Regulation on the Administration of Grain Circulation (2016 Revision)

Regulation on the Administration of Grain Circulation (2016Revision) Regulation on the Administration of Grain Circulation (Issued by the Order No. 407 of the State Council of the People's Republic of China on May 26, 2004, amended for the first time in accordance with the Decision of the State Council on Repealing and Amending Some Administrative Regulations on July 18, 2013, and amended for the second time in accordance with the Decision of the State Council on Amending Certain Administrative Regulations on February 6, 2016) Chapter I General Provisions Article 1 With a view to protecting the initiatives of grain producers, promoting grain production, safeguard the legitimate rights and interests of the business operators and consumers, ensure the food security of the state and maintain the order of grain circulation, the present Regulation is formulated in accordance with the relevant laws. Article 2 The present Regulation shall apply to the purchase, sale, storage, transportation, processing, import and export of grain and other related business operations (hereinafter referred to the grain business). The term “grain” as mentioned in the preceding Paragraph refers to wheat, paddy, corn, miscellaneous grains and food grains. Article 3 The state encourages economic bodies of various forms of ownership to engage in the grain business and promotes fair competition. All lawful grain business activities are protected by the law of the state. It is strictly prohibited from hampering the free circulation of grain. The state-owned grain trading firms shall transform their business mechanism, improve their market competitiveness, and play the leading role as the main distribution channel of grain and take the lead in following the state's grain policies. Article 4 The grain prices shall mainly be determined by market supply and demand. The state shall intensify its macro control over the grain circulation market. Article 5 The principle of free will, fairness, honesty and good faith shall be observed in grain business. The legitimate rights and interests of the grain producers and consumers shall not be impaired, nor may the interests of the state and public interests. Article 6 The development and reform department and the national grain administrative department of the State Council shall be responsible for the nationwide equilibrium of aggregate supply and demand of grain, macro-control, structural adjustments of important species of grain and medium and long-term plans on grain circulation. The national grain administrative department shall be responsible for the administrative management and guidance of grain circulation, shall supervise the implementation of the laws, regulations, policies and various rules and bylaws regarding the circulation of grain. The departments of the administration for industry and commerce, product quality supervision, hygiene and price of the State Council shall be responsible for the work of grain circulation within their respective functions. Under the macro-control of the state, the people's government of a province, autonomous region, and municipality directly under the Central Government shall be responsible for the equilibrium of the overall volume of regional grain and the management of regional reserve grain. The grain administrative department of the people's government on the county level or above shall be responsible for the administrative management and guidance of the local grain circulation. The departments of the administration for industry and commerce, product quality supervision, hygiene and price of the local people's government on the county level or above shall be responsible for the work of grain circulation within their respective functions. Chapter II Grain Business Article 7 The grain business operators refer to the legal persons, other economic organizations and individual industrial and commercial households engaged in purchases, sales, storage, transportation, processing, import and export of grain and other related business operations. Article 8 A business operator engaged in grain purchases shall meet the following conditions: (1) With financing capacity; (2) Having necessary grain storage facilities or having rented such facilities; (3) Having corresponding grain inspection and storage abilities. The specific condition as mentioned in the preceding Paragraph shall be formulated and announced by the people's government of the province, autonomous region, or municipality directly under the Central Government. Article 9 A business registered under the Regulation of the People's Republic of China on the Administration of Company Registration and other provisions may engage in grain procurement only after it is qualified to do so. When applying for engaging in grain purchases, the applicant shall file an written application with the grain administrative department whose level is the same as the administrative department for industry and commerce, in which it shall go through the registration formalities, and it shall offer certification materials of funds, storage facilities, quality inspection and storage ability, etc. The grain administrative department shall complete the examination within 15 days from the day when it accepts the said application materials. It shall grant the applicant an approval if it meets the conditions as described in Article 8 of the present Regulation and shall make an announcement. Article 10 A grain business operator engaged in grain purchases (hereinafter referred to as grain purchaser) shall inform the grain sellers of the species, quality standards and purchase prices of grain, or publicize the said information in the purchase place. Article 11 When purchasing grain, a grain purchaser shall implement national grain quality standards, shall negotiate the price in light of the quality, shall not impair the interests of the farmers and other grain producers. It shall timely pay the sellers for the grain, shall not delay any payment, nor may it accept the entrustment of any organization or individual to withhold any tax, fee or other items. Article 12 A grain purchaser shall regularly report the grain purchase quantity and other related information to the grain administrative department of the people's government on the county level where the purchase place is located. When a grain purchaser purchases grain by going beyond the province where it is registered, it shall regularly report the grain purchase quantity and other related information to the grain administrative departments of the local people's government on the county level where the purchase place is located and where the grain purchaser is registered. Article 13 A grain business operator engaged in engaged in purchases, sales, storage, transportation, processing, import and export of grain or other related business operations shall go through the registration formalities in the administrative department for industry and commerce. Article 14 The grain storage facilities used by a grain business operator shall be in line with the relevant standards and technical criteria on grain storage. The grain shall not be stored together with any harmful materials that possibly pollute it. In the storage of grain, it is prohibited from using any chemicals banned by the state or overusing any chemicals. Article 15 In the grain transportation, the national technical criteria on grain transportation shall be strictly followed. No polluted transport tool or packing material may be used in the grain transportation. Article 16 A business operator engaged in edible grain processing shall have the essential processing conditions that can guarantee the quality and hygiene of the grain. It shall not commit any of the following acts: (1) Processing any moldy unprocessed food grain ......