Joint Circular No. 03/2007/TTLT-BTC-BTP dated January 10, 2007 of the Ministry of Finance and the Ministry of Justice on regime for collection, payment, management and use of fees for registration of, and provision of information on, security transactions

INTER-MINISTERIAL CIRCULAR

ON REGIME FOR COLLECTION, PAYMENT, MANAGEMENT AND USE OF FEES FOR REGISTRATION OF, AND PROVISION OF INFORMATION ON, SECURITY TRANSACTIONS

Pursuant to Decree 57-2002-ND-CP of the Government dated 3 June 2002 providing detailed regulations for implementation of the Ordinance on Fees and Charges, and pursuant to Decree 24-2006-ND-CP of the Government dated 6 March 2006 amending Decree 57-2002-ND-CP above;

Pursuant to Decree 08-2000-ND-CP of the Government dated 10 March 2000 on registration of security transactions;

Pursuant to Decree 16-2001-ND-CP of the Government dated 2 May 2001 on organization and operation of finance leasing companies as amended by Decree 65-2005-ND-CP of the Government dated 19 May 2005;

Pursuant to Decree 181-2004-ND-CP of the Government dated 29 October 2004 on Implementation of the Law on Land;

Pursuant to Decree 49-2006-ND-CP of the Government dated 18 May 2006 on registration, purchase and sale of ships;

In implementation of the opinion of the Prime Minister of the Government in Official Letter 7643-VPCP-V.III of the Government office dated 29 December 2006;

The Ministry of Finance and the Ministry of Justice jointly provide the following guidelines on the regime for collection, payment, management and use of fees for registration of, and provision of information on, security transactions:

I. GOVERNING SCOPE

1. Any organization or individual applying for registration of a security transaction, of a finance lease contract or of any other transaction or asset in accordance with law (hereinafter all referred to as registration of a security transaction) at a security transaction registration office shall be liable to pay fees for registration of the security transaction in accordance with the provisions in this Circular.

2. Any organization or individual applying to a security transaction registration office for provision of information about a security transaction and supplied with such information shall be liable to pay fees for provision of information in accordance with the provisions in this Circular.

3. Fees for registration of a security transaction shall not be collected in the following cases:

(a) Registration of a mortgage of land use right and property attached to land by a family household or individual with permanent residential registration within a locality and who [uses such land for] agricultural, forestry, aquaculture or salt mining production;

(b) An application for amendment of an error in a certificate of registration of a security transaction or in a certificate of registration of a finance lease contract when such error was the fault of the registrar;

(c) An application for cancellation of registration of a security transaction or finance lease contract;

(d)2 Registration of and provision of information about a security transaction relating to assets attached [or seized] to enforce a judgment, when the enforcement office provides a notice of such attachment [or seizure] of assets at the Transaction and Assets Registration Centre.

4. Security transaction registration offices shall collect registration fees and fees for provision of information on security transactions pursuant to the provisions in this Circular, such offices to comprise:

(a) Transaction and Assets Registration Centres of the National Registry for Registration of Security Transactions under the Ministry of Justice;

(b) Local Shipping Registration Offices;

(c) Land Use Right Registration Offices under the Department of Natural Resources and Environment; Land Use Right Registration Offices under the Office for Natural Resources and Environment of district people's committees; Offices for Natural Resources and Environment in the case of localities which have not established a Land Use Right Registration Office; and people's committees of wards which have been delegated authority by the Office for Natural Resources and Environment.

II. AMOUNT OF FEES FOR REGISTRATION OF, AND PROVISION OF INFORMATION ON, SECURITY TRANSACTIONS

1. Amount of Fees Payable for Registration of a Security Transaction:

(a) The amount of fees for registration of security transactions applicable at all offices stipulated in sub-clauses (a) and (b) of clause 4 of Section I shall be regulated as follows (each application file for registration of a security transaction shall be deemed to be one application for registration for which fees are payable):

(b) The people's council of a province or city under central authority shall make a decision on the specific amount of fees for registration of a security transaction at the security transaction registration offices stipulated in sub-clause (c) of clause 4 of Section I of this Circular, consistent with the actual situation of the locality, but the maximum amount of such fees shall not exceed the amounts stipulated in sub-clause (a) of this clause.

(c) The amount of fees for registration of a security transaction in a number of other circumstances shall be regulated as follows:

- The fees stipulated in Decision 69/2006/QD-BTC of the Minister of Finance dated 7 December 2006 shall apply in the case of an application for registration of a security transaction pursuant to the Law on Civil Aviation of Vietnam.

- The amount of fees for registration of a security transaction conducted electronically shall be stipulated in a separate legal instrument.

2. Amount of Fees Payable for Provision of Information on a Security Transaction:

(a) The amount of fees for provision of information on a security transaction applicable at all Transaction and Assets Registration Centres of the National Registry for Registration of Security Transactions under the Ministry of Justice shall be as follows (each instance of provision of information on the name of a securing party or on a security property shall be deemed to be one application):

(b) The amount of fees for provision of information on a security transaction applicable at local

Shipping Registration Offices shall be thirty thousand (30,000) VND per application.

(c) The people's council of a province or city under central authority shall make a decision on the specific amount of fees for provision of information at the security transaction registration offices stipulated in sub-clause (c) of clause 4 of Section I of this Circular, consistent with the actual situation of the locality, but the maximum amount of such fees shall not exceed the amounts stipulated in sub-clause (a) of this clause.

III. REGIME FOR COLLECTION, PAYMENT, MANAGEMENT AND USE OF FEES FOR REGISTRATION OF, AND PROVISION OF INFORMATION ON, SECURITY TRANSACTIONS

1. Any organization or individual applying for registration of a security transaction or applying for provision of information on a security transaction must pay the registration fees or fees for provision of information at the level stipulated in this Circular when lodging such application, except where the law stipulates some other time for payment of fees.

On collection of fees, the office collecting fees must issue a receipt to the applicant in accordance with current regulations of the Ministry of Finance on issuance, management and use of tax stationery.

2.3 Fees for registration of security transactions and fees for provision of information about security transactions stipulated in this Circular are items of revenue of the State Budget, and the office collecting such fees shall manage and use them in accordance with the following provisions:

(a) The security transaction registration offices stipulated in sub-clause (a) of clause 4 of Section I shall deduct eighty (80) per cent of the total fees collected prior to paying them into the State Budget to cover their working costs and services in accordance with regulations.

(b) The security transaction registration offices stipulated in sub-clause (b) of clause 4 of Section I shall deduct fifty (50) per cent of the total fees collected prior to paying them into the State Budget to cover their working costs and services in accordance with regulations.

(c) Offices collecting fees shall be responsible to declare, pay and conduct accounting finalization

of the remaining twenty (20) per cent in the case of offices stipulated in sub-clause (a), and fifty (50) per cent in the case of offices stipulated in sub-clause (b) of clause 4 of Section I, into the State Budget in accordance with the chapters of the State Budget stipulates in current regulations.

(d) With respect to the security transaction registration offices stipulated in sub-clause (c) of clause 4 of Section I, the people's council of a province or city under central authority shall make a decision on the percentage to be deducted by the office collecting the fees to cover working costs, consistent with the actual situation within such locality. If the fees actually collected for registration of and provision of information about security transactions are insufficient to cover working costs and services in accordance with regulations, or if the local State authority has not yet stipulated the amount of such fees, then the State budget shall ensure funding to the [local] security transaction registration office.

IV. IMPLEMENTING PROVISIONS

1. This Circular shall be of full force and effect after fifteen (15) days from the date of its proclamation in the Official Gazette.

2. This Circular shall replace Inter-Ministerial Circular 33/2002/TTLT-BTC-BTP of the Ministry of Finance and the Ministry of Justice dated 12 April 2004 providing guidelines on the regime for collection, payment, management and use of fees for registration of, and provision of information on, security transactions.

3. Any other matters relating to collection, payment, management, use and public proclamation of the regime on collection of fees for registration of, and provision of information on security transactions which are not mentioned in this Circular shall be implemented in accordance with Circular 63/2002/TT-BTC of the Ministry of Finance dated 24 July 2002 providing guidelines for implementation of the law on fees and charges and Circular 45/2006/TT-BTC of the Ministry of Finance dated 25 May 2006 amending Circular 63/2002/TT-BTC.

4. Any problems during implementation should be reported to the Ministry of Finance and to the Ministry of Justice for resolution.