Joint Circular No. 152/2014/TTLT-BTC-BGTVT dated October 15, 2014 of the Ministry of Finance, the Ministry of Transport guiding the application of by-automobile transportation fare/freight rates and road transportation support service charge rates

JOINT CIRCULAR

Guiding the application of by-automobile transportation fare/freight rates and road transportation support service charge rates[1]

Pursuant to November 13, 2008 Law No. 23/2008/QH12 on Road Traffic;

Pursuant to June 20, 2012 Law No. 11/2012/QH13 on Price;

Pursuant to the Government’s Decree No. 86/2014/ND-CP of September 10, 2014, on by-automobile transportation business and its conditions;

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 Price;

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;

Pursuant to the Government’s Decree No. 107/2012/ND-CP of December 20, 2012, defining the functions, tasks, powers and organizational structure of the Ministry of Transport;

The Minister of Finance and the Minister of Transport promulgates the Joint Circular guiding the application of by-automobile transportation fare/freight rates and road transportation support service charge rates.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

This Circular guides the declaration and display of by-automobile transportation fare/freight rates and road transportation support service charge rates.

Article 2.Subjects of application

1. State management agencies in charge of and organizations involved in the management of by-automobile transportation business and provision of road transportation support services.

2. Enterprises, cooperatives and business households engaged in by-automobile transportation business (below collectively referred to as transportation business units) or provision of road transportation support services (below collectively referred to as service providers) in the Vietnamese territory.

Chapter II

SPECIFIC PROVISIONS

Section 1

DECLARATION AND DISPLAY OF BY-AUTOMOBILE
TRANSPORTATION FARE/FREIGHT RATES

Article 3.Declaration of by-automobile transportation fare/freight rates

1. Declaration of by-automobile transportation fare/freight rates (including initial declaration and re-declaration) means making of written declarations of fare/freight rates and sending of notices of fare/freight rates by transportation business units to a competent state agency defined in Clause 4 of this Article upon determination or adjustment of such fare/freight rates.

2. The list of services subject to declaration of transportation fare/freight rates

a/ Business of by-automobile passenger transportation along fixed routes;

b/ Business of by-bus passenger transportation along fixed routes;

c/ Business of by-taxi passenger transportation;

d/ In addition to the list of services subject to declaration of fare/freight rates specified at Points a, b and c of this Clause, based on the practical situation of their localities, when necessary provincial-level Finance Departments shall assume the prime responsibility for, and coordinate with provincial-level Transport Departments in, proposing provincial-level People’s Committees to add transportation business services (transportation business under contract, by-automobile tourist transportation business, by-automobile cargo transportation business) to the list of services subject to declaration of fare/freight rates.

3. Entities subject to declaration of fare/freight rates

a/ Provincial-level Finance Departments shall assume the prime responsibility for, and coordinate with provincial-level Transport Departments in, advising provincial-level People’s Committees on announcing lists of units subject to declaration of fare/freight rates in their localities;

b/ 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 Transport Departments in, advising provincial-level People’s Committees on reviewing and adjusting lists of units subject to declaration of fare/freight rates. Such lists shall be posted on websites of provincial-level Finance Departments and Transport Departments;

c/ Units subject to declaration of fare/freight rates shall send written declarations of fare/freightrates to the agency responsible for receiving such declarations defined in Clause 4 of this Article.

4. Agencies receiving written declarations of fare/freight rates

a/ Provincial-level People’s Committees shall assign provincial-level Finance Departments, provincial-level Transport Departments or district-level People’s Committees to receive written declarations of fare/freight rates of units based in their localities or units having offices or independent-accounting branches based in their localities;

b/ A transportation business unit that has offices (or branch offices) based at the starting and ending points of the (provincial) transportation route and has declared fare/freight rates at either of such points under regulations, is no longer required to make declaration of fare/freight rates but shall send to the agency responsible for receiving fare/freight rate declarations at the other point one photocopy bearing the incoming-mail mark of the completed written declaration of fare/freight rates of the locality where the declaration has been made.

5. Time limit for fare/freight rate declaration

a/ Transportation business units shall declare fare/freight rates to competent agencies at least 5 (five) working days before applying such fare/freight rates;

b/ Initial declaration of fare/freight rates shall be made by units that commence their transportation business or declare their fare/freight rates for the first time under this Circular;

c/ Re-declaration of fare/freight rates shall be made by units that increase or reduce their fare/freight rates by more than 3% compared to previously declared fare/freight rates due to change of fare/freight constituents. In case of increasing or reducing fare/freight rates by no more than 3%, unit are not required to make re-declaration but shall, before applying them, notify in writing the increased or reduced fare/freight rates to the agency receiving written declarations of fare/freight rates.

Example: On June 1, 2013, enterprise A declares its fare/freight rate to the provincial-level Finance Department.

On January 1, 2014, it increases the fare/freight rate by 2% compared to that declared on June 1, 2013. It is not required to declare the new fare/freight rate to the Finance Department but shall, before application, notify it in writing to the Finance Department.

On August 1, 2014, it increases the fare/freight rate by 3.5% compared to that declared on June 1, 2013. This time, it shall declare the new fare/freight rate to the provincial-level Finance Department.

6. Contents of fare/freight rate declaration

a/ For by-automobile passenger transportation along fixed routes: Declaration of fare rates on fixed routes of passenger transportation (VND/passenger or VND/fare ticket); and freight rates for transportation of passenger luggage in excess of the prescribed limit (VND/kg);

b/ For by-bus passenger transportation along fixed routes: Declaration of fare rates (VND/passenger), and monthly fare rates applicable to different subjects (VND/fare ticket/month) on by-bus transportation routes;

c/ For by-taxi passenger transportation: Declaration made according to the form of fare calculation applied by transportation units. Specifically, the first-km fare rate, fare rate per distance or subsequent distance (km) traveled; fare rate per trip; and waiting-time fare rate;

d/ For other transportation services (if any) prescribed by provincial-level People’s Committees, including:

- Passenger transportation under contracts and by-automobile tourist transportation: Declaration made according to the form of fare calculation applied by transportation units. Specifically, fare rate per vehicle operation day (VND/day); fare rate per km traveled, waiting-time fare rate (if any) or another fare calculation unit suitable to the transportation mode.

- By-automobile cargo transportation: Declaration made according to the form of freight calculation applied by transportation units. Specifically, declaration of average freight rate (VND/ton.km), container transportation freight rate (VND/cont20’.km; VND/cont40’.km; VND/cont20’; VND/cont40’), freight rate for a number of main transportation routes according to type of cargo and distance (VND/ton), or another freight calculation unit suitable to the transportation mode.

7. Method of fare/freight rate declaration, process of receipt and examination of written declarations of fare/freight rates

a/ Method of fare/freight rate declaration

A transportation unit shall declare fare/freight rates by making a written declaration of fare/freight rates and send to the responsible agency 2 copies of the written declaration (enclosed with 1 envelope stuck with a postal stamp and inscribed with the name and address of the unit, full name and telephone number of the unit’s person in charge of declaration) by one of the following methods: sending directly or through the official mail channel or in the form of e-mail together with e-signatures or a scanned copy of the written declaration bearing a signature and a seal to the address notified by the declaration-receiving agency and making a telephone call to notify such to the declaration-receiving agency.

b/ Written declarations of fare/freight rates shall be made according to the form in Appendix 1 (including Appendices 1a and 1b) to this Circular. For units that have issued their fare/freight tariffs, they shall send such tariffs together with written declarations. In case units offer preferential fare/freight rates or fare/freight rate discounts to different customers, they shall specify names of customers and preferential fare/freight rates or discount levels in written declarations.

c/ Process of receipt and examination of written declarations of fare/freight rates

This process must comply with Article 16 of the Ministry of Finance’s Circular No. 56/2014/TT-BTC of April 28, 2014.

Article 4.Display of by-automobile transportation fare/freight rates

1. Display of by-automobile transportation fare/freight rates means public announcement of such fare/freight rates in Vietnam dong by transportation units in appropriate and explicit forms without causing confusion to customers, by printing, sticking or inscribing them on notice boards or otherwise displaying them at ticket counters or inside or outside automobiles conveniently for customers to see. In addition to the display of fare/freight rates, transportation units shall publicly announce fare/freight rates in other lawful forms.

2. All transportation business units shall display fare/freight rates under regulations. In case transportation business units sign contracts to entrust terminal service providers (or ticket sale agents) to sell tickets to their passengers, terminal service providers (or ticket sale agents) shall display ticket prices at terminals (or ticket sale agent offices) and ticket counters of transportation routes as entrusted to the terminals (or ticket sale agents).

3. Among the forms of fare/freight rate display prescribed in Clause 1 of this Article, units conducting the business of passenger transportation along fixed route, by-taxi passenger transportation or by-bus passenger transportation shall display fare/freight rates in the forms prescribed in Appendix 2 to this Circular, specifically as follows:

a/ For passenger transportation along fixed routes: Display at ticket counters, inside or outside automobiles at positions which can be easily seen by passengers;

b/ For by-taxi passenger transportation: Display on the outer side of taxi doors and inside the taxi at a position below the fare meter;

c/ For by-bus passenger transportation: Display on the outer left side of the bus at a position close to the front door and inside the bus at a position which can be easily seen by passengers.

4. Displayed fare/freight rates

a/ For fare/freight rates set by transportation business units: Units subject to fare/freight rate declaration shall display declared fare/freight rates. Units not subject to fare/freight rate declaration shall display fare/freight rates set by themselves on the principle that such rates can cover reasonable actual production and business costs and make profits suitable to market prices and national socio-economic development policies in each period;

b/ For by-automobile transportation fare/freight rates set by the State, transportation business units shall display only fare/freight rates decided by competent state agencies;

c/ Transportation business units may not collect fares and freights at rates higher than displayed ones.

Section II

ROAD TRANSPORTATION SUPPORT SERVICE CHARGE RATES

Article 5.List of road transportation support services

1. Road transportation support services include services at terminals, parking lots and rest stops, transportation agency, ticket sale agency, cargo collection service, transshipment service, warehouse service and road transportation salvage service.

2. Specific regulations on road transportation support services shall be issued by the Minister of Transport.

Article 6.Service charge rates at terminals

1. Services at terminals

a/ Service for vehicles entering and leaving terminals;

b/ Service of leasing overnight parking places for automobiles;

c/ Service of leasing business space in terminals;

d/ Other services.

2. Service for vehicles entering and leaving terminals

a/ Competence to set service charge rates for vehicles entering and leaving terminals

Provincial-level People’s Committees shall base themselves on types of terminals to set charge tariffs or specific charge rates for the service for vehicles entering and leaving terminals in their localities.

b/ The service charge rate calculation unit is VND/trip-vehicle or VND/month-vehicle or VND/vehicle. Service charge rates must depend on the designed seat number of vehicles, business forms (vehicles operating along fixed routes with transportation distance taken into account, buses, passenger transit vehicles, goods transportation vehicles, taxis entering and leaving terminals to embark and disembark passengers or to load and unload goods);

c/ Principles and bases for determination of service charge rates: Service charge rates shall be determined based on the common calculation method promulgated by the Ministry of Finance and provisions of the law on road transport;

d/ Order and procedures for making charge rate plans, appraising and promulgating service charge rates for vehicles entering and leaving terminals: Provincial-level Finance Departments shall appraise and submit to provincial-level People’s Committees for decision service charge rates for vehicles entering and leaving terminals based on charge rate plans made by enterprises and cooperatives commercially operating terminals according to Appendices 3a and 3b to this Circular. The time limits for appraising, deciding and adjusting charge rates are prescribed in Articles 9 and 10 of the Government’s Decree No. 177/2013/ND-CP of November 14, 2013, detailing and guiding a number of articles of the Price Law and relevant legal documents.

3. Service of leasing overnight parking places for automobiles: In case overnight parking places for automobiles are built by organizations or individuals or built and transferred by the State to organizations or individuals for operation on the principle of cost-accounting for recovery of investment capital, this service must comply with the price law.

Article 7.Road transportation support service charge rates

Charge rates of road transportation support services (except the service for vehicles entering and leaving terminals specified at Point a, Clause 1 and Clause 2, Article 6 of this Circular and services regulated by the Ordinance on Charges and Fees) must comply with the following provisions:

1. Service providers shall set service charge rates on the principle of covering reasonable actual production and business costs and making profits suitable to local market charge rates and national socio-economic development policies in each period, and display service charge rates under Article 8 of this Circular.

2. Based on their local practical conditions and in case of necessity, provincial-level Finance Departments shall work with provincial-level Transport Departments before proposing provincial-level People’s Committees to add transportation support services to the list of services subject to charge rate declaration in their localities. The declaration of service charge rates must comply with Clauses 3, 4, 5 and 7, Article 3 of this Circular.

3. For ticket sale agency service: When acting as ticket sale agents for transportation business units, enterprises and cooperatives commercially operating terminals are entitled to ticket sale commissions for sold tickets in accordance with law.

Article 8.Display of road transportation support service charge rates

1. Subject to display of road transportation support service charge rates are all service providersthat are required to display charge rates of road transportation support services they provide.

2. Form of service charge rate display: Service providers shall publicly announce road transportation support service charge rates in Vietnam dong in appropriate and explicit forms without causing confusion to customers, by printing, sticking or inscribing them on notice boards or paper sheets or otherwise displaying them at ticket counters or transaction places conveniently for customers to see. In addition to the display of service charge rates, they shall publicly announce service charge rates in other lawful forms.

Chapter III

ORGANIZATION OF IMPLEMENTATION AND IMPLEMENTATION PROVISIONS

Article 9.Responsibilities of agencies and organizations

1. Provincial-level Finance Departments, Transport Departments and district-level People’s Committees shall:

a/ Apply and manage by-automobile transportation fare/freight rates and road transportation support service charge rates as assigned by provincial-level People’s Committees;

b/ Guide and inspect the application of by-automobile transportation fare/freight rates and road transportation support service charge rates under this Circular and other relevant regulations;

c/ In January every year or when unexpected changes in transportation fare/freight rates and road transportation support service charge rates occur in their localities or when requested by competent state agencies, provincial-level Finance Departments shall summarize fare/freight and service charge rates declared by units under their management and report them to provincial-level People’s Committees, the Ministry of Finance and the Ministry of Transport.

2. Transport business units and road transportation support service providers shall:

a/ Comply with this Circular’s provisions on by-automobile transportation fare/freight rates and road transportation support service charge rates, regulations on price management and other relevant regulations;

b/ Declare and display transportation fare/freight and service charge rates under this Circular. Explain or re-declare fare/freight and service charge rates at the request of agencies responsible for receiving written declarations of such rates;

c/ Provide transportation and transportation support services at declared fare/freight and service charge rates in accordance with law, publicly announce such rates and take responsibility before law for the accuracy and appropriateness of declared rates;

d/ Provide adequate documents and information related to declared, displayed and applied fare/freight and service charge rates to competent agencies when so requested.

Article 10.Inspection of the declaration and display of transportation fare/freight rates and road transportation support service charge rates

1. The inspection of the observance of regulations on declaration and display of transportation fare/freight rates and road transportation support service charge rates must comply with this Circular and relevant regulations.

2. Business units that fail to declare and display fare/freight rates and service charge rates or violate regulations on making of plans on, declaration and display of such rates, collect fares or freights in contravention of regulations shall, depending on the nature and severity of their violations, be administratively sanctioned or examined for penal liability or pay compensations for damage, if any, in accordance with law.

3. The competence, order and procedures for sanctioning violations must comply with the law on handling of administrative violations.

Article 11.Implementation provisions

1. This Circular takes effect on December 1, 2014, and replaces Joint Circular No. 129/2010/TTLT-BTC-BGTVT of August 27, 2010, of the Ministry of Finance and the Ministry of Transport, guiding the application of road transportation fare/freight rates and support service charge rates.

2. The Director of the Price Management Department (the Ministry of Finance), General Director of the Directorate for Roads of Vietnam, and Director of the Transportation Department (the Ministry of Transport) shall, within the ambit of their functions, tasks and powers, direct, guide and coordinate with one another in, implementing this Circular and relevant regulations.

3. Chairpersons of provincial-level People’s Committees shall base themselves on the law on price management and their practical local conditions to direct and guide the implementation of this Circular and relevant regulations.

Any problems arising in the course of implementation should be reported to the Ministry of Finance and Ministry of Transport for study and settlement.-

* All appendices to this Circular are not translated.