Joint Circular No. 15/2007/TTLT-BTC-BNN guiding the management and use of state budget funds allocated to the Plant Seedling, Livestock Breeding Seedling, and Forestry Seedling Program.

JOINT CIRCULAR

Guidelines on the management and use of state budget funds for the National Target Program to address environmental pollution and improve the environment for the period 2012-2015

for the Plant Seed Program, Livestock Breed Programand Forestry Seed Program

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Pursuant to Decree No. 60/2003/NĐ-CP dated June 10, 2003 of the Government detailing and guiding the implementation of the Law on State Budget;

Pursuant to Decision No. 17/2006/QĐ-TTg dated January 20, 2006 of the Prime Minister regarding the continued implementation of Decision No. 225/1999/QĐ-TTg dated December 10, 1999 on the Plant Seed Program, Livestock Breed Program and Forestry Seed Program until 2010;

The Ministry of Finance and the Ministry of Agriculture and Rural Development jointly issue guidelines on the management and use of state budget funds for the Plant Seed Program, Livestock Breed Program and Forestry Seed Program during the period from 2006 to 2010, 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. This Circular guides the management and use of funds provided by the state budget for the Plant Seed Program, Livestock Breed Program and Forestry Seed Program during the period from 2006 to 2010 according to the contents stipulated in Decision No. 17/2006/QĐ-TTg dated January 20, 2006 of the Prime Minister on the continued implementation of Decision No. 225/1999/QĐ-TTg dated December 10, 1999 on the Plant Seed Program, Livestock Breed Program and Forestry Seed Program until 2010.

2. Funds for implementing the Plant Seed Program, Livestock Breed Program and Forestry Seed Program directly carried out by the Ministry of Agriculture and Rural Development and other central ministries and agencies shall be guaranteed by the central budget; for investment, research, production of major agricultural seed varieties, forestry seed varieties, and key livestock breeds throughout the country or regions.

Funds for implementing the Plant Seed Program, Livestock Breed Program and Forestry Seed Program directly carried out by provinces and centrally-administered cities shall be guaranteed by local budgets; for investment, research, production of agricultural seed varieties, forestry seed varieties, and livestock breeds that have comparative advantages in their respective localities.

3. Organizations and individuals must use the funds for the Plant Seed Program, Livestock Breed Program and Forestry Seed Program for their intended purposes in accordance with regulations, subject to inspection and supervision by competent authorities; at the end of the year or upon completion of the project, they must settle accounts for the funds used in accordance with current regulations.

II. SPECIFIC PROVISIONS

1. Contents of expenditures under the Plant Seed Program, Livestock Breed Program and Forestry Seed Program include:

1.1. Contents of expenditures under the Plant Seed Program, Livestock Breed Program and Forestry Seed Program implemented by the Ministry of Agriculture and Rural Development and other central ministries and agencies:

a) Central budget investment for affiliated institutions and units:

- Expenditures from scientific research funding:

+ Research on hybridization, selection, trial production, testing, quality control, and regionalization of new varieties; recognition of new varieties; investigation and determination of varieties, restoration of varieties with good characteristics; research on quality management procedures for seeds, seed processing;

+ Importing germplasm; collecting and preserving animal and plant germplasm; conservation of mother trees, forestry seed nurseries, seedling forests;

- Expenditures from basic construction capital: Preparation for investment and basic construction investment, procurement of equipment according to projects approved by competent authorities, including:

+ Planning and investment in infrastructure for the preservation and conservation of animal and plant germplasm, forestry seed nurseries, seedling forests;

+ Investment in infrastructure and procurement of equipment according to projects approved by competent authorities, to enhance research capacity and application of advanced technology in seed production;

- Expenditures from economic service funding:

+ Importation of high-yielding and high-quality new varieties not yet available or insufficiently available domestically; importation of new and advanced technologies for seed production; purchase of copyrights for new varieties not yet available domestically; hiring foreign experts when complex technologies requiring high expertise cannot be handled by domestic experts, linked to specific projects; establishment of some demonstration models for new seed production technologies recognized by competent authorities; propagation of original seeds;

+ Completion of seed production technology processes;

+ Training and technical guidance on new seed production technologies both domestically and internationally for staff and seed producers linked to each project;

+ Strengthening seed quality management: Completing seed management databases; activities of the Steering Committee for the Program; training and upgrading the professional skills of seed management staff at the ministry and provincial levels, and seed centers under ministry management; publishing materials to support state management of seeds.

b) Central budget support for organizations and individuals:

- Basic construction investment expenditure: Support for the construction of infrastructure (transportation, internal irrigation) in certain concentrated seed production areas applying advanced technology to develop seeds according to projects approved by competent authorities.

The maximum level of support shall not exceed 50% of the total investment cost for infrastructure construction projects (transportation, internal irrigation).

- Economic service expenditure:

+ Support for the production of original seeds (for plants: super foundation seeds, foundation seeds, mother trees, and parent lines for hybrids; for livestock: grandparent stock, great-grandparent stock) in cases where it is necessary for newly selected or imported varieties; those with high demand in production but not adequately supplied.

The maximum level of support shall not exceed 30% of the total production cost of seeds according to projects approved by competent authorities (excluding equipment and factory buildings included in the total cost). For projects producing original beef cattle, dairy cattle, and goat semen, 100% of the costs for semen and nitrogen are supported, while other costs are supported up to a maximum of 30%.

The selection of seeds for production and specific support levels for each project shall be decided by the Minister of Agriculture and Rural Development.

+ Support 100% interest on bank loans for the investment in machinery and equipment for mechanized and industrialized seed production and processing using advanced technology not yet produced domestically and imported from abroad. Support 50% interest on bank loans for the investment in machinery and equipment for mechanized and industrialized seed production and processing using advanced technology produced domestically. The interest support period shall not exceed 12 months.

1.2. Content of the Plant, Animal, and Forestry Seed Program implemented by provinces and centrally governed cities:

a) Local budget investment for subordinate agencies and public service units:

- Expenditures from scientific research funding:

+ Research on hybridization, selection, trial production, testing, quality control, and regionalization of new varieties; recognition of new varieties; investigation and determination of varieties, restoration of varieties with good characteristics; research on quality management procedures for seeds, seed processing;

+ Importing germplasm; collecting and preserving animal and plant germplasm; conservation of mother trees, forestry seed nurseries, seedling forests;

- Expenditures from basic construction capital: Preparation for investment and basic construction investment, procurement of equipment according to projects approved by competent authorities, including:

+ Planning and investment in infrastructure for the preservation and conservation of animal and plant germplasm, forestry seed nurseries, seedling forests;

+ Investment in infrastructure and procurement of equipment according to projects approved by competent authorities, to enhance research capacity and application of advanced technology in seed production;

- Expenditures from economic service funding:

+ Importation of high-yielding and high-quality new varieties not yet available or insufficiently available domestically; importation of new and advanced technologies for seed production; purchase of copyrights for new varieties not yet available domestically; hiring foreign experts when complex technologies requiring high expertise cannot be handled by domestic experts, linked to specific projects; establishment of some demonstration models for new seed production technologies recognized by competent authorities; propagation of original seeds;

+ Completing production technology procedures;

+ Training and technical guidance on new seed production technologies both domestically and internationally for staff and seed producers linked to each project;

+ Strengthening seed quality management: Completing seed management database; Funding activities of the Program Steering Committee; Training and capacity building for local seed management staff; Publishing materials to support state management of seeds.

b) Local budget support for organizations and individuals:

- Basic construction investment expenditure: Support for the construction of infrastructure (transportation, internal irrigation) in certain concentrated seed production areas applying advanced technology to develop seeds according to projects approved by competent authorities.

The maximum level of support shall not exceed 50% of the capital investment for infrastructure construction projects (transportation and internal irrigation).

- Economic service expenditure:

+ Support for the production of original seeds (for plants: super foundation seeds, foundation seeds, mother trees, and parent lines for hybrids; for livestock: grandparent stock, great-grandparent stock) in cases where it is necessary for newly selected or imported varieties; those with high demand in production but not adequately supplied.

The maximum level of support shall not exceed 30% of the total production cost of seeds according to projects approved by competent authorities (excluding equipment and factory buildings included in the total cost). For projects producing original beef cattle, dairy cattle, and goat semen, 100% of the costs for semen and nitrogen are supported, while other costs are supported up to a maximum of 30%.

The selection of seeds for production and specific levels of support for each project shall be decided by the Chairman of the People's Committees of provinces and centrally governed cities.

+ Support 100% interest on bank loans for the investment in machinery and equipment for mechanized and industrialized seed production and processing using advanced technology not yet produced domestically and imported from abroad. Support 50% interest on bank loans for the investment in machinery and equipment for mechanized and industrialized seed production and processing using advanced technology produced domestically. The interest support period shall not exceed 12 months.

2. Conditions for receiving state budget financial support from the Seed Program:

a) Conditions for infrastructure investment support:

- The seed production unit operates in a concentrated seed production area applying high-tech standards (high-tech zone criteria defined by the Minister of Agriculture and Rural Development);

- The investment project has been approved by the competent authority and the commitment of the unit to invest capital according to the approved project (excluding state budget support);

- State budget support funds will be provided based on the progress of the project and corresponding to the actual investment ratio of the unit within the state budget estimate approved by the competent authority;

- The project has not received infrastructure investment support from any state funding source.

b) Conditions for receiving support for producing original seeds when necessary:

- The seed production project has been approved by the competent authority (seed name, quantity needed for production...);

- The project has a location for implementing seed production (the location managed by the investor or the agreement of the agency/unit managing the land to implement the project at that location);

- The organization or individual has invested capital or committed to invest capital for seed production according to the approved project (excluding state budget support);

- Has not received support from any state funding source.

c) Conditions for receiving interest rate support for bank loans to purchase machinery and equipment for mechanization and industrialization of seed production:

- The seed production project has been approved by the competent authority; loan agreement with the bank (specifying the amount for purchasing machinery and equipment for seed production); interest rate support ratio, repayment period, and loan interest.

- Payment vouchers for bank loans for purchasing machinery and equipment for seed production.

- Decision on support issued by the competent authority;

- The project has not received support from any state funding source.

3. Budget preparation, execution, and settlement:

a) The preparation, payment, and settlement of economic public service funds and scientific research funds allocated to the Plant, Animal, and Forestry Seed Program shall be carried out in accordance with Circular No. 59/2003/TT-BTC dated June 26, 2003, guiding the implementation of Decree No. 60/2003/NĐ-CP dated June 6, 2006, detailing and guiding the implementation of the Law on State Budgets, and this Circular.

For basic construction investment funds allocated to the Plant, Animal, and Forestry Seed Program:

- Preparation of the budget estimate shall be carried out in accordance with Circular No. 59/2003/TT-BTC dated June 26, 2003, issued by the Ministry of Finance;

- Disbursement and payment shall be carried out in accordance with Circular No. 44/2003/TT-BTC dated May 15, 2003, issued by the Ministry of Finance, guiding the management and payment of investment and public service funds with investment characteristics and construction from state budget sources;

- Regarding annual final accounts reports: Implementation shall be carried out in accordance with Circular No. 53/2005/TT-BTC dated June 23, 2005, issued by the Ministry of Finance, guiding the preparation and review of final accounts reports for investment construction projects funded by the state budget annually.

- Regarding final accounts of completed investment projects: Implementation shall be carried out in accordance with Circular No. 45/2003/TT-BTC dated May 15, 2003, issued by the Ministry of Finance, guiding the final accounts of investment projects.

b) For additional targeted central government budget funds for localities implementing the Seed Program, as follows:

Based on the provincial Seed Program for the 2006-2010 period, which has been reviewed by the Ministry of Agriculture and Rural Development, and considering the local budget capacity, the People's Committees of provinces and centrally governed cities shall prepare the budget estimate for the requested central government support funds to implement seed projects and submit them to the Ministry of Agriculture and Rural Development and the Ministry of Finance.

The Ministry of Agriculture and Rural Development shall prepare the budget estimate for implementing the Seed Program (including the budget for the Seed Program directly implemented by the Ministry of Agriculture and Rural Development and the support budget for local seed projects) together with the annual budget estimate and submit it to the Ministry of Finance.

Based on the central government budget capacity, the Ministry of Finance shall coordinate with the Ministry of Agriculture and Rural Development to examine the budget estimate for implementing the Seed Program, including the level of additional targeted support for local budgets to implement local seed projects; consolidate and prepare the state budget revenue and expenditure estimates and the central government budget allocation plan to be submitted to the Government for consideration and decision by the National Assembly.

4. On product recovery:

a) For topics and projects implemented from scientific research and technology funds, if there are recoverable products, they shall be handled according to current regulations applicable to scientific and technological topics and projects using state budget funds.

b) Seed projects funded by the state budget from economic public expenditure for subordinate units under the Ministry of Agriculture and Rural Development, central ministries and agencies, and local public institutions, with all seeds produced to be supplied to localities; organizations and individuals must recover the value of seeds sold at market prices based on guidelines issued by the Ministry of Agriculture and Rural Development (for central seed projects) and the Department of Agriculture and Rural Development (for local seed projects). In cases where seeds are not available on the market, the selling price shall be determined by the Ministry of Agriculture and Rural Development (for central seed projects) and the Department of Agriculture and Rural Development shall submit a proposal to the People's Committee Chairmen of provinces and centrally-administered cities for determination (for local seed projects). The proceeds collected by the units shall be remitted to the state budget according to the current state budget classification.

In cases where the seed products of the unit are retained as seeds for subsequent stages, the cost of purchasing seeds for subsequent stages shall not be counted.

c) For seed projects supported by the state budget from economic public expenditure to produce original seeds when necessary: the recovery rate is 60% of the state budget support funds. The time for recovering funds for each project shall be decided by the approving authority but shall not exceed 24 months after the completion of the project.

In cases where a project must be suspended due to objective reasons causing damage to the project, such as typhoons, floods, fires, then the recovery of funds may be exempted or reduced. When encountering the above situations, the main units of the projects shall report in writing to the higher-level management authorities for inspection and confirmation of the implementation process and the reasons for suspending the project; the ability to repay the state budget support funds, specifically:

- For projects implemented by the Ministry of Agriculture and Rural Development and central ministries and agencies: after inspection and confirmation, the Ministry of Agriculture and Rural Development and the relevant ministries and agencies shall decide on the level of exemption or reduction of fund recovery based on a written agreement with the Ministry of Finance.

- For projects implemented by provinces and centrally-administered cities: the Department of Agriculture and Rural Development shall coordinate with the Department of Finance to inspect, confirm, and submit to the People's Committee of the province or centrally-administered city for decision on the level of exemption or reduction of fund recovery.

d) For seed projects supported by the state budget for infrastructure investment and interest subsidy on loans. The portion of the state budget that has been invested and subsidized shall not be recovered.

đ) For seed forests and nurseries for forestry species funded by the central budget and implemented on land managed by local authorities, upon completion of the project, the seed forests and nurseries shall be handed over to the local authorities for continued investment, care, protection, and long-term maintenance of seed production.

The Ministry of Agriculture and Rural Development shall organize the transfer of assets to local authorities in accordance with current regulations.

e) The heads of topics and projects responsible for recovering funds must remit the recoverable funds into the state budget according to the current classification.

The Ministry of Agriculture and Rural Development and central ministries and agencies (for central topics and projects), the Department of Agriculture and Rural Development (for local topics and projects) shall be responsible for monitoring and urging the recovery of products annually, compiling reports to the financial authorities at the same level as the final settlement report of the seed program budget.

5. Reporting, auditing, and inspection work:

- Quarterly and annually, the seed project leaders are responsible for reporting the implementation status to the Ministry of Agriculture and Rural Development and directly managing central ministries and agencies (for central projects), and reporting to the Department of Agriculture and Rural Development (for local projects). At year-end, the Department of Agriculture and Rural Development is responsible for compiling the implementation status of local seed projects within the seed program and reporting to the Ministry of Agriculture and Rural Development; the Ministry of Agriculture and Rural Development compiles the implementation status of the seed program for both central and local levels and reports to the Prime Minister, simultaneously sending to the Ministry of Finance and the Ministry of Planning and Investment.

- The Ministry of Agriculture and Rural Development and the Department of Agriculture and Rural Development shall cooperate with the financial authorities at the same level to organize regular or spot inspections on the implementation and use of funds for the seed program for crops, livestock, and forestry species to ensure proper and effective use of funds.

- Annually and at the end of the project, the Ministry of Agriculture and Rural Development and the Department of Agriculture and Rural Development shall organize phased acceptance and final project acceptance as the basis for payment and settlement of project funds.

III. IMPLEMENTATION

1. The Ministry of Agriculture and Rural Development is responsible for directing the Seed Program for the 2006-2010 period nationwide; approving seed projects and scientific and technological research topics related to seeds within its scope or affiliated units (through bidding and ordering mechanisms); reviewing the seed program orientation of localities for the 2006-2010 period; planning key seed breeding regions.

2. The People's Committees of provinces and centrally-administered cities are responsible for directing the seed program within their respective localities; approving local seed projects based on the locality's seed program for the 2006-2010 period, which has been reviewed by the Ministry of Agriculture and Rural Development.

3. This Circular takes effect 15 days after its publication in the Official Gazette and replaces Joint Circular No. 101/2001/TTLT-BTC-BNN&PTNT dated December 20, 2001, guiding the financial management system for state budget funds invested in the Seed Program for crops, livestock, and forestry species.

During implementation, if there are any difficulties, units are advised to reflect them to the Ministry of Finance and the Ministry of Agriculture and Rural Development for appropriate amendments./.