Decree No. 107/2018/ND-CP dated August 15, 2018 of the Government on rice export business

DECREE

On rice export business^[1]

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

Pursuant to the November 26, 2014 Law on Investment;

Pursuant to the November 26, 2014 Law on Enterprises;

Pursuant to the June 12, 2017 Law on Foreign Trade Management;

Pursuant to the June 14, 2005 Commercial Law;

Pursuant to the June 20, 2012 Law on Price;

At the proposal of the Minister of Industry and Trade;

The Government promulgates the Decree prescribing the rice export business.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

1. This Decree prescribes the business of export of paddy and rice of all categories (below collectively referred to as rice).

2. This Decree does not regulate the import, temporary import for re-export, temporary export for re-import, border-gate transfer, transit, subcontracted processing for foreign partners; non-commercial export, donation, and presentation as gift of rice.

Article 2.Subjects of application

This Decree applies to traders defined in the Commercial Law; agencies and organizations in charge of rice export management and administration and other related organizations and individuals.

Article 3.Right to rice export business

1. Vietnamese traders of all economic sectors that fully satisfy the conditions prescribed in Article 4 of this Decree and obtain a certificate of eligibility for rice export business (below referred to as certificate) may conduct rice export business under the provisions of this Decree and other relevant laws.

2. Traders being foreign-invested enterprises may be granted a certificate and conduct rice export business under the provisions of this Decree; other relevant provisions of Vietnamese law and the commitments of the Socialist Republic of Vietnam in treaties to which the Socialist Republic of Vietnam is a contracting party.

Chapter II

RICE EXPORT BUSINESS CONDITIONS AND CERTIFICATES OF ELIGIBILITY FOR RICE EXPORT BUSINESS

Article 4.Rice export business conditions

1. Traders lawfully established and registering their business may conduct rice export business when meeting the following conditions:

a/ Having at least 1 storehouse exclusively used for storing rice which conforms with the national standards and technical regulations on rice storehouses promulgated by competent agencies in accordance with the Law on Standards and Technical Regulations;

b/ Having at least 1 rice mill which conforms with the national standards and technical regulations on rice storehouses and rice mills promulgated by competent agencies under the Law on Standards and Technical Regulations.

2. Rice storehouses and mills satisfying the business conditions prescribed in Clause 1 of this Article may be owned by traders or rented from other organizations or individuals under lawful leasing contracts in written form with a minimum leasing term of 5 years.

Traders possessing a certificate may neither lease nor sublease rice storehouses and mills which have been used to prove their eligibility in their written application for the certificate to other traders for the purpose of application for a certificate.

3. Traders that only export organic rice, parboiled rice and micronutrient-fortified rice are not required to meet the business conditions specified at Points a and b, Clause 1, and in Clause 2, of this Article, and may export rice of these categories without a certificate and a circulation reserve prescribed in Article 12 and shall make reports under Clause 2, Article 24 of this Decree.

When carrying out customs procedures for export, traders exporting organic rice, parboiled rice and micronutrient-fortified rice without a certificate are only required to produce to customs offices the original or a copy certified by a competent agency or organization of the written certification of a competent agency or organization or the certificate of quality inspection of exported rice lawfully issued by an inspection organization confirming that the exported rice products conform with the criteria and methods guided by the Ministry of Agriculture and Rural Development and Ministry of Health as prescribed at Point dd, Clause 2, and in Clause 3, Article 22 of this Decree.

Article 5.Examination of rice export business conditions

1. Traders shall themselves declare information in the dossier of application for a certificate and take responsibility before law for the declared information and the papers and documents in the dossier as prescribed in Article 6 and for the satisfaction of the rice export business conditions specified in Article 4 of this Decree.

2. Provincial-level Departments of Industry and Trade shall assume the prime responsibility for, and coordinate with provincial-level Departments of Agriculture and Rural Development and related agencies in, organizing the examination of rice storehouses and mills of traders located in their operation localities after traders are granted a certificate

Within 5 working days after finishing the examination, the provincial-level Departments of Industry and Trade shall send to the Ministry of Industry and Trade a written report on the examination results, proposing measures to handle violations (if any), enclosed with the examination record.

3. Under annual and extraordinary plans, the Ministry of Industry and Trade shall assume the prime responsibility for, and coordinate with related agencies in, scrutinizing the post-licensing examination prescribed in Clause 2 of this Article and the traders’ maintenance of their eligibility for rice export business.

Article 6.Grant of certificates of eligibility for rice export business

1. The Ministry of Industry and Trade shall grant certificates to traders in accordance with Article 4 of this Decree.

2. A dossier of application for a certificate must comprise:

a/ An application made according to Form No. 01 in the Appendix to this Decree: 1 original;

b/ The trader’s business registration certificate, enterprise registration certificate or investment certificate: 1 copy stamped and certified as true copy by the trader;

c/ Rice storehouse and/or mill leasing contract (for case of renting rice storehouses and/or mills) or papers proving the trader’s land use rights and/or storehouse and/or mill-ownership rights (for case the storehouses and/or mills are owned by traders): 1 copy stamped and certified as true copy by the trader.

3. Number of dossier sets: 1 set.

Traders may directly submit the dossiers at the office of the Ministry of Industry and Trade or send them by post to the address: Ministry of Industry and Trade, 54 Hai Ba Trung street, Hoan Kiem district, Hanoi city, or submit them through the public service website of the Ministry of Industry and Trade’s portal.

If submitting the dossiers directly at the office of the Ministry of Industry and Trade, traders may submit copies of the papers and documents specified at Points b and c, Clause 2 of this Article and produce their originals for comparison.

4. Within 15 working days after receiving complete and valid dossiers, the Ministry of Industry and Trade shall consider and grant the certificates made according to Form No. 02 in the Appendix to this Decree.

In case of refusal to grant a certificate, within 7 working days after receiving a dossier, the Ministry of Industry and Trade shall issue a written reply clearly stating the reason to the trader.

5. A certificate will be valid for 5 years since the date of grant. Upon the expiry of the certificate, the trader shall apply for a new certificate in order to continue the rice export business.

6. The grant of new certificates in replacement of to be-expired certificates shall be carried out as follows:

a/ At least 30 days before the expiry of the certificate, a trader shall send a dossier of application for a certificate as prescribed in Clause 2 of this Article to the Ministry of Industry and Trade;

b/ The number of dossier sets, methods of submitting the dossiers, the time limit for consideration and grant of new certificates are the same as prescribed in Clauses 3 and 4 of this Article.

Article 7.Re-grant and modification of certificates

1. The Ministry of Industry and Trade shall consider and re-grant the certificates in case the certificates are mislaid, torn or destroyed.

A dossier of request for re-grant of a certificate must comprise:

a/ A written request, made according to Form No. 03 in the Appendix to this Decree: 1 original;

b/ The original of the granted certificate. In case the original is mislaid, torn or destroyed, the trader shall provide a written explanation clearly stating the reason.

2. The Ministry of Industry and Trade shall consider and modify the certificates in case of changes in contents of the certificates.

A dossier of request for modification of a certificate must comprise:

a/ A written request made according to Form No. 03 in the Appendix to this Decree: 1 original;

b/ Documents related to changes in contents of the certificate: 1 copy stamped and certified as true copy by the trader.

3. Number of dossier set: 1 set.

Traders may submit the dossiers directly at the office of the Ministry of Industry and Trade or send them by post to the address: Ministry of Industry and Trade, 54 Hai Ba Trung street, Hoan Kiem district, Hanoi city, or via the online service website of the Ministry of Industry and Trade’s portal.

If submitting the dossiers directly at the office of the Ministry of Industry and Trade, traders may submit the copies of papers and documents specified at Point b, Clause 2 of this Article and produce their originals for comparison.

4. The time limit for consideration, re-grant or modification of certificates is 10 working days after the receipt of a complete and valid dossier. In case of refusal to re-grant or modify a certificate, within 7 working days after receiving a complete and valid dossier, the Ministry of Industry and Trade shall issue a written reply clearly stating the reason to the trader.

5. The validity duration of the re-granted or modified certificate specified in Clause 1 or 2 of this Article is the validity duration of the previously granted one.

Article 8.Revocation of certificates

1. The Ministry of Industry and Trade shall consider and decide on the revocation of certificates in the following cases:

a/ It is so requested by certificate holders;

b/ Traders dissolve or go bankrupt under law;

c/ Traders have their business registration certificates or enterprise registration certificates or investment registration certificates revoked;

d/ Traders fail to export rice for 18 consecutive months, unless they have notified their business suspension under law;

dd/ Traders fail to maintain their business conditions specified in Clauses 1 and 2, Article 4 of this Decree during the business process;

e/ Traders declare untruthfully rice storehouses and/or mills or commit other frauds in order to be granted a certificate;

g/ Traders fail to comply or improperly comply with the direction and administration of competent agencies as prescribed in Article 15 of this Decree.

2. In case a trader has his/her/its certificate revoked under Clause 1 of this Article, the Ministry of Industry and Trade shall only consider and grant a new certificate to the trader after the following minimum time limit expires:

a/ In case a trader has his/her/its certificate revoked due to a violation specified at Point d or dd or first-time violation specified at Point e or g of Clause 1 of this Article, such time limit is 12 months after the issuance of the revocation decision;

b/ In case a trader has his/her/its certificate revoked due to a violation specified at Point e or g, Clause 1 of this Article and relapses into the violation, such time limit will be 24 months since the issuance of the latest revocation decision.

3. The grant of new certificates to traders after the revocation must comply with Article 6 of this Decree and shall be carried out only when the minimum time limit specified in Clause 2 of this Article expires.

Article 9.Fees for grant, re-grant and modification of certificates

Traders requesting the grant, re-grant or modification of certificates are not required to pay any fees.

Chapter III

RICE EXPORT ADMINISTRATION

Article 10.Rice export administration objectives and principles

Rice export administration must ensure the following objectives and principles:

1. To contribute to the consumption of community paddy and rice and ensure the interests of rice growers under current policies.

2. To ensure the export and domestic consumption balance; to contribute to the stabilization of domestic paddy and rice prices.

3. To comply with international commitments; to ensure profitable export.

Article 11.Balancing of export commodity paddy and rice sources

1. Annually, the Ministry of Agriculture and Rural Development shall assume the prime responsibility for, and coordinate with provincial-level People’s Committees in, balancing the domestic paddy and rice consumption demands, announce in the fourth quarter the sources of commodity paddy and rice to be exported in the subsequent plan year and notify the Ministry of Industry and Trade, provincial-level People’s Committees and Vietnam Food Association of the production, output and sources of commodity paddy and rice to be exported according to different categories and crops in the year.

2. Rice export administration shall be performed on the basis of commodity paddy and rice sources balanced for annual export prescribed in Clause 1 of this Article.

Article 12.Circulation reserves

Rice export traders shall constantly maintain the minimum circulation reserve equal to 5% of the rice volume they have exported in the previous 6 months.

Article 13.Purchase of export commodity paddy and rice

1. Rice export traders shall notify provincial-level People’s Committees of paddy and rice purchase places and announce the purchase places, post up purchase prices based on quality and categories of commodity paddy and rice and harvest seasons for farmers to know and make direct transactions.

2. If the commodity paddy and rice are purchased via other traders or from processing establishments, traders and processing establishments shall associate and organize themselves into stable systems for implementation of the provisions of Clause 1 of this Article.

Article 14.Determination and announcement of tentative paddy prices

1. The Ministry of Finance shall assume the prime responsibility for, and coordinate with the Ministry of Agriculture and Rural Development in, promulgating regulations and guiding methods to investigate and determine production costs and calculate commodity paddy production costs for provincial-level People’s Committees to use as the basis for determining and announcing the estimated average paddy production costs in their provinces or cities right at the beginning of every production crop in the year.

2. Based on the estimated average paddy production cost for every production crop, announced by provincial-level People’s Committees, the Ministry of Finance shall assume the prime responsibility for, and coordinate with the Ministry of Agriculture and Rural Development in, examining, synthesizing and determining the estimated average paddy production cost for each crop of the entire production sector.

3. Based on each crop’s estimated average production cost, the Ministry of Finance shall determine and announce the tentative paddy price right at the beginning of each crop for use as the basis for application of measures to stabilize the commodity paddy and rice prices on the market, contributing to ensuring the average profit levels for paddy growers under current policies.

Article 15.Stabilization of domestic commodity paddy and rice prices

1. The announcement and application of measures to stabilize paddy and rice prices must comply with the law on prices.

2. If the paddy and rice prices rise irrationally high, rice export traders shall organize the rice distribution systems, immediately supplying the in-stock rice volumes and circulation reserves in order to stabilize the domestic market under the direction of competent state agencies.

3. If the paddy and rice prices drop irrationally low not in conformity with the tentative paddy prices referred to in Article 14 of this Decree, the Ministry of Agriculture and Rural Development shall assume the prime responsibility for, and coordinate with the Ministry of Finance, Ministry of Industry and Trade, State Bank of Vietnam and Vietnam Food Association in, submitting to the Prime Minister for consideration and decision  the application of specific measures to regulate the market, contributing to the minimization of harms to producers.

4. Rice export traders shall apply measures to stabilize the paddy and rice prices prescribed in this Article and be compensated for arising expenses under decisions and directions of competent state agencies.

Article 16.Association in production, consumption and raw-material zone construction

1. Rice export traders are encouraged to construct raw-material zones or associate with producers to build raw-material zones (below collectively referred to as raw-material zones) by the following methods:

a/ Constructing raw-material zones managed and used by traders in rice production areas assigned or leased by the State or received as capital contribution or on land areas rented from households, organizations and individuals for rice production in accordance with the land law;

b/ Applying policies to encourage the development of cooperation and association of production in combination with consumption of farm products and building of vast rice fields;

c/ Signing paddy and rice production and consumption association contracts with rice-growing households or representatives of rice-growing farmers under the guidance of the Ministry of Agriculture and Rural Development and in accordance with law;

d/ Other forms prescribed and guided by competent state agencies.

2. Traders constructing raw-material zones as prescribed in Clause 1 of this Article are eligible for the following specific supports for:

a/ Participation in trade promotion programs, advertising of images and brands of products and enterprises at home and abroad;

b/ Allocation of quotas for performance of concentrated rice export contracts;

c/ Participation in the State’s programs on purchase of paddy and rice for temporary reserve.

3. The Ministry of Agriculture and Rural Development shall assume the prime responsibility for, and coordinate with related agencies in, reviewing and promulgating or submitting to the Government or Prime Minister for promulgation mechanisms and policies to encourage and support the construction of raw-material zones.

Article 17.Assurance of quality of export commodity paddy and rice

1. Export rice must conform to relevant national standards and technical regulations and meet the requirements on quality, packages, labeling, packing, preservation and origin tracking under the regulations of importing countries, unless otherwise required by importers.

2. Rice export traders and traders exporting rice products specified in Clause 3, Article 4 of this Decree shall abide by the processes, standards and technical regulations on production, processing and preservation of commodity paddy and rice promulgated by competent state agencies.

Article 18.Rice export market development

1. The Ministry of Industry and Trade shall assume the prime responsibility for, and coordinate with the Ministry of Agriculture and Rural Development and related agencies in, negotiating on the opening of rice markets, removing difficulties and barriers of markets; directing and organizing market information activities, carrying out programs and activities of trade exchange, product marketing, rice trade promotion, and establishing, consolidating and expanding relations of cooperation on rice trade with different countries and territories.

2. The Ministry of Industry and Trade shall assume the prime responsibility for, and coordinate with other ministries, sectors and related agencies in, negotiating and concluding ministerial-level memos and agreements on rice trade with foreign countries and territories. If foreign countries or territories request the signing of agreements at government or enterprise level, the Ministry of Industry and Trade shall report such to the Prime Minister for consideration and decision.

3. The Ministry of Agriculture and Rural Development shall assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade and related agencies in, monitoring, negotiating and removing technical barriers and plant quarantine applied by foreign countries and territories to imported paddy and rice; and negotiating and concluding agreements on plant quarantine and technical regulations on paddy and rice quality with foreign countries and territories.

4. The Ministry of Finance shall allocate annual funds for the implementation of programs and activities specified in Clauses 1, 2 and 3 of this Article.

Article 19.Transaction, negotiation, bidding participation, conclusion and performance of concentrated rice export contracts

1. Concentrated rice export contract (below referred to as concentrated contract) means the rice export contract concluded under a memo or an agreement between a competent agency of the Vietnamese Government and a competent agency of the government of a foreign country or territory or the rice export contract concluded under the Prime Minister’s direction.

2. The Ministry of Industry and Trade shall consult related agencies and organizations and appoint principal traders for transacting concentrated contracts according to the following criteria:

a/ Their last two years’ achievements in the rice export into the market projected for concentrated contract;

b/ Their last two years’ rice export achievements;

c/ Their transactions with foreign partners appointed or expected to be appointed as principal rice importers.

Traders already appointed to be principal ones before this Decree takes effect shall continue with their tasks until the termination of the signed contracts.

3. In case 2 or more traders are appointed to be principal ones for a single market with concentrated contracts, they shall act as principal traders on a rotational basis.

4. Responsibilities of principal traders in transaction, negotiation or bidding participation, conclusion and organization of performance of concentrated contracts:

a/ To take the initiative in monitoring the market developments, promptly grasp information on demands for transactions and conclusion of rice import contracts or the organization of rice import biddings by competent authorities of importing countries;

b/ Based on the supply-demand balance and capability, traders shall proactively formulate schemes for transactions and bidding participation, decide by themselves price offers, ensuring profitable export, and take self-responsibility for the concluded contracts;

c/ To send written reports to the Ministry of Industry and Trade on the capability for transaction, contract conclusion or bidding participation, the capability for balancing commodity sources and other related issues in order to ensure the performance of contracts; results of transactions, contract conclusion or bidding participation and plans on organization of contract performance;

d/ To ensure the performance of concluded concentrated contracts; to implement the entrusted export quotas which are returned, are not implemented, or are not received by any traders.

5. Principal traders concluding and performing concentrated contracts shall directly export 20% of the contractual rice volume. If the rotation mechanism is applied as prescribed in Clause 3 of this Article, the Ministry of Industry and Trade shall decide on the allocation of 20% of the contractual rice volume to principal traders.

Based on the criteria defined in Clause 6 of this Article and pursuant to the regulations promulgated by the Ministry of Industry and Trade, Vietnam Foods Association shall distribute the remaining 80% of the rice volume under concentrated contracts to other rice export traders for entrusted export.

6. The distribution of concentrated contracts to rice export traders for entrusted export shall be based on the following criteria:

a/ Traders’ direct export achievements in the last 6 months;

b/ Goods delivery responsibility under the assigned concentrated contract;

c/ Traders’ results of construction of raw-material zones or association in paddy and rice production and consumption;

d/ Traders’ achievements in paddy and rice purchase under direction of competent agencies or organizations.

7. Vietnam Foods Association shall allocate concentrated contract performance quotas to traders according to the criteria prescribed in Clause 6 of this Article; monitor and urge the performance of concentrated contracts, including the conclusion and performance of entrusted export contracts, and report on these activities to the Ministry of Industry and Trade.

After the allocation of quotas by Vietnam Foods Association, traders receiving the quotas and principal traders shall sign contracts on the performance of concentrated contracts, clearly defining the rights and obligations of parties.

Contractual disputes between parties shall be settled in accordance with law.

8. Traders may not be given concentrated contract performance quotas referred to in this Article in the following cases:

a/ They participate in biddings, making transactions and concluding contracts for direct or indirect export of rice into markets with concentrated rice export contracts in contravention of regulations and directions of competent state agencies;

b/ They forged documents or committed other frauds in order to be appointed as principal traders for concentrated contracts, to be allocated concentrated contract performance quotas or to get the approval of the return of entrusted export quotas already allocated;

c/ They fail to implement or implement incompletely the allocated export quotas not due toforce majeureevents and fail to report to competent state agencies according to regulations.

The time limit for non-allocation of concentrated contract performance quotas referred to in this Clause is 6 months.

If traders commit more than one violation specified in this Clause or repeat their violation while still serving the measure prescribed in this Clause, the time limit for application of the measure referred to in this Clause will be the total of periods of time applied to each handled violation.

9. If foreign countries or territories organize open biddings for traders other than principal traders of concentrated contracts, the Ministry of Industry and Trade shall issue notifications based on notifications of competent authorities of such foreign countries or territories, for rice export traders to know and participate in the biddings and these traders shall take self-responsibility for their business efficiency.

10. Pursuant to this Decree, the Ministry of Industry and Trade shall assume the prime responsibility for, and coordinate with related agencies in, promulgating regulations guiding the criteria for appointment of principal traders, and the conclusion and performance of concentrated contracts.

Article 20.Collection of statistics, exploitation of information and data and reporting on statistical data on rice export contracts and performance of rice export contracts

1. The Ministry of Industry and Trade shall assume the prime responsibility for, and coordinate with the Ministry of Finance and related agencies in, reaching agreement on information and data to be notified about rice export contracts and mechanism for provision of feedback on the implementation of goods delivery under notified contracts to serve the rice export administration.

2. The General Department of Customs shall collect and update statistics and monthly, quarterly, annually or extraordinarily report to the Ministry of Industry and Trade on rice export activities according to the following details: Volume, value, categories of paddy and rice, market, importers, exporters, export border-gates, data on export of organic rice, parboiled rice and micronutrient-fortified rice.

Article 21.Assurance of rice export administration objectives and principles

In order to ensure the rice export administration objectives and principles based on the market developments and practical requirements of rice export administration, the Prime Minister shall consider and decide on the adjustment of rice export activities and application of floor prices for rice exports based on the proposal of the Minister of Industry and Trade, Minister of Agriculture and Rural Development, and Minister of Finance.

Chapter IV

RESPONSIBILITIES OF STATE AGENCIES AND RELATED ORGANIZATIONS AND INDIVIDUALS

Article 22.Responsibilities of ministries, ministerial-level agencies and provincial-level People’s Committees

Apart from the responsibilities prescribed in this Decree and current relevant regulations, the Ministry of Industry and Trade, Ministry of Agriculture and Rural Development, Ministry of Finance,  Ministry of Health, State Bank of Vietnam and related provincial-level People’s Committees also have the following responsibilities:

1. The Ministry of Industry and Trade:

a/ To formulate mechanisms for trade promotion, develop rice export markets according to peculiar mechanisms, attaching importance to key and traditional markets as well as new and potential markets, and categories of export rice of high added value.

To proactively find and expand markets of rice export under concentrated contracts, to negotiate and conclude memos on rice trading with foreign countries or territories with import demands;

b/ To inspect the observance of law on rice export business by traders and related agencies and organizations; to coordinate with competent agencies and organizations in inspecting, detecting and handling violations in rice export business; to settle complaints and denunciations and handle violations in the field of rice export business according to its competence;

c/ To assume the prime responsibility for, and coordinate with related ministries, ministerial-level agencies, provincial-level People’s Committees and agencies involved in rice export administration in, ensuring the principles prescribed in this Decree;

d/ To assume the prime responsibility for, and coordinate with the Ministry of Agriculture and Rural Development in, monitoring and overseeing Vietnam Foods Association’s allocation of quotas for performance of concentrated contracts on rice export to ensure publicity, transparency and compliance with this Decree;

dd/ To coordinate with related agencies in guiding and organizing the application of policies to encourage and support rice export traders prescribed in Clause 2, Article 16 of this Decree;

e/ To guide and assist rice export traders in raising their production and business capabilities, obtaining market information, conducting negotiations, concluding and performing export contracts, and resolving international trade disputes.

2. The Ministry of Agriculture and Rural Development:

a/ To direct localities in the formulation and implementation of master plans on commodity rice production zones; to guide farmers in conducting production specializing in rice varieties of high quality and value, ensuring food safety; to apply scientific and technological advances to paddy and rice production, processing and preservation; to raise the quality and brands of Vietnamese rice on market;

b/ To assume the prime responsibility for, and coordinate with provincial-level People’s Committees and Vietnam Foods Association in, monitoring the paddy and rice production and yields in order to balance export commodity paddy and rice sources; to assume the prime responsibility for, and coordinate with ministries, ministerial-level agencies, localities and Vietnam Foods Association in, ensuring the national food security, the rice export objectives and administration principles prescribed in this Decree;

c/ To promulgate or submit to competent authorities for promulgation mechanisms and preferential policies for traders investing in hi-tech paddy and rice production and processing and production and trading in clean rice, organic rice, high quality and added- value rice or in processing of waste products and by-products from paddy or rice;

d/ To formulate and promulgate or submit to competent authorities for promulgation policies to encourage and support the construction of raw-material zones and association in paddy and rice production and consumption; to raise the capability of farmers’ representative organizations and remove difficulties and obstacles in relevant mechanisms and policies;

dd/ To assume the prime responsibility for, and coordinate with related agencies in, guiding the criteria and methods of determining organic rice and parboiled rice products referred to in Clause 3, Article 4 of this Decree; to promulgate the processes of rice production, export paddy and rice processing, preservation, and quality inspection; to formulate and promulgate national technical norms and standards on export paddy and rice; to promulgate national standards and technical regulations on paddy and rice storehouses and mills in order to meet the rice export business conditions according to regulations; to guide, direct and organize the inspection and supervision of implementation by traders, producers and relevant organizations and individuals.

3. The Ministry of Health shall assume the prime responsibility for, and coordinate with related agencies in, guiding the criteria of and methods of identifying micronutrient-fortified rice products referred to in Clause 3, Article 4 of this Decree; to promulgate regulations on maximum chemical residues for rice products; to formulate and promulgate national standards and technical regulations on export rice packages according to regulations; to guide, direct and organize the inspection and supervision of the implementation thereof by traders, producers and related organizations and individuals.

4. The Ministry of Finance:

a/ To assume the prime responsibility for, and coordinate with related ministries, ministerial-level agencies and localities in applying measures to stabilize paddy and rice prices in accordance with law;

b/ To direct the General Department of Customs to make sum-up reports and send them periodically (monthly, quarterly and annually) or extraordinarily according to rice export requirements.

5. The State Bank of Vietnam shall direct credit institutions to take the initiative in balancing funding sources to promptly meet the borrowing demands of traders to invest in the construction of paddy and rice storehouses, mills, paddy-drying facilities in raw- material zones, rice export traders building raw-material zones, rice producers in raw-material zones, rice producers associated in rice production and consumption with rice export traders.

6. Responsibilities of provincial-level People’s Committees:

a/ To formulate and organize the implementation of, rice production master plans, to direct the provision of supplies, structure of varieties, application of farming techniques for producing high-quality rice to meet the market demands; to inspect paddy and rice production, circulation and consumption activities in their localities; to manage and organize the implementation of master plans on systems of paddy and rice storehouses and mills in their localities; to direct the purchase of paddy and rice from producers and purchase under paddy and rice production and sale association contracts signed with producers under current state policies in their localities;

b/ To report periodically or at the request of the Prime Minister, related ministries or ministerial-level agencies on the output and categories of commodity paddy and rice in stock and the projected paddy and rice yields according to each category and each crop in their localities to serve the rice export administration;

c/ To direct provincial-level Departments of Finance; Agriculture and Rural Development; and Industry and Trade; and related agencies in surveying production costs and calculating rice production costs for each rice crop under this Decree and the guidance of the Ministry of Finance; to direct, inspect and oversee rice export traders in their localities in observing the regulations and abiding by the direction and administration of competent state agencies under this Decree; to organize the effective application of policies on construction of raw-material zones in their localities; to inspect, detect and handle violations of the regulations on production, trading and use of fertilizers and plant protection drugs in localities;

d/ To direct provincial-level Departments of Industry and Trade and related agencies of provinces in organizing the examination of paddy and rice storehouses and mills to meet the business conditions in their localities as prescribed in Clause 2, Article 5 of this Decree;

dd/ To mobilize and organize local people to conduct rice production according to planning and orientations of the State in order to raise the efficiency of paddy and rice production, trading and export; to abide by the direction and guidance of the agricultural bodies on production process, varieties, crop structure; to carry out production according to market demands and orders placed by traders, to align and cooperate with traders in building raw-material zones in service of export.

Article 23.Responsibilities of Vietnam Foods Association

Apart from the functions and tasks prescribed by current law, Vietnam
Foods Association also has the following specific responsibilities:

1. To coordinate with provincial-level People’s Committees in directing, guiding and supporting the Association’s members to build raw-material zones under current state policies.

2. To coordinate with competent agencies in inspecting and detecting violations in rice export and proposing competent agencies to handle them.

3. To coordinate with ministries, ministerial-level agencies and localities in directing and guiding the Association’s members to purchase commodity paddy and rice, maintain the mandatory circulation reserve and stabilize the market as prescribed by this Decree.

4. To establish and maintain the operation of websites on rice supply and demand, domestic and overseas markets, importers, prices and rice trading forecasts, and information on paddy and rice export and consumption.

5. To proactively find and expand rice export markets; to guide the Association’s members to raise the market capability and take the initiative in transaction, negotiation and conclusion of rice export contracts in order to raise the rice export profit.

6. To report on a weekly, monthly and quarterly basis to the Ministry of Industry and Trade, Ministry of Finance, Ministry of Agriculture and Rural Development, Government Office and provincial-level People’s Committees on development of domestic paddy and rice prices; export paddy and rice prices; and in-stock rice volumes of its members.

7. To promptly report to related ministries and ministerial-level agencies on arising issues according to their assigned functions and tasks and propose handling measures.

Article 24.Responsibilities of rice export traders

1. To immediately send written reports to the Ministry of Industry and Trade and provincial-level Departments of Industry and Trade of the localities where traders have declared their paddy and rice storehouses and mills in order to be granted certificates on their failure to meet the business conditions or on changes in their paddy and rice storehouses and mills in order to meet the business conditions defined in Article 4 of this Decree.

2. To report on the 20^thof every month to the Ministry of Industry and Trade on the conclusion and performance of rice export contracts in the reporting period.

3. To report on every Thursday to the Ministry of Industry and Trade on their actual in-stock paddy and rice volumes according to specific categories for summarization to serve administration purposes.

4. To report on a quarterly and annual basis or at the request of the Ministry of Industry and Trade, Ministry of Finance, Ministry of Agriculture and Rural Development, provincial-level People’s Committees and Departments of Industry and Trade of localities where traders are headquartered, locate their paddy and rice storehouses and mills or construct their raw-material zones. Periodical reports shall be made according to Form No. 04 in the Appendix to this Decree.

5. To proactively proceed with the building of raw-material zones under the state policies; to implement the regime of reporting on the raw-material zone construction to the Ministry of Industry and Trade and related agencies according to regulations.

6. Traders that make untruthful reports or fail to observe the reporting regime according to this Article may not enjoy preferential policies specifies in Clause 2, Article 16 of this Decree until they stop and address their violations.

7. Based on the provisions of this Decree, the Ministry of Industry and Trade shall detail the reporting regime applicable to traders prescribed in this Article in the direction of application of information technology convenient for traders.

Chapter V

IMPLEMENTATION PROVISIONS

Article 25.Transitional provisions

1. Traders who have been granted certificates under Decree No.109/2010/ND-CP may continue with their rice export business according to the effective duration of the granted certificates, without having to apply for re-grant of certificates under this Decree, except for the re-grant or modification of certificates as prescribed in Article 7 of this Decree.

2. Traders with foreign direct investment capital that have carried out rice production and export activities before Decree No.109/2010/ND-CP takes effect may continue their activities under the granted licenses.

3. For traders who have submitted dossiers of application for grant, re-grant or modification of certificates under Decree No. 109/2010/ND-CP before this Decree takes effect, the Ministry of Industry and Trade shall consider and grant, re-grant and modify the contents of certificates under Decree No.109/2010/ND-CP.

The time of dossier submission shall be counted from the date of forwarding the dossier shown on the postmark (for traders sending dossiers by post), the date the Ministry of Industry and Trade received the dossier on the public-service website or the date shown on the official letter-receiving seal of the Ministry of Industry and Trade, for traders submitting dossiers directly at the office of the Ministry of Industry and Trade.

Article 26.Effect

1. This Decree takes effect on October 1, 2018.

2. To annul the Government’s Decree No. 109/2010/ND-CP of November 4, 2010, on rice export business.

Article 27.Implementation organization and responsibility

1. Pursuant to the provisions of this Decree, the Ministry of Industry and Trade, Ministry of Agriculture and Rural Development, Ministry of Health and Ministry of Finance, and the State Bank of Vietnam shall promulgate documents detailing and guiding the implementation of this Decree.

The Ministry of Agriculture and Rural Development and Ministry of Health shall promulgate documents guiding the determination of rice categories  referred to at Point dd, Clause 2, and in Clause 3, Article 22 of this Decree for implementation after this Decree takes effect; and promulgate regulations on criteria and methods for determining these categories of rice before December 31, 2018.

2. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and the President of Vietnam Food Association shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN XUAN PHUC

* The Appendix to this Decree is not translated.