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Title: Regulations for Administration on Contracted Public Stock Keeper Ch
Date: 2017.12.27
Legislative: 1.Promulgated under Order Nung-Liang-Tze 1011095361
dated May 14 ,2012.
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.
4.Amendment to Articles 2-5、10、14、18、21、22、24、
25、27、29 promulgated under Order Nung-Liang-Tze
1061097283A dated December 27, 2017.
Content: 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 contracted
public stock keepers (CPSK):
1. Collection of paddy and related transactions
2. Rice storage and related transactions
3. Rice milling, processing, and distribution related
COA can delegate regional branches (hereinafter
referred to as "the Branch") of the Agriculture and
Food Agency (hereinafter referred to as "AFA") to
supervise and manage contracts signing and
implementation in accordance with the Regulations.

Article 3
The Branch delegating CPSK for transactions based on
Paragraph 1 of the above-mentioned article shall
proceed according to the Government Procurement
Act and related regulations and sign a written
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 CPSK
depending on the public stock transactions needs and
the performance of CPSK.
CPSK is prohibited to transfer the commissioned
public stock transactions or credits derived from such
commissioning to a third party. The above restriction,
however, does not apply to the case in which the
person in charge of a CPSK, as a sole proprietorship, is
changed because of inheritance or other reasons,
while at the same time the enterprise is generally
assumed unchanged, and the Branch has agreed to
the personnel change in writing.

Chapter 2 Requirements for CPSK and warehouse

Article 4
CPSK must satisfy the following conditions to perform
collection of paddy and rice storage transactions listed
in Article 2, Paragraph 1, Subparagraphs 1 and 2:
1. Having the food dealer registration completed;
2. Possessing experience in running food transactions;
3. Able to provide guarantees;
4. Equipped with quality control equipment and AFA-
   approved rice and grain inspection personnel;
5. Equipped with the capacity and equipment for
   implementing the Agri-Food Information Network
6. Equipped with a drying capacity or a fresh paddy
   collection and transportation capacity; This regulation
   does not apply to those handling rice storage only.
7. Providing warehouse for legitimate use. This regulation
   does not apply to those handling paddy collection only.
When CPSK performing paddy milling and processing
and distribution in Article 2, Paragraph 1,
Subparagraphs 3, he or she should qualify for not only
conditions stipulated in Subparagraphs 1 to 4 and 7 of
the paragraph above but also the following criteria:
1. Possessing a factory registration certificate; This
   regulation does not apply to those exempted from
   factory registration in accordance with the Factory
   Management Act.
2. Having more than one brown rice tank and one
   milled rice tank; Those performing brown rice
   milling and processing do not need to set up a
   milled rice tank.
3. Possessing complete public rice milling and
   processing, packaging, and dust collecting
   equipment meeting the following requirements:
The Branch shall review the public stock milling
and processing requirement in its responsible
area, report the requirements to AFA, and obtain
AFA’s approval in writing before adjusting the
milling and processing capacity of the equipment:
(1)The equipment should be capable of milling three
tons or more of brown rice of the third class of
Chinese National Standard (CNS) each hour or
milling and processing three tons or more of
milled rice of the third class of Chinese National
Standard (CNS).
(2)Those milling and processing milled rice of the
second class of Chinese National Standard (CNS)
should be equipped with rice color sorting
equipment for milled rice of a capacity of three
tons per hour or more.

Article 5
CPSK, when providing warehouses for legitimate use
in accordance with Paragraph 1, Subparagraph 7 of
the provision above, should meet the following
1.The capacity of the warehouse should be two
thousand tons or above. For those whose average
quantity of paddy collected of the four crops was
less than 500 tons or if the whole warehouse is
only used for storing imported rice, the Branch
shall review the warehouse capacity in their
responsible area, report the requirements to AFA,
and obtain AFA’s approval in writing before
adjusting the warehouse capacity.
2. The location should have convenient transportation
and be on high ground to reduce the risk of floods.
3.The building should be solid and intact, the
structure should be reinforced concrete, steel
structure, steel frame, or reinforced brickwork.
The roof should be of reinforced concrete or steel
4.The floor should be solid and dry and 30cm above
the ground line. Drainage in the surrounding area
should be good.
5.The building should be equipped with a ventilation
system and fire safety equipment in accordance
with the Fire Services Act.
The above provision does not apply to warehouses
already inspected and listed as a public stock
warehouse by the Branch before the implementation
of the Regulations and which the Branch has reviewed
and evaluated the warehouse building conditions and
safety before contract renewal, and obtained AFA’s

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 should implement public paddy storage using
bags or low temperature Silos satisfying the
specifications set by AFA.
For the storage of the aforementioned public stock, it
should be separately stored based on the crops, the
quality, the type, and the form, and be clearly labeled
by a label board. For those packed in bags, they
should be piled neatly, and appropriate space should
be kept between grain stacks.

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

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
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 according to the contract.

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 issue s

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

Article 18
For CPSK performing public stock transactions, they
should confirm and register on the AFA information
network system the quantity of public stock paddy
they have collected, milled/processed, distributed,
and kept.
The public stock account books, certificates, and other
related records should be kept for at least five years.
The Branch has the right to audit the above
information from time to time without refusal,
circumvention, or interference.

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
Unless exempted from providing any guarantee in the
contract, CPSK should provide more than two profit-
seeking enterprises or persons in good financial
situation with good credit records as guarantors.
CPSK should also provide additional property
guarantees or be guaranteed by a bank in accordance
with the contract.
For farmers’ associations to perform public stock
transactions, they must have the board chairman
and general manager as their joint guarantors. Those
providing financial guarantees or having the bank as
the guarantor in accordance with the
aforementioned provision are exempted from
providing joint guarantors.

Article 22
CPSK should cooperate with the Branch by completing
identity verification of the join guarantors and the
property guarantee within two months after signing
the contract. Except for farmers’ associations and
those already providing sufficient property guarantee
or bank guarantors, identity verification should be
performed once every year before the end of April.
If there is any change in the joint guarantors, the
joint guarantee contract should be updated and identity
verification should be performed once it is approved
by the Branch.

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 contract.

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 contract.
The Branch shall refuse and request CPSK for changing
property guarantees in the event of any of the
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
A CPSK found breaching the contract shall be liable for
compensation in accordance with the terms and
conditions of the contract.
If CPSK’s compensation according to the above-
mentioned provision is delayed, it will also pay stock
or an equivalent amount of money as punitive
damages in accordance with the contract, and the
amount of such punitive damages should not exceed
20% of the quantity or dollar amount of the

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
For CPSK providing public stock transactions breaching
the contract or the provisions here, the Branch, after
evaluating the situation as well as the contract
breaching record, may allow a period for
improvement, request for damage compensation,
withhold the accrued expenses, reduce regions
designated to the CPSK, or suspend part of the
commissioned transactions in accordance with the
terms and conditions of the contract. If the breaching
of the contract is serious, the Branch will 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
If CPSK’s public stock transaction volume is reduced or
suspended, the Branch can suspend the CPSK’s public
stock collection.
If CPSK’s food dealer registration is revoked or
terminated during the effective term of the contract,
the Branch should suspend CPSK’s paddy collection
and rice milling/processing transactions, but
depending on the business need, the Branch may have
CPSK continue its rice storage transactions until all rice
in the stock is completely distributed and then
terminate the contract.

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 promulgation.