Measures of Bohai Commodity Exchange For Designated Warehouses Management (Provisional)

Transcription

1 Measures of Bohai Commodity Exchange For Designated Warehouses Management (Provisional) Article 1 Subject to the Interim Measure of Tianjin Bohai Commodity Exchange for Trading Market Supervision and Administration, Jin Zheng Fa[2009] No.32 promulgated by Tianjin People s Government, and the Rules of Tianjin Bohai Commodity Exchange for Continuous Spot Trading Management made by Tianjin Bohai Commodity Exchange, henceforth the Exchange, this Measures is enacted for the purpose of enhancing the management of Warehouses that are designated by the Tianjin Bohai Commodity Exchange, regulating delivering activities and ensuring orderly delivering operations. Article 2 The Exchange shall supervise and manage the designated warehouses in accordance with this Measures. The designated warehouses, traders, and their staff must comply with this Measures. Article 3 Designated warehouses are delivery sites designated by the Exchange for physically delivering commodities listed in the e-contracts and for providing warehouse services. Article 4 Rights of designated warehouses are: 1) To collect fees in accordance with the fee items, standards, and methods approved by the Exchange; 2) To offer opinions and make recommendations on the regulations of the delivery business and warehouse management prescribed by the Exchange; 3) To disallow unauthorized persons to handle the procedures for entry of goods. 4) To refuse to accept commodities that fail to meet the requirements of the Exchange; 5) To have other privileges and rights prescribed by the Detailed Delivery Rules and the Designated Warehouse Agreement. Article 5 Obligations of designated warehouses are: 1) To abide by the detailed delivery rules and other rules of the Exchange; to conscientiously produce the daily storage report for the species, specializations, origins, and weights of commodities, and to provide warehouse storage statistics and capacity conditions in an accurate and

2 timely manner; 2) To improve the warehouse management system; to have an appointed person who is responsible for the delivery business; and to actively assist the Exchange and its traders with the arrangement of the commodity's transportation, entry, examination and verification, storage, movement within the warehouse, departure and other related matters; 3) Under the same conditions, to give entry priority to commodities that belong to the Exchange s traders; 4) To ensure the actual commodities comply with the description in the Warehouse Receipt issued, and to be liable for the authenticity, accuracy, and validity of the Warehouse Receipt it issues; 5) To carefully introduce applicable management rules of the warehouse to the traders of the Exchange, including but not limited to the longest period of custody of goods, fees for entry and departure, transportation, fire fighting measures, etc; 6) To take care of commodities in storage as required by regulations, and ensure the safety of the commodities; 7) To keep the business secrets related to the commodities of the Exchange s traders; 8) If the holder of the Registered Warehouse Receipt cannot or can only partially exercise the rights of the Registered Warehouse Receipt due to the designated warehouse s negligence, the designated warehouse shall be liable for all costs incurred; 9) It shall be reported in a timely manner to the Exchange if alternation occurs in terms of the legal representative, registered capital, shareholders or share structure, yards of warehouse and authorization staff, or any litigation or arbitration matters regarding the safety of delivery commodities; 10) The original documents (warehouse receipts, bill of lading, and etc) shall be kept for at least one year; 11) Other obligations stipulated in the detailed delivery rules of the Exchange and the Agreement of Designated Warehouses. Article 6 The following activities of designated warehouses are strictly prohibited: 1) to be involved in the trading activities of listed commodities in the Exchange, to which it provides warehouse services; 2) to issue fake Warehouse Receipts; 3) to issue Warehouse Receipts without completing the inspection required; 4) to accept or to deliver the wrong commodities; 5) to cause obsolescence or loss of the commodities stored due to improper storage;

3 6) to cause damage to the packages or the commodities during delivering, loading and unloading, or stacking; 7) to deliberately make procedures difficult in order to cause buyers or sellers to default; 8) to violate the rules of the delivery business of the Exchange, such as restrict or deliberately delay the entry or departure of the delivery commodities; 9) to charge fees that are not in accordance with the Exchange s rules for delivery; 10) to use or exchange commodities for delivery without authorization; 11) to steal and sell commodities for delivery; 12) to purchase goods on behalf of traders in order to apply for the Registered Warehouse Receipt. Article 7 The following shall constitute the minimum requirements and conditions for applying for a designated warehouse: 1) to obtain a business license issued by the Department of Industry and Commerce Administration and corresponding operation qualifications; 2) to be in a healthy financial condition and strongly capable of countering risks; 3) to be in possession of a storage yard and storehouse of certain scale, qualified to store the Exchange s listed commodities, equipped with adequate facilities and standardized measuring systems; 4) to have sound transporting conditions; 5) to be strongly capable of transit, receiving, dispatch, load, and unload; 6) to have a rigorous and well-established receiving and dispatching system and storage management system; 7) to have chief warehouse managers with at least five years warehouse management experience and a professionally-trained management team; 8) to acknowledge the Exchange s rules and regulations such as the Trading Rules, Delivery Rules, etc; 9) Other conditions required by the Exchange. Article 8 The following materials shall be provided in order to apply for a designated warehouse: 1) a designated warehouse application form (with an official seal) 2) a copy of the business license with the legal representative (with an official seal) 3) copies of the license for the warehouse land usage issued to the applicant organization and other relevant documents; 4) a Letter of Approval for applying for being designated warehouse issued

4 by the applicant s parent organization or by its Board of Directors, and a Letter of Warrant issued by a relevant organization; 5) a description of and a short introduction to the warehouse s managing system; 6) other documents required by the Exchange. Article 9 Evaluating and approving procedures for appointing a designated warehouse: 1) The Exchange shall pre-examine the application based on the materials requested in Article 8; 2) The Exchange shall send staff to the applicant's organization to make a field inspection and evaluation in accordance with the results of the pre-examination; 3) Prior to starting physical delivery business related to the relevant commodity contract, the designated warehouse shall draw up corresponding operating rules and regulations in accordance with these Measures and have them approved by the Exchange; 4) Based on the results of field inspections and evaluations, the Exchange shall select the best among the applicants as the designated warehouse, and sign the Designated Warehouse Agreement with the selected warehouse; 5) The Exchange issues the Certificate of Designated Warehouse of Tianjin Bohai Commodity Exchange; 6) The Exchange transfers to the warehouse all seals needed for issuing Registered Warehouse Receipts and filed for records by the Exchange; 7) The designated warehouse shall appoint a special person to be in charge of the delivery business and provide the Exchange with the person s Letter of Authorization and his/her signature (original) for records; 8) The managing staff of the designated warehouse shall attend the delivery business training program offered by the Exchange; 9) The designated warehouse will be announced to the public on the official website of the Exchange ( Article 10 A designated warehouse that wishes to terminate its privilege of being a delivery warehouse shall submit the Application for Terminating the Privilege of Being a Designated Warehouse to the Exchange for evaluation and approval. Article 11 The designated warehouse shall give priority to commodities for delivery while receiving and dispatching goods. The designated warehouse shall follow the principles of first arrived

5 goods first in, first applied goods first in, first sold goods first in to receive and examine goods from traders. Article 12 Commodity Entry Procedures 1) Commodities Receiving. The designated warehouse shall accept arriving goods with clearly defined procedures and responsibilities. If the following situations occur: the seal is broken; the cover is in disorder; the commodities do not conform to the certificates; the quantity is in shortage; or the goods or packages have been damaged, the designated warehouse shall ask for the relevant records from corresponding responsible departments, send to the owner for further handling, and properly make the entry record. 2) Commodities Examination and Verification. The exterior quality and quantity of commodities must be examined following certain processes and procedures to verify whether the products conform to the certificates and whether the commodities are in compliance with the delivery rules of the Exchange. Items to be checked by designated warehouses are: names of commodities, brand, specifications, quantity, required documents for entry, package and apparent situation of the commodities (If it is hard to check the apparent situation or it is subscribed in the rules that a check-in sample shall be conducted, the packages shall be opened.) 3) Commodities Entry and Issuing the Warehouse Receipts. The commodities can only be allowed to start the entry procedure after passing the inspection (or resolving concerns raised during the stage of examination and verification),i.e. signing the account, making cards, setting up commodity files, and issuing Warehouse Receipts upon the request of owners according to the specific rules of the Exchange. Article 13 The designated warehouses shall stow, preserve, and maintain commodities in proper storage sites to ensure the storage of goods in excellent condition, taking into consideration the characters and features of the commodities, as well as the local natural environment. Article 14 The designated warehouse may adopt the methods of send, deliver, and consign to dispatch commodities according to the owner s requirements. The commodities can only be dispatched after the Commodity Departure Voucher is checked and verified; the designated warehouse shall close the account, sort out the receipts or vouchers, clean the yards and organize

6 the stack after the dispatch of goods has completed; Transportation plans shall be submitted in advance to the transportation department if the delivery of goods needs to be arranged by the warehouse; the Registered Warehouse Receipt and Bill of lading shall be withdrawn and be sealed to indicate delivery complete and preserved after matching with the stub kept by the Warehouse. Article 15 When transferring the title of the commodity, the designated warehouse shall keep a good record and properly register and close the account. Article 16 Designated warehouses shall set up separate accounts to manage the commodities for delivery. Article 17 Designated warehouses shall appoint an officer in charge of the delivery business and a special staff member to manage the commodities for delivery. Article 18 The Exchange has implemented self-inspection, random inspection, and annual inspection systems to the designated warehouses. 1) Self-inspection System. Each designated warehouse shall choose one or several operational items to inspect, and keep a good record of them in accordance with these Measures, the Detailed Rules of Delivery, and the actual situation of the warehouse. 2) Random Inspection by the Exchange. According to information the Exchange knows of or feedback from traders, the Exchange may randomly choose the designated warehouse to inspect one or several operational items and make detailed records, to examine situations of the commodity delivery and the commodity storage in terms of its compliance with the Exchange s rules. 3) Annual Inspection. The Exchange shall make the appraisal standards and do an annual inspection on the operation of the designated warehouse. For those warehouses failing to meet the requirements, the Exchange may reduce their approved capacities, suspend their delivery business, or even withdraw their qualifications. Article 19 The items for the Exchange to inspect include storage facilities, the capacity and appearance of the warehouse, business capabilities, business performance, accounting and booking management, the satisfaction level of traders, and other items the Exchange deems as necessary to review.

7 Article 20 A designated warehouse that surrenders its privilege or is expelled shall attend to the following matters: 1) all commodities corresponding to the Registered Warehouse Receipts shall be dispatched out of the warehouse; 2) all liabilities and debts with the Exchange shall be settled. Article 21 If the holder of the Registered Warehouse Receipt cannot or can only partially exercise the rights of the Registered Warehouse Receipt due to the designated warehouse s negligence, the designated warehouse shall be liable for all costs incurred; Article 22 Any violation to this Measures shall be dealt with in accordance with pertinent regulations prescribed in the Disciplinary Measures Against Violations on Tianjin Bohai Commodity Exchange. Article 23 The matters that are not covered by this Measures shall be executed in accordance with other relevant agreements signed between the Exchange and designated warehouses. Article 24 The interpretative rights of this Measures belong to the Exchange in accordance with Interim Measures of Bohai Commodity Exchange of Tianjin for Trading Market Supervision and Management, Jin Zheng Fa [2009] No. 32. Article 25 This Measures shall be in effect as of the date when they are announced. Tianjin Bohai Commodity Exchange December 15, 2009