Promulgated by: National People’s Congress Standing Committee (13th NPCSC, 22nd session).
Document No.: 主席令第五十八号 (Presidential Decree No. 58).
Adopted and issued October 17, 2020. Effective December 1, 2020.
Translation note — DCC. Translated in full from the official Chinese text as promulgated by Presidential Decree No. 58 (five chapters, forty-nine articles, with the promulgation order). Terminology follows DCC’s bilingual glossary: 管制物项 is rendered “controlled items”, 两用物项 “dual-use items”, 军品 “military products”, 管控名单 “control list”, 临时管制 “temporary control”. The implementing regulation for dual-use items is the Dual-Use Items Export Control Regulations; the general trade framework is the Foreign Trade Law.
Decree of the President of the People’s Republic of China No. 58
The Export Control Law of the People’s Republic of China, adopted at the 22nd Session of the Standing Committee of the Thirteenth National People’s Congress of the People’s Republic of China on October 17, 2020, is hereby promulgated and shall come into force on December 1, 2020.
Xi Jinping, President of the People’s Republic of China
October 17, 2020
Chapter I General Provisions
Article 1. This Law is formulated in order to safeguard national security and interests, fulfill international obligations such as non-proliferation, and strengthen and regulate export control.
Article 2. This Law applies to the export control exercised by the State over dual-use items, military products, nuclear items, and other goods, technologies, services and other items related to safeguarding national security and interests and to fulfilling international obligations such as non-proliferation (hereinafter collectively, controlled items).
The controlled items referred to in the preceding paragraph include data relating to the items, such as technical documentation.
Export control as used in this Law means the prohibitive or restrictive measures taken by the State with respect to the transfer of controlled items from within the territory of the People’s Republic of China to outside the territory, and with respect to the provision of controlled items by citizens, legal persons and unincorporated organizations of the People’s Republic of China to foreign organizations and individuals.
Dual-use items as used in this Law means goods, technologies and services that have both civil uses and military uses, or that contribute to enhancing military potential, and in particular that may be used for the design, development, production or use of weapons of mass destruction and their means of delivery.
Military products as used in this Law means equipment, specialized production equipment and other related goods, technologies and services used for military purposes.
Nuclear as used in this Law means nuclear materials, nuclear equipment, non-nuclear materials for reactors, and related technologies and services.
Article 3. Export control work shall adhere to the holistic approach to national security (总体国家安全观), safeguard international peace, coordinate security and development as a whole, and improve export control administration and services.
Article 4. The State implements a unified export control system, administered by means of formulating control lists, directories or catalogues (hereinafter collectively, control lists), implementing export licensing, and the like.
Article 5. The departments of the State Council and of the Central Military Commission that undertake export control functions (hereinafter collectively, the State export control administrative departments) are responsible for export control work according to their division of duties. Other relevant departments of the State Council and of the Central Military Commission are responsible for work related to export control according to their division of duties.
The State establishes an export control work coordination mechanism to coordinate major matters in export control work as a whole. The State export control administrative departments and the relevant departments of the State Council shall cooperate closely and strengthen information sharing.
The State export control administrative departments, together with the relevant departments, establish an export control expert consultation mechanism to provide advisory opinions for export control work.
The State export control administrative departments shall, in due course, issue export control guidelines for relevant industries to guide export operators in establishing and improving internal export control compliance systems and conducting business in a regulated manner.
The relevant departments of the people’s governments of provinces, autonomous regions and municipalities directly under the central government are responsible for work related to export control in accordance with the provisions of laws and administrative regulations.
Article 6. The State strengthens international cooperation on export control and participates in the formulation of international rules related to export control.
Article 7. Export operators may, in accordance with the law, establish and join relevant chambers of commerce, associations and other industry self-regulatory organizations.
Relevant chambers of commerce, associations and other industry self-regulatory organizations shall abide by laws and administrative regulations, provide their members with services related to export control in accordance with their articles of association, and play a coordinating and self-regulatory role.
Chapter II Control Policies, Control Lists and Control Measures
Section 1 General Provisions
Article 8. The State export control administrative departments, together with the relevant departments, formulate export control policies; major policies shall be submitted to the State Council for approval, or to the State Council and the Central Military Commission for approval.
The State export control administrative departments may assess the destination countries and regions of exports of controlled items, determine risk levels, and take corresponding control measures.
Article 9. The State export control administrative departments shall, in accordance with this Law and relevant laws and administrative regulations, pursuant to export control policies and in accordance with prescribed procedures, formulate and adjust the export control lists of controlled items together with the relevant departments, and publish them in a timely manner.
As required to safeguard national security and interests and to fulfill international obligations such as non-proliferation, and upon approval by the State Council, or by the State Council and the Central Military Commission, the State export control administrative departments may impose temporary control on goods, technologies and services outside the export control lists, and shall announce it publicly. The period of implementation of a temporary control shall not exceed two years. Before the period of implementation of a temporary control expires, an assessment shall be conducted in a timely manner, and, according to the results of the assessment, a decision shall be made to cancel the temporary control, extend the temporary control, or place the items under temporary control on the export control lists.
Article 10. As required to safeguard national security and interests and to fulfill international obligations such as non-proliferation, and upon approval by the State Council, or by the State Council and the Central Military Commission, the State export control administrative departments, together with the relevant departments, may prohibit the export of relevant controlled items, or prohibit the export of relevant controlled items to specific destination countries and regions or to specific organizations and individuals.
Article 11. Export operators engaging in the export of controlled items shall comply with this Law and relevant laws and administrative regulations; where qualification to engage in the export of the relevant controlled items is required by law, they shall obtain the corresponding qualification.
Article 12. The State implements a licensing system for the export of controlled items.
For controlled items listed on the export control lists or items under temporary control, export operators shall apply to the State export control administrative departments for a license.
For goods, technologies and services other than the controlled items listed on the export control lists and items under temporary control, where an export operator knows or should know, or is notified by the State export control administrative departments, that the relevant goods, technologies and services may present any of the following risks, it shall apply to the State export control administrative departments for a license:
(I) endangering national security and interests;
(II) being used for the design, development, production or use of weapons of mass destruction and their means of delivery;
(III) being used for terrorist purposes.
Where an export operator is unable to determine whether the goods, technologies and services it intends to export are controlled items under this Law and submits an inquiry to the State export control administrative departments, the State export control administrative departments shall reply in a timely manner.
Article 13. The State export control administrative departments shall review applications by export operators for the export of controlled items, taking the following factors into comprehensive consideration, and decide whether or not to grant a license:
(I) national security and interests;
(II) international obligations and external commitments;
(III) the type of export;
(IV) the sensitivity of the controlled items;
(V) the destination country or region of the export;
(VI) the end user and end use;
(VII) the relevant credit record of the export operator;
(VIII) other factors provided for by laws and administrative regulations.
Article 14. Where an export operator has established an internal export control compliance system and the system is operating well, the State export control administrative departments may grant it facilitation measures such as a general license for its export of the relevant controlled items. Specific measures shall be formulated by the State export control administrative departments.
Article 15. Export operators shall submit to the State export control administrative departments end-user and end-use certification documents for the controlled items; the relevant certification documents shall be issued by the end user or by a government agency of the country or region where the end user is located.
Article 16. The end user of controlled items shall undertake not to change the end use of the relevant controlled items or transfer them to any third party without the permission of the State export control administrative departments.
Where an export operator or importer discovers that the end user or end use may change, it shall immediately report to the State export control administrative departments in accordance with the provisions.
Article 17. The State export control administrative departments establish a risk management system for the end users and end uses of controlled items, assess and verify the end users and end uses of controlled items, and strengthen the management of end users and end uses.
Article 18. The State export control administrative departments establish a control list (管控名单) of importers and end users in any of the following circumstances:
(I) violating end-user or end-use management requirements;
(II) potentially endangering national security and interests;
(III) using controlled items for terrorist purposes.
With respect to importers and end users placed on the control list, the State export control administrative departments may take necessary measures such as prohibiting or restricting transactions in the relevant controlled items and ordering the suspension of exports of the relevant controlled items.
Export operators shall not, in violation of the provisions, transact with importers or end users placed on the control list. Where, under special circumstances, an export operator genuinely needs to transact with an importer or end user placed on the control list, it may submit an application to the State export control administrative departments.
Where an importer or end user placed on the control list, having taken measures, no longer falls within the circumstances provided in paragraph 1, it may apply to the State export control administrative departments for removal from the control list; the State export control administrative departments may, in light of the actual circumstances, decide to remove the importer or end user placed on the control list from the control list.
Article 19. When exporting controlled goods, the consignor of the export goods or the customs declaration agent enterprise shall present to the customs for inspection the license issued by the State export control administrative departments, and complete customs declaration formalities in accordance with the relevant provisions of the State.
Where the consignor of the export goods has not presented to the customs for inspection a license issued by the State export control administrative departments, and the customs has evidence indicating that the export goods may fall within the scope of export control, the customs shall raise a query with the consignor of the export goods; the customs may request the State export control administrative departments to organize an identification, and shall dispose of the matter in accordance with the law based on the identification conclusion issued by the State export control administrative departments. During the period of identification or query, the customs shall not release the export goods.
Article 20. No organization or individual shall provide agency, freight, delivery, customs declaration, third-party e-commerce transaction platform, financial or other services to an export operator for the commission of export control violations.
Section 2 Administration of Exports of Dual-Use Items
Article 21. When applying to the State dual-use items export control administrative department for the export of dual-use items, export operators shall truthfully submit the relevant materials in accordance with the provisions of laws and administrative regulations.
Article 22. The State dual-use items export control administrative department accepts applications for the export of dual-use items, reviews the applications for the export of dual-use items independently or together with the relevant departments in accordance with this Law and relevant laws and administrative regulations, and decides within the statutory time limit whether or not to grant a license. Where a decision to grant a license is made, the export license shall be issued by the license-issuing authority in a unified manner.
Section 3 Administration of Exports of Military Products
Article 23. The State implements a franchise system for the export of military products. Operators engaging in the export of military products shall obtain the franchise qualification for the export of military products and engage in military products export business within the approved scope of business.
The franchise qualification for the export of military products shall be reviewed and approved by the State military products export control administrative department.
Article 24. Military products export operators shall, according to control policies and product attributes, apply to the State military products export control administrative department for the review and approval formalities for military products export project initiation, military products export projects and military products export contracts.
Major military products export project initiations, major military products export projects and major military products export contracts shall be reviewed by the State military products export control administrative department together with the relevant departments and submitted to the State Council and the Central Military Commission for approval.
Article 25. Before exporting military products, military products export operators shall apply to the State military products export control administrative department for a military products export license.
When exporting military products, military products export operators shall present to the customs for inspection the license issued by the State military products export control administrative department, and complete customs declaration formalities in accordance with the relevant provisions of the State.
Article 26. Military products export operators shall entrust approved military products export transport enterprises to handle the transport of military products exports and related business. Specific measures shall be formulated by the State military products export control administrative department together with the relevant departments.
Article 27. Where military products export operators or scientific research and production units participate in international military products exhibitions, they shall complete review and approval formalities with the State military products export control administrative department in accordance with the procedures.
Chapter III Supervision and Administration
Article 28. The State export control administrative departments supervise and inspect the export activities of controlled items in accordance with the law.
When investigating suspected violations of this Law, the State export control administrative departments may take the following measures:
(I) entering the business premises or other relevant premises of the party under investigation to conduct inspections;
(II) questioning the party under investigation, interested parties and other relevant organizations or individuals, and requiring them to explain matters related to the event under investigation;
(III) consulting and copying documents and materials of the party under investigation, interested parties and other relevant organizations or individuals, such as relevant documents, agreements, accounting books and business correspondence;
(IV) inspecting means of transport used for export, stopping the loading of suspicious export items, and ordering the return of illegally exported items;
(V) sealing up and seizing the relevant items involved in the case;
(VI) inquiring into the bank accounts of the party under investigation.
The measures in items (V) and (VI) of the preceding paragraph shall be subject to the written approval of the person in charge of the State export control administrative department.
Article 29. Where the State export control administrative departments perform their duties in accordance with the law, the relevant departments of the State Council, local people’s governments and their relevant departments shall provide assistance.
Where the State export control administrative departments, independently or together with the relevant departments, conduct supervision, inspection and investigation work in accordance with the law, the relevant organizations and individuals shall cooperate and shall not refuse or obstruct.
The relevant State organs and their staff bear an obligation of confidentiality in accordance with the law with respect to State secrets, trade secrets, personal privacy and personal information learned in the course of an investigation.
Article 30. In order to strengthen the administration of exports of controlled items and prevent the risk of violations in the export of controlled items, the State export control administrative departments may take measures such as regulatory interviews (监管谈话) and the issuance of warning letters.
Article 31. Any organization or individual has the right to report suspected violations of this Law to the State export control administrative departments; upon receiving a report, the State export control administrative departments shall handle it in a timely manner in accordance with the law and keep the identity of the informant confidential.
Article 32. The State export control administrative departments, in accordance with international treaties concluded or acceded to, or according to the principle of equality and reciprocity, conduct export control cooperation and exchanges with other countries or regions, international organizations and the like.
Organizations and individuals within the territory of the People’s Republic of China shall provide export-control-related information to parties outside the territory in accordance with the law; where such provision may endanger national security and interests, the information shall not be provided.
Chapter IV Legal Liability
Article 33. Where an export operator engages in the export of relevant controlled items without having obtained the qualification to export the relevant controlled items, it shall be given a warning, ordered to cease the illegal act, and have its illegal gains confiscated; where the illegal business turnover is RMB 500,000 or more, a fine of not less than five times and not more than ten times the illegal business turnover shall also be imposed; where there is no illegal business turnover or the illegal business turnover is less than RMB 500,000, a fine of not less than RMB 500,000 and not more than RMB 5 million shall also be imposed.
Article 34. Where an export operator commits any of the following acts, it shall be ordered to cease the illegal act and have its illegal gains confiscated; where the illegal business turnover is RMB 500,000 or more, a fine of not less than five times and not more than ten times the illegal business turnover shall also be imposed; where there is no illegal business turnover or the illegal business turnover is less than RMB 500,000, a fine of not less than RMB 500,000 and not more than RMB 5 million shall also be imposed; where the circumstances are serious, it shall be ordered to suspend business for rectification, up to revocation of the qualification to export the relevant controlled items:
(I) exporting controlled items without a license;
(II) exporting controlled items beyond the licensed scope specified in the export license;
(III) exporting controlled items whose export is prohibited.
Article 35. Where an export license for controlled items is obtained by fraud, bribery or other improper means, or an export license for controlled items is illegally transferred, the license shall be revoked, the export license shall be withdrawn, and the illegal gains shall be confiscated; where the illegal business turnover is RMB 200,000 or more, a fine of not less than five times and not more than ten times the illegal business turnover shall also be imposed; where there is no illegal business turnover or the illegal business turnover is less than RMB 200,000, a fine of not less than RMB 200,000 and not more than RMB 2 million shall also be imposed.
Where export licenses for controlled items are forged, altered or traded, the illegal gains shall be confiscated; where the illegal business turnover is RMB 50,000 or more, a fine of not less than five times and not more than ten times the illegal business turnover shall also be imposed; where there is no illegal business turnover or the illegal business turnover is less than RMB 50,000, a fine of not less than RMB 50,000 and not more than RMB 500,000 shall also be imposed.
Article 36. Whoever, knowing that an export operator is engaging in an export control violation, nevertheless provides it with agency, freight, delivery, customs declaration, third-party e-commerce transaction platform, financial or other services shall be given a warning, ordered to cease the illegal act, and have the illegal gains confiscated; where the illegal business turnover is RMB 100,000 or more, a fine of not less than three times and not more than five times the illegal business turnover shall also be imposed; where there is no illegal business turnover or the illegal business turnover is less than RMB 100,000, a fine of not less than RMB 100,000 and not more than RMB 500,000 shall also be imposed.
Article 37. Where an export operator, in violation of this Law, transacts with an importer or end user placed on the control list, it shall be given a warning, ordered to cease the illegal act, and have its illegal gains confiscated; where the illegal business turnover is RMB 500,000 or more, a fine of not less than ten times and not more than twenty times the illegal business turnover shall also be imposed; where there is no illegal business turnover or the illegal business turnover is less than RMB 500,000, a fine of not less than RMB 500,000 and not more than RMB 5 million shall also be imposed; where the circumstances are serious, it shall be ordered to suspend business for rectification, up to revocation of the qualification to export the relevant controlled items.
Article 38. Where an export operator refuses or obstructs supervision and inspection, it shall be given a warning and fined not less than RMB 100,000 and not more than RMB 300,000; where the circumstances are serious, it shall be ordered to suspend business for rectification, up to revocation of the qualification to export the relevant controlled items.
Article 39. With respect to an export operator penalized for violating this Law, the State export control administrative departments may decline to accept its applications for export licenses for five years from the date the penalty decision takes effect; its directly responsible persons in charge and other directly liable persons may be prohibited from engaging in the relevant export business activities for five years, and those who have received criminal punishment for export control violations shall be prohibited for life from engaging in the relevant export business activities.
The State export control administrative departments shall, in accordance with the law, record export operators’ violations of this Law in their credit records.
Article 40. The export control violations provided for in this Law shall be penalized by the State export control administrative departments; where laws or administrative regulations provide that penalties are to be imposed by the customs, the customs shall impose penalties in accordance with this Law.
Article 41. Where a relevant organization or individual is dissatisfied with a decision of the State export control administrative departments not to grant a license, it may apply for administrative reconsideration in accordance with the law. The administrative reconsideration decision shall be final.
Article 42. State functionaries engaged in export control administration who neglect their duties, engage in favoritism or malpractice, or abuse their powers shall be given sanctions in accordance with the law.
Article 43. Whoever, in violation of the export control administrative provisions of this Law, endangers national security and interests shall, in addition to being penalized in accordance with this Law, be dealt with and penalized in accordance with the provisions of relevant laws and administrative regulations.
Whoever, in violation of this Law, exports controlled items whose export is prohibited by the State, or exports controlled items without a license, shall be held criminally liable in accordance with the law.
Article 44. Organizations and individuals outside the territory of the People’s Republic of China who, in violation of the export control administrative provisions of this Law, endanger the national security and interests of the People’s Republic of China or obstruct the fulfillment of international obligations such as non-proliferation shall be dealt with and held legally liable in accordance with the law.
Chapter V Supplementary Provisions
Article 45. The transit, transshipment, through transport and re-export of controlled items, and the export of controlled items to outside the territory from special customs supervision areas such as bonded zones and export processing zones and from bonded supervision premises such as export supervised warehouses and bonded logistics centers, shall be governed by the relevant provisions of this Law.
Article 46. Matters concerning the export of nuclear and other controlled items that are not provided for in this Law shall be governed by the provisions of relevant laws and administrative regulations.
Article 47. The export of military products for the overseas deployment of the armed forces, foreign military exchanges, military assistance and the like shall be governed by the provisions of relevant laws and regulations.
Article 48. Where any country or region abuses export control measures to endanger the national security and interests of the People’s Republic of China, the People’s Republic of China may, in light of the actual circumstances, take reciprocal measures against that country or region.
Article 49. This Law shall come into force on December 1, 2020.