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Rules of the
Shenzhen Special Economic Zone on the Auction of Agricultural
and Side-line Products |
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Order of the
Shenzhen Municipal People' s Government (No. 18) |
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Rules
of the Shenzhen Special Economic Zone on the Auction of
Agricultural and Side-line Products was deliberated and
adopted at the Sixty-Seventh Executive Meeting of the Municipal
People' s Government on November 20,
1993, now is promulgated,
and shall take effect as of the date of promulgation. |
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Li Youwei |
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Mayor |
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January 25,
1994 |
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Chapter I
General Provisions |
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Article 1 In order to develop the
socialist market economy, strengthen the administration of the
auction market of agricultural and
side-line products, and
protect the legal rights and interests of the parties concerned,
these rules are hereby formulated
in accordance with the related
laws and in the light of the practical conditions of the auction
of agricultural and side-line
products in the Shenzhen Special
Economic Zone (hereinafter referred to as the Special Economic
Zone). |
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Article 2 These rules shall apply to the auction of
agricultural and side-line products in the Special Economic
Zone. |
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Article 3 The principle of openness, fairness, justice shall
be adhered to in the auction of agricultural and side-line
products. |
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Chapter II
Categories, Quality, Measurement and Prices of Auction |
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Article 4 An auction institution
shall be set up to auction agricultural and side-line products
according to Regulations of the Shenzhen Special Economic
Zone on the Auction of Property. |
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Article 5 The auction institution shall provide a place for
the auction of agricultural and side-line products. |
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The
auction of agricultural and side-line products shall be
conducted every day except
legal holidays, the specific time and
number of auctions shall be decided by the auction institution. |
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Article 6 The agricultural and side-line products to be
auctioned according to these rules shall include the spot
commodities to be
delivered immediately and the transaction
contracts of agricultural and side-line products to be delivered
within 30 days
(hereinafter referred to as the contracts of
agricultural and side-line products). |
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The
contract of agricultural and side-line products shall be the
standard contract,
which is formulated and printed by the
auction institution after the examination and approval by the
Shenzhen municipal
department of industrial and commercial
administration. |
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The
categories of agricultural and side-line products to be allowed
for auction shall
be decided and made public by the municipal
department in charge of trade (hereinafter referred to as the
responsible department). |
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Article 7 The quality grades of the agricultural and
side-line products under auction shall determined according to
the standards
set by the state. |
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All the
agricultural and side-line products, which are rotten, or have
poisonous, harmful
substance, or are polluted by poisonous,
harmful substance, and therefore are harmful to human health,
shall not be allowed
for auction. |
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Article 8 The normalized measurement or standardized
measurement shall be put into practice for the auction of
agricultural and side-line
products, the unit of transaction
shall be set as each 500 grams or each item. |
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Article 9 The highest price offered by a bidder shall be the
concluded price, the currency used to calculate the auction
price shall
be Ren Min Bi. |
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Article 10 When a contract of agricultural and side-line
products is concluded in an auction, the auction institution
shall endorse
it on the contract and affix an official seal to
the contract. |
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After a
contract of agricultural and side-line products is concluded in
an auction,
the parties concerned shall perform their respective
obligations according to the terms of the contract, in case of
violation,
the party concerned shall be held responsible for the
breach of contract according to law. |
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Chapter III
Principal, Bidder |
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Article 11 The units and
individuals entrusting the auction institution with auctioning
of agricultural and side-line products shall
be called
principals, the units or individuals bidding in the auction to
purchase agricultural and side-line products shall
be called
bidders. |
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Article 12 If the bidder is a unit, it shall bring the
business license or valid identification document to the auction
institution
to apply and obtain Bid Certificate. If the
bidder is an individual, he/she shall bring his/her own valid
identification certificate to the auction institution
to apply
and obtain Bid Certificate. |
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Article 13 Principals and bidders shall abide by the
following rules: |
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(1)
bidders shall participate in
bidding with Bid Certificate on hand; |
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(2)
the agricultural and
side-line products for auction shall meet the requirements of
the auction institution for categories,
specifications, package,
measurement, stored in order at the designated places, and
delivered at the designated spots; |
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(3)
the transaction account
shall be settled at the spot when a transaction is concluded in
an auction. |
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Article 14
When participating in an auction,
principals and bidders shall |
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abide by the
administrative rules of the auction institution and the rules on
auction. |
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Article 15 When participating in bidding to purchase
agricultural and side-line products, bidders shall pay the
security deposit to
the auction institution according to the
stipulations of the responsible department. |
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Article 16 At the end of an auction, if a bidder will not
participate in the following auctions, the auction institution
shall return
the total of the security deposit paid by the
bidder, and take back Bid Certificate at the same time.
If a bidder will participate in the following auctions, the
security deposit shall not be returned. |
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Chapter IV
Mode and Procedure of Auction |
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Article 17 The auction institution
shall announce the categories, specifications, prices, quality,
quantity of the agricultural and
side-line products for auction
that very day. |
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Article 18 The auction institution shall assign an
auctioneer to preside over the auction of agricultural and
side-line products. Auctioneers
shall have had the corresponding
professional training and hold the auctioneer qualification
certificates issued by the
responsible department. |
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Article 19 The duties of an auctioneer shall be as follows: |
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(1)
to preside over the opening
and closing of the auction market; |
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(2)
to arrange the order of
various auctions of agricultural and side-line products and to
preside over the auctions; |
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(3)
to confirm the conclusion of
a transaction, to write out a detailed list of the transaction; |
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(4)
to maintain the order of the
auction places. |
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Article 20
At the beginning of an auction, an
auctioneer may take the price |
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quoted by the
principal or the average concluded price of the agricultural and
side-line product in the previous trade day
as an opening offer. |
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Article 21 The price competition in an auction shall be
conducted according to the price levels prescribed by the
auction institution. |
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Article 22 The essential procedure of an auction shall be as
follows: |
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(1)
the principal shall report
to the auction institution the categories, quantity,
specifications, quality grades, prices of
the agricultural and
side-line products for auction under entrustment; |
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(2)
the bidders shall carry out
a fair competition in prices when the auctioneer is presiding
over the auction; |
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(3)
when a transaction is
concluded, the successful bidder shall sign the detailed list of
the transaction; |
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(4)
the principal and the
successful bidder shall complete the delivery and settle the
transaction account through the auction
institution; |
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(5)
the auction institution
shall collect the commission, collect and remit tax payments,
etc. according to the rules. |
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Article 23
After the conclusion of each
transaction in auctioning, the principal |
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shall pay the
commission to the auction institution. |
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The
commission rates shall be examined and approved by the
department of price of the
municipal government. |
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If the
auction institution provides for principals the necessary
services such as loading
and unloading, packing, warehousing,
processing, cleaning, etc., the corresponding charge may be
collected according to
the related rules. |
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Chapter V
Delivery and Account Settlement |
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Article 24 The delivery referred
to in these rules shall mean delivering and accepting of goods
and paying for these goods in each
auction. |
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After a
transaction is concluded in an auction, the principal and the
successful bidder
shall settle the account for goods through the
auction institution in a unitary way. |
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As for
the spot commodities delivered immediately, the principal and
the successful
bidder shall deliver and accept the goods at the
place designated by the auction institution. The delivering and
accepting
of goods after concluding a transaction by a contract
of agricultural and side-line products in an auction shall be
carried
out according to the agreement reached in the contract. |
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Article 25 If a successful bidder refuses to make a payment
for goods, the principal may ask the auction institution to stop
the procedure
for delivery, the auction institution shall take
back the successful bidder' s Bid Certificate, and
disqualify this bidder from bidding. |
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Article 26 After a transaction is concluded in an auction,
the auction institution' s seal for finance only shall be affixed
to the
invoice of the transaction. |
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Chapter VI
Legal Liabilities |
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Article 27 If it is fond after
concluding a transaction in an auction that the agricultural and
side-line products delivered by the
principal do not meet the
specifications and quality of the sample which were provided
before, the auction institution
shall instruct the principal to
return the payment for goods, the principal shall bear the
responsibility for the breach
of contract according to law and
all the resultant expenses as well. |
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Article 28 If successful bidders go back on their promises
after concluding transactions in auctioning, they shall bear all
the resultant
expenses and the loss caused by the difference in
prices for re-auctioning. |
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Article 29 If the auction institution, in violation of these
rules, has caused the loss for the parties concerned, it shall
be held
liable for compensation. |
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If
auctioneers, in violation of these rules, have caused the loss
for the parties concerned,
the auction institution and the
auctioneers shall be held liable for joint and several
compensation. |
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Chapter VII
Supplementary Provisions |
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Article 30 The responsible
department of the municipal government may formulate the related
measures for implementation according to
these rules. |
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Article 31 These rules shall take effect as of the
date of promulgation. |
