Laws of the People's Republic of China

Announcement No.86, 2006 of the Ministry of Commerce on Promulgating Qualification Standards for State Trade Export Enterprises of Tungsten Products, Stibium Products and Silver of 2007, Qualification Standards on Export Supplying Enterprises of Tungsten Products, Stibium Products of 2007, and Annual Examination Declaration Procedures

[2006] No.86

In accordance with regulations of the Provisional Measures on Export Administration on Tungsten and Tungsten Products, and Stibium and Stibium Products, Provisional Measures on Qualification Standards on Export Supplying Enterprises of Tungsten Products and Stibium Products, and the Administrative Measures on Silver Export, the Qualification Standards on State Trade Export Enterprises of Tungsten Products, Stibium Products and Silver of 2007, Qualification Standards on Export Supplying Enterprises of Tungsten Products, Stibium Products of 2007, and the Annual Examination Declaration Procedures are now announced (foreign-invested enterprises are excluded).

Appendix:

1.

Qualification Standards on State Trade Export Enterprises of Tungsten Products in 2007

2.

Qualification Standards on State Trade Export Enterprises of Stibium Products in 2007

3.

Qualification Standards on State Trade Export Enterprises of Silver in 2007

4.

Qualification Standards on Export Supplying Enterprises of Tungsten Products in 2007

5.

Qualification Standards on Export Supplying Enterprises of Stibium Products in 2007

6.

Annual Examination Declaration Procedures for the Qualification Examination as State Trade Export Enterprises Tungsten Products, Stibium Products and Silver or Export Supplying Enterprises of Tungsten Products, Stibium Products in 2007

The Ministry of Commerce

November 3, 2006 Appendix 1 Qualification Standards on State Trade Export Enterprises of Tungsten Products in 2007

1.

A registration by the administrative authority for industry and commerce in accordance with relevant stipulations of the State is practiced and the import and export operation qualification or the record and registration of foreign trade operators has been acquired together with a possession of independent legal personality.

2.

The IS09000 quality system is certified and passed.

3.

The relevant laws and regulations of the State and local governments are abided by, various social insurances for pension, unemployment, medical care, occupational injury and maternity are effected and the insurance premium is paid in full amount and on due time, with a proof for the payment issued by the local labor and social security department.

4.

The circulating enterprise must, in accordance with the stipulations in The Interim Measures on the Qualification Certification of Export Suppliers of Tungsten Products and Stibium Products, purchase the products of the manufacturing enterprise who has acquired the qualification as an export supplier.

5.

The circulating enterprise's amount of exportation of tungsten products per year from 2003 to 2005 exceeds 180 tons with the statistics issued by General Administration of Customs as reference.

6.

None violation of the State's relevant laws and regulations from 2003 to 2005 is recorded.

7.

The manufacturing enterprise must also fulfill the following conditions:

(1)

A metallurgy and processing enterprise examined and approved by the State's relevant authorities;

(2)

The standardized discharge certificate granted by the environment protection department at the provincial level is acquired, together with the environmental monitoring report provided by the department on the standardized discharge of the current year;

(3)

For the tungsten manufacturing enterprise, tungsten products are its staple, and according to the average annual output in 2004 and 2005, the amount of producing and processing, which equals to APT, is 3,000 tons or above per year, and the output of tungsten powder and tungsten carbide alloy (or tungsten filament, tungsten material, etc.) is 500 tons or above per year;

Under the same conditions, priority is given to the enterprise integrating exploration, selection and metallurgy with a long chain of products and a high proportion of deep processing.(4) If the product of the enterprise is listed on the Exportation Catalogue of Chinese New and High Technology Products issued by the Ministry of Science and Technology, Ministry of Commerce, Ministry of Finance, General Tax Bureau and the General Administration of Customs, or on the Catalogue of Chinese New and High Technology Products issued by the Ministry of Science and Technology, or if the product of the enterprise is identified as the new and high technology product by the Ministry of Science and Technology, the third condition may be alleviated according to the individual case of the product.

Appendix 2 Qualification Standards on State Trade Export Enterprises of Stibium Products in 2007

1.

A registration by the administrative authority for industry and commerce in accordance with relevant stipulations of the State is practiced and the import and export operation qualification has been acquired, or the registration as a foreign trade operator has been acquired together with a possession of independent legal personality.

2.

The IS09000 quality system is certified and passed.

3.

The relevant laws and regulations of the State and local governments are abided by, various social insurances for pension, unemployment, medical care, occupational injury and maternity are effected and the insurance premium is paid in full amount and on due time, with a proof for the payment issued by the local labor and social security department.

4.

The circulating enterprise must, in accordance with the stipulations in The Interim Measures on the Certification of Export Suppliers of Tungsten Products and Stibium Products, purchase the products of the manufacturing enterprise who has acquired the qualification as an export supplier.

5.

The circulating enterprise's average amount of exportation of stibium products per year from 2003 to 2005 is 190 tons or above, with the statistics issued by the General Administration of Customs as reference.

6.

None violation of the State's relevant laws and regulations from 2003 to 2005 is recorded.

7.

The manufacturing enterprise must also fulfill the following conditions:

(1)

A metallurgy and processing enterprise examined and approved by the State's relevant authorities;

(2)

The standardized discharge certificate granted by the environment protection department at the provincial level is acquired, together with the environmental monitoring report provided by the department on the standardized discharge of the current year;

(3)

For the stibium manufacturing enterprise, stibium products are its staple, and according to the average annual output in 2004 and 2005, the producing and processing amount of refined stibium is 5,000 tons or above per year, and the output of antimony oxide is 3,000 tons or above per year;

Under the same conditions, priority is given to the enterprise integrating exploration, selection and metallurgy with a long chain of products and a high proportion of deep processing.

(4)

If the product of the enterprise is listed on the Exportation Catalogue of Chinese New and High Technology Products issued by the Ministry of Science and Technology, Ministry of Commerce, Ministry of Finance, General Tax Bureau and the General Administration of Customs, or on the Catalogue of Chinese New and High Technology Products issued by the Ministry of Science and Technology, or if the product of the enterprise is identified as the new and high technology product by the Ministry of Science and Technology, the third condition may be alleviated according to the individual case of the product.

Appendix 3 Qualification Standards on State Trade Export Enterprises of Silver in 2007

1.

Manufacturing Enterprise

(1)

A registration by the administrative authority for industry and commerce in accordance with relevant stipulations of the State is practiced and the import and export operation qualification has been acquired, or the record and registration of foreign trade operators has been acquired together with a possession of independent legal personality for two years or above.

(2)

For the manufacturing enterprise in the west of China, an annual output of silver is 30 tons or above, for others, that is 60 tons or above, with the statistics of 2005 issued by the State Bureau of Statistics as reference.

(3)

If the product of the enterprise is listed on the Exportation Catalogue of Chinese New and High Technology Products issued by the Ministry of Science and Technology, Ministry of Commerce, Ministry of Finance, General Tax Bureau and the General Administration of Customs, or on the Catalogue of Chinese New and High Technology Products issued by the Ministry of Science and Technology, or if the product of the enterprise is identified as the new and high technology product by the Ministry of Science and Technology, the second condition may be alleviated according to the individual case of the product.

(4)

The discharge of industrial dust, waste water, and exhaust gas emitted through the production process of the manufacturing enterprise fulfills the State's current standards (especially the arsenical dust and water from the fire smelting process of dore silver, which must be decontaminated), and the standardized discharge certificate granted by the environmental protection department at the provincial level has been acquired, together with the environmental monitoring report provided by the department on the standardized discharge of the current year.

(5)

The dore silver smelting process and the electrolyzing smelting process are accomplished within the same enterprise as a legal person, and the environmental protection measures in the electrolyzing production of dore silver fulfill the requirements in Item (4)

(6)

When the silver recycling enterprise processes argentiferous waste, secondary-pollution must be avoided and the discharge must reach the State's current standards.

(7)

The production of manufacturing enterprise is in accordance with the requirements in Law on Safety in Production of the People's Republic of China, the quality of the products reaches the State's current standards, and there is no complaint on the quality of the products from clients.

(8)

The relevant laws and regulations of the State and local government are abided by, various social insurances for pension, unemployment, medical care, occupational injury and maternity are effected and the insurance premium is paid in full amount and on due time, with a proof for the payment issued by the local labor and social security department.

(9)

The IS09000 quality system is certified and passed.

(10)

None violation of the State's relevant laws and regulations from 2003 to 2005 is recorded.

Under the same conditions, priority is given in the examination and approval of the export trade qualification to the enterprise which has passed the ISO14000 environmental management standards certification, has registered the trademark of its products to the international market, and has established a long chain of products and a high proportion of deep processing.

2.

Circulating Enterprise

(1)

A registration by the administrative authority for industry and commerce in accordance with relevant stipulations of the State is practiced and the import and export operation qualification has been acquired, or the registration as a foreign trade operator has been acquired together with a possession of independent legal personality for five years or above.

(2)

The business performance on silver products from 2003 to 2005 is sound.

(3)

The annual import and export value of the foreign trade circulating enterprise in the western area is $50,000,000 or above, and the value of the enterprise in other areas is $100,000,000 or above, with the statistics of 2005 issued by the General Administration of Customs as reference.

(4)

The relevant laws and regulations of the State and local government are abided by, various social insurances for pension, unemployment, medical care, occupational injury and maternity are effected and the insurance premium is paid in full amount and on due time, with a proof for the payment issued by the local labor and social security department.

(5)

The IS09000 quality system is certified and passed.

(6)

None violation of the State's relevant laws and regulations from 2003 to 2005 is recorded.

Appendix 4 Qualification Standards on Export Supplying Enterprises of Tungsten Products in 2007

1.

The export supplying enterprise of Tungsten products must be a smelting and processing enterprise examined and approved by the State's relevant authorities.

2.

The production capacity of tungsten products that equals to ammonium paratungstate (APT) is above 3,000 tons (with the existing production capacity by the end of 2005 as reference and hereinafter the same), and the average amount of export supply from 2003 to 2005 is above 1,000 tons per year.

Under the same conditions, priority is given to the enterprise integrating exploration, selection and metallurgy with a long chain of products and a high proportion of deep processing.

3.

The quality of the products has reached current standards of the State or the standards in the field, and the IS09000 quality system is certified and passed.

4.

The relevant laws and regulations of the State and local government are abided by, various social insurances for pension, unemployment, medical care, occupational injury and maternity are effected and the insurance premium is paid in full amount and on due time, with a proof for the payment issued by the local labor and social security department.

5.

The recovery ratio for the main process from tungsten concentrates to APT is above 90%, and from APT to tungsten powder is above 97%.

6.

The energy consumption from tungsten concentrates to APT is less than 1 ton of standard coal per ton of products, and from APT to tungsten powder is less than 4.6 tons of standard coal per ton of products.

7.

The discharge of industrial dust, waste water, and exhaust gas, which is approved by the environmental protection department at the provincial level, reaches the State's current standards, and the inspection report granted by the environmental protection department at the provincial level is acquired.

8.

The equipment is advanced, among which the major equipment, apparatus and instruments are manufactured in the 1990s and later.

9.

The tungsten concentrates and initial products purchased by the smelting enterprise are the products from the exploring enterprise with exploration permission and from smelting enterprise with export supplying qualification.

Appendix 5 Qualification Standards on Export Supplying Enterprises of Stibium Products in 2007

1.

The export supplying enterprise of stibium products must be a smelting and processing enterprise examined and approved by the State's relevant authorities.

2.

The production capacity of stibium products is above 4,000 tons (with the existing production capacity by the end of 2005 as reference and hereinafter the same), and the average amount of export supply from 2003 to 2005 is above 1,500 tons per year.

Under the same conditions, priority is given to the enterprise integrating exploration, selection and metallurgy with a long chain of products and a high proportion of deep processing.

3.

The quality of the products has reached current standards of the State or the standards in the field, and the IS09000 quality system is certified and passed.

4.

The relevant laws and regulations of the State and local governments are abided by, various social insurances for pension, unemployment, medical care, occupational injury and maternity are effected and the insurance premium is paid in full amount and on due time, with a proof for the payment issued by the local labor and social security department.

5.

The general recovery ratio for the process from stibium concentrates to refined stibium is above 80%.

6.

The energy consumption of stibium smelting is less than 1.27 tons of standard coal per ton of products.

7.

The discharge of industrial dust, waste water, and exhaust gas, which is approved by the environmental protection department at the provincial level, reaches the State's current standards, and the inspection report granted by the environmental protection department at the provincial level is acquired.

8.

The equipment is advanced, among which the major equipment, apparatus and instruments are manufactured in the 1990s and later.

9.

The stibium concentrates and initial products purchased by the smelting enterprise are the products from the exploring enterprise with exploration permission and from smelting enterprise with export supplying qualification.

Appendix 6

Annual Examination Declaration Procedures for the Qualification Examination as State Trade Export Enterprises of Tungsten Products, Stibium Products and Silver or Export Supplying Enterprises of Tungsten Products, Stibium Products in 2007

1.

The administrative department for commerce in each region , in accordance with the Appendix 1 and Appendix 2 and the requirements of the State's industrial policy, is to undertake the annual examination on qualification as the State trade export enterprise of tungsten and stibium products among the local enterprises that have acquired the qualification in 2006, and to report the opinion on the annual examination to the foreign trade department of the Ministry of Commerce before November 17, 2006. The annual examination on the enterprises under the administration of the central government is to be practiced by the Ministry of Commerce.

2.

The administrative department for commerce in each region, in accordance with the Appendix 3, is to undertake the annual examination on the local enterprises that have acquired the qualification as the State trade export enterprise of silver in 2006, and is to report the opinion on the annual examination, as well as the applications of the newly added enterprises that fulfill the requirements of State trade export enterprise of silver, to the foreign trade department of the Ministry of Commerce before November 17, 2006.

3.

The administrative department for commerce in each region, in accordance with the Appendix 4 and Appendix 5, is to undertake the annual examination on the local enterprises that have acquired the qualification as the export supplying enterprise of tungsten and stibium products in 2006, and is to report the opinion on the annual examination, as well as the applications of the newly added enterprises that fulfill the requirements of export supplying enterprise of tungsten and stibium products, to the foreign trade department of the Ministry of Commerce before November 17, 2006. The copy of the above documents is to be sent to the China Non-Ferrous Metals Industry Association, China Chamber of Commerce for Importers and Exporters of Metals, Minerals and Chemicals, and the China Tungsten Industry Association. The China Non-Ferrous Metals Industry Association, together with the China Chamber of Commerce for Importers and Exporters of Metals, Minerals and Chemicals and the China Tungsten Industry Association, is to generalize their professional opinion and report to the foreign trade department of the Ministry of Commerce before November 24, 2006.