Measures of Tianjin Municipality on Administration of Grain Circulation

Decree of Tianjin Municipal People’s Government

No. 109

Measures of Tianjin Municipality on Administration of Grain Circulation

The Measures of Tianjin Municipality on Administration of Grain Circulationwas adopted at the 83rd Executive Meeting of the Municipal People’s Government on 25 December 2006 and is hereby promulgated. These Measures shall come into effect as from 1 March 2007.

Dai Xianglong, Mayor

6 January 2007

Measures of Tianjin Municipality on Administration of Grain Circulation

Chapter I General Provisions

Article 1 These Measures are formulated in accordance with the Administrative Regulations on Grain Circulation (Decree of the State Council, No.407) and the Administrative Regulations on Central Grain Reserves (Decree of the State Council, No.388) and in the light of the actual situation of Tainjin for the purpose of regulating the grain circulation market, strengthening administration of grain reserves, and guaranteeing grain security of this Municipality.

Article 2 These Measures shall be applicable to those who are engaged in business activities of grain purchase, marketing, storage, transportation, processing, import and export (hereinafter generally referred to as “grain business activities”) and to those who are engaged and involved in administration of local grain reserves at various levels within the administrative area of this Municipality.

“Grain” mentioned in the preceding paragraph refers to wheat, paddy, maize, coarse cereals and their processed grains; and “local grain reserves at various levels” refers to grain and edible oil reserved by the Municipal, district and county people’s governments and used to regulate the grain totality of supply and demand of the whole city, stabilize the grain market, and respond to major natural disasters and other emergencies.

Where it is otherwise stipulated in laws and regulations with regard to administration of import and export of grain, such laws and regulations shall prevail.

Article 3 The Municipal department of development and reform and the Municipal grain administrative department shall be responsible for aggregate balance and macro-regulation of grain of the whole city, and for structural adjustment of major grain varieties, and drawing up the medium- and long-term plans of grain circulation; these departments shall, in collaboration with the finance department, come up with opinions on macro-regulation regarding the summation of the size of local grain reserves, the overall layout, and employment of the reserves, and give guidance and coordination to administration of grain reserves.

The Municipal grain administrative department is the competent department of grain circulation and local grain reserves of this Municipality, responsible for administrative management and trade guidance of grain circulation, and for administrative management and storage security of local grain reserves, and shall supervise implementation of relevant laws, rules, policies and various regulations.

Related departments of quality and technical supervision, industry and commerce, public health, pricing, foodstuff and medicine supervision shall, within the scope of their respective responsibilities, be responsible for related work involving grain circulation and local grain reserves.

District and county grain administrative departments shall be in charge of grain production, circulation, security and administration of grain reserves of the same level within the areas under their jurisdiction.

Chapter II Administration of Emergencies

Article 4 The Municipal People’s Government shall take necessary economic and administrative measures to strengthen regulation and control of the grain market and keep the grain totality of supply and demand of the whole city basically balanced and the price basically stable.

Article 5 A system of grain risk fund shall be instituted and improved. The finance department shall legally ensure that the grain risk fund is earmarked for its specified purpose only and be responsible for oversight and management of how the fund is used.

Article 6 When major changes of the relation between grain supply and demand take place, and grain prices rise or tend to rise remarkably, the Municipal People’s Government may take measures of price intervention according to the law.

Article 7 The Municipal grain administrative department in collaboration with relevant departments shall conduct monitoring and early warning analysis over the situation of supply and demand of the grain market, establish a sampling check system of grain supply and demand, and release information on grain production, consumption, price and quality on a regular basis.

All district and county grain administrative departments shall respectively constitute an investigation mechanism of statistics and balance of grain supply and demand, and do a good job of collecting the abovementioned information.

Article 8 Construction of the response system to grain emergencies shall be improved. All district and county people’s governments shall work out their own respective grain emergency response plans in accordance with the Grain Emergency Response Plan of Tianjin Municipality (Jinzhengfa [2006] No.5) and in light of the conditions of their own areas.

All relevant departments shall, within the scope of their respective responsibilities, do well the related work in relation to grain in conformity with the grain emergency response plan of the same level.

Article 9 The grain emergency response plan shall be started at the time of grain emergencies brought about by major natural disasters, major epidemics and other emergencies.

The initiation of the Municipal-level grain emergency response plan shall be proposed by the Municipal departments of development and reform, commerce, grain and so on according to the Grain Emergency Response Plan of Tianjin Municipality, submitted to the Municipal People’s Government for decision and reported to the State Council according to the law.

The initiation of the district or county grain emergency response plan shall be decided by the people’s government of the same level in light of the prescribed procedure, and reported to the Municipal People’s Government.

Termination of the grain emergency response plans at all levels shall follow the provisions of Paragraphs 2 and 3 of this Article mutatis mutandis.

Article 10 After the grain emergency response plans are initiated, administrative departments at all levels shall strengthen coordination in the light of their respective duties and division of responsibility. Operators of grain shall shoulder the emergency tasks as required by the government and obey overall arrangement and scheduling to ensure the needs of emergency work.

Article 11 The trade association of grain and related intermediary organizations shall strengthen self-discipline of their trade and play the role of oversight and coordination in maintaining the order of the grain market.

Chapter III Operation and Management

Article 12 Individual businessmen who purchase grain all the years for the purpose of profits or whose annual volume of purchase reaches 50 tons must obtain the qualifications of grain purchase.

Individual businessmen whose annual volume of purchase is below 50 tons do not need to apply for the qualifications of grain purchase in their activities of grain purchase.

Article 13 Operators who apply for business of grain purchase shall meet the following requirements:

(1) With the business fund verification report and documentation of loan qualification accreditation of the current year, the minimum registered capital being 0.3 million yuan, and individual businessmen must have the capability of raising a business fund of 30,000 yuan;

(2) With a fixed business venue corresponding with the purchase business, the facilities of the warehouse meeting the requirement of grain storage, and the area of the warehouse owned or hired being not less than 500 square metres;

(3) With measuring devices to ensure accurate amount of purchased grain and testing means of grain quality, or the entrusted statutory testing agency; and

(4) With more than two professionals well versed in know-how of grain storage.

Article 14 Those who apply for business in grain purchase shall lodge a written application to the grain administrative department according to the law. Those who have obtained the qualification of grain purchase shall register with the administrative department for industry and commerce pursuant to the law and clearly indicate grain purchase in the scope of business.

Those who do not need to obtain the qualification of grain purchase in accordance with the provision of Paragraph 2 of Article 12 shall directly register with the administrative department for industry and commerce and clearly indicate the quantity of purchase in the scope of business.

Article 15 Grain operators who are engaged in grain purchase (hereinafter referred to as “the grain purchaser”) shall make known relevant information according to the law, strictly follow relevant standards of the State, and timely pay the money for the grain to the grain seller.

Article 16 The grain purchaser shall regularly report relevant information on grain purchase to the district or county grain administrative department where the grain is purchased.

The grain purchaser of this Municipality who purchases grain from other places or the grain purchaser from other places who purchases grain from this Municipality shall report for the record according to the law to the local district or county grain administrative department and the administrative department for industry and commerce where the grain is purchased.

Article 17 Grain operators who are engaged in business activities of grain marketing, storage, transportation, processing, import and export shall register with the administrative department for industry and commerce according to the law.

The abovementioned operators shall do business according to the law, strictly implement relevant standards of grain quality and hygiene stipulated by the State and the Municipality, and perform related obligations.

Article 18 Departments of grain, industry and commerce, and others shall establish information feedback systems on grain business enterprises and information exchange systems on law enforcement, and feed back and exchange information on a regular basis.

Article 19 A quality inspection system shall be put into practice when grain enters the warehouse or gets out of the warehouse for marketing. Enterprises of grain purchase and storage shall conduct quality inspection over grain when it enters the warehouse or gets out of the warehouse for marketing according to the standards of the State on grain quality. The specific contents of inspection shall follow relevant provisions of the State and the Municipality.

Article 20 Grain that is ageing and deteriorated and does not meet the standard of food hygiene is prohibited to enter the provisions market. The qualifications for purchasing ageing grain shall be determined by the Municipal grain administrative department together with the Municipal administrative department for industry and commerce.

The marketing, treatment, and oversight and management of ageing grain shall follow relevant provisions of the State and the Municipality.

Article 21 Operators engaged in grain purchase, processing and marketing must keep necessary inventory.

Where necessary, the grain inventory of operators mentioned above shall meet the minimum and maximum standards as prescribed by the Municipal People’s Government.

Article 22 For the grain purchaser who meets the requirement of loaning, the Agricultural Development Bank of China Tianjin Branch shall timely provide loans for purchase according to relevant provisions of the State.

Article 23 Grain operators who are engaged in business activities of grain purchase, marketing, storage, and processing, and enterprises of fodder, aquaculture and grain for industry shall establish desk accounts of grain business according to the law and regularly report their basic data of production and business and other related information to the local district or county grain administrative department.

Grain operators shall keep their desk accounts of grain business for not shorter than three years.

Chapter IV Administration of Grain Reserves

Article 24 Grain reserve systems at the Municipal level and the district and county level shall be put into practice in this Municipality, which shall be administered by the Municipal People’s Government and the district and county people’s governments respectively.

The size of grain reserves and varieties shall be proposed by the Municipal grain administrative department together with the Municipal departments of development and reform, commerce, finance and so on and submitted to the Municipal People’s Government for determination.

Article 25 No unit and individual may put grain reserves to use without authorization.

The Municipal, district and county people’s governments shall set requirements for employment of grain reserves of the same level. District and county people’s governments shall incorporate the requirements for employment of grain reserves of the same level into the grain emergency response plan of the same level.

Article 26 Rational distribution, scale deposit, structural optimization and precaution against accidents should be achieved in the work of storing grain reserves.

The district-level grain reserves of the six districts within the city proper shall be placed under the management of the Municipal-level grain reserves, which shall be stored by proxy by the Municipal Grain Reserves Co., Ltd.; the grain reserves of other districts and counties shall be stored by proxy by the district or county grain purchase and sales co., ltd.

The Municipal Grain Reserves Co., Ltd. and the district or county grain purchase and sales co., ltd. shall select the best undertaking unit for storing grain reserves (hereinafter referred to as “the undertaking unit”) and report it to the grain administrative department of the same level for examination and confirmation, and a contract of storing grain by proxy shall be signed.

Article 27 The undertaking unit shall meet the following requirements:

(1) The capacity and conditions of its warehouses can satisfy the requirements for storing grain and ensure quality security of grain;

(2) With storing equipment commensurate with the functions of storing grain, type of warehouses, entry and exit methods of grain, varieties of grain, and storage periods;

(3) With inspecting and testing instruments and venues for classifying grain reserves, with capability to inspect and test the temperature, moisture and insect density within the warehouse during the period of storage of grain reserves;

(4) With managers and technicians in the fields of storage, testing, and prevention and control who have received professional training and obtained qualification certificates issued by relevant departments; and

(5) With good credit in terms of operation and management and without record of serious violations in business.

Article 28 The undertaking unit shall observe the following provisions:

(1) Implementing various regulations of this Municipality on management of grain reserves;

(2) Grain shall be stored and managed by classifying its nature, variety, fixed number of years, and goods allocation;

(3) The warehouse for storing grain reserves may not be changed without consent of the grain administrative department that has the administrative power;

(4) It should be ensured that the grain reserves in the warehouse of the undertaking unit tally with those in the account books, the storage is safe and the management is up to standard; and

(5) It should be guaranteed that grain reserves are taken in and out of the warehouse in accordance with the requirement indicated in the notice from the grain administrative department for the grain to get in and out of the warehouse.

Article 29 District and county people’s governments shall supervise the undertaking unit within their administrative areas to ensure that the unit makes great efforts for security and management of grain reserves.

District and county grain administrative departments shall be responsible for oversight and management of the quality and security of the Municipal-level grain reserves and district- and county-level grain reserves stored within their administrative areas.

Article 30 The finance department shall appropriate the grain risk fund as stipulated and supervise its use in accordance with the size of grain reserves and the shared proportion of the grain risk fund.

The Agricultural Development Bank of China Tianjin Branch and its sub-branches shall provide loans needed for grain reserves and conduct credit oversight and management.

Article 31 Grain reserves shall rotate periodically.

The grain administrative department shall formulate a rotating plan for grain reserves and do the rotating in accordance with the plan. The quantity of rotation each year is generally 20% up to 30% of the aggregate grain reserves of the same level.

Article 32 The grain administrative department shall, in collaboration with the finance department and the Agricultural Development Bank, determine the annual rotating plan for grain reserves and the necessary expenses in accordance with the quality of the grain reserves and the number of years of storage, and report to the people’s government of the same level for the record.

The Municipal Grain Reserves Co., Ltd. and the district or county grain purchase and sales co., ltd. may come up with specific rotating schemes and be responsible for the implementation of the rotation.

Article 33 Open forms of market competition or other forms consented by the people’s government of the same level shall be adopted for purchase or rotation of grain reserves.

Purchased grain should reach the quality grade as prescribed in the purchase and rotation plan, and meet the quality standard as stipulated by the State.

Purchased and rotated grain reserves shall be subject to inspection of the grain inspection department designated by the Municipal grain administrative department.

Chapter V Supervision and Legal Responsibilities

Article 34 The grain administrative department has the right to adopt the following methods in exercising supervision and inspection over grain business activities according to the law:

(1) Entering the business venue of the grain operator;

(2) Consulting relevant data and credence of the grain operator;

(3) Finding out related facts from relevant units and personnel; and

(4) Other means not prohibited by the law.

Article 35 Related departments of quality supervision, industry and commerce, public health, pricing, foodstuff and medicine supervision shall, within the scope of their respective responsibilities, exercise supervision and inspection over grain processing, circulation and storage according to the law and, in collaboration with the grain administrative department, make great efforts for related work involving grain circulation and storage of grain reserves.

Article 36 All units and individuals that find out any act of violation against these Measures have the right to report to the relevant department.

The department concerned shall keep the offence-reporter secret and timely handle the case according to the law.

Article 37 Where laws and regulations and relevant provisions of the State have made clear stipulations regarding punishments on acts of violation against these Measures, such stipulations shall be followed.

Chapter VI Supplementary Provisions

Article 38 With the exception of Articles 13 and 14, these Measures shall apply to business activities of purchase, marketing, storage, transportation, processing, import and export of soybean, oil materials and edible plant oil.

Article 39 These Measures shall take effect as from 1 March 2007. The Administrative Measures of Tianjin Municipality on Grain Purchase and Sale (Decree of the Municipal People’s Government, No.78, 2004) amended and promulgated by the Municipal People’s Government on 30 June 2004 shall be repealed simultaneously.