Name of recommendations: Considering the collection of charges for the use of works, infrastructures, service works and public facilities in Hai Phong Seaport under Resolution No. 148/2016 / NQ-HDND

Status: Has not been responded

Recommended by units: PetroVietnam Gas Corporation (PVGas)

Official letter: 2708/PTM - VP, dated: 2017-10-20

Recommended contents:

Resolution No. 148/2016 / NQ-HDND dated December 13, 2016 of the People's Council of Hai Phong City stipulating the rates, the regime of collection, remittance, management and use of charges for use of construction, infrastructure, public services in Hai Phong Seaport, PVGAS would like to have the following comments:

Under Clause 1, Point 3, Point c of the above Resolution, enterprises import liquefied petroleum gas (LPG) shall have to pay a fee of VND 20,000 for each ton of imported goods. This fee will directly affect the business activities of PVGAS in particular and the import and export business of liquefied petroleum gas (LPG) in the city of Hai Phong in general. Specifically, the above fees increase the cost burden and reduce the business efficiency of the enterprise due to overlapping categories of charges and fees that LPG business has been paying is in accordance with the provisions of Ministry of Finance, details are as follows:

To pay fees according to the provisions of Clause 5, Clause 1, Point b of the Finance Ministry's Circular No. 250/2016 / TT-BTC of November 11, The fee for the use of infrastructure works, service works and public facilities in border-gate areas (including border-gate areas, the mainland and border gate areas cover the costs of maintenance, and maintenance of service or reconstruction of technical and social infrastructure works, service and public facilities in the border area ".

+ PVGAS's LPG depot is located at Dinh Vu Industrial Zone and PVGAS has fully paid for the cost of using the facilities, infrastructure, public utility and services in Hai Phong Seaport through payment of rent / maintenance costs for Dinh Vu Industrial Park in accordance with State’s regulations.

To pay charges according to the provisions of Article 11, Item 2, Point d of the Finance Ministry's Circular No. 01/2016 / TT-BTC of January 5, 2004 on maritime charges and fees and the table of charge rates, The maritime charges for liquefied petroleum gas through wharves shall be subject to a fee of USD 0.9 / ton

- Pay the fees according to the provisions of Articles 7, 8, 9, 10 and 12 of the Finance Ministry's Circular No. 01/2016 / TT-BTC of January 5, and the rates of maritime charges and fees prescribed in charges for the use of canals and waterways, such as tonnage for ships, maritime security fees, pilotage fees. These fees are paid indirectly by PVGAS to the port authority of Hai Phong through a foreign LPG supplier (the LPG price includes all costs mentioned above).

In addition, businesses and PVGAS also have to pay the costs of the State when using the road in Hai Phong Seaport area such as tolls and road maintenance fees ...

Thus, People's Council of Hai Phong City continues to collect fees for the use of works, infrastructure, service works and public facilities in Hai Phong seaport border gate area for imported LPG. The cost of VND 20,000 / ton is unreasonable and at the same time causing the enterprises to have to pay fees, increase the cost burden and reduce the efficiency of production and business activities of LPG exporters, negative effect to the gas stabilization policy of the State.

With the analysis and reasons mentioned above, PVGAS suggested that the Government consider and consult the People's Council of Hai Phong without collecting the cost of using works, infrastructure, service works and public facilities in Hai Phong Seaport under Resolution No. 148/2016 / NQ-HDND