Circular No. 134/2010/TT-BTC guiding interest rate support for bank loans to purchase temporary storage rice during the summer-autumn season in 2010.

CIRCULAR

Guidelines for interest rate support on bank loans to purchase temporary storage rice and paddy for the winter-spring crop year 2012-2013

temporary storage of summer-autumn rice in 2010

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. 993/QĐ-TTg dated June 30, 2010 of the Prime Minister on the purchase of temporary storage of summer-autumn rice in 2010;

After reaching consensus with the Ministry of Agriculture and Rural Development, the Ministry of Industry and Trade, and the State Bank of Vietnam; the Ministry of Finance hereby guides the provision of interest rate support for loans from banks to purchase temporary storage of summer-autumn rice in 2010 as follows:

Article 1. Scope of Regulation and Applicability:

This Circular applies to enterprises engaged in food trade assigned the task of purchasing temporary storage of summer-autumn rice in 2010 according to the directive of the Prime Minister in Decision No. 993/QĐ-TTg dated June 30, 2010.

Article 2. Specific provisions:

1. The state budget will support 100% of the interest rate on loans taken from commercial banks by enterprises falling under the provisions of Article 1 of this Circular to purchase temporary storage of summer-autumn rice in 2010 as directed by the Prime Minister in Decision No. 993/QĐ-TTg dated June 30, 2010.

a) Quantity of rice eligible for interest rate support for each enterprise: based on the maximum quantity specified in the documents allocating purchase targets for temporary storage of summer-autumn rice in 2010 issued by the Vietnam Food Association.

b) Purchase period: from July 15, 2010 to September 15, 2010.

c) Storage period: the actual storage period within the timeframe from July 15, 2010 to November 15, 2010.

d) Period eligible for interest rate support: the actual storage period starting from the date of purchase of rice as stipulated in sub-clause b of this clause until the date of sale of temporarily stored rice but not exceeding November 15, 2010.

đ) Price for calculating support: the actual purchase price according to market prices (excluding value-added tax) for each type of rice. In cases where enterprises purchase raw rice to produce finished rice products, the price for calculating support includes production costs.

The basis for determining the actual purchase price according to market prices is the purchase-sale contract, settlement contract, purchase invoice, payment transfer documents, or other relevant documents presented by the enterprise.

e) Interest rate support: the actual interest rate on loans at the lowest level within the current lending interest rate range of commercial banks as guided by the State Bank of Vietnam in Circular No. 5126/NHNN-TD dated July 8, 2010 regarding loans for purchasing temporary storage of summer-autumn rice in 2010.

2. Documents for consideration of interest rate support for bank loans:

a) Enterprise's letter requesting state budget support for interest rates on bank loans for purchasing temporary storage of summer-autumn rice. For the Southern Food Corporation, the request must be consolidated from member enterprises under the corporation.

b) A copy of the credit agreement between the enterprise and the commercial bank, certified by the commercial bank where the enterprise borrows funds regarding the enterprise borrowing money from the bank to purchase temporary storage of summer-autumn rice in 2010 as directed by the Prime Minister in Decision No. 993/QĐ-TTg dated June 30, 2010.

c) Inventory record of purchased rice for temporary storage. The inventory record must be certified by the Department of Industry and Trade in the province where the enterprise has storage facilities (according to Form No. 1 attached to this Circular).

In cases where enterprises implement purchases and temporary storage of rice in multiple locations, enterprises shall prepare inventory records of purchased rice for temporary storage by location, certified by the Department of Industry and Trade (in the province where the enterprise has storage facilities). Based on the certified inventory records from local Departments of Industry and Trade, enterprises shall compile a comprehensive inventory record of temporarily stored rice and bear responsibility for the accuracy of the compiled data.

d) Record of loan balance from the bank to purchase temporarily stored rice and interest payments arising from the purchase date to the sale date but not exceeding November 15, 2010, certified by the commercial bank where the enterprise borrows funds (according to Form No. 2 attached to this Circular).

đ) Calculation table of interest rate on bank loans for purchasing temporarily stored rice requesting support (according to Form No. 3 attached to this Circular).

Upon receipt of all required documents as prescribed above, the Ministry of Finance will review the documents and process interest rate support for enterprises within ten working days.

3. Principles for receiving documents and disbursing support funds to enterprises:

a) For the Southern Food Corporation:

- The Ministry of Finance will receive the consolidated set of documents from the Southern Food Corporation (will not accept individual documents from member enterprises under the corporation). The review of interest rate support applications will be conducted once after the end of the storage period, and funds will be disbursed through the corporation's account.

- The Southern Food Corporation will guide member enterprises in preparing interest rate support application documents and consolidating them according to Article 2, Clause 2 of this Circular to submit to the Ministry of Finance. The corporation must be responsible for the accuracy of the consolidated data.

Upon receipt of the support funds from the Ministry of Finance credited to the corporation's account, within five working days, the corporation will disburse the funds back to its member enterprises.

b) For other enterprises: The Ministry of Finance will receive documents, review, and provide support funds through the enterprise's account.

4. Responsibilities of Ministries, sectors, and the Vietnam Food Association in implementing the purchase of temporarily stored rice:

a) People's Committees of provinces in the Mekong Delta region will coordinate with the Ministry of Industry and Trade, the Ministry of Agriculture and Rural Development, and the Vietnam Food Association to supervise to ensure that the purchase of temporarily stored rice and the provision of interest rate support are carried out in accordance with the directives of the Prime Minister.

b) People's Committees of provinces in the Mekong Delta region will instruct the Department of Industry and Trade to inspect and certify inventory records of temporarily stored rice at warehouses located in their respective provinces of enterprises assigned the task of temporary storage (including cases where enterprises do not have headquarters in the province).

c) The Vietnam Food Association is responsible for allocating quotas and supervising the organization's purchase of temporary rice reserves for enterprises according to the principles set out in Decision No. 993/QĐ-TTg dated June 30, 2010 of the Prime Minister, Circular No. 160/BCT-XNK dated July 13, 2010, and Circular No. 7307/BCT-XNK dated July 21, 2010 of the Ministry of Industry and Trade.

5. Responsibilities of enterprises implementing the purchase of temporary rice reserves:

a) Implement the purchase of temporary rice reserves according to the directives of the Prime Minister in Decision No. 993/QĐ-TTg dated June 30, 2010, under the supervision of the Ministry of Agriculture and Rural Development, the Ministry of Industry and Trade, People's Committees of the Mekong Delta provinces, and the Vietnam Food Association.

b) Be responsible for the authenticity of the import, export, inventory of temporary rice reserves, and credit contracts for purchasing temporary rice reserves, and be responsible for the accuracy of the data reported in the application for interest rate support.

c) Maintain records, certificates of import, export, bank loans, and keep separate ledgers to track the purchase of temporary rice reserves according to the directives of the Prime Minister in Decision No. 993/QĐ-TTg dated June 30, 2010.

d) Be responsible for the business effectiveness of purchasing temporary rice reserves.

đ) Be liable under the law if they violate financial and accounting regulations in implementing temporary rice reserves.

6. Accounting for the support:

The interest subsidy from the state budget for the amount of rice purchased as temporary reserves according to the directives of the Prime Minister shall be accounted for as other income and subject to corporate income tax in accordance with current regulations.

Article 3. Implementation Organization:

This Circular takes effect from June 30, 2010.

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./.