Council of Ministers Regulation No. 377/2016
COUNCIL OF MINISTERS REGULATION TO PROVIDE FOR PULSES TRANSACTION
This
Regulation are issued by the Council of Ministers pursuant to Article 5 of the
Definition of Powers and Duties of the Executive Organs of the Federal
Democratic Republic of Ethiopia Proclamation No. 916/2015 and Article 31(2) of
the Ethiopian Commodity Exchange Proclamation No.550/2007 (as amended by
Proclamation No. 665/2010).
PART
ONE
GENERAL
1. Short Title
This Regulation may be cited
as the “Pulses Transaction Council of Ministers Regulation No.377 /2016”.
2. Definition
In this Regulation:
1/ “pulses” means pea beans varieties other than
white pea beans, mung beans, soya beans, lentils, fava beans, chick peas, field
peas, grass peas, lupine beans and the like;
2/ “primary transaction centers” means places
designated by an appropriate regional organ for pulses transaction;
3/ “service provider” means any person engaged in
processing, warehousing or transporting pulses;
4/ ”supply pulses ” mean pulses that has not
been processed for export but purchased from primary transaction centers by
supplier, producer or cooperative society and directly delivered to the
Ethiopia Commodity Exchange;
5/ “supplier” means any person who purchases
pulses from primary transaction centers for delivery to the Ethiopia Commodity
Exchange;
6/ “consumers” means persons who purchase pulses
for consumption and includes private firms, consumer cooperative societies,
defense institutions, educational institutions and other similar institutions
who purchase large volume of pulses for consumption;
7/ “exporter” means a person who purchases pulses
at the Ethiopia Commodity Exchange and processes and exports same in compliance
with standard applicable to export, or small scale farmer, co-operative
society, farm enterprise who collect pulses from own farm and processes and
exports pulses in compliance with standard applicable to export;
8/ “wholesaler” means any person who purchases
pulses from primary transaction centers of pulses producing areas and sales
same to grain retailers situated in non-producing areas;
9/ “retailer”
means any person engaged in purchasing of pulses from primary transaction
centers and sales directly to consumers;
10/ “producer” means any person engaged in pulses
production and including small scale farmers, co-operatives societies, farm
enterprises and out growers;
11/ “transaction actor” means consumers,
cooperative society, retailer, wholesaler, supplier, processor, exporter and
service provider of pulses;
12/ “processor” means any person who produces value
added pulse products by using processing industry and supply these products to
the market;
13/ “manipulation” means any act that result or is
likely to result in confusion or deception of market actors or the concerned
body in relation to the price, quantity, quality or type of pulses and any
information related to same and any act diminishing acceptability of the
country’s pulses;
14/ “preparation”
means making ready pulses for market after winnowing and making it clean from
any foreign materials;
15/ “appropriate
regional organ” means the regional organ vested with the power to lead trade
activities;
16/ “region” means any regional state referred to
in Article 47 of the Constitution of the Federal Democratic Republic of
Ethiopia and includes the Addis Ababa and Dire Dawa City Administrations;
17/ “Ministry” or “Minister” means the Ministry or
Minister of Trade, respectively;
18/ “appropriate sector office” an organ that is
empowered to issue certificate of competence to prepare, store, transport, or
process or to carry out other related activities in relation to pulses
transaction;
19/ “person” means a natural or juridical person;
20/ any expression in the masculine gender
includes the feminine.
3. Scope of Application
This Regulation shall apply to
producers and transaction actors of pulses.
PART
TWO
PULSES TRANSACTIONS
4. Primary
Transaction Centers
1/ Pulses transaction at primary transaction
centers shall be effected only between pulses producers as a seller and
consumer or wholesaler or processer or retailer or supplier of pulses as a
buyer.
2/ The appropriate regional organ shall, in
consultation with other relevant organs mandated for transaction pulses,
determine the number and distribution of primary transaction centers in pulses
producing areas.
3/ The appropriate regional organ shall take the
following factors into account in determining the number and distribution of
pulses primary transaction centers:
a) proximity for pulses producers and suppliers;
b) accessibility for motor vehicle transport;
c) convenience
for service provision in connection with pulses transactions; and
d) distance that does not create inconvenience
on schools, health, and religious
institutions and other social service providing institutions.
4/ The organ in charge of administrating primary
transaction centers shall cooperate with the appropriate organ to clean the
trading places from environ mental effects that may affect the quality of
pulses.
5/ The organization, operation and
administration of primary transaction centers shall be governed by laws to be
issued by regions.
5. Pulses Transactions
at the Ethiopian Commodity Exchange
1/ The supply pulses transaction at the Ethiopia
Commodity Exchange shall be effected only between producers or suppliers as a
seller and pulses exporters, processors, wholesalers, consumer cooperatives as
a buyer following the Exchange’s Rules.
2/ Notwithstanding the provision of sub-article
(1) of this Article:
a) the Ethiopia Commodity Exchange may put in
place special procedures for transaction involving high quality supply pulses
that may fetch high income;
b) pulses seized as illegal by the Ministry or
the appropriate regional organ, or remains of pulses from export the volume of
which is less than a 20 feet container may be introduced for re-trade at the
Ethiopian Commodity Exchange.
PART
THREE
CERTIFICATE
OF COMPETENCE AND OBLIGATION OF PULSES
TRANSACTION ACTORS
6. Certificate
of Competence
The lists of transaction
actors’ subject to obtain certificate of competence and issuance of certificate
of competence shall be determined by directive to be issued by appropriate
sector office.
7. Obligations of Person Involved in Pulses
Transaction
Any person involved in
pulses transaction shall:
1/ effect pulses transaction only at primary
transaction centers and the Ethiopia Commodity Exchange in accordance with Article
4 and 5 of this Regulation;
2/ comply with all directives issued by the
appropriate body for the proper execution of transaction;
3/ submit without any payment a representative
sample from pulses prepared for transaction when so requested for quality
inspection purposes;
4/ maintain a register of details of the daily
pulses transaction quantity, grade and price and disclose the same to the
relevant Government organ on demand and cooperate when physical presence for
site visit or inventorying is required; and
5/ abstain from deceptive transaction and illegal
transportation of pulses.
8. Obligations
of Suppliers
Any supplier shall have the
following obligations:
1/ sell the pulses purchased from primary
transaction centers at the Ethiopia Commodity Exchange within the same harvest
year;
2/ ensure that the pulse submitted to the
Ethiopia Commodity Exchange conforms to quality standard;
3/ supply for sell pulses from a particular
origin without mixing it with pulses of other origins;
4/ store pulses in the authorized warehouse; and
5/ store pulses in a standard quality bag and
transport it in a manner that may not compromise or diminish quality of pulses.
9. Obligation of
Exporters
Any exporter shall have the
following obligations:
1/ process export pulses in accordance with the
country’s quality standard or; the quality standard of the buyer, if there is
no quality standard of the country;
2/ Register with the National Bank of Ethiopia
the contract and the correct sales price not later than 24 hours after the
conclusion of a contract of sale of pulses and notify the same to the Ministry
and other concerned authorities within 15 days;
3/ export all supply pulses purchased at the
Ethiopia Commodity Exchange within two month after the end of harvest year;
4/ without prejudice to the extension of the
contract permitted by the National Bank of Ethiopia upon showing sufficient
reasons, perform the contract he concludes with the buyer on the due date;
5/ purchase pulses only at the Ethiopia
Commodity Exchange;
6/ not supply for re-trade to the Ethiopia
Commodity Exchange pulses purchased at the Exchange, unless it is a leftover
from export and the volume of which is less than a 20 feet container.
10. Obligation of Wholesalers
Any wholesaler shall have
the following obligations:
1/ purchase
pulses only from Ethiopia Commodity Exchange;
2/ sell within
the same harvest year the pulses purchased from Ethiopia Commodity Exchange to
retailers or cooperatives;
3/ sell the pulses purchased from Ethiopia
Commodity Exchange without mixing it with pulses of other origins or foreign
matters;
4/ store pulses only in the warehouse authorized
for pulses storage; and
5/ store pulses in a standard quality bag and
transport it in a manner that may not compromise or diminish quality of pulses.
11. Obligation of
Service Providers
Any service provider shall
have the following obligations:
1/ comply with all directives to be issued by
the appropriate sector office for the proper provision of service;
2/ abstain from any prohibited acts and
deceptive transactions and transportation of pulses;
3/ submit without any payment a representative
sample from the pulses he prepare or transport when so requested for quality
inspection purpose;
4/ process export pulses in accordance with the
country’s quality standard or; quality standard of the buyer, if there is no quality
standard of the country;
5/ have sealed by the appropriate executive body
and obtain a letter of release from such body, when transporting pulses from
the production area to the Ethiopia Commodity Exchange or to the port;
6/ ensure before loading pulses for
transportation that a vehicle and its driver comply with the provision of this
Regulation and directives issued pursuant to this Regulation;
7/ keep approval document issued by appropriate
body that his pulses processing and storage facility as well as equipment
maintain the required standard..
12. Obligation of
Producer
1/ Any producer shall have the obligation to sale
pulses produced from his own farm at a primary transaction centers or the
Ethiopia Commodity Exchange.
2/ Notwithstanding sub-article (1) of this
Article, any producer may, by himself or through a cooperative society in which
he is a member, directly export or process and supply for market pulses
produced from his own farm.
PART Four
PULSES TRANSACTIONS CONTROL
13. Grading and
Transportation of Pulses
1/ The type and quality of pulses consigned to
the Ethiopia Commodity Exchange by supplier or producer shall, be pre-inspected
and sealed by a transaction and quality inspector assigned by the appropriate
regional organ.
2/ The pulses shall, upon arrival at the Ethiopia
Commodity Exchange, be graded upon conducting appropriate test based on a
representative sample.
3/ The grade of export pulses shall be certified
by the Ministry and upon being sealed be transported to the port of shipment.
14. Assignment of
Pulses Transaction Inspectors
The Ministry and the
appropriate regional organs shall, as may be appropriate, assign pulses
transaction inspectors.
15. Powers and Duties
of Pulses Transaction Inspectors
An inspector assigned
pursuant to Article 14 of this Regulation shall have the powers and duties to:
1/ ensure the implementation of the provisions
of this Regulation and directives issued in accordance with this Regulation;
2/ supervise the transaction, storage, processing
and transportation of pulses purchased at primary transaction center that they
are carried out pursuant to this Regulation and directives issued for such
purpose;
3/ seize,
against issuance of a receipt, the illegally handled pulses or take sample of the pulses and seal the warehouse where the pulses are deposited, where he ascertains
that the provisions of this Regulation or directives issued for the
implementation of this Regulation are contravened;
4/ immediately report to the Ministry or the
appropriate regional organ on the action he has taken pursuant to sub-article
(3) of this Article;
5/ follow up and implement instructions of the
Ministry or the appropriate regional organ for taking subsequent actions in
according with Article 17 of this Regulation.
16. Whistle
Blowing
1/ Any person who is aware of an illegal act
committed, in violation of the provisions of this Regulation or directives issued
for the implementation of this Regulation, in the course of transaction,
processing, storing or transporting pulses may inform the same to the nearest
pulses quality and transaction inspector or to the Ministry or the appropriate
regional organ.
2/ Any person who has submitted information in
accordance with sub-article (1) of this Article that led to the seizure of pulses subject to the illegal act shall be
entitled to the payment of whistle blower’s commission pursuant to Article 17(4)(b)
of this Regulation.
17. Seized Pulses
and Sealed Warehouses
1/ Any
person whose pulses has been seized or his pulses warehouse had been sealed
under Article 15(3) of this Regulation may submit his objection, in writing, to
the Ministry or appropriate regional organ within five working days.
2/ The Ministry or the appropriate regional organ
shall, within not exceeding one week, examine and give decision in writing on
the objection. Where the decision of the Ministry or the appropriate regional
organ:
a) disapproves the actions of the inspector, the
release of the seized pulses or the
opening of the sealed pulses warehouse
shall be immediately effected;
b) approves the actions of the inspector, the
pulses shall, after retaining sample, be sold to suppliers at primary
transaction centers or to exporters at the Ethiopia Commodity Exchange where it
is supply pulses, or to exporters at the Ethiopia Commodity Exchange where it
is export pulses, and the proceeds of the sale shall be deposited in a blocked
bank account opened in the name of the Ministry or the appropriate regional
organ.
3/ The owner of pulses who objects the decision
referred to in sub-article (2)(b) of this Article may lodge his pleading to
appropriate first instant court within 30 days from the date of receipt of the
decision.
4/ Where the court to which a pleading is
submitted pursuant to sub-article (3) of this Article:
a) reverses the decision of the Ministry or the
appropriate regional organ, the proceeds of the sale shall, after deducting the
cost of sales, be paid to the owner of the
pulses; or
b) upholds the decision, and the owner fails to
lodge appeal in a regular court within the time specified in the Civil
Procedure Code, after deducting administrative expenses, 40% of the proceed
shall be paid to the whistle blower as a commission or if there is no whistle
blower to the government security organ seized the pulses and the remaining 60%
shall be paid to Government.
PART
FIVE
MISCELLANEOUS PROVISIONS
18. Prohibitions
The following acts are
prohibited:
1/ engaging in trading of pulses without having
a certificate of competence and valid license;
2/ processing pulses, by any person engaged in
the pulses trading business, using technical procedure other than those issued
by the appropriate sector office;
3/ selling or buying, by any person engaged in
the pulses trading business, pulses outside primary transaction centers or the
Ethiopia Commodity Exchange;
4/ storing, by any supplier or wholesaler or
exporter, pulses for more than one
harvest year, or by any exporter for a period exceeding the time limit
specified under Article 9 (3) of this
Regulation;
5/ storing, by any person engaged in the pulses
trading business, pulses outside the authorized warehouse;
6/ transporting, by any person engaged in the
pulses transporting business, pulses in a manner that is below the standard of
cleanliness or by a person that has no valid transportation permit;
7/ any person engaged in the pulses trading
business or person directly or indirectly connected to the pulses trading
business, engaging in any deliberate deception for inappropriate benefit;
8/ violating this Regulation and directives
issued here under;
9/ engaging in any activity detrimental to
trading of pulses;
10/ failing to perform a contract of pulses trading
as agreed;
11/ failing to provide information requested by
inspector or appropriate organ or providing fraudulent and misleading
information.
19.
Administrative Penalty
Without prejudice to
penalties provided for in other relevant law for violations not included in
this penalty provisions:
1/ any
supplier, wholesaler, retailer, exporter or processor who conducts pulses
transaction outside the primary transaction centers or the Ethiopia Commodity
Exchange shall, in addition to confiscation of his pulses, be punishable with a
fine of Birr 10,000;
2/ any person,
who stores pulses outside the authorized storage place or process outside the
authorized processing industry shall, in addition to confiscation of the
pulses, be punishable with a fine of Birr 7,000;
3/ any person
who transports pulses from one woreda to another without a wholesale license
and permit for transportation shall, in addition to confiscation of his pulses,
be punishable with a fine of Birr 7,000;
4/ any holder of export license who provides
cover and creates conducive environment for third parties having no export
license or foreigners to export pulses shall, in addition to confiscation of
his pulses and cancellation of export trade license, be punishable with a fine of Birr 10,000;
5/ any person who is engaged in exporting pulses
without having valid export license shall in addition to confiscation of his
pulses be punishable with a fine of Birr 5,000;
6/ any person, who stores or transports pulses
in condition which damage the quality and standard shall be punishable with a
fine of Birr 5,000;
7/ any person who performs misleading act on
pulses transaction shall, in addition to confiscation of his pulses, be
punishable with a fine of Birr 5,000;
8/ any person who violates other provisions of
this Regulation or a directive issued for the implementation of this Regulation
shall, in addition to confiscation of his pulses, be punishable with a fine of
Birr 5,000.
20. Obligation to
Cooperate
1/ Any person shall have the obligation to
cooperate with the Ministry or with the appropriate regional organ in the
implementation of this Regulation.
2/ Police shall provide the necessary assistance
to a pulses quality and transaction inspector in seizing pulses subjected to
illegal acts.
21. Power to Issue
Directives
The Ministry may issue
directives necessary for the implementation of this Regulation.
22. Transitory
provision
Any pulses supplier,
wholesaler, exporter, or service provider shall continue operating his business
using his existing valid business license until he obtains a certificate of
competence from the Ministry or the appropriate regional organ within two months
from the effective date of this Regulation.
23. Inapplicable Regulations and Directives
Without prejudice to the
Sesame or White Pea Beans Council of Ministers Regulation, no regulation or
directive or customary practice shall, in so far as they are inconsistent with
this Regulation, be applicable with respect to matters provided for by this
Regulation.
24.
Effective Date
1/ This Regulation shall enter into force on the
date of publication in the Federal Negarit Gazetee.
2/ Notwithstanding the provisions of sub-article
(1) of this Article, the date on which the
pulses transaction begin to be conducted in Ethiopia Commodity Exchange
in accordance with the provision of this Regulation shall be determined by the
Ministry.
Done at Addis Ababa, this 4th
Day of March, 2016
Hailemariam Desalegn
Prime Minister
of the Federal Democratic Republic of Ethiopia
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