CHINA PUBLISHES EXPORT CONTROL GUIDELINES

On April 28, the Chinese Ministry of Commerce published guidelines on export control of dual-use goods, which replace the previous views MOFCOM of 2007 and making compliance suggestions to exporters.

The new law on export control of dual-use goods entered into force in China on December 1, 2020. The Guidelines, which do not constitute a “mandatory” text, outline behaviors and practices of compliance with the new legislation and apply not only to exporters, but to all those involved in the export operations of dual-use goods, such as shipping companies, freight forwarders, transporters, customs declarants, managers of e-commerce sales and financial services platforms, research institutes engaged in the development of dual-use products. The Guidelines, following the provisions of the US Department of Commerce and the Bureau of Industry and Security (BIS), identify nine criteria based on a serious compliance program, including the signing of appropriate corporate policies, the preparation of specific audits, the drafting and updating of a risk assessment document, the drafting of a compliance manual. Licensing facilities and mitigated penalties will reward companies’ adjustment efforts.