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mbaaspirant80
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this is truly confusing, but I believe the answer is
Required - Reporting to authorities the foreign components used.
Not Permitted - Buying more than 70% of a component from one country.

Explanation: E can be eliminated.
D is not right because there can be 2 suppliers: country X and one other foreign country. (A,B,C,...)
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Why can't it be option 1 for second part ?
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Why can't it be option 1 for second part ?
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I believe the phrase "for any individual component" makes E a correct answer choice for Not permitted section as this phrase makes it a compulsion to have minimum of two suppliers for each and every component used whereas in the contrary option E is saying that a components used is purchased from a single supplier.

Also, the phrase "for certain medications" makes A an incorrect answer choice for Not permitted because the word "certain" has a limitation that it does not include each and every component used and hence it cannot be precisely ascertained that the component whose 70% quantity has been bought from a single country is certainly that component for which the regulation is made.
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1st Preference: "for any individual component..."
vs 2nd Preference: "for certain medications..."
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