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Title: Regulations for Administration on Contracted Public Stock Keeper Ch
Date: 2014.12.23
Legislative: 1.Promulgated under Order Nung-Liang-Tze 1011095361 dated May 14
2.Amendment to Articles 3 promulgated under Order Nung-Liang-Tze
1011096036 dated December 28, 2012.
3.Amendment to Articles 4 promulgated under Order Nung-Liang-Tze
1031096991A dated December 23, 2014.

        Chapter 1 General

Article 1   
The regulations for administration on Contracted Public Stock
Keeper (hereinafter referred to as “CPSK”) are duly enacted in
accordance with Article 8, Paragraph 2 of the Food
Administration Act (hereinafter referred to as "This Act").

Article 2   
The Council of Agriculture, Executive Yuan (hereinafter referred
to as "COA") in accordance with Article 8, Paragraph 1 of this
Act, may commission all or parts of the following public stock
transactions to CPSK to handle:
1.Compilation of legal rice farmers’ registered information and
  pass-through payments of collected paddy
2.Collection of paddy in exception of previously mentioned
  transaction issues
3.Rice Storage
4.Rice Milling and Distribution
COA can delegate Agriculture and Food Agency (hereinafter
referred to as "AFA") Region Branch (hereinafter referred to as
"The Branch") of to implement management and conduct
superintendence based on the contract signed in accordance with
the regulation.

Article 3   
The Branch shall sign written contracts according to Government
Procurement Act and related regulations when they entrust CPSK
to conduct the transaction shown in Paragraph 1 of the previous
Prior to the expiration of the previous contract, the Branch
may,in accordance to the Government Procurement Act and related
regulations, give priority matters, such as pricing or
bargaining power to handle contract to CPSK depending on the
public stock transactions needs and the performance of CPSK.
CPSK is prohibited from transferring the entrusted transactions
or the debt derivatives from public stock to the third party.
However, CPSK shall not be subject to this restriction in the
condition that the person in charge is inherited by heirs
because of death when CPSK is a sole proprietorship, and
obtains a written agreement from the Branch.

        Chapter 2 Requirements for CPSK and warehouse
Article 4   
CPSK may conduct the compilation of legal rice farmers’
registered information and pass-through payments of collected
paddy shown in Article 2, Paragraph 1, Subparagraph 1 of the
regulation within the limit of the farmer’s association which
has the devices and the capability to implement the Agri-Food
Information Network System.
CPSK shall meet the requirements as follows when he or she
conducts the transactions including the collection and the
storage of rice shown in Article 2, Paragraph 1, Subparagraph
2 and Subparagraph 3 of the regulation:
1.A food dealer registration
2.Experiences of food transaction
3.Capable of guarantee capacity
4.Possess quality control devices and possess rice inspectors
  that are approved by AFA.
5.Qualified devices and capabilities to implement Agri-Food
  Information Network System.
6.Possess paddy drying devices with capacity of 50 tons or over.
  CPSK who does not set up grain drying devices shall be
  equipped with devices of wet paddy collection and delivery.
  However, CPSK shall not be subject to this restriction if he
  or she only conducts the transaction of rice storage.
7.Legal warehouses
CPSK shall meet the requirements as follows except the
conditions mentioned in Subparagraph 1 – Subparagraph 4,
Subparagraph 7 of previous article when he or she conducts the
transactions including the rice processing and distribution of
rice shown in Article 2, Paragraph 1, and Subparagraph 4 of the
1.The factory establishment permits. However, CPSK shall not be
  subject to this restriction if he or she accepts consultation
  according to Factory Management Act.
2.A brown rice tank and milled rice tank each with capacity of
  30 tons or over. However, CPSK shall not have to be equipped
  with a milled white rice tank if he or she only conducts the
  transaction of brown rice processing.
3.Complete devices of public stock paddy milling, packing and
  dust collecting devices must meet the requirements as follows.
  However, with written permission from AFA, the Branch may
  review and adjust the conditions of milling capability
  according to the needs of public grain milling in the area
  under their control:
 (1)The minimum amount of milled brown rice per hour should be
      3 tons or over which meets the brown rice third-class
      standards of Chinese National Standard(CNS), or the
      capability of 3-ton milled rice or over per hour meets the
      requirements for the milled rice third-class standards of
 (2)CPSK should be equipped with additional Colored-rice
      Sorting Machine for 3 tons per hour if he or she meets the
      milled rice second-class standards of CNS.
Article 5   
CPSK shall meet the requirements as follows for providing legal
warehouse in according to Paragraph 2, Subparagraph 7 of
previous article:
1.The warehouse storage capability shall be 2000 tons or over.
  However, with written permission from AFA, the Branch may
  review the needs of storage capability in the region under
  their control, and adjust the conditions of storage capability
  when the average amount of collecting rice of the last four
  crops is less than 500 tons.
2.A suitable location with a convenient traffic system and a
  high altitude terrain, where no concerns of flood exist.
3.Repositories should be solid with a structure of reinforced
  concrete, steel frame or reinforced brick, and be roofed with
  reinforced concrete or steel frame. However, CPSK shall not be
  subject to this restriction if, with written permission from
  AFA, the Branch re-reviews, re-evaluates and assures the
  safety of repositories which are categorized as public stock
  warehouses prior to the regulation promulgation.
4.A dry and solid ground, which is at least 30 centimeters
  higher than the ground line, with an excellent drainage system
  in the surrounding environment.
5.Repositories should be equipped with ventilating devices and
  fire safety equipments in accordance with Fire Services Act.

        Chapter 3 Collection of public stock paddy

Article 6   
CPSK shall collect public stock paddy according to the regions,
which are designated of the Branch.

Article 7   
CPSK shall completely plan and prepare storage repositories and
related devices, machines, and equipment prior to the conducting
 of public stock collection for each term.

Article 8   
CPSK shall conduct the final acceptance inspection while
collecting public stock paddy in accordance with the standards
enacted in Article 9 of this Act.

        Chapter 4 Storage of public stock
Article 9   
CPSK shall provide the quantity of each public stock warehouse
while signing contracts. Meanwhile, written reports on the
structure, space, storage capacity, facility and related issues
of each repository shall be submitted to the Branch for future
reference and management. CPSK also shall inform the Branch if
there is any increasing or revision.
Without written permission from the Branch, CPSK is prohibited
from changing the use and keeping un-related stuff in the
repositories which have been reported for reference.

Article 10   
CPSK shall implement storage transactions following the packing
principle of using rice bags that meet the specifications set by
The public stock paddy shall be separately stored and piled
neatly based on the year, level, type, and form; appropriate
space between grain stacks and clear instructions on standing
signboards are necessary.

Article 11   
During the period of preserving public stock storage, CPSK shall
take complete responsibility for fulfilling their duties; the
following behaviors such as seizing, stealing and selling,
embezzling or settling and changing are strictly forbidden.
Public stock should also be kept away from moisture, heat, pests
, birds, rats, fire, floods, being stolen, or any other issues
which will influence the quality and safety of the stock.

Article 12   
The storage loss during the period of public stock storage must
be less than the storage loss rate approved by COA. The storage
loss of preserved brown rice and milled rice must be separately
 verified and reimbursed.
CPSK shall be liable for damage compensation if he or she does
not take the complete responsibility for fulfilling their duties
 causing any damages such as non-qualified grain or amount
discrepancy. Meanwhile, the loss shall not be reported as
reimbursement of storage loss. If CPSK has taken the
responsibility for storage loss compensation according to the
contract, the Branch shall re-assess and re-calculate the
storage loss based on compensation amount and storage time.

        Chapter 5 Processing and Distribution of Public Stock
Article 13   
CPSK shall implement the transactions of processing and
distributing based on the notification from the Branch.
Issues such as crop, specification, amount, packing, and
delivery expiration date of grain processing should be in
accordance with the requirements by COA for distributing,
selling, and taking over public stock. CPSK is prohibited from
processing, changing, replacing, delaying or holding
distributions by himself or herself, and shall implement
acceptance inspections accordingly.
During the period of rice processing of public paddy, AFA and
the Branch shall randomly assign representatives for inspections
according to the practical situation. CPSK shall re-process and
adjust until the product meets the requirements before the date
set by the Branch when processed grains are found to be
unqualified. The responsibility for the derivative costs and
lost should be taken by CPSK.

Article 14   
The minimum amount of brown rice, dehusking from public paddy,
which needs to be handed out by CPSK should be determined by the
Branch according to the regular open dehusking trials for each

Article 15   
The processing loss caused by CPSK while processing crushed
brown rice, milled rice, and broken rice shall be less than the
loss rate set by COA.

Article 16   
The rice bran generated in the rice milling shall be sold
according to the prices listed in the contract by CPSK who shall
give the sale income to the Branch.

        Chapter 6 Other management issues
Article 17   
CPSK shall take complete responsibility for fulfilling duties of
packing and storage according to category, and shall implement
transactions of distributing and taking over public bags based
on the instruction of the Branch.

Article 18   
CPSK shall establish registration books for recording the amount
 of public stock collected, processed, distributed, and stored
each day.
The Branch shall randomly assign representatives to inspect the
registration books, accounting forms, certificates, and related
data of public stock. No one can be allowed to refuse, avoid or

Article 19   
The Branch shall make the payment for public stock transactions
to CPSK according to contract. Any shortage of public stock or
payment for transactions shall be reduced directly by the Branch
according to the payment items listed in the contract.

Article 20   
COA, AFA, and the Branch shall randomly assign representatives
to inspect the quantity, quality, sanitation, storage management
, and environment of public stock repository. The owner or the
representative of CPSK shall provide necessary tools to
cooperate with the inspection, and is not allowed to refuse,
avoid or interfere.

Article 21   
CPSK shall provide more than two profit-seeking enterprises or
natural people in a good financial situation with good credit
records as guarantors, and provide an additional property
guarantee, or is guaranteed by a bank based on the contract
unless CPSK is remitted from providing guarantee in the contract
A farmer’s association shall be guaranteed by the director and
all council members, and is remitted from providing a property
guarantee if the association carries out the transactions of
public stock.

Article 22   
CPSK shall complete the confirmation operations of guarantor and
property guarantee within two months from the date the contract
was signed with the Branch. A confirmation operation of
guarantor shall be yearly carried out by the end of April.
A farmer’s association shall change its guarantor, and carry
out the confirmation operation if its president or council
members have been changed when the association implements the
transactions of public stock.

Article 23   
The amount of property guarantee provided by CPSK should be
assessed and calculated by the Branch according to the
quantity of public stock paddy stored by CPSK based on the

Article 24   
The pledge registration or mortgage registration for the
property guarantee provided by CPSK shall be completed; the
criteria for property guarantee value shall be based on the
The Branch shall refuse and request CPSK for changing property
guarantees in the event of any of the following:
1.Jointly-owned buildings or lands
2.The property guarantees are categorized as a hill, or forestry
  land, ecological conservation land or land for country safety
  and protection use.
3.The trading value is less than current land value or current
  assessed housing value.
The owner and the owner’s spouse, immediate relatives,
collateral blood relatives by second degree of kinship should
provide more than 50% of property guarantees of contract,
provided that CPSK provided property guarantee.

Article 25   
CPSK who violates the terms and conditions in the contact shall
take the responsibility for the compensation, according to the
grade, type, form of qualified rice for new crop, or make a
payment for the loss compensation based on the prices for
government projected procurement program at the time the act is
CPSK shall pay 20% of stock quantity or amount of compensation at
most in punitive damages if he or she does not carry out the
compensation shown in the previous paragraph within the limited
period set by the Branch.

Article 26   
If there is shortage of property guarantee provided by CPSK
because of impairment or loss of property, the Branch shall
inform CPSK to make up the deficiency. If CPSK does not make up
the deficiency before the expiration date, the Branch shall
reduce or suspend entrusting the transactions carried out by
CPSK according to the practical situation.

Article 27   
If CPSK violates the terms or conditions in the contract, or the
related regulations, the Branch shall review and evaluate the
practical situation and his or her violation records, and record
 demerit point penalty, request for damage compensation,
decrease payable amounts, reduce transaction region, and
partially suspend entrusted transaction in accordance with the
contract. Where CPSK violates any obligation specified in this
paragraph and the case is considered to be serious in nature,
the Branch may in its discretion terminate the contract.

Article 28   
CPSK is strictly prohibited from exposing or providing the
quantity and distribution of rice, and related data of the
contract, unless written permission from the Branch is obtained
or there are dealing with inspections based on the regulation.

Article 29   
CPSK shall be suspended by the Branch from the transaction of
collecting public stock paddy if he or she reduces or close down
public stock related transactions.

Article 30   
After terminating the entrusted contract and confirming with the
Branch, CPSK may request for returning his or her property
guarantees, or cancelling the registration for pledge or
mortgage once he or she settles up for rice collections,
materials and other various debts.

        Chapter 7 Annexes
Article 31   
These regulations governing CPSK shall be in force upon