Circular 13/2024/TT-BGTVT management of domestic air transport freight and aviation service prices

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Circular No. 13/2024/TT-BGTVT dated May 15, 2024 of the Ministry of Transport prescribing mechanisms and policies for management of domestic air transport freight and aviation service prices
Issuing body: Ministry of TransportEffective date:
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Official number:13/2024/TT-BGTVTSigner:Le Anh Tuan
Type:CircularExpiry date:Updating
Issuing date:15/05/2024Effect status:
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Fields:Policy , Tax - Fee - Charge , Transport

SUMMARY

Discount policy applicable to domestic air transport freights from July 2024

On May 15, 2024, the Ministry of Transport issues Circular No. 13/2024/TT-BGTVT prescribing mechanisms and policies for management of domestic air transport freight and aviation service prices. Bellows are highlight provisions of the Circular:

1. For carriers with the total amount paid for the use of services listed on the monthly invoice for aircraft takeoff and landing services, and flight operation services for departure and arrival, the following preferential rates are applied:

- For services provided for international flights:

+ Above 125,000 USD to below 250,000 USD: Discount 1.5%;

+ From 250,000 USD to below 750,000 USD: Discount 2.5%;

+ From 750,000 USD to below 1,500,000 USD: Discount 3.5%;

+ From 1,500,000 USD and above: Discount 5%.

- For services provided for domestic flights:

+ Above 5 billion VND to below 10 billion VND: Discount 1.5%

+ From 10 billion VND to below 15 billion VND: Discount 2.5%

+ From 15 billion VND to below 30 billion VND: Discount 3.5%

+ From 30 billion VND and above: Discount 5%.

2. For pilot training and education flights (without commercial exploitation) in Vietnam: No charges for the use of air traffic control services for departures, arrivals, and aircraft takeoffs and landings for the first 36 months from the date the training institution conducts its first training and education flight (without commercial exploitation).

3. For airlines operating regular international flights to and from Vietnam when there are no other airlines operating regularly for at least 12 months:

- At Noi Bai, Tan Son Nhat, and Da Nang international airports: Apply a charge rate equal to 90% of the price set by the Ministry of Transport for aircraft takeoff, landing, and air traffic control services; this rate is applicable for 12 months from the start of operations;

- At other airports: Apply a charge rate equal to 50% of the price set by the Ministry of Transport for aircraft takeoff, landing, and air traffic control services; this rate is applicable for 24 months from the start of operations.

This Circular takes effect from July 1, 2024.

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Effect status: Known

THE MINISTRY OF TRANSPORT

______________

No. 13/2024/TT-BGTVT

THE SOCIALIST REPUBLIC OF VIETNAM

Independence - Freedom - Happiness

____________________________

Hanoi, May 15, 2024

CIRCULAR

Prescribing mechanisms and policies for management of domestic air transport freight and aviation service prices

______________________

Pursuant to the June 29, 2006 Vietnam Civil Aviation Law and the November 21, 2014 Law Amending and Supplementing a Number of Articles of the Vietnam Civil Aviation Law;

Pursuant to the June 19, 2023 Law on Price;

Pursuant to the Government’s Decree No. 56/2022/ND-CP dated August 24, 2022, defining the functions, tasks, powers and organizational structure of the Ministry of Transport;

At the proposal of the Director of the Transportation Department and the General Director of the Civil Aviation Authority of Vietnam;  

The Minister of Transport promulgates the Circular prescribing the mechanism and policies for management of domestic air transport freight and aviation service prices.

 

Article 1. Scope of regulation and subjects of application

1. This Circular prescribes mechanisms and policies for management of domestic air transport freight and aviation service prices.

2. This Circular applies to organizations and individuals conducting business, using, and managing the prices for domestic air transport freight and specialized aviation services.

Article 2. Principles and basis for pricing services

The prices of domestic air transport freights and specialized aviation services are determined based on the principles and criteria stipulated in Article 22 of the Law on Price.

Article 3. Regulations on service payment currency

1. For domestic air transport freights:

   The prices for domestic air transport freights sold within the territory of Vietnam are set in Vietnamese Dong (VND). The listing and payment for the use of services are carried out in Vietnamese Dong (VND).

2. For aviation services:

   a) The prices for services provided for domestic flights are set in Vietnamese Dong (VND). The listing and payment for the use of services are carried out in Vietnamese Dong (VND);

   b) The prices for services provided for international flights are set in US Dollars (USD). The listing and payment for the use of services are carried out in accordance with the regulations of the foreign exchange law.

3. For non-aviation services:

   a) At domestic terminals and areas outside the isolation zones of international terminals: the prices for services are set in Vietnamese Dong (VND). The listing and payment for the use of services are carried out in Vietnamese Dong (VND);

   b) In the isolation zones of international terminals: the prices for services are set in US Dollars (USD). The listing and payment for the use of services are carried out in accordance with the regulations of the foreign exchange law.

Article 4. Preferential policies

1. For carriers with the total amount paid for the use of services listed on the monthly invoice for aircraft takeoff and landing services, and flight operation services for departure and arrival, the following preferential rates are applied:

a) For services provided for international flights:

Service prices listed on the payment invoice (USD)

Discount rate (%)

Above 125,000 USD to below 250,000 USD

1.5%

From 250,000 USD to below 750,000 USD

2.5%

From 750,000 USD to below 1,500,000 USD

3.5%

From 1,500,000 USD and above

5%

 

b) For services provided for domestic flights:

Service prices listed on the payment invoice (VND)

Discount rate (%)

Above 5 billion VND to below 10 billion VND

1.5%

From 10 billion VND to below 15 billion VND

2.5%

From 15 billion VND to below 30 billion VND

3.5%

From 30 billion VND and above

5%

 

c) The charge rate of using service is calculated based on separate invoices for international flights and domestic flights. The billing period: 01 month.

2. For pilot training and education flights (without commercial exploitation) in Vietnam: No charges for the use of air traffic control services for departures, arrivals, and aircraft takeoffs and landings for the first 36 months from the date the training institution conducts its first training and education flight (without commercial exploitation).

3. For Vietnamese airlines participating in the air transportation market for the first time: Apply a charge rate equal to 50% of the price set by the Ministry of Transport for aircraft takeoff, landing, and air traffic control services; this rate is applicable for 36 months from the start of operations.

4. For airlines operating regular international flights to and from Vietnam when there are no other airlines operating regularly for at least 12 months:

a) At Noi Bai, Tan Son Nhat, and Da Nang international airports: Apply a charge rate equal to 90% of the price set by the Ministry of Transport for aircraft takeoff, landing, and air traffic control services; this rate is applicable for 12 months from the start of operations;

b) At other airports: Apply a charge rate equal to 50% of the price set by the Ministry of Transport for aircraft takeoff, landing, and air traffic control services; this rate is applicable for 24 months from the start of operations.

5. If an airline is eligible for multiple incentives under Clauses 3 and 4 of this Article, the highest incentive will apply.

6. Service business organizations and individuals shall proactively apply the incentive rates as specified in this Article.

Article 5. Price determination

1. The Civil Aviation Authority of Vietnam shall evaluate plans on prices and report to the Ministry of Transport to issue pricing documents for the following services:

a) Aviation services are specifically priced: Aircraft takeoff and landing services; Air traffic control services for departures and arrivals; Passenger services at airports; Aviation security services; Air traffic control services over the flight information regions managed by Vietnam.

b) Aviation services with price frameworks: Aircraft parking rental services; Passenger check-in counter rental services; Baggage carousel rental services; Passenger boarding bridge rental services; Comprehensive ground handling technical services at airports (for airports still applying comprehensive methods); Automated baggage sorting services; Aviation fuel supply services; Infrastructure use of the underground fuel supply system at airports; Concession of aviation services at airports, including the following concession services: passenger terminals; terminals and warehouses; ground handling technical services; Maintenance and repair of aviation vehicles and equipment; aviation technical services; in-flight catering services, and aviation fuel supply.

c) Non-aviation services with price frameworks: Space rental services at passenger terminals; Space rental services at cargo terminals; Essential basic services at airports, including the supply of domestic food and beverages (instant noodles, instant vermicelli, instant porridge, plain bread without additional fillings; bottled water with a capacity of 500 ml or less; various types of milk with a capacity of 180 ml or less).

d) Maximum pricing for basic economy class domestic air passenger transport services sold within the territory of Vietnam.

2. Organizations and individuals providing services as mentioned in Clause 1 of this Article shall prepare plans on prices as required by the competent state authorities and are accountable for the plans they prepare.

3. The preparation, evaluation of pricing plan documents, issuance of pricing documents, or price adjustments are conducted in accordance with the provisions of the law on prices.

Article 6. Price declaration

1. List of services subject to price declaration:

a) Essential basic services at airports, including the supply of domestic food and beverages (instant noodles, instant vermicelli, instant porridge, plain bread without additional fillings; bottled water with a capacity of 500 ml or less; various types of milk with a capacity of 180 ml or less);

b) Price for basic economy class domestic air passenger transport services sold within the territory of Vietnam.

2. The Civil Aviation Authority of Vietnam shall receive price declaration documents, organize the updating of declared price information into the National Database on Prices for services of service business organizations as specified at Point b, Clause 1 of this Article, and use the declared prices for the purposes of market price aggregation, analysis, and forecasting as prescribed.

3. The airport authorities shall receive price declaration documents, organize the updating of declared price information into the National Database on Prices for services of service business organizations as specified at Point a, Clause 1 of this Article, and use the declared prices for the purposes of market price aggregation, analysis, and forecasting as prescribed.

4. The procedures for price declaration and reception are carried out in accordance with the provisions of the law on price.

Article 7. Price listing

Organizations and individuals providing services must list service prices in accordance with the provisions of Article 29 of the Law on Prices.

Article 8. Disclosure of price information

The disclosure of price information is carried out in accordance with Clauses 1, 2, 4, and 5 of Article 6 of the Law on Prices.

Article 9. Responsibilities of State management agencies

1. Civil Aviation Authority of Vietnam

a) Organize the implementation of regulations on price management as stipulated in this Circular and related legal documents;

b) Inspect the compliance with regulations on the pricing of domestic air transport freights and specialized aviation services within its authority.

2. Airport authorities

   a) Monitor and urge the implementation of regulations on the pricing of non-aviation services by organizations and individuals providing non-aviation services at airports;

   b) Inspect the compliance with regulations on the pricing of non-aviation services within their authority.

Article 10. Effect and organization of implementation

1. This Circular takes effect from July 1, 2024.

2. The following Circulars are repealed:

   a) Circular No. 36/2015/TT-BGTVT dated July 24, 2015, of the Minister of Transport, on management of domestic air transport freight and aviation service prices;

   b) Circular No. 06/2022/TT-BGTVT dated May 27, 2022, amending and supplementing a number of articles of the Minister of Transport’s Circular No. 36/2015/TT-BGTVT dated July 24, 2015, on management of domestic air transport freight and aviation service prices.

3. Article 7 of Circular No. 53/2019/TT-BGTVT dated December 31, 2019, of the Minister of Transport, prescribing prices and price frames of a number of specialized aviation services at Vietnam’s airports and aerodromes, is repealed.

4. In case any legal documents referenced in this Circular are amended, supplemented, or replaced, the new ones shall prevail.

5. Chief of the Ministry Office, the Chief Inspector of the Ministry, the Directors of Departments, the Director General of the Civil Aviation Authority of Vietnam, and the heads of relevant agencies, organizations, and individuals shall implement this Circular./.

 

 

FOR THE MINISTER

       DEPUTY MINISTER

 

 

Le Anh Tuan

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