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Procurement Policies

      All the procurement of TSC must comply with the relevant provisions of the Government Procurement Act in order to achieve justice, openness and fairness, and the results have been good. The internal control system set up the Key Points for Financial and Labor Procurement Operations, Key Points for Bulk Grain Purchase, Operating Points of Project Purchase and Performance Management, and Operating Points of Public Selection of Technical Service and Labor Procurement. TSC has set up an outsourcing center as a dedicated unit in charge of purchasing and organizes doubts, objections, complaints and consulting related to the Government Procurement Act so as to complete the procurement system and increase procurement efficiency. New suppliers and existing suppliers should all meet the requirements of the Procurement Act.
      The selection of suppliers follows the prescriptions of the Government Procurement Act and also considers the sources of supply or services provided by domestic suppliers to support domestic industries. At present, apart from the 100% of bulk grain raw materials in the Animal Industry Business and sugar raw materials in the Sugar Business that are imported from abroad, domestic suppliers are prioritized for the supply of the remaining raw materials. In addition, it is clearly stated in all relevant bidding documents that new suppliers shall comply with the principles of fair trade, environmental protection regulations, Labor Standards Act, and Occupational Safety and Health Act. It is hoped that by requiring new suppliers, TSC and its suppliers can jointly fulfill corporate social responsibility and reach corporate sustainable development. Due to the complexity of human rights assessment mechanism, TSC currently screens the suppliers based on the self-assessment of the human rights compliance prescribed in the agreement by the suppliers. In 2019, the percentage of new supplier meeting the selection criteria reached 100%.

Issues of concern & Conditions of new suppliers
Aspect Issues of concern Conditions of new suppliers
Environment New environment management New suppliers shall comply with environmental regulations such as the Air Pollution Control Act, Water Pollution Control Act, and regulations concerning waste and resources management. If there are any violations of related laws and regulations, improvements have to be made as prescribed. If the circumstances are serious, TSC may terminate or cancel the contract with the supplier.
Human rights Employee grievance channel 1. Due to the complexity of human rights assessment mechanism, TSC currently screens the suppliers based on the self-assessment of the human rights compliance prescribed in the agreement by the suppliers
2. The suppliers shall hire people with disabilities and aborigines in accordance with Peoples with Disabilities Rights Protection Act, Indigenous Peoples Employment Rights Protection Act and Government Procurement Act.
3. The new suppliers shall not have gender discrimination or discriminate against indigenous or vulnerable groups in the hire of employees.
Society Anti-corruption advocacy  
Community impact response mechanism
1. New suppliers must not request, agree to accept, accept or provide a bribe, commission, percentage, brokerage, kickback, rebate, gift, treat or other improper benefits from the procurement personnel.   
2. The bidding documents shall specify the contact number, fax and address of the audit team and the report hotline and mail box of the investigation station (station or group) of the Investigation Bureau of Ministry of Justice to report cases of corruption.
Labor Employee salary and benefits
Occupational safety and health
Industrial safety performance
To maintain labor conditions and safety, it is required to comply with the relevant regulations concerning labor safety and health. In addition, the Precautions for Occupational Safety and Health of Engineering and Labor Services” is formulated, prescribing that when handling procurement cases that exceed one-tenth of the amount announced, the precautions shall be included in the tender documents as part of the procurement contract, requiring suppliers to implement occupational safety and health management.
Product Quality assurance
Product labeling
1. To formulate “Key Points for the Quality Management Operations of the Manufacturing Companies” to ensure the quality of the products comply with the requirements of TSC and the provisions of the Act Governing Food Safety and Sanitation. In addition, vendor review, production supervision, product acceptance and vendor evaluation are also conducted for the new suppliers’ design, manufacture and assembly of products.  
2. Quality plan shall be established based on the project contract, design drawings, specifications, relevant technical regulations and the outline of the reference quality plan for the promotion and implementation.

      The main raw materials imported in 2019 include raw sugar, corn and soybeans. No recycled raw materials were used as the raw materials for the production of food products.
In 2019, the total purchase amount (based on the contract amount) was NTD 12,808,214,373. Among them, the purchase amount of bulk grain purchase and imported sugar was NTD 4,045,338,810. In 2019, the amount of foreign purchases accounted for approximately 31.58% of the total purchase and the domestic purchases accounted for 68.42%.

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