Circular No. 65/2014/TT-BTC guiding the interest rate support for loans from commercial banks to purchase temporary storage rice and paddy for the Winter-Spring crop season 2013-2014

CIRCULAR

Guidelines for interest rate support on bank loans to purchasetemporary storage rice and paddy from the winter-spring crop 2013-2014

To implement the Prime Minister's Directive as set forth in Decision No. 373a/QĐ-TTg dated March 15, 2014 regarding the purchase of temporary storage rice and paddy from the winter-spring crop 2013-2014;

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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;

The Minister of Finance issues this Circular to guide the provision of interest rate support on bank loans for the purchase of temporary storage rice and paddy from the winter-spring crop 2013-2014.

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).

1. This Circular guides the state budget's provision of interest rate support on loans taken out to purchase temporary storage rice and paddy from the winter-spring crop 2013-2014 for traders specified in Decision No. 373a/QĐ-TTg dated March 15, 2014 of the Prime Minister regarding the purchase of temporary storage rice and paddy from the winter-spring crop 2013-2014 (hereinafter referred to as Decision No. 373a/QĐ-TTg).

Article 1. Scope of Regulation and Applicability

2. This Circular applies to traders implementing the purchase of temporary storage rice and paddy from the winter-spring crop 2013-2014 assigned by the Vietnam Food Association pursuant to Article 4 of Decision No. 373a/QĐ-TTg and related agencies and organizations.

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 loans taken from commercial banks for traders falling within the scope defined in Article 1 of this Circular to purchase temporary storage rice and paddy from the winter-spring crop 2013-2014, in accordance with the Prime Minister's Directive as set forth in Decision No. 373a/QĐ-TTg.

2. Interest rate support on loans for purchasing temporary storage rice and paddy shall only be provided for loans from commercial banks designated by the State Bank of Vietnam pursuant to Clause 2, Article 5 of Decision No. 373a/QĐ-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. 373a/QĐ-TTg and the guidance of the State Bank of Vietnam, they will not be eligible for state budget support.

4. The quantity of rice and paddy eligible for interest rate support for each trader is based on the actual quantity of rice and paddy purchased for temporary storage but shall not exceed the quantity specified in the allocation documents for the purchase of temporary storage rice and paddy from the winter-spring crop 2013-2014 issued by the Vietnam Food Association, and must ensure that the total quantity of rice and paddy purchased for temporary storage does not exceed one million tons of milled rice as stipulated in Article 1 of Decision No. 373a/QĐ-TTg.

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.

5. Types of rice and paddy for temporary storage include common rice and paddy, and fragrant rice and paddy.

6. The period for purchasing temporary storage is from March 15, 2014 to April 30, 2014.

7. The period during which interest rate support on bank loans is available is the actual storage period starting from March 20, 2014 (for quantities of rice and paddy purchased for temporary storage from March 15, 2014 to March 19, 2014) or from the date of purchase (for quantities of rice and paddy purchased for temporary storage from March 20, 2014 to April 30, 2014) until the date of sale of the temporarily stored rice and paddy, but not exceeding July 20, 2014.

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

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.

9. The supported interest rate is the interest rate on loans taken from banks under the Credit Contract but shall not exceed 7% per annum as stipulated in Clause 1, Article 3 of Decision No. 373a/QĐ-TTg and the guidance of the State Bank of Vietnam in Circular No. 1748/NHNN-TD dated March 20, 2014 and Circular No. 2162/NHNN-TD dated April 2, 2014.

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.

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 trader's accounting period and subject to corporate income tax in accordance with current regulations.

10. The loan interest support from the State budget for the amount of paddy and rice purchased for temporary storage according to the Prime Minister's directives shall be recorded as other income in the period of the trader and shall be subject to corporate income tax in accordance with 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 the state budget to support the interest rate on bank loans for traders purchasing temporary storage rice and paddy (providing full information including the name of the unit, address, tax code, and account number for disbursement of the 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.

b) A certified copy of the Credit Contract and promissory note between the trader and the commercial bank where the trader borrows funds regarding the trader borrowing money from the bank to purchase temporary storage rice and paddy for the 2013-2014 winter-spring crop season as directed by the Prime Minister's Decision No. 373a/QĐ-TTg.

c) A list of purchases, sales, and inventory of temporarily stored rice and paddy from the time the trader purchased the temporary storage until the end of the interest rate support period (July 20, 2014), as stipulated in Clause 6, Article 2 of this Circular. The list must be confirmed by the leader of the Department of Industry and Trade where the trader has temporary storage facilities for rice and paddy according to Form No. 1 issued together with this Circular.

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

d) A list of outstanding debts for bank loans to purchase temporarily stored rice and paddy and interest payments arising from March 20, 2014, until the date of sale but not exceeding July 20, 2014 (the list must have confirmation from the leader of the commercial bank where the trader borrowed funds according to Form No. 2 issued together with this Circular).

đ) A calculation table of interest rates on bank loans to purchase temporarily stored rice and paddy requesting support (according to Form No. 3 issued together with this Circular).

2. Process for disbursing support funds to traders

a) Within four months from the end of the interest rate support period, the Northern Foodstuff Corporation, Southern Foodstuff Corporation, and other traders must submit directly or via postal service one set of documents as prescribed in Clause 1, Article 3 of this Circular to the Ministry of Finance (Department of Corporate Finance).

b) After receiving complete documents as prescribed, within fifteen working days, the Ministry of Finance will review the documents and process interest rate support for the traders.

In cases where traders have not provided complete documents or do not meet the conditions for interest rate support, within five working days from receipt of the documents, the Ministry of Finance (Department of Corporate Finance) will issue a document requesting the traders to supplement the documents as prescribed or notify the traders of the reasons for not being considered for interest rate support. In the document requesting supplementary documents, the Ministry of Finance must specify the specific timeframe for the traders to complete the documents.

c) For the Northern Foodstuff Corporation and Southern Foodstuff Corporation

- The Ministry of Finance will accept the consolidated set of documents from the Northern Foodstuff Corporation and Southern Foodstuff Corporation (will not accept documents from member units under the Corporations). The review of interest rate support documents will be conducted once after the end of the temporary storage period and disbursed through the Corporation's account.

- The Northern Foodstuff Corporation and Southern Foodstuff Corporation will guide their member units to prepare documents for bank loan interest rate support and consolidate them according to Clause 1, Article 3 of this Circular to submit to the Ministry of Finance. The Corporation must bear responsibility for the accuracy of the aggregated data.

After receiving the support funds from the Ministry of Finance credited to the Corporation's account, within five working days, the Corporation will re-disburse to its member units.

d) For other traders: The Ministry of Finance will accept the documents, review the documents for interest rate support after the end of the temporary storage period, and disburse 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 organizations and state agencies related to supporting interest rates on bank loans for purchasing temporary storage rice and paddy

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

b) The Departments of Industry and Trade of provinces and centrally governed cities in the Mekong Delta Region shall base on relevant files and documents presented by traders according to Clause 8, Article 2 of this Circular to inspect the quantity purchased, purchase unit price, purchase value, and quantity and value of inventory of rice and paddy during the temporary storage period; confirm in the inventory list of temporarily stored rice and paddy prepared by the trader according to Form No. 01 issued together with this Circular, and at the same time bear responsibility for the accuracy of the confirmed data.

c) Commercial banks assigned by the State Bank of Vietnam to provide loans for temporary storage shall be responsible for confirming the loan balance and interest accrued due to the implementation of purchasing temporary storage rice and paddy for the 2013-2014 winter-spring crop season for traders according to Form No. 02 issued together with this Circular, and at the same time bear responsibility for the accuracy of the confirmed data.

d) Responsibilities of the Vietnam Foodstuff Association

- Notify the Ministry of Finance of the list of traders who have been allocated purchase targets for temporarily storing rice and paddy by the Association so that the Ministry of Finance can monitor and consider interest rate support for the traders as prescribed.

- Notify the Departments of Industry and Trade of provinces and centrally governed cities in the Mekong Delta Region of the list of traders who have been allocated purchase targets for temporarily storing rice and paddy by the Association so that the Departments of Industry and Trade can implement their responsibilities as stipulated in Point c, Clause 1, Article 3 of this Circular.

- Inspect and supervise the organization of purchasing temporarily stored rice and paddy for traders in accordance with Decision No. 373a/QĐ-TTg.

2. Responsibilities of the Ministry of Finance

a) Inspect and appraise files in accordance with the provisions stated in Article 3 of this Circular; implement the disbursement of funds to support interest rates on bank loans for purchasing temporarily stored rice and paddy for traders according to Decision No. 373a/QĐ-TTg, while bearing responsibility for the accuracy of the appraisal data based on the file.

b) At the end of the temporary storage period, organize inspections of the filing of interest rate support for bank loans for purchasing temporarily stored rice and paddy by traders; the accounting of the state budget funds provided for support as stipulated in Article 5 of this Circular.

3. Responsibilities of traders in purchasing temporarily stored rice and paddy

a) Implement the temporary storage of rice and paddy according to the directives of the Prime Minister in Decision No. 373a/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 governed cities in the Mekong Delta Region, and the Vietnam Foodstuff Association.

b) Bear responsibility for the authenticity of the inventory of temporarily stored rice and paddy and credit contracts for purchasing temporarily stored rice and paddy, and at the same time bear responsibility for the accuracy of the reported data in the application for interest rate support.

c) Retain files and documents for purchases, sales, and bank loans, and maintain separate ledgers for tracking the purchase of temporarily stored rice and paddy according to the directives of the Prime Minister in Decision No. 373a/QĐ-TTg.

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.

e) Must repay the state budget the amount of interest rate support funds disbursed in case government management agencies inspect and discover any irregularities. At the same time, the trader must pay additional interest on the overdue repayment amount.

The determination of the overdue interest rate is calculated from the date the trader receives the money until it is repaid to the state budget at an interest rate equal to 150% of the average lending interest rate of commercial banks where the trader has borrowed for temporary storage.

Article 5. Organization of inspection of interest rate support for purchasing temporary storage

1. At the end of the temporary storage period, the Ministry of Finance shall conduct an inspection of the establishment of the interest rate support file to purchase paddy and rice for temporary storage by traders.

The inspection must notify the trader in writing before conducting the inspection. Upon completion of the inspection, an Inspection Report must be established detailing the implementation situation, existing issues, and recommended solutions.

2. Content of inspection

a) Inspect the accuracy and reasonableness of the application file requesting interest rate support for bank loans to purchase paddy and rice for temporary storage during the 2013-2014 Winter-Spring season, as prepared by the trader.

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

Article 6. Implementation Organization

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./.