People’s Republic of China (PRC) Export Control Act
Xinhua News Agency, Beijing, October 17th
People’s Republic of China (PRC) Export Control Act
(Adopted at the 22nd meeting of the 13th the NPC Standing Committee on October 17th, 2020)
catalogue
Chapter I General Provisions
Chapter II Control Policies, Control Lists and Control Measures
Section 1 General Provisions
Section 2 Export Management of Dual-Use Items
Section III Military Export Management
Chapter III Supervision and Administration
Chapter IV Legal Liability
Chapter V Supplementary Provisions
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 standardize export control.
Article 2 This Law is applicable to the export control of dual-use items, military products, nuclear materials and other goods, technologies, services and other items related to safeguarding national security and interests and fulfilling international obligations such as non-proliferation (hereinafter referred to as controlled items).
The controlled items mentioned in the preceding paragraph include technical data related to the items.
The export control referred to in this Law refers to the prohibition or restrictive measures taken by the state against the transfer of controlled items from People’s Republic of China (PRC) to overseas and the provision of controlled items by citizens, legal persons and unincorporated organizations of People’s Republic of China (PRC) to foreign organizations and individuals.
Dual-use items referred to in this Law refer to goods, technologies and services that have both civil and military uses or help to enhance military potential, especially those that can be used to design, develop, produce or use 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.
The term "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 should adhere to the overall national security concept, safeguard international peace, make overall plans for security and development, and improve export control management and services.
Article 4 The State implements a unified export control system, and manages it by making control lists, catalogues or catalogues (hereinafter referred to as control lists) and implementing export licenses.
Article 5 The export control departments in the State Council and the Central Military Commission (CMC) (hereinafter referred to as the State Administration of Export Control) shall be responsible for export control according to the division of responsibilities. Other relevant departments in the State Council and the Central Military Commission (CMC) are responsible for export control according to the division of responsibilities.
The state establishes a coordination mechanism for export control work to coordinate major issues in export control work. The State Administration of Export Control and relevant departments of the State Council should cooperate closely to strengthen information sharing.
The State Administration of Export Control shall, jointly with relevant departments, establish an expert consultation mechanism on export control 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 operations.
The relevant departments of the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government shall be responsible for export control in accordance with the provisions of laws and administrative regulations.
Article 6 The State shall strengthen international cooperation in export control and participate in the formulation of relevant international rules on export control.
Article 7 Export operators may establish and join relevant trade self-regulatory organizations such as chambers of commerce and associations according to law.
Relevant chambers of commerce, associations and other industry self-regulatory organizations shall abide by laws and administrative regulations, provide services related to export control to their members 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 Administration of Export Control shall, jointly with relevant departments, formulate export control policies, among which major policies shall be submitted to the State Council for approval or to the State Council and the Central Military Commission (CMC) for approval.
The state export control administrative department can evaluate the export destination countries and regions of controlled items, determine the risk level and take corresponding control measures.
Article 9 The state export control administrative department shall, in accordance with this Law, relevant laws and administrative regulations, formulate and adjust the export control list of controlled items in conjunction with relevant departments in accordance with the export control policies and in accordance with the prescribed procedures, and publish it in a timely manner.
According to the needs of safeguarding national security and interests and fulfilling international obligations such as non-proliferation, with the approval of the State Council, or with the approval of the State Council and the Central Military Commission (CMC), the State Administration of Export Control may temporarily control the goods, technologies and services that are not on the export control list and make an announcement. The implementation period of temporary control shall not exceed two years. Before the expiration of the implementation period of temporary control, an evaluation should be made in time, and according to the evaluation results, it is decided to cancel the temporary control, extend the temporary control or include the items under temporary control in the export control list.
Article 10 According to the needs of safeguarding national security and interests and fulfilling international obligations such as non-proliferation, with the approval of the State Council or the State Council and the Central Military Commission (CMC), the State Administration of Export Control, together with relevant departments, may prohibit the export of related controlled items, or prohibit the export of related controlled items to specific destination countries and regions, specific organizations and individuals.
Article 11 Export operators engaged in the export of controlled items shall abide by the provisions of this Law and relevant laws and administrative regulations; If it is necessary to obtain the export business qualification of related controlled items according to law, it shall obtain the corresponding qualification.
Article 12 The State implements a licensing system for the export of controlled items.
For the controlled items or temporary controlled items listed in the export control list, the export business operator shall apply to the state export control administration department for permission.
Where the export business operator knows or should know the controlled items listed in the export control list and the goods, technologies and services other than the temporary controlled items, or is informed by the state export control administration department that the related goods, technologies and services may have the following risks, it shall apply to the state export control administration department for permission:
(1) Endangering national security and interests;
(2) being used for designing, developing, producing or using weapons of mass destruction and their means of delivery;
(3) being used for terrorist purposes.
If an exporter is unable to determine whether the goods, technologies and services to be exported belong to the controlled items specified in this Law, and asks the State Administration of Export Control for advice, the State Administration of Export Control shall give a timely reply.
Article 13 The State Administration of Export Control shall comprehensively consider the following factors, examine the application of export controlled items by export operators, and make a decision on approval or disapproval:
(1) National security and interests;
(2) International obligations and foreign commitments;
(3) Export type;
(4) Sensitivity of controlled items;
(5) Countries or regions of export destination;
(6) End users and end uses;
(seven) the relevant credit records of the export operators;
(8) Other factors stipulated by laws and administrative regulations.
Article 14 If an export operator has established an internal compliance system for export control, and the system is in good operation, the state export control administrative department may grant general permission and other convenient measures to its export-related controlled items. The specific measures shall be formulated by the state export control administration department.
Article 15 An exporter shall submit to the state export control administration the certificates of the end-user and end-use of the controlled items, and the relevant certificates shall be issued by the end-user or the government agency of the country and region where the end-user is located.
Article 16 The end users of controlled items shall promise not to change the end use of related controlled items or transfer them to any third party without the permission of the state export control administration department.
If an exporter or importer finds that the end user or end use may change, he shall immediately report to the state export control administration department in accordance with the regulations.
Article 17 The state export control administrative department shall establish a risk management system for end users and end uses of controlled items, evaluate 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 department shall establish a control list for importers and end users under any of the following circumstances:
(a) in violation of the requirements of the end user or end use management;
(two) may endanger national security and interests;
(3) using controlled items for terrorist purposes.
For importers and end users listed in the control list, the state export control administrative department may take necessary measures such as prohibiting or restricting the trading of related controlled items and ordering them to suspend the export of related controlled items.
Export operators shall not violate the regulations and conduct transactions with importers and end users listed in the control list. Under special circumstances, if it is really necessary for export operators to conduct transactions with importers and end users listed in the control list, they may apply to the state export control administration department.
Importers and end users listed in the control list may apply to the state export control administration department for removal from the control list if they no longer have the circumstances specified in the first paragraph after taking measures; The state export control administrative department may, according to the actual situation, decide to remove the importers and end users listed in the control list.
Article 19 When exporting controlled goods, the consignor or customs declaration agent shall submit the license issued by the state export control administration department to the customs and go through the customs declaration formalities in accordance with the relevant provisions of the state.
If the consignor of export goods fails to submit the license issued by the state export control administration department to the customs, and the customs has evidence that the export goods may fall within the scope of export control, it shall question the consignor of export goods; The customs may submit an organizational identification to the State Administration of Export Control, and dispose of it according to the identification conclusion made by the State Administration of Export Control. During the period of identification or questioning, the customs shall not release the exported goods.
Article 20 No organization or individual may provide services such as agency, freight, delivery, customs declaration, third-party e-commerce trading platform and finance for export operators to engage in illegal export control activities.
Section 2 Export Management of Dual-Use Items
Article 21 When applying for the export of dual-use items to the state administrative department for export control of dual-use items, an exporter shall truthfully submit relevant materials in accordance with the provisions of laws and administrative regulations.
Article 22 The state administrative department for export control of dual-use items accepts the application for export of dual-use items, examines the application for export of dual-use items independently or jointly with relevant departments in accordance with the provisions of this Law and relevant laws and administrative regulations, and makes a decision on approval or disapproval within the statutory time limit. If a decision is made to grant the license, the license issuing organ shall issue the export license uniformly.
Section III Military Export Management
Article 23 The State practices a system of military export monopoly. Operators engaged in military export shall obtain the military export franchise qualification and engage in military export business activities within the approved business scope.
The military export franchise qualification shall be examined and approved by the national military export control administrative department.
Article 24 Military export operators shall apply to the state military export control department for the examination and approval of military export projects, military export projects and military export contracts according to the control policies and product attributes.
Major military export projects, major military export projects and major military export contracts shall be examined by the state military export control department in conjunction with relevant departments and submitted to the State Council and the Central Military Commission (CMC) for approval.
Article 25 Before exporting military products, military export operators shall apply to the state military export control department for military export licenses.
When exporting military products, military export operators shall submit to the customs the license issued by the state military export control department and go through the customs declaration formalities in accordance with the relevant provisions of the state.
Article 26 A military export operator shall entrust an approved military export transportation enterprise to handle military export transportation and related business. The specific measures shall be formulated by the state military export control department in conjunction with relevant departments.
Twenty-seventh military export operators or scientific research and production units participating in international military exhibitions shall go through the examination and approval procedures with the state military export control department in accordance with the procedures.
Chapter III Supervision and Administration
Article 28 The state export control administrative department shall supervise and inspect the export activities of controlled items according to law.
The State Administration of Export Control may take the following measures when investigating acts suspected of violating the provisions of this Law:
(a) to enter the business premises of the respondent or other relevant places for inspection;
(2) Asking the respondents, interested parties and other relevant organizations or individuals to explain the matters related to the investigated events;
(3) consulting and copying the relevant documents, agreements, accounting books, business correspondence and other documents and materials of the respondents, interested parties and other relevant organizations or individuals;
(four) to inspect the means of transport used for export, stop loading suspicious export items, and order them to be transported back to the illegally exported items;
(five) sealing up and detaining the relevant items involved;
(6) Inquiring about the bank accounts of the respondents.
The adoption of items 5 and 6 of the preceding paragraph shall be subject to the written approval of the person in charge of the state export control administration department.
Twenty-ninth national export control departments shall perform their duties according to law, and the relevant departments of the State Council, local people’s governments and their relevant departments shall provide assistance.
The state export control administration department alone or jointly with relevant departments shall carry out supervision, inspection and investigation according to law, and relevant organizations and individuals shall cooperate with them and shall not refuse or hinder them.
The relevant state organs and their staff have the obligation to keep confidential the state secrets, business secrets, personal privacy and personal information they know in the investigation according to law.
Article 30 In order to strengthen the export management of controlled items and prevent the illegal risks of controlled items, the state export control administrative department may take measures such as supervision talks and issuing warning letters.
Article 31 Any organization or individual has the right to report any suspected violation of the provisions of this Law to the State Administration of Export Control, which shall, after receiving the report, promptly deal with it according to law and keep the informant confidential.
Article 32 The State Administration of Export Control shall conduct export control cooperation and exchanges with other countries or regions and international organizations in accordance with international treaties concluded or acceded to, or on the principle of equality and reciprocity.
Organizations and individuals in People’s Republic of China (PRC) shall provide relevant information on export control abroad in accordance with the law; May endanger national security and interests, shall not be provided.
Chapter IV Legal Liability
Article 33 If an exporter engages in the export of related controlled items without obtaining the qualification for export business of related controlled items, he shall be given a warning, ordered to stop the illegal behavior, confiscate the illegal income, and impose a fine of more than five times and less than ten times the illegal business amount; If there is no illegal business amount or the illegal business amount is less than 500,000 yuan, a fine of not less than 500,000 yuan but not more than 5 million yuan shall be imposed.
Article 34 An exporter who commits any of the following acts shall be ordered to stop the illegal act, and his illegal income shall be confiscated. If the illegal business amount is more than 500,000 yuan, he shall be fined five times to ten times. There is no illegal business amount or the illegal business amount is less than 500,000 yuan, and a fine of more than 500,000 yuan and less than 5 million yuan shall be imposed; If the circumstances are serious, it shall be ordered to suspend business for rectification until the export business qualification of related controlled items is revoked:
(1) Exporting controlled items without permission;
(2) Exporting controlled items beyond the permitted scope stipulated in the export license;
(3) Exporting controlled items whose export is prohibited.
Article 35 Where an export license for controlled items is obtained by cheating, bribery or other improper means, or the export license for controlled items is illegally transferred, the license shall be revoked, the export license shall be confiscated, and the illegal income shall be confiscated. If the illegal business amount is more than 200,000 yuan, a fine of not less than five times but not more than ten times the illegal business amount shall be imposed; If there is no illegal business amount or the illegal business amount is less than 200,000 yuan, a fine of more than 200,000 yuan and less than 2 million yuan shall be imposed.
Whoever forges, alters or buys or sells export licenses for controlled items shall have his illegal income confiscated, and if the illegal business amount is more than 50,000 yuan, he shall be fined between five times and ten times; If there is no illegal business amount or the illegal business amount is less than 50,000 yuan, a fine of not less than 50,000 yuan but not more than 500,000 yuan shall be imposed.
Article 36 Anyone who knowingly provides services such as agency, freight forwarding, delivery, customs declaration, third-party e-commerce trading platform and finance to an exporter who is engaged in illegal export control activities shall be given a warning, ordered to stop the illegal activities, and his illegal income shall be confiscated. If the illegal business amount is more than 100,000 yuan, he shall be fined for more than three times and less than five times the illegal business amount. If there is no illegal business amount or the illegal business amount is less than 100,000 yuan, a fine of not less than 100,000 yuan but not more than 500,000 yuan shall be imposed.
Article 37 If an exporter violates the provisions of this Law and deals with importers and end users listed in the control list, he shall be given a warning, ordered to stop the illegal act, and his illegal income shall be confiscated. If the illegal business amount is more than 500,000 yuan, he shall be fined ten times to twenty times. There is no illegal business amount or the illegal business amount is less than 500,000 yuan, and a fine of more than 500,000 yuan and less than 5 million yuan shall be imposed; If the circumstances are serious, it shall be ordered to suspend business for rectification until the export business qualification of related controlled items is revoked.
Article 38 If an exporter refuses or obstructs the supervision and inspection, he shall be given a warning and be fined not less than 100,000 yuan but not more than 300,000 yuan; If the circumstances are serious, it shall be ordered to suspend business for rectification until the export business qualification of related controlled items is revoked.
Article 39 The state export control administration department may refuse to accept the export license application of an export operator who is punished in violation of the provisions of this Law within five years from the date when the punishment decision takes effect. The person in charge and other persons who are directly responsible for it may be prohibited from engaging in relevant export business activities for five years, and those who are criminally punished for illegal export control activities may not engage in relevant export business activities for life.
The state export control administrative department shall include the violation of this law by export operators in the credit records according to law.
Article 40 The illegal export control acts as stipulated in this Law shall be punished by the state export control administration department; Where laws and administrative regulations provide for punishment by the customs, it shall be punished in accordance with this law.
Article 41 If the relevant organization or individual refuses to accept the decision of the state export control administration department not to grant permission, it may apply for administrative reconsideration according to law. The decision of administrative reconsideration is final.
Article 42 State functionaries engaged in export control administration who neglect their duties, engage in malpractices for selfish ends or abuse their powers shall be punished according to law.
Article 43 Anyone who violates the relevant provisions of this Law on export control management and endangers national security and interests shall be punished in accordance with the provisions of relevant laws and administrative regulations in addition to this Law.
Whoever, in violation of the provisions of this law, exports controlled items prohibited by the state or exports controlled items without permission shall be investigated for criminal responsibility according to law.
Article 44 Organizations and individuals outside People’s Republic of China (PRC) who violate the relevant provisions of this Law on export control, endanger People’s Republic of China (PRC)’s national security and interests, and hinder the performance of international obligations such as non-proliferation shall be dealt with according to law and their legal responsibilities shall be investigated.
Chapter V Supplementary Provisions
Article 45 The transit, trans-shipment, through transport and re-export of controlled items, or their export from special customs supervision areas such as bonded areas and export supervision warehouses, bonded logistics centers and other bonded supervision places, shall be carried out in accordance with the relevant provisions of this Law.
Article 46 The export of nuclear and other controlled items, which is not provided for in this Law, shall be implemented in accordance with the provisions of relevant laws and administrative regulations.
Article 47 The export of military products used for overseas use of armed forces, foreign military exchanges, military assistance, etc. shall be implemented in accordance with the provisions of relevant laws and regulations.
Article 48 If any country or region abuses export control measures to endanger People’s Republic of China (PRC)’s national security and interests, People’s Republic of China (PRC) may take reciprocal measures against that country or region according to actual conditions.
Article 49 This Law shall come into force as of December 1, 2020.