1. The system
Export licences in China are administered through a set of catalogues and issuing authorities.
2. The two catalogues
The prohibited catalogue
Goods that may not be exported.
The restricted catalogue
Goods that require a licence.
3. The issuing authorities
The Ministry of Commerce.
The provincial commerce departments.
Customs for certain categories.
4. The application
The exporter applies, submits the supporting documents, and receives a licence valid for a period.
The licence number is entered on the export declaration.
5. The supporting documents
The contract.
The product specifications, often including technical parameters.
Sometimes the end-user statement.
6. The dual-use regime
The most demanding category.
The end user and end use have to be documented.
The licence is specific to the consignee and the destination.
7. The timing
Application to issuance varies by category, from days to weeks.
8. A scenario
An exporter assumed that a licence would be issued quickly and booked freight before applying.
The application required an end-user statement from the buyer, which took ten days.
9. Closing view
The licence is a scheduling constraint, not a formality.
It has to be on the critical path.
*This article is based on China’s export licensing administration.*