Quyết định 63/2010/QD-TTg

DECISION

ON POLICY ON SUBSIDIES TO REDUCE POST-HARVEST LOSSES IN AGRICULTURE AND AQUACULTURE

THE PRIME MINISTER  

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

Pursuant to the Resolution No. 48/NQ-CP dated September 23^th, 2009 by the Government on mechanism and policy to reduce post-harvest losses in agriculture and aquaculture;

In consideration of the request of the Minister of Agriculture and Rural development,

DECIDES:

Article 1. Subsidies on interest on long-term loans in VND taken by organizations/individuals via Agribank for purchase of Vietnamese machinery and equipment to reduce post-harvest losses shall be subsidized as follows:

1. Organizations, households and individuals eligible for supportive loans and subsidies on interest include:

a) Any cooperative, artel, household, individual with lawful residential address that is certified by the People’s Committee of communes to be individual directly manufactures and assists the manufacture;

b) Any enterprises that signs with farmers contracts on consumption of agricultural products and mechanization of agriculture and complies with such contracts.

2. The supportive loans and subsidies on interest are applicable to the following machinery and equipment:

a) Ploughs, broadcast seeders, planters; machinery serving the care and harvest of rice, corn, coffee, tea, sugar-cane; dryer, materials for construction of drying yard (for rice, corn, cashew nut, pepper) with area of 1,000 m²;

b) Machinery and equipment used for aquatic breed production; materials and equipment used for construction and renovation of aquatic ponds; equipment and devices used for the cultivation, harvest and transport of aquatic products;

c) Freezers, ice makers used on fishing vessels, storage used for long term fishing on sea.  

3. Machinery and equipment specified in clause 2 of this Article shall satisfy the following conditions:

a) Machinery/equipment shall be manufactured by an organization/individual and shall have domestic manufacturing value of over 60%;

b) Machinery/equipment shall have labels according to the law provisions on labels.

4. The maximum loan level for purchase of domestic manufacturing machinery and equipment prescribed in clause 2 of this Article 2 equals (=) 100% of value of goods.

5. The State budget shall cover 100% of interest for the first 2 years and cover 50% of interest from the third year onwards.

6. Agribank shall grant the loans according to the regulations in this Article; the State budget shall provide subsidies on interest rate difference.

Article 2. The interest rates of the investment credit loans shall be applied according to current regulations as follows:

1. Regarding organizations, households and individuals request loans for purchase of machinery and equipment serving reduction of post-harvest losses, including rice hullers that can produce undamaged rice up to 70% of the output; machinery and equipment used for wet processing of coffee, equipment used for treating and increasing the quality of coffee beans (steam, wet polishing, etc.) and the accompany waste water treatment works; cashew shelling and threshing machine; high-quality pepper processing line; semi-permeable coating, irradiating equipment, equipment for sterilizing fresh fruit with hot water, packing house at wholesale markets.

2. Regarding investment project on construction of storage with capacity of 4 million tonnes of rice and/or corn, cold storage for preservation of aquatic products and fruit (including the cold storage on fishing vessels) and temporary storage of coffee beans.

3. The State budget shall cover the difference between the commercial interest rates and the investment credit interest rates; Agribank shall carry out the lending according to the regulations in this Article.

Article 3. Any organizations/individuals of any economic sectors that invests in the project on construction of the storage with capacity of 4 million tonnes of rice, cold storage for preservation of aquatic products and fruit and temporary storage of coffee beans according to the planning shall obtain exemption from land rents according to the Decision No. 57/2010/QĐ-TTg dated September 17^th, 2010 by the Prime Minister. Such organizations/individuals shall be funded from the State budget 20% of expenditure on site clearance and 30% of expenditure on completion of infrastructure outside the fence; obtain 100% exemption from enterprise income tax for the first 3 years of operation and 50% exemption from enterprise income tax for the next 2 years.

Article 4. Any investment project on the manufacture of agricultural machinery for reducing post-harvest losses may enjoy the investment incentives according to current regulations. Tax rate of the import of agricultural machinery/equipment that has not been manufactured in Vietnam yet shall be 0%.

Article 5. Policy on subsidies for science and technology:

1. The State budget shall subsidize 100% the expenditure on:

a) The purchase of breeds for the initial application of innovative new breeds of rice/porn with high productivity and quality;

b) The purchase of the License of invention for self-manufacture or cooperation in manufacture of widely applicable machinery/equipment to reduce the post-harvest losses;

c) The registration of intellectual property applicable to creations of farmers that is widely applicable and recognized by the Ministry of Agriculture and Rural Development or the Ministry of Science and Technology.

2. The project on application of science and technology development in terms of post-harvest losses shall be counted as items eligible for subsidies on technology transfers taken from the National Technological innovation fund.

Article 6. Organization of implementation:

1. The Ministry of Agriculture and Rural Development is responsible for:

a) Preside over, cooperate with the Ministry of Industry and Trade, the Ministry of Finance and the State Bank in specifying the list of machinery and equipment eligible for supportive policy prescribed in Articles 1 and 2 of this Decision;

b) Grant approval for the planning on the storage system for 4 million tonnes of rice in Mekong Delta as the basis for providing subsidies on construction investment project;

c) Cooperate with the Ministry of Industry and Trade in publishing the Lists of machinery, equipment, domestic manufacturing value rates and suppliers to formulate a basis for Agribank to grant the loans; such lists shall be consider amending annually;

d) Cooperate with the Ministry of Science and Technology in formulating the regulations on support for science and technology transfer prescribed in Article 5 of this Decision;

dd) Cooperate with the People’s Committee of provinces and relevant Ministries and regulatory bodies in monitoring the implementation of this Decision and biannually report the situation to the Prime Minister.

2. The State bank of Vietnam shall cooperate with the Ministry of Finance in providing guideline for the provision of subsidies on interest rate difference; direct Agribank to provide loans according to the regulations in this Decision.

3. The Ministry of Finance shall preside over the cooperation with the State Bank in providing guideline for the provision of subsidies on interest rate difference and provide the subsidies according to the regulations in this Decision. Cooperate with the Ministry of Agriculture and Rural Development and the Ministry of Industry and Trade in inspecting different types of machinery/equipment that has not been manufactured in Vietnam, encourage the import with definite duration (without tax).

4. The Ministry of Industry and Trade shall preside over and cooperate with relevant Ministries and regulatory bodies in inspecting the projects in main engineering programs; create planning for agricultural machinery and equipment manufacturing facilities, expedite the development of agricultural machinery production projects that satisfy the requirements in manufacture, reduce the post-harvest losses.

5. The Ministry of Planning and Investment shall cooperate with the Ministry of Finance in distributing the annual budget to provide subsidies on interest rate difference according to the regulations in this Decision.

6. The Ministry of Information and Communications shall preside over and cooperate with the Ministry of Agriculture and Rural Development in directing and providing guiding the information and communications agencies in disseminating the policies and publishing the eligible entities enabling people to access the subsidies provided by the State.

7. People’s Committees of provinces shall:

a) Direct and guide the government of communes to determine the entities eligible for receiving the loans according to this Decision;

b) Direct the local authority bodies to carry out the planning, re-arrange the manufacture, specify the programs and projects on reduction of post-harvest losses;

c) Carry out the supportive policies specified in Article 3 of this Decision.

8. The organizations/individuals shall:

a) Follow the procedures for application for loans according to the regulations of lending organizations;

b) Take legal responsibilities for the use of loans ensuring that loans are use conformably, repay sufficiently and promptly the principal debt and interest according to the regulations.

Article 7. This decision comes into effect from December 01^st, 2010.

Article 8. The Ministers, Heads of ministerial-level agencies, Heads of Governmental agencies, the Presidents of People’s Committees of central-affiliated cities and provinces, President of the Board of Directors, General Director of Agribank are responsible for implementing this Decision./.