I.Warehouse receipt registration business:

(I) Flow chart for warehouse receipt registration

 

(II) Notes on warehouse receipt registration

1. Delivery pre-declaration. Before a customer or non-futures-company member delivers goods to the warehouse, the member shall fill in the Delivery Pre-declaration Form, and the warehouse shall reply within 2 working days from the date of receiving the Form by informing of the quantity that can be received; and then the member shall pay the delivery pre-declaration deposit of RMB 30/ton to the warehouse within 2 working days from the date of the warehouse’s reply.

2.Load-in Notice. On the day of receiving the deposit for delivery pre-declaration, the warehouse shall issue a Load-in Notice. The validity period (in calendar days) of theLoad-in Noticevaries by product. For details, please refer to the relevant provisions of the Measures for the Administration of Registered Receiptsof Zhengzhou Commodity Exchange.

3. Quality inspection. The quality inspection can be in the form of inspection by a designated quality inspection agency, warehouse inspection or exemption from inspection. For details about theforms of load-in quality inspection for different products, please refer to the relevant provisions of the Measures for Administration of Registered Receipts of Zhengzhou Commodity Exchange.

4. Application for registration. If the owner of the goods has no objection to the inspection results, the warehouse shall apply to the Exchange for registration.

5. Generation of warehouse receipts.The Exchange reviews and generates warehouse receipts.

II. Factory receipt registration business:

(I) Flow chart for factory receipt registration

 

(II) Notes on the registration of factory receipts

1. Customer registration. After a non-futures-company member or customer settles the payment and other fees with the factory, the factory shall submit the application for receipt registration through the receipt system of the Exchange.

2.Credit guarantee. The factory applying for receipt registration must provide a bank performance guarantee recognized by the Exchange, cash, or other payment guarantee approved by the Exchange.

3. Guarantee amount. The guarantee amount submitted by the factory shall be calculated based on the settlement price of the contract for the most recent delivery month on the immediately previous trading day.

4. Amount adjustment. When the market value of the commodity fluctuates significantly, the Exchange may request the factory to adjust the amount of the bank performance guarantee, cash or other payment guarantee methods approved by the Exchange.

III. Receipt cancellation business:

(I) Flow chart for receipt cancellation

 

(II) Notes on receipt cancellation

1. Pick-up on cancellation. The customer entrusts the member to choose one or several warehouses to pick up the goods according to the actual number of receipts in each warehouse.

2. Issuing a pick-up notice. After the Exchange reviews the application for cancellation and issues Pick-up Notice, the member or customer shall promptly prepare an authentication password for thePick-up Notice.

3. Picking up goods. Within 10 working days from the date of issuance of thePick-up Notice by the Exchange, the holder shall use the authentication password of thePick-up Notice, the ID card of the person picking up the goods and the certificate of the person’s workplace to handle the pickup procedures at the warehouse (e.g., confirming the quality of the goods, determining the transportation means and delivery plan, and prepaying various expenses).

4. Overdue handling. If the relevant procedures are overdue, the goods will be handled as if the Pick-up Notice were for spot goods, and the warehouse will no longer guarantee that the quality of all commodities meets the specified standards. The factory will no longer guarantee to assume responsibilities such as daily delivery speed in accordance with futures regulations, and the specific matters of picking up goods shall be negotiated between the goods owner and the factory.

5. For details of other provisions, see the Measures for Administration of Registered Receipts of Zhengzhou Commodity Exchange.

IV. Re-inspection business

(I) Flow chart and notes for load-in re-inspection on commodities

Notes:

1. If the owner of the goods or delivery warehouse has any objections to the results of load-in inspection (except for strong gluten wheat), it shall submit a written application for re-inspection to the Exchange within 3 working days from the date of receiving the inspection results, and shall pay the re-inspection fee in advance.

2. Only the items to which the re-inspection applicants have objections shall be re-inspected.

3. Different ways of selecting a re-inspection agency may be adopted for different commodities. For details, please refer to the Measures for Administration of Registered Receipts of Zhengzhou Commodity Exchange.

4. The results of the re-inspection will serve as the basis for dispute resolution.

(II) Flow chart and notes for load-out re-inspection

Notes:

1. Within 10 working days from the date of issuance of thePick-up Notice, if the receipt holder has any objection to the quality of the commodity, he may apply to the Exchange for a re-inspection and pay the re-inspection fee in advance.

2. Only the items to which the re-inspection applicants have objections shall be re-inspected.

3. For the items on which theload-in inspection is conducted by the warehouse, the re-inspection shall be conducted with reference to the procedures for load-in re-inspection; and for the items on which the load-in inspection is conducted by a quality inspection agency, the re-inspection shall be conducted by the quality inspection agency designated by the Exchange.

4. The results of the re-inspection will serve as the basis for dispute resolution.

5. Application Form for Re-inspection of Futures Delivery Commodities.docwill not accept any application for the re-inspection on the quality and quantity of delivery commodities that exceed the specified time limit or have already been loaded out from the warehouse, and will not assume all and any responsibilities arising therefrom.

6.The Exchange shall notify the warehouse within 2 working days from the date of receiving a written objection. The re-inspection agency shall re-sample with the assistance of the warehouse, and the sample shall be sealed after being jointly approved by the three parties. The results of the re-inspection shall be notified by the Exchange to the member and the warehouse.

7. For details about charging relevant fees for re-inspection, relevant provisions on what to do when re-inspection results show failure in meeting the load-out requirements, and provisionsfor re-inspection on commodities loading out from a factory, see the Measures for Administration of Registered Receipts and Transit Receipts of Zhengzhou Commodity Exchange.

(III) Flow chart and notes for board re-inspection

Notes:

1. For board re-inspection, an application shall be initiated through the system, with a written notice submitted to the Exchangeat the same time.

2. For special provisions for board re-inspection on certain products, please refer to relevant detailed rules.

Download Application Form for Re-inspection of Futures Delivery Commodities.doc