Decree No. 109/2010/ND-CP on Trading Export Rice

DECREE

On rice export business

__________

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Law on Trade dated June 14, 2005;

Pursuant to the Enterprise Law dated November 29, 2005;

Considering the proposal of the Minister of Industry and Trade,

DECREE:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

1. This Decree stipulates on the business of exporting paddy and all types of rice (hereinafter referred to collectively as rice).

2. The activities of importing, temporary import for re-export, temporary export for re-import, transshipment, transit, processing rice for foreign countries; the activities of non-commercial exports, aid, gifts, and donations of rice are not within the scope of regulation of this Decree.

Article 2. Applicability

This Decree applies to traders as prescribed by the Law on Trade; agencies and organizations responsible for managing and directing rice exports and other organizations and individuals related thereto.

Article 3. Rights to engage in rice export business

1. Vietnamese traders from all economic sectors, if meeting the conditions prescribed in Article 4 of this Decree and being issued a Certificate of Eligibility for Rice Export Business (hereinafter abbreviated as the Certificate), have the right to engage in rice export business as prescribed in this Decree and other relevant laws.

2. Foreign-invested enterprises engaging in rice export business shall comply with the provisions of this Decree; other relevant regulations of Vietnamese law and commitments of the Socialist Republic of Vietnam under international treaties to which the Socialist Republic of Vietnam is a party.

Chapter II

CONDITIONS FOR BUSINESS AND CERTIFICATE OF ELIGIBILITY FOR RICE EXPORT BUSINESS

Article 4. Conditions for rice export business

1. Traders engaged in rice export business must meet the following conditions:

a) Established and registered for business in accordance with the law.

b) Having at least one dedicated warehouse with a minimum capacity of 5,000 (five thousand) tons of paddy, conforming to general standards issued by the Ministry of Agriculture and Rural Development.

c) Having at least one paddy milling facility with a minimum capacity of 10 tons of paddy per hour, conforming to general standards issued by the Ministry of Agriculture and Rural Development.

2. The warehouses and milling facilities specified in this Article must be owned by the trader and located in a province or centrally-administered city that has commercial rice for export or an international seaport with rice export activities at the time the trader requests issuance of the Certificate.

Article 5. Inspection and Confirmation of Warehouses and Milling Facilities

The Department of Industry and Trade of the province or centrally-administered city is responsible for hosting and coordinating with the Department of Agriculture and Rural Development to inspect and confirm warehouses and milling facilities within their jurisdiction according to the model prescribed in Appendix IV and Appendix V attached to this Decree within a maximum period of ten working days from the date of receiving the trader's written request and related documents.

Article 6. Issuance of Certificate of Eligibility for Rice Export Business

1. The Ministry of Industry and Trade issues the Certificate to traders in accordance with Article 4 of this Decree.

2. The application dossier for the Certificate includes:

a) An application form according to the model prescribed in Appendix I attached to this Decree.

b) A certified true copy of the Business Registration Certificate or Enterprise Registration Certificate, Investment Certificate.

c) The original inventory of warehouses and the original inventory of milling facilities according to the model prescribed in Appendix IV and Appendix V attached to this Decree, confirmed by the Department of Industry and Trade of the province or centrally-administered city according to the provisions of this Decree.

3. Within fifteen working days from the date of receipt of a complete and valid dossier, the Ministry of Industry and Trade examines and issues the Certificate according to the model prescribed in Appendix II attached to this Decree.

In case the Certificate is not issued, the Ministry of Industry and Trade must reply in writing and specify the reasons.

4. The Certificate is valid for five years from the date of issuance. When the Certificate expires, the trader must apply for a new Certificate to continue engaging in rice export business.

5. The issuance of a new Certificate for traders to replace the expiring Certificate is carried out as follows:

a) At least thirty days before the expiration date of the Certificate, the trader submits the application dossier for a new Certificate to the Ministry of Industry and Trade, including:

- Documents as prescribed in Clause 2 of this Article.

- The original Certificate already issued. In case the original is lost, damaged, or destroyed, the trader must provide a report explaining and specifying the reason.

- A report on the operation of rice export business according to the model prescribed in Appendix VI attached to this Decree.

b) The deadline for examining and issuing a new Certificate for traders is carried out according to the provisions of Clause 3 of this Article.

Article 7. Reissue and amendment of the Content of the Certificate

1. The Ministry of Industry and Trade shall examine, reissue, or amend the content of the Certificate in the following cases:

a) There is a change in the content of the Certificate.

b) The Certificate is lost, damaged, or destroyed.

2. The application dossier for reissuing or amending the content of the Certificate includes:

a) An application form in accordance with Model III attached to this Decree.

b) The original Certificate that has been issued. In case the original is lost, damaged, or destroyed, the trader must provide a report explaining the situation and clearly stating the reasons.

c) Relevant documents related to the change in the content of the Certificate, if applicable under point a, Clause 1 of this Article.

3. The time limit for examining, reissuing, or amending the content of the Certificate is 15 (fifteen) working days from the date of receipt of a complete and valid application dossier. In case the reissuance or amendment of the content of the Certificate is not agreed upon, the Ministry of Industry and Trade must respond in writing and clearly state the reasons.

4. The validity period of the reissued or amended Certificate under the circumstances specified in Clause 1 of this Article is the same as the validity period of the previously issued Certificate.

Article 8. Revocation of Certificate

1. The Ministry of Industry and Trade shall examine and decide on the revocation of the Certificate in the following cases:

a) The trader who has been granted the Certificate requests its revocation.

b) The trader is dissolved or declared bankrupt in accordance with the provisions of the law.

c) The trader whose business registration certificate or enterprise registration certificate, investment certificate has been revoked.

d) The trader does not export rice for a continuous period of 12 (twelve) months, except in cases where the trader has notified a temporary cessation of business in accordance with the law.

đ) The trader fails to maintain compliance with the business conditions stipulated in points b and c, Clause 1 of Article 4 of this Decree during the course of business.

e) The trader engages in violations as prescribed from Clause 1 to Clause 5 of Article 26 of this Decree.

g) The trader repeatedly violates as prescribed in point c, Clause 3 of Article 27 of this Decree.

2. In cases where the trader is penalized for violation as prescribed in point e, Clause 1 of this Article, the Ministry of Industry and Trade will only consider issuing a new Certificate to the trader after the minimum period specified below has elapsed:

a) For the first offense, this period is 12 (twelve) months, starting from the date of the revocation decision.

b) For subsequent offenses or the first offense involving two or more violations, this period is 36 (thirty-six) months, starting from the date of the revocation decision.

3. Issuing a new Certificate to a trader after revocation shall be carried out in accordance with the provisions of Article 6 of this Decree.

In cases where the trader's Certificate is revoked as prescribed in point e, Clause 1 of this Article, the issuance of a new Certificate must comply with the time limit specified in Clause 2 of this Article.

4. In addition to the cases of revoking the Certificate as prescribed in this Decree, traders engaged in rice export may also have their Certificates revoked according to other regulatory legal documents issued by competent state agencies.

Article 9. Fees for Issuance, Reissuance, and Amendment of the Content of the Certificate

Traders requesting the issuance, reissuance, or amendment of the content of the Certificate are exempt from payment of fees.

Chapter III

Article 10. Management of Rice Export

Article 10. Objectives and Principles of Rice Export Management

The management of rice export must ensure the following objectives and principles:

1. Contributing to the consumption of paddy and rice commodities and ensuring the interests of rice growers according to current policies.

2. Ensuring balance between exports and domestic consumption; contributing to stabilizing domestic prices of paddy and rice.

3. Implementing international commitments; ensuring effective exports.

Article 11. Balance of Paddy and Rice Commodities for Export

1. Annually, the Ministry of Agriculture and Rural Development shall take the lead and coordinate with provincial People's Committees under the central government to implement the balancing of domestic rice consumption needs, announcing in the fourth quarter of each year the amount of paddy and rice commodities that may be exported in the next planning year; updating and informing the Ministry of Industry and Trade and the Vietnam Food Association about production situations, yields, types, and seasons during the year.

2. The management of rice export shall be based on the balanced supply of paddy and rice commodities for annual export as stipulated in Clause 1 of this Article.

Article 12. Circulating Reserves

Businesses engaged in rice export must maintain a minimum circulating reserve equivalent to 10% (ten percent) of the quantity of rice they have exported in the previous six months.

Article 13. Purchase of Paddy and Rice Commodities for Export

1. Businesses engaged in rice export have the responsibility to notify the provincial People's Committee of the points where paddy and rice will be purchased and to publicize these purchase points so that the people are aware; posting purchase prices according to quality and type of paddy and rice commodities to facilitate direct transactions for farmers.

2. In cases where paddy and rice commodities are purchased through other businesses or from processing facilities, businesses and processing facilities must link up and organize a stable system to comply with the provisions of Clause 1 of this Article.

3. Encouraging businesses to purchase paddy and rice commodities through contracts signed with producers according to the current state policy on the consumption of agricultural commodities through contracts.

4. Businesses implementing the purchase of paddy and rice commodities as stipulated in this Article are eligible to borrow export credit according to current regulations.

Article 14. Price Regulation of Paddy and Rice Commodities for Export

1. Principles of Price Regulation.

Implementing a mechanism to regulate the price of paddy and rice commodities for export on the market based on the average directed price of each crop season determined and announced according to the provisions of this Article to contribute to ensuring profits for rice growers according to current policies (hereinafter referred to as the directed price of paddy).

2. Determination and Announcement of Directed Paddy Prices.

a) The Ministry of Finance shall take the lead and coordinate with the Ministry of Agriculture and Rural Development to issue regulations and guidelines on methods of investigation, determination of production costs, and calculation of production costs of commodity rice for the provincial People's Committees to use as a basis for determining and announcing the average estimated production cost of rice at the beginning of each crop season within their province.

Based on the average estimated production cost of rice for each crop season announced by the provincial People's Committees, the Ministry of Finance shall take the lead and coordinate with the Ministry of Agriculture and Rural Development to inspect, compile, and determine the average estimated production cost of rice for each crop season in the entire production area.

b) Based on the average estimated production cost for each crop season, the Ministry of Finance shall determine and announce the directed paddy price at the beginning of each crop season to serve as a basis for regulating the price of paddy and rice commodities on the market, contributing to ensuring an average profit level for rice growers according to current policies.

3. Regulatory Mechanism

a) In cases where the price of commodity paddy on the market is equal to or higher than the directed paddy price, the State does not intervene.

b) In cases where the price of commodity paddy on the market is lower than the directed paddy price, the Ministry of Agriculture and Rural Development shall take the lead and coordinate with the Ministries of Finance, Industry and Trade, the State Bank of Vietnam, and the Vietnam Food Association to submit specific measures to the Prime Minister for consideration and decision to apply measures to maintain the market price of commodity paddy and rice not lower than the directed paddy price while ensuring the effectiveness of rice export activities.

Article 15. Stabilizing the Prices of Rice and Paddy in Domestic Markets

1. The People's Committee of provinces and centrally governed cities shall take the lead and coordinate with the Ministry of Industry and Trade, the Ministry of Agriculture and Rural Development to direct traders engaged in rice export business within their jurisdiction to organize systems for purchasing and distributing rice, ensuring domestic market stability; inspect compliance with the purchase of paddy and rice according to the provisions of this Decree.

2. When the price of rice in domestic markets increases beyond the level prescribed by current laws, the Ministry of Industry and Trade shall take the lead and coordinate with the People's Committee of provinces and centrally governed cities, the Vietnam Food Association, based on current legal regulations regarding price stabilization of rice products and directives from the Prime Minister, to direct and guide rice export traders to immediately release stored rice into the domestic market supply.

3. Rice export traders shall be responsible for participating in price stabilization and shall be compensated for any incurred costs according to the guidance of competent state agencies.

4. The announcement and application of measures to stabilize the prices of paddy and rice shall be carried out in accordance with current legal regulations.

Article 16. Implementation of Concentrated Rice Export Contracts

1. A concentrated rice export contract is a contract for exporting rice signed through mutual agreement between authorized agencies of the Government of Vietnam and foreign governments or overseas territories, or contracts signed according to the directive of the Prime Minister.

2. The Ministry of Industry and Trade shall take the lead and coordinate with the Ministry of Finance, the Ministry of Agriculture and Rural Development, and the Vietnam Food Association to establish mechanisms and criteria for designating traders to sign and implement concentrated contracts, and to direct the implementation of such contracts.

3. Traders signing and organizing the implementation of concentrated contracts shall directly export 20% (twenty percent) of the quantity of rice stipulated in the contract.

Based on the criteria set forth in Clause 4 of this Article and regulations issued by the Ministry of Industry and Trade, the Vietnam Food Association shall allocate the remaining 80% (eighty percent) of the contract quantity to other traders for agency export implementation.

4. The allocation of concentrated contracts to traders for agency export implementation shall be based on the following criteria:

a) The performance of direct exports in the six months prior to the contract signing by the trader.

b) The responsibility for delivering goods under previously assigned concentrated contracts.

c) The current stock of paddy and rice held by the trader.

d) The performance of purchasing paddy and rice according to the directives of competent authorities.

5. Based on the provisions of this Decree, the Ministry of Industry and Trade shall issue guidelines on concentrated rice export contracts and the handling of violations related to transactions, signing, and implementing export contracts in markets with concentrated contracts.

Article 17. Registration of Rice Export Contracts

1. Based on the provisions of this Decree, the Ministry of Industry and Trade shall issue regulations on the registration of rice export contracts for the Vietnam Food Association to implement the registration of rice export contracts.

2. Within three working days from the date of signing the rice export contract, the trader must submit the required documents to the Ministry of Industry and Trade for contract registration at the Vietnam Food Association. In cases of valid reasons, this period may be extended but not exceeding ten working days.

3. The trader shall be responsible for the authenticity of the information contained in the registered contract; they may only proceed with delivery after the contract has been registered according to regulations; and present the registered export contract to customs authorities when processing export procedures.

4. Within two working days from receiving a valid registration application from the trader, the Vietnam Food Association shall be responsible for registering the trader's export contract in accordance with the Ministry of Industry and Trade's regulations if the trader meets all the criteria for registering rice export contracts as stipulated in Clause 1 of Article 18 of this Decree.

If registration is not approved, the Vietnam Food Association must provide a written response within two working days from receiving the trader's registration application, clearly stating the reasons.

Article 18. Criteria for registering rice export contracts

1. A trader with a Certificate shall be allowed to register a rice export contract when meeting the following criteria:

a) The export contract has an export price not lower than the floor price of exported rice as published in accordance with Article 19 of this Decree.

b) Having at least 50% (fifty percent) of the quantity of rice in the registered export contract available, excluding the quantity of rice that must be kept regularly to maintain the circulation reserve level as stipulated in Article 12 of this Decree.

c) Complying with the regulations on centralized rice export contracts issued by the Ministry of Industry and Trade in accordance with this Decree.

2. Priority shall be given to registering contracts for traders who meet the criteria specified in Clause 1 of this Article and purchase paddy or rice directly from rice producers through agricultural product consumption contracts under the current State policy.

Article 19. Floor Price of Exported Rice

1. The Ministry of Finance shall take the lead and coordinate with the Ministry of Industry and Trade, the Ministry of Agriculture and Rural Development, People's Committees of provinces and centrally-run cities with large volumes of commercial rice production, and the Vietnam Food Association to guide the method of determining the floor price of exported rice based on the following principles:

a) In line with domestic and international market trends.

b) Consistent with the announced directional paddy price, the average purchase price of commercial paddy and rice in the domestic market, business costs, and the profit of traders engaged in rice export.

2. Based on the guidance of the Ministry of Finance, the Vietnam Food Association shall publish the floor price of exported rice during each period as a basis for signing and registering export contracts.

3. The Ministry of Finance shall take the lead and coordinate with the Ministry of Industry and Trade to monitor and supervise the publication of the floor price of exported rice by the Vietnam Food Association in accordance with this Decree.

Article 20. Statistics and Reporting on Registration of Export Contracts

1. The Vietnam Food Association shall be responsible for compiling and updating daily the quantities, values, types of paddy and rice, markets, customers, exporting traders, and the number of registered contracts, and reporting in writing on a weekly, monthly, quarterly, or annual basis, or ad hoc reports as required to the Ministry of Industry and Trade, the Ministry of Finance, and the Ministry of Agriculture and Rural Development.

Regular reports shall also be sent to the People's Committee of the province or centrally-run city where the commercial paddy and rice are exported.

2. In case of unusual developments in the registration of export contracts, the Vietnam Food Association must immediately report to relevant ministries and agencies for prompt handling.

Article 21. Export Tax on Paddy and Rice

The application of taxes on the export of paddy and rice shall be carried out in accordance with the laws on taxation.

Article 22. Ensuring Objectives and Principles of Rice Export Management

To ensure the objectives and principles of rice export management, based on actual export management requirements, the Prime Minister shall consider and decide on adjusting rice export activities based on the proposals of the Ministers of the Ministries of Industry and Trade, Agriculture and Rural Development, Finance, and the Vietnam Food Association.

Chapter IV

RESPONSIBILITIES OF STATE AUTHORITIES AND ORGANIZATIONS AND INDIVIDUALS INVOLVED

Article 23. Responsibilities of Ministries, Sectors, Provincial People's Committees under Central Government Direct Control

In addition to responsibilities stipulated in this Decree and other current laws, the Ministries, Sectors: Industry and Trade, Agriculture and Rural Development, Finance, State Bank of Vietnam, and Provincial People's Committees under Central Government Direct Control that have rice for export also have the following responsibilities:

1. Ministry of Industry and Trade

a) Proactively seek out and expand markets for rice exports through centralized contracts, conduct negotiations with countries having import needs, sign memorandums of agreement on rice exports to foreign countries or regions thereof.

b) Inspect compliance with business conditions by traders; coordinate with competent authorities to inspect, detect, and handle violations related to rice export trade; resolve complaints and accusations and handle violations in the field of rice export trade within their authority.

c) Take the lead and coordinate with relevant Ministries, Sectors, Provincial People's Committees under Central Government Direct Control, and the Vietnam Food Association to organize rice exports in accordance with principles set forth in this Decree.

2. Ministry of Agriculture and Rural Development

a) Uniformly direct localities to establish and implement plans for the development of commercial rice production areas; guide farmers to produce specialized high-quality and high-yield rice varieties; apply scientific and technological advancements in rice production and processing; enhance the quality and brand of Vietnamese rice in the market.

b) Take the lead and coordinate with Provincial People's Committees under Central Government Direct Control, the Vietnam Food Association to monitor production situations, grasp rice yields to balance sources of commercial rice for export; take the lead and coordinate with relevant Ministries, Sectors, localities, the Vietnam Food Association, and State-owned Food Corporations to ensure national food security, stabilize domestic markets, and meet the goals and principles of rice export management as prescribed in this Decree.

c) Coordinate with Provincial People's Committees under Central Government Direct Control that have commercial rice for export in directing the purchase of rice directly from rice producers according to current policies and provisions of this Decree.

d) Develop plans for storage warehouse systems, rice milling facilities; issue common standards for storage warehouses and rice milling facilities and guide implementation nationwide starting from May 1, 2011.

3. Ministry of Finance

a) Issue or submit to the Government, Prime Minister for issuance policies and regulations on investment credit and export credit for traders constructing, expanding, modernizing storage warehouses and rice milling facilities and traders engaged in rice export trade.

b) Take the lead and coordinate with relevant Ministries, Sectors, and localities to implement measures to stabilize rice prices in accordance with current laws.

c) Direct the General Customs Department to compile and report periodically monthly to the Ministry of Finance, Ministry of Industry and Trade, Ministry of Agriculture and Rural Development, Government Office, and the Vietnam Food Association on the volume, price, market, and results of rice exports by each trader engaged in rice export trade.

4. State Bank of Vietnam

Direct commercial banks to proactively balance and ensure funding sources for traders to borrow to purchase commercial rice according to planned forecasts balanced as prescribed in this Decree.

5. Responsibilities of Provincial People's Committees under Central Government Direct Control that have commercial rice for export

a) Develop and implement plans for the development of rice production, ensuring seed structure, direct the supply of agricultural inputs and cultivation techniques, improve rice quality to meet market demands; inspect activities related to the production, circulation, and consumption of rice within their jurisdiction; manage and organize the implementation of plans for the construction of storage warehouse systems and rice milling facilities within their jurisdiction; direct the purchase of rice directly from producers and through contracts signed with producers according to current state policies.

b) Report regularly or at any time upon request of the Prime Minister, relevant Ministries, and Sectors about the stockpile volume and types of commercial rice, and forecasted yield and harvest volume of rice within their jurisdiction to serve rice export management work.

c) Direct Departments of Finance, Agriculture and Rural Development, Industry and Trade to organize investigations and surveys of production costs and production cost calculations for each crop within their jurisdiction according to this Decree and detailed guidance from the Ministry of Finance; direct, inspect, and supervise traders engaged in rice export trade within their jurisdiction in complying with regulations and adhering to management directives of competent authorities as prescribed in this Decree.

d) Promote, mobilize, and organize local residents to implement rice production according to plans and overall government directions to develop production, enhance production and business efficiency, and increase rice exports.

Article 24. Responsibilities of the Vietnam Food Association

In addition to the functions and tasks prescribed by current laws, the Vietnam Food Association also has the following specific responsibilities:

1. Coordinate with provincial People's Committees under the central government in directing and guiding traders engaged in rice export business to purchase paddy and rice through contracts signed with producers in accordance with the current policies of the State.

2. Coordinate with competent authorities to inspect and detect violations in the field of rice export business, and propose measures for handling such violations to competent authorities.

3. Coordinate with ministries, sectors, and localities in directing and guiding traders to purchase commercial paddy and rice, maintain the required level of compulsory circulation reserves, stabilize the market in accordance with the provisions of this Decree.

4. Establish and maintain the operation of an electronic information website on the supply-demand situation of rice, domestic and international markets, import customers, prices, and rice trade forecasts, information on rice exports and consumption.

5. Proactively seek and expand rice export markets; guide members to actively conduct transactions, negotiate, and sign export contracts to enhance the effectiveness of rice exports.

6. Regularly report weekly, monthly, and quarterly to the Ministry of Finance, Ministry of Industry and Trade, Ministry of Agriculture and Rural Development, Government Office, People's Committees of provinces and centrally governed cities in the Mekong Delta region on fluctuations in the purchasing price of paddy and rice; export rice prices; stock levels of rice held by rice export traders.

7. Timely report to relevant ministries and sectors any issues arising within their assigned functions and tasks and propose measures to address them.

Article 25. Reporting Responsibilities of Traders

Traders engaged in rice export business have the responsibility to implement reporting systems as follows:

1. Report periodically on a quarterly and annual basis, and submit ad hoc reports as required by the Ministry of Industry and Trade, Ministry of Finance, Ministry of Agriculture and Rural Development, Vietnam Food Association, People's Committee, and Department of Industry and Trade of the province or centrally governed city where the trader has its main office and storage facilities, milling and husking establishments regarding the situation of purchasing paddy and rice, purchasing prices, temporary storage, reserves, signing and implementing rice export contracts. Periodic reports shall be made according to the model specified in Appendix VI issued together with this Decree.

2. Immediately report in writing to the Ministry of Industry and Trade and the Department of Industry and Trade of the province or centrally governed city when they fail to meet the requirements for storage facilities, milling and husking establishments as stipulated in Article 4 of this Decree, or when the Certificate issued has been lost, damaged, or destroyed and clearly state the reasons.

Chapter V

VIOLATIONS AND PENALTIES FOR VIOLATIONS

Article 26. Violations in Rice Export Business  

1. Falsely declaring actual storage facilities, milling and husking establishments or engaging in other fraud to obtain a Certificate.

2. Counterfeiting, erasing, or altering the Certificate.

3. Not implementing or not properly implementing directives and management decisions of competent authorities as prescribed in Article 15 of this Decree.

4. Speculating on paddy and rice to monopolize the market, causing instability in paddy and rice prices; forcing prices or engaging in other actions during the rice export business that cause damage to rice growers.

5. Failing to ensure the quantity of rice in compulsory circulation reserves as prescribed in Article 12 of this Decree.

6. Fraud in declaring export prices, available quantities of rice, or using other deceptive methods to secure contract registration for rice exports; failing to register rice export contracts as prescribed.

7. Counterfeiting documents or using other fraudulent methods to gain preferential treatment in contract registration for rice exports and allocation of centralized contract implementation.

8. Bidding, directly or indirectly participating in rice export contracts in markets with centralized export contracts contrary to regulations and directives from competent state authorities.

9. Reporting inaccurately or failing to comply with the reporting system prescribed in Article 25 of this Decree.

Article 27. Handling Violations in Rice Export Business

1. Organizations and individuals who commit violations in rice export business as prescribed in this Decree shall be subject to disciplinary action, administrative penalties, or criminal prosecution depending on the nature and severity of the violation; if damage is caused, compensation must be provided according to the provisions of the law.

2. Merchants engaging in rice export business who violate the provisions of this Decree, in addition to being subject to legal handling, may also be subject to the provisions of Clause 3 and Clause 4 of this Article or have their Certificate revoked as prescribed in Article 8 of this Decree.

3. Merchants committing any of the violations stipulated from Clause 6 to Clause 9 of Article 26 of this Decree shall be subject to the temporary suspension of registration for rice export contracts as follows:

a) In case of a first-time violation, the merchant shall be subject to a three-month suspension of registration for rice export contracts.

b) Within twelve months from the date of applying the three-month suspension of registration for rice export contracts, if the merchant continues to commit violations, they shall be subject to a six-month suspension of registration for rice export contracts, excluding the time previously suspended.

c) Within twelve months from the date of applying the six-month suspension of registration for rice export contracts, if the merchant continues to commit repeated violations, the Ministry of Industry and Trade shall consider and decide to revoke the merchant's Certificate.

4. In cases where merchants violate the provisions of this Decree, based on written recommendations from People's Committees, Provincial Departments of Industry and Trade, the Vietnam Food Association, or other agencies and organizations, the Ministry of Industry and Trade shall consider and apply measures to handle violations against merchants according to the provisions of this Decree and relevant laws.

Chapter VI

IMPLEMENTING PROVISIONS

Article 28. Transitional Provisions

1. Within nine months from the effective date of this Decree, merchants without a Certificate meeting the conditions for rice export business may continue to engage in rice export business.

As of October 1, 2011, merchants without a Certificate shall not be allowed to conduct rice export business.

2. Foreign-invested enterprises that were operating rice production and export before the effective date of this Decree may continue operations under previously issued licenses.

3. Within one year from the expiration of the transition period specified in Clause 1 of this Article, merchants may lease warehouses and milling facilities to meet the business conditions stipulated in Point b and c, Clause 1, and Clause 2 of Article 4 of this Decree.

The leasing of warehouses and milling facilities shall be specifically guided by the Ministry of Industry and Trade in collaboration with the Ministry of Agriculture and Rural Development.

Article 29. Effective Date

1. This Decree takes effect from January 1, 2011.

2. Abolish Clause 1 of Article 10 of Decree No. 12/2006/NĐ-CP dated January 23, 2006, of the Government detailing the implementation of the Law on Trade regarding international trade activities and related agency, purchase, sale, processing, and transit of goods with foreign countries, and previous guiding documents that conflict with the provisions of this Decree.

Article 30. Implementation organization and responsibility for enforcement

1. Based on specific responsibilities assigned in this Decree and other relevant laws, the Ministries of Industry and Trade, Finance, Agriculture and Rural Development, and the State Bank of Vietnam shall be responsible for guiding the implementation of this Decree.

2. The Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial People's Committees under the central government, and the Chairman of the Vietnam Food Association shall be responsible for enforcing this Decree./.