Circular No. 109/2013/TT-BTC guiding interest rate support for bank loans to purchase temporary storage rice and paddy from the Summer-Autumn crop in 2013

CIRCULAR

Guidelines on interest rate support for bank loans to purchase temporary storage rice and paddy for the 2013 Summer-Autumn crop

 to purchase temporary storage rice and paddy for the 2013 Summer-Autumn crop

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Pursuant to the Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decision No. 850/QĐ-TTg dated June 4, 2013 of the Prime Minister on temporarily storing rice and paddy from the Summer-Autumn crop in 2013;

Pursuant to document No. 1098/TTg-KTTH dated July 31, 2013 of the Prime Minister extending the deadline for temporarily storing rice and paddy from the Summer-Autumn crop in 2013;

After reaching consensus with the State Bank of Vietnam through Circular No. 5041/NHNN-TD dated July 12, 2013;

The Minister of Finance hereby issues this Circular amending and supplementing certain Articles of Circular No. 133/2015/TT-BTC dated August 31, 2015, issued by the Minister of Finance guiding the financial management mechanism for the Vietnam Chamber of Commerce and Industry (hereinafter referred to as Circular No. 133/2015/TT-BTC).

The Minister of Finance hereby issues this Circular to provide guidelines on interest rate support for bank loans to purchase temporary storage rice and paddy for the 2013 Summer-Autumn crop.

Article 1. Scope of Regulation and Applicability

Article 1. This Circular provides guidelines on the state budget's support for interest rates on bank loans for purchasing temporary storage rice and paddy for the 2013 Summer-Autumn crop for traders specified in Decision No. 850/QĐ-TTg dated June 4, 2013 of the Prime Minister regarding the purchase of temporary storage rice and paddy for the 2013 Summer-Autumn crop (hereinafter referred to as Decision No. 850/QĐ-TTg).

Article 2. This Circular applies to traders implementing the purchase of temporary storage rice and paddy for the 2013 Summer-Autumn crop assigned by the Vietnam Food Association according to Clause 4 of Decision No. 850/QĐ-TTg.

1. The state budget will provide 100% interest rate support on loans taken from commercial banks for traders falling within the scope defined in Article 1 of this Circular to purchase temporary storage rice and paddy from the winter-spring crop 2013-2014, in accordance with the Prime Minister's Directive as set forth in Decision No. 373a/QĐ-TTg.

1. The state budget will support 100% of the interest rate on loans from commercial banks for traders falling under the provisions of Article 1 of this Circular to purchase temporary storage rice and paddy for the 2013 Summer-Autumn crop as directed by the Prime Minister in Decision No. 850/QĐ-TTg.

2. Interest rate support for loans to purchase temporary storage rice and paddy shall only be provided for loans from commercial banks designated by the State Bank of Vietnam according to Clause 5 of Decision No. 850/QĐ-TTg of the Prime Minister.

Loans eligible for interest rate support are those repaid before and within the due date at the time of interest rate support, with no support provided for overdue loans.

4. The quantity of rice and paddy eligible for interest rate support for each trader is based on the actual quantity of rice and paddy purchased for temporary storage but shall not exceed the quantity stipulated in the allocation documents for the purchase of temporary storage rice and paddy for the 2013 Summer-Autumn crop issued by the Vietnam Food Association and must ensure that the total quantity of rice and paddy purchased for temporary storage does not exceed one million tons of milled rice as prescribed in Article 1 of Decision No. 850/QĐ-TTg.

5. The types of rice and paddy for temporary storage include common rice and paddy and fragrant rice and paddy.

6. The period for purchasing temporary storage is from June 15, 2013 to August 15, 2013.

7. The period during which interest rate support for bank loans is available is the actual temporary storage period from the date of purchasing rice and paddy as stipulated in Clause 6 of this Article until the date of selling temporarily stored rice and paddy but not exceeding September 15, 2013.

The basis for calculating the supported interest rate is the actual purchase price according to market prices (excluding value-added tax) for each type of rice and paddy.

The basis for determining the actual purchase price according to market prices is the purchase and sale contract, the settlement contract, the warehouse entry receipt, the purchase invoice, the payment transfer document, or other relevant documents presented by the trader.

In cases where traders purchase temporary storage paddy, it will be converted at a ratio of two (2) units of paddy to one (1) unit of rice.

In cases where traders purchase raw rice for processing into finished rice, conversion to quantity and price from raw rice to finished rice will not be allowed.

10. The interest subsidy from the state budget for the amount of rice and paddy purchased for temporary storage according to the Prime Minister’s directive shall be recorded as other income in the trader’s accounts and subject to corporate income tax according to current regulations.

Article 3. Documents and procedures for interest rate support on bank loans to purchase temporary storage rice and paddy

1. Documents for consideration of interest rate support on bank loans

a) A letter requesting state budget support for interest rates on bank loans for purchasing temporary storage rice and paddy (including full provision of the unit name, address, tax code, and account number for disbursement of the support funds).

Specifically, the request for support from the Northern Foodstuff Corporation and the Southern Foodstuff Corporation must consolidate the support requests of their affiliated units.

b) A certified copy of the Credit Contract and promissory note between the trader and the commercial bank where the trader borrowed money to purchase temporary storage rice and paddy for the 2013 Summer-Autumn crop as directed by the Prime Minister in Decision No. 850/QĐ-TTg.

c) An inventory sheet of purchases, sales, and stock of temporarily stored rice and paddy from the time the trader began purchasing until the end of the temporary storage period. The inventory sheet must be confirmed by the leader of the Department of Industry and Trade where the trader has the temporary storage warehouse according to Form No. 1 attached to this Circular.

In cases where the trader implements the purchase and temporary storage of rice and paddy in multiple locations, they must prepare an inventory sheet of purchases, sales, and stock of temporarily stored rice and paddy for each location with confirmation from the leader of the Department of Industry and Trade (where the trader has the temporary storage warehouse). Based on the inventory sheets confirmed by the Department of Industry and Trade, the trader prepares a consolidated inventory sheet of temporarily stored rice and paddy and is responsible for the accuracy of the aggregated data.

d) A loan balance sheet and interest payment statement for bank loans to purchase temporarily stored rice and paddy from the purchase date as stipulated in Clause 6 of Article 2 of this Circular until the sale date but not exceeding September 15, 2013 (the statement must be confirmed by the leader of the commercial bank where the trader borrowed funds according to Form No. 2 attached to this Circular).

đ) A calculation table of interest rates on bank loans to purchase temporarily stored rice and paddy requesting support (according to Form No. 3 issued together with this Circular).

2. Principles for receiving applications and disbursing support funds to traders

a) Within four months from the end of the temporary storage period, the Northern Food Corporation, the Southern Food Corporation, and other traders must submit directly or via postal service one set of application materials as prescribed in Clause 1 of Article 3 of this Circular to the Ministry of Finance (Department of Corporate Finance).

b) After receiving complete documents as prescribed, within fifteen working days, the Ministry of Finance will review the documents and process interest rate support for the traders.

If the trader fails to provide complete application materials or does not meet the conditions for interest rate support, the Ministry of Finance (Department of Corporate Finance) will issue a document requesting the trader to supplement the application materials according to regulations or notify the trader of the reasons for not being considered for interest rate support. In the document requesting supplementary materials, the Ministry of Finance must specify the specific timeframe for the trader to complete the application materials.

c) For the Northern Foodstuff Corporation and Southern Foodstuff Corporation

- The Ministry of Finance will receive the consolidated application materials of the Northern Food Corporation and the Southern Food Corporation (will not accept application materials from subsidiaries of these corporations). The review of application materials for interest rate support will be conducted once after the end of the temporary storage period and disbursed through the corporation's account.

- The Northern Food Corporation and the Southern Food Corporation will guide their subsidiaries to prepare application materials for bank loan interest rate support according to Clause 1 of Article 3 of this Circular and submit them to the Ministry of Finance. The corporation is responsible for the accuracy of the aggregated data.

After receiving the support funds from the Ministry of Finance transferred to the corporation's account, within five working days, the corporation will distribute the funds back to its subsidiaries.of Finance transfers to the corporation's account, within five working days, the corporation will distribute the funds back to its subsidiaries.

d) For other traders: The Ministry of Finance will accept the documents, review the documents for interest rate support after the end of the temporary storage period, and disburse the support funds through the trader's account.

Article 4. Responsibilities of organizations and state agencies related to supporting interest rates on bank loans for purchasing temporary storage rice and paddy

1. Responsibilities of organizations and state agencies related to supporting interest rates on bank loans for purchasing temporary storage rice and paddy

a) The People's Committee of provinces and centrally governed cities in the Mekong Delta shall direct the Department of Industry and Trade to inspect and confirm the inventory lists of rice imports, exports, and stockpiles temporarily stored at warehouses located within their province by traders assigned the task of temporary storage (including cases where the trader does not have a registered office in the province).

b) The Department of Industry and Trade of provinces and centrally governed cities in the Mekong Delta shall base on relevant files and documents presented by traders as stipulated in Clause 8, Article 2 of this Circular to check the quantity purchased, purchase unit price, purchase value, and stock quantity and stock value of rice during the temporary storage period; confirm in the inventory list of temporarily stored rice imported, exported, and stocked by the trader according to the form specified in Form No. 01 attached to this Circular, and at the same time bear responsibility for the accuracy of the confirmed data.

c) Commercial banks assigned by the State Bank of Vietnam to provide loans for temporary storage shall be responsible for confirming the loan balance and interest arising from the implementation of purchasing temporary storage rice in the Summer-Autumn season of 2013 for traders according to the form prescribed by the Ministry of Finance, and at the same time bear responsibility for the accuracy of the confirmed data.

d) Responsibilities of the Vietnam Foodstuff Association

- Notify the Ministry of Finance the list of traders who have been allocated purchase targets for temporarily stored rice by the Association for the Ministry of Finance to monitor as the basis for considering interest rate support for traders as prescribed.

- Notify the Department of Industry and Trade of provinces and centrally governed cities in the Mekong Delta the list of traders who have been allocated purchase targets for temporarily stored rice by the Association for the Department of Industry and Trade to have a basis to implement responsibilities as prescribed in Point c, Clause 1, Article 3 of this Circular.

- Inspect and supervise the organization of purchasing temporarily stored rice for traders in accordance with the provisions set out in Decision No. 850/QĐ-TTg.

2. Responsibilities of the Ministry of Finance

a) Check and appraise the file in accordance with the regulations stated in Article 3 of this Circular; implement the disbursement of funds to support interest rates on bank loans to purchase temporarily stored rice according to Decision No. 850/QĐ-TTg for traders, and at the same time bear responsibility for the accuracy of the appraisal data based on the file.

b) At the end of the temporary storage period, organize the inspection of the filing of the application for interest rate support on bank loans to purchase temporarily stored rice by traders; the accounting of the state budget funds provided for support as stipulated in Article 5 of this Circular.

3. Responsibilities of traders in purchasing temporarily stored rice and paddy

a) Implement the purchase of temporarily stored rice according to the directive of the Prime Minister in Decision No. 850/QĐ-TTg under the supervision of the Ministry of Agriculture and Rural Development, the Ministry of Industry and Trade, the People's Committees of provinces and centrally governed cities in the Mekong Delta, and the Vietnam Food Association.

b) Bear responsibility for the authenticity of the import, export, and stock records of temporarily stored rice and credit contracts for purchasing temporarily stored rice, and at the same time bear responsibility for the accuracy of the reported data in the application for interest rate support.

c) Retain purchase, export, and bank loan documents, and maintain separate accounting books for the purchase of temporarily stored rice according to the directive of the Prime Minister in Decision No. 850/QĐ-TTg.

d) Bear responsibility for the business effectiveness of purchasing temporarily stored rice and paddy.

đ) Bear legal responsibility if there is a violation of financial and accounting regulations in implementing the temporary storage of rice and paddy.

e) Must repay the state budget the amount of interest rate support funds that have been disbursed if state management agencies inspect and discover any violations.

Article 5. Organization of inspection of interest rate support for purchasing temporary storage

1. At the end of the temporary storage period, the Ministry of Finance shall conduct an inspection of the establishment of the interest rate support file to purchase paddy and rice for temporary storage by traders.

The inspection must notify the trader in writing before the inspection. Upon completion of the inspection, a Record of Inspection must be established, clearly stating the implementation status, existing issues, and proposed solutions.

2. Content of inspection

a) Check the accuracy and reasonableness of the application for interest rate support on bank loans to purchase temporarily stored rice in the Summer-Autumn season of 2013 prepared by the trader.

b) Inspect the trader's tracking and accounting of the interest subsidy funds from the state budget;

Article 6. Implementation Organization

1. The Director of the Finance and Planning Department is responsible for guiding and supervising the implementation of this Circular.

During the implementation process, if there are difficulties or obstacles, units are requested to promptly reflect them to the Ministry of Finance for guidance on handling./.