Decree No. 89/2015/ND-CP Amending and Supplementing Certain Provisions of Decree No. 67/2014/ND-CP dated July 7, 2014 of the Government on Policies for Developing Aquaculture.

DECREE

Amending and supplementing certain Articles of Decree No. 67/2014/NĐ-CP dated July 7, 2014 of the Government on certain policies for developing fisheries

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

Pursuant to the Law on State Budget dated December 16, 2002;

Based on the Fisheries Law dated November 26, 2003;

Pursuant to the Law on the State Bank dated June 16, 2010;

Pursuant to the Law on Credit Institutions dated June 16, 2010;

Pursuant to the Law on Insurance Business dated December 9, 2000 and the Law Amending and Supplementing Certain Provisions of the Law on Insurance Business dated November 24, 2010;

BASED ON THE Law on Corporate Income Tax and the Law Amending and Supplementing Certain Provisions of the Law on Corporate Income Tax 2013; The Value Added Tax Law and the Law Amending and Supplementing Certain Provisions of the Value Added Tax Law 2013; The Personal Income Tax Law and the Law Amending and Supplementing Certain Provisions of the Personal Income Tax Law 2013; The Law on Tax Administration and the Law Amending and Supplementing Certain Provisions of the Law on Tax Administration 2013; The Law on Resource Tax 2009; The Decree on Fees and Charges 2001;

At the proposal of the Minister of Agriculture and Rural Development, the Minister of Finance, and the Governor of the State Bank of Vietnam,

The Government promulgates this Decree amending and supplementing certain articles of Decree No. 67/2014/NĐ-CP dated July 7, 2014 of the Government on certain policies for developing fisheries.

Article 1. AMEND AND SUPPLEMENT CERTAIN PROVISIONS OF DECREE NO. 67/2014/ND-CP OF JULY 7, 2014 OF THE GOVERNMENT ON SOME POLICIES FOR DEVELOPING AQUATIC RESOURCES (HEREINAFTER REFERRED TO AS DECREE NO. 67/2014/ND-CP), AS FOLLOWS:

1. Clause 2, Article 2 shall be amended as follows:

“2. Organizations and individuals (hereinafter referred to as ship owners) ordering new construction of vessels, upgrading of vessels (replacing engines; reinforcing steel hull coating; coating with new materials; purchasing fishing gear, maritime equipment, exploitation equipment, product preservation equipment, cargo handling equipment) for serving marine fishing activities.”

2. Point a, Clause 1, Article 4 shall be amended and supplemented as follows:

“a) Ship owners ordering new construction of vessels with main engine power of 400HP or more; upgrading vessels with main engine power under 400HP to vessels with main engine power of 400HP or more and upgrading engine power for vessels with main engine power of 400HP or more engaged in distant-water fishing, service vessels for distant-water fishing; ship owners may implement one or more of the following contents: Replacing vessel engines; reinforcing steel hull coating; coating with new materials; purchasing fishing gear, maritime equipment, exploitation equipment, machinery and equipment for preserving products, cargo handling equipment.”

3. Point c, Clause 1, Article 4 shall be amended and supplemented as follows:

“c) The specific loan limit, interest rate, and subsidy for interest rate differential are as follows:

- For new construction of service vessels for distant-water fishing, including engines, maritime equipment; equipment for preserving marine products; preserving goods; cargo handling:

+ In the case of new construction of steel-hulled or new-material-hulled vessels: Ship owners are entitled to borrow from commercial banks up to 95% of the total investment value for new construction at an annual interest rate of 7%, of which the ship owner pays 1% per year, and the state budget subsidizes 6% per year.

+ In the case of new construction of wooden-hulled vessels: Ship owners are entitled to borrow from commercial banks up to 70% of the total investment value for new construction at an annual interest rate of 7%, of which the ship owner pays 3% per year, and the state budget subsidizes 4% per year.

- For new construction of distant-water fishing vessels, including engines, maritime equipment; equipment for fishing operations; fishing gear; equipment for preserving marine products:

+ In the case of new construction of steel-hulled or new-material-hulled vessels with main engine power from 400HP to less than 800HP: Ship owners are entitled to borrow from banks up to 90% of the total investment value for new construction of vessels at an annual interest rate of 7%, of which the ship owner pays 2% per year, and the state budget subsidizes 5% per year.

+ In the case of new construction of steel-hulled or new-material-hulled vessels with main engine power of 800HP or more: Ship owners are entitled to borrow from commercial banks up to 95% of the total investment value for new construction of vessels at an annual interest rate of 7%, of which the ship owner pays 1% per year, and the state budget subsidizes 6% per year.

+ In the case of new construction of wooden-hulled vessels: Ship owners are entitled to borrow from commercial banks up to 70% of the total investment value for new construction at an annual interest rate of 7%, of which the ship owner pays 3% per year, and the state budget subsidizes 4% per year.

+ In the case of new construction of wooden-hulled vessels simultaneously reinforced with steel hull coating or new-material hull coating: Ship owners are entitled to borrow from commercial banks up to 70% of the total investment value for new construction of vessels at an annual interest rate of 7%, of which the ship owner pays 3% per year, and the state budget subsidizes 4% per year.

- For upgrading wooden-hulled or new-material-hulled vessels with main engine power under 400HP to vessels with main engine power of 400HP or more and upgrading engine power for vessels with main engine power of 400HP or more: Ship owners are entitled to borrow from commercial banks up to 70% of the total upgrade value at an annual interest rate of 7%, of which the ship owner pays 3% per year, and the state budget subsidizes 4% per year.

- For cases of reinforcing steel hull coating; coating with new materials; purchasing fishing gear, maritime equipment, exploitation equipment, machinery and equipment for preserving products, cargo handling equipment: Ship owners are entitled to borrow from commercial banks up to 70% of the total upgrade value at an annual interest rate of 7%, of which the ship owner pays 3% per year, and the state budget subsidizes 4% per year.

- New fishing vessels must use new marine engines; in the case of upgrading engines, used marine engines may also be utilized according to regulations.”

4. Point d, Clause 1, Article 4 shall be amended and supplemented as follows:

“d) Loan term for subsidized interest rates: 11 years for the case of new construction of wooden-hulled vessels or upgrading of vessels; 16 years for new construction of steel-hulled or new-material-hulled vessels. In the first year from the date of disbursement of the first loan, ship owners are exempted from interest and do not have to repay principal, and the state budget subsidizes the interest that ship owners are exempted from in the first year to commercial banks. This provision applies to all contracts for borrowing from commercial banks for new construction of steel-hulled or new-material-hulled fishing vessels according to the provisions of Decree No. 67/2014/ND-CP signed before the effective date of this Decree.”

5. Article 5 shall be amended and supplemented as follows:

“Article 5. Insurance Policy

The state budget will support insurance costs for distant-water fishing vessels, service vessels for distant-water fishing that are members of team organizations, fishing cooperatives, and fishery associations and have main engine power of 90HP or more:

1. Annually support 100% of the cost of purchasing crew accident insurance for each crew member working on the vessel.

2. Annually support the cost of purchasing hull, equipment, and fishing gear insurance (all-risk insurance) on each vessel at the following levels:

a) 70% of the cost of purchasing insurance for vessels with main engine power from 90CV to less than 400CV.

b) 90% of the cost of purchasing insurance for vessels with main engine power of 400CV or more.”

6. Clause 3, Article 7 shall be amended and supplemented as follows:

“3. Support 100% of the costs for designing prototype steel-hulled, new-material-hulled, and wooden-hulled distant-water fishing vessels and service vessels for distant-water fishing with main engine power of 400CV or more.”

7. Add Clause 5, Article 7 as follows:

“5. Pilot a mechanism to provide a one-time post-investment support for ship owners who are eligible for credit policies as stipulated in Clause 1, Article 4 of Decree No. 67/2014/NĐ-CP.

The Ministry of Finance shall take the lead and coordinate with the Ministry of Agriculture and Rural Development to pilot a mechanism for one-time post-investment support, to report to the Prime Minister for decision. The content of piloting the one-time post-investment support mechanism includes: Objectives, conditions, principles, level of support, and procedures for support; among which the level of support must ensure equivalence with the level of support under the credit policy stipulated in Clause 1, Article 4 of Decree No. 67/2014/ND-CP.”

8. Point b, Clause 1, Article 9 shall be amended and supplemented as follows:

“b) Regulations on technical requirements for model vessel designs; selection of units with sufficient capacity to design, place orders for designing some models of steel-hulled or new-material-hulled vessels for fishing, service vessels for distant-water fishing; approval and publication of selected vessel designs; regulations on economic and technical norms for regular maintenance and repair of steel-hulled vessels and guidance on organizing regular maintenance and repair; regulations on technical requirements and safety technical inspection of second-hand marine engines installed on fishing vessels.

Guidance on selecting localities to design models of distant-water fishing and service vessels for distant-water fishing with wooden hulls and main engine power of 400HP or more suitable for the type of operation and fishing grounds, regions; compilation and publication of wooden-hulled vessel design models;”

9. Add Clause 6, Article 9 as follows:

"6. The Ministry of Science and Technology shall specify regulations on the importation of used machinery, equipment, and production lines into Vietnam, including used marine vessels; separately specify standards for imported used marine vessels when necessary."

10. Supplement Clause 7 of Article 10 as follows:

"7. Implement the design of wooden fishing vessel models for fishing operations and fisheries support services with a total main engine power of 400HP or more, in accordance with the guidelines of the Ministry of Agriculture and Rural Development and ensure compatibility with local sea customs and characteristics of the region."

Article 2. Effective Date

This Decree takes effect from November 25, 2015.

Article 3. Responsibilities for Guidance and Implementation

Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairpersons of provincial People's Committees under the direct jurisdiction of the central government, and Chairpersons of industry associations and commodity associations in the field of aquatic products within their respective functions and duties shall be responsible for guiding and implementing this Decree./.