China's export control law is in effect since December 2020. Learn more about its scope and impact on trade compliance programs. And how AEB software can help.
China's Export Control Law brings trade compliance challenges
Who is affected by the Chinese Export Control Law and does it apply to you?
What exactly does the ECL of China control?
Red flags in China's Export Control Law
China's Export Control Law: Recommendations
Timely reminder to automate your export controls
China’s Export Control Law: Non-compliance consequences
Enacting this first-ever dedicated Export Control Law in 2020 demonstrates China's efforts to enhance its own export control regime. This law effectively establishes a unified export control system that aims to safeguard China’s national security and interests while upholding other international obligations. What does the law include and what are the consequences of violations? What are the recommendations for trade compliance programs? Are you affected? Get the answers here.
All companies, organizations, and individuals that export controlled items from China as well as Chinese citizens, legal persons or non-legal-person organizations that provide controlled items to foreign entities are required to comply with this law on export controls since December 1, 2020.
"Controlled items" can refer to many things and the range included in China's law is very broad. It is important to understand which goods, technologies, and activities may be affected. In the following we're explaining what the regulation means for your business and members of staff. This includes subsidiaries in China and intangible transfers.
China's new Export Control Law encourages exporters to establish an internal compliance program (ICP) for export control compliance. With such an ICP in place, the governing authority and official regulators in China may grant licensing facilitation measures. This can include general export licenses for relevant controlled items.
Seasoned trade compliance specialists and companies versed in export controls may recognize such recommendations from other governing bodies’ guidelines. For example:
Software forms an integral part of such trade compliance programs and AEB’s
Export Controls delivers powerful protection for your business. China’s new ECL
is a new example for the increasing complexity of global export control
landscapes. Don’t take any risks.
Export Controls from AEB automatically checks all your relevant transactions for license requirements and embargo restrictions worldwide. Ad hoc, fully automated, or company-specific. In the cloud or integrated in your ERP.
Violating the new Export Control Law of China will result in penalties. And suspected violations of the ECL will result in investigative measures. Both penalties and investigations can only be imposed by authorized parties of the governing authorities, i.e. regulators of the new export control system in China. While non-compliance penalties and investigations will be imposed on exporters based in China (domestic and foreign), the law also stipulates extraterritorial application with impact on foreign organizations or individuals outside of China.
One or more of the following may be imposed:
