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TABLE OF CONTENTS CHAPTER I GENERAL PROVISIONS CHAPTER II PLANNING FOR CENTRAL GRAIN RESERVES CHAPTER III STORAGE OF CENTRAL GRAIN RESERVES CHAPTER IV USING OF CENTRAL GRAIN RESERVES CHAPTER V SUPERVISION AND INSPECTION CHAPTER VI LEGAL LIABILITY CHAPTER VII SUPPLEMENTARY PROVISIONS CHAPTER I GENERAL PROVISIONS Article 1. These Regulations are enacted with a view to strengthening the administration of central grain reserves, securing the true quantity, good quality and safe storage of central grain reserves, protecting the rights and interests of peasants, maintaining market stability, and giving into full play the role of central grain reserves in the national macro-control mechanism. Article 2. The central grain reserves mentioned in the present Regulations refer to the grain and edible oil that are reserved by the Central Government for purposes such as regulating the aggregate supply and demand of grain nationwide, stabilizing the grain market, and preparing against serious natural disasters or other emergencies. Article 3. The organizations and individuals engaging or participating in the operation, management or supervision of central grain reserves shall observe the present Regulations. Article 4. The state shall apply a vertical administration system to central grain reserves. The people's governments at all levels and the relevant departments shall afford support and assistance to the vertical administration of central grain reserves. Article 5. Strict rules, tightened administration and clearly defined responsibilities shall be applied to the administration of central grain reserves, so as to ensure the true quantity, good quality, safe storage, effective supply, sound management, smooth deployment & use, and lowered cost & expenses of such reserves. No organization or individual may use central grain reserves without the approval of the State Council. Article 6. The development and reform department under the State Council and the grain administration department of the state shall, in conjunction with the finance department under the State Council, be in charge of formulating the macro-control opinions on the total scale and overall distribution & use of central grain reserves, and guiding and coordinating the management of such reserves. The grain administration department of the state shall take charge of the administration of central grain reserves, and the supervision and inspections over the quantity, quality and storage safety of such reserves. Article 7. The finance department under the State Council shall be in charge of arranging financial subsidies for loan interest and management cost of central gain reserves, ensuring timely and sufficient funding of such subsidies, and conducting supervision and inspections over the relevant financial execution for central grain reserves. Article 8. The China Grain Reserve Management Corporation shall take charge of the specific operation and management of central grain reserves, and be responsible for the quantity, quality and storage safety of such reserves. The China Grain Reserve Management Corporation shall establish and improve various management systems in accordance with the relevant regulations, administrative rules, national standards and technical norms, and submit them to the grain administration department of the state for the record. Article 9. The China Agriculture Development Bank shall, in accordance with the relevant provisions of the state, arrange for timely and sufficient funding of loans needed for central grain reserves, and exercise credit supervision over the loans granted for such reserves. Article 10. No organization or individual may fraudulently obtain, misappropriate, retain or unwarrantedly divert the loans for central grain reserves or the financial subsidies for loan interest, management cost, etc. of such reserves. Article 11. No organization or individual may destroy the warehousing facilities for central grain reserves, or steal, encroach upon or do damage to central grain reserves. The people's governments in the localities where central grain reserves are stored shall direct the relevant departments in good time to stop, investigate and punish illicit acts such as destroying the warehousing facilities for central grain reserves, or stealing, encroaching upon or doing damage to central grain reserves. Article 12. Every organization or individual shall be entitled to file accusations to the relevant departments against any illegal acts during the operation and management of central grain reserves. Upon receiving the accusations, the relevant departments e.g. the grain administration department of the state shall conduct investigation and give punishment in case of need, or hand over the cases to other competent departments within whose scope of functions the handling of such cases falls. CHAPTER II PLANNING FOR CENTRAL GRAIN RESERVES Article 13. The development and reform department under the State Council and the grain administration department of the state, jointly with the finance department under the State Council, should, in light of the macro-control needs and financial capacity of the state, propose a program on the storage scale, types and overall distribution of central grain reserves, which is subject to the approval of the State Council. Article 14. The grain administration department of the state should, in light of the program on the storage scale, types and overall distribution of central grain reserves approved by the State Council, propose a purchase & sales plan for central grain reserves. After being examined and approved by the development and reform department and the finance department under the State Council, the plan should be issued to the China Grain Reserve Management Corporation jointly by the development and reform department under the State Council, the grain administration department of the state, the finance department under the State Council and the China Agriculture Development Bank. Article 15. The China Grain Reserve Management Corporation shall, in accordance with the purchase & sales plan for central grain reserves, arrange for and implement the purchase and sales of central grain reserves. Article 16. A balanced rotation system shall be applied to central grain reserves, with the annual rotated amount being controlled at 20%~30% of the total stored amount of such reserves. The China Grain Reserve Management Corporation shall, in light of the quality conditions and the years for storage, propose the amount, types and by-region program for annual rotation of central grain reserves, and submit it for approval to the grain administration department of the state, the finance department under the State Council and the China Agriculture Development Bank. The China Grain Reserve Management Corporation shall, within the framework of the annual rotation plan, arrange for and implement the specific rotation of central grain reserves, in light of the supply and demand conditions on the grain market. Article 17. The China Grain Reserve Management Corporation shall submit in good time a report for the record on the implementation of the purchase & sales and annual rotation plan for central grain reserves to the development and reform department under the State Council, the grain administration department of the state and the finance department under the State Council, and send a copy thereof to the China Agriculture Development Bank. CHAPTER III STORAGE OF CENTRAL GRAIN RESERVES Article 18. The enterprises directly under the control of the China Grain Reserve Management Corporation shall specialize in the storage of central grain reserves. The storage of central grain reserve may be entrusted to other competent enterprises in accordance with the provisions of the present Regulations. Article 19. An enterprise entrusted with the storage of central grain reserve shall meet the following conditions: (1) having a warehousing capacity reaching the scale prescribed by the state and warehouse conditions up to the national standard and technical norms; (2) having warehousing equipment that can fit in with the grain storage functions, warehouse models, entry & release modes, types and storage cycles of grain, etc; (3) having instruments and site(s) which are up to the national standard for measuring quality grade of central grain reserve, and the conditions for measuring temperature, moisture and pest density in warehouses during the storage of central grain reserve; (4) Having the management staff specialized in the storage, inspection, prevention & control, etc. of grain, who have received professional trainings and obtained the certificates issued by the competent administrative department(s); and (5) Having sound management and good credit standing, and showing no record of serious irregularity during its operation. The selection of enterprises to be entrusted with the storage of central grain reserves shall facilitate the rational distribution, unified administration & supervision and reduced cost & expenses of central grain reserves. Article 20. Enterprises that meet the conditions for entrusted storage prescribed in Article 19 of the present Regulations may, upon the examination and approval of the grain administration department of the state, obtain the qualification for entrusted storage of central grain reserves. The grain administration department of the state, jointly with the finance department under the State Council shall, after consulting opinions of the China Agriculture Development Bank and the China Grain Reserve Management Corporation, formulate the qualification recognition measures for enterprises to be entrusted with the storage of central grain reserves. Article 21. The China Grain Reserve Management Corporation shall be in charge of selecting the most competent enterprises to undertake the storage of central grain reserves from those that have obtained the qualification for such storage, in accordance with the overall distribution program, and make a report thereon to submit for the record to the grain administration department of the state, the finance department under the State Council and the China Agriculture Development Bank and send a copy thereof to the local grain administration department. The China Grain Reserve Management Corporation shall sign contracts with the enterprises entrusted with the storage of central grain reserves, which will specify matters such as the rights, obligations and liabilities for breach of contract, of both parties. The enterprises entrusted with the storage of central grain reserves may not operate the rotation business of central grain reserves and other businesses together. Article 22. The enterprises directly under the control of China Grain Reserve Management Corporation and the enterprises entrusted with the storage of central grain reserve (hereinafter jointly referred to the storage enterprises) shall, when storing central grain reserves, strictly implement the regulations, administrative rules, national standards and technical norms of the state concerning the administration of central grain reserves, and the various management rules formulated by the China Grain Reserve Management Corporation in accordance with the relevant regulations, administrative rules, national standards and technical norms. Article 23. The storage enterprises shall ensure that central grain reserves received by the warehouse(s) reach the quality grade set forth in the purchase and rotation plan and conform to the quality standard prescribed by the state. Article 24. The storage enterprises shall place central grain reserves under the roof of special warehouses, the care of special staff and the record in special account, and ensure the consistency of one account with another, and the consistency of accounts with facts, and the good quality and safe storage of such reserves. Article 25. The storage enterprises may not make false or deceptive reports on the quantity of central grain reserves, practice adulteration or fraud, arbitrarily replace the type or change the storage site, or cause aging or deterioration to central grain reserves due to delayed rotation or flawed management. Article 26. The storage enterprises may not arbitrage by making a purchase at a low price while entering a high price into the account, or making a sale at a high price while entering a low price into the account, or fraudulently obtain loans or financial subsidies for loan interest, management cost, etc. concerning central grain reserves. Article 27. The storage enterprises shall establish and improve safety management rules such as fire prevention, theft guard and flood control, and equip themselves with necessary safety protection facilities. The local people's governments at all levels shall support the storage enterprises within their respective localities in the safety management of central grain reserves. Article 28. The storage enterprises shall conduct regular inspections on the management conditions for the storage of central grain reserves; if problems are found concerning the quantity, quality or storage safety of such reserves, they shall give treatment in good time; if the treatment is beyond their capabilities, the leading persons of the storage enterprises shall make in good time a report to the China Grain Reserve Management Corporation or the branches thereof. Article 29. The storage enterprises shall complete the rotation of central grain reserves within the time limit set forth in the rotation plan. The rotation of central grain reserves shall help ensure the quantity, quality and storage safety of central grain reserves, maintain the market stability, avoid drastic fluctuation of the market grain price, reduce cost and improve efficiency. The development and reform department under the State Council and the grain administration department of the state, jointly with the finance department under the State Council, shall, after consulting the opinions of the China Agriculture Development Bank and the China Grain Reserve Management Corporation, formulate the specific administrative measures for the rotation of central grain reserves. Article 30. The purchase, sale and rotation of central grain reserves should be conducted openly on the normative grain wholesale market in principle, or operated through other optional means prescribed by the state. Article 31. The storage enterprises are prohibited from using central grain reserves to conduct external guarantees or settlement of debts. In case a storage enterprise is cancelled, dissolved or bankrupt in accordance with the law, the China Grain Reserve Management Corporation shall be in charge of redeploying its central grain reserve. Article 32. Fixed quotas shall be applied to the subsidies for management cost of central grain reserves, which will be allocated to the China Grain Reserve Management Corporation by the finance department under the State Council. The China Grain Reserve Management Corporation shall, in accordance with the relevant provisions of the finance department under the State Council, make timely and sufficient allocations to the storage enterprises, via special subsidy account of the China Agriculture Development Bank. The China Grain Reserve Management Corporation may, within the total subsidy quotas for management cost, make modest adjustment to the subsidy rates for different regions, types or storage enterprises, according to the different storage conditions and real cost levels; however, the subsidy rates for the same region, type or storage conditions should be identical in principle. The loan interest subsidy for central grain reserves shall be granted according to the real situation, the allocation of which shall be made by the finance department under the State Council. Article 33. Loans for central grain reserves shall be linked to the increase / decrease of the grain stock, managed under special accounts and employed for exclusive use. The storage enterprises should open basic accounts with the China Agriculture Development Bank and accept credit supervision of the China Agriculture Development Bank. The China Grain Reserve Management Corporation should create conditions for the gradual adoption of a mechanism characterized by uniform borrowing and repaying of loans for central grain reserve. Article 34. The finance department under the State Council shall be in charge of checking and approving the warehousing cost for central grain reserves. Once such cost is approved, the China Grain Reserve Management Corporation, the branches thereof and the storage enterprises shall conduct the implementation accordingly. No organization or individual may arbitrarily alter the warehousing cost for central grain reserves. Article 35. The state will establish a loss & consumption treatment system for the timely handling of losses and consumption of central grain reserves. The finance department under the State Council and the grain administration department of the state shall, after consulting the opinions of the China Grain Reserve Management Corporation and the China Agriculture Development Bank, jointly formulate the specific measures in this regard. Article 36. The China Grain Reserve Management Corporation shall make regular statistics and analysis on the storage and management conditions of central grain reserves, and submit the statistical and analytical report to the development and reform department under the State Council, the grain administration department of the state, the finance department under the State Council and the China Agriculture Development Bank. CHAPTER IV USING OF CENTRAL GRAIN RESERVES Article 37. The development and reform department under the State Council and the grain administration department of the state shall improve the early warning mechanism for the use of central grain reserves, strengthen the monitoring of the circumstances in which central grain reserves need to be used, and put forward proposals for the use of central grain reserves as appropriate. Article 38. Central grain reserves may be used under the following circumstances: (1) when grain supplies fall short of demand distinctly on the national or regional market, or there is abnormal fluctuation of market price; (2) when serious natural disasters or other emergencies occur, which necessitate the use of central grain reserves; or (3) other circumstances in which the State Council deems it necessary to use central grain reserves. Article 39. The development and reform department under the State Council and the grain administration department of the state, jointly with the finance department of the State Council may, in case of need, propose a scheme for the use of central grain reserves, which is subject to the approval of the State Council. Such scheme should contain the items as follows: types, quantity, quality and price of central grain reserves to be used, arrangement for their use and transport guarantee. Article 40. The development and reform department under the State Council and the grain administration department of the state may, in accordance with the aforesaid scheme approved by the State Council, issue an order on the use of central grain reserves, whose specific implementation will be arranged by the China Grain Reserve Management Corporation. In case of emergency, the State Council may directly decide upon the use of central grain reserves and issue an order thereon. The relevant departments under the State Council and the local people's governments shall afford support and assistance to the implementation on the use of central grain reserves. Article 41. No organization or individual may refuse to implement or arbitrarily alter the order on the use of central grain reserves. CHAPTER V SUPERVISION AND INSPECTION Article 42. The grain administration department of the state and the finance department under the State Council shall, according to their respective duties, conduct supervision and inspection over the implementation of the present Regulations and other relevant laws and regulations by the China Grain Reserve Management Corporation, the branches thereof, and the storage enterprises. They can exercise the following powers in the course of supervision and inspection: (1) entering the storage enterprises to check the quantity, quality and storage safety of central grain reserves; (2) inquiring the relevant organizations and individuals about the purchase, sales & rotation plan and the implementation of the order on the use of central grain reserves; (3) consulting the relevant documents and certificates on the operation and management of central grain reserves; and (4) giving punishment on those committing illegal acts, in accordance with the law. Article 43. In the course of supervision and inspection, if a problem is found with the quantity, quality or storage safety of central grain reserves, the grain administration department of the state and the finance department under the State Council shall instruct the China Grain Reserve Management Corporation, the branches thereof, and the storage enterprises to correct or handle it; once discovering that an enterprise entrusted with the storage of central grain reserves no longer possesses the relevant qualification, the grain administration department of the state should disqualify it for such storage; if a enterprise directly under the control of the China Grain Reserve Management Corporation is found to be in any circumstance unfit for the storage of central grain reserves, the China Grain Reserve Management Corporation shall, upon the instruction of the grain administration department of the state, order such enterprise to conduct rectification within a time limit. Article 44. The supervision & inspection staff of the grain administration department of the state and the finance department under the State Council shall keep the supervision and inspection circumstances in written record, which shall be signed by the supervision & inspection staff and the person-in-charge of the organization being inspected. In case the person-in-charge of the organization being inspected refuses to sign, the supervision & inspection staff shall have the relevant circumstances recorded. Article 45. The audit organ(s) shall exercise audit supervision over the financial revenue and expenditure on central grain reserves; in case problems are found, it shall deal with them in good time. Article 46. The China Grain Reserve Management Corporation, the branches thereof and the storage enterprises should cooperate with the supervision & inspection staff of the grain administration department of the state, the finance department under the State Council and the audit organ(s) in their performance of duties under the law. No organization or individual may reject, obstruct or interfere with the lawful performance of duties by the grain administration department of the state, the finance department under the State Council and the audit organ(s). Article 47. The China Grain Reserve Management Corporation and the branches thereof should strengthen the management and inspection of central grain reserves and correct in good time any problems with the quantity or quality of central grain reserves; in case of serious problems with the storage safety of central grain reserves, they should take prompt and effective measures in response and make a report to the grain administration department of the state, the finance department under the State Council and the China Agriculture Development Bank. Article 48. The China Agriculture Development Bank shall, in accordance with the provisions on the closed-end management of fund, strengthen the credit supervision over the loans for central grain reserves. The China Grain Reserve Management Corporation, the branches thereof, and the storage enterprises shall afford cooperation and provide relevant data for the credit supervision conducted by the China Agriculture Development Bank in accordance with the law. CHAPTER VI LEGAL LIABILITY Article 49. For any staff of the state organs who violate the provisions of the present Regulations to commit any of the following acts, administrative sanctions, ranging from warning to removal from office may be given; if the circumstance is serious, administrations, ranging from demotion in title or rank to dismissal may be given; if a crime is constituted, the criminal liability shall be investigated for. (1) failing to transmit in good time the purchase, sales and annual rotation plan for central grain reserves; (2) granting the storage qualification to those enterprise that fall short of the requirements for the storage of central grain reserves, or failing to disqualify those enterprises that no longer possess the conditions for the storage of central grain reserves; (3) Giving no instruction to the China Grain Reserve Management Corporation to order rectification to its subordinate enterprises that are found to be in any of the circumstances unfit for the storage of central grain reserves; or (4) failing to conduct timely investigation and punishment after receiving a complaint or discovering an illegal act. Article 50. When the China Grain Reserve Management Corporation or the branches thereof violate the provisions of the present Regulations and commit any of the following acts, the grain administration department of the state shall order correction; for the person-in-charge and other persons bearing direct responsibilities, it shall instruct the China Grain Reserve Management Corporation to give disciplinary sanctions, ranging form warning to removal from office; if the circumstance is serious, the person-in-charge and other persons bearing direct responsibilities shall be given disciplinary sanctions, ranging from demotion in title or rank to dismissal; if a crime is constituted, the criminal liability shall be investigated for: (1) rejecting the implementation of or arbitrarily alter the purchase, sales and annual rotation plans for central grain reserves or the order on the use of central grain reserves; (2) selecting unqualified enterprises for the storage of central grain reserves; (3) failing to make correction upon discovering a problem with the quantity or quality of central grain reserves, or taking no prompt and effective measures and making no report in accordance with the provisions upon discovering a serious problem with the storage safety of central grain reserves; or (4) rejecting, obstructing or interfering with the lawful performance of duties by the supervision & inspection staff of the grain administration department of the state, the finance department under the State Council and the audit organ(s). Article 51. Where a storage enterprise violates the provisions of the present Regulations and commits any of the following acts, the grain administration department of the state shall instruct the China Grain Reserve Management Corporation to order rectification within a time limit; if the circumstance is serious, such enterprise shall be disqualified for the storage of central grain reserves; for the person-in-charge and other persons bearing direct responsibilities, disciplinary sanctions, ranging from warning to dismissal shall be given; if a crime is constituted, the criminal liability shall be investigated for: (1) bringing in central grain reserves that are not up to the quality grade or national standard; (2) failing to place central grain reserves under the roof of special warehouses, the care of special staff and the record in special account, or failing to ensure the consistency of one account with another, or the consistency of accounts with facts; (3) conducting no timely disposal upon discovering the problems with the quantity, quality or storage safety of central grain reserves, or make no timely report when such disposal is beyond its capability; or (4) rejecting, obstructing or interfering with the lawful performance of duties by the supervision & inspection staff of the grain administration department of the state, the finance department under the State Council, the audit organ(s)s, or the inspection staff of the China Grain Reserve Management Corporation. Article 52. where a storage enterprise violates the provisions of the present Regulations and commits any of the following acts, the grain administration department of the state shall instruct the China Grain Reserve Management Corporation to order rectification within a time limit; the illegal gains shall be confiscated if there are any; the person-in-charge who bears direct responsibilities shall be given disciplinary sanctions, ranging from demotion in title or rank to dismissal, and the other persons bearing direct responsibilities shall be given disciplinary sanctions, ranging from warning to dismissal; if a crime is constituted, the criminal liability shall be investigated for; and such enterprise shall be disqualified for the storage of central grain reserves: (1) making a false or deceptive report on the quantity of central grain reserves; (2) practicing adulteration or fraud with central grain reserves; (3) arbitrarily replacing the type or changing the storage site of central grain reserves; (4) causing aging or deterioration to central grain reserves; (5) refusing to implement or arbitrarily altering the purchase, sales and rotation plan for central grain reserves or the order on the use of central grain reserves; (6) using central grain reserves without approval; or (7) holding central grain reserves for external guarantees or settlement of debts. Article 53. Where a storage enterprise violates the provisions of the present Regulations and arbitrages by buying at a low price while registering a high price in the account, or selling at a high price while registering a low price in the account, or employing fraud to obtain the loans for central grain reserves and the financial subsidies for loan interest and management cost, the grain administration department of the state and the finance department under the State Council shall, according to their respective functions, instruct the China Grain Reserve Management Corporation to order rectification within a time limit and reimbursement of the fraudulently obtained loans and financial subsidies for loan interest and management cost; the illegal gains shall be confiscated if there are any; the person-in-charge who bears direct responsibilities shall be given disciplinary sanctions, ranging from demotion in title or rank to dismissal, and the other persons bearing direct responsibilities shall be given disciplinary sanctions, ranging from warning to dismissal; if a crime is constituted, the criminal liability shall be investigated for; and such enterprise shall be disqualified for the storage of central grain reserves. Article 54. Where an enterprise entrusted with the storage of central grain reserves operates the rotation business of central grain reserves and other businesses together, the grain administration department of the state shall instruct the China Grain Reserve Management Corporation to order correction within a time limit; the person-in-charge who bears direct responsibilities shall be given disciplinary sanctions, ranging from warning to demotion in title or rank; if losses are caused to central grain reserves, the person-in-charge who bears direct responsibilities shall be given disciplinary sanctions, ranging from removal from office to dismissal; and such enterprise will be disqualified for the storage of central grain reserves. Article 55. In case of violation of the provisions of the present Regulations such as misappropriating, retaining or unwarrantedly diverting the loans for central grain reserves or the financial subsidies for loan interest, management cost or arbitrarily altering the warehousing cost of central grain reserves, the finance department under the State Council and the China Agriculture Development Bank shall, according to their respective duties, order correction or impose credit sanctions; the illegal gains shall be confiscated if there are any; the person-in-charge or other persons bearing direct responsibilities shall be given disciplinary sanctions, ranging from removal from office to dismissal; if a crime is constituted, the criminal liability shall be investigated for. Article 56. For any staff of state organs or the China Agriculture Development Bank who violate the provisions of the present Regulations to abuse powers, conduct malpractices for personal gains, or neglect duties, if a crime is constituted, the criminal liability shall be investigated for; administrative or disciplinary sanctions, ranging from demotion in title or rank to dismissal may be given where no crime is constituted. Article 57. In case of violation of the present Regulations, such as destroying the warehousing facilities for central grain reserves, stealing, encroaching upon or doing damage to central grain reserves, if a crime is constituted, the criminal liability shall be investigated for; the sanctions may be given in accordance with the Regulations of the People's Republic of China on Administrative Penalties for Public Security when no crime is constituted. If property losses are caused, the offender shall be liable for the civil compensation. Article 58. The administrative sanctions on the staff of state organs prescribed by the present Regulations shall be executed in accordance with the provisions of the Interim Regulations on State Civil Servants; the disciplinary sanctions on the staff of the China Grain Reserve Management Corporation, the branches thereof, the storage enterprises and the China Agriculture Development Bank shall be executed in accordance with the provisions of the Regulations on Rewards and Punishment of Employees in Enterprises. Where the execution of sanctions is provided otherwise by the state, those provisions shall be observed. CHAPTER VII SUPPLEMENTARY PROVISIONS Article 59. The administrative measures for local grain reserves shall be formulated by the authorities of the provinces, autonomous regions and municipalities directly under the Central Government, by referring to the present Regulations. Article 60. The present Regulations shall come into force as of the date of promulgation. |
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