JOINT CIRCULAR No. 85/2008/TTLT-BTC-BCT GUIDING THE MANAGEMENT AND USE OF STATE BUDGET FUNDS FOR IMPLEMENTING THE BIOTECHNOLOGY DEVELOPMENT AND APPLICATION PROJECT IN THE PROCESSING INDUSTRY UNTIL 2020

 JOINT CIRCULAR

 Guidelines on the management and use of state budget funds for the National Target Program to address environmental pollution and improve the environment for the period 2012-2015

on implementing the Program for Developing and Applying Biotechnology in the Processing Industry until 2020

in the field of processing industry by 2020

---------------------

Pursuant to Decree No. 77/2003/NĐ-CP dated July 1, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 189/2007/NĐ-CP dated December 27, 2007 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

Pursuant to Decree No. 60/2003/NĐ-CP dated June 10, 2003 of the Government detailing and guiding the implementation of the State Budget Law;

Pursuant to Decision No. 14/2007/QĐ-TTg dated January 25, 2007 of the Prime Minister approving the Program for Developing and Applying Biotechnology in the Processing Industry until 2020;

The Ministry of Finance and the Ministry of Industry and Trade jointly issue this Circular guiding the management and use of state budget funds allocated for the Program for Developing and Applying Biotechnology in the Processing Industry until 2020 as follows:

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

1. This Circular guides the management and use of state budget funds allocated for the Program for Developing and Applying Biotechnology in the Processing Industry until 2020 as prescribed in Decision No. 14/2007/QĐ-TTg dated January 25, 2007 of the Prime Minister (hereinafter referred to as the Biotechnology Development Program in the Processing Industry).

2. Sources of funding for the Biotechnology Development Program in the Processing Industry include: annual state budget funds; funds from domestic and foreign enterprises, organizations, and individuals; international cooperation funds related to the effective development and application of biotechnology in the processing industry; and other lawful sources of funding.

3. Entities eligible to receive state budget funds to implement the Biotechnology Development Program in the Processing Industry must meet the conditions set forth in this Circular.

4. Units using state budget funds to support the implementation of the Biotechnology Development Program in the Processing Industry must ensure that such funds are used for their intended purposes and in accordance with established regulations; they shall be subject to inspection and oversight by competent authorities; and they shall settle accounts for the funds used according to current regulations.

II. SPECIFIC PROVISIONS

1. Contents of expenditures for implementing the Biotechnology Development Program in the Processing Industry until 2020 include:

a) Expenditures from investment capital:

- Investment in constructing and completing key laboratories for microbial technology; enzyme and protein technology according to projects approved by competent authorities.

- Investment in advanced equipment and modernization of laboratories at research and training institutions in biotechnology for the processing industry under public service units according to projects approved by competent authorities. For enterprises, the level of support shall not exceed 30% of the value of investment in advanced equipment and modernization of laboratories at research and training institutions in the processing industry.

- Construction of websites, networking, and operation of national databases and information systems on biotechnology to provide information on biotechnology in the processing industry according to projects approved by competent authorities.

b) Expenditures from operating capital:

- Expenditures from operating funds for scientific research:

+ Research and development of new and improved processes and equipment for microbial fermentation, enzyme technology at medium and small scales for food production, feed, additives, chemicals, pharmaceutical raw materials, biofuels, consumer goods, etc.

+ Application of biotechnological technologies to isolate and develop new strains of high-quality, stable microorganisms with high fermentation efficiency.

+ Research and development of integrated equipment lines applying enzymes and proteins in the processing industry at medium and small scales.

+ Support for pilot production projects of microbial products and some recombinant enzymes serving the processing industry of food, feed, additives, chemicals, pharmaceutical raw materials, biofuels, consumer goods, etc. State budget support shall not exceed 30% of the necessary new investment costs to implement the project as approved by the competent authority according to current regulations (currently, Circular No. 85/2004/TTLT/BTC-BKHCN dated August 20, 2004 guiding financial management for science and technology projects supported by the state budget and requiring repayment of funds). Specific levels of support for each project shall be decided by the Minister of Industry and Trade.

+ Purchase of new technologies and trade secrets for research and development of biotechnology at public service units.

+ Support for technology transfer to produce biotechnology products and goods at industrial scale in the processing industry (supporting training and guidance for new technology transfer).

+ Expenditures for purchasing additional equipment directly serving scientific research of topics and projects under the Biotechnology Development Program in the Processing Industry according to current regulations.

- Expenditures from operating funds for training:

+ Overseas training: Doctoral and master's degree training in biotechnology for the processing industry; short-term training from six months to one year for scientific staff with doctoral or master's degrees in biotechnology for the processing industry; and capacity building and enhancement of state management capabilities for senior officials directly responsible for implementing the program.

+ Domestic training: Doctoral, master's, bachelor's, engineering, and technician training in biotechnology for the processing industry; capacity building for scientific staff and lecturers in biotechnology for the processing industry; and enhancing knowledge and capabilities for state management officials at ministries, sectors, localities, and enterprises regarding the development and application of biotechnology in the processing industry.

- Economic operating expenses:

+ Operation of the national biotechnology database and information system in the processing industry sector to provide biotechnology information in the processing industry sector.

+ Activities of the Steering Committee for the Biotechnology Project in the processing industry sector: procurement of equipment; information dissemination and promotion; surveys, international cooperation with countries having advanced biotechnology; seminars, conferences, mid-term and final reviews; inspection, acceptance, evaluation of projects and other expenses (if any).

 2. Recovery of products:

a) For research topics and projects funded from scientific research funds that have recoverable products, they shall be implemented according to current regulations applicable to science and technology projects using state budget funds.

b) For pilot production projects of products in the biotechnology field, the recovery rate of project funding is 60% of the state budget support level. The recovery period for each project is determined by the approving authority but shall not exceed twenty-four months after the project's completion.

In cases where a project must be suspended due to objective reasons causing damage to the project, such as typhoons, floods, fires, the recovery funding may be exempted or reduced. When encountering such situations, the main units of the projects report in writing to the competent ministry (for central units) or the People's Committees of provinces and centrally-administered cities (for local units) for verification regarding the implementation process and reasons for suspension; the ability to repay state budget support funds. After verification, the competent ministry or the People's Committee of the province or centrally-administered city reports to the Ministry of Industry and Trade for consideration and decision on the extent of exemption or reduction of recovery funding, following the written agreement of the Ministry of Finance.

The Ministry of Industry and Trade is responsible for monitoring and urging the recovery of products; annually compiling and reporting the settlement of project funding along with the annual financial report of the biotechnology project in the processing industry sector.

3. Conditions for receiving funding support for projects under the Biotechnology Project in the processing industry sector.

a/ Conditions for receiving technology transfer support:

- The technology is consistent with the objectives of the Project.

- Feasibility of the project: (1) The transferred technology, (2) Competitiveness of the product using new technology compared to the transferred project, (3) Capacity of the recipient unit (in terms of capital, technical expertise, location for implementation).

b/ Conditions for receiving investment support for equipment and laboratory modernization (applicable to all economic sectors):

- The project belongs to the biotechnology research and training system in the processing industry sector (as specified by the Minister of Industry and Trade).

- The investment project has been approved by the competent authority and the commitment of the unit to invest according to the project (beyond the state budget support portion).

- State budget support funding is provided based on the progress of the project and corresponds to the actual investment ratio of the supported unit.

- The project has not received support from any state budget funding source.

4. Expenditure limits

Units utilizing state budget funding to implement the biotechnology project in the processing industry sector must comply with the current financial expenditure standards set by authorized state agencies.

5. Establishment, execution, and settlement of state budget:

The establishment, execution, and settlement of research and development funding, education and training funding, economic affairs funding, and investment capital of the biotechnology project in the processing industry sector shall be carried out in accordance with current regulations. This Circular supplements certain points as follows:

- Based on the content of the Project and guidance from the Ministry of Industry and Trade, relevant ministries, central agencies, localities, and enterprises interested in participating in the Project's contents, they build tasks (topics, projects...) to register with the Ministry of Industry and Trade for review and approval.

- Annually, based on the reviewed tasks, units prepare budgets and submit them to their superior management authorities for consolidation into the budgets of central ministries and agencies, which will then be sent to relevant ministries and agencies according to current regulations; copies are also sent to the Ministry of Industry and Trade. Localities and enterprises submit their budgets to the Ministry of Industry and Trade. The Ministry of Industry and Trade consolidates these budgets at the time of annual budget preparation, sending them to the Ministry of Finance and the Ministry of Planning and Investment for consolidation and submission to the competent authority for decision-making; specifically:

+ For education and training funding: Based on the scientific and technological tasks within the Project determined and selected by the Ministry of Industry and Trade in coordination with the Ministry of Science and Technology, the Ministry of Industry and Trade compiles the annual budget for educational and training expenditures of the Project and submits it to the Ministry of Science and Technology for consolidation and submission to the competent authority for approval. For projects implemented by localities and enterprises, the Ministry of Industry and Trade implements contracts in accordance with regulations.

+ For education and training funding:

 For domestic training: The Ministry of Industry and Trade coordinates with the Ministry of Education and Training to determine the need for human resource training and the funding for educational and training expenditures, submitting this to the competent authority for consideration and decision.

 For overseas training: Implemented in accordance with Decision No. 356/QĐ-TTg dated April 28, 2005 of the Prime Minister on adjusting the "Training of Scientific and Technical Personnel at Foreign Institutions Using State Budget Funds" project, the Ministry of Industry and Trade determines the training needs and works with the Ministry of Education and Training to implement.

+ For investment capital and economic affairs funding: The Ministry of Industry and Trade prepares the budget concurrently with the annual budget preparation period, sending it to the Ministry of Finance and the Ministry of Planning and Investment for review and consolidation, to be submitted to the competent authority for consideration and decision, to be allocated to relevant ministries, sectors, and localities for implementation.

6. The management and use of assets invested in and purchased under the Biotechnology Project in the processing industry sector funded by state budget funds shall be carried out in accordance with current regulations.

7. Reporting, inspection, and supervision work:

a) Every six months and at year-end, units assigned to implement tasks under the Biotechnology Project in the processing industry sector shall be responsible for reporting on the implementation situation according to the guidelines of the Ministry of Industry and Trade.

b) The Ministry of Industry and Trade shall be responsible for coordinating with relevant ministries and agencies to conduct regular or spot inspections regarding the implementation status and use of funds under the Biotechnology Project in the processing industry sector to ensure proper and effective use.

c) Annually, the Ministry of Industry and Trade shall compile the implementation status of the Biotechnology Project in the processing industry sector and report it to the Prime Minister, while also sending copies to the Ministry of Finance, the Ministry of Planning and Investment, the Ministry of Science and Technology, and the Ministry of Education and Training.

III. IMPLEMENTATION

1. This Circular shall take effect fifteen days from the date of publication in the Official Gazette.

2. The Ministry of Industry and Trade shall guide the registration dossier and procedures; review research topics, projects, and tasks registered by ministries, sectors, localities, and enterprises to implement the Biotechnology Project in the processing industry sector.

During the implementation process, if there are any difficulties, units are requested to reflect them to the Ministry of Finance and the Ministry of Industry and Trade for consideration and appropriate amendments and supplements./.