Decision No. 426/QD-BTC of February 25, 2010, on charges, charges frames for certain aeronautical services at airports and aerodromes of Viet Nam

DECISION

ON CHARGES, CHARGES FRAMES FOR CERTAIN AERONAUTICAL SERVICES AT AIRPORTS AND AERODROMES OF VIET NAM

THE MINISTER OF FINANCE

- Pursuant to the Law on Civil Aviation of Viet Nam No. 66/2006/QH11 dated 29 June 2006;
- Pursuant to the Decree No. 170/2003/NDD-CP dated 25 December 2003 of the Government guiding on detailed implementation of the Price Ordinance; Decree No. 75/2008/ND-CP dated 09 June 2008 of the Government on the amendment and supplementation of the Decree No. 170/2003/ND-CP dated 25
December 2003 of the Government guiding on detailed implementation of the Price Ordinance;
- Pursuant to the Decree No. 118/2008/NDD-CP dated 27 November of the Government on the functions, duties and organization structure of the Ministry of Finance;
- Pursuant to the Joint Circular No. 103/2008/TTLT-BTC-BGTVT dated 12 November 2008 of the Ministry of Finance and Ministry of Transport guiding on the management of domestic air tariff and aeronautical services charges at airports and aerodromes of Viet Nam;
- Pursuant to the assessment of charges plan for aeronautical services, and in considering the request of the Ministry of Transport at the Letter No.269/BGTVT-VT on 15 January 2010 and Letter No. 644/BGTVT-VT on 29 January 2010;
- At the request of the Director General of the Price Administration Department.

DECIDES:

Article 1:To promulgate enclosed with this Decision the price list and frames of charges for certain aeronautical services at airports and aerodromes of Viet Nam as follows:

1/ Air navigation services charges for arrival/departure flights;

2/ Landing charges;

3/ Charges for security screening service;

4/ Passenger Service Charges (PSC);

5/ Prices for air navigation aid services;

6/ Charges frame for aircraft parking services;

7/ Charges frame for aerobridge rental services;

8/ Charges frame for check-in counter facilities rental;

9/ Charges frame for baggage conveyer rental;

10/ Charges frame for automatic baggage handling and sorting system rental;

11/ Charges frame for airport terminal space rental;

12/ Charges frame for package ground handling services at airports of Group B;

13/ Charges frame for refueling services for domestic flights.

Article 2:Price list and frames of charges stipulated in this Decision are not included the Value Added Tax (VAT).

Article 3:This Decision shall take effect on 1st April 2010. This Decision shall supersede the Decision No. 13/2006/QD-BTC dated 13 March 2006 of the Ministry of Finance on the charges of some specialized aeronautical services and other relevant provisions that are non compliance with this Decision.

Article 4:The Director General of Civil Aviation Administration of Viet Nam, the Director General of Price Administration Department, Head of agencies, enterprises using such services at Vietnamese airports are responsible to deploy this Decision.

PRICE LIST, CHARGES FRAMES FOR CERTAIN AERONAUTICAL SERVICES AT AIRPORTS AND AERODROMES OF VIET NAM
(Promulgated by the Decision No. 426/QD-BTC dated 25 February 2010 of the Ministry of Finance)

Chapter I.

GENERAL PROVISIONS

Article 1. Unit for calculating service charges

1. Maximum take-off weight (MTOW): maximum take-off weight specified in the operation manual of each aircraft type;

2. Unit of cargo’s mass (including packing):

a) The minimum weight for cargo security screening service at airports and aerodromes: Ton

b) In a single bill of landing (under 01 ton): are calculated by actual weight of the package

3. Standard aircraft seating configuration: the number of seats installed in the aircraft cabin to the standard set by the manufacturer.

Article 2. Grouping of airports

1. The airports of Viet Nam are classified into 2 groups:

a) Group A: International airports of Noi Bai, Da Nang, Tan Son Nhat, Phu Bai, Cam Ranh, Cat Bi.

b) Group B: airports other than those specified in Group A.

2. Based on the actual situation, the Civil Aviation Administration of Viet Nam shall report to the Ministry of Transport to revise the group of airports to compatible standards of services provision, landing/take-off capacity, and passenger passing through capacity at each airport.

Article 3. Provisions of charges collection

1. Currency unit for payments:

a) Charges of services in international flights: US Dollar (USD). The payment of service charges is made in accordance with the applicable regulations on foreign exchange rate management of Viet Nam;

b) Charges of services in domestic flights: Vietnamese Dong (VND).

2. Organizations and individuals, whose aircrafts operate to/from at airports and aerodromes of Viet Nam, are responsible to make their payment for the relevant services providers before the departure of such aircrafts or make their payment in accordance with their contracts with relevant providers.

Article 4. Exemption of charges

1. Flights which are specified by the state management agency in civil aviation of Viet Nam (the Civil Aviation Administration of Viet Nam) in the flight permissions, official letters or telex messages of deployment, including:

a) VVIP flights (excluding flights operated by aircraft with a compartment reserved for or hired for VVIP purpose);

b) State’s flights;

c) Flights performing search and rescue missions, transporting humanitarian aids, natural disaster relief and performing other humanitarian missions.

2. Flight having to return to land at the airport of departure within 30 minutes after take-off due to any reasons.

3. Diplomatic goods, humanitarian aids;

4. Goods and spare parts transferred for repair purposes and aircraft stores (excluding duty-free goods sale on flight);

5. Passengers in Vietnamese VVIP delegations or foreign government or diplomatic delegations on an official visit or participating in a conference at the invitation of the Heads of Vietnamese Party, State and Government;

6. Transit/ transfer passengers staying within 24 hours at the airport terminal: apply only in case of arrival/ departure sectors are showed in the same Passenger Ticket and baggage check;

7. Flight crew members (including those who are on cabin positioning);

8. Infants up to 2 years old: at the time of check-in for the first sector if interline;

9. Other cases shall be summarized and submitted for approval by the Civil Aviation Administration of Viet Nam to the Ministry of Transport.

Article 5. Subjects to discount

To encourage air carriers operate to/ from Viet Nam, and according to the actual situation at airports, the Civil Aviation Administration of Viet Nam shall report to the Ministry of Transport the charges discount policy based on equitable, non-discriminatory and fair competition basis, in accordance with service quality, as follows:

1. The charge favorable policy shall be applied in the period of no more than 36 months, with the amount of discount no more than 50% of the basic charges to the followings:

a) The first air carrier operates a total new route to/ from Viet Nam;

b) The air carrier begins to operate on the sectors which are currently operated;

c) The air carrier operates to/ from Viet Nam at the low hour. Based on the actual situation at each airport and aerodrome, the Civil Aviation Administration of Viet Nam publicize the peak and low hours and submit the favorable policy to the Ministry of Transport, which is applied to the air carriers.

2. The discount policy shall be applied to the air carrier that has the total payment on the monthly invoice as follows:

a) For the aeronautical services that the Government stipulates the charges and charges frame applied to the international flights:

- From 50.000 USD to less than 100.000 USD: discount 3%

- From 100.000 USD to less than 300.000 USD: discount 5%

- From 300.000 USD to less than 500.000 USD: discount 7%

- Over 500.000 USD: discount 10%

b) For the aeronautical services that the Government stipulates the charges and charges frame applied to the domestic flights:

- From 2 billion VND to less than 4 billion VND: discount 3%

- From 4 billion VND to less than 6 billion VND: discount 5%

- From 6 billion VND to less than 10 billion VND: discount 3%

- Over 10 billion VND: discount 10%

c) The method of determination of the total payment on the monthly invoice shall be as follows:

Total payment on the monthly invoice shall be the amount which the air carrier have to pay to the Airport Corporation, based on the charges stipulated by the Government in Section I, Chapter II (excluding the charges for air navigation aids services and PSC) and the charges prescribed by the Airport Corporation, within the frame of charges stipulated by the Government in Section II, Chapter II (excluding charges for refueling services for domestic flights), applied to the services which the Airport Corporations or its enterprises provide for air carriers (domestic and international) in the period of 01 month (solar month).

3. In case of market slump, or to encourage foreign air carrier in the operation to/ from Viet Nam (excluding Noi Bai and Tan Son Nhat International Airport), the Civil Aviation Administration of Viet Nam shall submit for approval the charges discount policy at airports and aerodromes of Viet Nam to the Ministry of Transport, in order to assist the air carriers in maintain and promote services to/from Viet Nam.

4. In special cases, the Civil Aviation Administration of Viet Nam shall submit the detailed provisions on the charges discount and its application time frame for the approval by the Ministry of Transport, after consultations with the Ministry of Finance.

Article 6. Definitions

1. Flight: actions of an aircraft taking-off from an airport and then landing at another airport thereafter;

2. International flight: a flight having a take-off or landing point located outside the territory of Viet Nam;

3. Domestic flight: a flight having take-off and landing points located within the territory of Viet Nam;

4. Cargo (including container) with bill of lading: cargo that has the place of shipment (origin) is Viet Nam;

5. Carrier: legal entity, organization, individual who uses their owned aircraft or leased aircraft owned by the others to carry cargo and passengers and general aviation.

6. VVIP flight: a flight is used, separately or in combination (with commercial purpose)    and was verified or noticed by appropriated state authorities in accordance with the provisions prescribed in the Decree No.03/2009/ND-CP dated 9th January 2009 of the Government on the VVIP flight assurance.

7. Special flight of the State’s aircraft: flight is carried out by the aircraft of the armed forces, customs and other State agencies on the state services.

8. The charges and charges frames stipulated in this Decision are not included the Value Added Tax (VAT).

Chapter II.

CONCRETE PROVISIONS

SECTION 1. AERONAUTICAL SERVICES CHARGES STIPULATED BY THE GOVERNMENT

Article 7. Air navigation services charges for arrival/departure flights

1. Applicable scope: air carriers who have aircraft operating flights at the airports of Viet Nam.

2. Service charges:

a) For international flights: charges are applied for each arrival or departure of the aircraft at Vietnam’s airports as follows:

Payment unit: USD/per arrival or departure

b) For domestic flights: charges are applied for both arrival and departure of the aircraft at Vietnam’s airports as follows:

Payment unit: VND per domestic flight

3. Charges applicable in some special cases:

a) 50% of the charges specified at the paragraph 2 (calculated on the flight route between the airport of departure and the airport of arrival) in accordance with the relevant MTOW shall be applicable to:

- Helicopters, aircraft other than aeroplanes (conducting visual operations);

- Aircraft deviating to an airport of Viet Nam other than its planned airport of destination in cases of force majeure (technical, weather reasons);

- Aircraft performing technical test flights, ferry flights, geological survey, aerial photograph and training flights (non-commercial flights) to the airports of Viet Nam. In case of take-off and landing at the same airport, the air navigation services charges will be calculated based on the actual kilometers controlled.

b) A charge of 30% of the charges specified at the paragraph 2 shall be applicable to aircraft returning to the airport of departure after more than 30 minutes not due to faulty reasons made by the relevant Airport or Air Traffic Control Units.

In case a faulty reason has been made by the relevant Airport or Air Traffic Control Units, the regional Airport Corporation or the Viet Nam Air Navigation Services Corporation shall negotiate with all involved parties to compensate actual expenses for the damage caused by returning to the airport of departure.

Article 8. Landing charges

1. Applicable scope: air carriers whose aircraft landing at the airports of Viet Nam.

2. Service charges:

a) For international flights at the Airports of Group A:

b) For domestic flights at the Airports of Group A:

c) For flight landing at the Airports of Group B: An applicable charge of

60% of the charges specified for domestic and international flight in accordance with the relevant MTOW for flight landing at the Airport of Group A.

3. Charges applicable in some special cases

a) 50% of the charges specified at the paragraph 2 in accordance with the relevant MTOW shall be applicable to:

- Helicopters, aircraft other than aeroplanes (conducting visual operations);

- Aircraft deviating to an airport of Viet Nam other than its planned airport of destination in cases of force majeure (technical, weather reasons);

- Aircraft performing technical landing (refueling), do not embarking passengers from the airport of landing;

- Aircraft performing test flights, ferry flights and training flights (non- commercial flights).

b) A charge of 30% of the charges specified at the paragraph 2 shall be applicable to aircraft returning to the airport of departure after more than 30 minutes not due to faulty reasons made by the relevant Airport or Air Traffic Control Units.

In case a faulty reason has been made by the relevant Airport or Air Traffic Control Units, the regional Airport Corporation or the Viet Nam Air Navigation Services Corporation shall negotiate with all involved parties to compensate actual expenses for the damage caused by the returning to the airport of departure.

Article 9. Charges for security screening services

1. Applicable scope: air carriers using security screening services for passenger, baggage, cargo with specialized equipments at the airports of Viet Nam.

2. Service charges:

a) For international flights at the Airports of Group A:

- Passenger, baggage screening:

Payment unit: USD per flight

- Cargo screening with bill of lading: 15USD/ton.

b) For domestic flights at the Airports of Group A:

- Passenger, baggage screening:

Payment unit: VND per flight

- Cargo screening with bill of lading: 140 000 VND/ton

c) For domestic flight at the Airports of Group B: An applicable charge of 60% of the charges specified for domestic and international flight in accordance with the relevant MTOW for flights landing at the Airport of Group A.

Article 10. Passenger Service Charges (PSC)

1. Applicable scope: Passengers check-in at the terminals in the airports of Viet Nam

2. Service charges:

a) For international flights:

Payment unit: USD per passenger

b) For domestic flights:

Payment unit: VND per passenger

3. PSC applicable for special cases: Children from age of 2 to 12 year old (at the time of check-in for the first sector if interline) shall be levied 50% of the PSC specified at the paragraph 2.

4. PSC Payment Terms:

a) PSC is collected by the air carriers operating to/ from airports of Viet Nam. Passengers shall make their payment of the PSC with the air fare.

b) Air carriers shall pay back the collected PSC on monthly basis to airport operators (transfer fees will be born by airlines).

c) The basic of payment is the “Request of Payment” issued by the airport operator based on “Passenger Manifest” of each flight. The amount of payment is calculated as follows:

- PSC collected from adult passengers is calculated as follows:

- PSC collected from children passengers are calculated as follow:

d) Commission: The commission is 1.5% (including VAT) of the total of PSC payment that airlines transferred each month and is calculated as follow:

đ) Amount of excessive (-) or lack (+) of payment which was verified:

Upon the detection of any mistake or incorrectness in the “Request of Payment”, air carriers have the right to request the collation or verification of such mistake or incorrectness. Such collation or verification and the pay back of differential amount of money (if any) shall be undertaken in the next PSC payment time after the timing of claim.

e) Documents to prove a passenger is exempted or discount of PSC: Passenger Manifest and specified by the electronic form.

g) The payment between airport operators and air carriers shall be conducted according to their mutual signed contract which details the timing and method of payment, procedures and time of the penalty for late payment. The penalty for late payment is 0.5% of total late payment amount per week.

h) For non-scheduled flight: commission shall not be paid.

Article 11. Prices for air navigation aids services

1. Applicable scope: the Viet Nam Air Navigation Services Corporation

2. Service charges:

- Northern Airports Corporation: 60 000VND/ over-flight other than exemption subjects.

- Middle Airports Corporation: 430 000VND/ over-flight other than exemption subjects.

- Southern Airports Corporation: 60 000VND/ over-flight other than exemption subjects.

SECTION 2. AERONAUTICAL SERVICES CHARGES FRAMES STIPULATED BY THE GOVERNMENT

Article 12. General provisions

Pursuant to the regulations on the aeronautical charges management and charges frames prescribed below, services provider at the airport shall establish the detailed price list of charges in accordance with their services quality, condition of application and market situation; and shall have report and publicize of such price list in accordance with charges regulations.

Article 13. Parking Charges

1. Applicable scope: air carriers who use this service at the airports of Viet Nam.

2. Service charges frame per flight:

a) For international flights at the Airport of Group A.

Payment unit: USD/ MTOW ton

b) For domestic flights at the Airports of Group A:

Payment unit: VND/ MTOW ton

c) For flight at the Airports of Group B: An applicable charge of 70% of the charges specified for flights at the Airport of Group A.

3. Parking charge frames applied to air carrier who chooses airports of Viet Nam as their home base airport.

a) Charges frame at the Airport of Group A:

Payment unit: VND/ aircraft/ month

b) Charges frame at the Airports of Group B: An applicable charge of 70% of the charges specified for flights at the Airport of Group A.

c) Air carrier’s home base airports are specified by the Civil Aviation Administration of Viet Nam.

4. Parking time shall be a period of time between chock-on and chock-off. Parking time from above 18 hours up to 24 hours shall be calculated as a full day; in case the aircraft are parked more than 24 hours but take off within the following 24 hours, a full parking day will be added. This method of calculating parking time shall be applied to the period of 24 hours thereafter.

Article 14. Charges frame for aerobridge rental services

1. Applicable scope: air carriers who use this service at the airports of Viet Nam.

2. Service charges frame:

a) For international flights:

Payment unit: USD/flight

b) For domestic flights:

Payment unit: VND/flight

c) For domestic and international combination flight: An applicable charge of 65% of the charges specified for international flight.

Article 15. Charges frame for check-in counter rental

1. Applicable scope: air carriers who use this service at the airports of Viet Nam.

2. Check-in counter rental charges frame shall be calculated in two basics: monthly or flight-by-flight, subjected to the users’ choice.

a) For international flights at the Airport of Group A:

b) For domestic flights at the Airport of Group A:

c) For domestic flight at the Airports of Group B: An applicable charge of 70% of the charges specified at the Airport of Group A.

3. Charges frame for other passengers counter rental, including: Boarding counter, Service Desk, Transit counter: An applicable charge of 20% of the charges specified for Check-in counter rental at the Airports of Group A.

4. Facilities:

a) Adequate floor space for the counter;

b) The counter itself;

c) Computer and relevant facilities (specialized software not included);

d) Display of counter;

e) Conveyer attached to the counter;

f) Electricity and water supply;

g) Associated administrative and maintenance costs.

5. Using time and the number of counters for each flight depend on the agreement between airports and users, based on the actual practice, capacity of airports, and air carrier’s procedures for the check-in.

Article 16. Charges frame for baggage conveyer rental

1. Applicable scope: air carriers who use the service of arrival baggage conveyer at the airports of Group A which have not equipped with the automatic baggage handling system.

2. Service charges frame:

a) For international flights:

Payment unit: USD/each time

b) For domestic flights:

Payment unit: VND/each time

Article 17. Charges frame for automatic baggage handling system (automatic departure baggage sorting system)

1. Applicable scope: air carriers who use the automatic departure baggage sorting system at the airports of Viet Nam.

2. Service charges frame:

a) For international flights at the Airport of Group A:

Payment unit: USD/flight

b) For domestic flights at the Airport of Group A:

Payment unit: VND/flight

c) For domestic flight at the Airports of Group B: An applicable charge of 70% of the charges specified for flights at the Airport of Group A.

Article 18. Charges frame for airlines representative office rental space at the airport terminal

1. Applicable scope: air carriers who use this service at the airports of Viet Nam.

2. Service charges frame:

a) At the Airport of Group A:

b) At the Airports of Group B: An applicable charge of 50% of the charges specified at the Airport of Group A.

3. Applicable terms: the charges are for rent of space, a non-equipped office and a car parking slot at airport parking area.

Article 19. Charges frame for package ground handling services at Airports of Group B

1. Applicable scope: Vietnamese air carriers who use this service at the airports of Viet Nam.

2. Service charges frame:

3. Applicable terms:

These charges include:

a) Landing/ take-off services; follow-me services (if any);

b) Ground handling services for the minimum demand of flight and based on the actual capacity of each airport;

c) Charges for using of terminal facilities in direct connection with the serving of flight and charges for air carrier’s representative office rental (excluding car parking area);

d) General security control, baggage and passenger screening services;

e) Apron parking (free of charge during first three hours parking).

Article 20. Charges frame for refueling services for domestic flights

1. Applicable scope: air carriers who use this service at the airports of Viet Nam.

2. Service charges frame:

a) Maximum: 750.000 VND/ton

b) Minimum: An applicable charge of 50% of the maximum charge.