Decree No. 17/2018/ND-CP amending and supplementing certain articles of Decree No. 67/2014/ND-CP dated July 7, 2014 of the Government on some policies for developing fisheries.

DECREE

Amending and supplementing certain articles of Decree No. 67/2014/NĐ-CPdated July 7, 2014 of the Government on certain policies for developing fisheries

  

On the basis of Law on Government Organization dated June 19, 2015;

On the basis of Fisheries Law dated November 26, 2003;

On the basis of Law on the State Bank of Vietnam dated June 16, 2010;

On the basis of Law on Credit Institutions dated June 16, 2010;

On the basis of Insurance Business Law December 9, 2000 and Law amending and supplementing certain provisions of the Insurance Business Law July 20, 2012 of the Government detailing and guiding the implementation of certain provisions of

On the basis of Law on Corporate Income Tax June 3, 2008 and Law amending and supplementing certain articles of the Law on Corporate Income Tax June 19, 2013;

On the basis of Law on Value Added Tax June 3, 2008 and Law amending and supplementing certain articles of the Law on Value Added Tax June 19, 2013;

On the basis of Law on Tax Administration November 29, 2006 and Law Amending and Supplementing Certain Provisions of the Law on Tax Administration dated November 20, 2012;

On the basis of Law on Resource Taxes November 25, 2009;

On the basis of State Budget Law June 18, 2014;

On the basis of Law on Fees and Charges dated November 25, 2015;

Pursuant to the proposal of the Minister of Agriculture and Rural Development, the Minister of Finance, and the Governor of the State Bank of Vietnam;

The Government promulgates this Decree amending and supplementing certain articles of Decree No. 67/2014/NĐ-CP dated July 7, 2014 of the Government on certain policies for developing fisheries.

Article 1. Amending, supplementing, and abolishing certain articles and clauses of Decree No. 67/2014/NĐ-CP dated July 7, 2014 of the Government on certain policies for developing fisheries as follows:

1. Article 1 shall be amended as follows:

"Article 1. Scope of Regulation

This Decree stipulates policies on investment, credit, insurance; tax incentives; one-time support after investment, and other policies aimed at developing fisheries.”

Clause 1, Clause 3 of Article 3 are amended as follows:

"1. The central budget will invest 100% of the construction costs for essential items of Class I fishing ports and regional storm shelters (including wharfs; retaining walls, breakwaters, sand barriers; dredging of port channels and anchorage areas; mooring facilities; wastewater treatment systems; sorting houses; control rooms; internal roads and lighting; navigation aids such as buoys, beacons, and signal lights; dedicated communication systems) and construction of five large fishing centers (powered fishing ports).

3. The central budget will invest 100% of the construction costs for projects managed by central ministries and agencies for key infrastructure in concentrated aquaculture zones and breeding zones including: water supply and drainage systems (ponds, reservoirs, culverts, canals, pipes, pumping stations), embankments, levees, roads, power systems, centralized wastewater treatment facilities; upgrading infrastructure at national aquatic breeding centers, regional breeding centers; environmental monitoring centers for aquaculture, testing and inspection centers for aquaculture at the central and regional levels."

Point c shall be added to Clause 2 of Article 4 as follows:

"c) Permitting the mechanism for transferring ship ownership in cases where the ship owner is no longer capable of continuing the new construction or upgrade project of the vessel or the ship owner has completed the new construction but lacks the capacity to operate marine fishing activities, the new ship owner may continue to enjoy interest rate subsidies when taking over the vessel and the outstanding loan from the previous ship owner."

Clause 3 of Article 4 is amended as follows:

"3. Policy for working capital loans

a) Borrowers: Owners of distant-water fishing vessels; owners of distant-water fishing service vessels (collectively referred to as customers).

b) The provision of working capital loans shall be agreed upon between financial institutions and borrowers in accordance with current laws on credit policies serving agricultural and rural development."

5. Article 4a is added as follows:

"Article 4a. One-time post-investment support policy

1. Eligible entities: Ship owners who have newly built and own distant-water fishing vessels or distant-water fishing service vessels with main engine power of 800 HP or more specifically: Vessels newly built within the number allocated by the Ministry of Agriculture and Rural Development to provinces; replacement vessels for trawl fishing vessels with power of 90 HP or more converted to encouraged fishing methods such as purse seine, drift net (excluding drift net tuna fishing), longline, and fishing service operations.

2. Conditions for receiving support:

a) The ship owner must be a member of a production team, fishery cooperative, or fishery cooperative society approved by provincial People's Committees;

b) Newly built fishing vessels must be steel or composite hull distant-water fishing vessels or distant-water fishing service vessels;

c) Main engines of newly built vessels must be brand new original equipment;

d) Fishing vessels must be equipped with long-range communication devices integrated with satellite positioning systems and connected to shore stations for voyage management and monitoring during operation at sea;

e) Distant-water fishing vessels must have been issued a Certificate of Technical Safety for Fishing Vessels, a Registration Certificate for Fishing Vessels, and a Fishing License;

f) Distant-water fishing service vessels must have been issued a Certificate of Technical Safety for Fishing Vessels and a Registration Certificate for Fishing Vessels.

3. Level of support:

a) For newly built steel-hulled distant-water fishing vessels or fishing service vessels (including all new equipment):

Vessels with main engine power from 800 HP to less than 1,000 HP, the ship owner will receive a subsidy of 35% of the new construction cost but not exceeding 6.7 billion VND per vessel;

Vessels with main engine power of 1,000 HP or more, the ship owner will receive a subsidy of 35% of the new construction cost but not exceeding 8 billion VND per vessel.

b) For newly built composite-hulled distant-water fishing vessels or fishing service vessels with power of 800 HP or more (including all new equipment), the ship owner will receive a subsidy of 35% of the new construction cost but not exceeding 6.7 billion VND per vessel.

4. Procedures and formalities for support:

a) The ship owner submits an application (one set) for one-time post-investment support for new vessel construction directly to the Department of Agriculture and Rural Development where the fishing vessel is registered or through postal service. The application includes:

An application for one-time post-investment support for new vessel construction by the ship owner, confirmed by the People's Committee of the commune/district where the ship owner resides (Application form for one-time post-investment support attached to this Decree);

A copy of the ship owner’s identity card or Citizen Identification Card;

Copies of the following documents: Certificate of Technical Safety for Fishing Vessels, Registration Certificate for Fishing Vessels, and Fishing License for fishing vessels; Certificate of Technical Safety for Fishing Vessels and Registration Certificate for Fishing Vessels for distant-water fishing service vessels;

Contract for new vessel construction to confirm the ship owner's order for new vessel construction;

The final settlement table of the shipbuilding facility regarding the total investment cost for building new fishing vessels (including machinery, maritime equipment; equipment for exploitation; seafood preservation equipment; cargo preservation; loading and unloading equipment), accompanied by invoices and payment documents for the construction of new fishing vessels, the purchase of new machinery, and equipment.

b) Within ten working days from the date of receiving all supporting documents for assistance submitted by the vessel owner, the Department of Agriculture and Rural Development shall take the lead and coordinate with relevant units to organize an assessment and submit to the provincial People's Committee for approval of the amount of support for the vessel owner.

c) Within five working days from the date of receiving the report proposing the amount of support from the Department of Agriculture and Rural Development, the provincial People's Committee shall issue a Decision approving the amount of support for the vessel owner and send the result to the State Treasury at the district level where the vessel owner receives support, and publicly announce it at the office premises.

d) Within two working days from the date of receiving the Decision of the provincial People's Committee, the Department of Finance shall issue an order to pay the money and send it to the State Treasury.

đ) Within two working days from the date of receiving the order to pay money from the Department of Finance, the State Treasury shall publicly announce the schedule for disbursing money to the vessel owner; the vessel owner must present their identity card or Citizen Identity Card for verification when receiving the money.

e) Prepare budget estimates, allocate, and settle accounts for expenses.

The Department of Finance shall cooperate with relevant departments, sectors, and localities based on the number of newly built vessels eligible for one-time post-investment support policies, determine the funding needs for support, and report to the provincial People's Committee to send to the Ministry of Finance.

The Ministry of Agriculture and Rural Development shall compile the needs of localities and send them to the Ministry of Planning and Investment to take the lead and coordinate with the Ministry of Finance to compile and report to the Prime Minister to supplement central government funds for localities.

One-time post-investment support funding shall be consolidated into the annual budget expenditure settlement of the provincial level according to the provisions of the State Budget Law, guiding documents of the State Budget Law, and the current state budget classification.

6. Article 5 is amended and supplemented as follows:

"Article 5. Insurance Policy

The state budget will support the cost of purchasing insurance for distant-water fishing vessels, service vessels for distant-water fishing that are members of teams, fishery cooperatives, and have a main engine power of 90 CV or more:

1. Annually support 100% of the cost of purchasing crew accident insurance for each crew member working on the vessel.

2. Annually support 50% of the cost of purchasing hull insurance (insurance against all risks to the vessel, excluding fishing gear and equipment on board)."

7. Clause 2, Clause 3, Clause 7, Clause 8 of Article 6 are amended as follows:

“2. For stamp duty, exemption is implemented according to the provisions of Clause 23, Article 9 of Decree No. 140/2016/ND-CP dated October 10, 2016 of the Government on stamp duty.

3. For business registration fee, exemption is implemented according to the provisions of Clause 4, Article 3 of Decree No. 139/2016/ND-CP dated October 4, 2016 of the Government on business registration fee.

7. For personal income tax, exemption is implemented according to the provisions of Clause 5, Article 4 of the Personal Income Tax Law 2007 and the Law Amending and Supplementing Certain Provisions of Laws on Taxation 2014.

8. Enterprises earning income from aquaculture, processing aquatic products, and marine fishing enjoy preferential corporate income tax according to the Corporate Income Tax Law and guiding documents.”

8. Clause 1 of Article 7 is amended as follows:

“1. Support 100% of the costs for training captains, chief engineers, crew members operating steel-hulled vessels, new material vessels; technical guidance on exploitation and product preservation according to new technology for vessels with a main engine power of 400 CV or more.”

9. Clause 2 of Article 8 is amended as follows:

“2. For costs: Training, regular maintenance and repair of steel-hulled fishing vessels; funding to implement insurance policies and one-time post-investment support policies carried out under the target support mechanism from the central budget to local budgets decided by the Prime Minister.”

10. Point e of Clause 1 of Article 9 is amended as follows:

“e) Direct and guide localities in implementation, periodically review progress; take the lead and coordinate with relevant ministries, sectors, and provincial people's committees to summarize the implementation and report to the Government.”

11. Add point g to Clause 1 of Article 9 as follows:

“g) Review, supplement, and establish regulations on monitoring the construction of new fishing vessels.”

12. Clause 2 of Article 9 is amended as follows:

“2. Take the lead and coordinate with the Ministry of Finance and the Ministry of Agriculture and Rural Development to aggregate needs, balance, and allocate capital for development according to the five-year plan and annual plans to subsidize interest rates, provide one-time post-investment support, and implement investment programs and projects, ensuring the completion of each project.”

13. Point b of Clause 3 of Article 9 is amended and supplemented as follows:

“b) Guide the mechanism for interest rate subsidies as stipulated in Article 4 of Decree No. 67/2014/ND-CP. Supplement additional objective and force majeure reasons arising from the actual implementation to benefit from the risk management mechanism as prescribed in Decree No. 67/2014/ND-CP.”

14. Add point d to Clause 3 of Article 9 as follows:

“d) Take the lead and coordinate with relevant ministries and sectors to resolve issues related to the methods, documents, procedures, and processes for post-investment support for fishermen building new fishing vessels.”

15. Add point đ to Clause 4 of Article 9 as follows:

“đ) Guide the implementation of debt restructuring in cases where the vessel owner is no longer capable of continuing the new construction or upgrading project, or the vessel owner has completed the new construction but lacks the capacity to operate marine fishing.”

16. Clause 2 of Article 10 is amended as follows:

“2. Entrust the People's Committee of the commune to certify the beneficiaries, the People's Committee of the district to review, and submit to the People's Committee of the province for approval of beneficiaries entitled to one-time post-investment support under Article 4a; beneficiaries entitled to support as stipulated in Article 5; beneficiaries entitled to support as stipulated in Article 7 of this Decree to serve as the basis for implementation.”

17. Add Clauses 7, 8, 9, 10, and 11 to Article 10 as follows:

"7. Consider decisions in cases where the shipowner no longer has the ability to continue implementing the new construction or upgrade project of vessels or the shipowner has completed the new construction but lacks the capacity to operate fishing activities and wishes to transfer the vessel based on the unanimous opinion of the commercial bank providing the loan.

8. Direct relevant units to determine the annual one-time financial support needs and submit them to the Ministry of Finance for consolidation, balancing, and budget allocation to implement the policy.

9. Inspect and supervise the implementation of the one-time post-investment support policy; the implementation of new construction and upgrade of fishing vessels; ensure that support is provided to the correct recipients, in accordance with regulations, and in a transparent manner.

10. Direct related departments and agencies to coordinate with the banking sector within their jurisdiction to urge shipowners who have received loans under Decree No. 67/2014/NĐ-CP to repay their bank loans according to the agreed credit contracts.

11. Report periodically every quarter and at the end of each fiscal year on the results of implementing policies to the Ministry of Finance and the Ministry of Agriculture and Rural Development."

18. Add Clauses 5 and 6 to Article 12 as follows:

"5. The shipowner must be responsible for supervising construction throughout the process of new construction, conversion, maintenance, and repair of fishing vessels. Hire consulting supervision if the shipowner lacks the capacity to supervise; the cost of hiring consulting supervision shall be included in the total investment value of constructing the vessel.

6. In cases where the shipowner no longer has the ability to continue implementing the new construction project of fishing vessels or the shipowner has completed the new construction but transfers the project rights to a new shipowner, when the new shipowner meets the conditions stipulated in this Decree, the new shipowner will continue to enjoy support policies and fulfill the obligations of the continued project."

19. Clause 4 of Article 13 is amended as follows:

"4. The implementation period for policies prescribed in this Decree is as follows:

a) The implementation period for policies prescribed in Article 3; Clause 3 of Article 4; Articles 5, 6, and 7 of Decree No. 67/2014/NĐ-CP dated July 7, 2014, will be completed by December 31, 2020.

b) The insurance support period for shipowners borrowing funds to construct or upgrade vessels under Decree No. 67/2014/NĐ-CP dated July 7, 2014, of the Government will be implemented throughout the loan interest subsidy period (maximum 11 years for wooden hull construction or upgrades; maximum 16 years for steel hull or new material construction).

c) The implementation period for the one-time post-investment support policy for constructing and owning distant-water fishing vessels or service support vessels for distant-water fishing with main engine power of 800 HP or more will be completed by December 31, 2020.

d) The signing period for credit contracts for new construction and upgrading of vessels as stipulated in Clause 1 of Article 4 will be completed by December 31, 2017. For loans disbursed after December 31, 2018, the loan interest rate will be mutually agreed between the commercial bank and the customer in compliance with current laws."

20. Repeal Clause 6 of Article 3 and Clause 2 of Article 7 of Decree No. 67/2014/NĐ-CP dated July 7, 2014, of the Government regarding certain policies for developing fisheries.

Article 2. Effectiveness

1. This Decree shall take effect from March 25, 2018.

2. The policies stipulated in this Decree shall be implemented from January 1, 2018.

3. Abolish Clause 5 and Clause 7, Article 1 of Decree No. 89/2015/NĐ-CP dated October 7, 2015 amending and supplementing certain articles of Decree No. 67/2014/NĐ-CP dated July 7, 2014 of the Government on some policies for developing fisheries.

4. Decision No. 47/2016/QĐ-TTg dated October 31, 2016 of the Government on piloting a one-time support mechanism after investment as prescribed in Decree No. 89/2015/NĐ-CP dated October 7, 2015 amending and supplementing certain articles of Decree No. 67/2014/NĐ-CP dated July 7, 2014 of the Government on some policies for developing fisheries shall cease to be effective from the date this Decree takes effect.

Article 3. Responsibility for Implementation

Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairpersons of provincial People's Committees under the central government, Chairpersons of industry associations in the scope of their functions and tasks are responsible for guiding and implementing this Decree.

 

 

Appendix

(Attached to Decree No. 17/2018/NĐ-CP dated February 2, 2018 of the Government)

SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
---------------

APPLICATION FOR ONE-TIME SUPPORT AFTER INVESTMENT

Respectfully submitted to: Department of Agriculture and Rural Development of the province/city...

My name is: ...

ID Card/Identity Card number: ..., Date of issue: ..., Place of issue: ...

Address: ..., Telephone: ...

I am the owner of registered vessel number: ...

Main engine power: ...

Registered occupation: ...

I have built a steel-hulled/new-material vessel at the shipbuilding facility ..., the date of signing the shipbuilding contract: Day ... month ... year ...

The total amount of investment for building a new vessel (including new machinery and equipment) is ... VND (in words: ...)

Based on Decree No. .../2018/NĐ-CP dated ... month ... year 2018 of the Government amending and supplementing certain articles of Decree No. 67/2014/NĐ-CP dated July 7, 2014 of the Government on some policies for developing fisheries, I request to be supported with an amount of ... VND (in words: ...) for building a new vessel.

Beneficiary's name: ..., bank account number ... at bank/Central Treasury ... (if receiving support through bank transfer).

I hereby declare that the construction of the new vessel, purchase of new machinery and equipment mentioned above is true and I have not received one-time support for building a new vessel under other state policies. If there is any false declaration, I will return the amount of support received and bear legal responsibility for my declaration.

 

Confirmation by the People's Committee of the commune/district