Circular No. 56/2014/TT-BTC dated April 28,2014 of the Ministry of Finance guiding the Government’s Decree No. 177/2013/ND-CP of November 14, 2013, detailing and guiding the implementation of a number of articles of the Law on Prices

CIRCULAR

Guiding the Government’s Decree No. 177/2013/ND-CP of November 14, 2013, detailing and guiding the implementation of a number of articles of the Law on Prices[1]

Pursuant to the Government’s Decree No. 177/2013/ND-CP of November 14, 2013, detailing and guiding the implementation of a number of articles of the Law on Prices;

Pursuant to the Government’s Decree No. 215/2013/ND-CP of December 23, 2013, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

At the proposal of the Director of the Department of Price Management;

The Minister of Finance promulgates the Circular guiding the Government’s Decree No. 177/2013/ND-CP of November 14, 2013, detailing and guiding the implementation of a number of articles of the Law on Prices.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

This Circular guides a number of articles of the Government’s Decree No. 177/2013/ND-CP of November 14, 2013, detailing and guiding the implementation of a number of articles of the Law on Prices (below referred to as Decree No. 177/2013/ND-CP) regarding price valorization; price determination by the State; price consultation; inspection of price-forming factors; and price declaration.

Article 2.Subjects of application

Producers and traders; consumers; state agencies; and other organizations and individuals engaged in price valorization, price determination; price consultation; inspection of price-forming factors; and price declaration in the Vietnamese territory.

Chapter II

SPECIFIC PROVISIONS

Section 1

PRICE VALORIZATION

Article 3.Responsibilities of advisory agencies under the Ministry of Finance, ministries, ministerial-level agencies and People’s Committees of provinces and centrally run cities in conducting price valorization under Article 7 of Decree No. 177/2013/ND-CP

1. The Ministry of Finance’s advisory agency is the Department of Price Management, which shall:

a/ Monitor, summarize, analyze and forecast price developments in the domestic and world markets; assume the prime responsibility for, and coordinate with related agencies in, working out price valorization policies and measures for submission to the Minister of Finance for reporting to the Government for consideration and decision; guide and organize the implementation of price valorization measures falling under the competence of the Ministry of Finance;

b/ Coordinate with ministries and ministerial-level agencies in considering and deciding on price valorization policies and measures falling under the competence of ministries and ministerial-level agencies; guide and organize the implementation of price valorization measures according to regulations;

c/ Summarize recommendations of ministries and sectors and opinions of localities and report them to the Minister of Finance for reporting to the Government to serve as a basis for the Government to consider and propose to the National Assembly Standing Committee amendments to the list of goods and services subject to price valorization;

d/ Assume the prime responsibility for, and coordinate with related agencies in, proposing the Government to consider amending and supplementing the list of commodity items eligible for setting up of price valorization funds; propose the Minister of Finance to decide on the levels of deduction for setting up and use of price valorization funds; and supervise the deduction for setting up, management and use of, price valorization funds for each commodity item prescribed in Clause 2, Article 5 of Decree No. 177/2013/ND-CP;

dd/ Report on the implementation of price valorization measures to the Minister of Finance for consideration and reporting to the Prime Minister.

2. Advisory agencies of ministries and ministerial-level agencies shall perform tasks prescribed by their ministries and ministerial-level agencies.

3. Advisory agencies of People’s Committees of provinces and centrally run cities (below referred to as provincial-level People’s Committees) are provincial-level Finance Departments, which shall:

a/ Assume the prime responsibility for, and coordinate with related agencies and units in their localities in, timely advising provincial-level People’s Committees to decide on the application of price valorization measures according to their competence;

b/ Assume the prime responsibility for, and coordinate with related agencies and units in their localities in, organizing the implementation of price valorization measures decided by the Government or provincial-level People’s Committees;

c/ Assume the prime responsibility for, and coordinate with related agencies and units in, guiding and examining the implementation of price valorization measures by agencies, organizations and individuals in their localities;

d/ Report to the Ministry of Finance and provincial-level People’s Committees on the implementation of price valorization measures applied in their localities under decisions of the Government or provincial-level People’s Committees.

Article 4.Agencies receiving price registration forms and entities required to register prices

1. The Ministry of Finance (the Department of Price Management) shall receive and examine price registration forms for the goods and services prescribed at Points c, d, dd, e, g, h, i and k, Clause 1, Article 3 of Decree No. 177/2013/ND-CP, of production and business organizations and individuals (below referred to as organizations and individuals) required to register prices with the Ministry of Finance.

The Department of Price Management shall select organizations and individuals required to register prices with the Ministry of Finance from the following entities and submit the list of these organization and individuals to the Minister of Finance for consideration and promulgation:

- Economic groups, corporations, joint-stock companies and limited-liability companies each having a production and business network covering 2 or more provinces or centrally run cities.

- Monopolistic enterprises and business people; enterprises and groups of enterprises holding dominant market shares as prescribed in the Law on Competition.

On July 1 every year or at the request of the Minister of Finance, the Department of Price Management shall review the list of organizations and individuals required to register prices with the Ministry of Finance (the Department of Price Management) and, if necessary, propose the Minister of Finance to consider adjusting such list.

2. Provincial-level Finance Departments, line departments and district-level People’s Committees which are assigned by provincial-level People’s Committees, shall receive price registration forms for the goods and services prescribed in Clause 1, Article 3 of Decree No. 177/2013/ND-CP, of organizations and individuals (including agents entitled to decide on or adjust prices) that are headquartered in their localities and neither named on the list of organizations and individuals required to register prices with the Ministry of Finance (the Department of Price Management) nor mentioned in separate price registration guidelines jointly issued by the Ministry of Finance and line ministries or guidelines issued by line ministries according to their competence.

Branches and agents not entitled to decide on or adjust prices (those signing distribution contracts with suppliers and selling or purchasing goods and services at the prices set by such suppliers) are not required to make price registration but shall notify in writing that they are not entitled to decide on or adjust prices to provincial-level Finance Departments of the localities where they are headquartered, and shall, after receiving suppliers’ price adjustment decisions or notices, provide information on these prices to provincial-level Finance Departments or district-level People’s Committees which are assigned by provincial-level People’s Committees, and take responsibility for the accuracy of provided information.

Provincial-level Finance Departments shall assist provincial-level People’s Committees in announcing the list of organizations and individuals required to make price registration in their localities and assign the task of receiving and examining price registration forms to provincial-level Finance Departments, line departments and district-level People’s Committees.

On July 1 every year or at the request of provincial-level People’s Committees, provincial-level Finance Departments shall assume the prime responsibility for, and coordinate with provincial-level Planning and Investment Departments, Tax Departments and specialized agencies in, assisting provincial-level People’s Committees in reviewing and adjusting the lists of organizations and individuals required to register prices in their localities.

3. Entities required to register prices of preventive and curative medicines for human use on the list of essential curative medicines and agencies receiving price registration forms shall comply with the guidance of the Ministry of Health.

4. Lists of organizations and individuals required to register prices; email addresses, telephone numbers and fax numbers of agencies assigned to receive price registration forms defined in Clauses 1 and 2 of this Article shall be posted on the websites of such agencies.

5. For goods and services subject to price registration under specialized laws, such specialized laws shall apply.

Article 5.Methods of price registration

1. An organization or individual shall make price registration under Article 6 of Decree No. 177/2013/ND-CP by filling in the price registration form (below referred to as form) and send it to a state agency competent to receive forms (below referred to as form-receiving agency) by any of the following methods:

a/ Directly submitting 2 copies of the form at the office of the form-receiving agency (enclosed with a stamped envelope bearing the name and address of the organization or individual and full name and telephone number of the responsible person);

b/ Sending through the official correspondence channel 2 copies of the form (enclosed with a stamped envelope bearing the name and address of the organization or individual and full name and telephone number of the responsible person) to the form-receiving agency;

c/ E-mailing the form bearing the organization’s or individual’s e-signature or a scanned copy of the form bearing the signature and seal to the e-mail address notified by the form-receiving agency or faxing the form and making a phone call to notify the faxing to the form-receiving agency. At the same time, sending through the official correspondence channel to the form-receiving agency 2 copies of the form (enclosed with a stamped envelope bearing the name and address of the organization or individual and full name and telephone number of the responsible person).

2. The price registration form shall be filled in under the guidance in Appendix 1 to this Circular.

3. The method of registering prices of preventive and curative medicines for human use on the list of essential curative medicines must comply with the Ministry of Health’s guidance.

Article 6.Process of receiving and examining price registration forms

1. Process of receiving a form

a/ If the form is submitted directly:

- In case the form is completely filled in and submitted with sufficient copies as prescribed, the officer who receives the form shall affix an incoming-mail stamp indicating the date of receipt on its 2 copies, return one copy to the submitter and forward the other to the form-receiving agency’s leader and professional sections or departments for examination right on the working day when he/she receives the form or early in the subsequent working day;

- In case the form is incompletely filled in or submitted with insufficient copies as prescribed, the officer who receives the form shall write down the reason for returning and contents to be supplemented and immediately return it to the submitter.

b/ If the form is sent through the official correspondence channel or by fax or email:

- The officer who receives the form shall check the completeness and number of copies of the form upon receiving it. In case the form is completely filled in and submitted with sufficient copies as prescribed, he/she shall affix an incoming-mail stamp indicating the date of receipt to its 2 copies and send back by post one copy to the organization or individual and forward the other to the form-receiving agency’s leader and professional sections or departments for examination right on the working day when he/she receives the form or early in the subsequent working day;

- In case the form is incompletely filled in or submitted with insufficient copies as prescribed, within 2 working days after receiving the form, the form-receiving agency shall send a notice through the official correspondence channel or by fax or email, requesting the organization or individual to completely fill in the form or submit more copies. The date when the organization or individual submits the form completely filled in or submits more copies shall be regarded as the date of receiving the form, and the officer who receives the form shall affix to the form an incoming-mail stamp indicating the date of receipt.

c/ Past 5 working days after receiving the form prescribed at Point a or b of this Clause, if the form-receiving agency does not request in writing explanation about the contents of the form, the organization or individual may sell or purchase goods or services at the registered prices.

2. Process of examining a form

a/ The form-receiving agency shall examine the form regarding the date of application of the registered prices, the specific price table, expense items constituting the prices, and explanations about the reasons for price adjustment, and the reasonability of price-forming factors;

b/ In case the reasons for price adjustment stated by the organization or individual are unreasonable or not related to the increase or decrease of goods or service prices, within 4 working days after receiving the form, professional sections or departments shall report such to competent authorities for the latter to send through the official correspondence channel or by fax or email a notice requesting the organization or individual not to apply the registered prices. The organization or individual shall comply with the request or shall re-register the prices according to regulations;

c/ In case some contents of the form are unclear or when there is an increase or a decrease in price-forming factors leading to the increase or decrease of registered prices which need further explanations (except the cases prescribed at Point b of this Clause), within 4 working days after receiving the form, professional sections or departments shall report such to competent authorities for the latter to send through the  official correspondence channel or by fax or email a notice requesting the organization or individual to explain unclear contents of the form and reasons for price adjustment and informing the organization or individual of contents to be revised and the time limit for submitting the explanation document to the form-receiving agency. The explanation document shall be submitted according to the form-receiving process prescribed in Clause 1 of this Article;

- The time between the date when the form-receiving agency issues a notice requesting explanation and the date when the form-receiving agency receives the explanation document, determined based on the incoming-mail stamp affixed by the form-receiving agency or on the sending date indicated in the e-mail of the organization or individual, must not exceed 10 wording days;

- The time limit for the form-receiving agency to examine the explanation document is 5 working day from the date of receipt, determined based on the incoming-mail stamp affixed by the form-receiving agency;

- Past 5 working days from the date the form-receiving agency receives the explanation document, if such agency makes no request for re-explanation, the organization or individual may adjust prices from the time proposed in the explanation document (if any);

- In case the organization’s or individual’s explanation fails to comply with its  requirements, the form-receiving agency shall, within 5 working days after receiving the explanation document, make a written request for re-explanation. The re-explanation must comply with the process of first-time explanation prescribed in this Clause;

- After 3 (three) times of explanation, if the organization or individual still fails to comply with its requirements, the form-receiving agency shall request in writing the organization or individual to sell or purchase goods or services at the prices already applied before making price registration.

Article 7.Rights and responsibilities of organizations and individuals in price registration

1. Form-receiving agencies:

a/ To use prices registered by organizations and individuals for the purpose of analyzing, summarizing and forecasting developments of market prices; to examine price-forming factors and publicize them in the mass media to serve the purpose of price valorization, and inspect and examine the performance of financial obligations prescribed by law when necessary;

b/ To strictly follow the processes of receiving and examining price registration forms prescribed in Article 6 of this Circular;

c/ To ensure confidentiality of price registration forms, written explanations of price-forming structures and registered prices of organizations and individuals until the registered prices are applied.

2. Organizations and individuals required to register prices:

a/ To purchase and sell goods and services at the registered prices if, past 5 working days from the date of making price registration according to regulations, they receive no document (sent through the official correspondence channel or by fax or email) from form-receiving agencies requesting them not to apply the registered prices as prescribed at Point b, Clause 2 of Article 6 or to explain contents of price registration forms as prescribed at Point c, Clause 2, Article 6 of this Circular;

b/ To make price registration in accordance with law and this Circular; to take responsibility before law for the accuracy of registered prices; to give explanation at the request (if any) of competent state agencies as prescribed in Clause 2, Article 6 of this Circular;

c/ Not to apply registered prices in the purchase and sale of goods and services for at least 5 working days from the date of making price registration as prescribed or during the period of giving explanation at the request of form-receiving agencies;

d/ To publicize information on registered prices; to publicize and post up registered prices within their distribution systems (if any); to comply with publicized  prices; to abide by price valorization measures applied by competent state agencies in accordance with law;

dd/ To notify in writing form-receiving agencies of any changes in the starting time of application of registered prices;

e/ To comply with law-prescribed sanctions against price-related administrative violations of failing to make price registration; setting registered prices at variance with the guidance of competent agencies;  arbitrarily applying prices higher than the registered prices while failing to explain such prices as requested in writing by competent state agencies; arbitrarily applying prices higher than the registered prices though competent state agencies have requested suspension of the application of new prices and re-registration of prices.

Section 2

PRICE DETERMINATION

Article 8.Powers and responsibilities of advisory agencies under ministries, ministerial-level agencies and provincial-level People’s Committees in price determination by the State prescribed in Article 8 of Decree No. 177/2013/ND-CP

1. The Department of Price Management shall give advice to the Ministry of Finance on price determination as follows:

a/ Assist the Minister of Finance in appraising price plans proposed by ministries and sectors for goods and services of which the prices are to be determined by the Government or the Prime Minister;

b/ Assist the Minister of Finance in setting specific prices for take-off and landing, inbound and outbound air traffic control, air navigation support and security screening services; and establishing fare frames for air transport on monopolistic domestic routes; state monopolistic services at airports and airfields in accordance with the Law on Vietnam Civil Aviation after obtaining written appraisal opinions of the Ministry of Transport;

c/ Assist the Minister of Finance in establishing charge frames for residential clean water after obtaining written opinions of related agencies;

d/ Appraise plans on maximum purchase prices and minimum sale prices of national reserves goods developed by the General Department of State Reserves for submission to the Minister of Finance for consideration and decision;

dd/ Appraise, and assist the Minister of Finance in establishing, maximum purchase prices and minimum sale prices of national reserves goods (except national reserves goods in the fields of national defense and security), which are managed by other ministries or sectors but subject to price determination by the Ministry of Finance, on the basis of price plans made and submitted by national reserves management units to ministries or sectors in charge of such national reserves goods for approval and reporting to the Ministry of Finance (the Department of Price Management) for appraisal and submission to the Minister of Finance for consideration and decision;

e/ Appraise, and make written notices of, expenses for preservation and receipt and delivery at warehouse gate of national reserves goods for which expense norms are not yet available and maximum expenses for delivery of national reserve goods outside warehouse gate on the basis of the plans made and submitted by the General Department of State Reserves to the Ministry of Finance (the Department of Price Management) for appraisal, or made and submitted by national reserves management units to ministries or sectors in charge of such national reserves goods (including also national reserves goods for national defense or security) for approval and reporting to the Ministry of Finance (the Department of Price Management) for appraisal;

g/ Assist the Minister of Finance in setting maximum prices of public-utility products and services and charges of public administration services (except products and services subject to price or charge determination by other ministries or sectors or provincial-level People’s Committees) produced or provided using central budget funds on orders placed or under plans assigned by competent state agencies; maximum prices of goods and services produced or provided using central budget funds on orders placed or plans assigned by the Prime Minister on the basis of price plans made and submitted by goods producers or service providers to line ministries for appraisal and reporting to the Ministry of Finance for consideration and decision. When it is necessary to clarify some contents of the price plans made by goods producers or service providers, the Ministry of Finance (the Department of Price Management) shall consult line ministries or request goods producers or service providers to report and give specific explanations;

h/ Assist the Minister of Finance in setting maximum or minimum rental rates for state assets being infrastructure facilities serving national or public interests after obtaining written appraisal opinions of line ministries;

i/ Advise the Minister of Finance in setting minimum prices of home-made cigarettes after obtaining written appraisal opinions of the Ministry of Industry and Trade;

k/ Assume the prime responsibility for, and coordinate with related agencies in, inspecting the implementation of price-related decisions issued by the Government, the Prime Minister or the Minister of Finance;

l/ Assist the Minister on Finance in monitoring and supervising price determination decisions for goods and services subject to price determination by ministries or sectors;

m/ Assist the Minister of Finance in reaching agreement with the Minister of National Defense and the Ministry of Public Security on the principles on determining prices of national reserves goods for defense or security.

2. Advisory agencies under ministries and ministerial-level agencies shall perform tasks assigned by their ministries or ministerial-level agencies and prescribed by specialized laws.

Ministries, sectors and units shall set specific prices of goods and services based on the price frames, maximum prices and minimum prices (including also maximum sale prices and minimum purchase prices of national reserves goods), maximum expenses (for preservation, receipt and delivery) of national reserves goods, for which Ministry of Finance-prescribed norms are not yet available, and report such to the Ministry of Finance (the Department of Price Management).

3. Provincial-level Finance Departments shall give advice to provincial-level People’s Committees in price determination as follows:

a/ Assist provincial-level People’s Committees in establishing the order and process of appraising price plans and in decentralizing the power to decide on prices;

b/ Assist provincial-level People’s Committees in assigning specific powers and responsibilities to agencies and units with regard to goods and services subject to price determination by provincial-level People’s Committees;

c/ Appraise, and submit to provincial-level People’s Committees for decision, prices or appraise price plans at the request of line departments or production and business units for the latter to submit them to provincial-level People’s Committees for decision in accordance with the law on prices and other relevant laws.

Article 9.Price plan dossiers

1. Agencies, units, producers or traders shall make a price plan dossier as prescribed in Clause 2 of this Article and send one dossier set of original or copied documents to competent state agencies prescribed in Articles 8, 9 and 10 of Decree No. 177/2013/ND-CP and the guidance in this Circular.

2. A price plan dossier submitted to a competent agency or person must comprise:

a/ A written request for price determination or adjustment, made according to the form provided in Appendix 2a to this Circular;

b/ The price plan, made according to the form provided in Appendix 2a to this Circular. The contents of the price plan are specified in Clauses 3 and 4 of this Article;

c/ A summary of opinions of related agencies, enclosed with copies of documents expressing these opinions as prescribed (if any);

d/ Documents appraising the price plan, made by competent appraisal agencies according to regulations;

dd/ Other relevant documents.

3. A price plan must have the following principal contents:

a/ The necessity for and purposes of price determination or adjustment (clearly stating the situation of production of or trading in goods or services subject to price determination or adjustment; price developments in the domestic and world markets; the necessity for changing prices, etc.);

b/ Grounds for price determination or adjustment;

c/ Calculations of factors forming the purchase or sale price; prices calculated according to the Ministry of Finance-prescribed common price determination method and price determination methods guided by competent agencies in accordance with law;

- Comparison between price-forming factors and prices under the proposed price plan and those approved under the previous price plan; reasons for price increase or decrease;

- Comparison between proposed prices and prices of similar goods or services in the domestic market and some regional markets (if any).

d/ Expected impacts of new prices on production, business and daily-life activities and on state budget revenues and expenditures (if any);

dd/ Measures for organizing the application of new prices (if any).

4. Particularly for national reserves goods, contents of price plans are prescribed as follows:

a/ A plan on maximum purchase prices and minimum sale prices of national reserves goods must have the following contents:

- The contents prescribed at Points a, b and c, Clause 3 of this Article;

- For the contents prescribed at Point c, Clause 3 of this Article, there must be calculations, valid and reasonable documents and other papers (originals or certified copies) on the quantities of national reserves goods;

b/ In case expense norms for preservation of national reserves goods and for goods receipt and delivery at warehouse gates are not yet available, a plan on expenses for preservation, expenses for goods receipt and delivery at warehouse gates and maximum expenses for goods delivery outside warehouse gates must cover:

- A written request for appraisal of the plan, made by a ministry or sector or the General Department of State Reserves (according to the form provided in Appendix 2b to this Circular);

- Calculations, reasonable and valid documents and other papers (originals or certified copies) on the quantities of national reserves goods received, delivered and preserved, made by regional State Reserves Departments or national reserves management units.

Section 3

PRICE CONSULTATION

Article 10.Price consultation dossiers

1. When proposing competent agencies to hold price consultation or when being subject to price consultation at the request of the Prime Minister, a minister, the head of a ministerial-level agency or government-attached agency or a provincial-level People’s Committee chairperson, the purchaser or seller or both shall prepare price consultation dossiers as prescribed in Clause 2 of this Article and send them to the state agency competent to hold price consultation for consideration and decision.

2. A price consultation dossier must comprise:

a/ A written proposal for price consultation, made by the purchaser or seller or both; or a written request for price consultation, made by a competent state agency in charge of the goods or services subject to price consultation;

b/ Price plan for consultation:

- In case the seller proposes price consultation, the seller shall make a price plan for consultation and send it to the agency competent to hold price consultation, clearly explaining the following contents:

+ The production, consumption, import and export and supply-demand of the goods or service;

+ Analysis of the prices proposed for consultation: Comparison of such prices with prices of similar goods or services in the market; grounds for price calculation; a detailed list of price-forming factors, analysis of and explanations about price calculation (with an analysis of and comparison with price-forming factors before requesting or proposing price consultation and reasons for price increase or decrease); analysis of the impacts of new prices on production and business efficiency, income of the enterprise’s employees, and performance of obligations toward the state budget;

+ Matters on which the seller and purchaser cannot reach agreement and the seller’s arguments on these matters; prices proposed for consultation;

+ Petitions (if any).

- In case the purchaser proposes price consultation, the purchaser shall make a price plan for consultation and send it to the agency competent to hold price consultation, clearly explaining the following contents:

+ A detailed list of price-forming factors of their goods or services calculated based on the new input prices proposed by the purchaser and a detailed list of price-forming factors calculated based on the prices proposed by the seller. A written explanation about the price calculation structure (with an analysis of and comparison with input prices before requesting or proposing consultation);

+ Comparison with prices of similar goods or services in the market;

+ Analysis of the impacts of new prices on production and business efficiency, performance of obligations toward the state budget and possibility of consumer acceptance;

+ Matters on which the purchaser and seller cannot reach agreement and the purchaser’s arguments on these matters; prices proposed for consultation;

- Other petitions (if any);

- In case both purchaser and seller propose price consultation, the two parties shall reach agreement so that either of them shall make a price plan for consultation under the above guidance;

- In case a competent state agency requests price consultation, both the purchaser and seller shall make price plans for consultation under the above guidance.

3. The form of price consultation dossier is guided in Appendix 3 to this Circular.

Article 11.Order of holding price consultation

1. The order of holding price consultation must comply with Clause 2, Article 12 of Decree No. 177/2013/ND-CP and the guidance in this Article.

2. The time limit for an agency competent to hold price consultation to preliminarily examine a price consultation dossier is 5 working days after such dossier is submitted (determined based on the incoming-mail stamp).

3. In case the dossier is invalid as prescribed, the agency holding price consultation shall notify in writing such to the price consultation parties for completing the dossier according to regulations.

If the price consultation is held at the request of the Prime Minister, a minister, the head of a ministerial-level agency or government-attached agency or a provincial-level People’s Committee chairperson, the time limit for parties to complete price consultation dossiers is 15 working days counting based on the postal mark or incoming-mail stamp.

4. Within 15 working day after receiving a valid price consultation dossier as prescribed (counting based on the incoming-mail stamp), the agency competent to hold price consultation shall hold price consultation.

5. In case the purchaser or seller proposes or both propose price consultation, they may withdraw price consultation dossiers and reach agreement among themselves on the sale and purchase prices of goods or services before a competent agency holds price consultation and shall report on the agreed prices and time of application of such prices to the agency competent to hold price consultation.

6. At the price consultation meeting:

a/  The agency competent to hold price consultation shall present the objectives, requirements and content of price consultation; request the purchaser and the seller to present their price consultation dossiers and price plans for consultation and relevant agencies to give opinions;

b/ The agency competent to hold price consultation shall make conclusions and prepare a minutes (signed by the representatives of the agency holding price consultation, the purchaser and the buyer) and issue a notice of the consultation result to the purchaser and the seller for compliance.

7. If price consultation has been held but involved parties cannot reach agreement on prices, the agency holding price consultation (the Department of Price Management or a provincial-level Finance Department) shall set a temporary price which must be adhered to by the two parties.

The decision setting the temporary price issued by the Department of Price Management or the provincial-level Finance Department is valid for at most 6 months. During the period of application of this decision, involved parties may continue negotiating on prices. If the parties reach agreement on prices, they may apply the agreed price but shall report it and the time of its application to the agency holding price consultation.

Past the 6-month period, if involved parties still fail to reach agreement on prices, the competent agency shall hold price consultation for the second time. If no agreement is reach, the decision setting the temporary price will continue to be valid until an agreement on price is reached.

Section 4

INSPECTION OF PRICE-FORMING FACTORS

Article 12.Organization of inspection of price-forming factors

1. Cases subject to inspection of price-forming factors, order and time for conducting inspection are prescribed in Article 13 of Decree No. 177/2013/ND-CP.

2. Documents serving inspection of price-forming factors include:

a/ Plans on calculation of goods and service prices made by enterprises themselves according to the Minister of Finance-prescribed common price determination method and the guidance on price determination methods applicable to each specific field issued by competent agencies, or according to an appropriate price determination method; documents and books serving the making of price plans (originals or certified copies); technical-economic norms used to determine costs of goods or services;

b/ The situation of goods circulation (quantity of goods left in stock at the beginning of each year, quarter and month; quantity of goods received and delivered in each year, quarter and month; and quantity of goods left in stock at the end of each year, quarter and month) and service provision;

c/ The audited financial statement of the year related to the inspection of price-forming factors;

d/ Other documents related to contents of inspection of price-forming factors.

Article 13.Competence and responsibility for inspection of price-forming factors

1. The Ministry of Finance (the Department of Price Management) shall assume the prime responsibility for, and coordinate with related agencies in, organizing the inspection of price-forming factors for goods and services on the list of those subject to price valorization; goods and services subject to price determination by the Government, the Prime Minister or the Minister of Finance; and other goods and services when seeing abnormal price developments at the request of the Prime Minister or the Minister of Finance.

2. Ministries and ministerial-level agencies shall assume the prime responsibility for, and coordinate with the Ministry of Finance (the Department of Price Management) and provincial-level People’s Committees (provincial-level Finance Departments) in, inspecting price-forming factors for goods and services subject to price determination by ministers or heads of ministerial-level agencies, and other goods and services when seeing abnormal price developments at the request of ministers or heads of ministerial-level agencies.

3. Provincial-level People’s Committees shall assume the prime responsibility for, and coordinate with related agencies in, organizing the inspection of price-forming factors for goods and services on the list of those subject to price valorization produced or provided by organizations and individuals in their localities; goods and services subject to price determination by provincial-level People’s Committees; and other goods and services when seeing abnormal price developments at the request of provincial-level People’s Committee chairpersons.

Section 5

PRICE DECLARATION

Article 14.Agencies receiving price declaration documents and entities required to declare prices

1. The Ministry of Finance (the Department of Price Management) shall receive and examine price declaration documents for the goods and services prescribed at Points c, d, dd, e, g, h, i and k, Clause 1, Article 3 of Decree No. 177/2013/ND-CP during the time when the State does not require price registration for the purpose of price valorization, and the goods and services prescribed at Points b, c, d, dd, e, h, i and m, Clause 1, Article 15 of Decree No. 177/2013/ND-CP, of organizations and individuals required to register prices with the Ministry of Finance.

The Department of Price Management shall select and propose the Minister of Finance to consider and promulgate a list of organizations and individuals required to declare prices with the Ministry of Finance with regard to:

- Economic groups, corporations, joint-stock companies and limited-liability companies each having a production and business network covering 2 or more provinces or centrally run cities.

- Monopolistic enterprises and business people; enterprises and groups of enterprises holding dominant market shares as prescribed in the Law on Competition.

On July 1 every year or at the request of the Minister of Finance, the Department of Price Management shall review the list of organizations and individuals required to register prices with the Ministry of Finance (the Department of Price Management) and, if necessary, propose the Minister of Finance to consider adjusting such list.

2. Provincial-level Finance Departments, line departments and district-level People’s Committees, which are assigned by provincial-level People’s Committees, shall receive price declaration documents for the goods and services prescribed in Clause 1, Article 3 of Decree No. 177/2013/ND-CP during the time when the State does not require price registration for the purpose of price valorization; and for the goods and services prescribed at Points b, c, d, dd, e, g, h, i, k, l and m, Clause 1, Article 15 of Decree No. 199/2013/ND-CP; specialized goods and services subject to price declaration in localities under Clause 3, Article 5 of Decree No. 177/2013/ND-CP, of organizations and individuals (including also agents entitled to decide on or adjust prices) which are headquartered in their localities and neither named on the list of those required to register prices with the Ministry of Finance (the Department of Price Management) nor mentioned in the separate price declaration guidelines jointly issued by the Ministry of Finance and a line ministry or guidelines issued by a line ministry according to its competence.

Branches and agents not entitled to decide on or adjust prices (those directly signing distribution contracts with suppliers and selling and purchasing goods and services at the prices decided by such suppliers) are not required to declare prices but shall notify in writing provincial-level Finance Departments of the localities where they are headquartered that they are not entitled to decide on or adjust prices; and shall provide information on the prices set by suppliers to provincial-level Finance Departments or district-level People’s Committees which are assigned by provincial-level People’s Committees after receiving suppliers’ price adjustment decisions or notices and shall take responsibility for the accuracy of provided information.

Provincial-level Finance Departments shall assist provincial-level People’s Committees in announcing the list of organizations and individuals required to make price declaration in their localities and assign the task of receiving and examining price declaration documents to provincial-level Finance Departments, line departments and district-level People’s Committees.

On July 1 every year or at the request of provincial-level People’s Committees, provincial-level Finance Departments shall assume the prime responsibility for, and coordinate with provincial-level Planning and Investment Departments, Tax Departments and specialized agencies in, assisting provincial-level People’s Committees in reviewing and adjusting the list of organizations and individuals required to make price declaration in their localities.

3. Entities required to declare prices of medical examination and treatment services for humans at private medical examination and treatment establishments; on-demand medical examination and treatment services at state medical examination and treatment establishments; and preventive and curative medicines for human use on the list of essential curative medicines and agencies receiving price declaration documents shall comply with the guidance of the Ministry of Health.

4. Lists of organizations and individuals required to make price declaration; email addresses, telephone numbers and fax numbers of agencies assigned to receive price declaration documents defined in Clauses 1 and 2 of this Article shall be posted on the websites of such agencies.

5. For goods and services subject to price declaration under specialized laws, such specialized laws shall apply.

Article 15.Methods of price declaration

1. An organization or individual shall make price declaration under Articles 15 and  16 of Decree No. 177/2013/ND-CP by making a price registration document (below referred to as document) and sending it to a state agency competent to receive documents (below referred to as document-receiving agency) by any of the following methods:

a/ Directly submitting 2 copies of the document at the office of the document-receiving agency (enclosed with a stamped envelope bearing the name and address of the organization or individual and full name and telephone number of the responsible person);

b/ Sending through the official correspondence channel 2 copies of the document (enclosed with a stamped envelope bearing the name and address of the organization or individual and full name and telephone number of the responsible person) to the document-receiving agency;

c/ E-mailing the document containing the organization’s or individual’s e-signature or a scanned copy of the document bearing the signature and seal to the address notified by the document-receiving agency or sending the document by fax and making a phone call to notify the document-receiving agency thereof. At the same time, sending through the official correspondence channel to the document-receiving agency 2 copies of the document (enclosed with a stamped envelope bearing the name and address of the organization or individual and full name and telephone number of the responsible person).

2. Price declaration documents shall be made according to the guidance in Appendix 4 to this Circular. In case organizations and individuals offer incentive policies, price reduction or discounts for certain groups of customers, they shall clearly state such groups of customers and the levels of inventive, price reduction or discounts in price declaration documents.

3. The method of declaring prices of medical examination and treatment services for humans at private medical examination and treatment establishments; on-demand medical examination and treatment services at state medical examination and treatment establishments; and preventive and curative medicines for human use on the list of essential curative medicines must comply with the Ministry of Health’s guidance.

4. An organization or individual producing or trading in liquefied petroleum gas (LPG) shall make price declaration as follows:

a/ In case of making price declaration because of change in LPG prices in the world market (contract prices), the organization or individual shall declare prices by making a document and send it to a document-receiving agency at least 1 day before the date of price determination and adjustment. The document-receiving agency shall examine the document and notify the organization or individual within 1 day after receiving the document. The organization or individual may purchase and sell goods and services at the declared price if past 1 day from the date of making price declaration according to regulations, it/he/she receives no written request for explanation of the document sent through the official correspondence channel or by fax or email from the document-receiving agency. Other matters must comply with regulations on price declaration in this Circular;

b/ In case of making price declaration because of change in other price-forming factors (except contract prices), the organization or individual shall declare prices according to general provisions in price declaration in this Circular.

Article 6.Process of receiving and examining price declaration documents

1. Process of receiving a document

a/ If the document is submitted directly:

- In case the document is complete and submitted with sufficient copies as prescribed, the officer who receives the document shall affix an incoming-mail stamp indicating the date of receipt on 2 copies of the document, return one copy to the submitter and forward the other to the document-receiving agency’s leader and professional sections or departments for examination right on the working day when he/she receives the document or early in the subsequent working day;

- In case the document is incomplete or submitted with insufficient copies as prescribed, the officer who receives the document shall write down the reason for return and contents to be supplemented and return the document immediately to the submitter.

b/ If the document is sent through the official correspondence channel or by fax or email:

- The officer who receives the document shall check the completeness and number of copies of the document upon receiving it. In case the document is complete and submitted with sufficient copies as prescribed, he/she shall affix an incoming-mail stamp indicating the date of receipt to 2 copies of the document and send back by post one copy to the organization or individual and forward the other to the document-receiving agency’s leader and professional sections or departments for examination right on the working day when he/she receives the document or early in the subsequent working day;

- In case the document is incomplete or submitted with insufficient copies as prescribed, within 2 working days after receiving the document, the document-receiving agency shall send a notice through the official correspondence channel or by fax or email, requesting the organization or individual to supplement the document or submit more copies. The date when the organization or individual completes the document or submits more copies shall be regarded as the date of receipt of the document, the officer who receives the document shall affix an incoming-mail stamp indicating the date of receipt to the document.

c/ Past 5 working days from the date of receiving the document prescribed at Point a or b of this Clause, if the document-receiving agency does not request in writing the organization or individual to explain the contents of the document, the organization or individual may sell or purchase goods or services at the declared prices.

2. Process of examining a document

a/ The document-receiving agency shall examine the document regarding the date of application of the declared prices, the specific price table, and explanations about the reasons for price adjustment.

b/ In case the reasons for price adjustment given by the organization or individual are unreasonable or not related to the increase or decrease of goods or service prices, within 4 working days after receiving the document, professional sections or departments shall report such to competent authorities for the latter to send through the official correspondence channel or by fax or email a notice requesting the organization or individual not to apply the declared prices. The organization or individual shall comply with the request or shall make re-declaration of prices according to regulations;

c/ In case some contents of the document are unclear or when there is an increase or a decrease in price-forming factors leading to the increase or decrease of declared prices which needs further explanation (except the cases prescribed at Point b of this Clause), within 4 working days after receiving the document, professional sections or departments shall report such to competent authorities for the latter to send through the official correspondence channel or via fax or email a notice requesting the organization or individual to explain unclear contents of the document and reasons for price adjustment, and informing the organization or individual of contents to be revised and the time limit for submitting the explanation document. The explanation document shall be submitted according to the document-receiving process prescribed in Clause 1 of this Article;

- The time between the date when the document-receiving agency issues a notice requesting explanation and the date when the document-receiving agency receives the explanation document from the organization or individual, counting based on the incoming-mail stamp affixed by the document-receiving agency or on the sending date indicated in the e-mail of the organization or individual, must not exceed 10 working days;

- The time limit for the document-receiving agency to examine the explanation document is 5 working day from the date of receipt thereof, counting based on the incoming-mail stamp affixed by the document-receiving agency;

- Past 5 working days from the date the document-receiving agency receives the explanation document, if such agency requests no re-explanation, the organization or individual may adjust prices from the time proposed in the explanation document (if any);

- In case the organization’s or individual’s explanation fails to comply with the document-receiving agency’s  requirements, the document-receiving agency shall, within 5 working days after receiving the explanation document, issue a written request for re-explanation. Re-explanation shall be given according to the process of first-time explanation prescribed in this Clause;

- After 3 (three) times of explanation, if the organization or individual still fails to comply with its requirements, the document-receiving agency shall request in writing the organization or individual to sell or purchase goods or services at the prices applied before making price declaration.

Article 17.Rights and responsibilities of organizations and individuals in price declaration

1. Document-receiving agencies:

a/ To use declared prices for the purpose of analyzing, summarizing and forecasting developments of market prices; to examine price-forming factors and publicize them in the mass media to serve the purpose of price valorization, and inspect and examine the performance of financial obligations prescribed by law when necessary;

b/ To comply with the processes of receiving and examining price declaration documents prescribed in Article 16 of this Circular;

c/ To keep confidential declared prices until such prices are applied.

2. Organizations and individuals required to make price declaration:

a/ To purchase and sell goods and services at the declared prices if, past 5 working days from the date of making price declaration according to regulations, they receive no document (sent through the official correspondence channel or by fax or email) from the form-receiving agency requesting them not to apply the declared prices as prescribed at Point b, Clause 2 of Article 6, or to explain contents of price declaration documents as prescribed at Point c, Clause 2, Article 16 of this Circular;

b/ To increase or decrease goods or service prices up to 3% compared to the most recently declared prices when there are any changes to price-forming factors, for the goods and services prescribed at Points d, dd, e, g, h, i and k, Clause 1, Article 3 of Decree No. 177/2013/ND-CP, during the time when the State does not require price registration for the purpose of price valorization, and the goods and services prescribed at Points d and m, Clause 1, Article 15 of Decree No. 177/2013/ND-CP; and at the same time, to notify in writing the new prices to the document-receiving agency before adjusting prices. In case of increasing or decreasing prices more than 3% compared to  the most recently declared prices, organizations or individuals shall declare prices according to regulations;

c/ To make price declaration in accordance with law and this Circular; to give explanations at the request (if any) of competent state agencies as prescribed in Clause 2, Article 16 of this Circular; to submit to the inspection of price-forming factors by competent state agencies (if any) and take responsibility before law for the accuracy of declared prices;

d/ Not to apply declared prices in the purchase and sale of goods and services for at least 5 working days from the date of making price declaration as prescribed or during the period of giving explanation at the request of document-receiving agencies;

dd/ To publicize information on declared prices; to notify in writing the document-receiving agency of any change in the time of application of the declared prices; to publicize and post up declared prices within their distribution systems (if any); to comply with declared prices; to abide by price valorization measures applied by competent state agencies in accordance with law;

e/ To comply with law-prescribed sanctions against price-related administrative violations of failing to make price declaration; making price declaration at variance with the form of price declaration issued by competent state agencies; arbitrarily apply the prices declared to competent state agencies while  still failing to explain such prices at the request of competent state agencies; arbitrarily applying the prices declared to competent state agencies though competent state agencies have requested suspension of the application and re-declaration registration of prices.

Chapter III

IMPLEMENTATION PROVISIONS

Article 18.Effect

This Circular takes effect on January 14, 2014. To annul the Ministry of Finance’s Circular No. 104/2008/TT-BTC of November 13, 2008, guiding the Government’s Decree No. 170/2003/ND-CP of December 25, 2003, detailing a number of articles of the Ordinance on Prices, and Decree No. 75/2008/ND-CP of June 9, 2008, amending and supplementing a number of articles of Decree No. 170/2003/ND-CP of December 25, 2003, detailing a number of articles of the Ordinance on Prices, and the Ministry of Finance’s Circular No. 122/2010/TT-BTC of August 12, 2010, amending and supplementing Circular No. 104/2008/TT-BTC of November 13, 2008.

Article 19.Organization of implementation

1. The Minister of Finance shall authorize the Director of the Department of Price Management under the Ministry of Finance to issue notices of the expenses prescribed at Point e, Clause 1, Article 8 of this Circular.

2. Provincial-level People’s Committees shall, based on the local practical situation and price management law, promulgate regulations on price management in their localities according to their competence.

3. Any problems arising in the course of implementation of this Circular should be promptly reported to the Ministry of Finance (the Department of Price Management) for consideration and settlement.-

For the Minister of Finance
Deputy Minister
TRAN VAN HIEU