Chinese Communist Party's Regulations on the Administration of Grain Circulation as of 2013

 Regulations on the Administration of Grain Circulation

  (Promulgated by Decree No. 407 of the State Council of the People's Republic of China on May 26, 2004, revised in accordance with the Decision of the State Council on Abolishing and Amending Some Administrative Regulations on July 18, 2013)

Chapter 1 General Provisions

  Article 1 In order to protect the enthusiasm of grain producers, promote grain production, safeguard the legitimate rights and interests of operators and consumers, ensure national grain security, and maintain the order of grain circulation, these Regulations are formulated in accordance with relevant laws.

  Article 2 Those who engage in business activities such as grain purchase, sale, storage, transportation, processing, import and export within the territory of the People's Republic of China (hereinafter collectively referred to as grain business activities) shall abide by these Regulations.

  The grains mentioned in the preceding paragraph refer to wheat, rice, corn, miscellaneous grains and their finished grains.

  Article 3 The state encourages market entities with multiple ownerships to engage in grain business activities to promote fair competition. Grain business activities carried out in accordance with the law shall be protected by national laws. Obstructing the free flow of food by illegal means is strictly prohibited.

  State-owned grain purchasing and selling enterprises should transform their operating mechanisms, improve their market competitiveness, play the role of the main channel in grain circulation, and take the lead in implementing the national grain policy.

  Article 4 Grain prices are mainly formed by market supply and demand.

  The state strengthens the management of grain circulation and enhances its ability to regulate the grain market.

  Article 5 Grain business activities shall follow the principles of voluntariness, fairness, good faith, and shall not harm the lawful rights and interests of grain producers and consumers, and shall not harm national interests and public interests.

  Article 6 The development and reform department of the State Council and the national grain administration department are responsible for the national grain balance, macro-control, structural adjustment of important grain varieties, and medium and long-term planning for grain circulation; the national grain administration department is responsible for the administrative management of grain circulation, Industry guidance, supervise the implementation of laws, regulations, policies and various rules and regulations related to grain circulation.

  The departments of industry and commerce administration, product quality supervision, health, and price of the State Council shall be responsible for the work related to grain circulation within the scope of their respective duties.

  The people's governments of provinces, autonomous regions and municipalities directly under the Central Government shall be responsible for the balance of the total amount of grain in their regions and the management of local grain reserves in accordance with the requirements of the grain governor responsibility system under the macro-control of the state. The grain administrative department of the local people's government at or above the county level is responsible for the administration and industry guidance of grain circulation in the region; Circulation related work.

Chapter II Grain Management

  Article 7 Grain operators refer to legal persons, other economic organizations and individual industrial and commercial households engaged in business activities such as grain purchase, sales, storage, transportation, processing, import and export.

  Article 8 Operators engaged in grain purchase activities shall meet the following conditions:

  (1) Have the ability to raise operating funds;

  (2) Own or lease necessary grain storage facilities;

  (3) Have corresponding grain quality inspection and storage ability.

  The specific conditions specified in the preceding paragraph shall be formulated and announced by the people's governments of provinces, autonomous regions and municipalities directly under the Central Government.

  Article 9 Only operators who have obtained the qualification for grain purchase and have gone through the registration procedures in accordance with the "Regulations of the People's Republic of China on the Administration of Company Registration" can engage in grain purchase activities.

  To apply for engaging in grain purchase activities, a written application shall be submitted to the grain administrative department at the same level as the department handling the industrial and commercial registration, and supporting materials such as funds, storage facilities, quality inspection and storage capacity shall be provided. The grain administrative department shall complete the review within 15 working days from the date of acceptance, and make a decision on approval and publicize the applicants who meet the specific conditions specified in Article 8 of these Regulations.

  Article 10 Those who have obtained the grain purchase qualification permit from the grain administration department shall go through establishment registration with the industry and commerce administration department in accordance with the law, and indicate the grain purchase in the business scope; those who have been registered with the industry and commerce administration department shall also obtain the approval for grain purchase activities. The grain administrative department shall obtain the grain purchase qualification license, and shall go through the registration of change of business scope with the industry and commerce administrative department in accordance with the law, and indicate the grain purchase in the business scope.

  Article 11 Grain operators (hereinafter referred to as grain purchasers) that engage in grain purchases in accordance with the law shall inform the grain sellers or publicize the varieties, quality standards and purchase prices of grains at the purchase site.

  Article 12 When purchasing grain, grain buyers shall comply with the national grain quality standards, evaluate prices according to quality, and shall not harm the interests of farmers and other grain producers; they shall pay grain sellers in a timely manner and shall not be in arrears; Delegate to withhold and pay any taxes, fees and other payments.

  Article 13 Grain purchasers shall regularly report the quantity of grain purchased and other relevant information to the grain administrative department of the people's government at the county level in the place of purchase.

  For cross-provincial purchase of grain, the relevant information such as the quantity of grain purchased shall be regularly reported to the grain administrative department of the people's government at the county level at the place of purchase and the place where the grain purchaser is located.

  Article 14 Grain operators engaged in grain sales, storage, transportation, processing, import and export and other business activities shall be registered with the administration for industry and commerce.

  Article 15 The grain storage facilities used by grain operators shall meet the requirements of relevant standards and technical specifications for grain storage. Grain shall not be mixed with harmful substances that may pollute the grain, and the storage of grain shall not use chemicals prohibited by the state or excessive use of chemicals.

  Article 16 When transporting grains, the technical specifications of the state for grain transport shall be strictly followed, and contaminated means of transport or packaging materials shall not be used to transport grains.

  Article 17 Operators engaged in edible grain processing shall have the necessary processing conditions to ensure grain quality and hygiene, and shall not commit the following acts:

  (1) Use moldy and deteriorated raw grains and by-products for processing;

  (2) Use additives in violation of regulations ;

  (3) Using packaging materials that do not meet the quality and sanitation standards;

  (4) Other acts that affect the quality and sanitation of grains.

  Article 18 The sales of grain shall strictly comply with the relevant national grain quality and sanitation standards, and shall not be short-lived, adulterated, or shoddy, and shall not be hoarding, monopolizing or manipulating grain prices, or bullying the market.

  Article 19 Establish a quality inspection system for grain sales and delivery. Grain storage enterprises should go through the quality appraisal of grain quality inspection agencies before they leave the warehouse for aged grains that have exceeded the normal storage period. Any grains that have been aged and deteriorated and do not meet the edible hygiene standards are strictly prohibited from entering the grain market. The criteria for determining aged grains shall be formulated by the national grain administration department in conjunction with relevant departments, and the specific measures for the sale, processing and supervision of aged grains shall be implemented in accordance with the relevant provisions of the state.

  Article 20 Operators engaged in grain purchase, processing and sales must maintain necessary stocks.

  When necessary, the people's governments of provinces, autonomous regions and municipalities directly under the Central Government shall stipulate specific standards for the minimum and maximum inventory.

  Article 21 State-owned and state-controlled grain enterprises shall actively purchase grain, and do a good job in grain purchase entrusted by the government and the purchase and sale of grain for policy use, and obey and serve the state's macro-control.

  Article 22 For grain purchasers that meet the loan conditions, the bank shall provide purchase loans in a timely manner in accordance with relevant state regulations. The Agricultural Development Bank of China shall ensure that the central and local grain reserves, the government's grain control and other policy-related grain needs credit funds, and state-owned and state-controlled grain purchase and sales enterprises, large-scale grain industrialization leading enterprises and other grain purchase and sales enterprises shall be The risk tolerance of enterprises provides credit financing support.

  Article 23 All grain operators engaged in grain purchase, sales, storage, and processing, as well as fodder and industrial grain enterprises, shall establish a grain business ledger, and report the grain purchase to the grain administrative department of the people's government at the county level where they are located. Import, sales, storage and other basic data and related information. The grain business operator shall keep the grain business ledger for a period of not less than 3 years. If the basic data and relevant information submitted by grain operators involve commercial secrets, the grain administrative department shall be obliged to keep it confidential.

  The national grain circulation statistical system shall be formulated by the national grain administration department and submitted to the State Council statistics department for approval.

  Article 24 Grain industry associations and intermediary organizations shall strengthen industry self-discipline, and play a supervisory and coordinating role in maintaining the order of the grain market.

Chapter 3 Macro-control

  Article 25 The state adopts various economic means such as grain reserves, entrusted purchases, grain import and export, and other necessary administrative means, as well as price intervention, to strengthen the regulation of the grain market, and to maintain a basic balance between the total supply and demand of grain across the country and a basic stability of prices. .

  Article 26 The state implements a central and local graded grain reserve system. Grain reserves are used to regulate grain supply and demand, stabilize grain markets, and respond to major natural disasters or other emergencies.

  The purchase and sale of grain for policy use is, in principle, open to the public through the grain wholesale market, but can also be carried out through other methods prescribed by the state.

  Article 27 The State Council and local people's governments establish and improve the grain risk fund system. The Grain Risk Fund is mainly used to directly subsidize grain farmers, support grain reserves, and stabilize grain markets.

  The financial departments of the State Council and local people's governments shall be responsible for the supervision and management of the grain risk fund to ensure that the funds are used exclusively for the purpose.

  Article 28 When there is a major change in the relationship between grain supply and demand, in order to ensure market supply and protect the interests of grain farmers, the State Council may decide to implement minimum purchase prices for key grain varieties in short supply in major grain producing areas when necessary.

  When grain prices rise significantly or are likely to rise significantly, the State Council and the people's governments of provinces, autonomous regions and municipalities directly under the Central Government may, in accordance with the "Price Law of the People's Republic of China", take price intervention measures.

  Article 29 The development and reform department of the State Council and the national grain administration department, together with the departments of agriculture, statistics, and product quality supervision, are responsible for monitoring and early warning analysis of the supply and demand situation of the grain market, establishing a random inspection system for grain supply and demand, and publishing grain production, consumption, price, quality and other information.

  Article 30 The state encourages the main grain production areas and main grain sales areas to establish stable production and sales relations in various forms, encourages the establishment of grain business enterprises integrating production and sales, and develops contract agriculture, and the state gives necessary economic preferential treatment when implementing the minimum purchase price , and give priority to food transportation.

  Article 31 When major natural disasters, major epidemics or other emergencies cause abnormal fluctuations in the supply and demand of the grain market, the state implements a grain emergency mechanism.

  Article 32 The state establishes a food emergency response system for emergencies. The development and reform department of the State Council and the national grain administration department, together with the relevant departments of the State Council, formulate a national emergency plan for grain, and submit it to the State Council for approval. The people's governments of provinces, autonomous regions and municipalities directly under the Central Government shall formulate food emergency plans for their respective administrative regions according to the actual conditions of their respective regions.

  Article 33 When starting a national emergency plan for grain, the development and reform department of the State Council and the national grain administration department shall put forward suggestions and report to the State Council for approval before implementation.

  The provincial, autonomous region, or municipality directly-governed municipality's grain emergency plan shall be initiated, and the development and reform department and grain administrative department of the province, autonomous region, or municipality directly under the Central Government shall make recommendations, report it to the people's government at the same level for decision, and report to the State Council.

  Article 34 After the  grain emergency plan is activated, all grain operators must undertake emergency tasks in accordance with the requirements of the state, obey the unified arrangements and dispatching of the state, and ensure the needs of emergency work.

Chapter IV Supervision and Inspection

  Article 35 The grain administrative department shall, in accordance with these Regulations, supervise and inspect grain operators engaged in grain purchase, storage, transportation, purchase and sale of grain for policy use, and the implementation of the national grain circulation statistical system.

  The grain administrative department shall verify the grain purchase qualifications according to the requirements of the state.

  In the process of supervision and inspection, the grain administrative department may enter the business premises of grain operators to check the stock of grain, the quality of grain in the purchase, storage activities, and the hygiene of raw grain; check whether the grain storage facilities and equipment comply with the national technical specifications; The relevant information and vouchers of the person concerned; investigate and understand the relevant situation from the relevant units and personnel.

  Article 36 The product quality supervision department shall, in accordance with the provisions of relevant laws and administrative regulations, supervise and inspect illegal acts such as passing fakes as genuine, shoddy products, and adulteration of fakes in the process of grain processing.

  Article 37 The administrative department for industry and commerce shall, in accordance with the provisions of relevant laws and administrative regulations, conduct unlicensed operations, out-of-scope operations in grain business activities, and hoarding, bullying the market, forcibly buying and selling, adulteration and counterfeiting, and hoarding in grain sales activities. Supervise and inspect behaviors that disrupt market order and violate laws and regulations with shoddy charging.

  Article 38 The health department shall supervise and inspect the sanitation in grain processing and sales and the sanitation in the storage of finished grains in accordance with the relevant laws and administrative regulations.

  Article 39 The competent pricing department shall, in accordance with the provisions of relevant laws and administrative regulations, supervise and inspect the price violations in grain circulation activities.

  Article 40 : Any unit or individual has the right to report to the relevant departments for acts violating the provisions of these Regulations. Relevant departments shall keep the whistleblower confidential and deal with them in a timely manner according to law.

Chapter V Legal Liability

  Article 41 Whoever engages in grain purchase activities without the permission of the grain administration department or without registration with the industry and commerce administration department shall confiscate the illegally purchased grain by the industry and commerce administration department; if the circumstances are serious, the illegally purchased grain shall be punished by one time of the value of the illegally purchased grain. More than 5 times the fine; if a crime is constituted, criminal responsibility shall be investigated according to law.

  If it is found out by the grain administration department, it shall be handed over to the industry and commerce administration department for punishment in accordance with the provisions of the preceding paragraph.

  Article 42 Whoever obtains the qualification license for grain purchase by deceit, bribery or other improper means shall be disqualified by the grain administration department, the business license shall be revoked by the industry and commerce administration department, and the illegal gains shall be confiscated; if a crime is constituted, criminal responsibility shall be investigated according to law .

  If a staff member of the grain administrative department applies for a grain purchase qualification license, asks for or accepts other people's property or seeks other benefits, and if a crime is constituted, he shall be investigated for criminal responsibility according to law; if a crime is not constituted, he shall be given administrative sanctions according to law.

  Article 43 If a  grain purchaser fails to inform and publicize the purchase price of grain in accordance with the regulations, or purchases grain to lower prices, monopolize or manipulate prices, etc., the competent price department shall follow the relevant provisions of the "Price Law of the People's Republic of China". impose administrative penalties.

  Article 44 Under any of the following circumstances, the grain administration department shall order it to make corrections, give a warning, and may impose a fine of less than 200,000 yuan; if the circumstances are serious, the grain administration department shall suspend or cancel the grain purchase qualification:

  ( 1) The grain purchaser fails to implement the national grain quality standards;

  (2) The grain purchaser is reported by the grain seller for failing to pay the grain sales fee in time;

  (3) The grain purchaser withholds or pays taxes and fees in violation of the provisions of these Regulations (4) Grain

  operators engaged in grain purchase, sales, storage, and processing, as well as fodder and industrial grain enterprises, fail to establish a grain business ledger, or fail to submit basic grain data and relevant information in accordance with regulations;

  ( 5) The entrusted grain operator engages in the purchase and sale of grain for policy purposes and fails to implement the relevant national policies.

  Article 45 If the  old grain is shipped out of the warehouse without quality appraisal in accordance with the provisions of these regulations, the grain administrative department shall order it to make corrections and give a warning; if the circumstances are serious, a fine of not less than 1 time but not more than 5 times the value of the grain from the warehouse shall be imposed, and the administration for industry and commerce shall The department can revoke the business license.

  Whoever resells aged grains or does not use aged grains in accordance with the regulations shall confiscate the illegally resold grains and impose a fine of less than 20% of the value of the illegally resold grains; if the circumstances are serious, the industrial and commercial administrations shall also impose illegal resale of grains. If the fine is more than 1 time but not more than 5 times the value of the grain, the business license shall be revoked; if a crime is constituted, criminal responsibility shall be investigated according to law.

  Article 46 If the grain stocks of the operators engaged in grain purchase, processing and sales are lower than the prescribed minimum stocks, the grain administration department shall order corrections and give warnings; if the circumstances are serious, the grain shall be punished by more than 1 times the value of the insufficient grains The fine of less than 5 times, and the qualification for grain purchase can be cancelled, and the industrial and commercial administration department can revoke the business license.

  If the grain stocks of operators engaged in grain purchase, processing and sales exceed the specified maximum stocks, the grain administrative department shall order corrections and give warnings; if the circumstances are serious, a fine of more than 1 time but not more than 5 times the value of the excess grain shall be imposed, And can cancel the qualification of grain purchase, the industry and commerce administrative department can revoke the business license.

  Article 47 If a  grain operator fails to use grain storage facilities or means of transportation in accordance with the provisions of these Regulations, the grain administrative department or the health department shall order it to make corrections and issue a warning; the contaminated grain shall not be sold or processed illegally.

  Article 48 Anyone who violates the provisions of Articles 17 and 18 of these Regulations shall be punished by the product quality supervision department, the industrial and commercial administration department, the health department, etc. in accordance with the provisions of relevant laws and administrative regulations.

  Article 49 If the  financial department fails to allocate subsidy funds in a timely and full amount in accordance with the state's regulations on the management of grain risk funds, or squeezes, withholds, or misappropriates subsidy funds, the people's government at the same level or the financial department at a higher level shall order it to make corrections, and the relevant responsibilities Personnel shall be given administrative sanctions according to law; if a crime is constituted, the relevant responsible persons shall be investigated for criminal responsibility according to law.

  Article 50 Those who violate the provisions of these regulations and obstruct the free flow of grain shall be punished in accordance with the "Provisions of the State Council on Prohibiting the Implementation of Regional Blockades in Market Economic Activities".

  Article 51 Where supervisors and inspectors violate the provisions of these Regulations and illegally interfere with the normal business activities of grain operators, they shall be given administrative sanctions according to law; if a crime is constituted, they shall be investigated for criminal responsibility according to law.

Chapter VI Supplementary Provisions

  Article 52 The meanings of the following terms in these Regulations are:

  Grain purchase refers to the activities of directly purchasing grain in bulk from grain farmers or other grain producers for sale, processing or as feed, industrial raw materials, etc.

  Grain processing refers to the business activities of converting raw grains into semi-finished grains, finished grains, or converting semi-finished grains into finished grains through processing.

  Article 53 The purchase, sale, storage, transportation, processing, import and export of soybeans, oilseeds and edible vegetable oils shall be governed by the provisions of these Regulations except for Articles 8, 9 and 10.

  The management of grain import and export shall be implemented in accordance with the provisions of relevant laws and administrative regulations.

  The management of central grain reserves shall be carried out in accordance with the provisions of the Regulations on the Administration of Central Grain Reserves.

  Article 54 These Regulations shall come into force on the date of promulgation. The "Regulations on Grain Purchase" promulgated by the State Council on June 6, 1998 and the "Measures for Punishment of Illegal Behaviors in Grain Purchase and Sale" promulgated by the State Council on August 5, 1998 shall be repealed at the same time. 


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