1. The process
Where an export licence is required, the application runs through the Ministry of Commerce’s licensing system.
Four stages.
2. Establishing that a licence is required
Before applying, confirm the product’s classification.
The control lists specify the goods and the technical parameters. Where the product falls within a listed category and meets the parameters, a licence is required.
Where the classification is unclear, an application for a classification opinion can resolve it.
3. The application documents
Typically:
The application form, filed electronically.
The export contract or the purchase order.
The end-user certificate, for dual-use items.
The end-use statement, describing what the goods will be used for and by whom.
The importer’s undertaking, for sensitive destinations or items.
Technical specifications of the goods.
The exporter’s business licence and foreign trade operator registration.
4. The end-user certificate
For dual-use items, this is the document that carries most of the weight.
It is issued by the end user, and typically certified by the end user’s government or a chamber of commerce, depending on the requirement.
It states:
Who the end user is.
What the goods will be used for.
That the goods will not be re-exported or transferred without authorization.
That the goods will not be used for prohibited purposes.
The requirements for certification vary by item and destination.
5. The review
The licensing authority reviews the application for:
Whether the goods fall within the controlled category.
Whether the end user and end use are acceptable.
Whether the destination raises concerns.
Review time varies with the item and the destination, from days to several weeks.
6. The licence
Where granted, the licence specifies:
The goods, by description and quantity.
The consignee and end user.
The destination.
The validity period.
The licence number, which is quoted in the customs declaration.
7. The customs interface
The customs declaration references the export licence number.
Chinese customs verifies that the declaration matches the licence: goods, quantity, consignee, destination.
Where the declaration differs from the licence, the declaration is refused.
8. Common errors
Applying without confirming classification
The application is for a product that does not need a licence, or is the wrong licence type.
Deficient end-user certificate
The most common reason for delay.
Declaration not matching the licence
Refused at customs.
Applying too late
Review time varies, and the shipment schedule has to accommodate it.
Assuming the licence covers a broader scope
The licence covers the goods and quantity stated.
9. The electronic system
China’s export licensing applications are filed through the Ministry of Commerce’s online system.
The system allows status tracking and document upload.
Where the application is returned for correction, the correction and resubmission are through the same system.
10. Closing view
The application is procedurally clear and substantively demanding, with the end-user documentation carrying most of the weight.
Exporters who prepare the end-user certificate carefully and confirm the classification before applying move through the process without difficulty.
*This article is based on China’s export licensing procedures administered by the Ministry of Commerce. Exporters should confirm current requirements with the competent authority.*