Issued by: Ministry of Commerce of the People’s Republic of China
Announcement No. 76, 2012
Date of Issuance: October 31, 2012

In order to protect resources and environment, coordinate with the state industrial policies, further strengthen the export administration of rare metal and standardize the order of export business, the Requirements and Procedures for Applying for Export Quotas of Indium, Molybdenum and Tin in 2013 is now promulgated in accordance with relevant provisions of the Foreign Trade Law of the People’s Republic of China and the Regulation of the People’s Republic of China on the Administration of the Import and Export of Goods.

I. Requirements for Applying for the Export Quota of Indium
Enterprises that obtained the export quota in 2012 and new applying enterprises may apply for export quota of indium in 2013 if they meet the following requirements:

A. Production enterprises
a. Enterprises approved by relevant departments to carry out production, complying with industrial policies, having obtained import and export operation qualifications or handling filing registration formalities for foreign trade dealers, and equipping with independent legal personality.
b. In case of new applying enterprises, their average outputs from 2009 to 2011 shall meet the following standards: above 12 tons for lead, zinc, copper, tin and antimony smelting enterprises; above 18 tons for zinc chemical production enterprises; and above 22 tons for independent recovery processing enterprises. The output data shall be subject to the review of the trade organization.
c. In case of independent recovery processing enterprises, the processing of crude indium and refined indium shall be completed within the same corporate enterprise.
d. Enterprises whose product quality meets the prevailing industry standard and that has passed the ISO9000 quality system certification at provincial level and the ISO14000 environmental management system certification.
e. Enterprises that meet the prevailing national standards in terms of industrial dust, waste water, exhaust emission, etc. and provide the monitoring report issued by the provincial environmental protection department then, including:

(i) realizing zero discharge of waste water in smelting process; and reaching the national first class emission standard in term of the emission of sulfur dioxide (SO2) and arsenic hydride (AsH3);
(ii) equipped with comprehensive recovery system for the treatment of smelting waste slag free of “3 Wastes” discharge; and
(iii) smelting enterprises shall not transfer smelting waste water and slag containing indium to any third party.
f. The recovery rate of indium from main metal residues shall be no less than 80%.
g. The process and equipment for production and environmental protection are advanced, and major device, apparatus and instrument are manufactured after 1995.
h. Concentrate and primary raw materials purchased by smelting enterprises shall be from mining enterprises with mining licenses, and the imported raw materials used by them shall be provided with relevant legal procedures.
i. Raw materials purchased by independent recovery enterprises shall be provided with certificate of legal source.
j. If the products of any enterprise are listed in the Export Catalogue of High-tech Products in China issued by the Ministry of Science and Technology, the Ministry of Commerce, the Ministry of Finance, the State Administration of Taxation and the General Administration of Customs, or the Chinese High-tech Products Catalogue released by the Ministry of Science and Technology, or high-tech products identified by the Ministry of Science and Technology, the second criterion above shall be lowered appropriately according to specific conditions.
k. Enterprises shall abide by relevant national laws and regulations and relevant provisions of local governments, join such social insurance as pension, unemployment insurance, medical care, work injury and maternity insurance according to law and pay the full social insurance charges on time, and provide relevant certificates evidencing the full payment of various social insurance charges on time as issued by the local competent human resources and social security departments above prefectural level.
l. Enterprises had no behaviors violating relevant state laws and regulations during 2009-2011.

B. Circulation enterprises
a. Enterprises having obtained import and export operation qualifications or handling filing registration formalities for foreign trade dealers, and acting as an independent legal entity for more than five years.
b. Enterprises with a registered capital of above RMB70 million.
c. Enterprises that obtained export quota and had indium export performance from 2009 to 2011 (performance of enterprises that obtained export quota in 2012 are not assessed for now), and the export performance from customs statistics shall apply.
d. Enterprises shall purchase the products of production enterprises with indium export qualifications.
e. Enterprises that have passed the national ISO9000 series quality system certification.

f. Enterprises shall abide by relevant national laws and regulations and relevant provisions of local governments, join such social insurance as pension, unemployment insurance, medical care, work injury and maternity insurance according to law and pay the full social insurance charges on time, and provide relevant certificates evidencing the full payment of various social insurance charges on time as issued by the local competent human resources and social security departments above prefectural level.
g. Enterprises had no behaviors violating relevant state laws and regulations during 2009-2011.
h. Circulation enterprises having production entities may refer to relevant standards for production enterprises.

II. Requirements for Applying for the Export Quota of Molybdenum
Enterprises that obtained the export quota in 2012 and new applying enterprises may apply for export quota of molybdenum in 2013 if they meet the following requirements:

A. Production enterprises
a. Enterprises approved by relevant departments to carry out production, complying with industrial policies, having obtained import and export operation qualifications or handling filing registration formalities for foreign trade dealers, and enterprises with independent legal personality.
b. In case of new applying enterprises, their average outputs from 2009 to 2011 shall meet the following standards: the comprehensive production of ferromolybdenum and molybdenum oxide (equivalent to roasted molybdenum concentrate) is above 6,000 tons; the grade of molybdenum in roasted molybdenum concentrate is more than 51%; the grade of molybdenum in ferromolybdenum is more than 55%; the output of molybdate is above 1,600 tons; and the output of molybdenum powder and molybdenum metal work is more than 600 tons. The output data shall be the amount of domestic sales reviewed by the trade organization.
c. Enterprises that have passed the ISO9000 series quality system certification. Enterprises currently undergoing certification process shall provide relevant supporting materials.
d. The recovery rate of roasted molybdenum concentrate, ferromolybdenum, ammonium molybdate and molybdenum powder shall be no less than 96%, 98%, 95% and 98% respectively.
e. The comprehensive energy consumption of roasted molybdenum concentrate shall be less than 0.4 ton standard coal per ton of output; the perrin process is adopted for the production of ferromolybdenum without direct coal, electricity and gas consumption; the leaching process is adopted for the production of ammonium molybdate with low energy consumption; and the energy consumption of molybdenum powder is less than 3.5 tons of standard coals per ton of output.
f. Enterprises shall have special analysis and testing laboratory equipped with complete equipment for analysis and testing.

g. Enterprises shall obtain standard pollutants discharge licenses issued by the environmental protection department, and provide the environmental monitoring report issued by the provincial environmental protection department evidencing its standard pollutants discharge this year.
h. Enterprises shall take the following environmental protection measures:
Process for roasted molybdenum concentrate: leaching tower and other equipment are used to absorb gas sulfur dioxide. Enterprises are encouraged to adopt recovered gas sulfur dioxide acid plant.
Process for ammonium molybdate: neutralizing tower is used for exhaust gas treatment, and sequestering tank and filter plant are used for the treatment of waste water.
i. Enterprises shall prepare appropriate safety precautions and necessary emergency measures.
j. If the products of any enterprise are listed in the Export Catalogue of High-tech Products in China issued by the Ministry of Science and Technology, the Ministry of Commerce, the Ministry of Finance, the State Administration of Taxation and the General Administration of Customs, or the Chinese High-tech Products Catalogue released by the Ministry of Science and Technology, or high-tech products identified by the Ministry of Science and Technology, the second criterion above may be lowered appropriately according to specific conditions.
k. Enterprises shall abide by relevant national laws and regulations and relevant provisions of local governments, join such social insurance as pension, unemployment insurance, medical care, work injury and maternity insurance according to law and pay the full social insurance charges on time, and provide relevant certificates evidencing the full payment of various social insurance charges on time as issued by the local competent human resources and social security departments above prefectural level.
l. Enterprises had no behaviors violating relevant state laws and regulations during 2009-2011.

B. Circulation enterprises
a. Enterprises having obtained import and export operation qualifications or handling filing registration formalities for foreign trade dealers, and acting as an independent legal entity for more than five years.
b. Enterprises with a registered capital of above RMB30 million.
c. Enterprises shall purchase the products of production enterprises with molybdenum export qualifications.
d. Enterprises that have passed the national ISO9000 series quality system certification.
e. Enterprises shall abide by relevant national laws and regulations and relevant provisions of local governments, join such social insurance as pension, unemployment insurance, medical care, work injury and maternity insurance according to law and pay the full social insurance charges on time, and provide relevant certificates evidencing the full payment of various social insurance charges on time as issued by the local competent human resources and social security departments above prefectural level.

f. Enterprises had no behaviors violating relevant state laws and regulations during 2009-2011.
g. Circulation enterprises having production entities may refer to relevant standards for production enterprises.

III. Relevant Review and Application Procedures
Local competent departments of commerce shall, according to application criteria for export quotas of indium and molybdenum in 2013, conduct primary examination on enterprises within the area applying for indium and molybdenum export qualifications, and submit the list of enterprises meeting annual examination criteria and the opinions of primary examination to the Ministry of Commerce before November 25, 2012 (Department of Foreign Trade, only electronic copies of relevant application materials of enterprises to be attached) and also forward the same to China Chamber of Commerce of Metals Minerals & Chemicals Importers & Exporters (hereinafter referred to as “CCCMC”, written copies of enterprise-related materials and electronic copies of the Summary Statistics to be attached, please see the Annex; while the forms to be filled in by such enterprises are available on the website of CCCMC).
Enterprises under the Central Government shall directly submit the applications and relevant materials to the Ministry of Commerce (Department of Foreign Trade, only electronic copies of relevant materials of enterprises to be attached) and forward the same to CCCMC (both written and electronic copies of enterprise-related materials to be attached, and the forms to be filled in by such enterprises are available on the website of CCCMC).
Entrusted by the Ministry of Commerce, CCCMC and China Non-ferrous Metals Industry Association will review the conditions of enterprises applying for export quotas of indium and molybdenum, and give industrial opinions then submit them to the Ministry of Commerce (Department of Foreign Trade) before December 1, 2012.
The Ministry of Commerce will examine and approve the enterprises which meet the requirements for applying for the export quotas according to review opinions of CCCMC and China Non-ferrous Metals Industry Association, and, if no objections are made after publicity on the website of the Ministry of Commerce, carry out quotas allocation based on the calculation formula then announce such quotas allocation and such enterprises.

IV. Materials to be Submitted
When applying for the export quotas of indium and molybdenum, enterprises shall submit the following materials, which shall be confirmed by the signature of legal representative of the applying enterprise.
A. a copy of the Counterpart of Business License of Enterprise Legal Person of the applying enterprise, the Registration Form for Foreign Trade Dealers or the People’s Republic of China Qualification Certificate of Import and Export Enterprise affixed with the seal for filing and registration, the customs business unit code of the applying enterprise and the enterprise code.

B. documents certifying compliance with environmental law issued by the environmental protection department above the provincial level, including the standard pollutants discharge license and the standard major pollutants discharge certificate (original of the environmental monitoring report) issued by the environmental protection department.
C. ISO9000 QMS Certificate and ISO1400 series environment management system certification.
D. production enterprises shall provide copies or scanned copies of VAT invoices of relevant products in 2011 (together with the originals for future reference). Any person who provides false invoices, once verified to be true, will be immediately disqualified from applying for the export quota, and the right to transfer it to the tax authorities for settlement will be reserved.
E. relevant certificates evidencing the participation of such social insurance as pension, unemployment insurance, medical care, work injury and maternity insurance as well as the full payment of various social insurance charges on time as issued by the local competent human resources and social security departments above prefectural level.
F. other relevant supporting materials.

V. The qualification standards for tin export enterprises are temporarily not revised, the annual examination criteria and review procedures for which shall still be subject to relevant prevailing provisions.

Annex: Summary of Review Opinions on Requirements of Export Enterprises for Applying for Quotas of Molybdenum and Indium in 2013

Ministry of Commerce of the People’s Republic of China
October 31, 2012