Details of China’s new standards for coke producers/exporters

Details of China’s new standards for coke producers/exporters

The 92nd public announcement this year from China’s Ministry of Commerce outlines the qualification standards for coking coal producers and export enterprises in 2006. (I) Producers 1. The producers should register with the Industrial and Commercial Administration Bureau according to relevant regulations, obtain the qualification of import and export business, or register with the Foreign Trade Administration and have independent legal representation. 2. The enterprises should meet the requirements of the Standards of Accession to the Coking Coal Industry (No.76 public announcement of National Development and Reform Commission in 2004) and other relevant industry policies. In other words, the annual output should be more than 600’000 metric tons and sales volume should be 200’000 metric tons. The annual output of foundry coke producers should be over 500’000 metric tons. 3. The product quality should meet the requirements of the existing national standard and get authentication of ISO9000 Quality Management System. 4. The enterprises should meet the second rate requirements of China’s environmental standards on coking coal industry (HT/T126－2003). These enterprises should have environment-protecting equipment, and their release of contamination should meet the requirements of the Standards on the Release of Polluted Water(GB8978－1996) and the Standard on Emission of Polluted Gases (GB16297－1998). In addition to being ISO14000 Environment Management System certified, the enterprises should meet the requests of the provincial environmental production department and get its certificate. 5. Enterprises should meet the requirements of the regulations of national land management. 6. Enterprises should obey the terms of relevant laws and regulations of the country and local governments. The must be in compliance with laws regarding the payment of pensions, unemployment, medical insurance and workers compensation. 7. Enterprises should not be in violation of relevant national laws and regulations. (II) Exporters 1. The enterprises should register with the Industrial and Commercial Administration Bureau according to relevant regulations, obtain the qualification of doing import and export business, or register with the Foreign Trade Administration and have independent legal representation. 2. The registered capital should be more than RMB 50 million ($6.2 million). The average annual export volume of coking coal in the most recent three years (2002-2004) should be more than 120’000 metric tons, or its business ranges meet the requirement of doing domestic coking coal trade and the average annual sales volume of coking coal from 2002 to 2004 exceeded 300’000 metric tons. 3. The products for export should be purchased from those enterprises that meet the requirements of industry accession standards. Enterprises should be ready to provide related certificates and invoices of purchase and sale. 4. Enterprises should obey the terms of relevant laws and regulations of the country and local governments. The must be in compliance with laws regarding the payment of pensions, unemployment, medical insurance and workers compensation. 5. Enterprises should not be in violation of relevant national laws and regulations. (III) In western regions (where few companies meet the above requirements), the provincial or autonomous government can recommend an enterprise. Producers should meet the requirements of 3, 4, and 5 in item (I). Export enterprises should have a registered capital of more than RMB 10 million ($1.2 million) and meet the requirements of 1, 3, 4, and 5 in item (II). (IV) In those regions where some border business was concluded in the most recent three years (2002-2004), the provincial, autonomous or local government can recommend no more than three companies who have such business. Producers should be in accordance with 3, 4 and 5 in item (I). Export enterprises should have a registered capital of more than RMB 5 million ($620’000) and meet the requests of item 1, 3, 4 and 5 in item (II). (V) In western regions, enterprises that meet the requirements stipulated in (I) and (II) will not enjoy the preferential policy stated in item (III). (VI) Foreign-funded enterprises should export coking coal in compliance with the existing regulations. SteelOrbis Shanghai