【Important Announcement】

Ministry of Commerce Cancels Export Control on Graphite Electrodes

Spokesperson for the Ministry of Commerce Responds to Questions Regarding Export Control Policies on Graphite-related Items

Question: On October 20th, the Ministry of Commerce, in conjunction with the General Administration of Customs, issued a notice regarding export control measures on graphite-related items. Can you elaborate on China's adjustment of export control policies on graphite-related items and the considerations behind this move?

Answer: On October 20th, the Ministry of Commerce of China, together with the General Administration of Customs, announced the optimization and adjustment of temporary export control measures for graphite-related items. This announcement formally includes three highly sensitive graphite items, such as graphitized graphite, which were previously under temporary control, in the dual-use items' export control list. Simultaneously, temporary controls on five less sensitive graphite items primarily used in the national economic industries, such as steel, metallurgy, and chemicals, like furnace carbon electrodes, have been lifted. These policy changes will officially take effect from December 1, 2023. We have already communicated this to relevant countries and regions. 

The implementation of export control on specific graphite items is a common international practice. China, being the world's largest graphite producer and exporter, has long been committed to fulfilling international obligations such as non-proliferation. To maintain national security and interests, China has lawfully enforced export control on specific graphite items and imposed temporary controls on certain graphite items. In recent times, the Chinese government has conducted a comprehensive evaluation of temporary export control measures on graphite items in accordance with the Export Control Law. The decision to optimize and adjust these measures reflects the idea of balanced development and security. This will facilitate the better fulfillment of international non-proliferation obligations, safeguard the stability and security of global supply chains and industrial chains, and better protect national security and interests. China's export control adjustments are not directed at any specific countries or regions, and exports that comply with relevant regulations will be permitted.

Ministry of Commerce Announcement

Ministry of Commerce Website Screenshot

In accordance with the relevant provisions of the Export Control Law of the People's Republic of China, the Foreign Trade Law of the People's Republic of China, and the Customs Law of the People's Republic of China, and in order to safeguard national security and interests, with the approval of the State Council, the Ministry of Commerce, the State Commission of Science, Technology, and Industry for National Defense, and the General Administration of Customs have decided to optimize and adjust the scope of items listed in Announcement No. 50 of 2006 jointly issued by the Ministry of Commerce, the State Commission of Science, Technology, and Industry for National Defense, and the General Administration of Customs ("Decision on the Implementation of Temporary Export Control Measures for Graphite-related Products") and impose export control on some items. The relevant matters are announced as follows:

Ⅰ. Items with the following characteristics shall not be exported without a permit:

(1) Artificial graphite materials and their products with high purity (purity > 99.9%), high strength (flexural strength > 30Mpa), and high density (density > 1.73 grams/cubic centimeter), including but not limited to (as referenced by customs commodity numbers) 3801100030, 3801909010, and 6815190020.

(2) Natural flake graphite and their products, including but not limited to graphitized graphite and expanded graphite, and other items, including but not limited to (as referenced by customs commodity numbers) 2504101000, 2504109100, 3801901000, 3801909010, 3824999940, and 6815190020.

Ⅱ. Apart from the above items, the temporary export controls specified in Announcement No. 50 of 2006 ("Decision on the Implementation of Temporary Export Control Measures for Graphite-related Products") issued jointly by the Ministry of Commerce, the State Commission of Science, Technology, and Industry for National Defense, and the General Administration of Customs will be canceled for other items.

Ⅲ. Export operators shall follow the relevant regulations to complete export permit procedures. They should apply to the provincial commerce authorities for export permits, fill out applications for dual-use items and technology exports, and submit the following documents:

(1) Original or consistent copies/scans of export contracts or agreements.

(2) Technical descriptions or test reports of the items intended for export.

(3) Proof of the final user and end-use.

(4) Introduction of the importer and final user.

(5) Identification of the legal representative, major management personnel, and personnel handling the application.

Ⅳ. The Ministry of Commerce shall review the export permit application documents from the date of receipt and make decisions to grant or deny a permit within the legally prescribed time limit. Exports of items listed in this announcement that have a significant impact on national security shall be reported to the State Council by the Ministry of Commerce in conjunction with relevant departments for approval.

Ⅴ. If an export permit is granted upon review, the Ministry of Commerce will issue export permits for dual-use items and technology exports.

Ⅵ. Procedures for applying for and issuing export permits, handling special situations, retaining document materials, and other matters will be carried out in accordance with the relevant regulations stipulated in the Notice of the Ministry of Commerce and the General Administration of Customs No. 29 of 2005 ("Administrative Measures for Export and Import Licenses for Dual-Use Items and Technology").

Ⅶ. Export operators shall present the export permits to the customs and complete customs procedures as stipulated in the Customs Law of the People's Republic of China, and shall be subject to customs supervision. The customs will carry out customs clearance procedures based on export permits issued by the Ministry of Commerce.

Ⅷ. If export operators export items without a permit, exceed the scope of the permit, or engage in other illegal activities, they will be subject to administrative penalties imposed by the Ministry of Commerce or other relevant authorities in accordance with relevant laws and regulations. If they commit a crime, they will be subject to criminal prosecution in accordance with the law.

Ⅸ. This announcement shall take effect from December 1, 2023, and it simultaneously annuls Announcement No. 50 of 2006 jointly issued by the Ministry of Commerce, the State Commission of Science, Technology, and Industry for National Defense, and the General Administration of Customs ("Decision on the Implementation of Temporary Export Control Measures for Graphite-related Products"). Follow us to get the latest policy guidance on graphite and related products.

Ministry of Commerce, General Administration of Customs

October 20, 2023