New Rule in China (Effective October 1, 2025)

Mandatory Export License: All Chinese suppliers must obtain an official license issued by the Ministry of Commerce (MOFCOM – Ministry of Commerce of the People’s Republic of China) to export controlled goods.

MOFCOM is the Chinese ministry that shapes the country’s trade and investment policy, both domestically and internationally. It is a major geopolitical actor, capable of reshaping global trade flows.

MOFCOM is the central authority responsible for China’s trade and economic policy. Its missions include:
  • Domestic and foreign trade: Drafting laws, regulations, and trade policies; supervising imports and exports.
  • Foreign investment and economic cooperation: Managing foreign investment in China; overseeing Chinese investment abroad; coordinating economic aid and international cooperation.
  • Trade negotiations: Representing China in bilateral and multilateral negotiations (e.g., WTO); collaborating with other ministries on major economic projects.
  • Domestic market regulation: Tax registration: Exporters must register with Chinese tax authorities before customs clearance. End of third-party declarations: It is no longer possible to use another company’s license or name to declare exports.
MOFCOM’s influence on global trade includes:
  • Control of strategic exports
  • International trade negotiations
  • Support for multilateralism
  • Belt and Road Initiative (BRI)
  • Stricter Controls: Authorities (MOFCOM, Customs, Tax Administration) will enforce tighter monitoring.
  • Scope: Dual-use goods, sensitive technologies, and products listed on export control lists are affected.

Importers:  Must verify that their Chinese suppliers hold the required license and registration. They should anticipate delays and confirm compliance.

Suppliers: Must prepare for administrative procedures, invest in compliance, and avoid reliance on intermediaries.

Supply Chain: Expect stricter checks and possible delays if documentation is incomplete.

Global Markets: Risk of price increases and geopolitical tensions, especially in energy and defense sectors.

Industries Most Affected

China’s 2025 export license rules mainly target strategic industries: semiconductors, rare earths, lithium batteries, advanced technologies, and medical equipment.

Key sectors:

  • Semiconductors and advanced electronics
  • Rare earths and specialized magnets
  • Lithium batteries and energy components
  • Dual-use and sensitive technologies (advanced tech, strategic materials, civil/military goods)
Mandatory Export License
  • Meaning: All Chinese suppliers must obtain a MOFCOM-issued license to export controlled goods.
  • Objective: Strengthen product traceability and prevent unauthorized exports.
  • Products: Advanced technologies, strategic materials, dual-use goods.
Prior Tax Registration
  • Requirement: Exporters must register with the Chinese Tax Administration before customs clearance.
  • Consequence: Prevents unregistered or shell companies from exporting.
  • Impact: Greater formalization of foreign trade actors.
Ban on Third-Party Declarations
  • Before: Companies often used another firm’s license or name for customs declarations.
  • Now: Only the actual supplier can declare under its own name.
  • Goal: Eliminate opaque practices and strengthen legal accountability.
Enhanced Oversight by Authorities
  • Agencies: MOFCOM, Customs, Tax Administration.
  • Methods: Cross-checks, audits, digital traceability.
  • Effect: Increased monitoring of trade flows and exporting companies.
Expanded Scope
  • Dual-use goods (e.g., drones, encryption software)
  • Sensitive technologies (e.g., AI, semiconductors)
  • Strategic resources (e.g., rare earths, lithium)
  • Dynamic list: MOFCOM may add or remove products based on national priorities.
Purpose of the Reform
  • National security: Protect critical technologies and limit their spread abroad.
  • Industrial sovereignty: Control exports of strategic resources.
  • Geopolitical response: Strengthen controls amid international trade tensions.
International Importer Checklist – China (Post–October 1, 2025):
Before signing a contract
  • Verify supplier’s tax registration.
  • Confirm supplier holds a valid export license.
  • Include a compliance clause in contracts requiring proof of conformity.
  • Check product classification to avoid restricted goods.
Before shipment
  • Ensure supplier has applied for an export license with MOFCOM.
  • Verify customs declaration is made under the supplier’s own name.
  • Confirm tax declaration is completed before customs clearance.
Customs clearance
  • Required documents:
  • MOFCOM export license
  • Customs declaration under registered exporter’s name
  • Proof of tax compliance
  • Consistent import documents (invoice, packing list, bill of lading)
After clearance
  • Retain all compliance documents for audits.
  • Adjust payment terms to account for possible delays.
  • Monitor updates to China’s control lists and sanctions.
Key Points
  • Possible delays: Build logistics buffers.
  • Sanctions: Risk of seizure if non-compliant.
  • Disruptions: Some products may be banned from export.
Alternative for Non-Licensed Suppliers

If a Chinese supplier lacks an export license, the most common legal option is to use a China Trading Company: The trader holds a MOFCOM export license and becomes the official exporter on customs documents.

Advantages:

  • Legal compliance with Chinese export rules
  • Simplified handling of customs and logistics
  • Flexible solution for smaller factories without licenses

For your information, please note that an export license is an official authorization issued by Chinese authorities permitting the export of certain controlled products.

As an example, a license number may be presented in a format similar to: CN-EC-2026-00123456.

The indicative structure may be understood as follows:

  • CN: country code corresponding to China;
  • EC: indicative reference related to export control;
  • 2026: year of issuance;
  • 00123456: unique reference number assigned to the license.

Please note however that this format is provided for example purposes only. The exact format of the license number may vary depending on the type of license, the product concerned, and the competent Chinese authority.

We therefore invite you to request confirmation of the official export license number from your supplier, should one be required for this shipment.