Dual-use substances
- Document symbol
- G/LIC/N/3/CHN/23
- Original language
- English
- Published on
- 27/01/2025
Outline of Systems
Q1. Give a brief description of each licensing system as a whole and, with respect to each, reply to the following questions as relevant, placing all of the material with respect to a given system in sequence together, and using cross references as appropriate when elements which have already been described are also present in another system.
China applies import (export) licenses to specific dual-use substances for the purposes of safeguarding national security and public interest and performing the obligations under relevant international agreements.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
Import licenses apply to all commodities in 2024 specified in the Catalogue for Commodities Subject to Import Licenses in 2024 (Announcement of the Ministry of Commerce and the General Administration of Customs [2023] No. 64), including ozone depleting substances and key used mechanical and electronic products.
Q3. The system applies to goods originating in and coming from which countries?
The import licensing system in China does not differentiate the places of origin of products unless otherwise provided for in the free trade agreements entered into by China and relevant countries and regions.
Q4. Is the licensing intended to restrict the quantity or value of imports, and if not, what are its purposes? Have alternative methods of accomplishing the purposes been considered and if so which? Why have they not been adopted?
China has not maintained any restrictions on quantity that do not comply with WTO rules and China's commitments upon its accession into WTO.
Q5. Cite the law, regulation and/or administrative order under which the licensing is maintained. Is the licensing statutorily required? Does the legislation leave designation of products to be subjected to licensing to administrative discretion? Is it possible for the government (or the executive branch) to abolish the system without legislative approval?
The Foreign Trade Law (promulgated by Decree of the President [1994] No. 22 and amended by Decree of the President [2004] No. 15), the Administrative Licensing Law (Decree of the President [2003] No. 7), the Law on the Prevention and Control of Environmental Pollution by Solid Waste (promulgated by Decree of the President [1995] No. 58 and amended by Decree of the President [2016] No.57) and the Regulations on Administration of Import and Export of Commodities (Decree of the State Council [2001] No. 332) prescribe the basic system and legal principles applicable to import licensing. Pursuant to the above-mentioned laws and regulation, with respect to commodities subject to import license and automatic import licensing, the currently effective rules promulgated by the Ministry of Commerce (the former Ministry of Foreign Trade and Economic Cooperation) and the Ministry of Ecology and Environment (the former Ministry of Environmental Protection)are the Measures for the Administration of Commodity Import Licenses (Decree of the Ministry of Commerce [2004] No. 27), the Measures for the Administration of Commodity Automatic Import Licenses (Decree of the Ministry of Commerce and the General Administration of Customs [2004] No. 26,amended by Decree of the Ministry of Commerce [2018] No.7), Measures for the Administration of the Import of Electromechanical Products (Decree of Ministry of Commerce, General Administration of Customs and General Administration of Quality Supervision , Inspection and Quarantine [2008] No.7, amended by Decree of the Ministry of Commerce [2018] No. 7), Measures for the Administration of Import of Certain Used Electromechanical Products (Decree of Ministry of Commerce, General Administration of Customs and General Administration of Quality Supervision, Inspection and Quarantine [2008] No. 5, amended by Decree of the Ministry of Commerce [2018] No.7), Implementation Measures for the Automatic Import Licensing of Electromechanical Products (Decree of Ministry of Commerce and General Administration of Customs [2008] No.6, amended by Decree of the Ministry of Commerce [2018] No. 7) and the Administrative Measures on the Import of Solid Wastes (Decree of the Ministry of Environmental Protection, the Ministry of Commerce, the National Development and Reform Commission, the General Administration of Customs, and the General Administration of Quality Supervision, Inspection and Quarantine [2011] No. 12). In conformity with said rules, the Ministry of Commerce promulgates every year, in the form of announcements, the Catalogue for Commodities Subject to Import Licensing and the Catalogue for Commodities Subject to Automatic Import Licensing and the adjustments thereto. In addition, other currently effective rules and administrative measures in relation to import licensing are the Measures for the Administration of Issuing Authorities of Import and Export Commodity Licenses (Decree of the Ministry of Commerce [2010] No. 3), the Regulations on Administration of Import and Export Licenses (Decree of the Ministry of Commerce [2012] No. 1) and the Working Rules on Issuance and Utilization of Import Licenses (Shang Pei Fa [2020] No. 208).
Procedures
Q6. For products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally):
Q6.I. Is information published, and where, concerning allocation of quotas and formalities of filing applications for licences? If not, how is it brought to the attention of possible importers? Of governments and export promotion bodies of exporting countries and their trade representatives? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
Q6.II. How is the size of the quotas determined: on a yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for fresh licence on a six-monthly or quarterly basis?
Q6.III. Are licences allotted for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are the names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate.)
Q6.IV. From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
Q6.V. What are the minimum and maximum lengths of time for processing applications?
Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
Q6.VII. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Q6.VIII. If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and, if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
Q6.IX. In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
Q6.X. In cases where imports are allowed on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
Q7. Where there is no quantitative limit on importation of a product or on imports from a particular country:
Q7.a. How far in advance of importation must application for a licence be made? Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence (for example, owing to inadvertency)?
Q7.b. Can a licence be granted immediately on request?
Q7.c. Are there any limitations as to the period of the year during which application for licence and/or importation may be made? If so, explain.
Q7.d. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Q8. Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria? Are the reasons for any refusal given to the applicant? Have applicants a right of appeal in the event of refusal to issue a licence and, if so, to what bodies and under what procedures?
For the commodities subject to import license, the application of license may be rejected if the applicant does not conform to the provisions of Chapter II or Chapter III of the Measures for the Administration of Commodity Import Licenses (Decree of the Ministry of Commerce [2004] No. 27).
The applicant will be reformed of reasons for the refusal, and the legal rights to resort to an administrative reconsideration or administrative suit.
Eligibility of Importers to Apply for Licence
Q9. Are all persons, firms and institutions eligible to apply for licences: (If not, is there a system of registration of persons or firms permitted to engage in importation? What persons or firms are eligible? Is there a registration fee? Is there a published list of authorized importers?) a) under restrictive licensing systems? b) under non-restrictive systems?
On commodities subject to import licenses, automatic import licensing and import tariff-rate quotas, save for that commodities under state-trading administration need to be imported by agents of state‑trading enterprises, any person or firm who satisfies the commodity specific business qualifications and requirements may apply for a license for the importation of such commodities. There is a published list of state-trading enterprises.
Documentational and Other Requirements for Application for Licence
Q10. What information is required in applications? Submit a sample form. What documents is the importer required to supply with the application?
Information and materials required to be provided to apply for import licenses are detailed in Chapter II and Chapter III of the Measures for the Administration of Commodity Import Licenses (Decree of the Ministry of Commerce [2004] No. 27).
Q11. What documents are required upon actual importation?
Documents required to be provided for actual import of commodities subject to import license are detailed in the Measures for the Administration of Commodity Import Licenses (Decree of the Ministry of Commerce [2004] No. 27).
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
No.
Q13. Is there any deposit or advance payment requirement associated with the issue of licences? If so, state the amount or rate, whether it is refundable, the period of retention and the purpose of the requirement.
No.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
The validity of an import license is one year, effective in the year, which can be extended for once for no more than three months.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
For the commodities subject to import license and automatic import licensing, the non-utilization or a portion of a license will not be subject to penalty.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
Import licenses, automatic import licenses and tariff-rate quota certificates are non-transferable.
Q17. Are any other conditions attached to the issue of a licence? a) for products subject to quantitative restriction? b) for products not subject to quantitative restriction?
There is no other condition.
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
Inspection and quarantine certifications issued by the quality inspection authority shall be provided for commodities listed in the statutory inspection catalogue before import.
Q19. Is foreign exchange automatically provided by the banking authorities for goods to be imported? Is a licence required as a condition to obtaining foreign exchange? Is foreign exchange always available to cover licences issued? What formalities must be fulfilled for obtaining the foreign exchange?
China does not maintain limitation on international payment of trade in goods.