Regulation No. 178/2010 Sesame and White Pea Beans Transaction Council of Ministers Regulation | GOALGOOLE | Because you need Information for your goals !
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Regulation No. 178/2010 Sesame and White Pea Beans Transaction Council of Ministers Regulation

Council of Ministers Regulation No. 178/2010
SESAM AND WHITE PEA BEANS TRANSACTION
COUNCIL OF MINISTERS REGULATION

This Regulation is 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. 471/2005 and Article 31(2) of the Ethiopian Commodity Exchange Proclamation No. 550/2007 (as amended).

PART ONE
GENERAL

1.    Short Title
This Regulation may be cited as the “Sesame and White Pea Beans Transaction Council of Ministers Regulation No. 178/2010”.
2.    Definitions
In this Regulation, unless the context otherwise requires:
1/ “primary transaction centers” means places designated for sesame or white pea beans transaction by an appropriate regional organ;
2/ “service provider” means any person not engaged in sesame or white pea beans transaction and engaged in processing, warehousing or transporting sesame or white pea beans;
3/ “supply sesame or white pea beans” means sesame or white pea beans purchased from primary transaction centers by supplier or directly delivered to the Ethiopia Commodity Exchange by producer or cooperative, that has not been processed for export;
4/ “supplier” means a person who purchases sesame or white pea from primary transaction centers for delivery to the Ethiopia Commodity Exchange;
5/ “exporter” means a person who, upon purchasing sesame or white pea beans at the Ethiopia Commodity Exchange or collecting from his own farm, processes and exports the same in compliance with standards applicable to export;
6/ “producer” means any person engaged in sesame or white pea beans production, including small-scale farmers, cooperatives and farm enterprises;
7/ “manipulation” means any act that result or is likely to result in confusion or deception of market participants or the government as to the price, quantity, quality or type of sesame or white pea beans;
8/ “sesame or white pea beans products processor” means any person engaged in industrial processing of sesame or white pea beans products for either local consumption or export;
9/ “appropriate regional organ” means a regional organ vested with power to lead agricultural and rural development;
10/ “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;
11/ “harvest year” means the period beginning Hidar 1st of a year and ending Tikimt 30 of the next year according to the Ethiopian calendar;
12/ “Ministry” or “Minister” means the Ministry or Minister of Agriculture and Rural Development, respectively;
13/ “person” means a natural or juridical person;
14/ any expression in the masculine gender includes the feminine.

PART TWO
SESAME AND WHITE PEA BEANS
TRANSACTIONS

3.    Primary Transaction Centers
1/ Supply sesame or white pea beans transaction at primary transaction centers shall be affected only between sesame or white pea beans producers and sesame or white pea beans suppliers.
2/ The appropriate regional organ, in consultation with other relevant organs of the region mandated for transaction matters, shall determine the number and distribution of primary transaction centers in sesame or white pea beans producing areas.
3/ The appropriate regional organ shall take the following factors into account in determining the number and distribution of primary transaction centers:
(a)    proximity for sesame or white pea beans producers and suppliers;
(b)    accessibility for motor vehicle transports;
(c)    convenience for trading sesame or white pea beans sharing similar properties;
(d)    convenience for service provision in connection with sesame or white pea beans transactions; and
(e)    sufficiency of distance from schools and health, religious and other social service institutions.
4/ The organ in charge of administering primary transaction centers shall take the necessary measures to clean the trading places from environmental effects that may affect the quality of sesame or white pea beans.
5/ The organization and operation of primary transaction centers shall be governed by laws to be issued by regions.
4.    Sesame and white Pea Beans Transactions at the Ethiopian Commodity Exchange
1/ Supply sesame or white pea beans transactions at the Ethiopia Commodity Exchange shall be effected only between suppliers or producers and exporters or sesame or white pea beans products processors following the exchange rules.
2/ Notwithstanding the provisions of sub-article (1) of this Article:
(a)    the Ethiopian Commodity Exchange may put in place special procedures for transactions involving high quality supply sesame or white pea beans that may fetch high income;
(b)    sesame or white pea beans seized as illegal by the Ministry or the appropriate regional organ, or remains of sesame or white pea beans from export the volume of which is less than a container may be introduced for re-trade at the Ethiopian Commodity Exchange.
3/ Any supplier or exporter may engage in sesame or white pea beans transaction only upon confirmation that he has a certificate of competence issued pursuant to this Regulation and presents a sesame or white pea beans trade license issued by the competent authority.

PART THREE
CERTIFICATE OF COMPETENCE

5.    Requirement of Certificate of Competence
Any sesame or white pea beans supplier, exporter or service provider shall obtain a certificate of competence issued in accordance with this Regulation prior to applying for a trade license.
6.    Sesame or White Pea Beans Supplier’s Certificate of competence
A sesame or white pea beans supplier’s certificate of competence shall be granted upon ascertaining that the applicant:
1/ owns or has procured from a third party through a lease contract a sesame or white pea beans warehouse, as sesame or white pea beans bags and other necessary materials which meet the technical standards issued by the Ministry;
2/ owns or has procured from a third party through a lease contract a weigher verified by the Quality and Standards Authority of Ethiopia.
3/ has an operational procedures to process sesame or white pea beans products of different ecological properties separately;
4/ owns a service catering office organized in a manner to be able to cater service;
5/ has permanently deployed a staff sufficiently qualified in sesame or white pea beans quality matters; and
6/ has an information flow mechanism through which he shall inform the appropriate regional organ, identifying by type and quantity, about the sesame or white pea beans he purchased to sell at the Ethiopian Commodity Exchange, the sesame or white pea beans he supplied to the Ethiopian Commodity Exchange and what remains as stock in the warehouse, at least at the end of every month.
7.    Sesame or White Pea Beans Exporter’s Certificate of Competence
A sesame or white pea beans exporter’s certificate of competence shall be granted upon ascertaining that the applicant:
1/ owns or has leased from a third party a sesame of white pea beans warehouse, sesame or white pea beans processing equipment and other necessary equipments fulfilling the requirements issued by the Ministry to process supply sesame or white pea beans destined for export;
2/ owns or has leased from third party a weigher verified by the Quality and Standards Authority of Ethiopia;
3/ arranges operational processes, as confirmed by the competent authority, that can dispose wastes without causing harm to the environment, the public or individuals;
4/ has an information flow mechanism through which he shall inform the Ministry, identifying by type and quantity, about the sesame or white pea beans he has purchased for export, sesame or white pea beans he exported and what remains as stock in the warehouse, at least at the end of every month;
5/ owns a service catering office organized in a manner to be able to cater service; and
6/ has permanently deployed a staff sufficiently qualified in sesame or white pea beans quality matters.
8.    Sesame or White Pea Beans Processing Service Provider’s Certificate of Competence
A sesame or white pea beans processing service provider’s certificate of competence shall be granted upon ascertaining that the applicant:
1/ own or has leased from third party a warehouse and sesame or white pea beans processing or sifting and other equipments that fulfills criteria set by the Ministry;
2/ owns a service catering office organized in a manner to be able to cater service;
3/ has permanently deployed a staff sufficiently qualified in sesame or white pea beans quality matters;
4/ owns or has leased from third party a weigher verified by the Quality and Standards Authority of Ethiopia;
5/ arranges operational processes, as confirmed by the competent authority, that can dispose waster without causing harm to the environment the public or individuals and;
6/ employs procedures that enable to differentiate sesames or white pea beans that have different properties or standards.
9.    Sesame or White Pea Beans Warehousing Service Provider’s Certificate of Competence
A sesame or white pea beans warehousing service provider’s certificate of competence shall be granted upon ascertaining that the applicant:
1/ owns or has leased a sesame or white pea beans warehouse which meets the standards set by the Ministry;
2/ employs procedures that enable to differentiate sesame or white pea beans that have different properties or standards; and
3/ owns a service catering office organized in a manner to be able to cater service.
10.    Application for Certificate of Competence
1/ Any person who wants to acquire a certificate of competence pursuant to this Regulation may present his application to the appropriate regional organ or, in case of an exporter, to the Ministry.
2/ The application shall contain evidences showing the fulfillment of the requirements provided for in this Regulation with respect to the issuance of the certificate of competence in question and other information that may be required pursuant to the directives to be issued by the Ministry or the appropriate regional organ.
3/ When the Ministry or the appropriate regional organ rejects the application, it shall state, in detail, the reasons for the rejection.
4/ Any applicant who is dissatisfied with the decision of the Ministry or the appropriate regional organ may, within 10 working days from the date of receipt of the decision, appeal to the Minister or the head of the appropriate regional organ, as appropriate. If the applicant is dissatisfied with the decision of the Minister or head of the appropriate regional organ, he may appeal, on question of law, to the federal or regional high court, as appropriate, within 20 working days from the date of receipt of the decision.
11.    Suspension or Revocation of Certificate of Competence
1/ When a person issued with a certificate of competence in accordance with his Regulation:
(a)    fails to maintain the conditions upon which the certificate of competence has been issued; or
(b)    contravenes the provisions of this Regulation or directives issued hereunder;
the Ministry or the appropriate regional organ may suspend the certificate of competence and instruct such person to rectify the irregularities within a specified reasonable period of time.
2/ When the holder of a certificate of competence issued in accordance with this Regulation:
(a)    is found to have obtained the certificate of competence upon presentation of false evidence; or
(b)    fails to rectify the irregularities which caused the suspension of the certificate of competence pursuant to sub-article (1) of this Article within the specified time limit;
the Ministry or the appropriate regional organ may revoke the certificate of competence.
3/ A person whose certificate of competence has been suspended or revoked may, within 20 days from the date of receipt of the decision, appeal to the Minister or the head of the appropriate regional organ, as appropriate. If he is dissatisfied with the decision of the Minister or head of the appropriate regional organ, he may appeal, on question of law, to the federal or regional high court, as appropriate, within 60 days from the date of receipt of the decision.
12.     Consequence of Suspension or Revocation
1/ A person whose certificate of competence has been suspended or revoked pursuant to Article 11 of this Regulation shall not engage in sesame or white pea beans transaction irrespective of the fact that his appeal against the suspension or revocation is under consideration.
2/ Notwithstanding sub-article (1) of this Article, a person whose certificate of competence has been suspended or revoked may authorize the use of his facilities, machineries and equipment that fulfill the requirements of this Regulation by another person holding a valid certificate of competence.

PART FOUR
OBLIGATION OF PERSONS INVOLVED IN SESAME

OR
WHITE PEA BEANS TRANSACTION OR SERVICE

13.    Obligations of Persons Involved in Transaction
Any person involved in sesame or white pea beans transaction shall:
1/ effect sesame or white pea beans transaction only at primary transaction centers and the Ethiopian Commodity Exchange in accordance with Article 3 and 4 of this Regulation.
2/ comply with all directives issued by the appropriate body for the proper execution of transaction;
3/ ensure, before loading sesame or white pea beans for transportation, that a vehicle and its driver comply with the provisions of this Regulation and directives issued pursuant to this Regulation;
4/ ensure that his sesame or white pea beans processing and storage facility as well as equipment maintain the required standard;
5/ submit a representative sample from the sesame or white pea beans prepared for transaction when so requested for quality inspection purposes;
6/ when transporting sesame or white pea beans from the production area to the Ethiopian Commodity Exchange or to the port, have it sealed by the appropriate executive body and obtain a letter of release from such body;
7/ maintain a register of the details of the daily sesame or white pea beans 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
8/ abstain from any act that may result in diminishing the acceptability of the country’s sesame or white pea beans.
14.    Obligations of Suppliers
Any supplier shall:
1/ sell on time the sesame or white pea beans purchased from primary transaction centers at the Ethiopian Commodity Exchange;
2/ ensure that the sesame or white pea beans submitted to the Ethiopian Commodity Exchange conforms to quality standards;
3/ supply for sell sesame or white pea beans from a particular origin without mixing it with sesame or white pea beans of other origins.
15.    Obligations of Exporters
Any exporter shall:
1/ process export sesame or white pea beans in accordance with the country’s quality standards or the quality standards of importing countries accepted by the country;
2/ not later than 24 hours after the conclusion of a contract of sale of sesame or white pea beans, have the contract and the correct sales price registered with the national Bank of Ethiopia, and notify the same to the Ministry and other concerned authorities within 15 days;
3/ export all supply sesame or white pea beans purchased at the Ethiopian Commodity Exchange within two months after the end of a harvest year;
4/ without prejudice to the extension of a contract permitted by the National Bank of Ethiopia upon showing sufficient reasons, perform the contract he concludes with a buyer on the due date;
5/ not introduce for re-trade to the Ethiopian Commodity Exchange sesame or white pea beans purchased at the Exchange, unless such sesame or white pea beans is a remain from export and the volume of which is less than a container.
16.    Obligations of Processors.
Any sesame or white pea beans products processor shall:
1/ buy sesame or white pea beans only at the Ethiopia Commodity Exchange; and
2/ not introduce for re-trade to the Ethiopian Commodity Exchange sesame or white pea beans purchased at the Exchange.
17.    Obligations of Service Providers
Any service provider shall:
1/ comply with all directives to be issued by the appropriate body for the proper provision of service;
2/ abstain from any act that may result in diminishing the acceptability of the country’s sesame or white pea beans;
3/ submit a representative sample from the sesame or white pea beans prepared for transaction when so requested for quality inspection purposes;
4/ process export sesame or white pea beans in accordance with the country’s quality standard or quality standard of importing countries accepted by the country.
18.    Obligations of Producer
1/ Any producer shall have the obligation to sale sesame or white pea beans produced from own farm at primary transaction centers or the Ethiopian Commodity Exchange.
2/ Notwithstanding sub-article (1) of this Article, any producer may, by himself or through a cooperative in which he is a member, directly export sesame or white pea beans produced from own farm.

PART FIVE
SESAME AND WHITE PEA BEANS QUALITY
AND TRANSACTIONS CONTROL

19.    Sesame and White Pea Beans Quality control
1/ The type and quality of sesame or white pea beans consigned to the Ethiopian 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 sesame or white pea beans shall, upon arrival at the Ethiopian Commodity Exchange, be graded through an appropriate examination based on a representative sample.
3/ The grade of export sesame or white pea beans shall be certified by the Ministry and be transported to the port of shipment in sealed bags.
20.    Assignment of Transaction and Quality Inspectors
1/ The Ministry and the appropriate regional organs shall, as may be appropriate, assign sesame and white pea bean transaction and quality inspectors.
2/ A person to be assigned as inspector pursuant to sub-article (1) of this Article shall have adequate knowledge of sesame and white pea beans transaction and quality and be of a proven ethical background.
21.    Powers and Duties of Transaction and Quality Inspectors
1/ For the purpose of ensuring compliance of the provisions of this Regulation and the directives issued in accordance with this Regulation a issued in accordance with this Regulation a sesame or white pea beans transaction and quality inspector assigned pursuant to Article 20 of this Regulation shall have the powers and duties to inspect:
(a)    sesame or white pea beans transactions at primary transaction centers;
(b)    production and processing of sesame or white pea beans by investors;
(c)    processing of sesame or white pea beans by suppliers, exporters and processors; and
(d)    transaction of sesame or white pea beans by suppliers, exporters, processors and carriers.
2/ A sesame or white pea beans transaction and quality inspector may, in the course of discharging his responsibilities under sub-article (1) of this Article:
(a)    enter, during working hours, any sesame or white pea beans warehouse or the site of a service provider and examine and take copies of relevant documents and take photographic evidences and samples of sesame or white pea beans;
(b)    stop and inspect any vehicle transporting sesame or white pea beans and demand the presentation of pertinent documents; and
(c)    make preliminary inspection on the quality, moisture and type of sesame or white pea beans, at the time of its loading, to be transported from producer or supplier to the Ethiopian Commodity Exchange.
3/ Without prejudice to the provisions of sub-article (2) of this Article, where a sesame or white pea beans transaction and quality inspector ascertains that the provisions of this Regulation or directives issued hereunder are contravened, he shall have the power, with a court warrant, to size, against issuance of a receipt, the illegally handled sesame or white pea beans or take sample of the sesame or white pea beans and seal the warehouse where the sesame or white pea beans is deposited.
4/ The sesame or white pea beans transaction and quality inspector shall immediately report to the Ministry or the appropriate regional organ on the action he has taken pursuant to sub-article (3) of this Article and follow the instructions of the Ministry or the appropriate regional organ for taking subsequent actions in accordance with Article 23 of this Regulation.
22.    Whistle Blowing
1/ Any person who is aware of an illegal act committed, in violation of the provisions of this Regulation or directives issued hereunder, in the course of processing, strong or transporting sesame or white pea beans or in the course of sesame or white pea beans transaction may report the same, in writing, to the nearest sesame or white pea beans transaction and quality inspector or to the Ministry or the appropriate regional organ.
2/ Any person who has submitted a report in accordance with sub-article (1) of this Article that led to the seizure of sesame or white pea beans subject to the illegal act shall be entitled to the payment of whistle blower’s commission pursuant to sub-article (4) (b) of Article 23 of this Regulation.
23.    Seized Sesame or White Bea Beans
1/ Any person whose sesame or white pea beans has been seized or his sesame or white pea beans warehouse had been sealed under sub-Article (3) of Article 21 of this Regulation may present his objection, within five working days, to the Ministry or the appropriate regional organ.
2/ The Ministry or the appropriate regional organ shall, within one week, examine and decide 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 sesame or white pea beans or the opening of the sealed sesame or white pea beans warehouse shall be immediately effected;
(b)    approves the actions of the inspector, the sesame or white pea beans shall, after retaining sample, be sold to suppliers at primary transaction centers or to exporters at the Ethiopian Commodity Exchange where it is supply sesame or white pea beans or to exporters at the Ethiopian Commodity Exchange where it is export sesame or white pea beans, 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 sesame or white pea beans who objects the decisions referred to in sub-article (2) (b) of this Article may lodge his appeal to the Federal High Court or the Regional High Court, as appropriate, within 30 days from the date of receipt of the decision.
4/ Where the Court to which an appeal 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 costs of sale, be paid to the owner of the sesame or white pea beans; or
(b)    upholds the decisions, or the owner fails to submit an appeal within the specified time limit, the proceeds of the sale shall, after deducting the amount of any commission to be paid to whistle blowers as calculated pursuant to directives of the Ministry, be transferred to the federal or regional government, as appropriate.

PART SIX
MISCELLANEOUS PROVISIONS

24.    Prohibitions
The following acts are prohibited:
1/ processing sesame or white pea beans, by any person in the sesame or white pea beans trading business, using technical procedures other than those issued by the Ministry or the appropriate regional organ;
2/ buying or selling, by any person in the sesame or white pea beans trading business, sesame or white pea beans outside the Ethiopia Commodity Exchange or a primary transaction center;
3/ storing, by any supplier, sesame or white pea beans for more than one harvest year, or by any exporter for a period exceeding the time limit specified under sub-article (3) of Article 15 of this Regulation;
4/ storing, by any person in the sesame or white pea beans trading business, sesame or white pea beans outside the authorized warehouse;
5/ transporting, by any person in the sesame or white pea beans transporting business, sesame or white pea beans in a manner that is below the standard of cleanliness or for a person that has no valid license;
6/ engaging, by any person in the sesame or white pea beans trading business or person directly or indirectly connected to the sesame or white pea beans trading business and for illegal gain, in any deliberate manipulation.
25.    Obligation to Cooperate
1/ Any person shall have the obligation to cooperate with the Ministry or the appropriate regional organ in the implementation of this Regulation.
2/ Police shall provide the necessary assistance to a sesame or white pea beans transaction and quality inspector in seizing, pursuant to sub-article (3) of Article 21 of this Regulation, sesame or white pea beans subject to illegal acts.
26.    Penalty
Any person who violates the provisions of this Regulation shall be punished in accordance with the relevant provisions of the Criminal Code.
27.    Power to Issue Directives
The Ministry may issue directives necessary for the implementation of this Regulation.
28.    Transitory Provisions
Any sesame or white pea beans supplier, exporter or service provider shall continue operating his business using his existing valid trade 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.
29.    Inapplicable Regulations and Directives
No regulations or directives shall, in so far as they are inconsistent with the provisions of this Regulation, have effect with respect to matters provided for by this Regulation.
30.    Effective Date
1/ This Regulation shall enter into force on the date of publication in the Federal Negarit Gazeta.
2/ Notwithstanding the provisions of sub-article (1) of this Article, the date by which sesame and while pea beans transactions begin to be conducted in accordance with the provisions of this Regulation shall be fixed by the Ministry.

Done at Addis Ababa, this 22nd day of May, 2010.
MELES ZENAWI
PRIME MINISTER OF THE FEDERAL DEMOCRATIC
REPUBLIC OF ETHIOPIA
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