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To better comply with the Chemical Weapons Convention (CWC), an arms control treaty administered by the Organisation for the Prohibition of Chemical Weapons (OPCW), China published the Regulations on Administration of Chemicals Subjected to Supervision and Control (hereinafter referred to as the Regulation) and its Implementation Rules (hereinafter referred to as the Implementation Rules).
The Implementation Rules specified management and control measures of chemicals subject to supervision and control in regard to production, operation, application, import and export activities. This article will focus on the compliance requirements for the import and export of chemicals subject to supervision and control.
Chemicals subject to supervision and control
According to the Implementation Rules, chemicals subject to supervision and control are categorized as followed:
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The Ministry of Industry and Information Technology (MIIT) is responsible for the management of chemicals subject to supervision and control. Currently, MIIT has designated and published the concerned chemicals by releasing the Catalogue of Chemicals subject to Supervision and Control, List of Newly Added Category 3 Chemicals Subject to Supervision and Control, and List of Part of Category 4 Chemicals Subject to Supervision and Control (2019 Edition) Index.
China implements a licensing system for the import and export of chemicals subject to supervision and control (Category 4 excluded).
How to tell if a license application is required for the import or export of goods?
Option 1: Check the compositions of the goods (pure substances and mixtures) and find that the ingredients are included in the Catalogue of Chemicals subject to Supervision and Control (Category 4 excluded) or the List of Newly Added Category 3 Chemicals Subject to Supervision and Control；or
Option 2: Check the HS code of import and export goods (pure substances and mixtures) and find that the HS code is included in the Catalogue of Dual-Use Items and Technologies Subject to Import and Export License Administration (Hereinafter referred to as the Catalogue of Dual-Use Items)
Note: The Catalogue of Dual-Use Items is issued jointly by the Minister of Commerce and the General Administration of Customs. According to the Measures for the Administration on Import and Export License for Dual-use Items and Technologies, the catalogue listed items and technologies that are required to apply for import or export license. Chemicals subject to supervision and control (Category 4 excluded) are all covered in this catalogue. Thus, we can also identify if the goods subject to import or export licensing by compare their HS codes against those listed in the Catalogue of Dual-Use Items.
Import and export license application
The required application materials are: import/export application form for chemicals subject to supervision and control;
For import: individual or business application form for the import of chemicals subject to supervision and control (approval from the authority is required). For export: a letter of guarantee issued by the government or entrusted agency of the importing country (the name, quantity, end-use of the chemical as well as the name and address of the end-user should be indicated on the letter);
Original import/export contract.
The application procedure is as followed:
Post-licensing obligation/reporting obligation
As requested by the Implementation Rules, designated units commissioned for the import/export of Category 1, 2, 3 chemicals are required to repot import/export data to MIIT and keep proper records of import/export activities. In addition, companies that operate in the import/export of chemicals subject to supervision and control shall declare National Statistical Statement for Chemicals Subject to Supervision and Control as stipulated by the Implementation Rules.
Compliance strategy
Companies need to first identify if their commercial items contain chemicals that fall under the Catalogue of Dual-Use Items before import/export activities.
If it is determined that an import/export license is required for the shipment, prepare the application materials in advance. Make sure your designated unit can obtain the license before the arrival of the shipment to ensure smooth custom clearance.
According to the Implementation Rules, if the chemicals subject to supervision and control is below a certain concentration threshold, data declaration and import/export license can be exempted. However, the relevant policy has not been published yet. It is still advised for companies to apply for import/export license regardless of the concentration level.
