Decision No. 47/2016/QD-TTg dated October 31, 2016 of the Prime Minister on piloting one-off post-investment subsidy system under the regulations of the Government’s Decree No. 89/2015/ND-CP, amending and supplementing certain articles of the Government’s Decree No. 67/2014/ND-CP on certain fishery development policies

THE PRIME MINISTER

Decision No. 47/2016/QD-TTg datedOctober 31, 2016 of the Prime Minister on piloting one-off post-investment subsidy system under the regulations of the Government’s Decree No. 89/2015/ND-CP, amending and supplementing certain articles of the Government’s Decree No. 67/2014/ND-CP on certain fishery development policies

Pursuant to the Law on Government Organization dated June 19, 2015;

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

Pursuant to the Law on Fishery dated November 26, 2003;

Pursuant to the Government’s Decree No. 67/2014/ND-CP dated July 7, 2014 on certain fishery development policies;

Pursuant to the Government’s Decree No. 89/2015/ND-CP dated October 7, 2015 on amending and supplementing certain articles of the Government’s Decree No. 67/2014/ND-CP dated July 7, 2014 on certain fishery development policies;

Upon the request of the Minister of Finance and the Minister of Agriculture and Rural Development;

The Prime Minister hereby issues the Decision on piloting one-off post-investment subsidy system under the regulations of the Government’s Decree No. 89/2015/ND-CP dated October 7, 2015, amending and supplementing certain articles of the Government’s Decree No. 67/2014/ND-CP dated July 7, 2014 on certain fishery development policies.

Article 1. Scope of adjustment

This Decision sets forth regulations on establishing the pilot system for giving one-off post-investment subsidy (hereinafter referred to as post-investment subsidy) to the owners of newly-built ships under the regulations of the Government’s Decree No. 89/2015/ND-CP dated October 7, 2015, amending and supplementing certain articles of the Government’s Decree No. 67/2014/ND-CP dated July 7, 2014 on certain fishery development policies.

Article 2. Subjects of application

1. Organizational and/or individual entities ordering new ships and owning offshore fishing ships and logistic support ones thereof of which main engine power is at least 800 CV each (hereinafter referred to as ship owner).

2. Other organizational and/or individual entities involved.

Article 3. Post-investment subsidy principles

1. This kind of support shall be applied only to fully-operative built ships which are offshore fishing ones with steel, new-material and wooden hulls; logistic support ships with steel hulls.

2. Newly-built ships must be propelled by new engines. With respect to machinery and equipment, including navigational machines and equipment, fishing aids, nets, gears, seafood and cargo storage facilities, and cargo handling equipment, ship owners shall only have access to subsidy on new ones acquired through their purchases but not on used ones.

3. Post-investment subsidy system defined in this Decision shall not apply to the cases in which ship owners have already been given other state subsidy on their newly-built ships.

Article 4. Eligibility requirements for post-investment subsidy

1. Ship owners referred to in Article 2 hereof have demonstrated efficiency in their fishery operations, proven financial capability, and have already drawn up detailed production plans approved by the People s Committees of centrally-affiliated cities or provinces.

2. Ship owners have been admitted into fish production groups or teams, cooperatives and enterprises.

3. Ships must be equipped with onboard communications systems designed with available position reporting functions which transmit information to onshore receiving base stations to track and control their voyage.

4. Offshore fishing ships must have the certificate of conformance to technical safety standards for fishing vessel operations, the certificate of registration for fishing ship, and the fishing license, approved by competent authorities. Fishing activities must accord with regulations laid down in the Prime Minister’s Decision No. 1445/QD-TTg dated August 16, 2013 on approval of the general plan to develop the fishery industry by 2020 with vision to 2030, wherein pelagic seine net and hook-and-line fishery in conjunction with squid or cuttlefish fishery by stick-held falling nets, and ocean tuna logline and hand line fishery, except for trawl, fixed net, lift net, surrounding net, and certain inshore gillnet fisheries, will be developed .

5. Logistic support ships for offshore fishery production must have the certificate of conformance to technical safety standards for fishing vessel operations, the certificate of registration for fishing ship; must be registered to provide their regular logistic support for offshore fish production operations with state fishery authorities of the locality where such registrations have been granted or owners thereof permanently reside, and do not participate in fishing operations.

6. Ship owners must enter into the shipbuilding contract within a specified period ranging from November 25, 2015 (the date of entry into force of the Decree No. 89/2015/ND-CP) to the end of December 31, 2016. If any shipbuilding contract is signed either ahead of November 25, 2015 or later than December 31, 2016, post-investment subsidy shall not be applied thereto.

Article 5. Shipbuilding subsidy rate

1. With respect to ships providing logistic support for offshore fish production operations, including navigational machinery and equipment, seafood and cargo storage facilities, and cargo handling equipment, this rate shall be provided for as follows:

a) As for construction of a new steel hull ship with total main engine power ranging from 800CV to less than 1,000CV, ship owners shall be entitled to 35%, but no more than VND 8 billion, of subsidy for their total investment value per each.

b) As for construction of a new steel hull ship with total main engine power of at least 1,000CV, ship owners shall be entitled to 35%, but no more than VND 9.8 billion, of subsidy for their total investment value per each.

2. With respect to construction of new offshore fishing ships, including navigational machinery and equipment, fishing auxiliary equipment, fishing gears and seafood storage facilities, this rate shall be provided for as follows:

a) As for construction of a new steel hull ship with total main engine power ranging from 800CV to less than 1,000CV, ship owners shall be entitled to 35%, but no more than VND 6.7 billion, of subsidy for their total investment value per each.

b) As for construction of a new steel hull ship with total main engine power of at least 1,000CV, ship owners shall be entitled to 35%, but no more than VND 8 billion, of subsidy for their total investment value per each.

c) As for construction of a new composite hull ship with total main engine power of at least 800CV, ship owners shall be entitled to 35%, but no more than VND 6.7 billion, of subsidy for their total investment value per each.

d) As for construction of a new wooden hull ship with total main engine power of at least 800CV, ship owners shall be entitled to 15%, but no more than VND 2 billion, of subsidy for their total investment value per each.

Article 6. Required documents submitted to apply for post-investment subsidy

1. Required documents submitted to apply for post-investment subsidy are composed of:

a) Ship owner’s application form for post-investment subsidy for construction of new ships in which information about his/her legal residency and completed construction of ship are verified by the President of the People’s Committee of the ward/commune where (s)he has registered his/her permanent residence (Using the application form in the Appendix I hereto).

b) Ship owner’s ID card or citizen identification card.

c) Shipbuilding contract used for certifying that the ship owner has ordered construction of new ship.

d) Confirmation given by the shipbuilding establishment concerning the date on which it and the ship owner have signed a shipbuilding contract.

dd) Shipbuilding establishment’s final account of total investment outlay (including acquisition of machinery and equipment through purchase, such as navigational machinery and equipment, fishing aids, nets, gears, seafood and cargo storage facilities, and cargo handling equipment) which is submitted along with sales invoices or payment vouchers provided as evidence of payment of fees on construction of new ship, and/or purchase of new machinery and equipment.

e) The certificate of conformance to technical safety standards of fishing vessel, the certificate of registration for fishing ship, and the fishing license for offshore fishing operations granted by competent authorities; the certificate of conformance to technical safety standards of fishing vessel, the certificate of fishing vessel registration for ships providing logistic support services for offshore fishing operations.

2. Ship owners may submit application for post-investment subsidy in person or by post. In case of application submitted by post, attached documents or papers must be originals or authenticated copies. In case of application submitted in person, attached documents and papers must be either originals or authenticated copies thereof, or both originals and copies thereof for comparison purposes.

3. Deadline for submission of application for post-investment subsidy referred to in this Decision is the end of December 31, 2017. The deadline for a ship owner’s submission of application by post to the Department of Agriculture and Rural Development shall refer to the postmark.

Article 7. Processes and procedures for payment of post-investment subsidy

1. The ship owner eligible for post-investment subsidy policies shall prepare a complete set of documents required to apply for post-investment subsidy in accordance with Clause 1 Article 6 hereof for submission to the Department of Agriculture and Rural Development of the province or city where construction of his/her new ship has been approved by the provincial-level People’s Committee.

2. Upon reference to the application submitted by the ship owner, within a limited period of 02 working days of receipt of such application, the Department of Agriculture and Rural Development shall thoroughly examine documents included in that application and, in case of lack of any required document or invalid documents which have been submitted, the Department of Agriculture and Rural Development shall notify the ship owner in writing. Within a permitted period of 10 working days of receipt of all required documents from the ship owner, the Department of Agriculture and Rural Development shall lead, or collaborate with the Department of Finance in, verification of the application dossiers for payment of subsidy and of total value of investment in construction of new fishing ship and subsidy amount, and then report on verification results to the provincial-level People’s Committee for its approval of the subsidy amount paid to the ship owner. The verification results must be prepared in writing and deposited with the Department of Agriculture and Rural Development together with required documents which have been submitted to request payment of the subsidy amount.

3. After consulting the verification results, the provincial-level People’s Committee shall consider issuing the Decision to pay the subsidy amount to the ship owner within a permitted period of 15 working days of receipt of the request from the Department of Agriculture and Rural Development.

The Decision to pay the subsidy amount to the ship owner (hereinafter referred to as Decision) shall be sent to the ship owner acting as the beneficiary of this amount as specified in the Decision, and institutional entities concerned, including the Department of Agriculture and Rural Development, the Department of Finance, the State Treasury of a province, local fishery authority, the State Treasury of the district where that ship owner is residing, and posted for public information at the workplace of the provincial-level People’s Committee.

4. In compliance with the Decision granted by the provincial-level People’s Committee, the Department of Finance shall send a payment order to the State Treasury no later than 02 working days of receipt of such Decision.

5. According to the payment order sent by the Department of Finance, the State Treasury shall withdraw funds from its budget and transfer money to the ship owner s account, or make a cash payment to the ship owner, no later than 02 working days of receipt of the payment order from the Department of Finance. The State Treasury of a district shall publicly post the subsidy payment schedule at its office so that it is known by the ship owner who contacts the State Treasury to receive his/her subsidy amount no later than 02 working days of receipt of the payment order from the Department of Finance.

6. According to necessary procedures to be implemented to receive the subsidy amount at the State Treasury, the ship owner shall refer to the Decision granted by the provincial-level People’s Committee and subsidy payment schedule specified by the State Treasury’s notice, and contact the State Treasury of the district where (s)he is residing to claim his/her subsidy amount. In order to be eligible to receive such amount, the ship owner must present his/her ID card or citizen’s identification card which remains valid for comparison purposes and provide information about the ship owner s account (if any) in case of wire transfer.

Article 8. Funding source for implementation and payment of post-investment subsidy

1. The central budget shall cover 100% of expenses for post-investment subsidies paid to the ship owners that build new ships under the regulations hereof.

2. Funding source for implementation of post-investment subsidy system is derived from the one used for payment of subsidy to offshore fishermen as defined in the Prime Minister s Decision No. 1263/QD-TTg dated July 28, 2014 In cases where the funding source for payment of post-investment subsidy to offshore fishermen is used up as specified in the Decision No. 1263/QD-TTg, the funding source for implementation of post-investment subsidy system shall be derived from the annual central budget for investment and development activities.

3. Subsidies shall be paid to ship owners through the State Treasury provided that all required documents, procedures and certification by relevant regulatory entities according to the instructions herein are observed.

Article 9. Budget estimate, allocation and final account

Based on the reported quantity of newly-built ships qualifying for post-investment policies and stipulated subsidy rates, the Department of Finance in collaboration with the Department of Agriculture and Rural Development, the Department of Planning and Investment shall determine demands for required subsidy funds and report to the provincial-level People s Committee that prepared a consolidated report for submission to the Ministry of Agriculture and Rural Development, the Ministry of Planning and Investment and the Ministry of Finance.

The Ministry of Agriculture and Rural Development shall integrate locality-specific demands sent to the Ministry of Planning and Investment that heads and collaborate with the Ministry of Finance in preparation of an integrated report to the Prime Minister who grants his decision on authorization to provide supplementary funds from the central budget for local budgets.

With reference to the funds appropriated by the central budget, the Department of Finance in collaboration with the Department of Agriculture and Rural Development, the Department of Planning and Investment shall prepare a report to the provincial-level People’s Committee for submission to the People’s Committee that then decides whether the estimated budget is authorized for the Department of Agriculture and Rural Development s implementation.

Post-investment funds shall be integrated into the final account of annual provincial-level budget expenditure as stipulated by the Law on State Budget, directives on the Law on State Budget and the State Budget Index in force.

Article 10. Reporting regime

1. On a quarterly or annual basis, the provincial-level People’s Committee shall be responsible for preparing a detailed review report on expenditure on post-investment subsidies for ship owners in accordance with this Decision for submission to the Ministry of Agriculture and Rural Development and the Ministry of Finance (according to the Appendix II, III hereto).

2. The quarterly report must be sent no later than 30 days from the last date of a specified quarter, and after 60 days from the last date of a specified year for the annual report.

Article 11. Implementation organization

In addition to responsibilities referred to in the Decree No. 67/2014/ND-CP and the Decree No. 89/2015/ND-CP, Ministries, sectoral regulatory authorities and People s Committees of centrally-affiliated coastal cities and provinces and organizations or individuals concerned shall, within their statutory duties and functions, assume other responsibility for implementation of this Decision, including:

1. The Minister of Agriculture and Rural Development:

a) Integrate demands for funds of administrative subdivisions and send an integrated report on such demands to the Ministry of Planning and Investment, and the Ministry of Finance.

b) Take charge of implementation of this Decision associated with restructuring of fish production activities for sustainable and effective development purposes.

c) Head, or collaborate with the Ministry of Finance, the Ministry of Planning and Investment, Ministries, sectoral regulatory authorities and local governments on, implementation of regulations enshrined in this Decision, recommend measures to be taken to deal with difficulties that may arise during implementation thereof, and report to the Prime Minister on any ultra-vires issue.

d) After the piloting time, undertake cooperation with local governments, relevant ministries and sectoral regulatory authorities on preparation of the summary report on this program and suggest the action plan for the following stage, and report to the Prime Minister for his consideration and decision.

dd) Direct and instruct local governments to implement and preliminarily review this program; head, or cooperate with Ministries, People’s Committees of centrally-affiliated cities and provinces concerned on, preparation of a review report on results achieved from implementation of this Decision on an annual basis for submission to the Prime Minister.

2. The Ministry of Planning and Investment:

Head, or collaborate with the Ministry of Finance and the Ministry of Agriculture and Rural Development on, preparation of a consolidated report on demands for, balancing, and allocation of, funds for investment and development activities, for submission to competent authorities for their decision to pilot the post-investment subsidy system in the event that the funds for subsidy paid to fishermen for their offshore fishery operation, as defined in the Prime Minister s Decision No. 1263/QD-TTg dated July 28, 2014, have been used up.

3. The Ministry of Finance:

a) Arrange funds for piloting of the post-investment subsidy system defined in this Decision.

b) Take charge of, or collaborate with ministries or sectoral regulatory authorities on, dealing with difficulties relating to the form and dossier of, procedure, and process for, post-investment subsidy.

4. The People’s Committees of centrally-affiliated coastal cities and provinces:

a) Direct and make arrangements for pilot implementation of the post-investment subsidy system defined in this Decision within their jurisdiction.

b) Authorize the communal-level People’s Committee to certify ship owner’s legal residence and completed construction of new ships as stipulated in Point a Clause 1 Article 6 hereof.

c) Direct competent units to determine demands for post-investment subsidies on an annual basis for the Ministry of Agriculture and Rural Development s consolidation, balancing and allocation of budget funds for implementation of this policy.

d) Examine and oversee pilot implementation of post-investment subsidy system to ensure right beneficiaries, compliance with stated regulations, transparency and public disclosure.

dd) Collaborate with the Ministry of Agriculture and Rural Development on assessing results of pilot post-investment system in accordance with regulations laid down in this Decision.

e) On a regular basis, submit the quarterly or financial year-end assessment report on implementation of this system to the Ministry of Finance and the Ministry of Agriculture and Rural Development.

5. Rights and responsibilities of ship owners:

a) Have access to state incentive policies in accordance with regulations laid down in this Decision.

b) Select, at their discretion, fishing vessel models and on-board machinery, equipment and shipbuilding establishments to build their new offshore fishing ships and logistic support ships thereof. In particular, fishing vessel model must conform to technical requirements concerning design of vessel models under the regulations adopted by the Ministry of Agriculture and Rural Development.

c) Comply with legislative regulations on implementation of post-investment subsidy system.

Article 12. Effect

1. This Decision takes effect on December 15, 2016.

2. Ministers of Agriculture and Rural Development, Finance, Planning and Investment, and other relevant Ministries and sectoral regulatory authorities, and Presidents of People’s Committees of centrally-affiliated coastal cities or provinces, shall be responsible for implementing this Decision./.

The Prime Minister

Nguyen Xuan Phuc