CIRCULAR

GUIDING THE IMPLEMENTATION OF THE PRIME MINISTER’S DECISION No.250/1998/QD-TTg OF DECEMBER 24, 1998 ON THE MANAGEMENT OF RICE EXPORT AND FERTILIZER IMPORT IN 1999

On December 24, 1998 the Prime Minister issued Decision No.250/1998/QD-TTg on the management of rice export and fertilizer import in 1999;
Pursuant to the provisions of the said Decision and the results obtained in the management of rice export and fertilizer import in 1998;
The Ministry of Trade hereby provides the following detailed guidance for the implementation of the said Decision:

I. RICE EXPORT

1. On the rice export tempo in the first quarter of 1999

To ensure the schedule of delivery of about 1 million tonnes of rice in the first quarter of 1999, the major rice exporting enterprises shall be allowed to export just about 30 per cent of their rice export quotas (including the quotas allocated under the Government’s contracts). In case it is necessary to make an adjustment, the Ministry of Trade shall issue concrete notices.

2. On the export of rice to new customers and/or new markets

If enterprises (outside the list of major enterprises), which have business registration certificates for trading in food or farm produce, find new market(s) or new customer(s) and sign contracts with the latter with advantageous commercial terms and prices (provided that such contracts include the following clause: "This contract shall be effected only when it is permitted by the Ministry of Trade of the Socialist Republic of Vietnam) or sign memorandums of understanding, such enterprises shall submit ,written proposals (attached with the said contracts or the memorandums of understanding) to the Ministry of Trade so that the latter may consider, make a sum-up report to the Prime Minister for permission.

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If enterprises of different economic sectors which have business registration certificates for trading in food or farm produce find customer(s) or market(s), they shall be entitled to directly sign contracts for the export of rice produced in northern provinces (such a contract must include the following clause: "This contract shall be effected when the export is permitted by the competent agency") or sign memorandums of understanding. Such enterprises shall submit written proposals (attached with the said contracts or memorandums of understanding) to the Ministry of Trade and the Ministry of Agriculture and Rural Development so that the latter consider, make a sum-up report to the Prime Minister for permitting the enterprises to engage in export.

4. On rice export by foreign-invested enterprises operating in the field of rice production and processing

Foreign-invested companies operating under investment licenses issued by the Ministry of Planning and Investment in the field of rice production and processing, shall be allocated quotas for direct rice export by the Ministry of Trade but can only buy raw material rice via State enterprises which are licensed to engage in food trading in localities as prescribed in Document No.1182/CP-KTTH of October 6 of the Prime Minister.

The Trade Ministry’s decisions on quota allocation shall serve as basis for the clearance of export procedures at border customs offices.

5. Major rice exporting enterprises

The list of major rice exporting enterprises approved by the Government is provided for in the Appendix attached to this Circular.

II. FERTILIZER IMPORT

1. Fetilizer-import quotas

Enterprises shall import fertilizer according to quotas allocated to them according to Appendix 2 of Decision No.250/1998/QD-TTg and shall be allowed to gather their goods at Vietnam’s international ports, based on their own production and business demands.

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- Enterprises allowed to engage in fertilizer import in the form of establishing fertilizer reserve warehouses shall submit reports on their 1998 import situation as well as the 1999 import plan to the Ministry of Trade, the Ministry of Agriculture and Rural Development and the Ministry of Planning and Investment. Basing itself on the inter-ministerial inspection of the 1998 performance by enterprises, the Ministry of Trade shall consider and allocate 1999 quotas for enterprises to continue operation.

- For enterprises newly engaged in the above-said form of operation, they shall have to elaborate specific plans which shall be considered by the Ministry of Trade and the General Department of Customs for sum-up report to be sent to the Prime Minister for decision.

III. IMPLEMENTATION PROVISIONS

The Ministry of Trade requests the ministries, the ministerial-level agencies, the agencies attached to the Government, the People’s Committees of the provinces and centrally-run cities and the executive bodies of mass organizations to notify enterprises under their respective management of the contents of this Circular so that the latter be aware of and implement them and at the same time report the matters arising in the course of implementation to the Ministry of Trade for the prompt and appropriate adjustment.

This Circular takes effect as from January 1^st, 1999 till December 31^st 1999.

FOR THE MINISTER OF TRADE
VICE MINISTER




Nguyen Xuan Quang

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LIST OF 41 ENTERPRISES ENTITLED TO DIRECT RICE EXPORT IN 1999

1. An Giang Food Company (ANGIFOOD)

2. An Giang Food Import- Export Company (AFIEX)

3. An Giang Import- Export Company

4. An Giang Mountainous Tourism and Development Company

5. Can Tho Food Company (MECOFOOD)

6. Song Hau Agricultural Farm of Can Tho province

7. Co Do (Red Flag) Agricultural Farm of Can Tho province

8. Mekong Limited Liability Company

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10. Dong Thap General Import- Export Company(DOCIMEXCO)

11. Long An Food Company (FOOD LONGAN)

12. Long An General Import- Export Company

13. Vinh Long Food and Foodstuff Company

14. Kien Giang Import- Export Company

15. Kien Giang Trade Company

16. Tien Giang Food Company (TlGlFOOD)

17. Tien Giang General Trade Company(TIGITRACO)

18. Tra Vinh Food and Import- Export Company (TRAVIFOOD)

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20. Minh Hai Food Company of Bac Lieu province(MIHAFOOD)

21. Ca Mau Agricultural Product Import- Export Company

22. Thai Binh Import- Export Company(UNIMEX THAIBINH)

23. Ho Chi Minh City Food Company (FOODCOSA)

24. Sai Gon General Trade Corporation

25. Sai Gon Agriculture Corporation

26. Ben Tre Import- Export Company (BETRIMEX)

27. Vietnam Southern Food Corporation

28. Vietnam Northern Food Corporation

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30. The Central Agricultural Supplies Corporation (VIGECAM)

31. Vinh Long Import- Export Company

32. Dong Thap Import- Export Company

33. Soc Trang Agricultural Product Import- Export Company

34. Long An Production, Import and Export Limited Liability Company (LADFECO)

35. Thot Not General Trade and Food Processing Joint- Stock Company of Can Tho province.

36. Vinh Phat Agricultural Product Limited Liability Company of Ho Chi Minh City.

Note: 01 enterprise from Tien Giang Province shall be added later; 04 joint ventures shall be determined under a specific decision of the Ministry of Trade.

(This translation is for reference only)