Decree No. 17/2018/ND-CP dated February 22, 2018 of the Government on amending and supplementing a number of articles of the Government’s Decree No. 67/2014/ND-CP of July 7, 2014, on a number of fisheries development policies

DECREE

Amending and supplementing a number of articles of the Government’s Decree No. 67/2014/ND-CP of July 7, 2014, on a number of fisheries development policies^[1]

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

Pursuant to the November 26, 2013 Fisheries Law;

Pursuant to the June 16, 2010 Law on the State Bank of Vietnam;

Pursuant to the June 16, 2010 Law on Credit Institutions;

Pursuant to the December 9, 2000 Law on Insurance Business and the November 24, 2010 Law Amending and Supplementing a Number of Articles of the Law on Insurance Business;

Pursuant to the June 3, 2008 Law on Enterprise Income Tax and the June 19, 2013 Law Amending and Supplementing a Number of Articles of the Law on Enterprise Income Tax;

Pursuant to the June 3, 2008 Law on Value-Added Tax and the June 19, 2013 Law Amending and Supplementing a Number of Articles of the Law on Value-Added Tax;

Pursuant to the November 29, 2006 Law on Tax Administration and the November 20, 2012 Law Amending and Supplementing a Number of Articles of the Law on Tax Administration;

Pursuant to the November 25, 2009 Law on Royalties;

Pursuant to the June 18, 2014 Law on Public Investment;

Pursuant to the November 25, 2015 Law on Charges and Fees;

At the proposal of the Minister of Agriculture and Rural Development, the Minister of Finance and the Governor of the State Bank of Vietnam;

The Government promulgates the Decree amending and supplementing a number of articles of the Government’s Decree No. 67/2014/ND-CP of July 7, 2014, on a number of fisheries development policies.

Article 1.To amend, supplement and annul a number of articles and clauses of the Government’s Decree No. 67/2014/ND-CP of July 7, 2014, on a number of fisheries development policies as follows:

1. To amend Article 1 as follows:

“Article 1. Scope of regulation

This Decree prescribes investment, credit and insurance policies; tax incentives; one-off post-investment support policy and some other policies to develop the fisheries sector.”

2. To amend Clauses 1 and 3, Article 3 as follows

“1. The central budget shall allocate 100% of funds needed for the construction of essential infrastructure items of grade-I fishing ports, regional-level anchorage and storm shelter zones (including piers; embankments and breakwaters; dredging of port channels and anchorage waters; ship moorage facilities; wastewater treatment systems; sorting houses; administration offices; internal yards and roads; lighting systems; systems of pilot buoys, signals and lights; and special-use communications systems) and for the construction of 5 large fisheries centers (impetus fishing ports).

3. The central budget shall allocate 100% of funds needed for the construction of key infrastructure items of consolidated aquaculture zones and consolidated breeding zones under projects managed by ministries or central sectors. These items include water supply and drainage systems (ponds, water tanks, sluices, canals, water supply and drainage pipelines, and pumping stations), surrounding dikes, embankments, roads, power systems, common-use wastewater treatment facilities; upgrading of infrastructure facilities for national and regional aquatic breeding centers, aquaculture environment warning and monitoring centers; and central and regional aquatic breed assay and testing centers.”

3. To add Point c to Clause 2, Article 4 as follows:

“c/ In case a ship owner is no longer capable of implementing a ship building or upgrading project or has completed the building of a ship but is incapable of conducting fishing activities, it is permitted to change the ship owner and the new ship owner will continue enjoying the interest-rate support when receiving the ship and outstanding loan from the former ship owner.”

4. To amend Clause 3, Article 4 as follows:

“3. Working capital lending policy

a/ Eligible borrowers: Owners of offshore fishing ships and offshore fishing logistics service ships (below referred collectively to as clients).

b/ The lending of working capital shall be agreed upon between credit institutions and clients in conformity with the current regulations on credit policies for agriculture and rural development.”

5. To add Article 4a as follows:

“Article 4a. One-off post-investment support policy

1. Beneficiaries: Those who build and own offshore fishing ships or offshore fishing logistics service ships with a total main engine capacity of at least 800 CV, specifically, newly built ships within the quantity allocated by the Ministry of Agriculture and Rural Development to provinces; ships built to replace fishing trawlers with a capacity of at least 90 CV shifting to fishing trades which are encouraged to be developed such as purse seining, gillnetting (except tuna gillnetting), hooking-and-lining, stick-held falling netting, and fishing logistics services.

2. Conditions for enjoying support:

a/ The ship owner is a member of a fisheries production group, fisheries association or fisheries cooperative as approved by a provincial-level People’s Committee;

b/ The newly built fishing ship is a steel-hull or composite-hull offshore fishing ship or fishing logistics service ship;

c/ The newly built ship’s main engine is a brand-new genuine hydraulic one;

d/ The fishing ship has a long-distance communication device integrated with a satellite tracking device and connected to a shore station for tracking during operation at sea;

dd/ The offshore fishing ship has a technical safety certificate, a registration certificate and a fishing license;

e/ The fishing logistics service ship has a technical safety certificate and a registration certificate.

3. Support levels:

a/ For newly built steel-hull fishing ships and fishing logistics service ships (including new equipment and devices):

For fishing ships with a total main engine capacity of between 800 CV and under 1,000 CV, ship owners are entitled to a support accounting for 35% of the ship building cost but not exceeding VND 6.7 billion per ship;

For fishing ships with a total main engine capacity of 1,000 CV or higher, ship owners are entitled to a support accounting for 35% of the ship building cost but not exceeding VND 8 billion/ship.

b/ For newly built composite-hull fishing ships and fishing logistics service ships (including new equipment and devices), ship owners are entitled to a support accounting for 35% of the ship building cost but not exceeding VND 6.7 billion/ship.

4. Order and procedures for receiving support:

a/ A ship owner shall submit directly or send by post a set of dossier of request for support to the provincial-level Agriculture and Rural Development Department of the locality where he/she registers his/her fishing ship. A dossier must comprise:

A written request for one-off post-investment support, made by the ship owner and certified by the People’s Committee of the commune or ward where the ship owner registers permanent residence (according to the form provided in the Appendix to this Decree);

A copy of the people’s identity card or citizen identity card of the ship owner;

Copies of the following papers: technical safety certificate, registration certificate and fishing license, for fishing ships; technical safety certificate and registration certificate, for offshore fishing logistics service ships;

The ship building contract serving the determination of the ship owner who orders the ship building;

The shipyard’s sheet on settlement of the total ship building cost (covering also costs of marine machinery and equipment; equipment serving ship operation; equipment and devices for marine product preservation, goods preservation and loading and unloading), enclosed with documents on payment for ship building and purchase of equipment and devices.

b/ Within 10 working days after receiving the ship owner’s complete dossier of request for support, the provincial-level Agriculture and Rural Development Department shall assume the prime responsibility for, and coordinate with related units in, appraising the dossier and proposing the provincial-level People’s Committee to approve the support amount for the ship owner;

c/ Within 5 working days after receiving the provincial-level Agriculture and Rural Development Department’s proposal, the provincial-level People’s Committee shall issue a decision to approve the support amount for the ship owner and send it to the district-level State Treasury Office of the locality where the ship owner will receive the support for posting up at the latter’s office.

d/ Within 2 working days after receiving the provincial-level People’s Committee’s decision, the provincial-level Finance Department shall make a payment order and send it to the State Treasury;

dd/ Within 2 working days after receiving the provincial-level Finance Department’s payment order, the State Treasury shall notify the ship owner of the payment schedule. Upon receiving money, the ship owner shall produce his/her people’s identity card or citizen identity card for comparison;

e/ Fund estimation, allocation and finalization

Based on the number of newly built ships entitled to one-off post-investment support, provincial-level Finance Departments shall coordinate with related departments, sectors and localities in determining and reporting the funding demand for support to provincial-level People’s Committees for submission to the Ministry of Finance.

The Ministry of Agriculture and Rural Development shall sum up funding demands of localities and report them to the Ministry of Planning and Investment for the latter to assume the prime responsibility for, and coordinate with the Ministry of Finance in, summing up and proposing the Prime Minister to allocate additional funds from the central budget to localities.

Funds for one-off post-investment support shall be integrated into the final accounts of annual provincial-level budget expenditures in accordance with the Law on the State Budget, its guiding documents and the current state budget index.”

6. To amend and supplement Article 5 as follows:

“Article 5. Insurance policy

The state budget shall support funds for purchase of insurance for offshore fishing ships and offshore fishing logistics service ships which are members of fishing teams or fisheries associations or fishing cooperatives and have a total main engine capacity of at least 90 CV:

1. Annually, to support 100% of funds needed for the purchase of accident insurance for every crewman working on board ships.

2. Annually, to support 50% of funds needed for the purchase of hull insurance (insurance for all risks to hulls, excluding fishing equipment and devices, fishing nets and gear on board ships).”

7. To amend Clauses 2, 3, 7 and 8, Article 6 as follows:

“2. Exemption from registration fee under Clause 23, Article 9 of the Government’s Decree No. 140/2016/ND-CP of October 10, 2016, on registration fee.

3. Exemption from license fee under Clause 4, Article 3 of the Government’s Decree No. 139/2016/ND-CP of October 4, 2016, on license fee.

7. Exemption for personal income tax under Clause 5, Article 4 of the 2007 Law on Personal Income Tax and the 2014 Law Amending and Supplementing a Number of Articles of the Tax Laws.

8. Enterprises having incomes from aquaculture, aquatic product processing or fishing will be entitled to enterprise income tax incentives in accordance with the Law on Enterprise Income Tax and guiding documents.”

8. To amend Clause 1, Article 7 as follows:

“1. To support 100% of funds needed for training ship masters, chief engineers and crewmembers in charge of operating steel-hull or new material-hull ships; to provide guidance on new fishing and product preservation techniques for ships with a total main engine capacity of 400 CV or higher.”

9. To amend Clause 2, Article 8 as follows:

“2. Funds for training and regular maintenance and repair of steel-hull ships; and funds for implementation of the insurance policy and one-off post- investment support policy shall be allocated from the central budget to local budgets as targeted supports under decisions of the Prime Minister.”

10. To amend Point e, Clause 1, Article 9 as follows:

“e/ Direct and guide localities in implementing support policies and conducting periodical reviews; assume the prime responsibility for, and coordinate with related ministries, sectors and provincial-level People’s Committees in, holding the final review of the implementation of support policies for reporting to the Government.”

11. To add Point g to Clause 1, Article 9 as follows:

“g/ Review, supplement and formulate the regulations on supervision of the building of fishing ships.”

12. To amend Clause 2, Article 9 as follows:

“2. To assume the prime responsibility for, and coordinate with the Ministry of Finance and Ministry of Agriculture and Rural Development in, summing up the demands for and balancing and allocating development investment capital under five-year and annual plans for provision of interest-rate subsidy and one-off post-investment support and implementation of investment programs and projects, ensure the completion of every work.”

13. To amend and supplement Point b, Clause 3, Article 9 as follows:

“b/ Guide the interest-rate subsidy mechanism for implementation of the credit policy prescribed in Article 4 of Decree No. 67/2014/ND-CP. Guide the addition of objective andforce majeurereasons which arise in reality and may be cited for application of the risk handling mechanism under Decree No. 67/2014/ND-CP.”

14. To add Point d to Clause 3, Article 9 as follows:

“d/ To assume the prime responsibility for, and coordinate with ministries and sectors in, settling problems in the method, dossier, order and procedures for provision of one-off post-investment support for fishermen building new fishing ships.”

15. To add Point dd to Clause 4, Article 9 as follows:

“dd/ To guide the change of creditors in case ship owners are no longer capable of implementing ship building or upgrading projects or conducting fishing activities although the ship building has been completed.”

16. To amend Clause 2, Article 10 as follows:

“2. To assign commune-level People’s Committees to certify subjects eligible for one-off post-investment support under Article 4a; those eligible for support under Article 5; and those eligible for support under Article 7 of this Decree, and report them to district-level People’s Committees for appraisal and reporting to provincial-level People’s Committees for approval as the basis for implementation.”

17. To add Clauses 7, 8, 9, 10 and 11 to Article 10 as follows:

“7. To consider and make decision after reaching agreement with lending commercial banks in case ship owners that are no longer capable of implementing ship building or upgrading projects or conducting fishing activities although the ship building has been completed now wish to transfer their ships.

8. To direct related units to determine funds needed for provision of one-off post-investment support and report it to the Ministry of Finance for sum-up, balancing and allocation of budget funds for implementation of such support policy.

9. To inspect and supervise the implementation of the one-off post-investment support policy; the building and upgrading of fishing ships; ensure that supports are provided to eligible subjects in accordance with regulations and in a public and transparent manner.

10. To direct provincial departments and related sectors to coordinate with the banking sector in urging ship owners who are entitled to loans under Decree No. 67/2014/ND-CP to repay loans on schedule under signed credit contracts.

11. Every quarter and at the end of every fiscal year, to report the result of implementation of support policies to the Ministry of Finance and the Ministry of Agriculture and Rural Development.”

18. To add Clauses 5 and 6 to Article 12 as follows:

“5. Ship owners shall supervise the process of building, converting, maintaining and repairing their fishing ships. In case they are incapable of performing supervision work, ship owners may hire supervision consultants; expenses for hiring supervision consultants shall be included in the total investment for ship building.

6. In case a ship owner is no longer capable of implementing his/her ship building or upgrading project or has completed the ship building but transfers the right to implement the ship building project, the new ship owner may continue enjoying support policies if he/she meets the conditions prescribed in this Decree and shall further perform obligations under the project.”

19. To amend Clause 4, Article 13 as follows:

“4. The implementation duration of the policies prescribed in this Decree is as follows:

a/ The policies prescribed in Article 3; Clause 3, Article 4; Articles 5, 6 and 7 of Decree No. 67/2014/ND-CP of July 7, 2014, shall be implemented through December 31, 2020.

b/ The insurance support policy for ship owners borrowing loans to build or upgrade ships under Decree No. 67/2014/ND-CP of July 7, 2014, shall be implemented during the term of loans eligible for interest-rate support (not exceeding 11 years for cases of building wood-hull ships or upgrading ships; or 16 years for cases of building steel-hull or new material-hull ships).

c/ The policy on one-off post-investment support for building and owning offshore fishing or offshore fishing logistic service ships with a total engine capacity of 800 CV or higher shall be implemented through December 31, 2020.

d/ The deadline for signing credit contracts on ship building or upgrading under Clause 1, Article 4 is December 31, 2017. For loans which are disbursed after December 31, 2018, lending interest rates shall be agreed between commercial banks and clients in accordance with current regulations.”

20. To annul Clause 6, Article 3, and Clause 2, Article 7, of the Government’s Decree No. 67/2014/ND-CP of July 7, 2014, on a number of fisheries development policies.

Article 2.Effect

1. This Decree takes effect on March 25, 2018.

2. The policies prescribed in this Decree shall be implemented from January 1, 2018.

3. To annul Clauses 5 and 7, Article 1 of Decree No. 89/2015/ND-CP of October 7, 2015, amending and supplementing a number of articles of the Government’s Decree No. 67/2014/ND-CP of July 7, 2014, on a number of fisheries development policies.

4. The Prime Minister’s Decision No. 47/2016/QD-TTg of October 31, 2016, on pilot implementation of one-off post-investment support policy under Decree No. 89/2015/ND-CP of October 7, 2015, amending and supplementing a number of articles of the Government’s Decree No. 67/2014/ND-CP of July 7, 2014, on a number of fisheries development policies, ceases to be effective on the effective date of this Decree.

Article 3.Implementation responsibility

Ministers, heads of ministerial-level agencies, heads of government-attached agencies, provincial-level People’s Committee chairpersons, and presidents of fisheries societies and associations shall, within the ambit of their functions and tasks, guide and implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN XUAN PHUC