【Export Policy】From December, Graphite Items Are Formally Included in Export Controls ...

 The rapid growth of the EV and energy storage industries is boosting demand for high-performance lithium batteries, driving the market for quality petroleum coke and synthetic graphite. The quality and particle size of calcined petroleum coke directly affect synthetic graphite performance, especially in anode production.

【Export Policy】From December, Graphite Items Are Formally Included in Export Controls — How Should Enterprises Respond

On October 20, 2023, the Ministry of Commerce (MOFCOM) and the General Administration of Customs (GAC) jointly issued the Announcement on Optimizing and Adjusting Temporary Export Control Measures for Graphite Items, deciding to optimize and adjust the scope of items listed in Announcement No. 50 of 2006 issued by the Ministry of Commerce, the Commission of Science, Technology and Industry for National Defense, and the General Administration of Customs (Decision on Implementing Temporary Export Control Measures on Graphite-Related Products), and to place certain items under export control.

According to this announcement, the relevant measures will be formally implemented from December 1, 2023, and Announcement No. 50 of 2006 (Decision on Implementing Temporary Export Control Measures on Graphite-Related Products) will be repealed simultaneously.

I. Which graphite items have changed in terms of export control?

According to the announcement, three highly sensitive graphite items that were previously subject to temporary control are now formally included in the Dual-Use Items Export Control List:

Artificial graphite materials and their products with high purity (purity > 99.9%), high strength (flexural strength > 30 MPa), and high density (density > 1.73 g/cm³)
(Reference HS Codes: 3801100030, 3801909010, 6815190020)

Natural flake graphite and its products (including spherical graphite, expanded graphite, etc.)
(Reference HS Codes: 2504101000, 2504109100, 3801901000, 3801909010, 3824999940, 6815190020)

At the same time, apart from the above items, five low-sensitivity graphite items, such as furnace carbon electrodes, which are mainly used in steel, metallurgy, chemical engineering, and other basic national industries, are removed from the temporary control list under the 2006 graphite control measures.

II. How should relevant enterprises respond?

After confirmation with the Ministry of Commerce, for enterprises engaged in the export of graphite-related products:

Before December 1, 2023, when exporting graphite products listed under the temporary control, enterprises shall still apply for dual-use items and technology export licenses in accordance with the old requirements;

From December 1, 2023, when exporting the three high-sensitivity graphite items that are formally included in the Dual-Use Items Export Control List, enterprises shall apply for dual-use items and technology export licenses as required;

From December 1, 2023, when exporting the other five low-sensitivity graphite items, enterprises will no longer be required to apply for dual-use items and technology export licenses.

High-sensitivity graphite items are applied in nuclear energy, new energy, energy storage, energy conservation and environmental protection, aviation, aerospace, biomedicine, electronic information, new materials, and high-end equipment. This optimization and adjustment reflects the regulatory concept of balancing development and security, is conducive to better fulfilling international non-proliferation obligations, helps ensure the security and stability of global industrial and supply chains, and better safeguards national security and interests. As enterprises, they must also fulfill corporate responsibilities and obligations, and apply for the relevant export licenses in accordance with national policies before export.

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