Hong Kong traders were arrested for smuggling rare earths

January 21, 2015, according to the British metal mesh is understood that several traders trying to smuggle rare arrested from Guangzhou to Hong Kong Customs, market participants confirmed to be true.

This event also shows the firm determination of the Chinese after the elimination of quotas to regulate the market order, crack down on smuggling of rare earth.

A trader in Hong Kong, said three traders attempting to evade customs duties on Monday, Hong Kong was arrested for smuggling rare. Currently 15-25% of the tariff is still rare.

A Singapore trader said he learned two traders were arrested. One attempt to transport 10 containers of lanthanum oxide to enter Hong Kong, and another attempt to smuggle lanthanum cerium alloy, was also arrested.

It is understood that the two traders suspected of smuggling 200 tons and 40 tons of lanthanum oxide, lanthanum cerium alloys. Market participants from China, also confirmed to be true, China began to vigorously combat illegal rare earths.

Singapore trader explains rare now entering our very strict control, cargo clearance times longer than before. This situation will continue until the Chinese New Year. In addition, as China's rare earth producers will gradually discontinued before the Spring Festival holiday, rare earth prices overseas or will be picked up.

A trader in Hong Kong, said he did not understand why these traders do not apply for an export license. He also said that now the cost of entry into Hong Kong's rare to be a lot more expensive, mainly due to the smuggled goods brought some port charges.

Nevertheless, due to export tariffs and other controls, there are still many illegal rare earth in large numbers in the market. Chinese government realized the strategic resource protection hazards and illegal rare earth, rare earth began to increase efforts to crack down on black.

Hong Kong and Vietnam are the emergence of a large number of illegal rare earth materials market. Some Vietnamese illegal exploitation of rare earth ore is transported to China for processing into illegal rare earth, and then go back from the border smuggling.

In October last year, Hong Kong Customs has appeared once a thorough investigation, that is to check smuggling and counterfeit jewelry, when operating hours are longer, the transport of rare earths also caused delays.

RE prices in Europe has not yet affected. Cerium and other light rare earth stocks Rotterdam still more, but relatively few other heavy rare earth such as terbium and dysprosium inventory. Recently China's prices are still higher, dysprosium, gadolinium and neodymium prices to rise to varying degrees.


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RE working meeting will be held to enhance the industry boom Hope

January 23 news, the Ministry issued a notice on the 22nd, was held to determine the focus of Rare Earth provinces (regions) and corporate work conference on January 28.

According to the notice, the content of the meeting was summarized in 2011, "a number of opinions" issued, the main work and achievements of the rare earth industry to carry out; analysis of the new situation facing the industry and the problems; further clarify "Thirteen Five" and recent work in the direction and requirements, the main task of the deployment in 2015 and priorities.

By then, the rare member inter-ministerial coordination unit, the State Council Legislative Affairs Office, China Securities Regulatory Commission, the relevant provinces (autonomous regions and municipalities) rare earth industry management department, six large enterprise groups of rare earth, rare earth enterprises focus on the person in charge and some research institutes, China Rare Earth industry associations responsible persons will participate.

In addition, based on the information the media survey, the current RE market is not short off-season, this week, the price of collective rebound, the highest increase of nearly 8%, and the overall stock market low.

The industry believes that the program has been set up six Rare Earth Group MIIT record, coupled with an unprecedented round of rare intensity hitting the Ministry of Commerce decided to abolish tariffs on exports of rare earths, rare earths national attention on the value can be seen, will make the rare earth market has already fallen to the bottom of the welcome warm round of accelerated development.


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RE luminous fiber cited concern

Recently, in Shaoxing City, Jiangnan University Institute of luminous fibers exhibited a series of rare earth products has aroused great interest in the new local textile enterprises. These products include luminous silk, embroidery and other luminous 9 different colors of rare earth luminescent fiber material, light pull flannel, luminous fabric fuzz 11 different colors, such as rare earth luminescent luminous fiber textile fabrics, and luminous plush toys, LED Cross embroidered dozens of luminous fiber light products.

The use of rare earth luminescent fiber products made in the absorption of visible light for 10 minutes, will be able to build the energy stored in the fibers being in the dark state can continue to light more than 10 hours, not only colorful, but also environmentally friendly and efficient, and can be widely used in apparel, home textile and other industrial textiles and other fields. For example, it was luminous velvet Expo licensed products for "Haibao" production.

RE RE luminous luminous fiber is a national fiber-founder, "863" in the field of new materials technology expert database developed by Professor Ge Ming bridge products. Professor Ge has worked in Japan, the basic theory and application of more than six years of new fibers, after returning in May 2000 began to develop rare earth luminescent fiber, have higher achievements in theoretical studies of rare earth luminescent fiber, he invented and manufactured luminous fiber detection by the China Institute of Metrology, no radiation, in line with the requirements of the use of fiber for clothing, has applications for invention patents.


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Commerce Department: Rare earth export tariffs canceled after May 2

January 21, 2015 at the Ministry of Commerce for the first time at a regular press conference, the Ministry of Commerce spokesman Shen Danyang said that according to changes in domestic and international market development, and approval of the State Council, the Ministry of Commerce decided to January 1 from 2015 Japan began to cancel export quotas management, and retention of export tariffs, until May 2, 2015. This means that after the formal abolition of quotas of rare earth, rare earth outside attention when it canceled the first time with a clear timetable for tariff.

In recent years, for the effective protection and rational use of rare earth resources, regulate the industry market order, changes in development, resource class industrial transformation and upgrading, the Chinese government take full advantage of the economic and market instruments, adopted a series of measures to strengthen and improve the rare earths and other products export management, and promote the sustainable and healthy development of rare earth industry.
Last December 31, the Ministry of Commerce, General Administration of Customs Announcement No. 94 of 2014, published 2015 catalog of goods export license management, including rare earths, tungsten and tungsten products, molybdenum, etc., eight kinds of goods, with export contracts to apply export licenses without providing approval documents. This marks the official end of the self-Chinese rare earth export quota system implemented since 1998.

Shen Danyang said the cancellation of rare earth quota is to co-ordinate domestic and foreign markets, a specific trade policy options and resources, and is in line with product management reform domestic rare earth resources such a measure, but also considering the relevant WTO ruling the implementation of a policy carried out adjustments.


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Chinese rare earth quotas officially dispelled

Chinese Ministry of Commerce recently issued the "2015 list of goods export license management," clearly the export of rare earth export license management execution, only to get export business export license contract, without providing approval. This means that the implementation of the 16 years of the rare earth quota officially canceled.

The most immediate cause of this change, or China lost in the WTO (WTO) in the lawsuit.

China is the largest producer of rare earth, accounting for 90 percent of global supply. Although rare earths is an important component of the defense industry and the department of modern technology, for the military, computers, mobile phones, wind power equipment, batteries and other technology products are necessary, even though China has a natural "monopoly" advantage, but unfortunately, the advantages of the product to sell to the price of cabbage, and disorderly exploitation of serious damage to the environment.

To reduce resource depletion, since 1998, the implementation of a rare earth export quota license system, the rare earth materials included in the processing trade ban catalog, and in 2010 a large-scale reduction of rare earth exports. International RE prices soared along.

It also led to an international uproar of "rare earth war." Expression of the United States, Europe, Japan and other countries strong dissatisfaction that China's rare earth export control, the Chinese enterprises have a clear competitive advantage in hybrid car batteries, wind power settings and energy-efficient lighting equipment and other products.

Dispute eventually evolve into a lawsuit, the US, Europe and Japan jointly to the WTO against China rare earths, tungsten, molybdenum related products export management measures violate WTO rules. After several rounds of the fight, in August 2014, WTO final ruling, rare earth export management measures implemented in China does not comply with the relevant WTO rules and China's WTO commitments, China dismissed the appeal.

As a result, China must change related rare earth export management. Commerce Department said in a statement at the time, said: "China will carefully evaluate the WTO ruling, to comply with WTO rules and ways to strengthen the management of resources, products, and promote resource conservation, maintain fair competition, to achieve sustainable development."

Cancel started from 1998 rare earth export quota system, also in the market expected. Next, China will cancel the 25% -30% export tariff, this change is expected to be implemented in 2015 later.

From this case can be seen, although China since that system of quotas and restrictions on sale intended to protect the environment, but actually this rough management style, in violation of WTO rules, and therefore difficult to prevail on international litigation. This is the Western countries to initiate proceedings against China on many occasions and winning the main trade rules.

Of course, the "rare earth war" is not completely finished, but also China's move to retreat intentions. After all, the quota system in the early years of the larger impact on exports in recent years has been in name only, because many simply do not run out of quota. Data show that the rare earth export quota for the last three years are slightly higher than 30,000 tons, but in 2012 the actual exports less than 20,000 tons, in 2013 and 2014 can not exceed 300 million tons.

But, if the mere removal of rare earths export controls, a corollary to bring the rare earth export market turmoil, including Chinese exporters increased, lower prices may again rise behavior, the final result is the environment suffer, undervalued resource, foreign manufacturers benefit.

Therefore, while complying with WTO rulings revoke the relevant export controls, China must improve the rare earth and other resource management system products.

First, you must comply with the rules of the market and international trade rules, do not have to make hard and fast rules on exports to avoid giving others a handle and trigger a new lawsuit is likely to lose. Frankly, at the time of the management system has not been serious sober legal assessment, of course, for China to win a certain amount of time, but the overall effect is poor.

Secondly, to strengthen domestic regulation. RE market has been chaotic, disorderly exploitation of many manufacturers, serious damage to the environment, smuggling is repeated. According to incomplete statistics, in 2011 overseas Chinese customs statistics are rare import export statistics 1.2 times, that is 120% of the normal amount of smuggled exports, the government can increase the threshold for mining companies, mining of rare earth resources integration, including the promotion of rare earths corporate mergers and acquisitions, while cracking down on smuggling and violations of the environment.

Once again, change the export tax as a resource tax. Export taxes for immediate action to restrict exports, but can easily be criticized. The elimination of export taxes, the result is lower export prices, but it is to create the conditions to improve resource tax, the state still seize the initiative on the export of rare earth, rare earth due to the price of cabbage that does not make a great resource cheaper foreign manufacturers.

Of course, the domestic manufacturers in terms of the use of rare earth, rare earth and outside the price approximately equal to improve their use of rare earth costs, thereby reducing the competitive advantage. But the market is equal to follow the competition, Chinese manufacturers can not always rely on the bottle, can be innovation by tapping the potential to create new competitive advantages.


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