Recently, the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) has issued the measures for trial implementation for the inspection and quarantine supervision of imported soybean used for futures delivery, revised the Requirements for Inspection and Quarantine Supervision and Management of Imported Soybean for Futures Delivery. The introduction of the reform measures will provide more convenience for enterprises to participate in delivery.
No. 2 Soybeans futures are mainly oriented toward imported soybean. Since its listing in 2004, the market has been inactive due to the unsmooth delivery process.
Under the guidance of the animal and plant department of AQSIQ, Liaoning Province Entry-Exit Inspection and Quarantine Bureau worked with DCE to revise the Requirements for Inspection and Quarantine Supervision and Management of Imported Soybean for Futures Delivery after nearly 3 years of thorough research, survey, demonstration and solicitation of market opinions. On the premise of strictly abiding by the current regulatory laws and regulations, the enterprises have been provided with five convenient measures for importing soybean and participating in the physical delivery of the No. 2 Soybean futures: first, the enterprises are allowed to use the capacity of the futures delivery warehouses to deal with the quarantine permit application process of imported soybean; second, it is allowed to quickly change the quarantine permits' usage between futures delivery and processing raw materials, thus guaranteeing the monthly deliverable supply at millions of tonnes; third, inventory of imported soybean for processing is allowed to transform into soybean for futures delivery, therefore enabling small and medium-sized enterprises to smoothly participate in delivery; fourth, new designated futures delivery warehouses have been added, thus expanding the delivery areas from the three provinces of Liaoning, Shandong and Jiangsu to China’s major coastal and riverside provinces; fifth, the AQSIQ has authorized Liaoning Province Entry-Exit Inspection and Quarantine Bureau and DCE to jointly develop the “Imported Soybean Futures Supervision Information System”, thus providing technical support and safety guarantee for the smooth implementation of the policy.
In the next stage, the quality inspection department and DCE will continue to make joint efforts and accelerate progress in the following three aspects: first, carry out development and testing for the “Imported Soybean Futures Supervision Information System” and complete the integration and linkage with the permit examination and approval, spot goods logistics supervision and other systems at AQSIQ, in order to be technically well prepared; second, we will make effective plan for the supervision over the spot logistics, and take various measures such as GPS tracking to monitor the flow directions and amounts of the imported soybean in the futures delivery, so as to ensure the safe and controllable process; third, on the basis of the changes in the spot market in recent yeas, we will revise and improve the contract and rules for the No. 2 Soybeans futures, make innovation in the delivery system to provide more convenience for both buyers and sellers to participate in futures delivery, and strive to list the new contracts as soon as possible.
