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Annual due diligence survey report

Responsible Purchasing Policy
2021revision02
Document No.:CG-QW-10

In order to ensure the legitimacy of our tantalum raw material source, realize the traceability of tantalum raw material and also achieve the requirements of Responsible Mineral supply chains(RMI)in conflict-affected and high risk areas. We ask all of our suppliers must obey the following rules:
一. our company promises that we do not ban all purchases of tantalum materials from conflict-affected and high-risk areas, but only those minerals that lead to or exacerbate conflict, human rights violations, tax evasion and money laundering.Ensure that all the tantalum raw materials supplied by all of our suppliers do not involve all of the risk categories outlined in the OECD template policy;
1. Regarding serious abuses associated with the extraction,transport or trade of minerals.While sourcing from,or operating in conflict-affected and high-risk areas,we will neither tolerate nor by any means profit from, contribute to, assist with or facilitate the commission by any part of:
(1)Any form of torture,cruel, inhuman and degrading treatment;
(2)Any forms of forced or compulsory labour, which means work or service which is extracted from any person under the menace of penalty and for which said person has not offered himself voluntarily;
(3)The worst forms of child labor;
(4)Other gross human rights violations and abuses such as widespread sexual violence;
(5)War crimes or other serious violations of international humanitarian law,crimes against humanity or genocide.
If we have reasonable grounds to believe that risk exists, that is, the upstream supplier is purchasing from any party that commits the serious infringements listed above or is associated with that party, our company will immediately suspend or terminate cooperation with the supplier.
2. Regarding direct or indirect support to non-state armed groups.We will not tolerate any direct or indirect support to non-state armed groups through the extraction,transport,trade,handling or export of minerals.“Direct or indirect support”to non-state armed groups through the extraction,transport,handling or export of minerals includes, but is not limited to, procuring minerals from, making payment to or otherwise providing logistical assistance or equipment to, non-state armed groups or their affiliates who:
(1)Illegally control mine sites or otherwise control transportation routes, points where minerals are traded and upstream actor in the supply chain;
(2)Illegally tax or extort money or minerals at points of access to mine sites, along transportation routes or at points where minerals are traded;
(3)Illegally tax or extort intermediaries, export companies or international traders.
If we have reasonable grounds to believe that an upstream supplier is purchasing or has a relationship with any party that provides direct or indirect support to a non-state armed group, we will immediately suspend or terminate cooperation with that supplier.
3.Regarding public or private security forces. We agree to eliminate, direct or indirect support to public or private security forces who illegally control mine sites, transportation routes and upstream actors in the supply chain; illegally tax or extort money or minerals at point of access to mine sites, along transportation routes or at points where minerals are traded, or illegally tax or extort intermediaries, export companies or international traders.
We recognize that the role of public or private security forces at the mine sites and/or surrounding areas and/or along transportation routes should be solely to maintain the rule of law,including safeguarding human rights, providing security to mine workers, equipment and facilities, and protecting the mine site or transportation routes from interference with legitimate extraction and trade.
If we find that there is such a risk to a certain extent,we will immediately formulate, adopt and implement a risk management plan for upstream suppliers and other stakeholders according to the specific position of the enterprise in the supply chain, so that the risk of direct or indirect support to public or private security forces is contained or reduced.If the  implementation of the risk management does not work, we will temporarily suspend or the cooperation with upstream suppliers.
4.Regarding bribery and fraudulent misrepresentation of the origin of minerals.We will not offer, promise, give or demand any bribes, and will resist the solicitation of bribes to conceal or disguise the origin of minerals, to misrepresent taxes, fees and royalties paid to governments for the purposes of mineral extraction, trade,handling, transport and export.
Regarding money laundering. We will support efforts, or take steps, to contribute to effective elimination of money laundering where we identify a reasonable risk of money-laundering resulting from, or connected to , the extraction, trade, handling, transport or export of minerals derived from the illegal taxation or extortion of minerals at points of access to mine sites, along transportation routes or at points where minerals are traded by upstream suppliers.
Regarding the payment of taxes, fees and royalties due to governments.We will ensure that all taxes, fees, and royalties related to mineral extraction,trade, and export from conflict-affected and high -risk areas are paid to governments and, in accordance with the company’s position in the supply chain, we commit to disclose such payments in accordance with the principles set forth under the Extractive Industry Transparency Initiative(EITI).
In accordance with the specific position of the company in the supply chain, we commit to engage with suppliers, central or local government authorities, international organization, civil society and affected third parties, as appropriate, to improve and track performance with a view to preventing or mitigating risk of adverse impacts through measurable steps taken in reasonable timescales.We will suspend or discontinue engagement with upstream suppliers after failed attempts at mitigation.

二、Management of suppliers.At present ,we only purchase the tantalum raw materials from the supplier which audited and certified compliant smelters by the third party, such as RMI. For processing trade,we ask the supplier provide enough documents to certificate the legal sources as we said above .
三、We will audit the suppliers’ tantalum raw materials sources from time to time. Supplier who do not meet RMI requirements and our documents management requirements will be required to rectify within a time limit, we will not purchase any tantalum raw materials or tantalum intermediate products from such supplier during the period of rectification .Can not re-establish procurement until it is in compliance.
四、Grievance mechanism. We have set up a compliant channel to listen to opinions and continue to improve.We will widely promote the above procurement policies, including but not limited to suppliers, customers, and communities. Meanwhile, we are committed to complying with relevant UN sanction;resolutions, complying with Chinese Law applicable to the implementation of such resolutions, and committing not to provide any assistance or convenience to the conflict. If the risk of procurement is not reduced in a timely manner, we will suspend or terminate the cooperation with  relevant suppliers.

Complaint sent to:annali@taike-sz.com
Contact:黎末娜 Anna Li(0512-65760786  13808419701)

                                              Taike Technology(Suzhou)CO.,Ltd. 


 



 
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