Joint Circular No. 11/1998/TTLT/BTM-UBDTMN-BTC-BKHDT guiding the implementation of Decree No. 20/1998/NĐ-CP

JOINT CIRCULAR

Guidelines for Implementing Decree No. 20/1998/NĐ-CP

Pursuant to Decree No. 20/1998/NĐ-CP dated March 31, 1998 of the Government on "Developing Trade in Mountainous Areas, Islands, and Ethnic Minority Regions," the Ministry of Trade and the Committee for Ethnic Minorities and Mountainous Regions - Finance - Planning and Investment provide guidance on certain aspects concerning: construction of markets and state-owned trading stores; price subsidies and freight subsidies; state enterprises engaged in trade in mountainous areas, islands, and ethnic minority regions; management of reserve funds for policy items as follows:

I. Scope and Objects Regulated.

1. The following areas fall within the scope regulated by Decree No. 20/1998/NĐ-CP:

1.1. Mountainous Areas: including highland provinces, provinces with mountainous districts, and provinces with mountainous communes, as defined by the Committee for Ethnic Minorities and Mountainous Regions in Decision No. 21/UB-QĐ dated January 4, 1993, Decision No. 33/UB-QĐ dated June 4, 1993, Decision No. 08/UB-QĐ dated March 4, 1994, Decision No. 64/UB-QĐ dated August 26, 1995, and Decision No. 68/UB-QĐ dated September 6, 1997 recognizing communes, districts, and provinces as mountainous and highland areas.

1.2. Islands: as defined by the Committee for Ethnic Minorities and Mountainous Regions.

1.3. Ethnic Minority Regions: the Committee for Ethnic Minorities and Mountainous Regions shall provide guidance accordingly.

1.4. Mountainous, Island, and Ethnic Minority Regions: Based on the level of development in each region, according to three zones (I, II, III) of mountainous, island, and ethnic minority regions as defined in Decision No. 42/UB-QĐ dated March 25, 1997 and Decision No. 21/1998/QĐ-UBDTMN dated February 25, 1998 recognizing the three zones.

In cases where there is a change in the area and zone, it shall be applied in accordance with the regulations of the Committee for Ethnic Minorities and Mountainous Regions.

2. Eligibility:

2.1. Recipients of policies for selling subsidized goods: residents and those engaged in activities (including civil servants, employees, cadres, and soldiers in the armed forces) in the areas specified in Section I.1 of this Circular.

2.2. Recipients of policies for freight subsidies for product consumption: traders engaged in commerce in the areas specified in Section I.1 of this Circular, consuming products (listed in the product catalog determined by the Prime Minister) produced by ethnic minorities in these regions.

2.3. Traders: Any business subject (individuals or legal entities) regardless of economic sector (state economy, cooperative economy, state capitalist economy, foreign-invested enterprises operating under the Law on Foreign Investment in Vietnam, individual economy, private capitalist economy) that has registered for business and engages in one or more commercial acts such as buying and selling goods, providing commercial services, and promoting trade in mountainous, island, and ethnic minority regions with the aim of profit are traders subject to the regulation of Decree No. 20/1998/NĐ-CP.

The following commercial activities of traders also fall within the scope of regulation of Decree No. 20/1998/NĐ-CP:

- Traders whose main office and business registration are not in mountainous, island, and ethnic minority regions, but their commercial activities take place in each zone (I, II, III) in mountainous, island, and ethnic minority regions.

- Traders whose main office and business registration are in one of the zones (I, II, III), but their commercial activities take place in other zones in mountainous, island, and ethnic minority regions.

Traders are eligible for preferential policies when they have invoices, accounting books clearly showing business results in each zone and have registered with relevant agencies (taxes, banks, land administration...).

II. Construction of Markets, State-Owned Trading Stores, or Cooperative Trading Service Stores at the Center of Commune Clusters in Each Zone.

1. For Zone III: Markets and trading stores or cooperative trading service stores under the program to build commune cluster centers in mountainous and highland areas according to Decision No. 35/TTg dated January 13, 1997 of the Prime Minister shall follow the procedures and sources of funding for construction as follows:

- The main investment capital comes from the state budget (central budget, local budget, and international organizations' financial assistance). Additionally, encouragement is given to organizations and individuals voluntarily contributing capital for production and business expansion, increasing commodity exchange, and mobilizing public welfare labor as stipulated by law.

- The Department of Trade bases its planning for constructing commune cluster centers in Zone III (highland, border, and particularly difficult ethnic minority areas) of the province, coordinating with relevant departments to prepare annual plans submitted to the Department of Planning and Investment for consolidation and submission to the Provincial People's Council.

- When each project to construct a commune cluster center is included in the investment plan, the project leader is responsible for prioritizing investment capital for building markets, state-owned trading stores, or cooperative trading service stores in the first phase of each project, notifying the Department of Trade and relevant departments to coordinate implementation.

2. For Zone II: Markets and trading stores or cooperative trading service stores not included in the program to build commune cluster centers according to Decision No. 35/TTg dated January 13, 1997 of the Prime Minister, the Chairman of the Provincial People's Council shall consider the following conditions to decide on investment from the local budget for construction at an appropriate scale:

- The market and store must be located in the overall plan for constructing commune cluster centers of the province approved.

- There is an urgent need to form a market to stabilize people's lives, promote economic restructuring in the sub-region, develop commodity production to enhance commodity circulation and cultural life among communes in the sub-region and between the sub-region and other regions.

The Department of Trade, based on specific circumstances, coordinates with relevant sectors to prepare annual plans reported to the Provincial People's Council for approval and inclusion in the investment budget. Based on the approved project, the Chairman of the People's Council decides on the investor to construct markets, state-owned trading stores, or cooperative trading service stores.

3. For Zone I: Markets and commercial stores in cities, towns, and market towns, and along provincial and district interconnection traffic routes: In this area, there are relatively convenient transportation roads, and economic and social development has reached a certain level, so the investment capital for construction must follow the principle "State and business operators jointly contribute":

- The State will support part of the budget for infrastructure construction of the market such as leveling the ground, electricity, water supply and drainage, sanitation systems...

- Business operators contribute capital to build architectural structures for selling goods: kiosks, sales counters, market pavilions, and are allowed to use the trading area within the market according to the terms of the capital contribution contract between the business operator and the market management agency.

- Mobilize medium- or long-term credit funds with preferential interest rates (including the National Investment Support Fund).

- Encourage investment through the Build-Operate-Transfer (BOT) contract form in accordance with Circular No. 12/BKH-QLKT dated August 27, 1997, issued by the Ministry of Planning and Investment.

The Department of Commerce bases its planning for market development and builds projects for developing each type of market in this zone, submitting them to the Provincial People's Committee for consideration and decision.

4. The Department of Commerce performs specialized management functions over market activities in accordance with Circular No. 15-TM/CSTTTN dated October 16, 1996, issued by the Ministry of Commerce. Administrative management of markets is carried out in accordance with the provisions on market management levels set forth in Section II of Circular No. 15/TM-CSTNTN dated October 16, 1996, issued by the Ministry of Commerce.

III. Subsidizing prices and transportation costs for selling social policy goods, purchasing some products produced in mountainous areas, islands, and ethnic minority regions.

1. The subjects specified in Item I.2.1 may purchase at the commune cluster center (for subsidized price and transportation cost goods up to the commune cluster center) or at the district center (for transportation cost goods up to the district center) as stipulated in Decree No. 20/1998/NĐ-CP dated March 31, 1998, at prices equivalent to those of similar goods sold in city districts and provincial capitals, meeting quality standards, prioritizing Zone III and difficult areas in Zone II.

For provinces with only mountainous communes (provinces without mountainous districts), only price subsidies and transportation cost subsidies for iodized salt, crop seeds; transportation cost subsidies for goods such as kerosene, student writing paper, medicine; transportation cost subsidies from the commune cluster center to the provincial city center to purchase certain products produced in these communes (as specified by the Prime Minister) shall be implemented.

2. Goods eligible for price and transportation cost subsidies for sale, distance for transportation cost subsidies, principles for determining retail prices and subsidy rates for price and transportation costs are prescribed in Articles 12, 14, and 16 of Decree No. 20/1998/NĐ-CP dated March 31, 1998, issued by the Government, and the circular guiding the implementation of Decree No. 20/1998/NĐ-CP issued by the Government Price Board.

3. Goods eligible for transportation cost subsidies for purchasing products produced by ethnic minorities in mountainous areas, islands, and ethnic minority regions: The People's Committee of the province directs relevant departments to select products based on the principles stipulated in Clause 1, Article 24 of Decree No. 20/1998/NĐ-CP dated March 31, 1998, issued by the Government, and submit them to the Ethnic Minorities Commission and the Ministry of Commerce for consolidation.

The Ethnic Minorities Commission and Mountainous Areas Commission take the lead in coordinating with the Ministry of Commerce, the Ministry of Agriculture and Rural Development, and other relevant ministries to consolidate reports from the provincial people's committees and submit them to the Prime Minister for approval of the list of products eligible for transportation cost subsidies during specific periods.

4. Quantities of goods supplied to calculate the subsidy for price and transportation costs:

4.1. Iodized salt: 5 kg/person/year

4.2. Kerosene: 3 liters/person/year

4.3. Student writing paper (or notebooks): 1.5 kg/student/year (equivalent to 12 ruled notebooks or an equivalent amount of student notebooks)

4.4. Medicine: 10,000 VND/person/year. According to a specific list prescribed by the Ministry of Health.

4.5. Fertilizer: 100 kg/1 hectare of cultivated land/year, including organic microbial fertilizers produced locally.

4.6. Pesticides: 0.12 kg/hectare of cultivated land/year. According to a list prescribed by the Ministry of Agriculture and Rural Development.

4.7. Crop seeds: high-yield, high-quality varieties suitable for soil and climate conditions, implemented in concentrated commodity crop development zones; prioritizing Zone III, including food crop seeds, industrial crop seeds (short or long-term), fruit tree seeds, medicinal plant seeds.

The price and transportation cost subsidy rate for this item is calculated based on rice seed as a reference:

+ Area using new seeds equals 5% of the paddy field area.

+ Seed quantity per hectare: pure rice seed = 160 kg/hectare.

+ Price and transportation cost subsidy per kilogram: following the guidance of the Government Price Board.

Provincial seed planting budget = (rice planting area x 5%) x (160 kg/hectare x price and transportation cost subsidy rate).

Annually, the provincial people's committee bases on local crop planting plans, allocated budgets, and Government Price Board guidelines, decides specifically for each type of seed and informs the Ministry of Agriculture and Rural Development and the Ministry of Finance when implementing.

4.8. Coal (including coal from mines managed and exploited by localities): Annually, based on budget capacity and proposals from each locality, the Ethnic Minorities Commission and Mountainous Areas Commission coordinate with relevant ministries to allocate quantities and budgets to localities. The Chairman of the Provincial People's Committee determines specifically the usage targets based on the allocated quantities and budgets (prioritizing construction materials production needs, agricultural and forestry product processing, daily fuel needs of the population...).

4.9. Publishing books: including

- Political, social, legal, and general economic books.

- Books popularizing science and technology and enhancing knowledge.

- Traditional literature of ethnic groups in Vietnam.

- Children's books (including those provided by the state free of charge).

- Books in languages of ethnic minorities.

- Cultural products serving the spiritual life of ethnic minorities in mountainous areas, islands, and ethnic regions, including: tapes, flags, slogans, portraits of leaders, folk paintings, and general calendars.

Annually, the Ministry of Culture and Information coordinates with the Ethnic Minorities Commission and Mountainous Areas Commission and the Ministry of Finance to determine the number of publications above, suitable for the requirements of each locality and the state budget capacity.

4.10. Periodically, based on the consumption needs of the people, the budget capacity, and the progressive technical development requirements of production, the Committee for Ethnic Minorities will coordinate with relevant Ministries and sectors to adjust the supply quotas to be consistent with actual conditions.

5. Establish plans, allocate targets, and adjust the structure to harmonize funding.

5.1. Plan formulation and target allocation.

a. The basis for developing the subsidized price and freight subsidy plan proposal:

- The supply quota specified in Section III.4 of this Circular

- The population living and operating in the designated area as stipulated in Section I.1 of this Circular, according to the statistics published by the General Statistics Office (or the Provincial Statistics Office) of the previous year and the actual annual average population growth rate of the province to calculate for the planning year.

- The cultivated land area, including paddy fields, horticultural crops, short-term and long-term industrial crops, based on the statistics published by the General Statistics Office (or the Provincial or Municipal Statistics Office) of the previous year to calculate for the planning year.

- Freight subsidies for transporting products consumed by ethnic minorities in mountainous and island areas produced by ethnic groups shall be based on the product list decided by the Prime Minister, the freight subsidy rates, and the transport distance "from the center of the commune cluster to the nearest city or provincial capital in the plains" as prescribed in the Circular guiding the implementation of Decree No. 20/1998/NĐ-CP issued by the Government Price Board.

b. Develop the plan proposal.

- Based on the factors specified in point a, Section 5.1 above, each year, the People's Committee of the province shall direct related sectors to develop the subsidized price and freight subsidy plan proposal to be submitted to the Committee for Ethnic Minorities and Mountainous Areas, the Ministry of Planning and Investment, the Ministry of Finance, and the Ministry of Trade before August 1st.

- Based on the plan proposals from the provinces, the Committee for Ethnic Minorities and Mountainous Areas shall take the lead in coordinating with the Ministry of Trade and other relevant ministries and sectors to determine the quantity of each item for each locality as the basis for determining the subsidized price and freight subsidy funding to be reported to the Ministry of Planning and Investment and the Ministry of Finance for consolidation and reporting to the Government for submission to the Standing Committee of the National Assembly.

- Based on the state budget estimate allocated by the Government for the subsidized price and freight subsidy objectives, the planned quantities of items already determined, and the subsidized price and freight subsidy unit prices as prescribed by the Government Price Board, the Committee for Ethnic Minorities and Mountainous Areas shall coordinate with the Ministry of Finance and other relevant ministries and sectors to allocate the freight subsidy and price subsidy funding for each item and each province (prioritizing areas with many difficulties).

- The Ministry of Planning and Investment shall notify the targets regarding the quantity and freight subsidy and price subsidy funding for localities and ministries (if applicable) before December 31st. The Ministry of Finance shall provide the funding through the "delegated funding" method according to the progress of implementation.

5.2. Funding allocation:

a. For iodized salt: It is included in the national program to prevent disorders caused by iodine deficiency, the Ministry of Health shall take the lead in coordinating with the Ministry of Finance and other relevant ministries to allocate funding and quantities for each province.

The funding for subsidizing the price and freight of iodized salt shall be managed by the national program to prevent disorders caused by iodine deficiency and implemented as follows:

- For the amount of iodized salt that the locality organizes production to consume within its territory, the price subsidy funding (iodine mixing cost, PE bag cost) and freight subsidy for transporting white salt from the purchase location (as per the regulations of the Ministry of Trade and the Government Price Board) to the iodized salt production factory and from the production location to the commune cluster shall be directly provided to the People's Committee of the province through the delegated funding method.

- For the amount of iodized salt supplied by central enterprises to localities for sale to the public, the freight subsidy for transporting from the district center to the commune cluster center shall be directly provided to the People's Committee of the province through the delegated funding method; the funding for mixing iodized salt (iodine mixing cost, small PE bag cost for packaging iodized salt) and the freight subsidy for transporting to the district center shall be directly provided to the central enterprise responsible for this task.

b. For items such as firewood oil, student writing paper, book distribution, medicine, fertilizer, insecticide, crop seeds, and coal mining, and the funding for freight subsidies to consume agricultural and forestry products shall be directly provided to the People's Committee of the province through the delegated funding method.

5.3. Adjust the structure and harmonize the funding for subsidized prices and freight subsidies for sold goods.

a. Based on the total quantity and funding allocated for each item, the People's Committee of the province shall formulate an implementation plan for each item, including the corresponding quantity, funding, and implementation schedule. First, ensure sufficient funding for subsidized prices and freight subsidies for items such as iodized salt, student writing paper, book distribution, and medicine according to the specified quantities; the remaining funding may be adjusted among items or regions (I, II, III) in accordance with the actual needs of the locality.

Based on the above plan, the People's Committee of the province shall prepare the budget expenditure plan for subsidized price and freight subsidy funding, divided by quarter, to report to the Committee for Ethnic Minorities and Mountainous Areas and the Ministry of Finance for monitoring and providing funding.

b. For particularly difficult areas (Region III), where the people lack the ability to purchase goods, the Chairman of the People's Committee of the province shall base on the allocated funding for subsidized prices and freight subsidies for the year and the provincial budget, consider and decide on the provision of free goods or some goods: iodized salt, medicine, student writing paper, following the principle below:

- The recipients of free goods: Only households classified as destitute or extremely poor in Region III, who truly have no money to buy goods, as selected and proposed by the Commune People's Committee (not providing free goods to all households in the commune at once), paying attention to policy households in the region.

- Ensuring ethnic unity, stabilizing livelihoods, promoting production development, and paying attention to the relationship between households receiving free goods and other households in the village, between neighboring villages, and between regions to create a spirit of enthusiasm and unity.

- The cost of goods provided free of charge shall not exceed the retail price of similar goods subsidized for price and freight on the same date in the same area.

- In the area under consideration for free issuance, the Provincial People's Committee prioritizes integrating socio-economic development projects (such as poverty alleviation, afforestation...) to gradually guide ethnic groups towards economic development, thereby enabling them to purchase goods on their own within one or two years.

6 - Identify enterprises responsible for purchasing and selling subsidized goods and services: To address the current scattered and fragmented situation, it must be consistent with purchasing power and market capacity, as well as business scale at the grassroots level (districts, town centers, commune clusters); the Provincial People's Committee will base its decision on the characteristics of each area to apply either tendering procedures or select enterprises that meet the conditions regarding network, infrastructure, staff, etc., to assign tasks related to the purchase and sale of subsidized goods and services (excluding medicine) to facilitate convenient and reasonable pricing and quality assurance for the people, while also ensuring effective management and cost savings in circulation.

IV||| State-owned enterprises engaged in commerce in mountainous areas, islands, and regions inhabited by ethnic minorities.

1. Expand the state commercial network in mountainous areas, islands, and regions inhabited by ethnic minorities to have sufficient strength to dominate and control the market in selling social policy goods, production materials, and purchasing important products produced by local communities, especially in remote highland areas and particularly difficult ethnic minority regions.

State commerce must have stores in the center of commune clusters. Through this, organize appropriate forms to select and utilize cooperative trade service organizations, state economic organizations (enterprises, forestry farms...), schools, health stations, teacher teams, and trusted individuals in villages to form a network within commune clusters and between commune clusters and other regions.

Through agency, consignment trading activities, commercial advertising, trade exhibitions... build connections between state-owned enterprises (at central, local, and regional levels), and among different economic sectors according to the principle of mutual benefit to create a smooth system of channels from production to consumption, and between upland and lowland regions.

The Department of Commerce shall take the lead and coordinate with the Department of Planning and Investment and relevant departments in the province to develop plans for the development of the commercial network (including markets, state commercial stores, cooperative trade service organizations, non-state commercial entities...) suitable for the socio-economic conditions in the region, linking commercial activities with residential planning and production zones, gradually covering areas without commercial networks. Based on these plans, the Department of Commerce shall prepare annual plans and submit them to the Provincial People's Committee for review and decision.

The Ministry of Commerce shall cooperate with the Ministry of Planning and Investment and relevant ministries and agencies together with localities to organize surveys and research to summarize models of enterprise organization engaged in commerce in mountainous areas, islands, and regions inhabited by ethnic minorities (county companies, provincial companies - county stores, regional companies...), guiding localities to reorganize state-owned commercial enterprises in their jurisdictions.

2. State-owned commercial enterprises operating for public welfare are defined according to the provisions of Clause 2, Article 2 of Decree No. 56/CP dated October 12, 1996 of the Government on "State-Owned Enterprises Operating for Public Welfare," and implemented through Circular No. 1-BKH/DN dated January 29, 1997 of the Ministry of Planning and Investment, and Circular No. 6-TC/TCDN dated February 24, 1997 of the Ministry of Finance.

State-owned commercial enterprises operating in mountainous areas, islands, and regions inhabited by ethnic minorities that meet the following conditions may convert to public welfare enterprises if there is a need:

- The enterprise mainly operates in Zone III of mountainous areas, islands, and regions inhabited by ethnic minorities.

- At least 70% of revenue comes from production or sales of goods, and consumption of products produced in mountainous areas, islands, and regions inhabited by ethnic minorities according to government price and freight subsidies.

The Department of Commerce shall take the lead and coordinate with the Department of Planning and Investment to examine enterprises meeting the conditions, draft plans, and submit them to the Provincial People's Committee for decision, following the procedures for establishing public welfare enterprises.

3. Working capital of state-owned commercial enterprises in mountainous areas, islands, and ethnic minority regions.

3.1. The Department of Commerce shall take the lead and coordinate with the State Capital and Asset Management Agency at Enterprises (hereinafter referred to as the State Capital and Asset Management Agency), and the Department of Finance to guide enterprises with headquarters and registered operations in the jurisdiction to determine the amount of working capital currently being used, including budget funds allocated, self-supplemented funds from the budget, bank loans, and contributions from employees in the enterprise (if any), as a basis for finding solutions.

3.2. The reasonable working capital needs of state-owned commercial enterprises in mountainous areas, islands, and regions inhabited by ethnic minorities are determined based on:

- The production and business tasks assigned to the enterprise in the Decision on Enterprise Establishment, reflected in recent business results (revenue) over the past 2 to 3 years.

- The actual working capital (including both owned and borrowed funds) that the enterprise has used in the past 2 to 3 years.

- Specific business conditions such as roadways and transportation distances, weather and climate affecting circulation processes, seasonal nature of production and consumption, banking payment and credit service conditions, local customs and production and consumption needs of the people, and other factors influencing the speed of working capital turnover.

- Requirements for essential goods reserves, particularly those under social policy goods categories, according to the standards specified in Section V.2 of this Circular.

State-owned commercial enterprises shall prepare plans on reasonable working capital needs and report to the Department of Commerce, the State Capital and Asset Management Agency, and the Department of Finance.

3.3. Based on the report plan of the enterprise, the Department of Commerce shall take the lead and coordinate with the General Department of Customs and Excise, the Department of Finance to appraise the reasonable working capital needs, report to the Ministry of Finance and the Ministry of Trade, and submit for consideration by the Provincial People's Committee to supplement from the central budget under the form of authorized expenditure for the "investment development expenditure" item (sub-item b, Clause 2, Article 31 of the State Budget Law) ensuring 50% of the reasonable working capital needs for the enterprise.

Annually, when preparing the budget, the Department of Finance shall base on the local government revenue capacity (including supplements from the central budget) and the working capital situation of enterprises to allocate the "support capital for state-owned enterprises" expenditure item, submit for consideration by the Provincial People's Committee, and report to the Ministry of Finance.

3.4. Based on the reasonable working capital needs of state-owned trading enterprises operating in mountainous areas, islands, and ethnic minority regions reported by the Provincial People's Committee, the Ministry of Finance shall coordinate with the Ministry of Trade to compile and submit for approval by the Prime Minister to supplement from the central budget for the provincial budget the "support capital for state-owned enterprises engaged in trade in mountainous areas, islands, and ethnic minority regions." Upon approval by the Prime Minister, the Ministry of Finance shall notify the Provincial People's Committee to implement under the form of authorized expenditure.

V. Management of policy commodity reserve funds in mountainous areas, islands, and ethnic minority regions.

1. Goods subsidized for price and transportation costs to be sold in mountainous areas, islands, and ethnic minority regions include:

(1) Salt: including regular salt (for iodine mixing) and finished iodized salt. (2) Lighting fuel oil.

(3) Student writing paper.

(4) Medicines for treatment (specific list according to the regulations of the Ministry of Health).

Depending on the specific circumstances of each locality, the Provincial People's Committee may supplement essential commodities that must be reserved in particularly difficult areas (Zone III).

2. State-owned trading enterprises responsible for supplying the policy commodities specified in Point 1 shall be provided with sufficient reserve funds from the provincial budget. The amount of funds provided (after deducting the portion of working capital already supplemented) shall meet the circulation reserve requirements for policy commodities, equivalent to the consumption demand for such commodities of the population within the service area for an average period of 2 to 3 months. Depending on the situation in each region, the Provincial People's Committee shall specify the appropriate reserve period based on local conditions.

3. Enterprises provided with funds shall be responsible for using these funds to establish circulation reserves for policy commodities. Organizing circulation reserves must meet the requirements for each commodity, in each area, and at each time point. Enterprises can proactively organize circulation reserves in accordance with the specific conditions of each regional area (I, II, III) and the characteristics of the goods and consumption demands.

At times such as the rainy season, floods, Tet holidays, and festivals, and in areas with particularly difficult transportation, the actual demand requires higher levels of commodity reserves than the average reserve level. Enterprises have the responsibility to mobilize other sources of funds (credit capital or self-owned working capital) to establish reserves. Outside of these times and areas, enterprises may temporarily use part of the reserve funds for other merchandise trading and must promptly return them to ensure policy commodity reserves, guaranteeing adequate supply to meet the people's needs.

4. The Provincial People's Committee shall specify the quantity of goods and corresponding funds for each commodity reserve in each region (I, II, III), the reserve periods, and the mobilization of policy commodity reserve funds for business needs during suitable periods.

5. Enterprises are exempt from revenue generated from the use of reserve funds for policy commodities in mountainous areas.

6. Policy commodity reserve funds shall be managed like working capital and preserved according to the provisions of the Financial Management and Business Accounting Regulations for State-Owned Enterprises issued by the Government Decree No. 59/CP dated October 3, 1996, and the Circular guiding implementation No. 75/TC/TCDN dated November 12, 1996, of the Ministry of Finance.

Every six months, enterprises provided with reserve funds must report to the General Department of Customs and Excise and the Department of Commerce on the use of policy commodity reserve funds. The General Department of Customs and Excise shall compile and report to the Provincial People's Committee and the Ministry of Finance.

VI. Implementation.

1. The Committee for Ethnic Minorities and Mountainous Areas shall take the lead in organizing coordination among relevant ministries and departments and the Provincial People's Committees in implementing annual price and freight subsidy policies, reporting results to the Prime Minister. They shall continuously monitor, guide, and organize inspections and supervision of the implementation of price and freight subsidy policies by localities, ministries, and enterprises using such funds. Promptly identify and resolve difficulties and report recommendations to the Government for necessary measures to ensure the correct implementation of policies and management systems, truly enhancing the effectiveness of policies in stabilizing people's lives and markets, promoting economic restructuring, and developing commodity production.

2. The Ministry of Planning and Investment and the Ministry of Finance shall allocate from the central budget in their annual plans: the subsidy fund for prices and freight according to the objectives of Government Decree No. 20/1998/NĐ-CP dated March 31, 1998, and the "support capital for state-owned enterprises engaged in trade in mountainous areas, islands, and ethnic minority regions" expenditure item, submit for approval by the Government. Based on the approved indicators, the plan of the Committee for Ethnic Minorities and Mountainous Areas, and the allocation plans of relevant ministries and departments (after consensus), they shall notify and guide the Provincial People's Committees to organize implementation; coordinate with the Committee for Ethnic Minorities and Mountainous Areas, relevant ministries and departments, and the Provincial People's Committees to continuously monitor, organize inspections and supervision of the implementation of trade development policies in mountainous areas, islands, and ethnic minority regions in accordance with objectives and current management systems.

3. The Ministry of Commerce shall guide localities in utilizing economic components to participate in commercial activities aimed at expanding markets, organizing commodity exchanges among regions; ensuring that people in various areas can purchase essential goods for production and daily life, sell their products more conveniently without having to travel too far or pay excessively high prices compared to downstream regions. Coordinate with the Committee for Ethnic Minorities and Mountainous Areas, relevant ministries and sectors, and provincial People's Committees to monitor and resolve difficulties and obstacles in implementing policies on freight subsidies, price subsidies, and policies for traders operating in these regions.

4. Provincial People's Committees: shall be responsible for directing, organizing the implementation, and periodically or urgently inspecting the implementation of policies for mountainous, island, and ethnic minority commerce; ensuring that people living and operating in these areas truly benefit from such policies, thereby promoting economic and social development. Timely identify and address difficulties and obstacles during the implementation process, and propose solutions to the Government and relevant ministries and sectors.

5. This Circular shall take effect according to the effectiveness of Decree No. 20/1998/NĐ-CP dated March 31, 1998. Specifically, Sections III.4 and III.5.2 of this Circular shall take effect from January 1, 1999. All Inter-Ministerial Circulars or Circulars issued by the Ministries of Commerce, Finance, Planning and Investment, and the Committee for Ethnic Minorities and Mountainous Areas that conflict with this Circular are hereby abolished.

During implementation, if there are difficulties or obstacles, relevant ministries, sectors, provincial People's Committees, and enterprises are requested to promptly report them to the Inter-Ministry for study and supplementary guidance.