Applicable to all enterprises in China! The export control law will come into force on December 1, 2020

After three times of deliberation, the 22nd session of the 13th NPC Standing Committee voted and passed the export control law of the people's Republic of China on October 17, which will come into force on December 1, 2020.

Export control refers to taking prohibitive or restrictive measures on the export of specific items, so as to control the users or uses of the items. The implementation of export control is an internationally accepted way to fulfill international obligations such as non-proliferation. At present, export control is becoming an important means to safeguard national security and interests.

The export control law that China has just passed includes five chapters: general provisions, control policies, control lists and control measures, supervision and management, legal responsibility, and supplementary provisions, with a total of 49 articles.

The law defines the scope of export control, ensures the full coverage of controlled items, subjects and acts under control, and stipulates that the transfer of controlled items from China's territory to foreign countries, and the provision of controlled items by Chinese citizens, legal persons and unincorporated organizations to foreign organizations and individuals shall be subject to this law.

The Act establishes export control lists, temporary controls and comprehensive controls. The system of export control list shall be stipulated, and the State Administration of export control shall formulate, adjust and issue export control list together with relevant departments in accordance with export control policies, and clearly list the controlled items. The State Administration of export control may issue an announcement to implement temporary control over goods, technologies and services beyond the export control list.

For items not listed in the export control list and not subject to temporary control, the export operators shall also implement export control if they know or should know, or have been informed by the State Administration of export control, that the relevant items may pose risks to national security and interests.

The law also specifies the extraterritorial application and reciprocal measures.

One is to standardize the provision of export control information to overseas countries, making it clear that the provision of export control related information to overseas countries should be carried out in accordance with the law, and those that may endanger national security and interests shall not be provided.

The second is to stipulate the necessary extraterritorial application effect of this law, and make it clear that organizations and individuals outside the territory who violate the relevant provisions of this Law on export control, endanger China's national security and interests, and hinder the performance of international obligations such as non-proliferation, shall be dealt with according to law and investigated for legal responsibility.

Third, it provides for reciprocal measures. If any country or region abuses export control measures to endanger China's national security and interests, China may, in light of its actual situation, take reciprocal measures against that country or region.

Full text of export control law of the people's Republic of China.

(adopted at the 22nd Meeting of the Standing Committee of the 13th National People's Congress on October 17, 2020)

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Chapter I General Provisions

Chapter II control policies, control lists and control measures

Section 1 General Provisions

Section 2 Export Administration of dual use items

Section 3 Administration of military exports

Chapter III Supervision and Administration

Chapter IV Legal Liability

Chapter V supplementary provisions

Chapter I General Provisions

Article 1 this law is formulated for the purpose of safeguarding national security and interests, fulfilling international obligations such as non-proliferation, and strengthening and regulating export control.

Article 2 this Law shall apply to the export control of dual-use items, military products, nuclear products and other goods, technologies and services related to the maintenance of national security and interests and the performance of international obligations such as non-proliferation (hereinafter referred to as controlled items).

The term "controlled items" mentioned in the preceding paragraph includes the relevant technical data and other data.

Export control as mentioned in this Law means that the State adopts prohibitive or restrictive measures against the transfer of controlled items from the territory of the people's Republic of China to foreign countries and 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 mentioned in this Law refer to goods, technologies and services that have both civil and military uses or contribute to enhancing military potential, especially those that can be used for the design, development, production or use of weapons of mass destruction and their means of delivery.

Military products mentioned in this Law refer to equipment, special production equipment and other related goods, technologies and services used for military purposes.

Nuclear as mentioned in this Law refers to nuclear materials, nuclear equipment, non nuclear materials for reactors and related technologies and services.

Article 3 export control work shall adhere to the overall national security concept, maintain international peace, coordinate security and development, and improve export control management and services.

Article 4 the State implements a unified export control system, which is administered by means of formulating control lists, catalogues or catalogues (hereinafter referred to as control lists) and implementing export licensing.

Article 5 the departments of the State Council and the Central Military Commission that undertake the functions of export control (hereinafter referred to as the State Administration of export control) shall be responsible for the work of export control according to the division of responsibilities. Other relevant departments of the State Council and the Central Military Commission shall be responsible for export control work in accordance with their respective responsibilities.

The State shall establish a coordination mechanism for export control to coordinate major issues of export control. The State Administration of export control and the relevant departments of the State Council shall cooperate closely to strengthen information sharing.

The State Administration of export control shall establish an expert consultation mechanism for export control jointly with relevant departments to provide advice on export control.

The State Administration of export control shall timely issue export control guidelines for relevant industries to guide export operators to establish and improve the internal compliance system of export control and standardize their operation.

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