Circular No. 65/2012/TT-BTC guiding interest rate support for bank loans to purchase temporary storage rice and paddy for the Winter-Spring crop year 2011-2012.

CIRCULAR

Guidelines for interest rate support on bank loans to purchase temporary storage rice and paddy from the Winter-Spring crop year 2011-2012

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Pursuant to the Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decision No. 287/QĐ-TTg dated March 9, 2012 of the Prime Minister regarding the purchase of temporary storage rice and paddy from the Winter-Spring crop year 2011-2012;

After reaching consensus with the State Bank of Vietnam through Circular No. 1848/NHNN-TD dated March 30, 2012;

3. Domestic and foreign organizations and individuals meeting the conditions to provide dredging and maintenance services for maritime channels according to the law.

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 from the Winter-Spring crop year 2011-2012.

Article 1. Scope of Regulation and Applicability

This Circular applies to traders implementing the purchase of temporary storage rice and paddy from the Winter-Spring crop year 2011-2012 assigned by the Vietnam Food Association according to Article 2 of Decision No. 287/QĐ-TTg dated March 9, 2012 of the Prime Minister.

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

1. The state budget will provide 100% interest rate support on commercial bank loans for traders falling under the provisions of Article 1 of this Circular to purchase temporary storage rice and paddy from the Winter-Spring crop year 2011-2012 as directed by the Prime Minister in Decision No. 287/QĐ-TTg dated March 9, 2012.

2. Interest rate support is provided for loans repaid before and within the due date at the time of interest rate support, and not for overdue loans.

3. The quantity of rice and paddy eligible for interest rate support for each enterprise is based on the actual quantity purchased for temporary storage but shall not exceed the maximum quantity specified in the allocation documents for the purchase of temporary storage rice and paddy from the Winter-Spring crop year 2011-2012 issued by the Vietnam Food Association.

4. The period for purchasing temporary storage is from March 15, 2012 to April 30, 2012.

5. The temporary storage period is the actual temporary storage period from March 15, 2012 to June 15, 2012.

6. The period for interest rate support on bank loans is the actual temporary storage period from the date of purchasing rice and paddy as stipulated in Clause 4 of Article 2 of this Circular until the date of selling temporarily stored rice and paddy but not exceeding June 15, 2012.

7. The price for calculating interest rate support is the actual purchase price according to market prices (excluding value-added tax) for each type of rice and paddy. In cases where traders purchase raw rice for production and processing into finished rice, the calculation price includes production and processing costs. The basis for determining the actual purchase price according to market prices is the purchase and sale contract, contract termination documents, warehouse entry receipts, purchase invoices, payment transfer documents, or other relevant documents presented by the trader.

8. The supported interest rate is the interest rate on loans from commercial banks according to the Credit Contract but shall not exceed 14% per annum as guided by the State Bank of Vietnam in Circular No. 1479/NHNN-TD dated March 14, 2012.

9. The interest rate support from the state budget for the amount of rice and paddy purchased for temporary storage according to the Prime Minister's directive is recorded as other income and subject to corporate income tax according to current regulations.

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

1. Documents for consideration of interest rate support on bank loans

a) A letter requesting state budget support for interest rates on bank loans for traders purchasing temporary storage rice and paddy. For the Northern Food Corporation and the Southern Food Corporation, the request must be consolidated for all subsidiaries.

b) A certified copy of the Credit Contract between the trader and the commercial bank where the trader borrows funds for purchasing temporary storage rice and paddy from the Winter-Spring crop year 2011-2012 as directed by

c) An inventory list of purchases, sales, and stock of temporarily stored rice and paddy. The inventory list must be confirmed by the Department of Industry and Trade in the location where the trader has temporary storage facilities according to Form 1 attached to this Circular. If the trader purchases and stores rice and paddy in multiple locations, separate inventory lists must be prepared for each location confirmed by the Department of Industry and Trade (where the trader has temporary storage facilities). Based on the confirmed inventory lists from local Departments of Industry and Trade, the trader compiles a consolidated inventory list of temporarily stored rice and paddy and is responsible for the accuracy of the compiled data.

d) A list of loan balances and interest payments on bank loans for purchasing temporarily stored rice and paddy from the time of purchase as stipulated in Clause 4 of Article 2 of this Circular until the time of sale but not exceeding June 15, 2012 (the list must be confirmed by the leadership of the commercial bank where the trader borrowed funds according to Form 2 attached to this Circular).

đ) A calculation table of interest rates on bank loans for purchasing temporarily stored rice and paddy requesting support (according to Form 3 attached to this Circular). Upon receiving complete documentation as prescribed above, the Ministry of Finance will review the application and process interest rate support within ten working days.

2. Principles for receiving applications and disbursing support funds to traders

a) For the Northern Food Corporation and the Southern Food Corporation:

- The Ministry of Finance will accept the consolidated dossier of the Northern Food Corporation and the Southern Food Corporation (will not accept individual dossiers of subsidiaries). The review of the interest rate support dossier will be conducted once after the end of the temporary storage period and distributed through the corporation's account.

- The Northern Food Corporation and the Southern Food Corporation will guide subsidiaries to prepare interest rate support loan dossiers and consolidate them according to Clause 1 of Article 3 of this Circular to submit to the Ministry of Finance. The corporation is responsible for the accuracy of the consolidated data. After receiving the support funds from the Ministry of Finance transferred to the corporation's account, within five working days, the corporation will distribute the funds to subsidiaries.

b) For other traders: The Ministry of Finance will accept and review the interest rate support dossiers after the end of the temporary storage period and distribute the support funds through the trader's account.

Article 4. Responsibilities of organizations and state agencies related to supporting interest rates on bank loans for purchasing temporary storage rice and paddy

1. Responsibilities of Ministries, sectors, People's Committees of provinces and centrally governed cities, and the Vietnam Food Association in implementing the purchase of temporary storage rice and paddy

a) The Ministry of Agriculture and Rural Development shall take the lead and coordinate with the Ministry of Industry and Trade, People's Committees of provinces and centrally governed cities that produce winter-spring rice crops, and the Vietnam Food Association to supervise the implementation of the purchase of paddy and rice for temporary storage in accordance with the provisions set out in Decision No. 287/QD-TTg dated March 9, 2012 of the Government Prime Minister.

b) The State Bank of Vietnam shall designate commercial banks to implement loans for the purchase of paddy and rice for temporary storage.

c) The People's Committees of provinces and centrally governed cities that produce winter-spring rice crops shall direct the Departments of Industry and Trade to inspect and confirm the inventory lists of paddy and rice for temporary storage at warehouses located within their respective provinces of traders assigned the task of temporary storage (including cases where the trader does not have a registered office in the province).

d) The Vietnam Food Association shall be responsible for: - Allocating purchase quotas for paddy and rice for temporary storage to traders and ensuring that the total amount of paddy and rice purchased for temporary storage does not exceed 1,000,000 tons (one million tons) as stipulated in Article 1 of Decision No. 287/QD-TTg dated March 9, 2012 of

2. Responsibilities of traders in purchasing paddy and rice for temporary storage

a) Implement the purchase of paddy and rice for temporary storage in accordance with directives from

b) Be responsible for the authenticity of the import, export, and stock records of paddy and rice for temporary storage and the credit contracts for purchasing paddy and rice for temporary storage, and also be responsible for the accuracy of the data reported in the application for interest subsidy support.

c) Keeping files and certificates of rice imports, exports, and bank loans, and maintaining separate ledgers for accounting of the temporary storage purchase of rice according to the directives of.

d) Bear responsibility for the business effectiveness of purchasing temporarily stored rice and paddy.

đ) Bear legal responsibility if there is a violation of financial and accounting regulations in implementing the temporary storage of rice and paddy.

State-owned enterprises that have been assigned by the Ministry of Agriculture and Rural Development to conduct offshore wind power project surveys before the effective date of this Circular shall continue to implement according to the assigned documents; any new matters arising after the effective date of this Circular shall be implemented in accordance with the provisions of this Circular.

This Circular takes effect from the date of signature. During the implementation process, if there are difficulties or obstacles, units are requested to promptly report them to the Ministry of Finance for guidance on handling./