Navigating China’s Updated Customs Inquiry Process for Dual-Use Item Exports: A Guide for International Chemical/Dangerous Goods Logistics

Introduction

As a critical link in the global supply chain, we are committed to providing transparent and reliable logistics solutions while ensuring full compliance with the laws and regulations of origin, destination, and transit countries. Recently, China’s General Administration of Customs (GAC) issued Announcement No. 123 of 2025, which further clarifies and optimizes the customs inquiry procedure for exports controlled as "Dual-Use Items." This announcement directly impacts goods exported from China that may have both civilian and military applications, particularly certain chemicals, raw materials, equipment, and technologies with specific properties. This article aims to clearly explain this new regulation to our overseas clients and partners, outline its potential impact on sea/air export procedures, and provide practical compliance recommendations.

1. Key Regulatory Update: Formalized Customs Inquiry Process

Under the new rules, when a Chinese exporter ("shipper") fails to present a valid "Dual-Use Items and Technologies Import/Export License" issued by the national export control authority, and Customs has reasonable grounds (based on declaration details, nature of goods, destination, etc.) to suspect the shipment may fall under controlled dual-use categories, Customs will initiate a formal inquiry.

The core steps of this process are:

Notification Issuance: Customs will issue a "Dual-Use Items Export Control Customs Inquiry Notice" to the exporter.
Exporter's Response: The exporter must submit a complete set of supporting documents to Customs within 7 working days of receiving the notice. Required materials include:
- The physical copy of the customs declaration form.
- The export sales contract.
- A detailed written explanation (specifying the goods' performance parameters, end-use, and reasons for believing they are not controlled).
- Technical documents such as inspection or analysis reports from authoritative bodies.
- Any other materials requested by Customs. (Documents in foreign languages require an official Chinese translation.)
Customs Determination: After review, Customs will make a determination or may request identification from the national export control authority. A "Result Notification" will be issued, with three possible outcomes:
- Outcome A The goods are deemed not to require a dual-use license, and normal clearance and release procedures can proceed.
- Outcome B The goods are confirmed to require a license, which the exporter has not obtained. The shipment will not be released and may face further legal disposal.
- Outcome C Customs cannot make a determination and will refer the case to the national authority for identification, acting upon their conclusion.

Critical Note: For the entire duration of the inquiry and identification process, the goods are under Customs control and will not be released, causing direct shipping delays.

2. Impact on International Procurement and Logistics

For overseas buyers sourcing from China, this regulation implies:

Supply Chain Delay Risk: If your supplier (the Chinese exporter) has not properly addressed dual-use compliance, a Customs inquiry can lead to cargo detention for at least 7+ working days, causing missed vessel/aircraft schedules, inventory shortages, and potential contractual penalties.
Responsibility Allocation: Under Chinese law, the primary responsibility for obtaining the export license lies with the Chinese exporter (shipper). However, buyers can mitigate joint risk by clarifying the end-use and specifications of purchased items and incorporating clear compliance liability clauses in contracts.
Category Specificity: This rule is particularly relevant for technology-sensitive industries like chemicals, specialty materials, high-performance composites, specific equipment, and software. Even commonly used industrial chemicals may fall under dual-use control if their purity, specifications, or performance parameters meet certain thresholds.

3. Practical Advice for Overseas Buyers and Partners

To ensure a smooth and secure supply chain, we recommend you:

Enhance Supply Chain Transparency: Engage in clear communication with your Chinese suppliers regarding product composition, technical specifications, and end-use. Inquire if they have conducted a dual-use item classification assessment for their products.
Clarify Contractual Terms: Include compliance warranty clauses in procurement agreements. Suppliers should warrant that the goods are not subject to China's dual-use export control lists and agree to bear all liabilities, losses, and fines arising from any violation of export control regulations.
Build in Time Buffers: For shipments involving high-tech or end-use-sensitive goods, proactively incorporate additional "compliance review buffer time" into your logistics planning to accommodate potential Customs inspection or inquiry procedures.
Partner with a Compliant Logistics Provider: Work with a freight forwarder, like ours, that is well-versed in China's export control regulations and Customs procedures. We can help you and your supplier identify potential red flags in advance, ensuring complete and accurate documentation to minimize the risk of inquiry and detention at the port of origin.

Conclusion

The refinement of China's customs procedures for dual-use item exports reflects a global trend toward stricter trade compliance enforcement. This is not a trade barrier but an implementation of international security and non-proliferation commitments. By proactively understanding the rules and strengthening compliance collaboration across the supply chain, buyers and logistics providers can jointly build a more resilient supply chain, turning compliance into a competitive advantage. We will continue to monitor regulatory developments and keep you updated.

Disclaimer: This guide provides general information based on GAC Announcement No. 123 of 2025. Always consult your freight forwarder and legal advisors for specific cargo requirements. Regulations are subject to change.