Circular No. 14/2019/TT-BTC dated March 15, 2019 of the Ministry of Finance on prescribing the financial management for implementation of the program on development of intellectual assets during 2016-2020

CIRCULAR

Prescribing the financial management for implementation of the program on development of intellectual assets during 2016-2020^[1]

Pursuant to the June 25, 2015 Law on the State Budget;

Pursuant to the June 18, 2013 Law on Science and Technology;

Pursuant to the November 29, 2005 Law on Intellectual Property, and the June 19, 2009 Law Amending and Supplementing a Number of Articles of the Law on Intellectual Property;

Pursuant to the Government’s Decree No. 163/2016/ND-CP of December 21, 2016, detailing a number of articles of the Law on the State Budget;

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

In furtherance of the Prime Minister’s Decision No. 1062/QD-TTg of June 14, 2016, approving the program on development of intellectual assets during 2016-2020;

At the proposal of the Director of the Department of Public Expenditure;

The Minister of Finance promulgates the Circular prescribing the financial management for implementation of the program on development of intellectual assets during 2016-2020.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulationand subjects of application

1. This Circular prescribes the financial management for implementation of the program on development of intellectual assets during 2016-2020 under the Prime Minister’s Decision No. 1062/QD-TTg of June 14, 2016, approving the program on development of intellectual assets during 2016-2020 (below referred to as the program).

2. This Circular applies to organizations and individuals engaged in the management and implementation of the program and other related organizations and individuals.

Article 2.Funds for implementation of the program

Funds for implementation of the program come from:

1. The state budget:

a/ The central budget’s funds for scientific and technological non-business activities shall be allocated for projects and researches (below referred to as tasks), general activities and regular tasks under the program that are directly managed by central authorities, including:

- National-level scientific and technological tasks under the program (managed by the Ministry of Science and Technology), including tasks that satisfy the criteria of national-level scientific and technological tasks as prescribed by the Law on Science and Technology and guiding documents, with priority given to tasks to be performed in difficulty-hit localities and typical, complicated or specialized tasks as prescribed by the Ministry of Science and Technology.

- Ministerial-level scientific and technological tasks (managed by ministries or central agencies), including tasks under the program that satisfy the criteria of ministerial-level scientific and technological tasks, with priority given to tasks related to the raising of the awareness and capacity to create and develop intellectual assets in public science and technology organizations attached to ministries or central agencies.

- General activities and regular tasks for implementation of the program.

b/ Local budgets’ funds for scientific and technological non-business activities shall be allocated for performance of the tasks under the program that are managed by local authorities; for general activities and regular tasks for implementation of the program that are managed by local authorities; and as counterpart funds for performance of national-level tasks to be performed in localities (when necessary to mobilize local resources).

2. Other funding sources, including:

a/ Funds contributed by organizations, individuals and enterprises engaged in the performance of the tasks under the program.

b/ Other lawfully raised funds.

Article 3.Principles of providing financial assistance from, and use of, state budget funds

1. The balancing of state budget funds for the implementation of the program shall be based on ratios of state budget funds and non-state budget funds according to the approved tasks. The State shall provide sufficient funds for the approved tasks according to the contents and principles prescribed in this Circular.

2. State budget funds shall be included in detailed plans by funding source and distributed and used based on the schedule of, and structure of funding sources for, the approved tasks.

3. Contents and levels of state budget funds for the performance of the tasks under the program prescribed in Chapter II of this Circular are the maximum levels. Based on criteria and conditions for selection of organizations and individuals to implement the program and their capacity to balance funding sources, ministers, heads of central agencies, or provincial-level People’s Councils (for the tasks to be covered by local budgets) shall decide on specific contents and levels of expenses for the implementation of the program in adherence to the principles prescribed in this Circular.

4. The Ministry of Science and Technology, other ministries, central agencies, provincial-level People’s Committees and related organizations and individuals shall manage and effectively use state budget funds for the performance of the tasks under the program, avoiding overlap with other programs or projects, and ensuring compliance with proper purposes and current regulations on spending criteria, norms and regimes, while being subject to inspection and supervision by competent agencies in accordance with law.

Article 4.Principles of mobilizing financial sources

1. Plans on mobilizing financial sources shall be formulated for the tasks under the program. Such a plan must state the demand for funds detailed by funding source as prescribed in Article 2 of this Circular, and the capacity to mobilize financial sources for implementation.

2. When approving a task under the program, a competent state agency shall, pursuant to this Circular, determine levels of expenses from other funding sources for the performance of such task, ensuring rational structure of financial sources for the implementation of the program.

3. Organizations and individuals engaged in the task performance shall take the initiative in mobilizing non-state budget resources and use and disburse the mobilized funding sources strictly according to the plans on mobilizing financial sources, ensuring a reasonable ratio of such resources to the approved state budget funds.

4. Levels, accounting and finalization of other funding sources must comply with current regulations applicable to each type of funding source; related units are encouraged to comply with this Circular.

Chapter II

SPECIFIC PROVISIONS

Article 5.Contents and levels of expenses from state budget funds for raising the awareness and capacity to create and develop intellectual assets

1. Dissemination of knowledge about intellectual assets: Contents and levels of expenses must comply with current regulations on regimes and norms of expenses from state budget funds; payment shall be made based on contracts and for actual expenses within the approved fund estimates.

2. Professional training in intellectual assets; and compilation and distribution of documents on intellectual assets: Contents and levels of expenses must comply with the Ministry of Finance’s Circular No. 36/2018/TT-BTC of March 30, 2018, guiding the estimation, management, use and finalization of funds for training and retraining of cadres, civil servants and public employees.

3. Organization of conferences and seminars to help organizations and individuals access and exploit intellectual property information: Contents and levels of expenses must comply with the Ministry of Finance’s Circular No. 40/2017/TT-BTC of April 28, 2017, on work-trip allowances and expenses for conferences.

4. Financial assistance for designing and development of a toolkit for searching information, and packages of specialized intellectual property information; and formulation and application of a model on management and development of intellectual assets in science and technology enterprises and organizations:

a/ Tasks eligible for financial assistance shall be formulated as scientific and technological tasks under the Ministry of Science and Technology’s Circular No. 17/2017/TT-BKHCN of December 29, 2017, prescribing the management of the program on development of intellectual assets during 2016-2020 (below referred to as Circular No. 17/2017/TT-BKHCN).

b/ The estimation of funds for the task performance must comply with Joint Circular No. 55/2015/TTLT/BTC-BKHCN of April 22, 2015, of the Ministry of Finance and Ministry of Science and Technology, guiding norms for the formulation and distribution of fund estimates and finalization of funds for state budget-funded scientific and technological tasks (below referred to as Joint Circular No. 55/2015/TTLT-BTC-BKHCN).

c/ Levels of financial assistance:

- For public non-business units having their regular expenditures wholly covered by the state budget: The state budget shall cover 100% of funds for the task performance.

- For public non-business units covering part of their regular expenditures: The state budget shall cover part of funds for the task performance based on their revenues (not exceeding 70% of total estimates of funds for the task performance).

- For public non-business units covering their regular expenditures and investment expenses, public non-business units covering their regular expenditures, non-public non-business units, enterprises and other organizations: The state budget shall cover up to 50% of total estimates of funds for the task performance.

Article 6.Contents and levels of expenses to be covered by state budget funds for protection registration, management and protection of intellectual assets

1. Financial assistance for the domestic protection registration for products and services, giving priority to scientific research outcomes, key products, national products, product designs and new plant varieties:

a/ For applications for patent protection: not exceeding VND 30 million/application.

b/ For applications for protection of industrial designs: not exceeding VND 15 million/application.

c/ For applications for protection of new plant varieties: not exceeding VND 30 million/application.

2. Financial assistance for overseas protection registration for products and services being scientific research outcomes, key products, national products, product designs and new plant varieties:

The Ministry of Science and Technology (for tasks managed by central authorities) or provincial-level People’s Committees (for tasks managed by local authorities) shall approve contents and levels of financial assistance based on relevant tasks and current expense levels (searching information on protection capacity and transactions, and translating such information into native languages, hiring intellectual property representatives in Vietnam and countries where the protection registration is made, making protection files, monitoring applications for protection in countries where the protection registration is made, and reporting on relevant issues at the request of intellectual property offices in countries where the protection registration is made). The level of financial assistance must not exceed VND 60 million per application; the remainder (if any) shall be covered by organizations and individuals engaged in the implementation of the program.

3. Financial assistance for the management and development of intellectual assets for local special products bearing geographical locations with geographical indications protected, certification marks, or collective marks; application of Vietnamese inventions, or foreign inventions not protected in Vietnam, or application of new plant varieties:

a/ Tasks eligible for financial assistance shall be formulated as scientific and technological tasks under Circular No. 17/2017/TT-BKHCN.

b/ The estimation of funds for the task performance must comply with Joint Circular No. 55/2015/TTLT-BTC-BKHCN.

4. Financial assistance of up to 50% of funds for implementing measures to protect, and raise the efficiency of enforcement of, intellectual property rights:

a/ Tasks eligible for financial assistance shall be formulated as scientific and technological tasks under Circular No. 17/2017/TT-BKHCN.

b/ The estimation of funds for the task performance must comply with Joint Circular No. 55/2015/TTLT-BTC-BKHCN.

5. Financial assistance for organization of displays or exhibitions to distinguish products subject to intellectual property rights protection from infringing products:

State budget funds shall cover expenses for hiring of locations (electricity, water, cleaning and security charges); expenses for transportation, and designing and installation of stalls; and expenses for general activities of the display- or exhibition-organizing committees (decorations, opening and closing ceremonies, printing of documents, and other related expenses) at a level not exceeding VND 10 million per unit participating in displays or exhibitions.

Article 7.Contents and levels of expenses to be covered by state budget funds for commercial operation and development of intellectual assets

1. Financial assistance for introduction and advertising tasks and for carrying out other trade promotion activities for Vietnamese intellectual assets at home and abroad; operating, and increasing the value and competitiveness of, products and services subject to intellectual property rights protection; and commercialization of intellectual assets: Tasks eligible for financial assistance shall be formulated as scientific and technological tasks under Circular No. 17/2017/TT-BKHCN, and the estimation of funds for task performance must comply with Joint Circular No. 55/2015/TTLT-BTC-BKHCN, of which:

a/ For public non-business units having their regular expenditures covered by the state budget: The state budget shall cover 100% of funds for their task performance.

b/ For public non-business units covering part of their regular expenditures: The state budget shall cover part of funds for their task performance based on their revenues (not exceeding 70% of total estimates of funds for their task performance).

c/ For public non-business units covering their regular expenditures and investment expenses, public non-business units covering their regular expenditures, non-public non-business units, enterprises, and other organizations: The state budget shall cover up to 50% of total estimates of funds for their task performance.

2. Financial assistance of up to 50% of funds for the valuation and audit of intellectual assets (with a focus on patents, trade names, and brands of enterprises):

a/ Tasks eligible for financial assistance shall be formulated as scientific and technological tasks under Circular No. 17/2017/TT-BKHCN.

b/ The estimation of funds for the task performance must comply with Joint Circular No. 55/2015/TTLT-BTC-BKHCN.

Article 8.Contents and levels of expenses to be covered by state budget funds for the application of intellectual assets and personal innovative achievements from practice

1. Financial assistance for consultancy on and registration of the establishment of intellectual property rights for persons who have innovations, technical solutions and other innovative achievements recognized by competent organizations, associations or authorities; for improvement, operation and application of intellectual assets and other innovative achievements, especially intellectual assets, and personal innovative achievements of high applicability which can bring about practical benefits for the society and community:

a/ Tasks eligible for financial assistance shall be formulated as scientific and technological tasks under Circular No. 17/2017/TT-BKHCN.

b/ The estimation of funds for the task performance must comply with Joint Circular No. 55/2015/TTLT-BTC-BKHCN.

2. Organization of ceremonies to praise and commend typical persons who have intellectual assets or innovative achievements of high applicability which can bring about practical benefits for the community and society: Contents and levels of expenses must comply with those applicable to scientific and technological innovation contests organized by ministries, central agencies or provinces or centrally run cities as prescribed in the Ministry of Finance’s Circular No. 27/2018/TT-BTC of March 21, 2018, prescribing the financial regime for organization of Vietnam’s scientific and technological innovation award, technical innovation contests, and innovation contests for adolescents and children.

Article 9.Contents and levels of expenses to be covered by state budget funds for the management work and general activities of the program

1. Expenses for the communication of the program’s activities and results of the performance of the tasks under the program: Contents and levels of expenses must comply with the current regulations on regimes and norms of state budget expenditures; payment shall be made based on contracts and for actual expenses within the approved fund estimates.

2. Expenses for consultancy for identifying tasks and placing orders for task performance; selection of organizations and individuals to perform the tasks under the program; inspection, assessment and takeover test of the tasks under the program; application, dissemination and multiplication of task performance outcomes; and hiring of consultants (if necessary) to provide consultancy on the contents and tasks arising in the course of program management and implementation organization: Contents and levels of expenses must comply with Joint Circular No. 55/2015/TTLT-BTC-BKHCN.

3. Expenses for surveys to develop and carry out activities for directing and organizing the implementation of the program:

a/ Contents and number of surveys must comply with decisions of the Minister of Science and Technology.

b/ Contents and levels of expenses must comply with the Ministry of Finance’s Circular No. 109/2016/TT-BTC of June 30, 2016, prescribing the estimation, management, use and finalization of expenses for statistical surveys and national-level overall statistical surveys.

4. Expenses for payment of work-trip allowances and organization of conferences to review the implementation of the program: Contents and levels of expenses must comply with the Ministry of Finance’s Circular No. 40/2017/TT-BTC of April 28, 2017, prescribing work-trip allowances and expenses for conferences.

5. Expenses for stationery, and public services (electricity, water and communication charges): Payment shall be made based on contracts and for actual expenses within the approved fund estimates.

6. Expenses for outbound and inbound delegations: Contents and levels of expenses must comply with the Ministry of Finance’s Circular No. 102/2012/TT-BTC of June 21, 2012, prescribing work-trip allowances for state officials and civil servants on overseas short-term work trips funded by the state budget; and the Ministry of Finance’s Circular No. 71/2018/TT-BTC of August 10, 2018, on regimes for reception of foreign guests on work trips to Vietnam, expenses for organization of international conferences and seminars in Vietnam, and regimes for reception of domestic guests.

7. Expenses for purchase of office equipment, and repair of assets for management work and general activities of the program: Contents and levels of expenses must comply with the current regulations on criteria, norms and regimes for management and use of machinery and equipment of state agencies and public non-business organizations and units, and regulations on the use of state capital for procurement to maintain regular activities of agencies and units.

8. Other expenses directly serving the program’s activities: Contents and levels of expenses must comply with the current regulations on regimes and norms of state budget expenditures; payment shall be made based on contracts and for actual expenses within the approved fund estimates.

Article 10.Formulation of state budget estimates, execution of state budget estimates, and finalization of state budget funds for implementation of the program

The formulation of state budget estimates, execution of state budget estimates, and finalization of state budget funds must comply with the Law on the State Budget and current regulations. This Circular gives some specific provisions below:

1. Formulation of state budget estimates: Annually, at the time of estimation of state budget revenues and expenditures, organizations and units assigned to perform the program’s tasks shall, based on the approved tasks and guidance in this Circular, make estimates of expenses for performance of the program’s tasks, and send them to managing agencies for inclusion in fund estimates of ministries, sectors and localities (according to the state budget management decentralization), then send them to same-level finance agencies for submission to competent authorities for approval, and concurrently send them to the Ministry of Science and Technology for summarization and coordinated implementation.

2. The distribution and assignment of fund estimates, and payment and finalization of expenses of the program must comply with the Law on the State Budget and guiding documents.

Article 11.Financial inspection of the implementation of the program

1. Annually, the Ministry of Science and Technology shall assume the prime responsibility for, and coordinate with the Ministry of Finance, other ministries, central agencies, localities and related units in, conducting scheduled or unscheduled inspection of the implementation of the tasks and contents of the program and management, use, payment and finalization of expenses for implementation of the program.

Central- and local-level units assigned to manage funding sources and related units shall conduct scheduled or unscheduled inspection of the management, use, payment and finalization of expenses for implementation of the program under their management.

2. In case a task is not performed as planned, the mobilization and disbursement of other funding sources are behind schedule or do not comply with the structure and total amount of funds prescribed in the competent authorities’ decisions or signed contracts; or the allocated funds are improperly used, the competent state agency managing the program shall suspend task performance; exclude improperly paid amounts and remit them into the state budget (for amounts coming from the state budget); or request responsible units to handle improperly paid amounts (for amounts coming from other funding sources), and take other handling measures according to its competence or propose competent agencies to handle the case in accordance with law.

In case of suspension from the task performance or recovery of amounts improperly paid at state treasury offices, the competent state agency managing the program shall issue a decision to suspend task performance and recover improperly paid amounts, and concurrently send it to the State Treasury for use as a basis for remittance into the state budget.

Chapter III

ORGANIZATION OF IMPLEMENTATION

Article 12.Implementation provisions

1. This Circular takes effect on May 1, 2019.

2. The program’s tasks approved before the effective date of this Circular will continue to be performed under current regulations effective at the time such tasks are approved.

3. In case the documents referred to in this Circular are amended, supplemented or replaced, the amending, supplementing or replacing documents shall apply.

4. Any problems arising in the course of implementation of this Circular should be reported to the Ministry of Finance and Ministry of Science and Technology for coordinated settlement.-

For the Minister of Finance
Deputy Minister
TRAN VAN HIEU