Decision No. 37/2003/QD-TTg dated March 12, 2003 of the Prime Minister on the import of urea fertilizer for circulation reserve

DECISION

ON THE IMPORT OF UREA FERTILIZER FOR CIRCULATION RESERVE

THE PRIME MINISTER

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

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

DECIDES:

Article 1.- To reserve for circulation 100,000 tons of urea fertilizer so as to contribute to stabilizing the domestic selling prices of urea fertilizer. The duration of reserve for circulation shall be 6 months, counting from March 20, 2003. Enterprises assigned to reserve urea fertilizer for circulation shall borrow capital from commercial banks themselves for the import of urea fertilizer in adequate quantity assigned for reserve for circulation; the State budget shall support 100% of the bank loans' interest rate in the reserve duration.

This imported urea fertilizer volume shall be subject to VAT only when it is delivered from the reserving warehouses for sale.

To assign the Ministry of Agriculture and Rural Development to discuss with the Ministry of Trade on the designation of 2 or 3 State enterprises specialized in fertilizer trading and/or import (enterprises which import fertilizers in large volume, has a healthy financial status and reserve warehouses) to conduct importation in March 2003.

Article 2.- The State Bank of Vietnam shall direct commercial banks in providing adequate loan capital in time for enterprises assigned by the Ministry of Agriculture and Rural Development to import the fertilizer; the Ministry of Finance shall guide in detail the above-said mechanism on reserve for circulation.

Article 3.- The Ministry of Agriculture and Rural Development shall coordinate with the Ministry of Finance and concerned commercial banks in prescribing the mechanism for supervising the above-said volume of reserve urea fertilizer in order to constantly ensure that it is adequate in enterprises' warehouses in the reserve duration; closely monitoring changes in the assorted fertilizer supply and demand on the market, and promptly proposing measures to handle arising problems, which are beyond the competence of the ministries and branches, to the Prime Minister.

Article 4.- This Decision takes effect after its signing for promulgation.

Article 5.- The Ministers of: Agriculture and Rural Development; Finance; and Trade; and the Governor of Vietnam State Bank shall have to implement this Decision.