China: New export restrictions for aviation & aerospace sectors
Date of publication: July 8th, 2024
China Customs, the Ministry of Commerce, and the Equipment Development Department of the Central Military Commission have issued a joint announcement imposing new restrictions on export of certain components and technologies in the sectors of aviation and aerospace, starting from July 1st, 2024.
This regulation controls the export of dual-use items and technologies that could potentially be used for military or malicious purposes. By implementing these controls, China seeks to prevent the unauthorized transfer of sensitive technologies and ensure that exports are in line with its national security and foreign policy objectives. By introducing these controls, China expects to promote a more secure and stable global trade environment.
Major changes have been applied to Commodities, HS Codes and related sectors.
Export of following commodities will now require an export license from the Ministry of Commerce.
Commodity | HS Code | Industry |
|---|---|---|
Aerospace structural parts and engine manufacturing related equipment, software, and technology | 8203200010, 8204110010, 8204120010, 8205400010, 8205900010, 8206000010 | Fabricated Metal Products |
8480419010 | Machinery | |
7326901910 | Metal Industry | |
Gas turbine engine/gas turbine manufacturing related equipment, software, and technology | 6804219010, 6804229010 | Construction |
6903100010, 6903200010, 6903900010, 6909110010, 6909120010, 6909190010 | ||
7326901920, 7326901930 | Metal Industry | |
7616991020 | ||
8205900020, 8205900030, 8207201010, 8207209010, 8207300030 | Fabricated Metal Products | |
8428909030,8454301010, 8454309010,8466200010, 8480419020, 8480490010, 8480600010 | Machinery | |
9031809081, 9031809082 | Pharmaceuticals, Medical Products and Equipment | |
Spacesuit window related equipment, software, and technology | 8480719020 | Machinery |
Ultra-high molecular weight polyethylene fiber related items | 5402491010, 5501900010, 5503909010, 5806409010 | Textile |
Export licensing procedure
Exporters need to meet the requirements below to obtain the export license.
Procedure | Details |
|---|---|
1. Submit Application | Submit an application to the Ministry of Commerce through the provincial- level competent department of commerce, fill in the application form for the export of dual-use items and technologies. |
2. Required Documents | (1) Original or copy of export contract or agreement, (2) Technical description or test report, (3) End-user and end-use certification, (4) Introductions of importers and end-users, (5) Identity certificate of applicant's |legal representative, main business manager, and handler. |
3. Ministry of Commerce Examination | Conduct an examination of the export application documents, make a decision on whether to approve or disapprove the license within the statutory time limit. |
4. License Issuance | Issue an export license for dual-use items and technologies if approved. |
5. Special Circumstances | Handle special circumstances, retention period of documents and materials in accordance with Decree No. 29 of 2005. |
6. Customs Formalities | Exporters shall issue export licenses to Customs, go through customs formalities, and accept customs supervision. Customs shall go through inspection and release procedures with the export license. |
7. Penalties for Non-Compliance | Impose administrative penalties for exporting without permission, exporting beyond the scope of the license, or other illegal circumstances. Pursue criminal responsibility if a crime is constituted. |
Conclusion
By introducing these controls, China seeks to promote responsible trade practices and prevent the diversion of dual-use items to unauthorized end-users or end-uses. Exporters must comply with the new regulations, including obtaining export licenses and providing detailed documentation, to avoid penalties and reputational damage.
Recognizing the importance of these changes for our clients, we have already made them available on ONESOURCE Global Trade Content (GTC).
For more information on how ONESOURCE Global Trade solutions can assist you in adopting our Global Trade Content, please contact your Account Manager or Client Services Manager