Section 2

Administration of Export of Dual-use Items 

Article 21 When filing an application for the export of a dual-use item with the state export control authorities on dual-use items, an exporter shall truthfully submit the relevant materials according to provisions of laws and administrative regulations. 

Article 22 The state export control authorities on dual-use items shall handle applications for the export of dual-use items, and shall decide whether to approve or disapprove such applications within the statutory time period after reviewing the applications either independently or in conjunction with the relevant departments in accordance with this Law and other relevant laws and administrative regulations. Where the decision to approve an application is made, an export license shall be issued by the license issuing authority. 

Section 3

Administration of Export of Military Products 

Article 23 The state shall practice a monopoly system for the export of military products. An exporter shall first be accredited for the export of military products and operate within the business scope of accreditation. 

Such accreditation shall be granted by the state export control authorities on military products upon review.

Article 24 An exporter of military products shall, according to the control policies and the nature of the products to be exported, apply to the state export control authorities on military products for review and approval of the export of said products as well as the specific export programs and contracts. 

The export of major military products as well as the specific export programs and contracts shall be subject to review by the state export control authorities on military products in conjunction with relevant departments and thereafter be submitted to the State Council and the Central Military Commission for approval.

Article 25 Before exporting military products, the exporter shall apply to the relevant export control department of the state on military products for a license to export the military products. 

When exporting military products, the exporter shall submit to the Customs the license issued by the relevant export control department of the state on military products for inspection and go through formalities of customs declaration according to the relevant provisions of the state. 

Article 26 An exporter of military products shall authorize an approved military export transport company to transport the military products to be exported and provide other related services. Specific measures shall be formulated by the state export control authorities on military products in conjunction with the relevant departments. 

Article 27 An exporter or a scientific research or production entity of military products that intends to participate in an international military product exhibition shall apply for approval with the state export control authorities on military products in accordance with relevant procedures.

Chapter III

Supervision and Administration 

Article 28 The state export control authorities shall conduct supervision and inspection on the export of controlled items in accordance with the law. 

The state export control authorities may take the following measures when investigating suspected violations of this Law: 

(1) Entering the place of business of the party under investigation or any other relevant premise for inspection; 

(2) Questioning the party under investigation, or any interested party or other relevant organization or individual, and requiring them to explain the matters under investigation; 

(3) Consulting and making copies of the relevant documentation, agreements, account books, business correspondence and other documents and materials of the party under investigation or any interested party or other relevant organization or individual; 

Inspecting the means of transport used for export, stopping the loading of suspected items, or ordering the return of the items that have been illegally exported; 

(5) Sealing up or seizing items involved in a case; and 

(6) Checking the bank account of the party under investigation. 

The measures set forth in Subparagraph (5) or (6) of the preceding paragraph shall be taken with the written approval of the person in charge of the state export control authorities. 

Article 29 The state export control authorities shall perform their duties in accordance with the law, and the relevant departments of the State Council, local people's governments and their relevant departments shall provide assistance. 

Where the state export control authorities, independently or in conjunction with relevant departments, conduct an inspection or investigation in accordance with law, the relevant organizations and individuals shall cooperate and may not refuse to accept or obstruct the inspection or investigation. 

The state organs and their staff members conducting an inspection or investigation shall have the obligation to keep confidential any state secret, trade secret, personal privacy or personal information that has come to their knowledge during the investigation. 

Article 30 For the purposes of strengthening the administration of the export of controlled items and preventing the risks of violating the laws about the export of controlled items, the state export control authorities may take measures such as holding admonitory talks and issuing warning letters. 

Article 31 Any organization or individual shall have the right to report any suspected violation of this Law to an export control department of the state, and the export control administrative department of the state receiving such a report shall handle the matter in a timely manner in accordance with the law and shall keep the informant confidential. 

Article 32 The state export control authorities shall, in accordance with international treaties concluded or acceded to or based on the principle of equality and mutual benefits, conduct cooperation and exchange in export control with other countries or regions and international organizations.

Any organization or individual within the territory of the People's Republic of China shall comply with the relevant laws when providing export control-related information to parties overseas, and no organization or individual shall provide such information where it may endanger national security or interest. 

Chapter IV

Legal Liabilities 

Article 33 An exporter that engages in the export of a controlled item without accreditation thereof shall be given a warning and be ordered to cease the illegal act, with any illegal gains therefrom confiscated, and shall be fined not less than five times but not more than ten times the illegal turnover if the illegal turnover is 500,000 yuan or more, or not less than 500,000 yuan but not more than five million yuan if there is no such illegal turnover or the illegal turnover is less than 500,000 yuan.

Article 34 An exporter that commits any of the following acts shall be ordered to cease the illegal act, with any illegal gains therefrom confiscated, and shall be fined not less than five times but not more than ten times the illegal turnover if the illegal turnover is 500,000 yuan or more, or not less than 500,000 yuan but not more than five million yuan if there is no such illegal turnover or the illegal turnover is less than 500,000 yuan. If the circumstances are serious, the exporter shall be ordered to cease business operation for rectification, or even be discredited for the export of relevant controlled item:

(1) Exporting any controlled item without a license;

(2) Exporting a controlled item beyond the scope set forth in the export license; and 

Exporting an item that is prohibited to export.

Article 35 Where a license for the export of any controlled item is obtained by fraud, bribery, or any other improper means, or is illegally transferred, the licensing shall be revoked, with the export license surrendered and the illegal gains therefrom confiscated, and the violator shall be fined not less than five times but not more than ten times the illegal turnover if the illegal turnover is 200,000 yuan or more, or not less than 200,000 yuan but not more than two million yuan if there is no such illegal turnover or the illegal turnover is less than 200,000 yuan.

Where a license for the export of any controlled item is forged, altered, or traded, the illegal gains therefrom shall be confiscated, and the violator shall be fined not less than five times but not more than ten times the illegal turnover if the illegal turnover is 50,000 yuan or more, or not less than 50,000 yuan but not more than 500,000 yuan if there is no such illegal turnover or the illegal turnover is less than 50,000 yuan. 

Article 36 Whoever with the knowledge of an exporter's violation of export control laws still provides the exporter with agency, freight, delivery, customs declaration, third-party e-commerce trading platform, financial, or other services shall be given a warning and be ordered to cease the illegal act, with any illegal gains therefrom confiscated, and shall also be fined not less than three times but not more than five times the illegal turnover if the illegal turnover is 100,000 yuan or more, or be fined not less than 100,000 yuan but not more than 500,000 yuan if there is no such illegal turnover or the illegal turnover is less than 100,000 yuan.

Article 37 An exporter that trades with any importer or end user on the restricted namelist in violation of this Law shall be given a warning and be ordered to cease the illegal act, with any illegal gains therefrom confiscated, and shall be fined not less than 10 times but not more than 20 times the illegal turnover if the illegal turnover is 500,000 yuan or more, or not less than 500,000 yuan but not more than five million yuan if there is no such illegal turnover or the illegal turnover is less than 500,000 yuan. If the circumstances are serious, the exporter shall be ordered to cease business operation for rectification, or even discredited for the export of the relevant controlled item. 

Article 38 An exporter that refuses to accept or obstructs an inspection shall be given a warning and fined not less than 100,000 yuan but not more than 300,000 yuan. If the circumstances are serious, the exporter shall be ordered to cease business operation for rectification, or even discredited for the export of the relevant controlled item.

Article 39 From the date when the decision punishing an exporter for violation of this Law comes into force, the state export control authorities may refuse to accept any application for an export license filed by the exporter within five years; and the directly liable person in charge and other directly liable persons may be prohibited from conducting the relevant export operations for five years, or for life, if such persons are held criminally liable for any violation of the export control laws.

The state export control authorities shall, in accordance with the law, include any violation of this Law by an exporter in its credit records. 

Article 40 Export control-related violations as set forth in this Law shall be punished by state export control authorities. Where any other law or administrative regulation provides that an export control-related violation shall be punished by the Customs, the Customs shall impose punishment in accordance with this Law.

Article 41 An organization or individual may apply for administrative reconsideration against the decision not to approve imposed thereupon by the state export control authorities. The decision of administrative reconsideration shall be final.

Article 42 Any state functionary engaged in the export control that neglects duty, practices favoritism or fraud, or abuses power shall be imposed with a disciplinary action in accordance with the law.

Article 43 Any export control-related violation as is set forth of this Law which endangers national security or interest shall be punished in accordance with other relevant laws and administrative regulations, in addition to being punished in accordance with this Law. 

Whoever, in violation of this Law, exports any controlled item prohibited to be exported by the state or exports any controlled item without a license shall be held criminally liable in accordance with the law.

Article 44 Where any organization or individual outside the territory of the People's Republic of China violates the provisions of this Law on the administration of export control, which endangers the national security and interest of the People's Republic of China, or obstructs the fulfillment of nonproliferation and other international obligations, the organization or individual shall be held legally liable and be punished in accordance with the law. 

Chapter V

Supplementary Provisions

Article 45 The transit, transshipment, through shipment, or re-export of controlled items, or the export of controlled items to overseas from areas under special customs supervision such as bonded areas and export processing zones, as well as bonded places under customs supervision such as export supervision warehouses and bonded logistics centers, shall be governed by the relevant provisions of this Law.

Article 46 What is not provided in this Law about the export of nuclear and other controlled items shall be governed by the relevant laws and administrative regulations.

Article 47 The export of military products for overseas military operations, foreign military exchanges, and military assistance, among others, shall be governed by the provisions of relevant laws and regulations.

Article 48 Where any country or region endangers the national security or interest of the People's Republic of China by abusing export control measures, the People's Republic of China may take counter measures against such a country or region according to the actual circumstances.

Article 49 This Law shall come into force as of December 1, 2020.