China to Implement New Export Control Regulations for Dual-Use Items from December 2024

The State Council has announced theRegulations on the Export Control of Dual-Use Items of the People's Republic of China, which will go into effect on December 1, 2024. The Regulations apply to the export of dual-use items.

This was published in Order No. 792, following the review by the 41st executive meeting of the State Council.

The Regulations are divided into six chapters – general provisions, control policies, control lists and measures, supervision and management, legal responsibilities, and supplementary provisions. This article provides a summary for each chapter.

Three noteworthy aspects of the Regulations:

1. In terms of business qualifications, the current administrative regulations and rules regarding the registration system for exporters of dual-use items have been canceled. After the "Regulations" are implemented, exporters do not need to apply to register as exporters of dual-use items in advance and can directly apply for export licenses.
2. In terms of the transparency and standardization of export control policies, the factors and procedural regulations for formulating export control policies for dual-use items are provided in detail.
3. In terms of facilitation measures for licensing, the general license system is provided in detail, and the applicable conditions and procedures are specified. At the same time, aligning with international norms, for exports that meet specific circumstances, such as overseas repairs and exhibitions, exporters can "obtain export documents by registering and reporting information" and export through self-declaration.

A summary of the six chapters is provided below:

(1) Management System

Maintain the stability of the existing system, including stipulating that the competent commercial department of the State Council is responsible for the export control of dual-use items, and other relevant departments of the State Council are responsible for related work according to their duties.

(2) Control Policies and Control Lists

This stipulates that the competent commercial department of the State Council, in conjunction with relevant departments, formulates the export control policy for dual-use items. Details such as the export destination risk assessment system are refined. The procedures for establishing and adjusting the control list are specified, clarifying that opinions should be appropriately solicited and necessary industrial surveys and evaluations should be conducted.

(3) Control Measures

This abolishes the registration system for the export of dual-use items and establishes a multi-type license management system including individual licenses, general licenses, and exemptions from applying for licenses. This makes export supervision methods more diverse and flexible. It clarifies the time limit for license review, the validity period of the license, application materials for the license, and regulations on changes and withdrawal of the license.

(4) Supervision and Management

The competent commercial department of the State Council supervises and inspects the export activities of dual-use items and may organize item identification, take supervisory talks, issue warning letters, and other measures against relevant organizations and individuals.

(5) Legal Responsibilities

Regulations are set for administrative penalties for illegal acts such as exporting without a license, obtaining a license by improper means, providing services for illegal exports, and trading in violation of the control list regulations.

(6) Supplementary Provisions

Regulations are provided for the legal applicability of the transit, transshipment, through-shipment, re-export, or export from special customs supervision areas and bonded supervision places of dual-use items. The issues of connection with related laws and administrative regulations are clarified.

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