On 20 October 2023 the Ministry of Commerce and the General Administration of Customs issued Announcement No. 39 of 2023, adjusting temporary export controls on graphite items. Three highly sensitive items, including spherical graphite, were formally added to the dual-use export control list, while temporary controls on five low-sensitivity items used mainly in steel, metallurgy and chemicals were removed. The announcement takes effect on 1 December 2023.
The adjustment is neither a simple tightening nor a simple loosening. It converts the list from temporary measures into routine management and tiers items by sensitivity.
Three highly sensitive items
The listed items mainly involve high-purity, high-specification graphite materials used in battery anodes, nuclear industry, aerospace and advanced manufacturing. Control depends on purity, particle size, density and impurity content, not the word “graphite”.
Technical staff should provide item parameters, and customs and legal teams should assess them against the list. Relying on a supplier’s product name invites missed classification.
Five low-sensitivity items released
The items removed from temporary control are used mainly in steel, metallurgy and chemicals. Exports no longer require a temporary licence, but general export management, customs declaration and destination law still apply.
Removal from control does not eliminate obligations. If an item is ultimately used for controlled purposes, or the customer is listed, other requirements may still apply.
Licences and end users
Exports of controlled items require a licence from the Ministry of Commerce, with end-user and end-use statements. Review focuses on military, nuclear, missile or other sensitive uses and on diversion or resale risk.
For long-standing customers, annual or project-level end-user files can be maintained; for one-off transactions and new customers, review each order. For traders and intermediaries, obtain written non-resale and non-diversion commitments and understand downstream customers.
Customer notification and contract adjustment
Before 1 December, companies should complete three tasks. First, notify customers of the change, identifying which items require licences and the expected effect on delivery. Second, revise delivery, licence and liability clauses, making a licence a condition precedent and addressing refusal. Third, update internal compliance and training so sales, customs and technical teams understand the new list.
Notification is not formalism. Early communication reduces claims and relationship damage from interrupted delivery and lets customers adjust procurement earlier.
Risk points
First, reading “low sensitivity” as “no controls at all”. Second, judging new transactions on the old list. Third, ignoring transshipment and re-export. Fourth, contracts without licence clauses, leaving liability unclear when delivery fails. Fifth, customer files containing only a business licence without end-use statements.
For export controls and licence applications, see our export controls service; for cross-border customers and multi-jurisdiction arrangements, see multi-jurisdiction compliance; for supply contract clauses, see commercial contracts.
This article is based on Announcement No. 39 of 2023 issued by the Ministry of Commerce and the General Administration of Customs. It is for reference only and does not constitute legal advice.