DECREE

ON ENVIRONMENTAL PROTECTION CHARGES FOR MINERAL EXPLOITATION

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the November 29, 2005 Environmental Protection Law;
Pursuant to the August 28. 2001 Ordinance on Charges and Fees;
At the proposal of the Minister of Finance.

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1. This Decree prescribes environmental protection charges for mineral exploitation: charge rates and the collection, remittance, management and use of environmental protection charges for mineral exploitation.

Article 2. Subject to environmental protection charges for mineral exploitation specified in this Decree are stone, feldspar, gravel, sand, earth, coal, natural mineral water, Iron Titanium Oxide metal minerals, apatite ore, crude oil and natural gas.

Article 3. Payers of environmental protection charges for mineral exploitation include organizations and individuals that exploit minerals specified in Article 2 of this Decree.

Chapter II

CHARGE RATES, COLLECTION, REMITTANCE, MANAGEMENT AND USE OF ENVIRONMENTAL PROTECTION CHARGES FOR MINERAL EXPLOITATION

Article 4.- Rates of environmental protection charges for mineral exploitation are specified as follows:

1. Crude oil: VND 100,000/ton: natural gas: VND 200/m3

2. Minerals:

Article 5. Based on the charge rates specified in Clause 2. Article 4 of this Decree. People's Councils of provinces or centrally run cities (below collectively referred to as provincial level) shall decide on specific rates of environmental protection charges for exploited minerals suitable to their local practical conditions.

Article 6. Management and use of environmental protection charges for mineral exploitation

1. Environmental protection charges for exploitation of minerals! excluding crude oil and natural gas. all belong to the local budget and shall be used to support environmental protection and investment activities in localities where mineral exploitation activities are carried out specifically for:

a) Prevention and limitation of negative impacts on the environment in localities;

b) Overcoming of environmental degradation or pollution caused by mineral exploitation activities:

c) Cleaning, protection and rehabilitation of natural views and the environment in localities.

2. Environmental protection charges for crude oil and natural gas all belong to the central budget and shall be used to support environmental protection and investment activities in accordance with the Environmental Protection Law and the State Budget Law

Article 7. Obligations of payers of environmental protection charges for mineral exploitation

1. To register charge payment directly with tax offices according to regulations within 10 working days from the date they are licensed to exploit minerals.

2. To fully observe regulations on documents invoices and accounting books applicable to each charge payer according to the State's regulations.

3. To declare monthly payable amounts of environmental protection charges for mineral exploitation to tax offices according to regulations and remit by themselves charge amounts into the state budget a; state treasuries of localities where they exploit minerals corresponding to the data they declare to the tax offices no later than the 20th day of the subsequent month: in case no environmental protection charge for mineral exploitation arises in a month, mineral-exploiting organizations or individuals shall still make and submit charge payment declarations to the tax offices. Mineral-exploiting organizations and individuals shall completely fill in declarations according to set forms and take responsibility for the accuracy of their declarations.

4. In case of merger, consolidation, division, split, dissolution, bankruptcy: transformation of ownership: assignment, sale, contracting or lease of state enterprises, or in case of changes in their exploitation activities, mineral-exploiting organizations or individuals shall declare payable environmental protection charges for mineral exploitation to tax offices and remit by themselves charge amounts into the state budget at state treasuries of localities where the\ exploit minerals by the 45th day at the latest from the date of merger, consolidation, division, split, dissolution, bankruptcy: assignment, sale, contracting or lease of state enterprises, or from the date of occurrence of changes in exploitation activities.

5. To provide documents, accounting books, invoices and other dossiers related to the calculation and payment of environmental protection charges for mineral exploitation when tax offices conduct examination or inspection, or when signs of violations of this Decree committed by charge payers are detected.

6. To finalize the remittance of environmental protection charges for mineral exploitation with tax offices by the 90lh day at the latest from the end of a calendar year or fiscal year.

Article 8. Tasks and powers of tax offices and natural resource and environment management agencies

1. Tax offices have the following tasks and powers:

a) To guide and urge mineral-exploiting organizations and individuals to declare and pay charges according to the provisions of this Decree.

b) To examine and inspect the declaration, remittance and finalization of environmental protection charges for mineral exploitation: if charge payers do not yet observe or fail to fully observe regulations on documents, invoices or accounting books, tax offices shall, in coordination with local functional agencies and based on the situation on charge payers* exploitation of minerals, determine the exploited mineral volumes and payable charge amounts according to the provisions of this Decree.

c) To handle administrative violations related to environmental protection charges for mineral exploitation according to their competence and the provisions of law.

d) To keep and use data and documents supplied by mineral-exploiting establishments or other subjects according to regulations.

2. Local natural resource and environment management agencies shall, within the ambit of their functions, tasks and powers, supply tax offices with information and documents on entities licensed to exploit minerals in their localities. and closely coordinate with tax offices in managing charge payers in accordance with this Decree.

Chapter III

IMPLEMENTATION PROVISIONS

Article 9. Complaints and denunciations and the settlement of complaints and denunciations related to the collection, remittance, management and use of environmental protection charges for mineral exploitation specified in this Decree must comply with the law on complaints and denunciations and the law on charges and fees.

Article 10. Charge payers, organizations or individuals collecting environmental protection charges for mineral exploitation that commit acts of violating the provisions of this Decree shall, depending on the nature and severity of their violations, be administratively sanctioned or examined for penal liability.

Article 11. This Decree takes effect 15 days after its publication in "CONG BAO" and replaces the Government's Decree No. 137/2005/ND-CP of November 9. 2005.

From the effective date of this Decree to December 31, 2008 if provincial-level People's Committees do not yet promulgate new charge rates under the provisions of Articles 4 and 5 of this Decree, the charge rates specified in the Government's Decree No. 137/2005/ND-CP of November 9, 2005 continue to apply: in case the charge rates specified in Decree No. 137/2005/ ND-CP are higher than the maximum charge rates specified in Clause 2 Article 4 of this Decree, those specified in this Decree apply. Localities may collect charges for newly added minerals specified in Clause 2. Article 4 of this Decree only after provincial-level People's Councils issue specified on specific charge rates under the provisions of Article 5 of this Decree. From January 1, 2009, localities shall apply charge rates specified in this Decree.

Article 12. The Ministry of Finance shall guide the implementation of this Decree.

Article 13. Ministers, heads of ministerial-level agencies, heads of government-attached agencies; and presidents of provincial-level People's Committees shall implement this Decree.