Decree No. 67/2012/ND-CP Amending and supplementing some articles of Decree No. 143/2003/NĐ-CP dated November 28, 2003 of the Government detailing certain provisions of the Ordinance on Exploitation and Protection of Irrigation Works.

DECREE

Amending and supplementing some articles of Decree No. 143/2003/NĐ-CP dated November 28, 2003 of the Government detailing the implementation of certain provisions of the Ordinance on Exploitation and Protection of Irrigation Works

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THE GOVERNMENT

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

Pursuant to the Water Resources Law dated May 20, 1998;

Pursuant to the Ordinance on Exploitation and Protection of Irrigation Works dated April 4 2001;

Pursuant to the Ordinance on Fees and Stamp Duties dated August 28, 2001;

At the request of the Minister of Finance.

The Government issues Decrees to amend Amending and supplementing some articles of Decree No. 143/2003/NĐ-CP dated November 28, 2003 of the Government detailing the implementation of certain provisions of the Ordinance on Exploitation and Protection of Irrigation Works.

DECREE:

Article 1. Amending and supplementing some articles of Decree No. 143/2003/NĐ-CP dated November 28, 2003 of the Government detailing the implementation of certain provisions of the Ordinance on Exploitation and Protection of Irrigation Works:

1. Clause 19 shall be amended and supplemented as follows:

"Article 19. Levels of irrigation fees and exemptions from irrigation fees.

1. The levels of irrigation fees and water charges prescribed in Clause 4, Article 14 of the Ordinance on Exploitation and Protection of Irrigation Works for the specified works are as follows:

a) Table of irrigation fee rates for paddy fields:

- In cases where irrigation and drainage are partially self-initiated, the fee is calculated at 60% of the rate in the above table.

- In cases where irrigation and drainage are gravity-fed, the fee is calculated at 40% of the rate in the above table.

- In cases where irrigation and drainage are power-driven, the fee is calculated at 50% of the rate in the above table.

- In cases where tidal currents are utilized for irrigation and drainage, the fee is calculated at 70% of the gravity-fed irrigation and drainage rate.

- In cases where sources must be created from level 2 or higher for works constructed according to approved planning, the irrigation fee rate may be increased by no more than 20% compared to the rate in the above table.

- In cases where separate rates are set for irrigation and drainage on the same area, the irrigation fee rate is calculated at 70%, while the drainage fee rate is calculated at 30% of the rate prescribed in the above table.

The People's Committee of provinces and centrally governed cities shall specify the list of works and irrigation and drainage methods applicable to each irrigation work under their jurisdiction.

b) For areas planted with seedlings, vegetables, short-term crops including winter crops, the irrigation fee rate is 40% of the irrigation fee rate for paddy fields.

c) The irrigation fee rate for salt production is 2% of the value of finished salt.

d) Table of water charge rates for organizations and individuals using water or services from irrigation works for non-food production purposes:

- In cases where water is taken based on volume, the water charge rate is calculated from the point where the organization or individual receiving water takes the water.

- In cases where water is supplied for aquaculture utilizing tidal currents, it is calculated at 50% of the rate prescribed in Subpoint 4 of this point.

- In cases where water is supplied for long-term perennial crops, fruit trees, flowers, and medicinal plants if it cannot be calculated based on cubic meters (m³The People's Committee of provinces and centrally governed cities shall specify the water charge rates in Subpoints 5, 7, and 8 of the water charge rate table prescribed in this Point in accordance with the actual situation of the irrigation works system in their locality and current regulations on分级管理与组织管理水利工程。

The People's Committee of the province or centrally governed city shall specify the specific rates of collection set forth in Items 5, 7, and 8 of the Table of Water Collection Rates prescribed in this Point to be consistent with the actual conditions of the irrigation works system in the locality and the current regulations on分级管理 and organization of management of irrigation works.

e) Based on the actual situation at each specific stage, the Prime Minister shall decide to adjust the maximum increase rate of up to 30% compared to the prescribed collection rate under the Decree based on the proposal of the Ministry of Finance and the Ministry of Agriculture and Rural Development. In cases where it is necessary to adjust the collection rate exceeding 30% compared to the prescribed rate under this Decree, the Ministry of Agriculture and Rural Development and the Ministry of Finance shall submit to the Government for decision.

2. The irrigation fee rate prescribed at points a, b, and c of Clause 1 of this Article shall be calculated at the position of the headgate of the canal of the water-using cooperative entity to the main works of the irrigation works.

The People's Committee of the province or centrally governed city shall specify the position of the headgate of the canal of the water-using cooperative entity for each system of works according to the provisions of the Ministry of Agriculture and Rural Development.

3. The water service fee from after the headgate of the canal to the field surface (field canals) shall be agreed upon by the water-using cooperative entity and the organizations or individuals using water, and such fee shall not exceed the ceiling rate prescribed by the People's Committee of the province or centrally governed city.

4. Objects exempted from paying the irrigation fee:

a) Exemption from the irrigation fee for the entire area of agricultural land serving research and experimental production, areas planted with annual crops including at least one rice crop per year; salt-making land.

The area of annual crops including at least one rice crop per year includes land planned or scheduled to plant at least one rice crop per year or land planned or scheduled to plant annual crops but actually planted with at least one rice crop per year.

b) Exemption from the irrigation fee for the entire area of agricultural land allocated or recognized by the State for poor households.

The identification of poor households shall be based on the poverty standard household issued pursuant to the Decision of the Prime Minister.

Where the People's Committees of provinces or centrally governed cities have specific poverty standard household criteria in accordance with the law applicable in their localities, the poverty standard household criteria prescribed by the People's Committee of the province or centrally governed city shall be used to identify poor households.

c) Exemption from the irrigation fee for the area of agricultural land within the allocation limit of agricultural land granted to the following subjects:

- Household families and individual farmers who are granted or recognized by the State for agricultural production purposes, including land inherited, gifted, or transferred through land use rights.

Household families and individual farmers include: those with permanent residence registration at the local area; those whose main source of living is agricultural production, aquaculture, or salt-making, confirmed by the People's Committee of communes, wards, or towns as long-term residents but without permanent residence registration; household families and individuals previously engaged in non-agricultural professions and have permanent residence registration at the local area but are now unemployed; state officials, civil servants, employees, workers, and soldiers retired due to health reasons or job restructuring and receiving one-time or multi-year allowances to reside permanently in the local area; children of state officials, civil servants, employees, and workers residing in the local area who have reached working age but are unemployed.

- Household families and individuals who are members of agricultural cooperatives that have received stable land allocation from cooperatives, state farms (or agricultural companies converted from state farms) for agricultural production according to the law.

The allocation of land by cooperatives and state farms for agricultural production shall be carried out in accordance with the provisions of Government Decree No. 135/2005/NĐ-CP dated November 8, 2005.

- Household families and individuals who are state farm members that have received stable land allocation from state farms for agricultural production according to the law.

State farm members include: officials, workers, and staff currently working for state farms; household families with members currently working for state farms or who have retired or are receiving benefits due to health issues and are residing within the area; household families directly involved in agricultural production or aquaculture residing within the area.

- Household families and individual farmers engaged in agricultural production have the right to use their agricultural land to establish agricultural cooperatives according to the Law on Cooperatives.

Cases not covered under the exemption from water resource fees as stipulated in this Clause must pay water resource fees as prescribed in this Decree.

5. Scope and level of exemption from water resource fees:

a) Scope of exemption from water resource fees:

The scope of exemption from water resource fees is calculated from the position of the headworks of the cooperative organization using water to the main works of the water conservancy project.

b) Level of exemption from water resource fees:

The level of exemption from water resource fees for cases using water from water conservancy projects is calculated according to the levels specified in Points a, b, c and Sections 3, 4 of the Water Fee Rate Table at Point d Clause 1 of this Article.

2. Add Article 19a as follows:

"Article 19a. Policies for units managing and operating water conservancy projects and the state budget subsidy for implementing exemptions from water resource fees

1. Units managing and operating water conservancy projects are subsidized by the state budget for the amount resulting from the implementation of exemptions from water resource fees as stipulated in this Decree.

2. The level of subsidy is specified as follows:

a) Units managing and operating the water conservancy system are subsidized for the amount resulting from the implementation of exemptions from water resource fees calculated according to the rates specified in Points a, b, c and Sections 3, 4 of the Water Fee Rate Table at Point d Clause 1 of Article 19 above.

The level of subsidy for water resource fees is implemented according to the principle of one area, one irrigation method, and one fee rate as specified in Points a, b, c and Sections 3, 4 of the Water Fee Rate Table at Point d Clause 1 of Article 19 above.

b) Central government expenditure responsibilities:

- Ensuring 100% of the water resource fees exempted for units managing and operating central-level water conservancy projects.

- Supporting 100% of the additional costs of exempted water resource fees for localities receiving supplementary balance from the central budget.

- Supporting 50% of the additional costs of exempted water resource fees for localities with a redistribution ratio to the central budget below 50%.

- For localities with a redistribution ratio to the central budget of 50% or more, the additional costs are guaranteed by the local budget.

c) Local government expenditure responsibilities:

- Ensuring the portion of the exempted water resource fees already balanced in the annual budget as stipulated in Decision No. 59/2010/QD-TTg dated September 30, 2010 of the Prime Minister regarding the issuance of standards for allocating the regular budget of the state for 2011.

- For localities with a redistribution ratio to the central budget of 50% or more, the local budget ensures 100% of the exempted water resource fees for units managing and operating local water conservancy projects.

- For localities with a redistribution ratio to the central budget below 50%, the local budget ensures 50% of the additional exempted water resource fees for units managing and operating local water conservancy projects.

3. Units managing and operating water conservancy projects are responsible for:

a) Providing timely and adequate irrigation and drainage services for agricultural production, aquaculture, and salt-making while fully implementing water-saving policies.

b) Each year, units managing and operating water conservancy projects must prepare budgets, develop business plans, and report to competent authorities for approval as follows:

For units managing and operating water conservancy projects under central management, reports should be submitted to the Ministry of Agriculture and Rural Development and the Ministry of Finance.

For units managing and operating water conservancy projects under local management, reports should be submitted to the People's Committees of provinces and centrally-administered cities for reporting to the Ministry of Finance and the Ministry of Agriculture and Rural Development.

3. Amend and supplement Clause 4 of Article 27 as follows:

For units managing and operating centrally managed irrigation works, they shall report to the Ministry of Agriculture and Rural Development and the Ministry of Finance.

For units managing and operating locally managed irrigation works, they shall report to the People's Committee of the province or centrally governed city to report to the Ministry of Finance and the Ministry of Agriculture and Rural Development.

3. Amend and supplement Clause 4 of Article 27 as follows:

"4. Draft for the Government to issue or issue within its authority legal regulatory documents on the decentralization management of irrigation works, procedures, norms, standards, and regular maintenance cost norms for the management and operation of irrigation works, and direct measures for water-saving irrigation and policies to encourage water-saving irrigation.

Issue criteria to determine appropriate irrigation and drainage measures based on current conditions and provisions of this Decree.

Reorganize and restructure affiliated companies managing and operating irrigation works to effectively utilize irrigation works according to the water resource fee collection policy stipulated in this Decree.

Supervise the management and operation of the system of irrigation works.”

4. Amend and supplement Clause 6 of Article 28 as follows:

"6. The Ministry of Finance shall take the lead and coordinate with the Ministry of Agriculture and Rural Development and relevant ministries and sectors:

a) Guide the implementation of regulations on ordering services, assigning plans for irrigation and drainage tasks to serve agricultural production by units managing and operating irrigation works and financial management rules for state-owned joint-stock limited companies responsible for managing and operating irrigation works.

b) Issue guidelines for budget preparation, allocation, management, settlement, and final accounting when implementing the policy of exempting water resource fees.

c) Aggregate the budget expenditure due to the exemption of water resource fees from central-level companies managing and operating irrigation works and local units managing and operating irrigation works, report to the Government for submission to the National Assembly for approval in accordance with the State Budget Law.

d) Conduct inspections and supervision of the exemption of water resource fees and the use of budgets allocated to companies managing and operating irrigation works and organizations using water cooperatively."

5. Supplement Clauses 10, 11, 12, 13, and 14 to Article 29 as follows:

"10. Implement specific decentralized management of irrigation works following the guidance of the Ministry of Agriculture and Rural Development.

11. Supervise the establishment and issuance of labor norms, economic and technical norms for companies managing and operating irrigation works and water-using cooperative organizations. Decide on the method of assigning plans and ordering services for units responsible for managing and operating irrigation works, approve budgets, allocate funds, manage, settle, and finalize accounts for these units.

12. Annually prepare a budget for subsidizing water resource fees exempted for units managing and operating irrigation works, submit it to the People's Councils of provinces and centrally-administered cities for consideration and decision; aggregate and report to the Ministry of Finance and the Ministry of Agriculture and Rural Development on the level of financial support.

13. Supervise the implementation of revenue and expenditure, settlement, and final accounting of budgetary support in accordance with the State Budget Law.

14. Reorganize and restructure provincial companies managing and operating irrigation works according to the water resource fee collection policy stipulated in this Decree."

Article 2. Effective Date

This Decree takes effect from January 1, 2013, and replaces Decree No. 115/2008/NĐ-CP dated November 14, 2008, of the Government amending and supplementing certain articles of Decree No. 143/2003/NĐ-CP dated November 28, 2003, of the Government detailing certain provisions of the Irrigation Works Exploitation and Protection Ordinance.

Article 3. Responsibility for Implementation

1. The Ministry of Finance shall take the lead and coordinate with the Ministry of Agriculture and Rural Development to guide the implementation of this Decree.

2. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial and centrally governed city People's Committees are responsible for implementing this Decree./.