Decision No. 37/2003/QĐ-TTg stipulates the import of urea for reserve circulation with the purpose of stabilizing domestic selling prices. The reserve period is six months, enterprises are allowed to borrow from banks to import and the state supports interest rates. Value Added Tax (VAT) is only paid when sold out of the reserve warehouse.
Scope of application
Ministry of Agriculture and Rural Development, Ministry of Trade, State Bank of Vietnam, designated enterprises.
Key points
- Enterprises assigned the task of reserve circulation are to self-finance through commercial banks to import 100,000 tons of urea within six months (from March 20, 2003), the state will support 100% of the loan interest rate.
- Urea is only subject to Value Added Tax (VAT) when sold out of the reserve warehouse.
- Ministry of Agriculture and Rural Development designates 2-3 enterprises to import fertilizers in March 2003.
- State Bank of Vietnam ensures sufficient loan capital for enterprises assigned the task of importing.
- Ministry of Finance guides the implementation mechanism for reserve circulation.
🌐 Social impact of this document
- Positive impact: Helps stabilize domestic urea prices, ensuring supply to farmers.
- Negative impact: Borrowing costs and interest rates supported by the state may put financial pressure on the state budget.
❓ Frequently asked questions
What is the duration of the reserve circulation period?
Six months, starting from March 20, 2003.
What percentage of interest rate is the enterprise supported for borrowing?
100% of the loan interest rate.
When must urea be subject to Value Added Tax (VAT)?
Only when sold out of the reserve warehouse.
How many enterprises are designated to import fertilizers?
Two to three state-owned enterprises specializing in fertilizer trading and import.
Full text
Pursuant to …;
Regarding the import of urea for circulation reserve
__________________
PRIME MINISTER
Pursuant to the Government Organization Law dated December 25, 2001;
Considering the proposal of the Minister of Trade and the Minister of Agriculture and Rural Development,
DECISION:
Article 1. To implement a circulation reserve of 100,000 tons of urea to contribute to stabilizing the domestic selling price of urea fertilizer. The period for the circulation reserve is six months, starting from March 20, 2003. The enterprise assigned the task of circulation reserve shall borrow funds from commercial banks to import the allocated quantity of urea for the circulation reserve; the state budget will support 100% of the interest on bank loans during the implementation period of the reserve.
This imported urea only needs to pay VAT when it is sold out of the storage warehouse.
Entrust the Ministry of Agriculture and Rural Development to coordinate with the Ministry of Trade to designate two to three state-owned enterprises specializing in trading and importing fertilizers (enterprises that import large quantities of fertilizers; have sound finances and warehouses capable of ensuring reserves) to import in March 2003.
Article 2. The State Bank of Vietnam directs commercial banks to ensure sufficient and timely loan capital for enterprises assigned the task of importing by the Ministry of Agriculture and Rural Development; the Ministry of Finance provides specific guidance on the mechanism for implementing the aforementioned circulation reserve.
Article 3. The Ministry of Agriculture and Rural Development shall cooperate with the Ministry of Finance and relevant commercial banks to establish a monitoring mechanism for the aforementioned urea reserve to ensure adequate availability at the warehouses of the enterprises during the circulation reserve period; closely monitor market supply and demand trends for various types of fertilizers, and promptly recommend measures to the Prime Minister to address issues arising beyond the authority of the ministries and sectors.
Article 4. This Decision takes effect from the date of issuance.
Article 5. The Ministers of Agriculture and Rural Development, Finance, Trade, and the Governor of the State Bank of Vietnam are responsible for enforcing this Decision.
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