In late April 2022, China's Ministry of Commerce (MOFCOM) published draft regulations on export control of dual-use items for public consultation purposes. The draft regulations are another significant step towards improving China's export control regime following the start of the Export Control Law (the law) on 1 December 2020.

This article provides a high-level summary of the key aspects of the draft regulations, as well as our observations.

Scope of Application

The draft regulations generally apply to exports of dual-use items, which are defined in the law as items that can be used for civil applications as well as military applications or military potential enhancement. The term "items" refers to goods, services, technology, and relevant data.

The draft regulations, if finalised and implemented as published, will revise, consolidate and supersede current regulations on export control of most dual-use items (e.g., nuclear dual-use items, missiles and related items, biological dual-use items, etc.). The current regulations for controlled chemicals, subject to any future updates to align them with the law, are expected to continue to provide special rules for the export of controlled chemicals. However, certain general rules in the draft regulations may also apply to such exports.

The draft regulations will apply also to exports of other items requiring control because of the need to protect national safety and interests or to fulfill obligations under international agreements, unless other laws or regulations provide otherwise.

How We Can Help

Deloitte’s Global Trade Advisory specialists are part of a global network of professionals who can provide specialised assistance to companies in global trade matters. Our professionals can help companies seeking to manage the impacts and potential impacts of the developments described above by:

• Obtaining and analysing import data to assess the potential impacts of the trade measures;
• Scrutinising the accuracy of tariff classifications; and
• Planning changes to the supply chain.