National Strategic Reserve and Index Management System: The Ministry of Natural Resources of the State Council has determined the strategic reserves of rare earth resources and rare earth products. The local people's government at or above the county level is responsible for the supervision and protection of the national strategic reserve, and it may not be used without the approval of the natural resources department of the State Council.
The Ministry of Industry and Information Technology of the State Council will work with the development and reform and natural resources departments of the State Council to formulate targets for the extraction, smelting and separation of rare earths (hereinafter referred to as "targets"),and determine the total quota. Enterprises engaged in the above activities must abide by the use plan.
Traceability Information System: The Ministry of Industry and Information Technology of the State Council will jointly implement a traceability information system with other competent authorities through which they will collect data related to rare earth mining, smelting and separation activities. Such data will have to be uploaded directly by companies, which must indicate production and sales data, as well as packaging and invoice information. The packaging of rare earth products should comply with the relevant national mandatory standards and indicate the enterprises that provide rare earth products.
Violation and related penalties: The competent authority has the right to randomly select enterprises that carry out rare earth mining, smelting and separation activities for daily supervision and inspection. If the competent department discovers suspected illegal activities during the supervision process, it may seize the relevant rare earth products and equipment, and close the production and sale sites of rare earth products.
When it is determined to be an illegal activity, the draft bill stipulates the applicable penalties.
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