DECISION

ON COMMODITIES POLICY AND THE CONDUCT OF IMPORT-EXPORT WORK IN 1995

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government on the 30th of September 1992;
Pursuant to Decree No. 33-CP on the 19th of April 1994 of the Government on State management over import-export activities;
Pursuant to the Resolution adopted by the Government at its session on the 9th and 10th of November 1994;
At the proposals of the Chairman of the Sate Planning Committee and the Minister of Trade, and the suggestions of the concerned ministries and branches at the meeting on the 7th of December 1994,

DECIDES:

Article 1.- To include the below-listed goods in the list of goods under the orientational import-export plan for 1995:

a) Export goods: Rice.

b) Import goods: Oil and gas, fertilizers, steel for common use, Portland cement, sugar, motor vehicles of less than 12 seats, and motor bicycles.

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- Rice: About 2,000,000 tons; with immediate quotas totaling about 1,600,000 tons

- Oil and gas: About 4,800,000 tons; with immediate quotas totaling about 4,500,000 tons.

- Fertilizers: About 1,300,000 tons; with all quotas binge assigned right at the start of the plan year.

- Steel of common use: About 600,000 tons; with all quotas being assigned right at the start of the plan year.

- Portland cement: About 2,200,000 tons, with clinker accounting about 1,000,000 tons. Immediate quotas shall be about 2,000,000 tons.

- Sugar: About 70,000 tons, including crude sugar; with all quotas being assigned right at the start of the plan year.

- Motor vehicles of less than 12 seats: 6,500 units, including between 1,500 and 2,000 units assembled domestically; with all quotas binge assigned right at the start of the plane year.

- Motor bicycles: 350,000 units, including components of 180,000 non-assembled units and 170,000 assembled units. All quotas shall be assigned right at the start of the plan year.

The assignment of the quotas of the above-said goods shall be made only once by the Ministry of Trade and shall be announced right at the start of the plan year so as to help enterprises make their own preparations in capital and market to meet the demand of the domestic market.

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a) With regard to rice and fertilizers: The Ministry of Agriculture and Food Industry is to work with the State Planning Committee to determine the amounts to be imported and exported in the year; to take charge of regulating the circulation of rice so as to ensure the rice supply throughout the country; to take charge of regulating the supply of fertilizers to meet the needs of each region and cropping season, and ensure the supply of fertilizers for the whole country. The ministry of Trade is to conduct import and export in line with the overall plan and the specific distribution plan to be worked out by the Ministry of Agriculture and Food Industry. All specific issues shall be tackled in line with Document No 6842 issued on the 6th of December 1994, by the Government.

b) With regard to cement: The Ministry of Construction shall determine the need and the about of cement to be imported, which shall be the basis for the Ministry of Trade to conduct the importation of cement. Apart from the importation of cement and clinker by the Union of Cement Enterprises, the Ministry of Trade shall, after discussion with the Ministry of Construction, assign the importation of this commodity to a number of businesses in areas and cities where large needs exist so as to further balance regional demands and supplies.

c) With regard to steel: The Ministry of Heavy Industry shall discuss with the Ministry of Construction and the Ministry of Trade about the categories of steels of common use to determine which categories are not yet produced domestically, or are produced below demand or below required quality, and have to be balanced with imports by the Ministry of Trade. As regards special-purpose steels, the Ministry of Trade shall respond to requests from the Ministries and branches in charge of the demand of production. The allocation of the quotas for importation of conventional steels of common use shall be decided specifically by the Ministry of Trade after consulting with the Ministry of Heavy Industry.

d) With regard to oil and gas, sugar, motor vehicles and motor bicycles, the Ministry of Trade is to assure that the needs of production and social life be met, as well as to conduct the importation of these goods.

With regard to sugar specifically, the Ministry of Trade shall discuss with the Ministry of Agriculture and Food Industry to determine the amount of crude sugar to be imported for domestic refineries and assign the import quotas to the sugar mills; the amount of crude sugar (produced at home or acquired through import) needed for reserve for production and circulation shall be decided by the Minister of Agriculture and Food Industry. With regard to refined sugar, the Ministry of Trade shall assign the import to a number of businesses in large cities as well as those under it so as to ensure the supply for each region as well as the whole country.

Article 4.- The Ministry of Trade is to take charge of the importation of goods listed as materials and components for consumer goods, maintaining them at lower than 20% of the total annual import value; and, when necessary, to recommend to the Ministry of Finance to adjust the tariffs on the imports.

Article 5.- With regard to importation of used goods:

a) As regards the importation of used technologies, production chains, facilities and equipment which are to be used for manufacturing production materials and consumer goods; means for goods transportation, vehicles for construction projects and road and bridge building, etc., their importation shall be decided by and come under the responsibility of the Ministries and branches which are in charge of their utilization and by the investors, if the latter are convinced of their efficiency.

The Ministry of Science, Technology and Environment shall discuss with the Ministries and branches in charge of these imports to set the base technical standards to be used as guidance for the importation.

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c) The General Department of Customs shall direct customs offices at ports of entry to tax imported used goods at 70% of the tariffs on brand-new goods of the same category.

d) Other used goods shall not be imported in any form.

Article 6.- With regard to goods of under preferential policies toward ethnic minority groups: In order to implement the policy of replacing assistance in kind with assistance in cash, the State Planning Committee and the Committee for Ethnic Minorities and Mountainous Areas shall work with the Ministry of Finance, the Ministry of Labor, War Invalids and Social Affairs and the Ministry of Health, to determine the beneficiaries of the subsidies and the standards, categories and quantities of goods for each area. On that basis, they shall arrange with each of the localities the forms of deduction from the 1995 Support Fund for mountain-our areas, and then assign the Presidents of provincial People's Committees to manage and distribute the assistance to the beneficiaries, and shall be responsible to the Prime Minister.

Article 7.- The Minister of Trade is to discuss with the concerned Ministries and branches to provide detailed guidance for the implementation of this Decision.

Article 8.- This Decision shall take effect as from the 1st of January 1995 to the 31st of March 1996. In the course of its conduct, the Ministry of Trade shall monitor and gather comments and suggestions from other Ministries and branches and localities, and, if necessary, shall report to the Prime Minister for modifications of the commodities policy.

Article 9.- The Ministers, the Heads of ministerial-level agencies, the Heads of agencies attached to the Government, and the Presidents of the People's Committees of the provinces and cities directly under the Central Government, are responsible for the implementation of this Decision.

FOR THE PRIME MINISTER
DEPUTY PRIME MINISTER




Phan Van Khai

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