Briefing on the Second Session of the Fourth Council of the National Tungsten and Tungsten Products Association

　　On July 17, 2012, the Second Session of the Fourth Council of the National Tungsten and Tungsten Products Association was held in Taiyuan, Shanxi Province. Our company’s General Manager, Wang Jiaqiang, and Business Department Manager, Li Jinchao, attended the meeting. The main agenda items were as follows:

　　1. Briefly describe the recent utilization of quota licenses for tungsten and tungsten products.

　　In 2011, exports totaled 5,637 tons of APT, with a quota utilization rate of 99.95%, and 10,512 tons of tungsten trioxide, with a quota utilization rate of 99.27%.

　　In the first half of 2012, exports totaled 1,614.60 tons of APT, with a quota utilization rate of 53.18%, and 3,334 tons of tungsten trioxide, with a quota utilization rate of 63.10%.

　　2. The quota‑license management system will be appropriately adjusted: going forward, the types and quantities of tungsten and antimony export quotas may be converted automatically online, with conversion based on a fixed conversion rate that reflects the degree of processing—from low to high—and which is irreversible.

　　3. The Chinese government is actively addressing the WTO litigation initiated by the United States, Japan, Mexico, the European Union, and other countries regarding export restrictions on China’s rare earths, tungsten, and other products, and is undertaking corresponding negotiation and defense efforts.

　　4. With regard to the inconsistent assessment of export value used by China’s customs authorities for tariff purposes when declaring tungsten and tungsten products for export, the participating delegates reported this issue to the ministerial leaders in attendance, urging the State to establish a unified standard for customs valuation in tax collection. At the same time, the delegates agreed that the China Chamber of Commerce for Import & Export of Minerals & Chemicals would submit, on their behalf, our views and recommendations on this matter to the relevant higher-level authorities.

　　5. Discuss the 2013 export allocation plan, as well as the criteria for enterprises eligible to engage in export activities and those qualified to supply goods.

　　Finalize the plan for allocating quota quantities of tungsten and tungsten products for the year 2013.