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China Clarifies Dual-Use Export Control Challenges: What Foreign Founders Need to Know

New MOFCOM and GAC rules streamline challenges and identification for dual-use exports, with strict deadlines and documentation requirements for companies shipping from China.

New Rules for Dual-Use Export Control Challenges in China

Foreign founders operating in China should note that the Ministry of Commerce (MOFCOM) and the General Administration of Customs (GAC) have issued Announcement No. 52 of 2026, effective from its publication date of October 19, 2026. The announcement aims to improve the handling of challenges and identification related to dual-use export controls, promoting compliant trade and facilitating exports. It replaces GAC Announcement No. 123 of 2025.

The rules apply to exporters shipping goods from China that may fall under dual-use export control regulations. Understanding these procedures is essential for maintaining smooth customs clearance and avoiding delays.

What Triggers a Customs Challenge?

When an exporter declares goods for export without presenting an export license issued by MOFCOM, customs may raise a challenge if there is evidence suggesting the goods could be subject to dual-use export controls. In such cases, customs will issue a Dual-Use Export Control Customs Challenge Notice (Attachment 1).

Exporters are then required to respond within a strict timeframe.

Required Documentation and Deadlines

Upon receiving the challenge notice, the exporter must submit the following materials within 7 working days:

All documents must be stamped with the company seal. If documents are in a foreign language, a Chinese translation must also be provided.

Customs Assessment and Expert Identification

After receiving the materials, customs will assess the case. If necessary, the GAC may request MOFCOM to organize an expert identification. Based on the outcome, customs will handle the case accordingly and issue a Dual-Use Export Control Customs Challenge Result Notification (Attachment 2).

The possible outcomes are:

MOFCOM, upon receiving a request for identification, will organize experts to evaluate the items and may send samples to relevant institutions for inspection and testing if needed.

Timelines and Detention of Goods

During the challenge and identification process, customs will not release the goods. However, exporters may apply to split off other goods under the same customs declaration that are unrelated to the challenged goods. If customs agrees after assessment, those goods can undergo customs clearance separately.

Customs will complete its assessment or submit a request for identification to MOFCOM within 15 working days from receiving all required materials. MOFCOM will then make an identification conclusion within 15 working days from receiving complete materials for identification.

Time spent by the exporter in submitting or supplementing materials, and time for inspection and testing of the challenged goods, is not counted in these deadlines. For major or complex cases, these time limits may not apply.

Compliance Obligations for Exporters

Exporters must provide truthful and complete materials and supplement them as required. They must ensure the authenticity and reliability of content and data, and must not refuse, obstruct, conceal, or provide false information.

The announcement also states that exports of dual-use items through cross-border e-commerce, passenger carry-on, mail, and express channels shall refer to these provisions. Interpretation of identification and challenge work is the responsibility of MOFCOM and the GAC, respectively.

Practical Implications for Foreign Founders

For foreign founders running export-oriented businesses in China, these rules underscore the importance of robust export compliance systems. The announcement encourages companies to improve their internal compliance, and MOFCOM and GAC will continue to optimize procedures, enhance information technology, and provide policy guidance.

Key takeaways:

By understanding these procedures, foreign founders can better navigate China's export control framework and avoid costly delays.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.

For assistance with company registration and operations in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.

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WhatsApp / WeChat: +86 153 1898 8535

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