Trading Rules of BOCE Cross-border Platform
Chapter 1 General Rules
With the support of the People's Bank of China, Bohai Commodity Exchange (hereinafter referred to
as "BOCE") has become the first pilot platform for RMB settlement in cross-border trade in China. According to laws and the policy of cross-border RMB settlement, BOCE designs multiple trading modes including bidding, listing, and order with systematical and technical innovation, helping Chinese buyers buy premium products of global sellers. This will solve four problems of “pricing, selling, collecting payment, and financing”, letting buyers get “genuine, inexpensive, andconvenient” goods.
Article 2 This rule is stipulated to normalize spot market of cross-border products, and keep the order of market by the principle of “openness, fairness, and impartiality”, which helps traders evade market risk and protect their benefit. The stipulation is in accordance with national laws, sticking to the service goal of innovation, efficiency, and pragmatism.
Article 3 Traders shall obey this rule when they engage in cross-border trade on cross-border trade platform of BOCE (hereinafter referred to as “the platform”).
Article 4 Market described in this rule means a venue or online trade platform which is established by law or registers at the administration office of industry and commerce, conducting cross-border trade openly and regularly with supporting services of information display, settlement, logistics and so on.
Article 5 This rule is applicable for trade and other activities on the platform. Organizations of BOCE, traders, announcement organization of bonded warehouse warrant, settlement bank, designated delivery warehouse and their employees shall obey this rule.
Chapter 2 Terms and Definition
Article 6 Trader means an enterprise conduct cross-border trade at BOCE after signing the agreement with BOCE. “Seller” means overseas supplier transferring ownership of the goods as trade regulations stipulate. “Buyer” means domestic purchaser receiving ownership of the goods with payment as trade regulations stipulate.
Article 7 Bonded bulk goods mean imports without tax paying are put in bonded warehouse, and are transported out of the border after processing and assembling, becoming reimporting goods. “Registered warehouse warrant” means ownership certificate which traders owns bonded goods. “Electronic contract” means a legally binding agreement for the buyer and seller, which is generated by the platform after the buyer and seller make a deal on it.
Article 8 Designated delivery warehouses mean bonded warehouses or other eligible warehouses, which is verified and authorized by BOCE with bonded function of storage, checking before acceptance, and issuing bonded warehouse warrant.
Article 9 BOCEPAY means a method of online payment which traders conduct settlement through cross-border RMB payment channel of BOCE.
Article 10 Bidding trade means a buyer (or seller) applies to the platform, which will notice multiple sellers (or buyers) the trading objects for them to bid and to finish trade in stipulated trading hours.
Article 11 Listing trade means traders announce trade information including product name, manufacturer, quality, price, quantity, delivery place, methods of picking up goods, etc. through BOCE’s trade platform. It consists of seller listing and buyer listing.
Article 12 Order trade means the buyer and seller agree to deliver immediately or in a certain period in order to deliver physical goods.
Article 13 Picking the list means the buyer responds to the offer of listing party through listing trade system of BOCE.
Article 14 Counter offer means the buyer reject the previous offer and return a new offer to the listing party through listing trade system of BOCE.
Article 15 Deposit means one party makes an assurance of fulfilling the contract to the other party, paying performance bond to the platform.
Chapter 3 Trading Venue and Trading Hours
Article 16 BOCE places the variety of trading objects with the business development. Goods on the platform are bulk commodities with outstanding cross-order feature and high dependence of import and export.
Article 17 Trading objects of the platform include:
1. Bonded bulk goods
2. Physical goods in transit;
3. Physical goods in overseas warehouses;
4. Future goods scheduled by the contract
Article 18 The platform will take following trading modes:
1. Bidding Trade
2. Listing Trade
3. Order Trade
Article 19 Trading Price shall be “net price” excluding import tariff and value-added tax of import. All trade shall use RMB for quotation, and settlement with the charge unit of yuan. US dollars or other exchangeable currencies can be used for paying performance bond of spot trade.
Article 20 Traders can sign a contract by paying in full amount or paying performance bond.
Article 21 Before a product is listed, the platform shall stipulate: product name, product code, unit of measurement, brand and specification, trading hours, listing modes, performance bond and payment time, rule of closing a deal, procedure of signing a contract, service fee, etc.
Chapter 4 Trader
Article 22 Traders (producer, distributer, consumer, etc.) shall not participate in spot trade on the cross-border platform until they register on the platform and pass the verification.
Article 23 To become an overseas seller, enterprise shall satisfy following demands:
1. Enterprise shall register in its country, engaging in business related with goods for trade;
2. Enterprise shall obey this rule and relevant regulations of the cross-border platform;
3. Enterprise shall obey other requirements of the cross-border platform.
Article 24 To become a domestic buyer, enterprise shall satisfy following demands:
1. Enterprise shall register at administration office of industry and commerce, engaging in business related with goods for trade;
2. Enterprise shall have enough fund and reputation;
3. Enterprise shall obey this rule and relevant regulations of the cross-border platform;
4. Enterprise shall obey other requirements of the cross-border platform.
Article 25 To become a trader, enterprises shall provide with materials, within 10 working days after passing the platform verification, finishing matters as follows:
1. Enterprise shall sign an agreement with the cross-border platform;
2. Enterprise shall sign an agreement with designated settlement bank;
3. Enterprise shall open an account of special fund at the designated settlement bank;
4. Enterprise shall pay fees according to regulations of the cross-border platform;
5. Enterprise shall obey other requirements of the cross-border platform.
Article 26 The platform is entitled to cancel the qualification of traders if they are in one of following situation:
1. Enterprise disobey national laws, rules, and regulations;
2. Enterprise violates this rule and regulations seriously;
3. Enterprise does not pay fees as regulations stipulate;
4. Enterprise shall obey other requirements of the cross-border platform.
Chapter 5 Trade and Settlement
Article 27 Traders shall conduct trade as BOCE regulates. Specific trading modes follow the trade procedure of BOCE.
Article 28 BOCE and its employees shall not become traders or participate in trade.
Article 29 Traders shall conduct trade within the trade time regulated by BOCE. BOCE is entitled to adjust the trade time.
Article 30 BOCE shall announce specific trading hours, whose open time and close time are based on the system time of BOCE platform.
Article 31 Traders shall pay service fee to BOCE.
Article 32 Traders shall set up a settlement account designated by BOCE, saving its performance bond, settlement fund, etc. That account is also used for settlement.
Article 33 BOCE shall announce the contribution rate, payment time, and adjustment of performance bond.
Article 34 Traders can set up time limit of listing, ordering or bidding, which shall be within the trading hours of BOCE.
Chapter 6 Closing a Deal and Delivery
Article 35 Seller shall pay performance bond, and sign confirmation through trade platform of BOCE, supplementing the lacking part.
Article 36 BOCE shall announce the contribution rate, payment time, and adjustment of performance bond.
Article 37 After confirmation takes effect, BOCE shall froze the performance bond.
Article 38 If buyers and sellers finish the delivery, they will pay service fee to BOCE. BOCE is entitled to adjust the service fee according to the situation of the market and specific traders.
Article 39 Delivery is a process that the seller delivers product and transfers ownership of the goods to the buyer, while the buyer pays the seller in accordance with relevant regulations of BOCE and the contract.
Chapter 7 Resolution of the Breach of Contract and Rules
Article 40 According to the principle of “openness, fairness, and impartiality”, BOCE shall investigate and confirm traders’ breach of contract and rules, mediating between traders with restrictions and punishments. If the breach cases are illegal, they shall be referred to department of administrative law-enforcing or judicial authorities.
Chapter 8 Dispute Resolution
Article 41 Traders can settle their disputes by negotiation, or refer them to BOCE for mediation.
Article 42 The parties shall submit written mediation application to BOCE. Mediation statement shall not take effect until the parties confirm and seal on it.
Article 43 If the negotiation or mediation fails, the dispute shall be referred to China International Economic and Trade Arbitration Commission for arbitration.
Chapter 9 Supervision and Management
Article 44 According to this rule and relevant laws, BOCE is entitled to supervise and manage trade business.
Chapter 10 Supplementary Articles
Article 45 According to this rule, BOCE is entitled to formulate management rules of specific business.
Article 46 BOCE reserves the right of interpretation.
Article 47 BOCE will update trade system, improving trade rules, which facilitates trade most.
Article 48 This rule goes into effect since it is announced.
Article 49 If there is any inconsistency, discrepancy or conflict between the Chinese and English versions of the rules, the Chinese version shall prevail.