Xinhua News Agency, Beijing, April 7

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 for the first time according to the Decision of the State Council on Abolishing and Amending Part of Administrative Regulations on July 18, 2013, revised for the second time according to the Decision of the State Council on Amending Part of Administrative Regulations on February 6, 2016, revised for the third time according to Decree No. 740 of the State Council of the People's Republic of China on February 15, 2021)

general provisions

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

Article 2 These Regulations shall be observed when engaging in the purchase, sale, storage, transportation, processing, import and export and other business activities of grain within the territory of the People's Republic of China (hereinafter referred to as grain business activities).

The term "grain" as mentioned in the preceding paragraph refers to wheat, rice, corn, miscellaneous grains and finished grains.

Article 3 The State encourages market entities with various forms of ownership to engage in grain business activities and promote fair competition. Grain business activities conducted according to law shall be protected by the laws of the State. It is strictly prohibited to obstruct the free circulation of grain by illegal means.

State owned grain enterprises should transform their operating mechanisms, improve their market competitiveness, play a major role in grain circulation, and take the lead in implementing national grain policies.

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 and control the grain market.

Article 5 Food business activities shall follow the principles of voluntariness, fairness and good faith, shall not harm the legitimate rights and interests of food producers and consumers, shall not harm the interests of the State and the public interest, and shall take effective measures to prevent and reduce the loss and waste of food.

Article 6 The development and reform department of the State Council and the national grain and reserve administrative department shall be responsible for the total balance of grain, macro-control, structural adjustment of important grain varieties, and the medium and long-term planning of grain circulation throughout the country. The State grain and reserve administrative department is responsible for the administrative management and industry guidance of grain circulation, and supervises the implementation of laws, regulations, policies and various rules and regulations related to grain circulation.

The market supervision and administration, health and other departments under the State Council shall be responsible for the work related to grain circulation within their respective functions and responsibilities.

Article 7 Provinces, autonomous regions, and municipalities directly under the Central Government should implement the principle of sharing the responsibility of the Party and the government for food security, improve the responsibility system of provincial governors for food security, assume the main responsibility for ensuring food security in their respective administrative regions, and be responsible for the balance of the total amount of food in their respective administrative regions and the management of local grain reserves under the state's macro-control.

The grain and reserve administrative departments of the local people's governments at or above the county level shall be responsible for the administrative management and industry guidance of grain circulation in their respective administrative regions; The market supervision and administration, health and other departments of the local people's governments at or above the county level shall be responsible for the work related to grain circulation within the scope of their respective duties.

　 Chapter II Grain Management

Article 8 Grain dealers refer to natural persons, legal persons and unincorporated organizations engaged in grain purchase, sale, storage, transportation, processing, import and export and other business activities.

Article 9 Business operators engaged in grain purchase (hereinafter referred to as grain purchasers) shall have the ability to match the variety and quantity of grain they purchase.

Enterprises engaged in grain purchasing (hereinafter referred to as grain purchasing enterprises) shall file information such as the name, address, person in charge and storage facilities of the enterprise with the grain and reserve administrative department of the people's government at the county level in the place of purchase. If the content of the record changes, the record shall be changed in a timely manner.

The grain and reserve administrative departments of the local people's governments at or above the county level shall strengthen the management and services of grain purchase and standardize grain purchase activities. Specific administrative measures shall be formulated by the people's governments of provinces, autonomous regions and municipalities directly under the Central Government.

Article 10 When purchasing grain, grain purchasers shall inform the sellers or publicize the varieties, quality standards and purchase prices of grain at the purchase sites.

Article 11 When purchasing grain, grain purchasers shall comply with the national grain quality standards and price the grain according to its quality, and shall not harm the interests of farmers and other grain producers; The grain seller shall be paid in time and shall not be in arrears; It shall not accept the entrustment of any organization or individual to withhold or pay any taxes, fees and other funds.

When purchasing grain, grain purchasers shall conduct quality and safety inspection in accordance with the relevant provisions of the State to ensure the quality and safety of grain. The food that does not meet the food safety standards shall be stored separately for non edible purposes.

Article 12 Grain purchasing enterprises shall regularly report the quantity of grain purchased and other relevant information to the grain and reserve administrative departments of the people's governments at the county level in the places where the grain is purchased.

When purchasing grain across provinces, the grain and reserve administrative departments of the people's governments at the county level in the places where the grain purchasing enterprises are located shall regularly report the quantity of grain purchased and other relevant information.

Article 13 The storage facilities used by grain purchasers and enterprises engaged in grain storage (hereinafter referred to as grain storage enterprises) shall meet the relevant standards and technical specifications for grain storage as well as the requirements of laws and regulations on production safety, have storage conditions that are suitable for the variety, scale and cycle of grain storage, and reduce grain storage losses.

Grain shall not be mixed with toxic and harmful substances that may pollute grain, and chemical agents prohibited by the State or used in excess shall not be used for grain storage.

Article 14 The transportation of grain shall strictly comply with the technical specifications of the State for grain transportation to reduce the loss of grain transportation. No contaminated means of transport or packaging materials may be used to transport grain, and no grain may be mixed with toxic and harmful substances for transportation.

Article 15 Anyone engaged in food production of grain shall meet the conditions and requirements specified in food safety laws, regulations and standards, and be responsible for the safety of the food produced.

The State encourages grain operators to increase the output rate of finished grain and the comprehensive utilization rate of by-products.

Article 16 The sales of grain shall strictly comply with the relevant standards of the State on grain quality, and shall not be short in weight, adulterated, fake, shoddy, hoarding, monopolizing or manipulating grain prices or bullying the market.

Article 17 During the period of grain storage, the quality of grain shall be inspected regularly. When the quality of grain reaches a level that is not suitable for storage, it shall be taken out of the warehouse in time.

Establish a quality and safety inspection system for grain sales ex warehouse. The grain stored within the normal storage period shall be subject to quality and safety inspection by the grain storage enterprise itself or by the grain quality and safety inspection agency entrusted by it before it leaves the warehouse; The grain that has exceeded the normal storage life, the grain that has used grain storage agents during the storage period but has not reached the safety interval, and the grain with abnormal color and smell shall be subject to quality safety inspection by the grain quality and safety inspection agency before leaving the warehouse. Grain without quality and safety inspection shall not be sold out of the warehouse.

Article 18 Grain purchasers and grain storage enterprises shall not sell the following grains out of the warehouse for food purposes:

（1） The content of mycotoxins, pesticide residues, heavy metals and other pollutants and other substances harmful to human health exceeds the limit of food safety standards;

（2） Mildew or abnormal color and smell;

（3） The use of grain storage agents during storage does not meet the safety interval;

（4） Contaminated by packaging materials, containers, means of transport, etc;

（5） Other laws, regulations or relevant provisions of the State clearly prohibit the sale of such products for edible purposes.

Article 19 Business operators above the designated size engaged in the purchase, processing and sale of grain shall, in accordance with the provisions of the people's government of the province, autonomous region or municipality directly under the Central Government where they are located, implement the grain inventory under specific circumstances.

Article 20 Grain business operators engaged in policy oriented grain business activities shall strictly abide by the relevant provisions of the State and shall not commit the following acts:

（1） Falsely reporting the quantity of grain collection and storage;

（2） By using Chen Dingxin, shoddy goods as high-quality goods, low income and high turnover, false purchase and sale, false rotation, illegal reselling, etc., to obtain food price differentials and financial subsidies and defraud credit funds;

（3） Misappropriation, misappropriation and withholding of financial subsidies and credit funds;

（4） Use policy grain as a guarantee for debts or pay off debts;

（5） Making use of policy grain to conduct other commercial operations except for the policy tasks entrusted by the government;

（6） When policy grain is delivered out of the warehouse, adulterate fake, shoddy, exchange subject matter, refuse to execute the delivery order or obstruct the delivery;

（7） Purchase policy oriented grain with the purpose limited by the state, resell it in violation of regulations or dispose of it in violation of the specified purpose;

（8） Unauthorized use of policy grain;

（9） Other acts in violation of the provisions of the State on policy oriented grain management.

Article 21 State owned grain enterprises shall actively purchase grain, do a good job in the purchase and sale of policy oriented grain, and obey and serve the national macro-control.

Article 22 Banks shall, in accordance with the relevant provisions of the State, timely provide loans for grain purchasers who meet the conditions for loans.

The Agricultural Development Bank of China shall guarantee the credit fund needs of the central and local grain reserves and other policy oriented grains, and provide credit fund support to state-owned grain enterprises, large-scale grain industrialization leading enterprises and other grain enterprises according to their risk tolerance.

The funds for policy oriented grain purchase shall be earmarked and operated in a closed manner.

Article 23 All operators engaged in the purchase, sale, storage and processing of grain, as well as feed and industrial grain enterprises, shall establish standing books for grain operation and submit basic data and relevant information on grain purchase, sale and storage to the grain and reserve administrative department of the local people's government at the county level. The grain operation account shall be kept for at least 3 years. If the basic data and relevant information submitted by grain operators involve trade secrets, the grain and reserve administrative departments shall be obliged to keep them confidential.

The national grain circulation statistics shall be implemented in accordance with the relevant provisions of the Statistics Law of the People's Republic of China.

Article 24 The grain and reserve administrative departments of the people's governments at or above the county level shall establish credit files for grain dealers, record the results of daily supervision and inspection, and the investigation and punishment of illegal acts, and publicize them to the public according to law.

The grain industry associations and intermediary organizations should strengthen self-discipline in the industry and play a supervisory and coordinating role in maintaining the order of the grain market.

Article 25 The State encourages and supports the development, popularization and application of advanced grain storage, transportation, processing and information technology, and carries out publicity and education on cherishing and saving grain.

The grain and reserve administrative departments of the people's governments at or above the county level should strengthen their guidance and services to grain operators and guide them to save grain and reduce grain losses and losses.

Chapter III Macro regulation

Article 26 The State adopts various economic means such as policy oriented grain purchase and sale, grain import and export, and necessary administrative means to strengthen the regulation of the grain market, so as to maintain the basic balance between the total supply and demand of grain throughout the country and the basic stability of the market.

Article 27 The State implements a system of grain reserves at the central and local levels. Grain reserves are used to adjust grain supply and demand, stabilize the grain market, and respond to major natural disasters or other emergencies.

In principle, the purchase and sale of policy oriented grain shall be carried out openly through a standardized grain trading center, or in other ways specified by the state.

Article 28 The State Council and the local people's governments shall establish and improve the system of grain risk funds. The grain risk fund is mainly used to support grain reserves and stabilize the grain market.

The financial departments of the State Council and the local people's governments shall be responsible for the supervision and management of the food risk funds and ensure that the funds are earmarked for specific purposes.

Article 29 In order to ensure market supply and protect the interests of grain farmers, the State Council may, when necessary, decide to implement policy based collection and storage of key grain varieties in the main grain producing areas according to the food security situation and in combination with the financial situation.

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 take price intervention measures in accordance with the provisions of the Price Law of the People's Republic of China.

Article 30 The development and reform department of the State Council and the national grain and reserve administrative department, together with the agricultural and rural, statistics, market supervision and administration departments of the State Council, shall be responsible for monitoring and early warning analysis of the situation of supply and demand in the grain market, improving the monitoring and early warning system, improving the system of spot check of grain supply and demand, and releasing information on grain production, consumption, price, quality, etc.

Article 31 The State encourages the main grain producing and selling areas to establish stable production and marketing relationships in various forms, encourages the cultivation of grain enterprises integrating production, purchase, storage, processing and sales, supports the construction of grain production, processing and logistics bases or parks, strengthens the protection of government grain and oil storage and logistics facilities, and encourages the development of order farming. When implementing policy based storage, the State gives necessary economic preferences and gives priority to food transportation.

Article 32 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 33 The State establishes a food emergency system for emergencies. The development and reform department of the State Council and the national grain and reserve administrative department shall, together with the relevant departments of the State Council, formulate a national grain emergency plan 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, in accordance with the actual conditions of their respective regions, formulate food emergency plans for their respective administrative regions.

Article 34 To launch the national grain emergency plan, the development and reform department of the State Council and the national grain and reserve administrative department shall put forward suggestions and submit them to the State Council for approval before implementation.

To launch the grain emergency plan of a province, autonomous region or municipality directly under the Central Government, the development and reform department and the grain and reserve administrative department of the province, autonomous region or municipality directly under the Central Government shall make suggestions, report to the people's government at the same level for decision, and report to the State Council.

The formulation and launching of food emergency plans of the people's governments of cities divided into districts and at the county level shall be decided by the people's governments of provinces, autonomous regions and municipalities directly under the Central Government.

Article 35 After the launch of the grain emergency plan, grain operators must undertake emergency tasks according to the requirements of the State, obey the unified arrangement and dispatch of the State, and ensure the need for emergency response.

Article 36 The State encourages the development of the grain industry economy, improves the supply level of high-quality grain, and encourages leading enterprises in grain industrialization to provide safe and high-quality grain products.

Chapter IV Supervision and Inspection

Article 37 The State establishes and improves a monitoring system for the quality and safety risks of grain circulation. The departments of health, market supervision and administration under the State Council, as well as the state grain and reserve administration, organize and implement the national grain circulation quality and safety risk monitoring according to their respective responsibilities; The departments of health, market supervision and administration, and grain and reserve administration of the people's governments of provinces, autonomous regions, and municipalities directly under the Central Government shall, in accordance with their respective duties, organize the implementation of risk monitoring on the quality and safety of grain circulation in their respective administrative regions.

Article 38 The grain and reserve administrative departments shall, in accordance with these Regulations, supervise and inspect the grain dealers' activities of grain purchase, storage and transportation and the purchase and sale of policy oriented grains, as well as the implementation of the national grain circulation statistical system.

In the process of supervision and inspection, the grain and reserve administrative departments may enter the premises of grain operators and consult relevant materials and vouchers; Check the quantity, quality and storage safety of grain; Check whether grain storage facilities and equipment conform to relevant standards and technical specifications; Investigate with relevant units and personnel for relevant information; Seize and detain the grain illegally purchased or not conforming to the national food quality and safety standards, and use the tools, equipment and relevant account books for illegal operation or pollution; Seal up places illegally engaged in grain business activities.

Article 39 The market supervision and administration department shall, in accordance with the provisions of relevant laws and regulations, supervise and inspect the acts of disrupting market order, illegal transactions and illegal pricing in grain business activities.

Article 40 The local people's governments at or above the county level shall strengthen the monitoring of grain pollution in their administrative regions, establish and improve a long-term mechanism for the purchase and disposal of contaminated grain, and take timely measures to deal with regional grain pollution when it is discovered.

Measures for the disposal of contaminated grain shall be formulated by the State grain and reserve administrative department in conjunction with the relevant departments under the State Council.

Article 41 Any unit or individual shall have the right to report to the relevant departments any act in violation of the provisions of these Regulations. The relevant departments shall keep secrets for the informants and deal with them in a timely manner according to law.

　　 Chapter V Legal Liability

Article 42 If the grain and reserve administrative departments and other relevant departments, in violation of the provisions of these Regulations, fail to perform their duties of grain circulation management and supervision according to law, the responsible leaders and directly responsible persons shall be punished according to law.

Article 43 If a grain purchasing enterprise fails to record in accordance with the provisions or provides false record information, the grain and reserve administrative department shall order it to make corrections and give a warning; Those who refuse to make corrections shall be fined not less than 20000 yuan but not more than 50000 yuan.

Article 44 If grain purchasers fail to inform and publicize the purchase price of grain or purchase grain at a lower level or price, monopolize or manipulate prices and other illegal price behaviors, the market supervision and administration department shall punish them in accordance with the relevant provisions of the Price Law of the People's Republic of China and the Anti monopoly Law of the People's Republic of China.

Article 45 Under any of the following circumstances, the administrative department of grain and reserves shall order a correction, give a warning and may also impose a fine of not more than 200000 yuan; If the circumstances are serious, a fine of not less than 200000 yuan but not more than 500000 yuan shall be imposed:

（1） The grain purchasers failed to implement the national grain quality standards;

（2） The grain purchasers failed to pay the grain sellers in time;

（3） Grain purchasers withhold and pay taxes, fees and other funds in violation of the provisions of these Regulations;

（4） Grain purchasers who purchase grain fail to conduct quality and safety inspection in accordance with the relevant provisions of the State, or do not store grain that does not meet the food safety standards separately as non edible purposes;

（5） Grain business operators engaged in grain purchase, sale, storage and processing and feed and industrial grain enterprises have not established grain business accounts, or have not submitted basic grain data and relevant information as required;

（6） The grain storage enterprise failed to conduct the quality and safety inspection of grain sales ex warehouse in accordance with the regulations.

Article 46 If grain purchasers or grain storage enterprises fail to use storage facilities and means of transport in accordance with the provisions of these Regulations, the grain and reserve administrative departments shall, in accordance with their duties, order them to make corrections and give them a warning; Contaminated grain shall not be sold or processed illegally.

Article 47 If grain purchasers or grain storage enterprises sell the following grains out of the warehouse for food purposes, the grain and reserve administrative departments shall confiscate their illegal gains; If the value of grain illegally sold out of the warehouse is less than 10000 yuan, a fine of more than 10000 yuan but less than 50000 yuan shall be imposed; if the value of grain illegally sold out of the warehouse is more than 10000 yuan, a fine of more than one time but less than five times the value of grain shall be imposed:

（1） The content of mycotoxins, pesticide residues, heavy metals and other pollutants and other substances harmful to human health exceeds the limit of food safety standards;

（2） Mildew or abnormal color and smell;

（3） The use of grain storage agents during storage does not meet the safety interval;

（4） Contaminated by packaging materials, containers, means of transport, etc;

（5） Other laws, regulations or relevant provisions of the State clearly prohibit the sale of such products for edible purposes.

Article 48 Those engaged in food production that do not meet the conditions and requirements of food safety laws, regulations and standards shall be punished by the market supervision and administration department in accordance with the Food Safety Law of the People's Republic of China, the Regulations for the Implementation of the Food Safety Law of the People's Republic of China and other relevant provisions.

Article 49 Anyone who engages in policy oriented grain business activities and is under any of the following circumstances shall be ordered by the grain and reserve administrative department to make corrections, given a warning, confiscated of his illegal gains, and concurrently fined not less than 500000 yuan but not more than 2 million yuan; If the circumstances are serious, a fine of not less than 2 million yuan but not more than 5 million yuan shall be imposed:

（1） Falsely reporting the quantity of grain collection and storage;

（2） By using Chen Dingxin, shoddy goods as high-quality goods, low income and high turnover, false purchase and sale, false rotation, illegal reselling, etc., to obtain food price differentials and financial subsidies and defraud credit funds;

（3） Misappropriation, misappropriation and withholding of financial subsidies and credit funds;

（4） Use policy grain as a guarantee for debts or pay off debts;

（5） Making use of policy grain to conduct other commercial operations except for the policy tasks entrusted by the government;

（6） When policy grain is delivered out of the warehouse, adulterate fake, shoddy, exchange subject matter, refuse to execute the delivery order or obstruct the delivery;

（7） Purchase policy oriented grain with the purpose limited by the state, resell it in violation of regulations or dispose of it in violation of the specified purpose;

（8） Unauthorized use of policy grain;

（9） Other acts in violation of the provisions of the State on policy oriented grain management.

After the launch of the grain emergency plan, those who fail to undertake emergency tasks as required by the State and obey the unified arrangement and dispatch of the State shall be punished in accordance with the provisions of the preceding paragraph.

Article 50 The market supervision and administration department shall, in accordance with the provisions of relevant laws and regulations, impose penalties on such acts as disrupting market order and illegal transactions in grain business activities.

Article 51 If an enterprise engaged in grain trading activities violates the provisions of these Regulations and the circumstances are serious, its legal representative, main responsible person, directly responsible person in charge and other directly responsible persons shall be fined not less than one time but not more than 10 times the income they obtained from the enterprise in the previous year.

Article 52 Whoever, in violation of the provisions of these Regulations, obstructs the free circulation of grain shall be punished in accordance with the Provisions of the State Council on the Prohibition of Regional Blockade in Market Economic Activities.

Article 53 Those who violate the provisions of these Regulations and constitute acts violating the administration of public security shall be given administrative penalties for public security by the public security organ according to law; If a crime is constituted, criminal responsibility shall be investigated according to law.

Chapter VI Supplementary Provisions

Article 54 The meanings of the following terms in these Regulations are:

Grain purchase refers to the activities of grain growers, other grain producers, or grain brokers, farmers' professional cooperatives, etc. to purchase grain in batches.

Grain processing refers to the activity of converting raw grains into semi-finished grains, finished grains and other edible or non edible products through processing.

Policy grain refers to the grain that the government designates or entrusts grain operators to purchase, store, process and sell, and provides policy support in finance and finance, including but not limited to government grain reserves.

Grain brokers refer to operators who directly purchase grain from grain farmers, other grain producers, and farmers' professional cooperatives in batches, with individuals or families as the main business entities.

Technical specifications refer to the supplementary technical requirements formulated by the national grain and reserve administrative department according to the needs of supervision and management, which have not yet formulated national standards and industrial standards.

Article 55 The purchase, sale, storage, transportation, processing, import and export and other business activities of soybeans, oilseeds and edible vegetable oil shall be governed by the provisions of these Regulations except the second paragraph of Article 9.

The administration of grain import and export shall be carried out in accordance with the provisions of relevant laws and regulations.

Article 56 These Regulations shall come into force as of April 15, 2021.