Laws of the People's Republic of China

Announcement No. 47, 2006 of Ministry of Commerce, on Competitive Bidding of National Reserve of Sugar Processing

[2006] No. 47

In accordance with the requirement of Announcement 26, 2006 of National Development and Reform Commission, Ministry of Commerce and Ministry of Finance, part of national reserve of sugar shall be processed through competitive bidding. Matters of Concern are listed as follows:

1.

Organization and Management:

Assessment Group shall be established so as to confirm the processing enterprises, processing amount and expenses. Assessment Group shall also be in charge of the competitive bidding and the management of processing.

China Merchandise Reserve Management Center shall in charge of the tasks of organization and implementation.

2.

Processing Amount, Location out of Warehouse and Project Phases Division of Raw Sugar:

The processing total is 200,000 tons, which were put into storage from 2004 to 2005. See Appendix 1 for details.

Processing of raw sugar shall be conducted with competitive bidding after being divided into shares and coded. Each share is 5000 tons.

3.

Processing sort and Sugar Recovery:

The raw sugar is white granulated sugar. Sugar recovery shall be more than 92%.

4.

Product Sugar Quality, Package and Specification Requirement:

The quality of white granulated sugar shall be Grade one or above of National Standard GB317-1998. The Package quality of white granulated sugar shall meet the national standard. Net Content of each bag is 50 kg.

5.

Requirement on Allocate and Transport, Processing Schedule and Putting Product Sugar in Storage:

After being chosen, the processing enterprises shall be prepared promptly. Then, after receiving the notice on starting operation, the processing work shall be started in accordance with the required time. The product sugar shall be reserved in time into the warehousing storage. Taking delivery of goods shall be conducted directly at the product sugar depot of the processing enterprise.

6.

Competitive bidding of processing price is between 240-280 yuan per ton. Vicious competitive bidding on price shall be prohibited.

7.

Earnest Money for Bidding

Earnest money shall be submitted before 17: 00 pm of June 18, 2006.

8.

Qualification Requirements on Processing Enterprises:

The daily processing capacity of processing enterprises shall be no less than 500 tons and the storage capacity shall be no less than 20,000 tons. The processing enterprises shall be close to the storage location. The enterprises shall be creditworthy, with high credit grade and no negative records. (See Appendix for details)

Specific competitive bidding measures and points for attention shall be notified later.

Ministry of Commerce

June 15, 2006