Article 68 An applicant applying to be a Designated Delivery Storage Facility shall meet the following criteria:
1. Having corresponding commodity storage business qualification which satisfies the local laws and regulations; having bonded storage business qualification if applying for the bonded delivery business;
2. Having sound financial condition and comparatively strong risk resistance capacity; having the amount of registered capital and net assets as prescribed by the Exchange;
3. Its warehouse storage capacity or factory production capacity satisfying the requirements prescribed by the Exchange;
4. Having good business reputation and no record of severe violations or disqualification of the Designated Delivery Storage Facility within the last three (3) years;
5. Having complete rules and sound systems for the production of relevant commodities, and the management of their load-in, load-out and storage; security and measurement of such commodities satisfying the requirements of relevant laws, regulations and industry rules;
6. Having a professional management team in which the senior managers shall have over five (5) years of production or storage facility management experience;
7. Having sound transportation, as well as sound and complete terminal facilities, ports and equipment thereof;
8. Recognizing and undertaking to abide by the General Exchange Rules, these Delivery Rules, etc.; and
9. Other requirements prescribed by the Exchange.
The Exchange is entitled to waive one or more conditions above depending on the financial condition, risk management capabilities and soundness of operation of the applicant.

Article 69 An applicant applying to be a Designated Delivery Storage Facility shall submit the following materials:
1. An application letter with valid signatures.
2. Certificates proving the establishment of enterprises such as the Business License, the Organization Code Certificate and the Tax Registration Certificate, qualification certificates for commodity storage business, and qualification certificates of metrology personnel.
3. Audit reports in the past two years issued by a Certified Public Accountant (CPA) firm.
4. Land use certificates (or Land lease contracts), terminal use certificates (or terminal lease contracts), and relevant supporting documents about port conditions and equipment.
5. Approval documents on the application for the Designated Delivery Storage Facility issued by the superior authority or the Board of directors of the applicant.
6. A guarantee letter of joint liability that satisfies the Exchange’s requirements.
7. Rules, systems and introductions of commodity load-in, load-out and storage management; resumes of the persons in charge and the management team.
8. Other documents required by the Exchange.
Relevant documents and materials may be waived at the Exchange’s discretion.

Article 70 The review and approval of the Designated Delivery Storage Facilities shall follow the following procedures:
1. The Exchange conducts a preliminary examination.
2. After the preliminary examination, the Exchange is entitled to conduct an on-site investigation and assessment.
3. Based on the results of the on-site investigation and assessment, and the provisions of the laws and regulations, the Exchange selects the best applicants and enters into an agreement of Designated Delivery Storage Facility with the candidate.

Article 71 After becoming a Designated Delivery Storage Facility as approved by the Exchange, the Designated Delivery Storage Facility shall:
1. Pay the performance deposit according to the requirements stipulated in the agreement of Designated Delivery Storage Facility.
2. Appoint one supervisor in charge of the futures delivery business and appoint designated personnel in charge of managing the delivery commodities and conducting the standard warrant businesses. The management shall be trained by the Exchange for delivery businesses.
3. Formulate operation instructions according to these Delivery Rules, and develop relevant futures delivery businesses only after the Exchange’s verification and approval.

4. Satisfy other requirements prescribed by the Exchange.

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