Circular No. 17-TC/NSDP guiding the revenue collection system for the submission of agricultural products.

CIRCULAR

DIRECTIVE OF THE MINISTRY OF FINANCE NO. 17-TC/NSDP DATED APRIL 2, 1984 GUIDING
THE REGIME OF COLLECTION ON INCENTIVES FOR HANDLING AND SUBMITTING AGRICULTURAL PRODUCTS

To encourage local authorities at all levels (provinces, cities, special zones, districts, counties, communes) in promoting production, purchasing, and concentrating agricultural, forestry, fishery, and aquatic products for the State, actively submitting them to higher levels, meeting raw material needs for processing, domestic consumption requirements, and export demands, the Council of Ministers, in Resolution No. 138-HĐBT dated November 19, 1983 on improving the decentralized management regime of the state budget for localities, stipulated the collection regime regarding incentives for handling and submitting agricultural, forestry, fishery, and aquatic products (hereinafter referred to as agricultural products).

The Ministry of Finance guides specific points concerning the collection regime on incentives for handling and submitting agricultural products as follows.

A- BASIS AND PRICES FOR CALCULATING THE AMOUNT OF COLLECTION AND THE RATE OF COLLECTION

1. All agricultural, forestry, fishery, and aquatic products and processed products from these products such as semi-finished tea, honey, vinegar, fish sauce, etc., produced by cooperatives, groups, and individuals (hereinafter referred to as agricultural products) sold to the State (excluding rice and physical goods submitted for agricultural tax, water conservancy fees, machine plowing services, pesticide purchases, construction bonds, or debt repayment to the State...) regardless of whether they are purchased directly by central agencies or by provincial or district agencies and then submitted to higher levels, the local budgets at all levels (provinces, cities, special zones, districts, counties, communes) shall benefit from the collection regime on the submission of agricultural products from lower levels to higher levels.

Agricultural, forestry, fishery, and aquatic products managed by state enterprises, stations, and farms under central, provincial, city, or special zone (hereinafter referred to as provincial) management, when submitted to the State, regardless of which level they are submitted to, shall not benefit from the collection regime on the submission of agricultural products (as their capital is invested by the State budget, and the profits of these enterprises have already been collected by the budgets at various levels).

2. Amounts of Collection.

For the collection regime on the submission of agricultural products, it is calculated as a percentage (%) of the value of agricultural products submitted to enterprises and economic organizations (hereinafter referred to as enterprises) at each central, provincial, district, and county level, with priority given to exported agricultural products, specifically:

- Agricultural products submitted to central enterprises for production and domestic consumption, regardless of whether they are received from provinces, districts, or communes, the rate of collection is 15% of the value of the agricultural products exchanged between localities and central enterprises. If the agricultural products are submitted to foreign trade companies, central procurement organizations for export, or central enterprises specialized in export processing (these enterprises must register with the Ministry of Finance to notify localities), the rate of collection is 20% of the value of the agricultural products exchanged between localities and these units.

- Agricultural products submitted to provincial enterprises for production and consumption within the province, regardless of whether they are received from districts, counties, or communes, the rate of collection is 10% of the value of the agricultural products exchanged between districts, counties, or communes and provincial enterprises.

- Agricultural products purchased by district or county enterprises from communes for production and consumption within the district or county, the rate of collection is 5% of the value of the agricultural products exchanged between communes and district or county enterprises.

- Agricultural products submitted to other provinces according to the central plan for distribution and allocation, the rate of collection is the same as that for central submission, which is 15% of the value of the agricultural products exchanged.

3. Price and method of calculation:

The price for calculating the collection regime on the submission of agricultural products is the directed purchase price set by the State for localities. In cases where there is no directed purchase price, it must be calculated based on the bilateral economic contract purchase price set by the State.

For grain, calculate based on the rice price paid for agricultural tax with the Food Department; for pork, calculate based on the unified national price of 40 đồng/kg live pig (Circular No. 41-V13 dated January 5, 1984 of the Council of Ministers). For other agricultural product prices, the Ministry of Finance will work with the State Price Commission based on the directed purchase prices for each region set by the State Price Commission or the People's Committee of provinces, cities, or special zones to systematize and announce them for consistent implementation by all provinces.

When calculating the collection regime on the submission of agricultural products, it must primarily be based on the actual quantity of agricultural products exchanged between the submitting locality (province, county, commune) and the purchasing unit (x) multiplied by the directed purchase price to determine the value of the agricultural products exchanged. Based on the total value of the agricultural products exchanged multiplied (x) by the rate of collection to calculate the amount of the collection regime on the submission of agricultural products.

Example: An entity in Province A submitted 5,000 kilograms of semi-finished tea varieties at 26.5 đồng/kg and 3,000 kilograms of soybeans at 10 đồng/kg. The total value of the agricultural products submitted by this entity is (26.5 đồng/kg x 5,000 kg) + (10 đồng/kg x 3,000 kg) = 162,500 đồng.

The collection amount for the local budget will be:

- If submitted to central enterprises for processing:

162,500 đồng x 15% = 24,375 đồng.

- If submitted to the central government for export:

162,500 đồng x 20% = 32,500 đồng.

- If submitted to provincial enterprises:

162,500 đồng x 10% = 16,250 đồng.

- If submitted to district or county enterprises:

162,500 đồng x 5% = 8,125 đồng.

4. Exceeding the plan:

To encourage localities to pay full attention to all types of agricultural products they are responsible for submitting to the central government, avoiding focusing only on certain types while neglecting the procurement and submission of other types, the exceeding of the plan for submission to the central government will be determined after summarizing all types of agricultural products submitted to the central government. At year-end, the Department of Finance will consolidate the total quantity of all types of agricultural products submitted to the central government, including those submitted beyond the plan, and compare the total value of the agricultural products submitted with the state plan index; if exceeded, the central government budget will reward the provincial budget with 10% of the total value of the agricultural products submitted beyond the annual plan.

The examination and rewards for counties and communes within the province that exceed the plan will be decided by the Provincial People's Committee.

B- PAYERS AND BENEFICIARIES OF THE COLLECTION REGIME ON THE SUBMISSION OF AGRICULTURAL PRODUCTS

Decision No. 138-HĐBT dated November 19, 1983 of the Council of Ministers clearly states that "revenue from the submission of agricultural products shall be paid directly to the local budget by the purchasing agency, and the financial authority at the same level shall refund the amount to the purchasing agency."

Therefore:

1. The entity submitting revenue from the submission of agricultural products to the local budget is the purchasing agency. The purchasing agency must be state production and business organizations entrusted with the responsibility of purchasing for direct production, processing, export, or supply to domestic consumption needs, in order to be eligible for the financial authority at the same level to allocate funds from its own budget to pay the revenue from the submission of agricultural products to the lower-level budget.

If the purchasing agency is not a state production or business organization, then the budgets at all levels shall not allocate funds for the revenue from the submission of agricultural products as stipulated above. In cases where agricultural, forestry, aquatic, and marine products are exchanged between provinces, districts, and communes according to economic linkage contracts, both parties must negotiate to ensure that the district, commune, and village budgets where agricultural products are submitted have revenue from the submission of agricultural products.

2. The entity entitled to revenue from the submission of agricultural products is the local budget (province, district, commune, village) where the agricultural products are submitted.

Agricultural products handed over to central enterprises or other provinces (according to national mobilization quotas) shall have a submission revenue rate of 15%, of which the provincial budget receives 5%, the district and commune budgets each receive 5%, and the village budget receives 5%. If handed over to the central level for export, the incentive rate is 20%, with the provincial budget receiving 10%, the district and commune budgets each receiving 5%, and the village budget receiving 5%.

Agricultural products handed over to provincial enterprises shall have a submission revenue rate of 10%, of which the district and commune budgets each receive 5% and the village budget receives 5%.

Agricultural products handed over to district and commune enterprises shall have a submission revenue rate of 5% allocated to the village budget.

3. The source of funds allocated for the purchasing agency to submit revenue from the submission of agricultural products to the lower-level budget is the budget of the same level. The purchasing agency belongs to which level, the budget of that level will allocate funds for the purchasing agency to have money to pay to the lower-level budget. Specifically:

- Central state-owned enterprises purchasing for production and processing, foreign trade companies under the Ministry of Foreign Trade purchasing for export, and first-tier companies under the Ministries of Internal Trade, Foodstuffs, Fisheries... purchasing agricultural products for domestic consumption shall be funded by the central budget.

- Provincial state-owned enterprises purchasing for production and processing, local export trading companies, and second-tier companies under provincial sectors purchasing for provincial consumption shall be funded by the provincial budget.

- District and commune state-owned enterprises purchasing for production and processing, and business organizations of districts and communes purchasing for local consumption shall be funded by the district and commune budgets.

- For agricultural products purchased by provincial or district and commune trading companies, if the provincial or district and commune budgets have already allocated funds to submit revenue from the submission of agricultural products to the lower-level budget but subsequently hand them over to central enterprises for production and processing, or provide them to military forces, civil servants, and dependents under central management stationed in the locality, the central budget will reimburse the local budget 15% of the value of the agricultural products received or sold and provided.

- For agricultural products purchased by district and commune trading companies, if the district and commune budgets have already reimbursed the village budget, but the district and commune companies subsequently hand them over to provincial enterprises or sell and provide them to cadres, workers, and dependents under provincial management stationed in the district and commune, the provincial budget will reimburse the district and commune budget 10%.

C- PROCEDURE FOR PAYING REVENUE FROM THE SUBMISSION OF
AGRICULTURAL PRODUCTS

To ensure prompt, full, and complete payment of revenue from the submission of agricultural products to the local budget (province, district, commune, village), while minimizing inconvenience for the purchasing agencies and enhancing their responsibilities, the Ministry of Finance has prescribed procedures for allocating, paying, and collecting revenue from the submission of agricultural products for various levels of budget as follows:

1. For agricultural products submitted to central enterprises:

Based on the annual plan and quarterly breakdowns of provinces, cities, and special zones (compiled and sent to the Ministry of Finance by the Department of Finance) regarding the quantity and value of agricultural products purchased and submitted to the central level, the Ministry of Finance will temporarily allocate a certain amount of funds to the accounts of the provincial Departments of Finance under the Capital Authorization Account (795-05) at the State Bank of Vietnam's provincial branch (with the provincial Department of Finance as the account holder) to be used for allocating funds to central enterprises purchasing agricultural products in the locality to have money to pay revenue from the submission of agricultural products into the local budget. Depending on the situation in each province, city, and special zone, in counties with a large volume of agricultural products submitted to the central level, the provincial Department of Finance may distribute the central budget's authorized capital to districts and counties, deposited at the State Bank's district and county branches (with the head of the district and county finance departments as the account holders of 795-05) to implement the allocation of funds to central enterprises purchasing agricultural products to have money to pay into the local budget.

After each harvest season or each purchasing period (depending on the delivery contract for each type of agricultural product), central enterprises must jointly with the district or county authorities or the agency delivering agricultural products prepare a delivery receipt, confirming the quantity of agricultural products and the amount of encouragement fees to be paid based on the delivered agricultural products between the buyer and seller. This receipt shall be sent to the Department of Finance (or District or County Finance Office) where the agricultural products were sold as evidence for payment procedures for the agricultural product submission revenue to the local budget. The receipt shall be pre-printed by the central enterprises and economic organizations engaged in purchasing, clearly stating the name of the enterprise or company and affixing a stamp at the top left corner for each time they send staff to purchase agricultural products locally. They will sign this receipt with the local submission agency and submit four copies to the Department of Finance (or District or County Finance Office) where the agricultural products were sold to complete the payment procedures. After completion of the payment, one copy will be kept at the State Bank where the payment was made, one copy will be returned to the purchasing unit to replace the submitted revenue receipt, one copy will be kept at the Finance Office, and one copy will be kept by the Department of Finance along with the notice of debt settlement with the Ministry of Finance regarding the authorized capital.

The Department of Finance (or District or County Finance Office if authorized by the Department of Finance) will base on the delivery receipt to issue a payment authorization to deduct from account 795-05, which includes the authorized capital and encouragement fees for agricultural product submissions to the local budget. The content should clearly state that it is issued for Unit A of the central government to pay the encouragement fees for agricultural product submissions (attached with the delivery receipt) to be sent to the State Bank for execution of the payment.

When transferring funds from account 795-05 (central budget's authorized capital and encouragement fees for agricultural product submissions) to the local budget, the District or County State Bank is responsible for supervising the amount deducted, ensuring compliance with regulations concerning the basis, prices, encouragement fee rates, and the recipients as specified in Points A and B of this Circular.

At the end of each month or quarter, the Department of Finance will collect all delivery receipts of central enterprises that have been settled for agricultural product submission revenues, along with notices of debt regarding the use of the central budget's authorized capital (account 795-05) to send to the Ministry of Finance for payment and to request advance allocation of the next quarter's authorized capital (if the previous quarter's payment procedures are not completed, the Ministry of Finance will temporarily suspend the transfer of the next quarter's authorized capital).

2. Agricultural products sold to supply the armed forces and central government employees stationed in provinces and cities.

For agricultural products such as food and provisions sold to supply the armed forces and central government employees stationed in provinces, cities, and special zones, the Department of Finance will base on the quantity of food and provisions sold by the grain and internal trade sector to the armed forces and central government employees managed by the central government, calculate the encouragement fee for agricultural product submissions (at a rate of 15%, similar to agricultural products submitted to the central government), and report to the Ministry of Finance for approval to reimburse the local budget. When settling payments, deductions must be made for the portion of food and provisions of grade I that have been transferred from other places to the province, city, or special zone (as these have already been reimbursed by the central budget to the local budget where the submission was made).

3. For agricultural products submitted to provincial enterprises.

The source of funds for allocating to provincial enterprises and economic organizations for purchasing, production, processing, export, or local consumption is provided by the provincial budget, so the Department of Finance will specify the allocation method to ensure the purchasing agencies of the province have funds to pay into the district or county budget (including the portion allocated to the village budget). This can be implemented in two ways:

a) Applying the payment procedure for agricultural products submitted to central enterprises; specifically, the Department of Finance will use the provincial budget to temporarily allocate authorized capital to districts and counties, allowing them to allocate funds to provincial enterprises to pay into the county budget. The Department of Finance will coordinate with the State Bank of the province and districts to open separate accounts at the State Bank of the district or county, which cannot be mixed with account 795-05 (Central Budget's Authorized Capital).

b) At the end of each month, the District or County Finance Office will collect delivery receipts from provincial enterprises and trading organizations that have purchased agricultural products in the district, county, and village, and submit them to the Department of Finance. The Department of Finance will then allocate funds from the provincial budget to the district or county budget (including the portion collected in the village budget).

Currently, the village budget has not been unified in the national budget system, so when central or provincial purchasing units pay agricultural product submission revenues to the local budget, the portion allocated to the village budget is centralized in the district or county budget. Subsequently, the People's Committee of the district or county (Finance Office) will handle the distribution and payment to the village budget (including the portion of agricultural products retained by the district or county for their own use).

The method of paying agricultural product submission revenues to the village budget is as follows:

Each month, the Village People's Committee will prepare a list of agricultural products submitted between the village, cooperative, and individual farmers to the county and provincial enterprises and central enterprises, and send it to the People's Committee of the district or county. The People's Committee of the district or county (Finance Office) will review and verify, excluding quantities and items related to agricultural tax, water conservancy fees, machine plowing fees, pesticide costs, emergency rice purchases, and rice used to repay state debts deducted from the district or county budget, and will allocate the submission revenue to the village budget at 5% of the total value of the agricultural products as stipulated.

D - HANDLING SOME SPECIFIC CASES

1. Regarding the pricing for collection.

To implement uniformly throughout the province the price for calculating revenue from the submission of agricultural products to the local budget, the People's Committee of the province, city, special administrative region shall notify the People's Committees of the districts, counties, and units within the province of the purchase price directed by the State for each type of agricultural product specified for the province so that the People's Committees of the districts, counties, and production and business units operating within the provincial territory can uniformly calculate this revenue.

2. Regarding the level of encouragement revenue for food grains.

In the total amount of food grains purchased, there is a portion of rice subject to agricultural tax, water conservancy fees, etc., which does not benefit from the revenue from the submission of agricultural products. Therefore, the quantity of food grains submitted to the province, district, county, and central government must exclude the portion of food grains that does not benefit from the revenue from the submission of agricultural products.

For example, the total amount of rice mobilized according to the annual plan of Province A is 100,000 tons, including 30,000 tons of rice subject to agricultural tax, water conservancy fees, etc., and 70,000 tons of purchased rice. From this, it is determined that the portion of food grains not benefiting from the revenue from the submission of agricultural products is 30% of the total amount of food grains mobilized. The deduction rate is 30%.

When calculating the revenue and submission of agricultural products for the quantity of food grains allocated to central units, the province, district, and county, and the quantity of food grains sold and supplied to military forces, civil servants, and employees under the management of the central government or the province, all deductions are made according to the ratio already determined regarding the portion of food grains not benefiting from the revenue from the submission of agricultural products as illustrated above.

This deduction rate, the Department of Finance calculates based on the annual mobilization plan of food grains of the province and reports to the People's Committee of the province and the Ministry of Finance for their knowledge and notification to the People's Committees of the districts, counties, central purchasing units, and provincial units to implement uniformly throughout the province. The portion paid by the district and county to the commune budget shall be calculated based on the actual situation of each commune after deducting agricultural tax rice, water conservancy fees, etc., as mentioned above.

E- OTHER PROVISIONS

1. To reflect in the state budget the revenue and expenditure related to the submission of agricultural products, the state budget schedule will be supplemented as follows:

- Adding Clause 93, Type 8 to record "revenue from the submission of agricultural products" and Clause 83, Type 10 to record "expenditure for payment to lower-level budgets for the submission of agricultural products."

- For the commune budget, the revenue from the submission of agricultural products is recorded in Clause 16, Type 2.A of the commune budget schedule.

2. Strengthen inspection of procurement and submission of agricultural, forestry, aquatic, and marine products.

Centralizing the procurement and submission of agricultural, forestry, aquatic, and marine products to the State is of utmost importance for production and living conditions. Therefore, provincial, district, and commune authorities need to strengthen guidance on procurement and submission of agricultural products at higher levels, implementing unified management in accordance with Resolution No. 50-HĐBT of the Council of Ministers, without any agency, unit, or organization directly procuring at cooperatives and households without going through the People's Committees of the districts, counties, and communes.

All production and business units belonging to various sectors and levels responsible for procurement of agricultural, forestry, aquatic, and marine products in localities must go through the district and county levels and must pay the encouragement revenue from the submission of agricultural products into the local budget at the district or county bank where the agricultural products were sold.

3. Effective date.

Revenue from the submission of agricultural products shall take effect from January 1, 1984.

To facilitate settlement and ensure the revenue from the submission of agricultural products for the local budget without disrupting the accounting records of enterprises, it is now stipulated as follows:

a) For agricultural products that the locality (province, district, county, commune) has submitted to enterprises and central purchasing units from January 1, 1984, until the issuance of this Circular have not been settled for the revenue from the submission of agricultural products, enterprises and central purchasing units must jointly with the locality where the agricultural products were submitted prepare a receipt and delivery record for the Department of Finance (or District or County Finance Office if authorized by the Department) to process the settlement of the revenue from the submission of agricultural products for the local budget as previously instructed.

b) For four types of agricultural products (tobacco, pork, coffee, cinnamon) submitted from the beginning of 1984 to now, enterprises or central purchasing units have already settled the encouragement revenue from the submission of agricultural products for the local budget, and enterprises have also accounted for cost or product prices according to previous regulations, then they do not need to settle again, therefore, there is no need to reissue a record of the quantity of these agricultural products (tobacco, pork, coffee, cinnamon) that have already received encouragement revenue from the submission of agricultural products.

All encouragement revenues from the submission of tobacco, pork, coffee, and cinnamon previously stipulated are abolished and uniformly implemented according to this regulation.