Ministry of Commerce to simplify the application conditions for rare earth export quotas next year

Compared to the previous year, the Ministry of Commerce has adjusted the requirements for companies applying for rare earth export quotas in 2013. This year, production enterprises are no longer required to possess "environmental protection facilities matching their production scale and ensure pollutant discharges comply with national or local standards." Instead, the relevant environmental protection departments have confirmed that the companies have paid their sewage fees in full and on time, with no record of environmental violations. Additionally, they have developed environmental emergency plans and supporting facilities. Previously, enterprises had to provide various environmental compliance documents, such as provincial-level environmental protection administrative punishment certificates, proof of timely and legal sewage fee payments, "three simultaneous" certification for construction projects, and major pollutant emission certifications (original environmental monitoring reports). These requirements have now been simplified. The Ministry of Commerce now specifies that companies applying for 2013 rare earth export quotas must source their products from enterprises meeting the environmental standards set by the Ministry of Environmental Protection. Last year's requirement was based on the criteria set by the Ministry of Commerce itself. It’s clear that the environmental protection requirements have shifted to align with the Ministry of Environmental Protection's regulatory standards. Since last November, the Ministry of Environmental Protection has released three batches of rare earth enterprises meeting environmental protection standards, totaling 80 companies—less than one-third of the total number of enterprises in the industry. A spokesperson for the Ministry of Environmental Protection noted last November that there are over 300 companies in the rare earth sector. From an environmental protection perspective, the industry's overall environmental standards remain relatively low, with significant issues regarding pollution and ecological damage. Additionally, the Ministry of Commerce no longer requires enterprises to have export performance from 2009 to 2011 if they were established or registered after January 1, 2007, nor does it require recognition of export performance among affiliated or associated enterprises through mergers. This change was made to reduce the complexity of operational concentration regulations. Based on the two batches of rare earth export quotas announced this year by the Ministry of Commerce, China’s total annual rare earth export quotas amount to 30,996 tons, representing an approximate 2.7% increase from last year's 30,184 tons. However, due to the global decline in demand for rare earths, the supply has dropped significantly over the past year. According to data from the China Customs Statistics Consulting Service Center, the export volume of rare earth ores, metals, and compounds in the first ten months of this year was 11,312 tons, a year-on-year decrease of 7.88%, accounting for only 36.50% of the annual quota. This situation highlights the ongoing challenges facing the rare earth export industry amidst fluctuating global demand.

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