Decision No. 63/2010/QĐ-TTg On policies to support reducing post-harvest losses for agricultural and aquatic products

Pursuant to …;

On policies to support reducing post-harvest losses for agricultural and aquatic products

harvesting of agricultural and aquatic products

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PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to Resolution No. 48/NQ-CP dated September 23, 2009 of the Government on mechanisms and policies to reduce post-harvest losses for agricultural and aquatic products;

Considering the proposal of the Minister of Agriculture and Rural Development,

DECISION:

Article 1. The provision of interest rate subsidies for long-term loans denominated in Vietnamese dong for organizations and individuals through the Agricultural Bank of Vietnam to purchase domestic production machinery and equipment aimed at reducing post-harvest losses shall be regulated as follows:

1. Organizations and households eligible for borrowing and interest rate subsidies include:

a) Cooperatives, cooperative groups, households, and individuals with legal residential addresses confirmed by the People's Committee of the commune as directly engaged in production and serving production activities;

b) Enterprises that have signed and implemented contracts for the consumption of agricultural products and mechanized agricultural production services with farmers.

2. Borrowing and interest rate subsidies shall apply to the following types of machinery and equipment:

a) Machinery for plowing, planting, caring, harvesting rice, corn, coffee, tea, sugar cane; drying machines, basic materials for drying yards (rice, corn, coffee, cashew nuts, black pepper) up to an area of 1,000 square meters;²;

b) Machinery and equipment for aquaculture seed production; construction materials and equipment for pond (lake) improvement for aquaculture; equipment and means for aquaculture, harvesting, and transporting aquatic products;

c) Refrigeration equipment, freezing equipment, ice-making equipment on fishing vessels, cold storage facilities for long-term sea operations.

3. The machinery and equipment specified in Clause 2 of this Article must meet the following conditions:

a) Produced by organizations and individuals with a domestic production value of over 60%;

b) Have product labels in accordance with the provisions of the law on product labeling.

4. The maximum loan amount for purchasing domestic production machinery and equipment as stipulated in Clause 2 of this Article shall be equal to 100% of the value of goods.

5. The state budget will subsidize 100% of the interest rate for the first two years, and 50% of the interest rate from the third year onwards.

6. The Agricultural Bank of Vietnam shall implement lending according to the provisions of this Article; the state budget will compensate for the subsidized interest rate.

Article 2. The application of investment development credit interest rates as currently prescribed for organizations, households, and individuals is as follows:

1. For organizations, households, and individuals borrowing funds to purchase machinery and equipment to reduce post-harvest losses including: rice milling equipment with high rice recovery rates (up to 70%); wet processing coffee machinery and equipment, and equipment to improve coffee quality (steam, wet polishing...), and accompanying wastewater treatment facilities; machinery for dehusking and polishing cashew nuts; high-quality pepper processing lines; membrane filtration equipment (coating), irradiation, hot water sterilization equipment for fresh fruits, and packing house systems at wholesale markets.

2. For projects investing in constructing warehouses with a capacity of 4 million tons of rice and corn, cold storage facilities for aquatic products (including cold storage facilities on fishing vessels), fruits, and temporary storage facilities for coffee.

3. The state budget will cover the difference between commercial interest rates and investment development credit interest rates; the Agricultural Bank of Vietnam shall implement lending according to the provisions of this Article.

Article 3. Economic entities investing in projects to construct warehouses with a capacity of 4 million tons of rice, cold storage facilities for fruits and aquatic products, and temporary storage facilities for coffee according to planning shall be exempted from land rental fees under Decision No. 57/2010/QĐ-TTg dated September 17, 2010 of the Prime Minister; they shall be supported by the State with 20% of the cost of land clearance, 30% of the cost of completing technical infrastructure outside the fence, and be exempted from corporate income tax for the first three years of operation and reduced by 50% for the next two years.

Article 4. Investment projects in the field of manufacturing agricultural machinery and reducing post-harvest losses shall enjoy special preferential investment policies as currently prescribed. A zero percent import tariff shall be applied to agricultural machinery and equipment that cannot yet be manufactured domestically.

Article 5. Science and technology support policy:

1. The state budget will support 100% of the costs for the following cases:

a) Organizations, households, and individuals purchasing seeds for the first trial application of advanced technical rice and corn varieties with high yield and quality;

b) Organizations and individuals purchasing patents to produce or cooperate with other organizations and individuals to produce machinery and equipment capable of widespread application domestically to reduce post-harvest losses;

c) Registering intellectual property rights for innovative farmer products with wide domestic applicability recognized by the Ministry of Agriculture and Rural Development or the Ministry of Science and Technology.

2. Projects applying science and technology to reduce post-harvest losses shall be included in the category eligible for cost transfer mechanism support from the National Innovation Fund.

Article 6. Implementation organization:

1. The Ministry of Agriculture and Rural Development shall be responsible for:

a) To take the lead and coordinate with the Ministry of Industry and Trade, the Ministry of Finance, and the State Bank to specify the list of machinery and equipment benefiting from the support policies as stipulated in Articles 1 and 2 of this Decision;

b) To approve the planning of the 4 million-ton rice reserve system in the Mekong Delta region, serving as a basis for supporting investment projects;

c) To coordinate with the Ministry of Industry and Trade to publish the list of machinery and equipment, domestic production value ratios, and suppliers as a basis for the Agricultural Bank of Vietnam to implement lending; to review and supplement annually;

d) To coordinate with the Ministry of Science and Technology to develop regulations on supporting technology transfer as stipulated in Article 5 of this Decision;

e) To coordinate with the People's Committees of provinces and centrally-administered cities, relevant ministries, and sectors to inspect and supervise the implementation of this Decision, reporting periodically every six months to the Prime Minister.

2. The State Bank of Vietnam shall coordinate with the Ministry of Finance in guiding interest rate compensation; directing the Agricultural Bank of Vietnam to implement lending according to the provisions of this Decision.

3. The Ministry of Finance shall take the lead and coordinate with the State Bank of Vietnam to guide the provision of interest rate subsidies and implement such subsidies in accordance with the provisions of this Decision. Coordinate with the Ministry of Agriculture and Rural Development and the Ministry of Industry and Trade to review types of machinery and equipment that have not yet been produced domestically, encouraging their importation on a time-limited basis (zero percent tariff).

4. The Ministry of Industry and Trade shall take the lead and coordinate with relevant ministries and sectors to review projects under the key mechanical program; plan agricultural machinery production facilities, urge the implementation of agricultural machinery manufacturing projects that meet production requirements, and reduce post-harvest losses.

5. The Ministry of Planning and Investment shall coordinate with the Ministry of Finance to allocate the annual budget for interest rate subsidies in accordance with the provisions of this Decision.

6. The Ministry of Information and Communications shall take the lead and coordinate with the Ministry of Agriculture and Rural Development to direct and guide information and communication agencies to publicize and disseminate policies, goods, and target groups for which state support funds are available so that the people can be aware and access these resources.

7. People's Committees of provinces and centrally governed cities:

a) Direct and guide commune-level authorities to confirm eligible borrowers under this Decision;

b) Direct provincial departments and agencies to implement planning and reallocation of production, concretizing programs and projects aimed at reducing post-harvest losses;

c) Implement support policies for organizations and individuals as stipulated in Article 3 of this Decision.

8. Organizations and individuals:

a) Fulfill loan procedures in accordance with the guidance of lending institutions;

b) Bear legal responsibility for the use of borrowed funds, ensuring they are used for the intended purpose, and fully repaying principal and interest in accordance with the prescribed deadlines.

Article 7. This Decision takes effect from December 1, 2010.

Article 8. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of People's Committees of provinces and centrally governed cities, Chairpersons of Management Boards, and General Directors of the Vietnam Agricultural and Rural Development Bank are responsible for implementing this Decision./.