Circular No. 139/2012/TT-BTC guiding interest rate support for loans from banks to purchase temporary storage rice and paddy for the Summer-Autumn crop year 2012

CIRCULAR

|||Guidance on interest rate support for bank loans to purchase temporary storage rice, paddy from the Summer-Autumn crop in 2012

temporary storage of paddy, rice from the Summer-Autumn crop in 2012

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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. 812/QĐ-TTg dated July 2, 2012 of the Prime Minister on purchasing temporary storage rice, paddy from the Summer-Autumn crop in 2012;

After reaching consensus with the State Bank of Vietnam through Circular No. 4373/NHNN-TD dated July 19, 2012;

3. Domestic and foreign organizations and individuals meeting the conditions to provide dredging and maintenance services for maritime channels according to the law.

The Minister of Finance issues this Circular guiding the provision of interest rate support for bank loans to purchase temporary storage rice, paddy from the Summer-Autumn crop in 2012.

Article 1. Scope of Regulation and Applicability

Article 1. This Circular guides the provision of interest rate support for bank loans to purchase temporary storage rice, paddy from the Summer-Autumn crop in 2012 by the state budget for traders specified in Decision No. 812/QĐ-TTg dated July 2, 2012 of the Prime Minister on purchasing temporary storage rice, paddy from the Summer-Autumn crop in 2012.

Article 2. This Circular applies to traders implementing the purchase of temporary storage rice, paddy from the Summer-Autumn crop in 2012 assigned by the Vietnam Food Association according to Clause 2 of Article 2 of Decision No. 812/QĐ-TTg dated July 2, 2012 of the Prime Minister.

Article 2. Principles for considering interest rate support for bank loans to purchase temporary storage rice, paddy

Point 1. The state budget will provide 100% interest rate support for bank loans at commercial banks for traders falling under the provisions of this Circular to purchase temporary storage rice, paddy from the Summer-Autumn crop in 2012, in accordance with the Prime Minister's Directive No. 812/QĐ-TTg dated July 2, 2012.

Point 2. Interest rate support for bank loans to purchase temporary storage rice, paddy will only be provided for loans from commercial banks designated according to Clause 4 of Article 2 of Decision No. 812/QĐ-TTg dated July 2, 2012 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.

Point 4. The quantity of rice, paddy eligible for interest rate support for each trader shall be based on the actual quantity of rice, paddy purchased for temporary storage but shall not exceed the quantity specified in the allocation documents for the purchase of temporary storage rice, paddy from the Summer-Autumn crop in 2012 issued by the Vietnam Food Association, and must ensure that the total quantity of rice, paddy purchased for temporary storage does not exceed 500,000 tons (five hundred thousand tons) as stipulated in Article 1 of Decision No. 812/QĐ-TTg dated July 2, 2012 of the Prime Minister.

Point 5. The period for purchasing temporary storage is from July 10, 2012 to August 10, 2012.

Point 6. The temporary storage period is the actual temporary storage period within the timeframe from July 10, 2012 to October 10, 2012.

Point 7. The period for interest rate support for bank loans is the actual temporary storage period from the date of purchasing rice, paddy according to Point 5 of this Article to the date of selling temporarily stored rice, paddy but shall not exceed October 10, 2012.

Point 8. The price for calculating interest rate support is the actual purchase price according to market prices (excluding value-added tax) for each type of rice, paddy. In cases where traders purchase raw rice to produce finished rice, the price for calculating support includes production costs.

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

Point 9. The supported interest rate is the interest rate on bank loans according to the Credit Contract but shall not exceed 11.5% per annum as guided by the State Bank of Vietnam in Circular No. 4157/NHNN-TD dated July 9, 2012.

Point 10. The interest rate support provided from the state budget for the amount of rice, paddy purchased for temporary storage according to the Prime Minister's directive shall be recorded as other income 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 interest rate support for bank loans for the purchase of temporary storage rice, paddy. For the letters requesting support from the Northern Food Corporation and the Southern Food Corporation, they need to 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 funds for the purpose of purchasing temporary storage rice, paddy from the Summer-Autumn crop in 2012 as directed by the Prime Minister in Decision No. 812/QĐ-TTg dated July 2, 2012.

c) An inventory list of purchases, sales, and stock of temporarily stored rice, paddy. The inventory list must be confirmed by the leader of the Department of Industry and Trade where the trader has a temporary storage warehouse according to Form No. 1 attached to this Circular.

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

d) A list of outstanding loan balances and interest payments made to the bank for purchasing temporarily stored rice, paddy from the time of purchase according to Point 5 of Article 2 of this Circular until the time of sale but not exceeding October 10, 2012 (the list 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 for bank loans to purchase temporarily stored rice, paddy requesting support (according to Form No. 3 attached to this Circular).

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

a) After 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 documents as stipulated in Point 1 of Article 3 of this Circular to the Ministry of Finance (Department of Corporate Finance).

b) After receiving all required documents, within ten working days, the Ministry of Finance will review the documents and process interest rate support for the traders.

c) For the Northern Food Corporation and the Southern Food Corporation:

- The Ministry of Finance will accept the consolidated set of documents from the Northern Food Corporation and the Southern Food Corporation (will not accept documents from affiliated units within these corporations). The review of the interest rate support application will be conducted once after the end of the temporary storage period and distributed through the corporation's account.

- The Northern Food Corporation and the Southern Food Corporation shall guide their member units to prepare loan interest subsidy application files in accordance with Clause 1 of Article 3 of this Circular and submit them to the Ministry of Finance. The corporations shall be responsible for the accuracy of the aggregated data.

Upon receiving the interest subsidy funds from the Ministry of Finance credited to the corporation's account, within five working days, the corporation shall disburse these funds to its member units.

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 ministries, sectors, provincial People's Committees under central city administrations that produce summer-autumn rice crops, and the Vietnam Food Association in purchasing temporary storage paddy and rice.

a) The Ministry of Agriculture and Rural Development shall take the lead and coordinate with the Ministry of Industry and Trade, provincial People's Committees under central city administrations that produce summer-autumn rice crops, and the Vietnam Food Association to direct, inspect, and supervise the implementation of temporary storage paddy and rice purchases in accordance with the provisions of Decision No. 812/QĐ-TTg dated July 2, 2012 of the Prime Minister.

b) The State Bank of Vietnam shall designate commercial banks to implement loans for the purchase of temporary storage paddy and rice.

c) Provincial People's Committees under central city administrations that produce summer-autumn rice crops shall instruct the Department of Industry and Trade to inspect and confirm the inventory lists of incoming, outgoing, and stored temporary storage paddy and rice at warehouses located within the province of traders assigned the temporary storage task (including cases where the trader does not have a headquarters in the province).

d) The Vietnam Food Association shall be responsible for:

- Allocating purchase quotas for temporary storage paddy and rice to traders and ensuring that the total amount of temporarily stored paddy and rice does not exceed 500,000 tons (five hundred thousand tons) as stipulated in Article 1 of Decision No. 812/QĐ-TTg dated July 2, 2012 of the Prime Minister.

- Submitting to the Ministry of Finance a list of traders assigned the task of purchasing temporary storage paddy and rice by the Association so that the Ministry of Finance can monitor and consider interest rate subsidies for the traders in accordance with the regulations.

- Inspecting and supervising the organization of temporary storage paddy and rice purchases by traders in accordance with the provisions of Decision No. 812/QĐ-TTg dated July 2, 2012 of the Prime Minister.

2. Responsibilities of traders in purchasing temporary storage paddy and rice

a) Implementing temporary storage paddy and rice purchases in accordance with the directives of the Prime Minister in Decision No. 812/QĐ-TTg dated July 2, 2012, under the supervision of the Ministry of Agriculture and Rural Development, the Ministry of Industry and Trade, provincial People's Committees under central city administrations that produce summer-autumn rice crops, and the Vietnam Food Association.

b) Being responsible for the authenticity of the incoming, outgoing, and stored temporary storage paddy and rice, and the credit contracts for purchasing temporary storage paddy and rice, while also being responsible for the accuracy of the data reported in the loan interest subsidy application file.

c) Retaining records and documents of incoming, outgoing, and bank loans, and maintaining separate ledgers to track the procurement of temporary storage paddy and rice in accordance with the directives of the Prime Minister in Decision No. 812/QĐ-TTg dated July 2, 2012.

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.

State-owned enterprises that have been assigned by the Ministry of Agriculture and Rural Development to conduct offshore wind power project surveys before the effective date of this Circular shall continue to implement according to the assigned documents; any new matters arising after the effective date of this Circular shall be implemented in accordance with the provisions of this Circular.

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./.