Notice of Nansha District bureau of development and reform of Guangzhou Municipality, Nansha District Bureau of Finance of Guangzhou Municipality and Office of Business Department of Guangdong Province Branch of Agricultural Development Bank of China on Issuing the Management Measures of Nansha District for District-level Grain and Oil Reserves (Revised in 2021)

Management Measures of Nansha District for District-level Grain and Oil Reserves (Revised in 2021)

Chapter I General Provisions

Article 1: In order to strengthen the management of district-level grain and oil reserves in Nansha district and ensure the safety of grain and oil reserves and the stability of grain and oil market, in accordance to the Regulations on the Grain Circulation Management, the Management Measures for Grain and Oil Storage, Measures for Supervision of Grain Quality and Safety, the Regulations of Guangdong Province on Food Safety, the Management Measures of Guangdong Province for Provincial Grain Reserves and the Management Measures of Guangzhou Municipality for Municipal Grain and Oil Reserves (Revised in 2020), these measures are hereby formulated in light of the realities of Nansha district.

Article 2: District-level grain and oil reserves are special stockpiles of grain and oil established by the district government to effectively regulate the grain and oil market, and respond to the supply shortage caused by abnormal market fluctuations resulting from severe natural disasters or other emergencies.

Article 3: The management departments of district-level grain and oil reserves include Nansha district bureau of development and reform of Guangzhou municipality, (hereinafter referred to as district bureau of development and reform), Nansha district bureau of finance, and Business Department of Guangdong Province Branch of Agricultural Development Bank of China (hereinafter referred to as ADBC Guangdong Branch Business Department). All departments shall participate in the management in accordance with their respective responsibilities.

Article 4: District-level grain and oil reserves shall be entrusted to qualified grain and oil enterprises for storage. During such storage, the enterprises will be paid in accordance with standards, and shall be responsible for their own profits and losses.

Article 5: The ownership of district-level grain and oil reserves belongs to Nansha district people's government. Without the approval of the district government or its authorized management department of district-level grain and oil reserves, no entity or individual may utilize such reserves or use them to provide economic guarantee, as collateral or in debt liquidation.

Article 6: Entities and individuals participating in the storage, supervision and other activities of district-level grain and oil reserves shall abide by these measures.

Chapter II Division of Responsibilities

Article 7: The district bureau of development and reform shall be in charge of district-level grain and oil reserves. It shall be responsible for: the daily management of district-level grain and oil reserves, and organizing, coordinating and implementing grain and oil reservation; formulating grain and oil reserve plans; preparing and implementing the grain and oil reserve plans; proposing the warehousing conditions of grain and oil storage enterprises; working with the district bureau of finance to organize and implement the bidding and auction sales of grain and oil reserves; organizing the inspection and rotation of grain and oil reserves; supervising the implementation of grain and oil reserve plan and storage safety; the statistics of grain and oil reserves; the annual settlement of grain and oil reserve costs; implementing the supervision, inspection and performance evaluation of grain and oil reserves as required, and allocating reserve fees, interest subsidies for grain and oil reserves loans, rotation quality and price difference subsidies, etc. in accordance with the administrative regulations of the State Treasury centralized payment; promoting the application of advanced grain storage technology and the informatization of grain and oil reserve management.

Article 8: The district bureau of finance is responsible for the management of special funds for district-level grain and oil reserves; re-examining and allocating financial funds for the reserve fees, grain and oil reserve loan interest subsidy, and rotation quality price difference subsidy reviewed by the district bureau of development and reform, in accordance with the administrative regulations of the State Treasury centralized payment; organizing and implementing fiscal capital supervision and overall performance evaluation as per its responsibilities.

Article 9: The ADBC Guangdong Branch Business Department shall, in accordance with relevant provisions of the state and relevant loan management measures of  the Agricultural Development Bank of China, grant the loans required for grain and oil reserves and supervise such reserves.

Article 10: In accordance with these measures and the storage contract, the storage enterprises should properly store and rotate the district-level grain and oil reserves; they take the main responsibility for the quantity, quality and storage safety of the grain and oil reserves to ensure smooth storage, management, allocation and utilization.

Chapter III Scale and Variety

Article 11: The district-level grain and oil reserves are important strategic supplies and regular stockpiles of the district government. The district bureau of development and reform shall work with the district bureau of finance to put forward the reserve scale and arrangements according to the assignments by the municipal government or the need of regulating the grain and oil market, and submit them to the district government for approval. The management departments of district-level grain and oil reserves shall determine the reserve variety mix in accordance with the demand of circulation, emergency needs and storage conditions. The arrangement of district-level grain and oil reserves shall comply with such principles as safe storage, flexible dispatching, easy rotation and cost saving.

Article 12: The district-level grain and oil reserves should be mainly comprised of rice, paddy, and wheat, accounting for no less than seventy percent of the total storage; the reserved cooking oil shall mainly be peanut oil, soybean oil and palm oil. The reserve of refined grain and oil shall be sufficient to feed the permanent residents of Nansha district for more than fifteen days.

Chapter IV Storage Management

Article 13: The storage enterprises shall meet the warehousing conditions for district-level grain and oil reserves put forward by the district bureau of development and reform, as well as the following requirements:

(I) The warehouse capacity meets the specified standard;

(II) The storage facilities are equipped with such functions as storage, ventilation, warehouse entry/exit and pest control, complying with the technical specifications specified by the state, province and municipality;

(III) The warehouse should be able to test grain quality in accordance with regulations, monitor the conditions for grain storage such as temperature, moisture, pest status, etc.;

(IV) Managerial and technical personnel should have the qualification certificates for grain storage, quality inspection and pest control;

(V) The warehouse should have good business management and reputation and have no illegal business record and have not been listed as a receiver of joint punishment on dishonesty.

Article 14: The allocation of district-level grain and oil reserve tasks should come in two ways,  direct entrustment and bidding-based entrustment.

(1) Direct entrustment refers to the management department of district-level grain and oil reserves directly entrusting qualified grain and oil enterprises and grain depots to undertake the tasks. Those being entrusted normally are state-owned grain and oil enterprises under the municipal (district) government, which feature sizeable grain and oil reserve facilities and capacity. The grain and oil reserves directly entrusted for storage will be purchased by the district bureau of development and reform through public bidding.

(2) Bidding-based entrustment refers to the public bidding conducted by the district-level grain and oil reserves management departments by combining the storage service with the purchase of grain and oil. The bidding shall be open to all grain and oil enterprises that meet the storage conditions.

Article 15: After the storage entrustment relationship is established, the district bureau of development and reform should sign a contract with the storage enterprise, and publicize the letter of commitment of the storage enterprise on the Nansha credit website. The contract shall cover the reserve variety, quantity, location, duration, cost, quality requirements, etc., and specify the district government's ownership of the grain and oil reserves, as well as both parties' rights, obligations, and liabilities for breach of contract.

Article 16: Before the end of the storage period, storage enterprises shall prepare the grain and oil reserves inventory in advance in accordance with the variety, quantity and quality requirements specified in the storage contract. The district bureau of development and reform will entrust a qualified third-party grain and oil quality inspection institution to check the inventory; if the inventory passes the inspection, the bureau will organize public bidding-based sales and terminate the contract after the full settlement.

Article 17: Upon the end of the storage period, if the grain and oil market is experiencing increased volatility or the reserves are needed for emergency, with the approval of the district government, the storage period may be duly extended by concluding a new contract. In principle, the varieties, prices and sites for the reserve remain unchanged.

Chapter V Quality Management

Article 18: The quality and safety standards for district-level grain and oil reserves should be consistent with the municipal standards. Specifically, the quality of grain reserves must be of medium grade or above the national standard and comply with the national food safety standard; the quality of peanut oil and soybean oil reserves must be grade I or above the national standard, while the quality of palm oil must reach the national quality standard for palm liquid oil and the national food safety standard.

Article 19: The warehoused grain and oil reserves shall be inspected and certified by a qualified third-party grain and oil quality inspection institution. The inspection fee is paid by the storage enterprise.

Article 20: To ensure the grain and oil reserve quality, a "one batch with one inspection and one report" management system should be implemented. That is, each batch of reserve entering the warehouse will be respectively inspected and an inspection report will be issued. The inspection report will be filed by the district bureau of development and reform, the inspection institutions, and the storage enterprises for future reference.

Article 21: The storage enterprise shall notify the third-party inspection institution of sampling within five working days after the grain and oil reserves have been stored and stacked. The inspection institution shall complete the sampling and inspection and issue an inspection report within fifteen working days after receiving the notice of sampling.

Article 22: The storage enterprise should establish a quality and safety management system, regularly inspect the quality and safety standards of the grain and oil reserves in the warehouse in accordance with the grain and oil quality standards, food safety standards and relevant regulations, and truthfully complete the quality and safety archives. Such archives should be kept for no less than five years from the date when the grain and oil are sold and delivered out of the warehouse.

Article 23: The storage enterprise shall establish a quality and safety inspection system for rotating the outbound delivery of grain and oil reserves.

(1) For the grain and oil reserves within the normal storage life, when they are delivered out of warehouse on a rotation basis, they can be inspected by the storage enterprise.

(2) For the grain and oil reserves beyond normal storage life, when they are delivered out of warehouse on a rotation basis, the storage enterprise shall entrust a third-party grain and oil quality inspection institution to inspect and issue an inspection report.

Article 24: Storage enterprises shall formulate reaction plans for quality safety accidents of grain and oil reserves, implement the prevention measures for quality and safety risks, and timely eliminate the hidden danger of quality safety accidents. Any quality safety problems of grain and oil reserves should be handled timely and properly in accordance with regulations and policy requirements.

Chapter VI Storage Management

Article 25: The storage enterprises take the major responsibility for the safe storage and production of grain and oil reserves, and should strictly implement the Interim Provisions on the Safety Responsibility of Grain and Oil Storage, the Code for Safe Storage of Grain and Oil, the Code for Safe Production of Grain Depots, the Technical Specifications for Grain and Oil Storage and other industry regulations to ensure the safety and good quality of grain and oil reserves.

Article 26: For the district-level grain and oil reserves, the storage enterprises shall store them in special warehouses (tanks), designate specific personnel, make records in special accounts, use organized accounts, tables, cards and warehouse plates, and fill out relevant statistical statements in a timely, accurate and complete manner; they shall establish storage accounts, statistical accounts and financial accounts, and record the purchase, sales and storage of grain and oil reserves on a monthly basis for future reference, where consistency should be kept between the accounts, between the accounts and tables, between the accounts and cards, and between the accounts and realities. Once the storage site of grain and oil reserves is determined, it should not be changed without the approval of the district bureau of development and reform.

Article 27: Storage enterprises shall establish a safe storage and production system for grain and oil reserves, improve the safety protection facilities, and regularly carry out safety inspections and hidden danger tackling. Once found, any safe storage and production problem should be properly handled in accordance with the applicable regulations and policy to avoid further losses.

Article 28: The storage enterprises shall actively apply the new grain storage technologies, processes and equipment to improve the ability of scientific grain storage; they shall cooperate with the municipal and district departments in the informatization of grain and oil reserve management, install certain facilities and equipment as needed, and manage and use the information platform in accordance with regulations.

Chapter VII Rotation Management

Article 29: The rotation of the district-level grain and oil reserves shall be organized and implemented by the storage enterprises based on market demand and these measures.

Article 30: A plan management is implemented for the rotation of district-level grain and oil reserves, and the district bureau of development and reform is responsible for preparing and issuing the annual rotation plan. During the implementation of the annual rotation plan, the storage enterprises may apply for adjusting the rotation plan on the condition that they can ensure the compliance of such rotation, and a report should be made to the district bureau of development and reform for approval.

Article 31: The annual rotation plan of district-level grain and oil reserves is mainly based on the storage quality and storage life. The storage life of high-quality rice shall not exceed one year, that of ordinary rice shall not exceed two years, that of wheat shall not exceed three years, and that of finished grain and oil products shall not exceed 1 year; they shall be replaced on a rotation basis before they expire. The rotation of other varieties should follow the relevant national regulations. When expired, if the quality specifications still meet the storage standards, the rotation can be appropriately postponed with the consent of the district bureau of development and reform.

Article 32: The district-level grain and oil reserves shall be rotated in accordance with the approved variety and quantity. The rotation time for each batch shall not exceed three months, and beyond this period, full inventory consistent with the reserve scale shall be guaranteed. The specific implementation plan shall be determined in writing through consultation between the district bureau of development and reform and the storage enterprises.

Article 33: The rotation of district-level grain and oil reserves shall be subject to the examination and approval system. The storage enterprises make applications in batches in accordance with the annual rotation plan and submit them to the district bureau of development and reform for examination and approval. The approval results shall be sent to the ADBC Guangdong Branch Business Department for filing.

Article 34: In case of force majeure such as disasters, epidemics and emergencies, the management departments of district-level grain and oil reserves may suspend the rotation and require the storage enterprises to replenish the reserves in time to ensure sufficient emergency grain supply.

Chapter VIII Financial Management

Article 35: According to the requirements of financial fund management and the administrative regulations of the State Treasury centralized payment, the district bureau of finance shall verify and allocate the funds required for grain and oil reserves in time.

Article 36: The storage enterprise shall open a basic account, a reflow account and a special account for financial subsidies in the Agricultural Development Bank of China. They should accept fund supervision and follow relevant provisions of the said bank on management of grain and oil reserve loans.

Article 37: Grain and oil reserve costs include reserve fees, interest subsidies for grain and oil reserve loans, and subsidies for price differences due to the rotation.

Article 38: The district standard for reserve fees is set in line with the Guangzhou municipal standards.

Article 39: The interest subsidy standard for grain and oil reserve loans is calculated based on the approved bid-winning warehouse-entry price of grain and oil reserve procurement, and the interest rate of grain and oil reserve loans of the Agricultural Development Bank of China.

Article 40: The subsidy standard for price difference of grain and oil reserve rotation quality shall be in line with the Guangzhou municipal standards.

Article 41: The grain and oil reserve costs should be allocated in advance and settled annually. The reserve fees and interest subsidy for grain and oil reserve loans shall be pre-allocated quarterly; the subsidy for price difference of rotation quality shall be pre-allocated based on the rotation completion progress. Storage enterprises may submit an application, and with the approval by the district bureau of development and reform and the district bureau of finance, the subsidy will be transferred to the accounts of the storage enterprises in accordance with the administrative regulations of the State Treasury centralized payment. For the grain and oil reserves that have not reached the scheduled rotation period but are included in the annual rotation plan, the subsidy for price difference will not be given in the year of rotation. The annual settlement is organized by the district bureau of development and reform.

Article 42: If the storage enterprise completes the grain and oil reserve rotation according to the annual rotation plan and relevant regulations, the grain and oil reserve fee will be paid according to the regulations and standards during the rotation period. If the storage enterprise fails to organize the rotation complying with relevant provisions, or fails to complete the rotation, the grain and oil reserves costs will be deducted accordingly.

Article 43: The management of district-level grain and oil reserves is subject to accounting in accordance with the Regulations on Accounting Treatment of Grain and Oil Business in Implementation of Accounting Standards by Grain Enterprises.

Article 44: After the end of the storage period, the district bureau of development and reform organizes settlement according to the approved bid-winning warehouse-entry price of grain and oil reserve procurement and the warehouse-exit price of bidding-based sales. Losses incurred, if any, will be appropriated by the district treasury for supplementation; the surplus, if any, shall be returned to the district treasury in full. During the period when the grain and oil reserves are undergoing bidding-based sales for warehouse exit and bidding-based purchase for warehouse entry, the reserve costs will be calculated based on the actual quantity of grain and oil reserves in the warehouse.

Chapter IX Supervision and Inspection

Article 45: The management departments of district-level grain and oil reserves supervise and inspect the storage enterprises in accordance with their duties, these Measures, and the management provisions, regulations and rules. The supervision and inspection can be carried out in the form of routine inspection, regular inspection, special inspection, spot check and case-specific investigation.

Article 46: In the process of supervision and inspection, the management departments of district-level grain and oil reserves may perform the following duties and rights:

(1) Entering the storage enterprises to check the storage and production safety of grain and oil reserves;

(2) Learning from relevant entities and personnel about the implementation of grain and oil reserve collection, storage, sales, rotation plan and the command of utilization;

(3) Access to the documents and proof related to the operation and management of grain and oil reserves.

Article 47: No entity or individual may refuse, obstruct or interfere with the supervision and inspection personnel in performing their duties abiding by the law. For any problem found in the inspection, the supervision and inspection personnel should tackle in accordance with these Measures and relevant laws, regulations and rules in time.

Article 48: The district bureau of development and reform is responsible for the annual performance evaluation of the district-level grain and oil reserves. The management of grain and oil reserves is evaluated with reference to the performance evaluation guidelines and evaluation indicator system formulated by the municipal authorities. If a storage enterprise is storing the municipal- and district-level grain and oil reserves, and has passed the municipal annual performance evaluation, it can be exempt from the district-level one.

Article 49: The ADBC Guangdong Branch Business Department supervises the district-level grain and oil reserves loans in accordance with the provisions on closed-off fund management, and regularly checks the inventory.

Chapter X Utilization Management

Article 50: When the district-level grain and oil reserves have to be utilized due to exceptional circumstances such as disaster relief and rescue, the district bureau of development and reform starts the utilization procedure of district-level grain and oil reserves in accordance with relevant provisions of the Nansha District Emergency Plan on Grain.

Article 51: Where the district government need to put the district-level grain and oil reserves into the market to stabilize the grain price, the district development and reform bureau shall take the lead in formulating the implementation plan in which the variety, quantity, price and storage site of the grain and oil reserves are specified. The plan will be implemented with the approval of the district government.

Article 52: Losses incurred in selling district-level grain and oil reserves under the instructions of the district government will be supplemented with appropriation from the district treasury; the surplus, if any, should be returned to the district treasury in full.

Chapter XI Legal Liability

Article 53: If a storage enterprise commits any of the following acts, it will be ordered to make rectification within a time limit by the management department of district-level grain and oil reserves; any illegal gains therefrom will be confiscated according to law; for those suspected of a crime, the case will be transferred to the judiciary authorities.

(1) Failing to store the district-level grain and oil reserves in a special warehouse (tank), have a specially assigned person to keep it, keep a special account, or keep the accounts of district-level grain and oil reserves consistent;

(2) Failing to take effective measures when problems arise in quantity, quality and storage safety of district-level grain and oil reserves, and failing to report any major problems in time or concealing the facts;

(3) Using or misappropriating district-level grain and oil reserves without authorization, or changing the variety and quality of district-level grain and oil reserves, or changing the storage site without proper consent;

(4) Falsely reporting, concealing or refusing to report the quantity and quality of district-level grain and oil reserves;

(5) Refusing to implement or changing without authorization the plans for collection, storage, sale and rotation of district-level grain and oil reserves, and the orders for utilization;

(6) Using the district-level grain and oil reserves or its loan funds to engage in business activities unrelated to the district-level grain and oil reserves, or providing economic guarantee, mortgage or paying off debts with the district-level grain and oil reserves;

(7) Misappropriating and embezzling the funds for procuring district-level grain and oil reserves, or acquiring interest and financial subsidies in violation of relevant provisions on the closed-off fund management;

(8) Refusing, obstructing or interfering with the supervision and inspection personnel of management departments of district level grain and oil reserves and audit institutions in performing their duties abiding by the law.

Article 54: If any staff member of the management departments of district-level grain and oil reserves and relevant functional departments violates these measures, fails to perform their duties of supervision and inspection, fails to instruct the storage enterprises found in violation of these Measures to make correction, abuses their power, practices fraud, neglects their duties, or asks for and accepts bribes, the persons in charge and the persons directly responsible will be punished according to the law; for those suspected of crimes, the case will be transferred to the judiciary authorities.

Chapter XII Supplementary Provisions

Article 55: These measures shall come into force on the date of promulgation and will remain in force for five years.

Form of Disclosure: Active Disclosure