Understanding China's Export Control Law and ensuring compliance

• Exporting controlled items from China by Chinese-domestic companies as well as foreign-invested companies that are incorporated in China
• Provision of controlled items by Chinese citizens, legal persons, or non-legal organizations to any foreign organization or individual
• Re-exporting controlled items, which includes trans-shipments, and through-shipments, as well as exporting controlled items from bonded areas, export processing zones, and other customs-regulated bonded areas such as export warehouses and bonded logistics centers. 

1. Dual-use goods (items that can be used for both commercial and military purposes), military, and nuclear items.
2. Other items (with impact on China’s national security and interest, and on the performance of international obligations).
3. Goods, technology, services, and data that involve or otherwise relate to any of the controlled items.

As part of license applications, exporters are required to submit documents certifying end-users and end-use. This must be accompanied by relevant certifying documents issued by the end-users or the national or regional government agency where end-users are located. Possible changes to reported end-users or end-use must be reported to the licensing authority in China.

• Entering the business site or any other relevant site of the investigated person for inspection
• Interviewing the investigated person, interested parties, or other relevant organizations or individuals, and requesting them to provide explanations relating to the investigated matters
• Examining and duplicating the relevant documents, agreements, accounting books, business correspondence, and other documents and information of the investigated person, interested parties, or other relevant organizations or individuals
• Checking the delivery vehicles used for export, preventing the loading of suspicious export items, and ordering the withdrawal of illegally exported items
• Confiscating and seizing the relevant items involved in the investigation
• Examining the bank accounts of investigated persons

• Warnings
• Orders to stop illegal activities
• Confiscations of illegal gains
• Monetary fines
• Business suspensions
• Revocation of export business qualifications (AEO)
• Revocation of export licenses
• Investigations for criminal responsibility for exporting controlled items or doing so without a license

Official effectiveness date. This means that the new export control law of the People’s Republic of China as released in October 2020 has taken effect.

The final version of the new ECL was passed and officially enacted following the third review by the Standing Committee of the NPC on October 17, 2020.

A revised draft of the new export control law was presented for second review to the Standing Committee of the 13th National People’s Congress (NPC).

The second draft of the new export control law (ECL) was released by the Ministry of Commerce (MOFCOM) for public comment until January 26, 2020.

The first draft of the new ECL was released for public comment by the Ministry of Commerce (MOFCOM) of the People’s Republic of China (PRC).