Circular No. 50/2015/TT-BTC guiding the interest rate support for loans from banks to purchase temporary storage rice and paddy for the Winter-Spring 2014-2015 crop.

CIRCULAR

Guidelines for interest rate support on bank loans

to purchase temporary storage rice and paddy for the Winter-Spring 2014-2015 crop

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Implementing the Prime Minister's Directive at Decision No. 241/QD-TTg dated February 24, 2015 regarding the purchase of temporary storage rice and paddy for the Winter-Spring 2014-2015 crop;

The Minister of Finance hereby issues this Circular amending and supplementing certain Articles of Circular No. 133/2015/TT-BTC dated August 31, 2015, issued by the Minister of Finance guiding the financial management mechanism for the Vietnam Chamber of Commerce and Industry (hereinafter referred to as Circular No. 133/2015/TT-BTC).

The Minister of Finance issues this Circular guiding the provision of interest rate support on bank loans for the purchase of temporary storage rice and paddy for the Winter-Spring 2014-2015 crop.

Article 1. Scope of Regulation and Applicability

Article 1. This Circular guides the state budget's provision of interest rate support on loans taken out to purchase temporary storage rice and paddy for the Winter-Spring 2014-2015 crop in the Mekong Delta region for traders specified in Decision No. 241/QD-TTg dated February 24, 2015 of the Prime Minister on the purchase of temporary storage rice and paddy for the Winter-Spring 2014-2015 crop (hereinafter referred to as Decision No. 241/QD-TTg).

Article 2. This Circular applies to traders implementing the purchase of temporary storage rice and paddy for the Winter-Spring 2014-2015 crop assigned by the Vietnam Food Association according to Article 4 of Decision No. 241/QD-TTg and related agencies and organizations.

Article 2. Principles for considering interest rate support on bank loans for purchasing temporary storage rice and paddy

Clause 1. The state budget will provide 100% interest rate support on loans from commercial banks for traders within the scope defined in Article 1 of this Circular to purchase temporary storage rice and paddy for the Winter-Spring 2014-2015 crop, as directed by the Prime Minister in Decision No. 241/QD-TTg.

Clause 2. Interest rate support on loans for purchasing temporary storage rice and paddy will only be provided for loans from commercial banks designated by the State Bank of Vietnam according to Clause 2 of Article 5 of Decision No. 241/QD-TTg.

In cases where traders purchase temporary storage rice and paddy using other sources of capital, not through commercial bank loans as stipulated in Decision No. 241/QD-TTg and the guidance of the State Bank of Vietnam, they will not be eligible for state budget support.

Loans eligible for interest rate support are those repaid before and within the due date at the time of interest rate support, with no support provided for overdue loans.

The quantity of rice and paddy eligible for interest rate support for each trader is based on the actual quantity of temporary storage rice and paddy purchased by the trader but shall not exceed the quantity specified in the allocation documents for the purchase of temporary storage rice and paddy for the Winter-Spring 2014-2015 crop issued by the Vietnam Food Association, and must ensure that the total quantity of temporary storage rice and paddy does not exceed one million tons of milled rice as stipulated in Article 1 of Decision No. 241/QD-TTg.

Temporary storage rice and paddy include all types of rice and paddy (including white rice, glutinous rice, fragrant rice, and broken grains).

The period for purchasing temporary storage is from March 1, 2015 to April 15, 2015.

The period during which interest rate support on bank loans can be received is the actual storage period from the date of purchasing rice and paddy as stipulated in Clause 6 of this Article until the date of selling temporary storage rice and paddy, but not exceeding June 30, 2015.

The basis for calculating the supported interest rate is the actual purchase price according to market prices (excluding value-added tax) for each type of rice and paddy.

The basis for determining the actual purchase price according to market prices is the purchase and sale contract, contract settlement documents, warehouse entry documents, purchase invoices, payment transfer documents, or other relevant documents presented by the trader.

In cases where traders purchase temporary storage paddy, it will be converted at a ratio of two (2) units of paddy to one (1) unit of rice.

In cases where traders purchase raw rice for processing into finished rice, conversion to quantity and price from raw rice to finished rice will not be allowed.

Clause 9. The supported interest rate is the interest rate on loans from commercial banks under credit contracts, but shall not exceed seven percent (7%) per annum as stipulated in the guiding documents of the State Bank of Vietnam.

Clause 10. The amount of interest support on bank loans from the state budget for the purchase of temporary storage rice and paddy as directed by the Prime Minister shall be recorded as other income in the current period of the trader and subject to corporate income tax according to current regulations.

Article 3. Documents for interest rate support on bank loans for temporary storage of paddy and rice

The documents for consideration of interest rate support on bank loans include:

1. A letter requesting state budget support for interest rates on bank loans for traders purchasing paddy and rice for temporary storage (including full provision of the unit's name, address, tax code, amount requested, and account number for disbursement of support funds).

Specifically, the request for support from the Northern Foodstuff Corporation and the Southern Foodstuff Corporation must consolidate the support requests of their affiliated units.

2. A letter allocating purchase quotas for paddy and rice for temporary storage to traders issued by the Vietnam Food Association.

3. A certified copy (or a copy accompanied by the original for verification) of the credit agreement and promissory note between the trader and the commercial bank where the trader borrowed funds regarding the trader borrowing money from the bank to purchase paddy and rice for temporary storage during the 2014-2015 winter-spring season as stipulated in Decision No. 241/QĐ-TTg.

4. An inventory list of purchases, sales, and stock of paddy and rice purchased for temporary storage from the time the trader began temporary storage within the period specified in Clause 6, Article 2 of this Circular to the end of the interest rate support period (June 30, 2015). The inventory list must be confirmed by the leadership of the Department of Industry and Trade where the trader has temporary storage facilities according to Form No. 01 attached to this Circular.

In cases where traders implement purchases and temporary storage of paddy and rice in multiple locations, they must prepare an inventory list of purchases, sales, and stock of paddy and rice purchased for temporary storage for each location with confirmation from the leadership of the Department of Industry and Trade (where the trader has temporary storage facilities). Based on these confirmed inventory lists, the trader compiles a consolidated inventory list of purchases, sales, and stock of temporarily stored paddy and rice and bears responsibility for the accuracy of the compiled data.

5. An inventory list of outstanding loan balances from banks for purchasing paddy and rice for temporary storage and interest payments arising from the date of borrowing until the date of loan repayment or the end of the temporary storage period but not later than June 30, 2015 (the inventory list must be confirmed by the leadership of the commercial bank where the trader borrowed funds according to Form No. 02 attached to this Circular).

In cases where traders implement temporary storage within the prescribed timeframe but the loan disbursement for temporary storage occurs after the purchase of paddy and rice for temporary storage, the trader must provide a detailed explanatory document specifying the amount disbursed under each credit agreement and promissory note used to pay for the temporarily stored goods purchased before the bank disbursed the loan. This explanatory document must be confirmed by the commercial bank where the trader borrowed funds.

6. A calculation table of interest rates on bank loans for purchasing paddy and rice for temporary storage requesting support (according to Form No. 03 attached to this Circular).

Article 4. Procedure for disbursement of support funds to traders

1. For the Northern Foodstuff Corporation and the Southern Foodstuff Corporation

a) The Northern Foodstuff Corporation and the Southern Foodstuff Corporation guide their affiliated units to prepare interest rate support application documents and consolidate them according to the provisions of Article 3 of this Circular to submit to the Ministry of Finance. The corporations must bear responsibility for the accuracy of the consolidated data;

b) The Northern Foodstuff Corporation and the Southern Foodstuff Corporation must directly submit or send via postal service one set of documents as stipulated in Article 3 of this Circular to the Ministry of Finance (Enterprise Financial Department) by October 1, 2015;

c) The Ministry of Finance will accept the consolidated documents of the Northern Foodstuff Corporation and the Southern Foodstuff Corporation (will not accept documents from affiliated units of the corporation). The review of the interest rate support application will be conducted once after the end of the interest rate support period and will be disbursed through the corporation's account;

d) After receiving all required documents, the Ministry of Finance will review the documents and process the interest rate support for the Northern Foodstuff Corporation and the Southern Foodstuff Corporation. The review of the documents and disbursement of support funds to traders must be completed no later than November 30, 2015;

If the corporation fails to provide complete documents or does not meet the conditions for interest rate support, within 15 working days from receipt of the documents, the Ministry of Finance (Enterprise Financial Department) will issue a document requesting the corporation to supplement the documents according to regulations or notify the corporation of the reasons for not considering interest rate support. In the document requesting supplementary documents, the Ministry of Finance must specify the specific time for the corporation to complete the documents.

e) After receiving the support funds from the Ministry of Finance deposited into the corporation's account, within five working days, the corporation must redistribute the funds to its affiliated units.

2. For other traders

a) After the end of the temporary storage period (April 15, 2015), traders must report to the local Department of Finance where the trader's main office is located on the results of temporary storage according to Form No. 04 attached to this Circular by May 31, 2015;

b) Based on the trader's report on the results of temporary storage, the local Department of Finance where the trader's main office is located will develop a plan for the estimated support funds for interest rates on loans for temporary storage of paddy and rice for traders in the area according to Form No. 05 attached to this Circular and submit it to the People's Committee of the province (city) for submission to the Ministry of Finance by June 15, 2015;

The estimated support funds are determined according to the following formula:

Support fund for interest rates = Value of temporary storage purchases up to April 15, 2015 (or outstanding loan balance from banks for temporary storage purchases up to April 15, 2015 if the outstanding loan balance is lower than the value of temporary storage purchases) x Interest rate support period (4 months) x Average interest rate of commercial banks where the trader borrowed funds for temporary storage of paddy and rice (but not exceeding 7% per annum) / 12 months.

c) Based on the proposal of the provincial (city) People's Committee, the Ministry of Finance will allocate additional targeted funds from the central budget to the local budget from the 2015 central budget expenditure estimate for economic affairs approved by the National Assembly to implement the policy of supporting interest rates on loans for temporary storage of paddy and rice.

d) Not later than October 1, 2015, the trader must submit directly or via postal service one complete set of documents as prescribed in Article 3 of this Circular to the Department of Finance where the trader's main office is located;

đ) After receiving all required documents, the Department of Finance shall be responsible for examining the documents and submitting to the People's Committee of the province (city) a decision to allocate interest subsidy funds to the trader in the form of a payment order to the trader's account at the State Treasury. The examination of interest subsidies will be conducted once after the end of the interest subsidy period, and the allocation of funds to the trader must be completed no later than November 30, 2015;

e) In cases where the trader has not provided complete documents or does not meet the conditions for interest subsidy, within fifteen working days from the date of receipt of the documents, the Department of Finance shall issue a document requesting the trader to supplement the documents according to regulations or notify the trader of the reasons for not considering the interest subsidy. In the document requesting supplementary documents, the Department of Finance must specify the specific time for the trader to complete the documents;

g) At the end of the fiscal year, the People's Committee of the province (city) shall compile and report the final settlement of interest subsidy funds for bank loans to purchase temporary storage rice and paddy to the Ministry of Finance for supplementation to the locality in case of insufficient funding sources or repayment to the central budget for unused funds;

Article 5. Responsibilities of organizations and state agencies related to interest subsidy for bank loans to purchase temporary storage rice and paddy

1. Responsibilities of organizations and state agencies related to interest subsidy for bank loans to purchase temporary storage rice and paddy:

a) The People's Committees of provinces and centrally-administered cities in the Mekong Delta shall direct the Departments of Industry and Trade to inspect and confirm the inventory lists of rice and paddy temporarily stored in warehouses located in their respective provinces by traders assigned the task of temporary storage (including cases where the trader does not have an office in the province);

b) The People's Committees of provinces and centrally-administered cities where the trader's main office is located shall be responsible for approving the plan of anticipated interest subsidy funds for purchasing temporary storage rice and paddy by traders on their territory, compiled by the Department of Finance and submitted to the Ministry of Finance before June 15, 2015; directing the Department of Finance to examine the interest subsidy application documents and submit to the People's Committee of the province (city) a decision to allocate interest subsidy funds to traders as stipulated in Clause 2, Article 4 of this Circular; compiling and reporting the final settlement of interest subsidy funds for bank loans to purchase temporary storage rice and paddy at the end of the fiscal year and sending it to the Ministry of Finance for supplementation of funds or repayment of the central budget for unused funds;

c) The Departments of Industry and Trade of provinces and centrally-administered cities in the Mekong Delta shall base on the relevant documents and materials presented by traders according to Clause 8, Article 2 of this Circular to check the quantity purchased, purchase price, purchase value, stock quantity, and stock value of rice and paddy during the temporary storage period; confirm the inventory list of rice and paddy temporarily stored by the trader according to the model form number 01 issued together with this Circular, while bearing responsibility for the accuracy of the confirmed figures;

d) The Departments of Finance of provinces and centrally-administered cities where the trader's main office is located shall be responsible for:

- Compiling the plan of interest subsidy funds for bank loans to purchase temporary storage rice and paddy by traders and submitting it to the People's Committee of the province (city) for approval and submission to the Ministry of Finance before June 15, 2015;

- Inspecting and examining the trader's documents according to Article 3 of this Circular and submitting to the People's Committee of the province (city) a decision to allocate interest subsidy funds to traders as stipulated in Clause 2, Article 4 of this Circular. Bearing responsibility for the accuracy of the figures in the examination based on the documents;

- On the basis of the decision to allocate interest subsidy funds by the People's Committee of the province (city), the Department of Finance shall cooperate with the State Treasury to process the allocation of interest subsidy funds to traders in the form of a payment order;

- Compiling the situation of the final settlement of interest subsidy funds for bank loans to purchase temporary storage rice and paddy by traders on their territory at the end of the fiscal year and reporting it to the People's Committee of the province (city) for settlement of interest subsidy funds with the Ministry of Finance;

- At the end of the temporary storage period, taking the lead or cooperating with the Ministry of Finance to organize the inspection of the interest subsidy loan application documents for purchasing temporary storage rice and paddy by traders and the accounting of the state budget funds allocated for support according to Article 6 of this Circular. Compiling the post-storage inspection situation to report to the Ministry of Finance according to Point b, Clause 2, Article 6 of this Circular;

- Storing the documents and materials for the final settlement and allocation of interest subsidy funds to traders;

đ) The State Treasury at the location where the trader's main office is located shall cooperate with the Department of Finance to process the allocation of interest subsidy funds to traders in the form of a payment order;

e) Commercial banks assigned by the State Bank of Vietnam to provide loans for temporary storage shall be responsible for confirming the outstanding loan balance and accrued interest arising from the implementation of purchasing temporary storage rice and paddy for the 2014-2015 winter-spring season for traders according to model form number 02 issued together with this Circular, while bearing responsibility for the accuracy of the confirmed figures;

g) The Vietnam Food Association shall be responsible for:

- Announcing the list of traders who have been assigned purchase targets for temporary storage rice and paddy by the Association to the Ministry of Finance, Departments of Industry and Trade of provinces and centrally-administered cities in the Mekong Delta, and Departments of Finance of provinces and centrally-administered cities where the trader's main office is located for these agencies to use as a basis for considering confirmation or examination of the interest subsidy application documents for traders according to regulations;

- Inspecting and supervising the organization of purchasing temporary storage rice and paddy for traders in accordance with Decision No. 241/QĐ-TTg;

2. The Ministry of Finance shall be responsible for:

a) Examine and appraise the files of the Northern Foodstuff Corporation and the Southern Foodstuff Corporation in accordance with the provisions set forth in Article 3 of this Circular; implement the issuance of interest subsidy funds for bank loans to purchase rice and grain reserves in accordance with Decision No. 241/QĐ-TTg to the Corporations while being responsible for the accuracy of the appraisal figures based on the files of the two aforementioned Corporations;

b) Aggregate the budget funding plan based on the proposal of the People's Committee of the province (city) to provide supplementary targeted funding from the central budget to the local budget to implement the policy of interest subsidies for loans to purchase rice and grain reserves;

c) At the end of the fiscal year, based on the final report on interest subsidy funds for bank loans to purchase rice and grain reserves submitted by the People's Committee of the province (city), the Ministry of Finance will provide additional funding to the locality in case of insufficient funding sources or request the locality to refund the central budget for unused funds;

d) Organize post-reserve inspections of the Northern Foodstuff Corporation and the Southern Foodstuff Corporation in accordance with the provisions stipulated in point a, Clause 2, Article 6 of this Circular;

đ) Aggregate the results of post-reserve inspections conducted by the Departments of Finance; coordinate with the Department of Finance to review the post-reserve inspections of some traders in accordance with the provisions stipulated in point b, Clause 2, Article 6 of this Circular.

3. Traders who undertake the purchase of rice and grain reserves shall be responsible for:

a) Implementing the purchase of rice and grain reserves according to the directives of the Prime Minister in Decision No. 241/QĐ-TTg under the supervision of the Ministry of Agriculture and Rural Development, the Ministry of Industry and Trade, the People's Committees of provinces and centrally-administered cities in the Mekong Delta region, and the Vietnam Food Association;

b) Report to the Department of Finance of the locality where the trader has its main office the results of purchasing reserves according to form number 04 issued together with this Circular before May 31, 2015;

c) Be responsible for the authenticity of the import, export, and inventory records of rice and grain reserves and the credit contracts for purchasing rice and grain reserves, and at the same time be responsible for the accuracy of the figures reported in the application file for interest subsidies;

d) Open a deposit account at the State Treasury where the enterprise has its main office to receive interest subsidy funds for bank loans to purchase rice and grain reserves;

đ) Retain the files and certificates of imports, exports, and bank borrowings, and maintain separate accounting books to record the purchase of rice and grain reserves according to the directives of the Prime Minister in Decision No. 241/QĐ-TTg;

e) Be responsible for the business efficiency of purchasing rice and grain reserves;

g) Be liable under the law if there is a violation of financial and accounting regulations in implementing rice and grain reserves;

h) Must refund the state budget the amount of interest subsidy funds provided in cases where state management agencies inspect and discover any irregularities. The trader must also pay additional interest on the amount to be refunded for late payment;

The determination of the amount of late interest is calculated from the date the trader receives the money until it is refunded to the state budget at an interest rate equal to 150% of the average interest rate of commercial banks where the trader borrowed to purchase rice and grain reserves;

Article 6. Post-reserve inspection organization

1. Inspection content:

a) Inspect the accuracy and reasonableness of the application file for interest subsidies for bank loans to purchase rice and grain reserves for the 2014-2015 winter-spring season established by the trader;

b) Inspect the trader's tracking and accounting of the interest subsidy funds from the state budget;

2. Inspection organization:

a) In necessary cases, the Ministry of Finance will conduct inspections in accordance with the contents stipulated in Clause 1 of this Article for the Northern Foodstuff Corporation and the Southern Foodstuff Corporation;

The inspection must be notified in writing to the Corporation prior to the inspection. Upon completion of the inspection, an Inspection Record must be prepared detailing the implementation status, existing issues, recommendations, and solutions;

b) At the end of the reserve period, the Department of Finance will conduct an inspection of the establishment of the application file for interest subsidies for purchasing rice and grain reserves by traders whose main offices are located within the locality;

The inspection must be notified in writing to the trader prior to the inspection. Upon completion of the inspection, an Inspection Record must be prepared detailing the implementation status, existing issues, recommendations, and solutions, and summarized and sent to the Ministry of Finance within six months from the completion of the final settlement of interest subsidy funds with the Ministry of Finance;

c) In necessary cases, the Ministry of Finance will coordinate with the Department of Finance to review the results of post-reserve inspections at some traders. The review will be notified to the trader and the Department of Finance prior to its implementation;

Article 7. Effective Date

1. The Director of the Finance and Planning Department is responsible for guiding and supervising the implementation of this Circular.

During the implementation process, if there are difficulties or obstacles, units are requested to promptly reflect them to the Ministry of Finance for guidance on handling./.