Joint Circular No. 98/2008/TTLT/BTC-BCT guiding the management and use of state budget funds for the National Key Science and Technology Research Program to develop pharmaceutical industrialization 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 for the National Key Science and Technology Research Program to develop the pharmaceutical industry until 2020National Key Science and Technology Research Program to develop the pharmaceutical industry until 2020

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Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the Law on State Budget;

Pursuant to Decision No. 61/2007/QĐ-TTg dated May 7, 2007 of the Prime Minister approving the National Key Science and Technology Research Program to develop the pharmaceutical industry until 2020;

The Ministry of Finance and the Ministry of Industry and Trade jointly issue guidelines on the management and use of state budget funds allocated for the National Key Science and Technology Research Program to develop the pharmaceutical industry until 2020 (hereinafter referred to as the Pharmaceutical Program) 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. These Circulars provide guidelines on the management and use of state budget funds allocated for the National Key Science and Technology Research Program to develop the pharmaceutical industry until 2020 (referred to as the Pharmaceutical Program) according to the provisions of Decision No. 61/2007/QĐ-TTg dated May 7, 2007 of the Prime Minister for units under ministries, sectors, localities, organizations, and other individuals related to the implementation of tasks, topics, and projects of the Pharmaceutical Program approved by competent authorities.

2. Sources of funding for the Pharmaceutical Program include: State budget funds for scientific research and training activities, development investment capital annually; capital from domestic and foreign economic organizations and individuals; international cooperation capital and other lawful sources.

3. Units using funds for the Pharmaceutical Program must ensure proper purpose and compliance with regulations; be subject to inspection and supervision by competent authorities; at the end of the year or upon completion of tasks, topics, and projects, settle accounts for funds used according to current regulations.

II. SPECIFIC PROVISIONS

        1. Sources of funding and expenditure items of the Pharmaceutical Program include:

a) Expenditure from scientific and technological affairs funds:

- Implementing scientific and technological research tasks within the Pharmaceutical Program as stipulated in Point 1, Section II, Article 1 of Decision No. 61/2007/QĐ-TTg dated May 7, 2007 of the Prime Minister.

- Supporting technology transfer for key pharmaceutical products created by the Program (supporting training and guiding new technology transfer).

- International cooperation expenditures for science and technology of the Pharmaceutical Program.

- Operating expenses of the Inter-ministerial Steering Committee, Pharmaceutical Program Office: purchasing office equipment; information dissemination; seminars, conferences, mid-term and final reviews of the program; selecting scientific and technological research tasks; inspecting, accepting, and evaluating projects within the program; expenses for market development activities to form and develop the pharmaceutical industry; expenses for database systems and other expenses (if any).

b) Expenditure from development investment funds:

- Building specialized pharmaceutical laboratories with advanced and modern equipment reaching regional standards, including some specialized pharmaceutical laboratories in key fields reaching developed countries' standards; deepening investment to upgrade and modernize research facilities of public institutions, universities, and specialized pharmaceutical laboratories according to approved projects.

- Supporting investment in modernizing pharmaceutical laboratories of organizations, individuals, and businesses.

- Establishing a national database system and website on the pharmaceutical industry according to approved projects.

c) Expenditure from training affairs funds:

- Training new and retraining scientific and technological personnel and managers at domestic and foreign universities to meet the quality requirements of human resources serving the development needs of the pharmaceutical industry.

- Training technical workers at vocational schools to implement the contents of the Pharmaceutical Program.

2. Expenditure levels:

- Units and individuals using state budget funds to implement the Pharmaceutical Program shall comply with the current financial expenditure regulations issued by competent state agencies.

- For pilot production projects (Project P), the maximum support level shall not exceed 30% of the necessary new investment costs to implement the project approved by the competent authority according to current regulations (currently Circular No. 85/2004/TTLT/BTC-BKHCN dated August 20, 2004 of the Ministry of Finance and the Ministry of Science and Technology guiding financial management for scientific and technological projects supported by the state budget and with recoverable funds). The support level for each project shall be decided by the Minister of Industry and Trade.

- For projects supporting investment in modernizing pharmaceutical laboratories of organizations, individuals, and businesses: the support level shall not exceed 30% of the value of specialized pharmaceutical laboratory equipment according to the project's progress and corresponding to the actual investment ratio of the supported unit. The selection of support recipients and specific support levels for each project shall be decided by the Minister of Industry and Trade.

- For scientific and technological topics and projects that have been approved by competent authorities, they shall be implemented according to the provisions of Joint Circular No. 93/2006/TTLT/BTC-KHCN dated October 4, 2006 of the Ministry of Finance and the Ministry of Science and Technology guiding the allocation of funds for scientific and technological topics and projects using state budget funds.

3. Conditions for receiving financial support for projects:

Organizations and individuals implementing projects receiving financial support from the Pharmaceutical Program must meet the following conditions:

a) Conditions for receiving technology transfer support:

- The technology is suitable for the objectives of the Pharmaceutical Program approved by the Prime Minister;

- Feasibility of the project: (1) Transferable technology, (2) Competitiveness of the product produced by the new technology compared to the transferred project, (3) Capacity of the technology recipient (in terms of capital, technology, location for implementation).

b) Conditions for receiving investment support for equipment and laboratory modernization in specialized pharmaceutical research:

- The investment project belongs to the system of research and training in specialized pharmaceutical science (decided 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 (excluding the portion supported by the state budget);

- Has not yet received support from any state funding source for the Project.

4. Recovery of funds:

a) For scientific and technological topics and projects funded from the state's scientific and technological affairs budget that produce recoverable products, they shall be implemented in accordance with current regulations governing scientific and technological projects using state budgets.

b) For experimental production projects: The level and time of fund recovery for each project shall be decided by the Minister of Industry and Trade based on current regulations issued by the Ministry of Finance and the Ministry of Science and Technology regarding financial management for scientific and technological projects supported by the state budget and with fund recovery.

In cases where a project must be suspended due to objective reasons causing damage to the project such as typhoons, floods, or fires, the recovery of funds may be exempted or reduced: The main units implementing the project shall submit a written report to the superior management agency for inspection and confirmation of the implementation process and the reason for suspending the project, as well as their ability to repay the state budget support funds. After inspection and confirmation, the Ministries, central agencies, and provincial People's Committees shall report to the Ministry of Industry and Trade for consideration and decision on the level of exemption or reduction of fund recovery, following the written agreement of the Ministry of Finance.

c) The Ministry of Industry and Trade is responsible for monitoring and urging the recovery of funds; annually compiling and reporting on the situation of fund recovery together with the final settlement of the Pharmaceutical Program budget as stipulated by current regulations.

5. Management and use of assets invested and purchased under the Pharmaceutical Program funded by the state budget shall be carried out in accordance with current regulations.

6. Budget preparation, execution, and settlement:

The preparation, execution, and settlement of research and development funds, educational affairs funds, and investment capital of the Pharmaceutical Program shall be conducted in accordance with the State Budget Law and current guiding documents; this Circular provides specific guidance on certain points as follows:

Based on the content of the Pharmaceutical Program and the guidelines of the Ministry of Industry and Trade, relevant ministries, central agencies, localities, and organizations and individuals who wish to participate in implementing the Program's contents shall propose tasks, topics, and projects to the Ministry of Industry and Trade for organization, selection, examination, and approval according to regulations.

Annually, based on the tasks, topics, and projects that have been examined and approved according to regulations, units shall prepare budget estimates, submit them to the superior management agency for consolidation into the budgets of the ministries, central agencies, and localities, and send them to related ministries and agencies as stipulated; concurrently sending to the Ministry of Industry and Trade. The Ministry of Industry and Trade shall review and consolidate these into the annual budget expenditure plan, submitting it to the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Education and Training, and the Ministry of Science and Technology for consolidation and submission to the competent authority for decision-making; specifically:

a) For scientific and technological affairs funds: The Ministry of Industry and Trade shall cooperate with the Ministry of Science and Technology and the Ministry of Health to determine scientific and technological tasks, select the main organizations and individuals, examine and approve the content and funds, and submit them to the competent authority for examination and decision.

Based on the state budget expenditure plan of the Pharmaceutical Program assigned by the competent authority, the Ministry of Industry and Trade shall cooperate with the Ministry of Science and Technology to approve detailed budget estimates for scientific and technological topics and projects; implement according to current regulations for national key scientific and technological programs.

b) For educational affairs funds: The Ministry of Industry and Trade shall cooperate with the Ministry of Education and Training to determine the need for human resource training and the implementation funds, and submit them to the competent authority for examination and decision according to current regulations.

For overseas training, it shall be implemented according to Decision No. 356/QĐ-TTg dated April 28, 2005 of the Prime Minister approving the Plan for Training Cadres at Foreign Institutions Using the State Budget; the Ministry of Industry and Trade shall determine the training needs and work with the Ministry of Education and Training to implement them.

c) For development investment capital:

Annually, based on the investment needs of approved projects and their progress, the Ministry of Industry and Trade shall prepare the budget estimate along with the annual budget preparation period, and submit it to the Ministry of Finance and the Ministry of Planning and Investment for consolidation and submission to the competent authority for examination and decision.

Construction investment projects shall be implemented in accordance with current regulations on management and construction investment.

7. Reporting, inspection, and supervision work:

- The Ministry of Industry and Trade shall be responsible for coordinating with relevant ministries and agencies to regularly or suddenly inspect the implementation of the content, management, and use of funds for the Pharmaceutical Program to ensure proper and effective use.

- Units and individuals tasked with implementing the Pharmaceutical Program's tasks, topics, and projects shall be responsible for reporting the implementation status every six months and at year-end, following the guidelines of the Ministry of Industry and Trade.

- Annually, the Ministry of Industry and Trade shall compile the implementation status of the Pharmaceutical Program and report to the Prime Minister, concurrently sending reports 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 takes effect 15 days after its publication in the Official Gazette.

2. The Ministry of Industry and Trade shall guide the registration procedures for implementing tasks, topics, and projects under the Pharmaceutical Program.

During implementation, if there are 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.