DECISION No.12/1998/QD-TTg OF JANUARY 23, 1998 ON THE MANAGEMENT OF RICE EXPORT AND FERTILIZER IMPORT IN 1998

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government of September 30, 1992;

At the proposals of the Minister of Trade and the Minister of Agriculture and Rural Development,

DECIDES:

I. ON THE RICE EXPORT:

Article 1.- The 1998 rice export quota of 4 (four) million tons shall be allocated as follows:

- Localities: 2.8 million tons (including State enterprises, non-State enterprises and foreign-invested enterprises in provinces and cities).

- Centrally-run companies: 1.2 million tons (including foreign-invested enterprises).

On the basis of the volume of commodity rice that need to be sold and the 1997 rice export result, and after consulting the Ministry of Agriculture and Rural Development, the Minister of Trade shall decide to allocate at one time 90% of the above-said rice export quota to provinces, the centrally-run enterprises and foreign-invested enterprises immediately in January 1998 so that they can organize the implementation thereof.

If by September 1998, the rice production goes well, the Ministry of Agriculture and Rural Development shall propose the Prime Minister to consider the allocation of the remaining 1998 rice export quota.

The export of rice by foreign-invested enterprises shall comply with the investment licenses granted to them.

Article 2.- For rice produced in Northern and Central Vietnam: To allow enterprises of all economic sectors to take part in the export thereof. The Ministry of Trade shall provide detailed guidance for the implementation.

Article 3.- For rice produced in Southern Vietnam: In addition to the enterprises engaged in direct rice export in 1997, new ones shall be added:

- For provinces that have achieved the annual rice output of over one million tons and each has had less than 2 enterprises conducting direct rice export, 01 (one) more enterprise shall be added;

- To permit the Saigon General Trade Corporation, the Agricultural Supplies Corporation, the Cereal Export-Import Company under the Ministry of Agriculture and Rural Development and the Red Flag Farm of Can Tho province to conduct direct rice export;

- In addition to a number of State enterprises decided by the provincial/municipal People's Committees under the provisions of this Article, the Ministry of Trade shall experimentally permit a number of non-State enterprises currently engaged in rice processing and grinding to conduct direct rice export if they are fully qualified therefor.

Article 4.- The allocation and adjustment of rice export quotas (included in the total rice export quotas already allocated to provinces) to enterprises located in provinces, including rice export enterprises which are members of the Southern Food Corporation, shall be considered and decided by the presidents of the People's Committee of such province on the case-by-case basis.

Article 5.- Basing itself on the food demand and supply in the country and the world's rice market, the Ministry of Finance shall readjust the rice export tax rates compatible with the practical situation. In the immediate future, a rice export tax rate of 0% shall be applied so as to encourage the rice sale right from the beginning of 1998.

II. ON THE FERTILIZER IMPORT:

Article 6.- Basing itself on the 1998 quotas for import of fertilizers of various kinds (Urea fertilizer: 1,600,000 tons; DAP fertilizer: 300,000 tons; SA fertilizer 250,000 tons; NPK fertilizer: 350,000 tons and KCL fertilizer: 240,000 tons), the Ministry of Trade shall coordinate with the Ministry of Agriculture and Rural Development in allocating at one time the quotas for import of fertilizers of various kinds to provinces and centrally-run enterprises in January 1998 so that such provinces and enterprises can take initiative in planning the import and consumption of fertilizers.

Article 7.- To meet the country's demand for fertilizers in service of production, in addition to the enterprises that imported fertilizers in 1997, the following enterprises shall also be permitted to import fertilizers:

- The Mineral Export and Import Company (Minexport) under the Ministry of Trade;

- The Chemicals Corporation under the Ministry of Industry;

- 1 (one) State enterprise of Gia Lai province;

- 1 (one) State enterprise of Nam Dinh province;

The Ministry of Trade shall propose the Prime Minister to permit a number of qualified non-State enterprises to import and trade in fertilizers.

Article 8.- An import quota of 300,000 tons of fertilizers of various kinds shall be allocated to Hai Phong Trade and Service Company (Hachimex) (besides the quotas defined in this Decision), in order to realize the business plan by the mode of setting up a regular reserve storehouse which has already been agreed upon in principle by the Prime Minister in Document No.5271/KTTH of October 20, 1997.

Basing themselves on current regulations, the Ministry of Trade and the Ministry of Planning and Investment shall consider to permit joint venture HYDRO AGRI Vietnam (HAV) to create sources to meet in a stable manner Vietnamese enterprises' demand for fertilizers by the above said mode of setting up storehouses.

Article 9.- For fertilizers of other special types, which have not been produced in the country (micro-biological fertilizer, leaf fertilizer) but already permitted to be used in Vietnam, the enterprises having permits for export and/or import of goods in such appropriate commodity group shall be entitled to import them according to production and business demand.

For chemical fertilizers used as raw materials for the production of composite fertilizers, the Ministry of Trade shall consult the Ministry of Agriculture and Rural Development and the Ministry of Industry before permitting a number of enterprises defined in Article 7 of this Decision to sufficiently import such raw materials and supply them to domestic fertilizer production establishments which have been granted production permits by the Ministry of Industry and goods quality certificates by the Ministry of Science, Technology and Environment;

The Ministry of Industry should scan then reorganize the enterprises manufacturing composite fertilizers with a view to ensuring the goods quality and balancing the composite fertilizer demand and supply.

III. THE ORGANIZATION OF IMPLEMENTATION:

Article 10.- Basing themselves on this Decision and the Minister of Trade's decisions to allocate the 1998 rice export and fertilizer import quotas to the provinces, in early February 1998, the presidents of the provincial People's Committees shall notify the names of designated enterprises with their respective rice export quotas or fertilizer import quotas allocated under the provisions of Articles 3 and 7 of this Decision to the Ministry of Trade, the General Department of Customs, the State Bank, the Ministry of Finance and the Ministry of Planning and Investment for their coordination in directing the implementation.

Article 11.- Basing itself on the decisions of the Ministry of Trade on the allocation of rice export and fertilizer import quotas (to provinces, the centrally-run enterprises, foreign-invested enterprises), the decisions of the presidents of the provincial People's Committees (on the allocation of rice export and fertilizer import quotas to provincial enterprises), the General Department of Customs shall guide the border-gate customs offices to process the goods export or import procedures for enterprises. The granting of rice export permits and fertilizer import permits shall be canceled.

Article 12.- For the 1997 rice export and fertilizer import quotas, the concerned enterprises are allowed to fulfill them till March 31, 1998.

With respect to rice markets previously assigned to a number of enterprises, if other enterprises have concluded contracts with lucrative commercial terms and prices, under the guidelines of the Ministry of Trade, they shall be allowed to export rice directly or through a third party to such markets.

Apart from the enterprises permitted to conduct regular rice export activities, those State enterprises that have found new markets which may yield results, the concerned ministers or presidents of the People's Committees of the provinces and cities directly under the Central Government shall propose the Ministry of Trade to consider and permit the export.

Article 13.- The People's Committees of the provinces and cities directly under the Central Government shall have to regularly coordinate with the Ministry of Trade and the Ministry of Agriculture and Rural Development in closely directing the enterprises to buy all commodity rice from farmers; to export rice with efficiency and ensure the timely supply of materials at reasonable prices for the agricultural production, combine the food trading with the supply of fertilizers and other services for agricultural production.

The People's Committees of the provinces and cities directly under the Central Government shall have to inspect, supervise and bear responsibility for the fulfillment of the allocated export and import quotas; and shall not permit the sale, purchase or transfer of quotas in any forms.

Article 14.- The State Bank shall direct the commercial banks in satisfactorily and promptly providing loans for enterprises to buy rice and to import fertilizers under this Decision.

Article 15.- To set up the Steering Committee for the management of rice export and fertilizer import activities, which shall be headed by a Vice Minister of Trade and composed of representatives from the Ministry of Agriculture and Rural Development, the Ministry of Finance, the State Bank, the General Department of Customs, some provinces with high commercial rice output and the Vietnam Food Exporters-Importers' Association.

Article 16.- This Decision takes effect from the date of its signing to the end of March 31, 1999. The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government and the presidents of the People's Committees of the provinces and cities directly under the Central Government shall have to implement this Decision.

The Prime Minister