FedEx Cross Border has prepared a global list of prohibited and restricted items that apply regardless of a shipment's destination. The revised catalogue, released jointly by the MOFCOM and the Ministry of Science and Technology, deleted four items prohibited from export and five items subject to export restrictions. A total of 23 items subject to export restrictions were added to the catalogue while technical parameters of 21 items were revised. China Post Forbidden Item List Items with battery inside such as Mobile Phone, Walkie Talkie,Laptop, tablet,iPad etc. As of April 2017, only 115 items under the Chinese Commercial Code (CCC) were prohibited unless approved by the Board of Foreign Trade (BOFT) as special cases, and 16 items were permitted to be imported with conditions. Some items are prohibited (completely forbidden) and some are restricted (allowed under certain conditions). The timing of the proposed export controls is interesting as they come at the heels of deteriorating relations with the US (exemplified by the pressure on TikTok owner, ByteDance, to sell its US operations). China's revised list of prohibited and restricted tech export items does not target any specific firm, China's Ministry of Commerce (MOFCOM) said on Thursday. Endangered and rare animals and plants (including samples), their seeds and breeding materials 4. China Briefing is written and produced by Dezan Shira & Associates. 4 technology items prohibited from export: Delete 4 technology items prohibited from export, namely, microbial fertilizer technology, caffeine production technology, riboflavin production technology, vitamin fermentation technology. The practice assists foreign investors into China and has done so since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Goods Prohibited or Restricted at Import into or Exported from the UK 2 . Today, given its current heavyweight position as a top exporter of technologies – the latest restrictions and changes to China’s export control policy could matter greatly to foreign countries. The Chinese export control legislation follows recent US legislative curbs on doing business with or exports favoring certain Chinese firms due to concerns over national security, such as the use of technology exports for military use. Other items – now restricted – are high-performance detection technology, information defense, and countermeasures technologies. Exporting prohibited controlled items; and; Exporting controlled items without an export permit. Magnetic item such as headphone, earphone, speaker, amplifier, MP3, scanner etc. Certain items have regulatory, hazard, safety or other considerations and require approval from Regulatory Compliance, Risk Management and Legal departments prior to handling. including the most recent legal, tax and accounting changes that affect your business. Sorry, your blog cannot share posts by email. This law is expected to be enacted as soon as next year. China will establish an export control blacklist system for foreign importers or end users which violate the end user/end use requirements, endanger China's national security or national interests, or use controlled items for purposes of terrorism. Since China’s joining the World Trade Organization (WTO) in 2001, a lot of reforms have been implemented to adjust the country’s customs regulatory system to match international standards. Beijing ICP prepared NO.16065310-3, China: Revised list of banned tech export items does not target any specific firm. Why is China Introducing New Export Controls. The timing of the Announcement itself may be pertinent – just two weeks prior, on August 14, the US President Donald Trump gave the Chinese multinational internet technology giant, ByteDance, 90 days to divest of its control of the short-format video sharing social media giant, TikTok, in the American market or risk a ban. The licensing procedure is articulated mainly into two phases that can be summarized as follows: Based on the current legal framework, foreign companies should be prudent in dealing with Chinese companies engaging in activities related to restricted technologies – not only when it comes to purchasing tech products, but also, for example, when they buy technologies that might be rendered (almost) useless, if not supported by the transfer of a specific know-how, patent rights, or technical services. Click to share on Facebook (Opens in new window), Click to share on LinkedIn (Opens in new window), Click to share on Twitter (Opens in new window), Click to share on Reddit (Opens in new window), Click to email this to a friend (Opens in new window), deliberate on China’s new export control law, will deliberate on the new export control law at a session starting this week, China’s New Mechanism to Handle Complaints by Foreign-Invested Entities, Corporate Budget Planning 2021: Disruptions, China’s Consumer Market, Emerging ASEAN, the Digital RMB, and BRI Hot Spots, Dezan Shira & Associates' Service Brochure, An Introduction to Doing Business in China 2021, Annual Audit and Compliance in China: Prepare for 2021, Restructuring Your China Business to Outperform in the New Normal, Optimizing Your China Accounting and HR Processing with Cloud Technology, Opportunities for Foreign Investors in China’s Service Industries After COVID-19. 10. The State will prohibit or restrict transactions with blacklisted entities. Previous Article « China’s New Mechanism to Handle Complaints by Foreign-Invested Entities, Next Article Corporate Budget Planning 2021: Disruptions, China’s Consumer Market, Emerging ASEAN, the Digital RMB, and BRI Hot Spots ». Included among the stipulated items that will now require licensing are some of the newest and most important technologies, such as information processing technology (which include speech synthesis technology, artificial intelligence interactive interface technology, voice evaluation technology, intelligent scoring technology, personalized information based on data analysis push service technology) and cryptographic security technology (which include cryptographic chip design and implementation technology and quantum cryptography technology). List of Prohibited Items When Entering China 1. The start of a new year tends to be a hectic time for foreign companies in China. 5 technology items restricted from export This article was originally published September 14, 2020 and was updated on October 12, 2020 to reflect new developments. 4. China appears to be formalizing a new export control law that will implement export curbs to protect specific products, technologies, and services and require extra documentation from Chinese companies that export items on this list, according to reporting from Nikkei Asia. Doing Business in China 2021 is designed to introduce the fundamentals of investing in China. Prohibited Chemicals in China - Catalogue of Commodities Prohibited from Import (The 6th Batch) and the Catalogue of Commodities Prohibited from Export (The 3rd Batch) Prohibited Chemicals (2005) While the import and export of some toxic chemicals are restricted in China, some chemicals are strictly prohibited from import or export. But here the new changes must be considered in the international context, paying special attention to which technology exports will now be controlled and how that could affect future trade, investment, and/or economic and technical cooperation. Dezan Shira & Associates´ brochure offers a comprehensive overview of the services provided by the firm. Our subscription service offers regular regulatory updates, That put the deadline at September 20. The newest changes, however, come at a different time. Extra-Territorial Effect. China has amended the Catalogue several times in the past, though the last time it did so was back in 2008. The following articles are prohibited from shipment to all countries served by UPS: Ammunition (classified as an explosive or ORM-D/Explosive) Bank bills, Notes, and Currency (other than checks or collectible coins) Corpses, Cremated, or Disinterred Remains (human or animal, in … Every antique product is marked with a red wax seal indicating its authenticity that can be exported from China. If you’re shipping within the U.S., see Domestic Shipping Prohibitions & Restrictions. On the other hand, technologies listed in the restricted category will be subject to licensing administration – an approval must be obtained from relevant commerce departments in charge at the provincial level prior to making substantive negotiation with the foreign party and signing any contracts for the technology export. 1. On August 28, China released a revised catalogue of technologies that are subject to export bans or restrictions. China's revised list of prohibited and restricted tech export items does not target any specific firm, China's Ministry of Commerce (MOFCOM) said on Thursday. On August 28, 2020, the Ministry of Commerce of the People’s Republic of China (MOFCOM) and the Ministry of Science and Technology jointly issued the Announcement No. China News Service, Beijing, October 13 (Guo Chaokai, Huang Yuqin) The draft export control law was submitted to the 13th National People's Congress Standing Committee for three deliberations on the 13th. China’s new restrictions on exports include a bunch of deep technologies, including AI, drone, satellite and cybersecurity. The draft stipulates that in violation of relevant regulations, the export of controlled items prohibited by the country or exported without permission shall be investigated for criminal respon Geopolitical tensions have also tightened scrutiny on China’s overall tech market access. What is for sale is thus only TikTok’s American operations. In 2019, the contract value of technology exports rose to US$32.1 billion, which saw China’s exports closing the gap with the contract value of its technology imports. 3. Convention for the International Trade in Endangered Species (CITES): Border Force is responsible for enforcement of CITES controls relating to: The import from or export to non-EU countries (whether or not via another EU Contact our Business Intelligence Team. Dangerous arms such as gun, pistol, bullet, knife, gun powder etc China’s Incentives for Integrated Circuit, Software Enterprises, Modified the control points and technical parameters of 21 technical items, Have a question? Indeed while the export liberalization of certain items previously listed as prohibited will certainly benefit foreign stakeholders, the newly added restrictions are another matter. We also maintain offices assisting foreign investors in Vietnam, Indonesia, Singapore, The Philippines, Malaysia, Thailand, United States, and Italy, in addition to our practices in India and Russia and our trade research facilities along the Belt & Road Initiative. As of writing this article, ByteDance had not commented on the market rumors. The year 2020 challenged businesses around the world with the early breakout of the pandemic. For instance, among the newly restricted items, the computer service industry has been subject to substantial changes. Certain technologies will now be subject to export bans or restrictions, meaning they have to be greenlit by the Chinese government for sale overseas.… businesses establish, maintain, In this respect, the Regulations on Technology Import and Export Administration of the People’s Republic of China (“Regulation” revised in 2019) provide that the competent foreign trade department under the State Council shall, in conjunction with other relevant departments, formulate, regulate, and publish catalogues of technologies the import and export of which is prohibited or restricted. According to MOFCOM statistics, in 2013, the value of China’s technology export contracts was US$20 billion, less than half the value of its technology import contracts. Valuable cultural relics and other relics that are prohibited from exiting. 8: Goods of commercial value, samples, advertisements. How to adapt your China business strategy? By technology exports, China’s government refers to the transfer of technology from the People’s Republic of China to overseas through trade, investment, or economic and technical cooperation. How Can Foreign Technology Investors Benefit from China’s New Infrastructure Plan? and grow their operations. Chinese companies seeking permission to export the restricted items should note that Chinese authorities will assess the intended use of the products and services as well as make a judgment based on which foreign companies are involved. Gao Feng, a spokesperson from the ministry, made the remarks when he was asked whether the revision aims to delay the sale of China's short video sharing application TikTok. Please contact the firm for assistance in China at china@dezshira.com. Direct Export Merchant Control Merchant Login Tracking Customer Care. The ECL contains provisions by which China, to protect its national security or fulfill its international obligations, can prohibit the export of any relevant Controlled Items to any specified country, region, organization, or individuals. All kinds of poison, biochemical products and infectious materials Example: Such as anthrax, dangerous bacteria, medicine with waste, pesticides, thallium, cyanide, dioxins, DDT, chlordane, ractopamine, ractopamine hydrochloride, arsenic, tear gas, white crystals, powder, paste … The EC Law also creates an extra-territorial effect by expressly stating that any entities and individuals from outside of China who are violating this law will be held accountable according to the law (Article 44). specific format of such transfers could include patent assignment, transfer of patent application rights, patent licensing, transfer of technology secrets, technical services, and other forms of technology transfer. Other articles restricted from importation by the Customs List of Prohibited Items When Leaving China 1. The imposed restrictions, as previously mentioned, essentially means that the identified technologies cannot be exported from China without a license. 7: Other articles which are prohibited or restricted from being brought into the territory in accordance with the law of the People’s Republic of China. In fact, the export of data processing machines and related components alone were worth RMB 1.14 trillion (US$167 billion). 6: Radio transmitters, radio receivers, communication security equipments. Radio transmitter and communication security machines 2. 9 FedEx Cross Border is unable to ship prohibited and non-approved restricted items on behalf of its customers. The revision, in accordance with international practices, is to meet the need to promote global technology exchanges and cooperation, said Gao at a press conference, calling it a "routine adjustment. This is no longer surprising as China’s sophisticated supply chain has enabled it to become a high-tech export giant, with computers, power devices, broadcasting technology, telephones, and transport equipment dominating Chinese exports. Animals, plants and their by-products with hazardous germs or pests, including, meat, skins, horns ect. What are Restricted Items? Please note: Prohibited items are forbidden to be exported from the origin country or territory or imported to the destination country or territory. Most businesses with experience in China are accustomed to the complex, paper-intensive, and laborious manual ... Having suffered through the worst of the COVID-19 outbreak in the initial months of the year, China now offers... Dezan Shira & Associates helps The specific format of such transfers could include patent assignment, transfer of patent application rights, patent licensing, transfer of technology secrets, technical services, and other forms of technology transfer. However, it was reported Sunday by the Washington Post that ByteDance had made it clear to Microsoft that its proprietary algorithm, which powers TikTok, would not be for sale. Currency 5. Just today alone, word got out that ByteDance was considering a sale to Oracle Corporation to manage its US operations of TikTok and that Microsoft, a leading contender up till now, was effectively out of the picture – only to be followed up with media reports that China’s latest tech export rules “could block the transfer or sale of ByteDance’s artificial intelligence technologies”. China has removed four technical items that are prohibited from export, including microbial fertilizer technology, caffeine production technology, riboflavin production technology, and … These regulations have now been changed to classify all goods from China into three categories: prohibited items, controlled items and approved items. Endangered and precious animals and plants (and their samples), as well as their seeds and the materials for … To standardize the administration of technology exports, promote scientific and technological progress, facilitate foreign economic and technological cooperation, and maintain the economic security of the state – China has put in place a policy of catalogue management on technology exports since 1998. Other articles prohibited from import as stipulated by the state. ; 7. Compliance Strategies. Items like Chinese medicine herbs and gold and silver articles required purchase receipts. The bottom line here is that foreign companies now have to carefully evaluate any operation or investment that involves the restricted technologies as identified by China and be aware of the risk that the Chinese government could have legal grounds to intervene. 38 (2020) (“Announcement”) amending the Catalogue of Technologies Prohibited or Restricted from Export (“Catalogue”). Details are awaited on the new export law, including clarity on the scope of the export restrictions, what constitutes a threat to national security, guidance for firms to establish internal compliance mechanisms, and any punitive consequences or criminal liability in case export controls are violated. All the items that are prohibited from entering China . China added 23 cutting-edge technologies to a list of restricted exports items, according to a government circular posted on Friday night. (US$1=RMB 6.82). Hence, technologies listed under the Catalogue as prohibited (those that include materials containing state secrets, cultural relics and antiques, and endangered species) shall not be exported. If you want to send something to Taiwan which originates in China, whether a manufactured item or some kind of produce, the easiest way to find out if it is permitted is to use Taiwan’s own classification search tool. Items will be dealt with according to the current regulations. 21 The Enforcement Authorities conduct risk assessments of countries and regions to identify the risk and apply corresponding control measures. The Department of Commerce announced today new export control actions to prevent efforts by entities in China, Russia, and Venezuela to acquire U.S. technology that could be used in development of weapons, military aircraft, or surveillance technology through civilian supply chains, or under civilian-use pretenses, for military end uses and military end-users. Tobacco and alcohol 3. ", Copyright © 2020 CGTN. Post was not sent - check your email addresses! Use the resources here to help you make sure that your shipment complies with USPS and foreign country regulations. China has revised its exports restrictions list for the first time in 12 years. More specifically, in 2019, China exported nearly RMB 2.96 trillion (US$434 billion) worth of merchandise to the European Union – immediately followed by the United States – counting technologies among its top export goods, besides clothes and accessories. New Chinese export restrictions have left American companies’ U.S.-bound face masks, test kits and other medical equipment urgently needed to fight … In total, 53 items have been deleted, added, or revised – with new restrictions imposed on the export of 23 cutting edge technologies, which are either based on China’s indigenous intellectual property or are data-based personalized products that have become sensitive due to geopolitical assessment or foreign government scrutiny. The Standing Committee of the National People’s Congress will deliberate on the new export control law at a session starting this week. While this was initially a matter between the US entity and Washington DC, Beijing now appears to be invested and is expected to have a say on how the sale will be managed; in light of US-China back and forth, any technology controversy now gets framed in terms of national interest and intellectual property rights. Food, medicine or other articles coming from epidemic areas that is harmful to human health, obstructive to hygiene and infectious; 8. China Prohibited and Restricted Items. With the rapid development of science and technology and China’s own continuous improvement and rising industrial competitiveness, it was felt important that China adjust its Catalogue in keeping with international practice. Gao Feng, a spokesperson from the ministry, made the remarks when he was asked whether the revision aims to delay the sale of China's short video sharing application TikTok. Stay Ahead of the curve in Emerging Asia. Prohibited Items When Leaving China Do not buy any antique item that date before 1975, as they cannot be legally exported. With the ratcheting up of US-China trade tensions, the amendments to the Catalogue is believed to be part of China’s fight back in response to the US blocking its access to sensitive technology imports as well as introducing barriers for China to access its tech market. Accordingly, all technology exports, whether through trade or investment or other way, should strictly abide by the Regulation. 2. manuscripts, presswork, films, photographs, movies, audiotapes, videotapes, CDs, DVDs, computer storage devices and other things that involve state secrets. The following objects are prohibited from entry: objects listed in Paragraph 1 of Article 5 of the Law of the People's Republic of China on the Quarantine of Inbound and Outbound Animals and Plants, in the Catalog of the People's Republic of China for Plants Prohibited from Entry, and in the Catalog of the People's Republic of China for Animals, Animal Products and Other Quarantine Objects Prohibited from … In other words, the PRC government’s approval for the export of such items, and therefore the issuance of the relevant license, is a precondition for the effectiveness of the contract for technologies export.
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