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Measures of Guangzhou Municipality for the Implementation of Municipal Important Commodity Reserves
(Issued on September 19, 2012 in accordance with Decree No. 87 of the People's Government of Guangzhou Municipality, amended for the first time on September 30, 2015 in accordance with Decree No. 132 of the People's Government of Guangzhou Municipality Decision of the People's Government of Guangzhou Municipality on Amending 93 Sets of Government Rules Including the "Rules of Guangzhou Municipality for Expanding the Regulatory Powers of Districts and County-Level Cities" as a Result of Administrative Division Adjustment, amended for the second time on November 14, 2019 in accordance with Decree No. 168 of the People's Government of Guangzhou Municipality Decision of the People's Government of Guangzhou Municipality on Abolishing Some Government Rules and Regulations, and amended for the third time on April 29, 2024 in accordance with Decree No. 209 of the People's Government of Guangzhou Municipality)
Article 1 These Measures are formulated in accordance with relevant laws and regulations, on the basis of the actual conditions of this Municipality and with a view to strengthening the reserve of municipal important commodities in this Municipality, ensuring the authenticity of the quantity, qualified quality, safe storage and standardized management of municipal important commodity reserves, improving the ability to respond to emergencies and maintaining market security and stability.
Article 2 These Measures shall apply to the activities concerning the management of and supervision over municipal important commodity reserves in this Municipality.
Article 3 The term "municipal important commodities" herein refers to the materials reserved by the municipal people's government for implementing market regulation and responding to emergencies, including grains, edible oils, pork, sugar, salt, fertilizers, pesticides, pharmaceutical products and other important commodities determined by the municipal people's government.
The term "municipal important commodity reserves" herein includes the preparation of reserve plans, determination of enterprises undertaking reserve tasks, procurement, storage, rotation, utilization and other links of municipal important commodities.
Article 4 The municipal development and reform authority shall be responsible for the management of and supervision over municipal important commodity reserves, and shall be responsible for organizing the implementation of these Measures.
The municipal finance authority shall be responsible for the costs of municipal important commodity reserves, allocating funds for municipal important commodity reserves and supervising the use of funds in accordance with relevant financial regulations and budgets.
The municipal health authority shall propose a list of pharmaceutical product reserves and adjustment suggestions, and assist in managing other related matters ex officio.
The relevant municipal authorities in charge of industry and information technology, market regulation, agriculture and rural affairs and commerce shall fulfill their respective tasks to assist in the preparation for municipal important commodity reserves.
Article 5 The municipal development and reform authority shall, in conjunction with relevant authorities and in accordance with relevant national and provincial regulations, comprehensively consider such factors as the overall development needs, resource status, supply risks and economic risks of this Municipality when preparing the plan for municipal important commodity reserves, which shall not be implemented unless approved by the municipal people's government.
The plan for municipal important commodity reserves shall specify the type, quantity, reserve cycle, method and other contents of the reserves.
The approved plan for municipal important commodity reserves may not be adjusted without authorization. When it is necessary to adjust the reserve plan due to significant changes in reserve cycles, emergency needs, and the like, the municipal development and reform authority shall, in conjunction with relevant authorities, propose adjustment suggestions and submit them to the municipal people's government for approval before implementation.
Article 6 Municipal important commodities are divided into seasonal reserve commodities and perennial reserve commodities.
The planned reserve quantity of seasonal reserve commodities such as fertilizers shall be determined on a seasonal basis as per the principles of facilitating stable market supply and maintaining prices relatively stable. The planned reserve quantity of such perennial reserve commodities as grain, edible oil, pork, sugar, salt, pesticides and pharmaceutical products that shall remain stable all year round.
The quality standards for municipal important commodities shall be implemented in accordance with relevant national and provincial regulations.
Article 7 Enterprises undertaking the municipal important commodity reserve tasks shall be determined through government procurement, and entrusted reserve contracts shall be concluded to specify such contents as the reserve period, warehouse location, varieties, quantities, quality requirements, rotation, use, costs and liabilities for breach of contract.
Public bidding shall serve as the main procurement method for reserve entrustment, except as otherwise provided for by laws and regulations.
Enterprises undertaking reserve tasks shall be equipped with corresponding warehousing facilities and storage capabilities for the reserved commodities, and meet other conditions stipulated by laws and regulations.
Article 8 Enterprises undertaking reserve tasks shall organize the procurement of municipal important commodities in accordance with the reserve plan and entrusted reserve contracts.
Enterprises undertaking reserve tasks shall conduct inspections before the warehouse entry of municipal important commodities to ensure that their quantity and quality meet the requirements, and provide the warehouse entry information to the municipal development and reform authority.
Article 9 Enterprises undertaking reserve tasks shall implement designated management of municipal important commodities at special warehouses, special storage yards and special storage tanks, and hang signs at the entrances of the warehouses indicating the variety, quantity and entry time of the stored municipal important commodities.
Enterprises undertaking reserve tasks shall create specific accounts to record the warehouse entry and exit time, variety, quantity and rotation of the stored municipal important commodities, ensuring that the commodities coincide with the account records.
Article 10 An enterprise undertaking reserve tasks shall be the No. 1 entity responsible for the safe storage and production of municipal important commodities, and shall comply with the provisions of laws, rules and regulations, implement national standards and technical specifications, establish mature management systems and emergency plans and be equipped with necessary safety protection facilities.
During the storage period of municipal important commodities, the enterprises undertaking reserve tasks shall conduct regular inspections of the storage and management situation as well as regular inventory verification and quality inspections; any problems found in terms of the quantity, quality and storage safety of the municipal important commodities, if any, shall be handled immediately, and the handling information shall be reported to the municipal development and reform authority as required.
Article 11 Enterprises undertaking reserve tasks shall create reserve archives for municipal important commodities, and if possible, may establish an information system to improve the automatic and intelligent reserved commodities management level.
Article 12 The municipal development and reform authority shall, in conjunction with the enterprises undertaking reserve tasks, formulate an annual rotation plan for municipal important commodities, specifying the rotation quantity, time arrangement and other related matters.
When implementing the annual rotation plan, enterprises undertaking reserve tasks may combine municipal important commodities with self-operated commodities for rotation and updating, except as otherwise stipulated by the State or Guangdong Province.
Article 13 During the rotation period of municipal important commodities, the inventory of commodities reserved shall comply with the following provisions:
(1)The minimum inventory of pork, sugar, salt, fertilizers and pesticides shall not be less than 70% of the planned quantity, and the replenishment period after ex-warehouse due to rotation shall be no more than 1 month;
(2)The minimum inventory of pharmaceutical products shall not be less than 70% of the planned quantity, and the replenishment period after ex-warehouse due to rotation shall be no more than 2 months;
(3)The minimum inventory of raw grains and finished grains shall not be less than 75% and 90% of the planned quantity respectively, and the replenishment period after ex-warehouse due to rotation shall be no more than 3 months.
In addition to the provisions in the preceding paragraph, the inventory of municipal important commodities shall not be lower than the planned quantity.
Article 14 The right to use municipal important commodities reserved shall be vested in the municipal people's government. Without the consent of the municipal people's government, no entity or individual may use the reserved commodities.
Article 15 In any of the following cases where it is necessary to use municipal important commodities reserved, the municipal development and reform authority shall, in conjunction with relevant authorities, propose a utilization plan, and submit it to the municipal people's government for approval before implementation:
(1)Major natural disasters, accidents, public health events or social security emergencies;
(2)Serious demand-supply imbalance in the market or abnormal fluctuation in market prices;
(3)Other cases in need of using the municipal important commodities reserved.
The content of the utilization plan shall mainly include the reserved commodities' varieties, quantities, utilization methods, replenishment measures, replenishment period, etc.
Article 16 When the municipal important commodities reserved are urgently needed due to emergency events, the municipal development and reform authority may allocate the reserved commodities to the requesting authorities for use beforehand upon the consent of the municipal people's government; after receiving the allocated commodities, the requesting authorities shall complete the approval procedures promptly.
Article 17 After the utilization of municipal important commodity reserves, the enterprises undertaking reserve tasks shall replenish the reserves on their own initiative within the time limit specified in the utilization plan. If the replenishment cannot be completed within the specified time limit due to special circumstances, an appropriate extension may be granted, provided that the extended time shall not exceed 3 months.
The municipal development and reform authority shall verify the replenishment conducted by the enterprises undertaking reserve tasks.
Article 18 The costs related to municipal important commodity reserves shall be included into the financial budget at the corresponding level.
The municipal development and reform authority and the municipal finance authority shall establish a mechanism for adjusting commodity reserve-related cost standards, set commodity reserve-related cost standards and submit them to the municipal people's government for approval before implementation. The commodity reserve related cost standards shall be adjusted at least every 3 years.
Costs related to municipal important commodity reserves include:
(1)Bank loan interest;
(2)Warehouse and storage fees;
(3)Natural loss of commodities;
(4)Necessary transportation and warehouse entry and exit management fees;
(5)Transportation costs incurred due to utilization of the reserved commodities, losses caused by sales at the prices lower than the cost price, and the like;
(6)Subsidies for price difference;
(7)Losses caused by uncontrollable natural disasters;
(8)Other expenses payable by the municipal finance.
Article 19 The provision of funds for covering commodity reserve-related costs shall be handled in accordance with relevant financial regulations and the entrusted reserve contract.
No entity or individual may defraud, intercept, misappropriate or otherwise embezzle reserve the funds for covering commodity reserve-related costs.
Article 20 After the completion of the task of allocating reserved commodities for utilization due to emergencies, the enterprises undertaking reserve tasks shall submit written applications to the municipal development and reform authority for settlement of costs incurred therefrom. The municipal development and reform authority shall, in conjunction with the municipal finance authority, review the applications and submit them to the municipal people's government for approval before handling the cost settlement procedures in accordance with the predefined procedure.
Article 21 For the funds required for procurement or rotation of municipal important commodities, the enterprises undertaking reserve tasks may apply for loans from relevant financial institutions.
Financial institutions are encouraged to provide loan support to requesting enterprises.
Special loans for municipal important commodity reserves may only be used for commodity reserves.
Article 22 The municipal development and reform authority shall establish an information management platform for municipal important commodity reserves, collect information on important commodity inventories, market changes and other related information from enterprises undertaking reserve tasks on a monthly basis and update such information dynamically.
The municipal development and reform authority shall conduct analysis and assessment of the demand for municipal important commodity reserves, as well as monitor and evaluate supply risks and inventory situations to improve risk prevention capabilities.
The municipal development and reform authority and other relevant authorities shall well manage such work as information release, publicity and guidance and stabilize market expectations.
Article 23 The municipal development and reform authority shall, in conjunction with relevant authorities, supervise and inspect the varieties, quantity, quality and storage safety of municipal important commodities reserved. Where it is found that any enterprise undertaking reserve task has failed to perform its duties in accordance with the provisions of these Measures, the relevant authority shall order it to make corrections within a specified time limit.
Enterprises undertaking reserve tasks shall give due cooperation during the supervision and inspection conducted by relevant authorities, and without justifiable reasons, shall not refuse, obstruct or interfere with the relevant work conducted by supervision and inspection personnel.
Article 24 The municipal development and reform authority shall establish a performance evaluation management mechanism, conduct annual performance evaluations on the completion of reserve tasks of the enterprises undertaking reserve tasks in the previous year, and conduct classified and graded supervision based on the results of performance evaluations.
Article 25 Any enterprise undertaking reserve task, if causing losses due to poor management or other human factors in the procurement, storage, rotation and utilization of municipal reserve commodities shall bear the responsibility in accordance with the law.
Any enterprises undertaking reserve task that violates the provisions of the entrusted reserve contract shall bear the liability for breach of contract in accordance with the law.
Article 26 Where the municipal development and reform authorityand other relevant authorities and their staff, in violation of the provisions of these Measures, fails to perform their duties, the competent authority shall order them to make corrections and impose punishment on the person in charge responsible and other persons directly responsible; if a crime is constituted, criminal liabilities shall be investigated and affixed according to law.
Article 27 Districts in the Municipality shall implement the reserve of district important commodities relevant with reference to these Measures.
Article 28 These Measures shall come into force on July 1, 2024.