MINISTRY OF FINANCE SOCIALIST REPUBLIC OF VIETNAM Unofficial translation Nº. 1079/QD-BTC Independence - Freedom - Happiness --------------Hanoi, January 20th, 2014 DECISION ON THE APPLICATION OF PRICE STABILIZATION MEASURES FOR DAIRY PRODUCTS FOR CHILDREN UNDER 06 YEARS OLD MINISTER OF FINANCE Pursuant to Law on Prices No. 11/2012/QH13 dated 20/6/2012; Pursuant to Decree No. 177/2013/ND-CP dated 14/11/2013 of the Government detailing and guiding the implementation of some articles of the Law on prices; Pursuant to Decree No. 215/2013/ND-CP dated 23/12/2013 of the Government defining the functions, tasks, powers and organizational structure of the Ministry of Finance; Implementing Resolution No. 29/NQ-CP dated 02/05/2014 regarding Government's regular meeting in April 2014; After consulting with the Ministry of Justice in Official Letter No. 2270/BTP-PLDSKT dated May 12, 2014, with the Ministry of Industry and Trade in Official Letter No. 300/BCT-TTTN dated May 12, 2014; At the request of the Price Management Department, DECIDES: Article 1. Perform stabilize prices for dairy products for children under 06 years old (hereinafter referred to as dairy products) by the following means: 1. Manage maximum price as defined in section 7 of Article 17 of the Law on Prices for dairy products for a period of 12 months from the date of coming into force of this Decision. 2. Implement price registration under the provisions of section 4 of Article 17 of the Law on Prices for dairy products for a period of 6 months from the date of coming into force of this Decision. Article 2. Maximum price of dairy products are defined as follows: 1. The maximum price for wholesale: a) Set maximum price for wholesale of 25 dairy products at the Appendix to this Decision. b) On the basis of the maximum price of 25 dairy products specified in point a, organizations and individuals producing and trading dairy products (hereinafter referred to as organizations and individuals) are responsible for determining maximum price following these guidelines: - For other dairy products in circulation in the market, organizations and individuals based on the valuation method prescribed for common goods and services issued by the Ministry of Finance and compare the prices of those dairy products to those with set maximum price to determine the maximum price and send it to the competent authorities of price management. - For new dairy products, not yet circulating in the market, organizations and individuals based on the valuation method prescribed for common goods and services issued by the Finance Ministry and compare with the dairy products in circulation with set maximum prices to determine the maximum price and send it to the competent authorities of price management. 2. Maximum price for retail: a) The maximum price for retail stage is determined by the maximum price for wholesale plus other related costs under the guidance of the competent authorities of price management but cannot exceed 15 % of the wholesale price ceiling. b) Organizations and individuals subject to retail price registration under the provisions of Decree No. 177/2013/ND-CP dated 14/11/2013 of the Government detailing and guiding the implementation of some articles of Law on Prices, shall base on the provisions of point a of this clause and the guidance of the competent authorities of price management to determine the maximum price for retail and send it to the competent authorities of price management. 3. During the application of maximum prices for dairy products (including maximum price published in clause a, section 1 of this article), if any factors that lead to change , the price management authorities shall base on market situations, price forming basis , production cost of organizations , individuals , to consider adjusting prices. Any reflection of the organizations or individual will be studied and replied by price management authorities within 5 working days from the day all information is provided. Article 3. Implementation of the Decision 1. Responsibilities of organizations and individuals producing and trading dairy products: a) Base on the guidance at Point b, Clause 1, Clause 2 of Article 2 of this Decision to determine the maximum price for wholesale, maximum price for retail, send the maximum prices to the competent authorities of price management to be basis to implement price registration; b) On the basis of the maximum prices sent and approved by competent authorities of price management, register prices as stipulated in Decree No. 177/2013/ND-CP dated 14/11/2013 of the government detailing and guiding the implementation of some articles of the Law on Prices and guidelines of the Ministry of Finance; c) Make public the price at the headquarters, at points of sale, to distribution channels (the maximum price for wholesale) in accordance with regulations. 2. Responsibilities of price management agency: a) Department of Price Management of the Ministry of Finance is responsible for : - Guiding the implementation of this Decision; - Acquire the maximum price proposal and price registration documents to review price forming costs, control price registration in accordance with regulations applied to organizations and individuals subject to price registration at the Ministry of Finance; - Make public the maximum prices of dairy products of organizations and individuals subject to price registration at the Ministry of Finance; - Organize and coordinate with the competent authorities of the ministries, the lines and the regions in the inspections of maximum price and price registration for dairy products; - Handle, or present to competent authorities to handle, problems that arise, promptly propose adjustments adapted to market changes in period of price stabilizing measures. b) People's Committees of provinces and cities directly under the central government shall be responsible for: - Implement price stabilizing measures at the region under the guidance of the Ministry of Finance; guide on other related costs within the maximum scope specified in Point a Clause 2 of Article 2 of this Decision; - Following the instructions of the Ministry of Finance in the acquisition of maximum price proposal and price registration documents , check maximum price forming cost, check price registration under provisions of regulations applied to the organization individuals subject to price registration within the area of jurisdiction; - Make public maximum prices of dairy products of organizations and individuals subject to price registration within the area of jurisdiction; - Send monthly report on the implementation of price stabilization measures and other relating requests to the Ministry of Finance; - Direct market control department and other departments in charge of the inspection and control of the implementation of price stabilization under provisions of this Decision, within the area of jurisdiction; deal with or submit to competent authorities to deal with any infractions. 3. Relevant ministries and lines are requested to direct and guide the concerned authorities to coordinate with price management units in the implementation of this Decision. 4. Vietnam Committee of Fatherland Front and other member organizations of the Fatherland Front, Vietnamese Association for Consumers’ Protection are requested, within the powers and responsibilities of such organizations, to coordinate in the implementation of this Decision, promptly inform the Ministry of Finance for proper reactions. Article 4. Effect and implementation responsibilities 1. This Decision takes effect from June 1st 2014; and shall be applied no later than 10 days to wholesale products and no later than 20 days to retail products counting from the day this decision coming into force. 2. Director of General Directorate of Taxation, Director of General Directorate of Customs, Director of Corporate Finance Department and the heads of relevant units of the Ministry of Finance, enterprises, entities and individuals concerned are responsible to determine their responsibilities for the implementation of this Decision. In the course of implementation, any difficulties or entanglements shall be report to the Ministry of Finance for timely reactions. / . For the Minister Vice minister Tran Van Hieu Recipients: - Prime Minister (to report); - Government Office; - The ministries, ministerial-level agencies, agencies attached to the Government; - People's Committees of provinces and cities directly under the Central Government; - Department of Finance; Department of Trade and Industry provincial cities; - Website Ministry of Finance; - Vietnam Fatherland Front; Vietnam Association for Consumers’ Protection; - The units of the Ministry; - PC Department; Inspector of Finance; - Archives: Archive, Price Management Department WHOLESALE PRICE CEILING FOR 25 DAIRY PRODUCTS FOR CHILDREN UNDER 06 YEARS OLD (Issued together with Decision 1079/QD-BTC dated 20.05.2014 of the Minister of Finance) Calculation unit: VND/can (box) Nº. 1 2 3 4 5 6 7 8 9 10 11 Name of the product Calculation Unit Maximum wholesale Price (including VAT) SP Dielac Alpha 123 HT 900g Can (box) 167.000 SP Dielac Alpha Step 2 HT 900g Can (box) 188.000 SP Dielac Alpha 123 HG 400g Can (box) 72.000 SP Dielac Pedia 1+ HT 900g Can (box) 278.000 SP Dielac Alpha Step 1 HT 900g Can (box) 180.000 IMP FRISOLAC GOLD 1 400g Can (box) 196.000 IMP FRISOLAC GOLD 1 900g Can (box) 406.000 IMP FRISOLAC GOLD 2 900g Can (box) 400.000 IMP FRISO GOLD 3 900g Can (box) 365.000 IMP FRISO GOLD 3 1.500g Can (box) 550.000 NAN Pro 3 LEB047 Tin 900g VN Can (box) 334.000 NAN 2 BL InfMPwdr LEB011A-2 800g 12 Can (box) 328.000 VN 13 NAN 1 BL NWB019-4-S 800g VN Can (box) 323.000 LACTOGEN 3 14 Can (box) 226.000 LCOMFORTISGoldLEB105 900gVN NAN 2 BLInfMPwdr LEB011A-2 400g 15 Can (box) 183.000 N5 VN 16 Enfagrow A+ 3 vanilla 1.800g Can (box) 563.000 17 Enfagrow A+ 3 vanilla 900g Can (box) 309.000 18 Enfamil A+ 2 900g Can (box) 363.000 19 Enfamil A+ 1 900g Can (box) 381.000 20 Enfamil A+ 1 400g Can (box) 187.000 21 Abbott Grow 3 900g Can (box) 258.000 22 Grow G-Power vanilla 900g Can (box) 360.000 Similac GainPlus IQ 900g (with Intelli23 Can (box) 405.000 Pro) Similac GainPlus IQ 1,7kg (with 24 Can (box) 692.000 Intelli-Pro) 25 Grow G-Power vanilla 1,7kg Can (box) 610.000 Note: The information on the quality of dairy products as registered with the competent authorities.