Exporting Dual-Use Items from China

At the beginning of this month, China’s Ministry of Commerce (MOFCOM) added several U.S. defense companies to its strict export control list. This move follows the introduction of China’s new and stringent export control law, People’s Republic of China’s Regulations on Export Control of Dual-Use Items (effective December 1, 2024). The law primarily targets dual-use items—commodities that can be utilized for both military and civilian purposes. Politically, the new export controls from China focus mainly on a critical mineral known as antimony. While the emphasis is on antimony, other dual-use commodities are also impacted by these actions. If you export dual-use items from China, you are required to obtain an export license from MOFCOM.

Export licenses can be acquired from China’s MOFCOM to export dual-use items.  According to the People’s Republic of China’s Regulations on Export Control of Dual-Use Items, there are three types of licenses available for U.S. exporters:

Individual License – to export a dual-use item to a single end user. The license validity shall not exceed one year. If the export is completed, then the license is deemed to be automatically invalid.

General License – to export a dual-use item multiple times to a single or multiple end users. The validity of this license shall not exceed three years.

Export Certification – before exporting certain dual-use items, exporters should register with MOFCOM and in accordance with the circumstances enumerated under Section 6 of the regulations, obtain the Export Certificate. This process allows exporters to export specific dual-use items with some reporting requirements.

Exporters who wish to obtain a license must implement a robust internal compliance system. To establish or evaluate your internal compliance framework, refer to MOFCOM’s Guidance on the Establishment of Internal Compliance Mechanisms for Export Controls to establish their internal dual-use export control compliance system. Exporters on China’s watch list or entity list would not be able to export items from China.

After submitting the application, it typically takes about 45 days to receive a determination from the Chinese government. If necessary, the review process may extend beyond the standard 45 days. If an export has significant national security impacts, added scrutiny and additional approvals from the State Council or the Central Military Commission could be required.

If your business depends on the import and export of dual-use items from China and you require assistance, please contact an international trade lawyer at Centre Law today.