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).
1. Short Title
This Regulation may be cited as the “Pulses Transaction Council of Ministers Regulation No.377 /2016”.
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.
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.
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.
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.
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
Prime Minister of the Federal Democratic Republic of Ethiopia