English
How does the “Export Control Law” regulate rare earths? The draft regulation stipulates the applicability of the Export Control Law (“ECL”) to exports of rare earths, which will affect industries that rely on these exports. Rare earth products may have to pass the export approval process provided by ECL. This means that the national export control administrative department can refuse its approval and prevent the export of rare earths when it deems it necessary.
In view of the foregoing, foreign companies carrying out import and export activities related to rare earths in China must ensure that their actions comply with ECL regulations. They may also need to plan ahead when purchasing rare earths in case their requests for trading activities are rejected.The main provisions of the bill We focused on the main provisions of the draft and conducted a brief analysis of the system introduced by the upcoming regulations, including applicable penalties in the event of violations.
Rare earth related activities:Rare earth mining refers to the production process of rock drilling, blasting, punching or excavation to directly obtain rare earth mineral products.Rare earth smelting separation refers to the production process of various single or mixed rare earth oxides, salts and other compounds produced after smelting and separating rare earth minerals.Rare earth metal smelting refers to the production process of using one or more rare earth oxides as raw materials to produce metals through molten salt electrolysis, metal thermal reduction or other methods.
Rare earth management and approval procedures:The draft introduces a coordination mechanism between different departments at or above the county level, and stipulates that each department will be responsible for the management of its rare earth industry. The State Council will formulate policies and solutions for major issues related to this field.
In addition, the draft provides mandatory approval procedures for investment in rare earth mines, smelting and beneficiation projects, and the “Regulations on the Administration of Enterprise Investment Project Approval and Record-filing” provides detailed procedures. Without approval, no unit or individual may invest in the construction of rare earth mines, rare earth smelting and separation projects.