Joint Circular No. 148/2007/TTLT-BTC-BNN guiding the system for ordering production and supplying original animal breeding products

JOINT CIRCULAR

Guidelines for Ordering the Production and Supply of Original Livestock Breeding Materials

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Pursuant to the Breeding Materials Law for Livestock No. 16/2004/PL-UBTVQH11 dated March 24, 2004;

Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the State Budget Law;

Pursuant to Decree No. 31/2005/NĐ-CP dated March 11, 2005 of the Government on production and supply of public service products;

Pursuant to Decision No. 256/2006/QĐ-TTg dated November 9, 2006 of the Prime Minister promulgating the Procurement, Ordering, Plan Assignment, and Supply Regulations for Public Service Products;

The Ministry of Finance and the Ministry of Agriculture and Rural Development hereby issue guidelines for ordering the production and supply of original livestock breeding materials as follows:

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

1. Ordering Authority

The Ministry of Agriculture and Rural Development, People's Committees of provinces and centrally governed cities are the authorities responsible for ordering the production and supply of original livestock breeding materials (hereinafter referred to as the ordering authority).

2. Entities Accepting Orders

These include enterprises under various economic sectors, research and technology transfer institutions in the field of livestock breeding materials, and livestock farms that meet the requirements of original breeding material holding facilities as stipulated in Clause 1, Article 19 of the Breeding Materials Law for Livestock (hereinafter referred to as the entities accepting orders).

3. Ordered Breeding Materials

These are breeding animals and breeding products (eggs, semen, embryos) from purebred herds for pigs; purebred lines for poultry; nucleus herds for large ruminants; and pure breeds for bees and silkworms meeting the breeding standards set by the Ministry of Agriculture and Rural Development.

4. Activities Supported by State Financial Subsidies for Producing and Supplying Original Livestock Breeding Materials

a) Producing breeding animals and breeding products as specified in Clause 3, Section I of this Circular, which are ordered by the state. The products are sold, used to replace herds, or implemented in selective breeding programs;

b) Importing and raising new original breeds and breeding products to improve the quality of original livestock breeds and provide technical guidance on breed management;

c) Organizing inspections, acceptance, and contract liquidation between the ordering authority and the entities accepting orders.

5. Sources of Financial Subsidies

a) The central budget subsidizes activities ordered by the Ministry of Agriculture and Rural Development as specified in Clause 4, Section I of this Circular;

b) Local budgets subsidize activities ordered by provincial and centrally governed city people's committees as specified in Clause 4, Section I of this Circular.

II. SPECIFIC PROVISIONS

1. Preparation of Financial Budget Plans

Annually, based on the development goals of the livestock industry and the production and supply capacity of entities specified in Clause 2, Section I of this Circular, the ordering authority prepares a budget estimate for financial subsidies to be submitted to the finance department at the same level for consolidation in the budget proposal to be submitted to the competent authority for approval. The preparation of the budget estimate shall comply with the State Budget Law and current guiding documents.

2. Determination of Financial Subsidy Levels

a) Financial subsidy for a type of original breeding material: the financial subsidy for a type of original breeding material is calculated based on the quantity of original breeding materials and the subsidy price per unit of original breeding material, wherein:

- The subsidy price for a unit of livestock breeding material is calculated according to the formula:

Where:

+ Rearing costs for one unit of original breeding material: these are reasonable costs after deducting the proceeds from selling by-products and waste products of one unit of original breeding material to ensure the conditions for maintaining the original breeding material for one year;

A unit of original breeding material is a unit of measurement for a specific type of animal, for bees it is a colony, for silkworms it is a cocoon, for other animals it is an individual, for semen it is a dose, and for embryos it is an embryo.

+ Revenue from one unit of original breeding material: this is the revenue from selling breeding animals, semen, embryos, and substitute herd products at the state-regulated price. The state-regulated price is established based on market prices at the time of determining the subsidy level;

+ Productivity standard for one unit of original breeding material: this is the number of standard breeding products produced from one unit of original breeding material within a year. The original breeding material standards and productivity standards are set by the Ministry of Agriculture and Rural Development.

The Ministry of Finance determines the subsidy price for ordered products supported by the central budget based on the proposal of the Ministry of Agriculture and Rural Development.

Provincial People's Committees determine the subsidy price for ordered products supported by local budgets based on the proposal of the Department of Agriculture and Rural Development.

The subsidy price for one unit of original breeding material remains stable and will only be re-determined when there are changes in raw material prices, breeding product sales prices, and economic and technical standards that change the subsidy price by more than 20% compared to the previously determined subsidy price.

- Financial subsidy for a type of original breeding material:

b) Financial subsidy for importing and raising new original breeds and breeding products to improve the quality of original livestock breeds and provide technical guidance on breed management: this is the financial support provided to breeding material holding units to import and raise new original breeds and breeding products to improve the quality of original livestock breeds and provide technical guidance on managing new breeds based on:

- The quantity and types of breeds and breeding products to be imported as decided by the ordering authority.

- The import price of breeds and breeding products established through bidding and approved by the ordering authority.

- The financial support for the activity content does not exceed 15% of the total financial subsidy for original breeding materials.

c) Financial subsidy for organizing inspections, acceptance, and contract liquidation:

This is the financial support for the ordering authority to organize inspections, acceptance, and contract liquidation with the entities accepting orders.

The central budget for these activities shall not exceed three percent (3%) and the local budget shall not exceed seven percent (7%) of the subsidy funding for original breeding product seeds in the year.

3. Signing procurement contracts and adjusting contract values

Based on the approved subsidy budget estimate, the procuring agency allocates subsidy funds for the production and supply of each original breeding product seed; for the importation and breeding of new original breeds; and for inspection, acceptance, and settlement of contracts. The procuring entity signs the contract or authorizes the specialized management agency (the Livestock Service under the Ministry of Agriculture and Rural Development; the Department of Agriculture and Rural Development under the People's Committee of the province) to sign the contract according to the model contract attached as Appendix No. 01 to this Circular. The procurement contract is sent to the financial authority for advance payment of subsidy funds and for coordination in inspection, settlement, and contract liquidation with the contracted entity.

During implementation, the value of the procurement contract may be adjusted when the authorized agency adjusts the subsidy unit price or when natural disasters or epidemics affect the production and consumption results of breeding products.

4. Granting subsidy funds

Subsidy funds are implemented through payment orders, specifically:

a) Granting subsidy funds for original breeding product seeds:

Based on the signed contract between the procuring agency and the contracted entity, the financial authority advances seventy percent (70%) of the subsidy funds according to the contract value to the contracted entity.

Based on the contract liquidation record between the procuring agency and the contracted entity, the financial authority grants the remaining subsidy funds according to the liquidation contract value to the contracted entity.

The time for granting subsidy funds shall not exceed ten working days from the date the financial authority receives the contract or the contract liquidation record between the procuring agency and the contracted entity.

b) Granting subsidy funds for importing and breeding new original breeds, breeding products to improve the quality of original livestock breeds, and guiding breed management operations.

The time for granting subsidy funds shall not exceed ten working days from the date the financial authority receives the decision to import seeds from the authorized agency and the import contract between the contracted entity and the supplier.

c) Granting subsidy funds for inspection, acceptance, and contract liquidation:

The time for granting subsidy funds shall not exceed ten (10) working days from the date the financial authority receives the detailed budget estimate and progress report.

5. Termination of the Contract

a) For the procuring agency: at the end of the fiscal year or during the year when the contracted entity completes the contract, the procuring agency promptly organizes the acceptance of the contract performance results and signs the contract liquidation record with the contracted entity according to the model attached as Appendix No. 02 to this Circular.

Based on the contract liquidation record between the procuring agency and the contracted entity, the procuring agency evaluates the results of maintaining original livestock breeds and sends it to the same-level financial authority.

If the subsidy funds according to the contract liquidation record are less than the temporarily advanced funds, the contracted entity must return the difference to the State Budget within ten working days from the date of signing the contract liquidation record.

b) For the contracted entity: at the end of the fiscal year or before the completion of the procurement contract, the contracted entity reports the results of maintaining original breeds, settles the subsidy funds, and submits them to the procuring agency and the same-level financial authority for inspection, acceptance, contract liquidation, and approval of the settlement.

6. Reporting and Inspection

The contracted entity is responsible for reporting the implementation status of the procurement contract to the procuring agency every six months and at the end of the plan year.

The procuring agency is responsible for coordinating with relevant agencies to conduct spot inspections and regular inspections of contract implementation and inspection, acceptance, and contract liquidation with the contracted entity.

At the end of the year, the procuring agency prepares a report evaluating:

- Production of breeding animals and breeding products as stipulated in Clause 3, Section I of this Circular, which are ordered by the state, breeding products sold, used to replace herds, or implemented in targeted breeding and propagation programs;

- Importation and breeding of new original breeds, breeding products to improve the quality of original livestock breeds, and guidance on breed management operations;

The report is submitted to the Ministry of Agriculture and Rural Development and the Ministry of Finance.

III. IMPLEMENTATION

This Circular takes effect fifteen days after its publication in the Official Gazette and replaces Circular Joint No. 04/TTLB-NN&PTNT-TT dated January 16, 2004, issued by the Ministry of Agriculture and Rural Development and the Ministry of Finance regarding guidelines for the subsidy fund support system for maintaining original breeds.

Any issues arising during implementation should be reported to the Ministry of Finance and the Ministry of Agriculture and Rural Development for consideration and resolution./.