular (if any).

2. Coordinate with the Ministry of Natural Resources and Environment and relevant agencies in instructing the Environmental Protection Funds and other relevant agencies to implement the provisions in this Circular.

Chapter IV

IMPLEMENTATION ORGANIZATION

Article 11. Transitional provisions

In the event of depositing before the effective date of Decree No. 19/2015/NĐ-CP dated February 14, 2015 by the Government prescribing some articles of the Law on Environmental Protection:

1. Before April 01, 2015: Deposit payers shall be entitled to the demand deposit interest accrued at commercial banks on the deposit balance as prescribed in Decision No. 71/2008/QĐ-TTg dated May 29, 2008 and Decision No. 18/2013/QĐ-TTg dated March 29, 2013 by the Prime Minister on environmental restoration and environmental remediation deposits for mineral exploitation activities.

2. From April 01, 2015: Deposit payers shall be entitled to interest rates set by deposit receivers for the deposit balance as prescribed in Clause 4 Article 6 of this Circular.

Article 12. Implementation provisions

1. This Circular takes effect after 45 days from the signing date.

2. Chief of the Ministry of Finance’s Office, the Director of the Department of Banking and Financial Institutions, head of relevant agencies under the Ministry of Finance, Viet Nam Environmental Protection Fund, local environmental protection funds and concerned organizations, individuals shall implement this Circular.

For the Minister

The Deputy Minister

Tran Van Hieu