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THE
GOVERNMENT PRICING COMMITTEE
THE VIETNAM CIVIL AVIATION ADMINISTRATION
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No. 171/1998/TTLT/BVG-CAAV
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Hanoi,
February 7, 1998
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JOINT CIRCULAR
ON MANAGEMENT OF
PRICES IN THE VIETNAM CIVIL AVIATION SERVICE
Pursuant
to the Law on Vietnam Civil Aviation of 1991 and the Law on Amendments and
Supplements to a Number of Articles of the Law on Vietnam Civil Aviation of
1995;
Pursuant to Decree No.1-CP of January 5, 1993 of the Government on the tasks,
powers and organization of the apparatus of the Government Price Commission;
Pursuant to Decree No. 68-CP of October 25, 1995 of the Government on the
functions, tasks, powers and organizational structure of the apparatus of the
Vietnam Civil Aviation Administration;
Pursuant to Decision No.137-HDBT of April 24, 1992 of the Council of Ministers
(now the Government) on management of prices;
Pursuant to Decision No.818-TTg of December 13, 1995 of the Prime Minister on
the management of Vietnam civil aviation transport charge;
The Head of the Government Price Commission and the Head of the Vietnam Civil
Aviation Administration here below provide the following regulations on the
State management mechanism of prices in the Vietnam Civil Aviation service:
I.
GENERAL PROVISIONS
1. Prices in the Vietnam Civil Aviation Service
(hereafter called aviation prices) are the prices of the air and non-air
services supplied by the entities and legal persons operating and doing
business in the domain of aviation (hereafter called "units") to
passengers, airlines, individuals, organizations and enterprises using these
services (hereafter called service users). Aviation prices comprise the
following types:
1.1- Air freight transport charge including
transport charge of passengers, merchandises, air mails, air packages on
international and domestic routes, chartered service flights in service of the
national economy, special flights. These shall be managed according to Circular
No.904-CAAV of May 6, 1996 of the Vietnam Civil Aviation Administration guiding
the implementation of Decision No.818-TTg of December 13, 1995 of the Prime
Minister.
1.2- The other types of price in the Aviation
Service shall be managed according to the regulations of this Circular.
2. To promote the activities of the Aviation
Service, the aviation prices shall be established on the basis of reasonable
expenditures, allowing for the possibility of recovering the investment and
creating accumulation. At the same time they shall have to conform with the
price rate of the countries in the region and step by step to carry out the
recommendations of ICAO in the domain of prices.
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3. With regard to the types of business and
service of a high monopolistic character directly related to the use of the
infrastructure of the Civil Aviation Service or directly influencing the users
of the air transport services and transporters running air transport activities
in the Vietnamese territory, the State manages prices through the setting of
different types of prices or determining the principles of setting prices and
price frames of these kinds of service.
With regard to other types of business and
service: the units shall set prices according to the market mechanism, but they
are banned from misusing their monopolistic position or monopolistic alliance
position to raise prices and force prices on customers, and they shall have to
submit to the common management of prices by the competent agencies as
stipulated in this Circular.
II.
COMPETENCE IN PRICE SETTING
1. The Government Price Commission: on the basis
of written proposals of the Vietnam Civil Aviation Administration, the
Government Price Commission shall examine and assign to the Vietnam Civil
Aviation Administration the task of setting the following types of price:
1.1- Price of sending airplanes to and from.
1.2- Price of service to air passengers at the
aviation airports.
1.3- Price of landing and taking off of
airplanes.
2. The Vietnam Civil Aviation Administration:
2.1- To work out or to guide the units to work
out plans and examine and integrate the plans and propose the Government Price
Commission to examine the types of price defined in Article 1, Part II.
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2.2.1- Price of aviation safety scanning.
2.2.2- Price of leasing stands for filling
passenger procedures at the aviation airports.
2.2.3- Price of car parking at the aviation
airports.
2.2.4- The price of assigning the right of
exploitation at the aviation airports.
2.2.5- Price of subscription at the aviation
airports.
2.2.6- Price of supplying supplementary service
in directing transit flights.
2..2.7- Price of using the aircraft parking
area.
And a number of other types of price arising in
the process of activity of the units but this must necessarily be closely
managed and defined in order to ensure the good implementation of the policies
of the State in the business of the various types of aviation services.
2.3- The Vietnam Civil Aviation Administration:
basing itself on the practical situation or at the proposal of the units it
shall:
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2.3.1.1- Price of supplying gasoline and
lubricant for aircraft.
2.3.2- Lay down the frame for the following
prices:
2.3.2.1- Price of cooling the brakes and
cleaning the aircraft tyres.
2.3.2.2- Price of hiring cars and other ground
means at the aviation airports.
2.3.2.3- Price of renting level ground for
advertizements at the aviation airports.
2.3.2.4- Price of renting level ground at the
aviation airports.
2.3.2.5- Price of providing ground technical and
commercial services for the aircraft.
2.3.2.6- Price of storaging airborne goods in
the warehouses or on the yard.
2.3.2.7- Price of hauling aircraft.
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2.3.2.9- Price of renting aircraft ramps.
2.3.2.10- Price of using baggage belts at the aviation
airports.
2.3.2.11- Price of transport business in the
parking area of the aviation airport.
2.3.2.12- A number of non-aviation prices of the
direct services in using the infrastructure of the local airport (not an
international airport).
And a number of other prices arising in the
process of the activities of the units but these must be controlled in terms of
the principles of setting the prices or price frames.
3. For the units:
3.1- Proceeding from market requirements and on
the basis of complying with the principles or price frame defined by the
Vietnam Civil Aviation Administration, the units shall set concrete prices for
the various types of price stated in Section 2.3 above.
3.2- On the principle of setting prices
according to the market mechanism, but they are banned from misusing their
monopolistic position or monopolistic alliance position to raise prices and
force prices on customers, the units shall set the following types of price:
3.2.1- Price for guarding aircraft.
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3.2.3- Price of using the sending-off house at
the airports.
3.2.4- Price of supplying equipment and services
in booking and ticket selling for air transport.
3.2.5- Price of other services and commercial
and business prices supplied by the units.
3.3- In case new kinds of service arise which
are not yet concretely specified in this Circular, the unit shall be allowed to
temporarily apply the price rate agreed with the customers or the price rate
stipulated by the unit. Within 30 days after applying the temporary prices, the
unit must work out the draft prices or price frame and submit it to the Vietnam
Civil Aviation Administration and the Government Price Commission for
consideration and decision (except for the types of price mentioned in Section
3.2 above).
III.
OTHER REGULATIONS
1. Registration of aviation prices:
1.1- The units have the responsibility to
register with the Vietnam Civil Aviation Administration the types of aviation
prices stated in Point 3, Part II (except the types stated in Section 3.2.5):
1.1.1- Periodical registration: this shall be
carried out annually (on the days prior to the 1st of February each year) for
the types of price planned for application in the subsequent period.
1.1.2- Ordinary registration: The new price
rates must be registered 15 days at the latest before the date of official
application, except for the types of price stipulated by the Aviation
Administration (prices stated in Sections 1 and 2.2 Part II).
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1.3- In the process of implementation,
proceeding from the requirements of reality, the units are allowed to adjust
the price increases or decreases of no more than 5% compared with the price
rate or price frame already registered. In case of bigger changes, the units
shall have to re-register the said type of price before applying the new price
rate as prescribed in Section 1.1.2 above.
In case of changes of other contents such as
name, subjects of application, special cases... the unit shall have to
re-register these contents right during the application of the new contents.
2. Consultation on aviation prices:
2.1- In case of dispute concerning the types of
price mentioned in Point 3, Part II, the units or the users of service are
entitled to propose the organization of consultation on prices. The chairing
agency of this consultation is the Vietnam Civil Aviation Administration (with
the participation of the Government Price Commission).
2.2- In case the sides cannot agree on the price
rates through consultation, the Vietnam Civil Aviation Administration shall
decide the price rate to be applied. The sides shall have the obligation to
carry out this decision.
3. Checking the implementation of aviation
prices:
3.1- The Vietnam Civil Aviation Administration
and the Government Price Commission shall organize either independently or
jointly the check of the implementation of the prices and price frames of
aviation at the units; shall handle in time the violations of the current
prescriptions; supplement or change in time the prices or price frames which
are no longer appropriate.
3.2- The units shall have the responsibility to
report the implementation of the aviation prices to the Vietnam Civil Aviation
Administration periodically every year (in the same period of the annual price
registration) with regard to the types of price mentioned in Part II above,
except the types of price mentioned in Section 3.2.5.
In case of necessity and at the request of the
Government Price Commission or the Vietnam Civil Aviation Administration, the
unit shall have to make an irregular report on the implementation of the
aviation prices concerning all the types of price already mentioned in this
Circular.
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3.4- With regard to the aviation prices related
to the services of the enterprises members of the Vietnam Airlines, the
registration of prices and the reports on the implementation of prices as
prescribed in this Circular shall be conducted in a concentrated and unified
manner through the Vietnam Airlines.
3.5- Each year, on the basis of the
registrations and reports on the implementation of the prices at the units, the
Vietnam Civil Aviation Administration shall have to report on the
implementation of the types of price mentioned in Sections 1 and 2.2 Part II to
the Government Price Commission for coordination in management.
IV. IMPLEMENTATION
PROVISIONS
1. This Circular takes effect from the date of
its signing. The earlier provisions which are contrary to this Circular are now
annulled.
2. In the course of implementation, should any
question arise, the units would report in time those questions which need
supplementation or modification to the Government Price Commission and the
Vietnam Civil Aviation Administration for consideration and settlement.
THE GOVERNMENT PRICING
COMMITTEE
MINISTER-HEAD
Nguyen Ngoc Tuan
THE VIETNAM CIVIL
AVIATION ADMINISTRATION
Nguyen Hong Nhi