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Hot off the Press! Export Control Law of the PRC
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On 17 October 2020, <The Export Control Law of the People's Republic of China> was adopted and promulgated by the National People’s Congress, which will come into effective on 1 December 2020.According to the law, where any country or region harms the national security and interests of China by abusing the export control measures, China may take reciprocal measures against such country or region in light of the actual situations.
The highlights are as follows:1. The law is applicable to export control by the State over dual-use items, military products, nuclear, and other goods, technologies, services and items that relate to the safeguarding of national security and interests (hereinafter collectively referred to as the "controlled items").For the purpose of the law:"Export control" refers to prohibitive or restrictive measures taken by the State against the transfer of controlled items from the territory of China to overseas, and the provision of controlled items by citizens, legal persons and other non-incorporated organizations of China to foreign organizations and individuals."Dual-use items" refers to goods, technologies and services that can be used for both civil and military purposes or are conducive to enhancing military potential, especially those that can be used to design, develop, produce or use weapons of mass destruction and the means of delivery thereof."Military products" refer to equipment, special production equipment and other related goods, technologies and services used for military purposes."Nuclear" refers to nuclear materials, nuclear equipment, non- nuclear materials used for reactors, and relevant technologies and services.2. The State adopts a unified export control system, which is subject to administration through the formulation of a control list, directory or catalogue, the implementation of export permission, or otherwise.3. The State's export control authorities shall, in concert with other related departments, formulate and adjust the list of items subject to export control pursuant to the provisions of the present law and other relevant laws and administrative regulations, export control policies and specified procedures, and promptly release the same.The State's export control authorities may, impose temporary control over goods, technologies and services not included in the export control list, and make announcements thereof. The duration of temporary control shall not exceed two years.
5. The State adopts a licensing system for the export of controlled items.6. Exporters shall submit to the State's export control authorities documents certifying the end-user and end-use of controlled items; the relevant certifying documents shall be issued by the end-user or the government agency of the country or region where the end-user is located.7. The end-user of controlled items shall undertake not to change the ultimate uses of the relevant controlled items or transfer such items to any third party without the consent of the State's export control authorities.8. The State's export control authorities establish a risk management system regarding end-users and ultimate uses of controlled items, and evaluate end-users and ultimate uses of controlled items, review and strengthen administration of end-users and ultimate uses.9. The State's export control authorities shall supervise and inspect activities in respect of the export of controlled items in accordance with laws.Whoever, in violation of the provisions of the present Law, exports controlled items the export of which is prohibited by the State or exports controlled items without permission will be investigated for criminal liability according to the law.
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