Circular No. 41/2003/TT-BTC guiding the implementation of Article 5 of Decision No. 132/2002/QĐ-TTg dated October 8, 2002 of the Prime Minister on the resolution of production land and residential land for ethnic minority people in place in the Central Highlands

 CIRCULAR

Regarding the resolution of production land and residential land for ethnic minority people in place in the Central Highlands

thiểu số tại chỗ ở Tây Nguyên

Implementing Decision No. 132/2002/QD-TTg dated October 8, 2002 of the Prime Minister on the resolution of production land and residential land for ethnic minority people in place in the Central Highlands;

After reaching consensus with the State Bank (Circular No. 378/NHNN-CSTT dated April 16, 2003 of the State Bank);

The Ministry of Finance guides the implementation of Article 5 of this Decision as follows:

I- SUPPORT FROM THE STATE BUDGET.

1- The central state budget supports at a rate of four million dong per hectare for the actual area of land cleared under the approved project by the competent state agency, including both land for production and residential purposes (without distinguishing between land that must be cleared for one crop season or two rice crop seasons or upland fields). In cases where households or individuals from ethnic minorities are allocated land according to Decision No. 132/2002/QD-TTg dated October 8, 2002 of the Prime Minister and clear the land themselves, they will also be supported at the rate of four million dong per hectare.

2- The central state budget supports compensation costs for clearing land, including profits (if any), not exceeding four million dong per hectare for annual crop land when reclaiming land from households or individuals.

3- Specific support levels for each locality are determined based on decisions to reclaim land (reclaiming orchards), decisions to allocate land (handover records or land with orchards). Based on the central state budget support level and the specific situation of the locality, the Department of Finance and Price Construction determines specific support levels to submit for approval by the Provincial People's Committee.

II- RECEIVING ORCHARDS AND ALLOCATING RECLAIMED ORCHARDS TO HOUSEHOLDS

1- Reassessing the value of reclaimed orchards.

- The basis for reassessing the value of orchards (excluding the value of land use rights) is the current status of the orchard calculated based on the market price of orchards at the time of handover, while also considering the actual investment value in the orchard up to the handover date.

- Establish a committee to reassess the value of orchards. Members of the committee include: the leader of the Department of Finance and Price - Chair of the Committee, representatives from the Department of Natural Resources and Environment, the Department of Agriculture and Rural Development, and other members decided by the Provincial People's Committee to suit local conditions.

2- Receiving reclaimed orchards and allocating them to households.

2.1- For state-owned enterprise orchards.

a- For orchards invested with state budget funds.

Based on the results of reassessing the value of the orchards, state-owned enterprises:

- Adjust increases or decreases in accounting records for the difference between the reassessed value of the orchards and the recorded value. Prepare a handover record for the orchards with the agency assigned by the Provincial People's Committee to receive the orchards (the District People's Committee).

- After completing the handover, reduce the state budget capital according to the actual value of the handed-over orchards. Report to the superior management authority and the Ministry of Finance (for centrally-managed state-owned enterprises), the Department of Finance and Price (for locally-managed state-owned enterprises).

b- For orchards invested with credit funds.

Based on the results of reassessing the value of the orchards, state-owned enterprises:

- Together with the lending financial institution and the District People's Committee, prepare a handover record for the orchards and freeze the remaining loan balance at the time of handover; prepare a handover record for the orchards and transfer the debt to the District People's Committee.

- Adjust increases or decreases in accounting records for the difference between the reassessed value of the orchards and the recorded value. If the value of the orchards on the enterprise's accounting books (loan amount) is greater than the reassessed value, the local state budget will support the enterprise to repay the financial institution. If the value of the orchards on the enterprise's accounting books is less than the reassessed value, the difference is recorded as income for the local state budget. After handing over the orchards, the enterprise reduces the loan amount from financial institutions according to the recorded value on its accounting books.

c- For orchards invested with other sources of funds.

For orchards reclaimed by state-owned enterprises funded from post-tax profits (enterprise funds), or from other sources of funding (funds raised from organizations and individuals), the enterprise will be paid by the local state budget according to the value of the orchards on its accounting books. Any difference (if any) between the reassessed value and the recorded value on the enterprise's accounting books is recorded as income (reassessed value higher than recorded value) or expenditure (reassessed value lower than recorded value) for the local state budget.

2.2- For orchards reclaimed from private enterprises and individuals.

In this case, the local state budget is responsible for paying in cash to private enterprises and individuals immediately upon receiving the handover of the orchards as follows:

- Compensation for land damage according to Decree No. 22/1998/NĐ-CP dated April 24, 1998 of the Government on compensation for damage when the State reclaims land for national defense, security, national interests, and public interest;

- The reassessed value of the orchards.

2.3- The District People's Committee receives the orchards and allocates them to households according to the reassessed value. Households receiving the orchards must sign a debt acceptance contract with the District People's Committee according to the reassessed value of the orchards.

3- Recording debts when allocating long-term orchards to households.

3.1- The handover of long-term orchards to households is carried out simultaneously with the handover of land with long-term orchards through a signed agreement between the District People's Committee and the household receiving the long-term orchards. The handover record for long-term orchards is prepared in four copies:

- One copy kept by the District Finance Office;

- One copy kept by the enterprise or individual whose orchard was reclaimed;

- One copy kept by the household receiving the long-term orchard;

- One copy transferred to the Department of Finance and Price.

The main contents of the handover record for perennial orchards include: the source of capital forming the orchard, the transferring party (representative of the provincial People's Committee), the recipient of the orchard, other related parties (enterprises or financial institutions), location, site, area (extracts from maps), current state of crops, the value of the orchard according to reassessment, the payment time for the orchard value, and other relevant information.

3.2- Households receiving perennial orchards (land allocation) sign a debt acknowledgment for the value of the orchard with the provincial People's Committee (Provincial Finance Department). During the period before debt repayment, no interest is payable. The debt repayment period is consistent with the economic cycle, harvest season, and remaining operating time of the orchard as decided by the provincial People's Committee, but not exceeding 10 years.

Households repaying the debt one year ahead of schedule will have a reduction of 4% on the total value of the acknowledged debt, and for each additional year beyond two years, an additional 4% reduction on the total value of the acknowledged debt.

3.3- The central budget shall pay to financial institutions the following amounts:

- Interest on loans that state-owned enterprises must pay to financial institutions up to the handover date of the orchard;

- Interest on loans during the debt moratorium period;

- Amounts reduced for households repaying debts to financial institutions ahead of schedule.

Debt recovery and settlement.

4.1- The Chairpersons of the People's Committees of Lam Dong, Dak Lak, Gia Lai, and Kon Tum provinces shall direct the recovery of debts from households allocated land with orchards in their respective localities.

4.2- Debt recovery and settlement shall be carried out as follows:

- Debts recovered from orchards funded by the State Budget, orchards reclaimed from private enterprises and individuals, shall be remitted to the local budget;

- Debts recovered from orchards funded by credit shall be paid to financial institutions, with any surplus remitted to the local budget;

- Debts recovered from orchards of enterprises funded by other sources shall be paid to the enterprise, if the enterprise has been dissolved, then remitted to the local budget;

Debts remitted to the local budget shall be used for investment in infrastructure such as transportation, irrigation, electricity, and clean water in accordance with current regulations on basic construction management.

III- IMPLEMENTATION ORGANIZATION.

1- The People's Committees of Lam Dong, Dak Lak, Gia Lai, and Kon Tum provinces shall be responsible for:

- Implementing this Circular in accordance with its guidelines, deciding the payment time for the value of perennial orchards;

- Directing the People's Committees at the district level to accept and allocate orchards to households, sign debt acknowledgments, recover debts, and settle debts.

2- The Departments of Finance and Prices of Lam Dong, Dak Lak, Gia Lai, and Kon Tum provinces shall be responsible for:

- Advising the respective People's Committees on implementing this Circular;

- Guiding the reassessment of the value of perennial orchards being reclaimed and handed over to households and individuals;

- Submitting to the provincial People's Committee for decision on the payment period for households to repay the value of perennial orchards.

3- This Circular shall take effect fifteen days from the date of publication in the Official Gazette.

4- In the course of implementation, if any difficulties arise, they should be reported to the Ministry of Finance by the People's Committees of Lam Dong, Dak Lak, Gia Lai, and Kon Tum provinces for study and resolution./.