DECISION No. 89/2000/QD-BVGCP DATED NOVEMBER 13, 2000 ON FREIGHT OF GOODS TRANSPORTATION BY CARS

THE DIRECTOR OF THE GOVERNMENT PRICING COMMITTEE

          Pursuant to the Government’s Decree No. 01/CP of January 1, 1993 stipulating the tasks, powers and organizational structure of the Government Pricing Committee;

          Pursuant to the Council of Ministers’ Decision dated 27 April 1992 stipulating management of pricing;

          Pursuant to the Government’s Decree No. 20/1998/ND-CP dated 31 March 1998 on trade development in mountainous areas, offshore islands and ethnic minority regions;

          Upon the proposal of the Finance-Pricing Department, the Communications and Transport Department of provinces and cities;

          After consulting the concerned branches,

DECIDES:

            Article 1: To issue together with this Decision the Table of freight of goods transportation by cars (Appendix 1) and the guidelines for calculating freight of goods transportation by cars, applicable to:

1.        Determination of goods transportation freight that shall be paid from the State budget sources. In cases where the bidding mechanism is applied to cargo freight, the bid-winning freight shall apply.

2.        Determination of unit price for price and freight subsidies of each goods item in each locality, which shall serve as basis for calculation of annual estimation of price and freight subsidies in the provinces which implement policies for mountainous areas according to the Government’s Decree No. 20/1998/ND-CP of March 31, 1998 on trade development in mountainous areas, off-shore islands and ethnic minority regions.

3.        To be used as basis for reference by various units during the process of negotiating goods transport contracts other than the above-mentioned cases.

            Article 2: Freight of goods transportation by cars stipulated in Article 1 is maximum and added VAT. Basing themselves on actual conditions of exploitation and transportation cost at local, the People’s Committee of the provinces and centrally-run cities stipulate:

1.        Tariff of transportation goods freight by cars in the provinces and centrally-run cities scope and the freight shall not exceed the maximum freight stipulated in Article 1. When the freight is higher than the amount stipulated, the approval of the Government Pricing  Committee must be obtained;

2.        Freight goods transportation for the road worse than road of kind 5.

            Article 3: This Decision takes effect as of January 1, 2001 and replaces Decision No. 36/VGCP-CNTD.DV dated May 8, 1997 of the Government’s Pricing Committee on freight goods transportation by cars and Decision No. 13/1999/QD-BVGCP of the Government’s Pricing Committee dated March 26, 1999 on amendment of and addition to a number of Articles of Decision No. 36/VGCP-CNTD.DV dated May 8, 1997 and others relevant documents for guidance.

          In respect of freight of goods transportation agreed in the contract which is signed before January 1, 2001 but have not been transported shall be object of this Decision.

The director of the government pricing committee

NGUYEN NGOC TUAN

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Appendix 1

TARIFF OF GOODS TRANSPORTATION BY CARS

(Issued together with Decision No. 89/2000/QD-VGCP dated November 13, 2000 of the Government Pricing Committee)

I. Tariff of goods transportation by cars:

1.        Basic unit price of goods of type 1:

          Goods of type 1 comprises earth, sand, gravel, brick of all kinds.

                                                                                Unit: Dong/Ton.km

2.        Basic unit price of goods of type 2: Freight calculated by 1,1 times of  goods of type 1.

          Goods of type 2 comprises tile, bag of foodstuff, stone of all kinds (except grindstone), rough timber, coal of all kinds, assorted ores, paint of all kinds, thatch, bamboo, neohouzeaua, leaf, bamboo tube, assorted bamboo…, glazed terra-cotta, porcelain, finished and semi-finished product of wood (door, cupboard, table, chair, bar…), finished and semi-finished metal (bars, lump, girder, sheets, wire, coils, tube (except water-pipe)…).

3.        Basic unit price of goods of type 3: Freight shall be counted as 1,3 times of goods of type 1.

          Goods of type 3 comprises: bulky foodstuff, cement, lime of all kinds, fertilizers of all kinds (except dung), petrol, insecticide, drug for epidemic, drug of anti-termite and wood boring worm, drug for animal, book, newspaper, writing-paper, breed of crop plants,  agricultural produce, materials of all kinds, machinery, equipment for specific purposes, asphalt, tension pole, water-piper (as steel, plastic).

4.        Basic unit price of goods of type 4: freight shall be calculated as 1,4 times of goods of type 1.

          Goods of type 4 comprises: , salt of all kinds, medicine, dung, mud, dirty goods, glass of all kinds, sophisticated goods, glassware, barrel of petrol.

5.        In case that goods transportation shall not be listed in 4 kinds of goods above mentioned, owners of goods or owners of means shall base on specifications of the same goods in order to put goods into proper kind for calculating freight.

II. Increase (adding to) and decrease in freight in comparison with the basic freight stipulated by local government.

1.        Freight of goods, transportation of which conducted by tripod and gasoline-powered means in hard roads of highland of mountainous provinces, shall be subject to the 30% increase of the basic freight.

2.        Freight of goods transported by means of tonnage under 3 tons (except …) shall increase 30% of the basic freight.

3.        Freight of goods transportation by two ways: A owner of goods which is transported by two ways in circle of means shall enjoy 10% reduction of the freight of goods in returned way.

4.        Freight of goods transportation by means which is equipped handling equipment itself:

          4.1  Freight of goods transported by means with self-pouring equipment (tipper track) or means with self-lifting and lowering equipment (…) shall increase 15% of the basic freight.

          4.2 For goods transported by means with self-attracting and letting out equipment (tank truck), freight of which shall increase 20% of the basic freight.

          4.3 In addition to the above-mentioned freight stipulated in item 4.1 and 4.2, for once using this following equipment:

a)        Tipper or tanker equipment: freight shall be added to 2,500 VND for every ton of goods.

b)        Low and high lift equipment: freight shall be added to 3,000 VND for every ton of goods.

5.        For goods contained in containers: Type 3 shall applied for all goods in container. Weight for freight calculation is registered tonnage of the container.

6.        For transportation of below-tonnage goods, freight shall be calculated in the following cases:

a)        Where transported goods is under 50% of registered tonnage of the means, the weight for freight calculation is 80% thereof.

b)        Where transported goods is between 50% and 90% of registered tonnage of the means, the weight for freight calculation is 90% thereof.

c)        Where transported goods is over 90% of registered tonnage of the means, the weight for freight calculation is actual transported goods.

7.        Where transported goods is oversized or overloaded by usual means: freight of transportation is added to 20% of basic freight.

8.        Where over-length or overloaded goods transported by major transport means,  Tariff shall be stipulated by Communication and Transport Ministry.

Appendix 2

GUIDANCE FOR GOODS TRANSPORTATION BY CARS

(Issued together with Decision No. 89/2000/QD-BVGCP dated November 13, 2000 of Government Pricing Committee).

1.        Application scope:

          Provisions of goods transportation freight by cars in this Decision shall be applied in the following cases:

…

2.        General provision:

          2.1 Weight for goods freight calculation: Actual transported weight including packing (except weight of chocked materials, dunnage, tied materials). Unit of the weight is ton (T).

          2.2 Regulations of goods transported by cars:

a)        Goods of short-weight:  Goods of a owner that its volume for transportation  is smaller than registered tonnage of means or goods that its weight is smaller than the tonnage of means after loading on it.

b)        Oversized or over weight goods:

          - Oversized goods means goods, which every bale thereof is not able to separate for loading on, means and contains one of the following properties:

 

·       Length of the goods is less than 12m and exceeds established length of the means’ body after loading on it.

·       Width of the goods is less than 2.5m and exceeds established width of the means’ body after loading on it.

·       Height of the goods is more than 3.2 m from ground.

          An overweighed goods is goods that every bale of goods is not able to separate during loading on means and it weights from over 5 to under 20 tons.

          For a goods is both oversized and overweighed, a means owner is collects just one of either freights. For a goods is both oversized and short-weight, a means owner is collects a maximum freight which does not exceed the rates applied for transported means tonnage. The right to select belongs to the means owner.

2.3 Distance for freight calculation:

          Distance for freight calculation is actual distance of transportation with goods.

          Where there are many different lines of transport in distance of location of goods for send to location of receiving goods, distance for freight calculation is the shortest one of line.

          Where the shortest line is not safe for means and goods, distance for freight calculation is actual distance of transportation only when the contract for transport or other legitimate documents refers thereto.

- Unit of distance for freight calculation is kilometer (abbreviated as km).

- The minimum distance for freight calculation is 1 km.

- Rounded distance for freight calculation: The odd part of under 0.5 km shall not be counted, and of between 0.5 km to under 1 km shall be rounded up to 1 km.

2.4 Road types for freight calculation:

a)        There are five types of road in table of road classification prescribed by Ministry of Communications and Transport; Regarding to roads under the management of local government, types of road applicable to administrative region shall be published by the People’s Committee of provinces, centrally-run cities in accordance with standards as provided for road classification stipulated by the Ministry of Communications and Transport.

b)        Regarding to road which has just opened without distance announcement, the goods owner and the means owner on the basis of standards in force of the Ministry of Communications and Transport agree type of road, distance and write thereof into contract for carriage.

c)        Regarding to goods transport in urban roads, on which the means is driven with reduced speed, with long time for waiting, or with low operation productivity of means caused by traffic density, freight for goods transportation of road type 3 is applied.

d)        Regarding to the road worse than road type 5, unit of basic freight for goods transportation shall stipulated by the People’s Committee of provinces, centrally-run cities on the basis of operation conditions and actual transport expenses at the locality.

      3. Provisions of basic freight of item 1 in tariff of goods transportation by cars:

3.1 Unit price of basic freight at item 1 in tariff of goods transportation goods by cars in this Decision provides for goods in type 1, transported on 5 road types at 41 distances.

          Unit price of basic freight for goods in type 2, type 3, type 4 shall be in ratio to the basic freight for goods in type 1.

          Unit of freight is Dong/ton km.

3.2 Methods of determining basic freight in accordance with distance:

          a) For goods transportation on the same road type: The freight shall be collected corresponding to unit price of freight in accordance to the distance and road type of transport.

          Ex 1: Transporting 10 tons of goods in type 1, distance of 30 km, unit price for road type 1 is 528 dong/ton/km, basic freight is calculated as follows:

          According to unit price of freight for distance of 30 km, goods in type 1, 528 dong/ton/km for road in type 1, the collected freight is :

           528 dong/ton.km x 30km x 10 ton = 158.400 dong.

          b) For goods transportation on route consisting of different stages, unit price of charge for whole route and additional freight for every type of road shall be applied then total amount is paid freight.

          Example 2: transport 10 tons of goods in type 1 with distance of 140 km including 70 km in type 1, 30 km in type 2, 40 km in type 3, and 5 km in type 5. A basic freight is calculated as follows:

          + Applying unit price of distance of above 100 km of road in type 1, goods in type 1 for calculation of freight of 70 km of road in type 1:

          435 dong/ton km x 70 km x 10 tons = 304,500 dong.

           +Applying unit price of distance of above 100 km of road in type 2, goods in type 1 for calculation of freight of 30 km of road in type 2:

          518 dong/ton x 30 km x 10 tons = 155,400 dong.

          +Applying unit price of distance of above 100 km of road in type 3, goods in type 1 for calculation of freight of 40 km of road in type 3:

          761 dong/ton  km x 40 km x 10 tons = 304,400 dong.

          +Applying unit price of distance of above 100 km of road in type 5, goods in type 1 for calculation of freight of 5 km of road in type 5:

          1600 dong/ ton km x 5 km x 10 tons = 80,000 dong.

          Total freight of whole distance is:

          304,000 dong + 155,400 dong + 304,400 dong + 80,000 dong = 844,300 dong.

     4. Other expenses in addition to transport goods freight stipulated in Appendix 1:

          4.1 Mobilizing of means expense:

          The mobilizing of means expense shall be exempt from where distance thereof is less than 3 km. The expense shall be counted as for once mobilizing where the transport means is mobilized from the parking space ( of transport unit, truck group) and drives 3 km to another place to work; and after finishing the work, the means returned to the  first departure (except goods owner cannot arrange the accommodation for the driver and a parking space).

          Expense of mobilizing of means shall be calculated as follows:

Amount of mobilizing of means = ((total driving km – 3 first driving km x 2) – (total driving km with goods x 2)) x unit price of goods in type 1, road in type 1, distance above 100 km x registered means tonnage

          4.2 Expense of waiting for means:

          Time for handling and exchange procedures of goods in a transport is 1 hour; where the time is exceeds, delayed party have to pay the expense of waiting for means (even though where the owner of means cannot meet the enough means to transport goods in accordance with the contract).

          Expense of waiting for means stipulated as 15,000 dong/ton-means-hour and 6,000 dong/ton-trailer-hour.

          Rounding decimal figures up: time less than 15 minutes is not counted; from 15 to 30 minutes counted as 30 minutes; over 30 minutes counted as 1 hour.

          4.3 Expense of dunnage, tying goods up: In addition to freight, the owner of means may collect expense of dunnage, tying goods up where he carry out transport of some kinds of goods (bulky, sophisticated, fragile, heavy goods…) with  requirements  of dunnage, tying goods up.

          The expense of dunnage, tying goods up is agreed in contract for transport in writing by the owner of means and the owner of goods.

          The owner of means is responsible for provisions of materials, instruments, human resources to implement dunnage, tying goods up.

          4.4 Road tax, toll, ferry-boat fee:

          Where means drives in the roads which are subject to road tax, toll, ferry-boat fee, the owner of goods have to return those fees for owner of the means in accordance to unit price stipulated by the State.

          4.5 Sanitary of means expense:

          Means used for loading goods shall have to cleaned up; ordinary sanitary is work of the transportation party without remuneration.

          Where goods for transportation is lime, bulk cement, dirty…, owner of goods shall have to pay the expense of sanitary for owner of means as agreed by both parties.

     5. Examples of calculation of goods transport freight by cars

          Example 1: transport of 12 tons of iodine salt in the stretch of mountainous road in type 5 with distance of 30 km, using of means with low capacity (3 tons), transport freight shall be calculated as follows:

          1. Basic freight:

          1942 dong/ton km x 1.4 (type 4) x 30 km x 12 tons = 978,768 dong.

          2. Stipulations for additional freight:

          Using of means with tonnage of 3 or under 3 tons (application of clause 2/II appendix 1):

978,768 dong/ton x 30% = 293,630 dong.

          3. Sum of transport freight:

978,768 dong + 293,630 dong = 1,272398 dong.

          Example 2: Transport of 25 tons of petrol by tank truck (using self-attracting and letting out equipment), distance of 42 km road in type 2, transport freight shall be calculated as follows:

          1. Basic freight:

          580 dong/ton km x 1.3 (goods in type 3) x 42 km x 25 tons = 791,700 dong.

          2. Stipulations for additional freight:

          Using of tank truck (application of point 4.2 clause 4/II appendix 1):

          791,700 dong x 20% = 158,340 dong.

          Using self-attracting and letting out equipment (application of point b/4.3 clause 4/II appendix 1):

          2,500 dong x 25 tons = 62,500 dong.

          3. Sum of transport freight:

          791,700 dong + 158,340 dong + 62,500 dong = 1,012 540 dong.

          Example 3: Transport of 22 tons of chemical fertilizer in the road with distance of 85 km (including 5 km road in type 3, 30 km road in type 4 and 50 km road in type 5), tonnage of means is 5 tons but real capacity is only 4 tons (factor of use is 80%), using of tripod and gasoline-powered means, transport freight shall be calculated as follows:

          1. Basic freight:

          (7730 dong/ton. km x 5 + 1121 dong/ton. Km x 30 + 1626 dong/ton. Km x 50) x 1.3 (goods in type) = 154,430.50 dong/ton.

          2.       Stipulations of addition freight:

          Use of tripod and gasoline-powered means (application of clause 1/II appendix 1):

          Freight of transport 1 ton by gasoline-powered means:

          154,433.50 dong/ton x 30% = 46,330.05 dong/ton.

          3. Freight of transport 1 ton of goods:

          154,433.50 dong/ton + 46,330.05 dong/ton = 200,763.55 dong/ton.

          4. Because of goods transported is loaded onto 80% of tonnage of means, application point b clause 6/II appendix 1 for freight of 1 ton shall applied as follows:

          (200,763.55 dong/ton x 5 ton x 90%): 4 tons (actual transport) = 225,858.99 dong/ton.

          5. Sum of freight:

          225,858.99 dong/ton x 22 tons = 4,968897.78 dong/ton.

          Example 4: means of 5 tons is moved from parking lot (point A) to point B with distance of 50 km, for the purpose of goods transport from point B to point C with distance of 100 km, after finishing duty the means return the parking lot A, expense of mobilizing is counted as follows:

          Amount of km from A to C:

150 km x 2 = 300 km.

          Subtracted amount of km as stipulated is:

3 km x 2 = 6 km.

          Amount of km with goods from B to C:

100 km x 2 = 200 km.

          Use of unit price of freight of goods in type 1, road in type 1, distance of above 100 km by 435 dong/km.

          Expense of mobilizzing is:

(300 km – 6 km – 200 km) x 435 dong/ton. km = 204,450 dong.