Voluntary Report - public distribution

**Date:** 2006/11/24

**GAIN Report Number:** TW6045

TW6045

**Taiwan**

**Grain and Feed**

**Public Tender Update**

**2006**

**Approved by:**

![](media/image1.wmf)Alan Hallman

American Institute in Taiwan

**Prepared by:**

Chiou Mey Perng

**Report Highlights:**

Taiwan re-announced public sector rice tenders on November 17. The two
previous normal public sector tenders this year have been aborted and
canceled due to technical issues. Under the first-ever public sector
Simultaneous-Buy-Sell (SBS) tender for 5,000 MT, and its only completed
tender this year, Taiwan successfully contracted for 480 MT. The
re-announced normal tender is scheduled for December 1 for bids and
December 6 for price bids.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Taipei \[TW1\]

\[TW\]

**SBS Tender Result:**

While 16 importers reportedly participated in Taiwan's first
Simultaneous-Buy-Sell (SBS) public tender, only 480 tons out of the
announced 5,000 tons were awarded to two importers. COA will continue to
tender the remaining 4,520 tons of the SBS tender.

The awarded price in terms of import-market-difference is very close to
NT\$11.50/kg. (The SBS tender announcement was reported in TW6039.)

**Announcement of Normal Public Rice Tender:**

On November 17, Taiwan re-announced its normal public rice tender. The
tender is scheduled for technical biding on December 1 and price biding
on December 6. Taiwan has not successfully completed a traditional
public sector tender this year, aborting the 1^st^ tender of 14,000 tons
(reported in TW6034) and canceling another 23,795 tons (TW6041) of
previously scheduled tenders. The 1st tender was aborted because of
price issues after going through the tendering process twice. The
cancellation of the 2^nd^ tender was due to tender specification issues.
As of today, including 5,000 tons of SBS tender, Taiwan has announced
tenders for 28,500 tons of 2006 public quota rice on a brown rice basis
for public sector imports in 2006/2007, but only 480 tons on under the
SBS system has been contracted successfully.

The new tender consist of 12,000 tons of medium brown and 2,000 tons
each of long grain milled rice, medium grain milled rice, long grain
milled glutinous rice, short grain milled glutinous rice and medium
grain milled broken rice. For a total of 23,500 tons on a brown basis.
This is the first time that Taiwan has tendered for broken rice and
applies to a small sub-lot tonnage bid for the November 17 announced
tender. The minimal bid-lot size is 1,000 tons for medium grain brown
rice and 20 tons for the rest five 2,000-ton-tender. See below for
tender descriptions and attachments for broken rice specifications and
specification allowance. There will be penalties involved if the
contracted importer supplies COA with rice of quality falling beyond the
specification allowance.

**Tender Descrptions:**

[Tender Invitation No.: GF4-950193]{.underline}

Commodity: 12,000 Tons of Medium Grain Brown Rice

Crop Year: 2006

Technical Tender Date: December 1, 2006

Price Tender Date: December 6, 2006

Delivery Term: The rice needs to be delivered to the Council of
Agriculture (COA) designated Warehouses within 115 day from the tender
awarded/contracted date.

###### Tender Invitation No.: GF4-950194

Commodity: 2,000 tons of Long Grain Milled Rice (2,300 tons brown
equivalent).

Crop Year: 2006

Technical Tender Date: December 1, 2006

Price Tender Date: December 6, 2006

Delivery Term: The rice needs to be delivered to the COA designated
warehouses by March 15, 2007.

###### Tender Invitation No.: GF4-950195

Commodity: 2,000 tons of Medium Grain Milled Rice (2,300 tons brown
equivalent).

Crop Year: 2006

Technical Tender Date: December 1, 2006

Price Tender Date: December 6, 2006

Delivery Term: The rice needs to be delivered to the COA designated
warehouses by March 15, 2007.

###### Tender Invitation No.: GF4-950196

Commodity: 2,000 tons of Glutinous Long Grain Milled Rice (2,300 tons
brown equivalent).

Crop Year: 2006

Technical Tender Date: December 1, 2006

Price Tender Date: December 6, 2006

Delivery Term: The rice needs to be delivered to the COA designated
warehouses by January 31, 2007.

###### Tender Invitation No.: GF4-950218

Commodity: 2,000 tons of Glutinous Short Grain Milled Rice (2,300 tons
brown equivalent).

Crop Year: 2006

Technical Tender Date: December 1, 2006

Price Tender Date: December 6, 2006

Delivery Term: The rice needs to be delivered to the COA designated
warehouses by January 31, 2007.

###### Tender Invitation No.: GF4-950219

Commodity: 2,000 tons of Medium Grain Milled Broken Rice (2,300 tons
brown equivalent).

Crop Year: 2006

Technical Tender Date: December 1, 2006

Price Tender Date: December 6, 2006

Delivery Term: The rice needs to be delivered to the COA designated
warehouses within 115 day from the tender awarded/contracted date.

####### Attachments: (1) Specification of Broken Rice & (2) Its Specification Allowance

#######  

**[Attachment (1)]{.underline}**

**[Type and Quality Specification of Imported Medium Grain Milled Broken
Rice]{.underline}**

1\. Type:

(1) Medium grain (the ratio of length to width of whole kernel:
    2.1\~3.0）white Broken rice.

(2) Milling degree: well milled.

2\. Quality Specification:

<table style="width:100%;">
<colgroup>
<col style="width: 16%" />
<col style="width: 0%" />
<col style="width: 0%" />
<col style="width: 13%" />
<col style="width: 0%" />
<col style="width: 0%" />
<col style="width: 13%" />
<col style="width: 0%" />
<col style="width: 0%" />
<col style="width: 12%" />
<col style="width: 0%" />
<col style="width: 0%" />
<col style="width: 12%" />
<col style="width: 0%" />
<col style="width: 0%" />
<col style="width: 12%" />
<col style="width: 0%" />
<col style="width: 0%" />
<col style="width: 13%" />
<col style="width: 0%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="20"><p id="maximum-limit" class="heading">Maximum
Limit</p></td>
</tr>
<tr class="even">
<td>Moisture</td>
<td colspan="3">Impurities</td>
<td colspan="3">Damaged kernels</td>
<td colspan="3"><p>Heat</p>
<p>damaged kernels</p></td>
<td colspan="3">Off-type kernels</td>
<td colspan="5">Small brokens</td>
<td colspan="2">Whole kernels</td>
</tr>
<tr class="odd">
<td colspan="3">％</td>
<td colspan="3">％</td>
<td colspan="3">％</td>
<td colspan="3">％</td>
<td colspan="3">％</td>
<td colspan="2">％</td>
<td colspan="3">％</td>
</tr>
<tr class="even">
<td colspan="2">14.5</td>
<td colspan="3">0.2</td>
<td colspan="3">2</td>
<td colspan="3">0.3</td>
<td colspan="3">3</td>
<td colspan="2">5</td>
<td colspan="3">10</td>
<td></td>
</tr>
</tbody>
</table>

> Notes:
>
> 1\. Product shall not contain insect, insect eggs or residues, and the
> characters should meet the sanitary standards for general foods that
> were announced by the department of Health.

2\. The characters of appearance should be in accord with that of
original sample or be even better.

> 3\. The bran should be removed completely.
>
> Definitions：
>
> Characters of appearance: The degree of bran has been removed, the
> size of kernel, uniform, luster, etc.
>
> Impurities：The materials which pass through 1.4 mm sieve or which
> remain on the sieve other than rice kernels.
>
> Damaged kernels：Whole or broken kernels of rice which are distinctly
> damaged and deteriorated by moist, fungus and insect, or any other
> reasons, exclude heat damaged kernels.
>
> Heat damaged kernels: Whole or broken kernels of rice which are
> discolored to yellow or darker owing to microbiological heating.
>
> Off-type kernels：Kernels which are not the designated type.
>
> Small brokens:The small broken kernels that pass through 1.7 mm sieve
> (CNS386 Test Sieves), but which are remainded on the 1.4mm sieve.
>
> Whole kernels: Kernels of rice that are in whole condition without any
> broken part, including the kernels that have the length as from
> three-fourths onward.

**Attachment (2):**

Imported Medium Grain White Broken Rice Quality Allowance Specification

<table style="width:100%;">
<colgroup>
<col style="width: 22%" />
<col style="width: 0%" />
<col style="width: 19%" />
<col style="width: 0%" />
<col style="width: 19%" />
<col style="width: 0%" />
<col style="width: 19%" />
<col style="width: 0%" />
<col style="width: 19%" />
<col style="width: 0%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="10"><p id="maximum-limit-1" class="heading">Maximum
Limit</p></td>
</tr>
<tr class="even">
<td colspan="2">Moisture</td>
<td colspan="2">Impurities</td>
<td colspan="2">Damaged kernels</td>
<td colspan="2"><p>Heat</p>
<p>damaged kernels</p></td>
<td colspan="2">Off-type kernels</td>
</tr>
<tr class="odd">
<td colspan="2">％</td>
<td colspan="2">％</td>
<td colspan="2">％</td>
<td colspan="2">％</td>
<td colspan="2">％</td>
</tr>
<tr class="even">
<td>15</td>
<td colspan="2">0. 3</td>
<td colspan="2">4</td>
<td colspan="2">0.5</td>
<td colspan="2">5</td>
<td></td>
</tr>
</tbody>
</table>

> Notes:

1\. Product shall not contain insect, insect eggs or residues, and shall
not have rotten or foreign odor.

2\. The characters of appearance should be in accord with that of
original sample or be even better.

3\. The bran should be removed completely.