Joint Circular No. 04/2004/TTLT/BTC-BNN guiding the support fund regime for the maintenance of original breeds

JOINT CIRCULAR

Guidelines for Financial Support for the Maintenance of Original Breeds

 Implementing Decree No. 14/CP dated March 19, 1996 of the Government on the management of livestock breeds; Implementing Decision No. 225/1999/QD-TTg dated December 10, 1999 of the Prime Minister approving the Program on Crop Seeds, Livestock Breeds, and Forestry Seeds for the period 2000-2005, the Ministry of Finance and Agriculture and Rural Development hereby issue guidelines for financial support to original breed maintenance facilities as follows:  1. Original breeds include: grandparent stock, great-grandparent stock (for pigs and poultry), nucleus herds (for large ruminants), pure breeds for bees, silkworms, and embryos and blastocysts according to the quality standards of the aforementioned breeds.  The types of livestock breeds eligible for state budget support include: cattle, buffalo, horses, pigs, chickens, ducks, geese, swans, goats, rabbits, bees, silkworms, and other types of livestock as decided by the Prime Minister based on the proposal of the Minister of Agriculture and Rural Development.

I. GENERAL PROVISIONS

2. The State allocates a portion of the budget to support original breeds for:

Maintaining and selecting to improve the quality of original breeds;  Importing and adapting new original breeds;

Training and instructing technical and administrative skills for managing original breeds;

Conducting inspections and acceptance of results from original breed maintenance at facilities designated to keep original breeds.

3. Eligible recipients of financial support are units maintaining original breeds with legal entity status at both central and local levels. Central units are assigned tasks by the Minister of Agriculture and Rural Development, while local units are assigned tasks by the Chairman of the People's Committee of provinces and centrally-administered cities.

4. Sources of financial support: Units under central management receive funding for original breed support from the central budget; units under local management receive funding from the local budget.

5. The Ministry of Agriculture and Rural Development is the state agency responsible for the quality of original livestock breeds nationwide; it issues unified procedures, standards, and economic-technical norms for the maintenance and management of original breeds throughout the country.

1. Budget Estimate.

Each year during the third quarter, units tasked with maintaining original breeds prepare the budget estimate for the next year's original breed support costs and submit them to the sectoral management agency (Ministry of Agriculture and Rural Development, Department of Agriculture and Rural Development). The sectoral management agency and the finance agency at the same level will consolidate and review these estimates and incorporate them into the budget draft for submission to the competent authority for approval.  Based on the annual budget allocation for original breed support announced by the finance agency, the Ministry of Agriculture and Rural Development and the Department of Agriculture and Rural Development allocate plans for the distribution of support funds to enable units maintaining original breeds to proactively implement their activities.

2. Determination of Funding Levels.

II. SPECIFIC PROVISIONS

a. Financial support for maintaining and improving the quality of original breeds:

Support unit price:

Livestock breeding costs  for original breed animals

Estimated revenue

from selling products

of one original breed animal

Where:

Support price for breed products  Support price for  Quantity of breed products  product type

one breed product

produced and supported financially : The quantity of breed products produced and supported financially is the quantity of breed products meeting the standard that have been sold to the market and the number of breed animals used to replace existing original breed herds. (The support level applies for three years from the announcement year. After three years, if the price of original breed animals in the market increases by more than 15% on average, the sectoral management agency and the finance agency at the same level will reassess the support level.  b. Funding for importing and adapting new original breeds:

Annually, the state budget allocates funds to import high-quality, high-yielding original breeds not yet available domestically and organize adaptation before introducing them into production.

The Ministry of Agriculture and Rural Development decides the quantity of new original breeds to be imported for centrally-managed units, while the People's Committees of provinces and centrally-administered cities decide the quantity for locally-managed units.   =             The funding for importing new original breeds and adapting them is capped at no more than 20% of the total annual support funding for original breeds.           X       c. Funding for training, instructing technical and administrative skills, and inspecting and accepting the results of original breed maintenance:

     Annually, the state budget allocates funds for the competent authority to organize training, instructing technical and administrative skills, and inspecting and accepting the results of original breed maintenance at breeding facilities. The funding allocated for this activity does not exceed 7% of the total annual support funding for original breeds.                       3. Allocation of Support Funding.                a. Allocation of funding for maintaining and improving the quality of original breeds:

Of whichBased on the announced budget estimate for original breed support funding, the sectoral management agency works with the finance agency at the same level to allocate funding to the units. Upon receiving the support plan announcement from the competent authority, the finance agency at the same level will promptly advance 70% of the original breed support funding, with the remaining amount to be provided to the unit upon submission of complete documentation:  A request letter for original breed support funding from the unit accompanied by a list of the number of original breed animals and breed products sold, and the proposed support level;

Photocopies of sales invoices (financial invoices) certified as true copies and stamped by the unit;  A record confirming the number of breed products meeting the standard used to replace the existing original breed herd at the unit.  The competent industry management agency and the financial agency at the same level shall review the support level.

b. Funding for importing and acclimatizing new original breeds:

Annually, the state budget allocates funding to import high-quality new original breeds with high productivity that have not yet been met domestically, while organizing their acclimatization before production.

The Ministry of Agriculture and Rural Development decides the quantity of new original breeds to be imported for centrally-managed units, while the People's Committees of provinces and centrally-administered cities decide the quantity of new original breeds to be imported for locally-managed units.

The funding for importing new original breeds and acclimatizing them is determined at a maximum of no more than 20% of the total annual funding for supporting original breeds.

c. Funding for training, technical instruction, management business skills, and inspection and acceptance of results of maintaining original breeds:  Annually, the state budget allocates funding for the supervisory agency to organize training, technical instruction, management business skills, and inspection and acceptance of results of maintaining original breeds at breeding facilities. The funding allocated for this activity does not exceed 7% of the total annual funding for supporting original breeds.

3. Allocation of funding for support.

a. Allocation of funding for maintaining and improving the quality of original breeds:

 Based on the budget estimate for supporting original breeds notified to the unit, the industry management agency works with the financial agency at the same level to allocate funding to the units. After receiving the support plan from the supervisory agency, the financial agency at the same level will promptly advance 70% of the funding for supporting original breeds, with the remaining amount being provided to the unit upon submission of complete documentation:

A request letter for funding support for original breeds from the unit, accompanied by a list detailing the number of breeding animals and seed products sold, and the proposed level of support;

A photocopied sales invoice (financial invoice) with confirmation of true copy and stamped by the unit;

A record confirming the number of seed products meeting standards to replace the existing original breed stock at the unit;

The industry management agency and the financial agency at the same level to process the allocation of support funding.

The inspection and acceptance record of the results of maintaining original breeds and determining the quantity of standard breeding products for sale and to replace the original breeding stock of the industry management agency.

The application for financial support submitted by the unit responsible for maintaining original breeds shall be sent to the industry management agency and the finance agency at the same level to process the allocation of financial support.  inspection and acceptance of results of maintaining original breeds:

b. Allocation of funds for importing and acclimatizing new original breeds:

Based on the decision of the industry management agency regarding the importation of new original breeds, the finance agency at the same level will allocate funds to the unit assigned the task after signing an import contract with a legal entity for import and export and opening a Letter of Credit at a commercial bank for the import of breeding animals.

The industry management agency confirms the acclimatization period and calculates the necessary funds for acclimatization to coordinate with the finance agency at the same level in arranging funds for the unit.

c. Allocation of funds for training, technical and operational management instruction, and funds for inspecting and accepting the results of maintaining original breeds:  the quality of breeding animals maintained at the units.

These funds are allocated to the industry management agencies and units responsible for maintaining original breeds to implement training, technical and operational management instruction programs for breeds and inspection and acceptance activities of the results of maintaining original breeds according to the annual plan.

Based on the approved budget estimate, the finance agency will allocate funds to the industry management agency or the unit responsible for maintaining original breeds according to the progress of the training, inspection, and acceptance tasks.

4. Reporting, inspection, and use of financial support.

Every six months, on June 30 and December 31 each year, units assigned the task of maintaining original breeds are responsible for reporting the results of breeding and producing seeds to the state management agency for original breeds. In accordance with management requirements, the industry management agency is responsible for periodic and spot inspections of the quantity and quality of breeding animals maintained by the units.  strictly adhere to current financial and accounting regulations. Units must use the allocated support funds for their intended purpose and may not use the support funding to establish reward funds or welfare funds or for other purposes contrary to the provisions of this circular.

Heads of units assigned the task of maintaining original breeds are responsible for the quantity and quality of breeding animals sold, artificial insemination results, embryo transfer results, and strictly implementing current financial and accounting regulations. The unit must use the support funds for their intended purpose and may not use the financial support funds to establish reward or welfare funds or other purposes contrary to this Circular.  implement strictly the current financial and accounting regulations. The unit must use the support expenditure for its intended purpose and may not use the support funds to establish award funds, welfare funds, or other purposes contrary to the provisions of this Circular.

5. Financial settlement.

Annually, the unit receiving support funds for original breeds is responsible for settling accounts according to current financial regulations, reporting to the industry management agency for review,  summarizing to send to the Ministry of Finance for units under the Ministry of Agriculture and Rural Development and sending to the Provincial Department of Finance  for units under the People's Committee of provinces and centrally-administered cities.

III. IMPLEMENTATION PROVISIONS  ADMINISTRATIVE

This Circular takes effect fifteen days from the date of publication in the Official Gazette and applies from the fiscal year 2004. Previous provisions inconsistent with this Circular are abolished. During implementation, if there are difficulties or obstacles, they should be promptly reported to the Ministry of Finance and the Ministry of Agriculture and Rural Development for coordination and resolution./.