China set to streamline dual-use material export procedures for civil aviation sector

The Ministry of Commerce has released the draft measures for the administration of export certificates for dual-use items related to the civil aviation sector for public comment.

According to an official from the Ministry of Commerce, the draft measures consist of 22 articles, which mainly stipulate the following:

First, the applicable entities. These include domestic airlines (including cargo carriers), foreign airlines, aircraft maintenance enterprises, enterprises specializing in the import and export of aviation materials and manufacturers of aircraft and related items.

Second, applicable scenarios. They cover outbound repair, maintenance, replacement, and return of damaged items; inbound repair and returns from bonded zones; and the export of a reasonable quantity of spare parts by aircraft manufacturers headquartered in China. In addition, the export of unmanned aerial vehicles for overseas exhibitions, demonstrations, and participation in international emergency rescue may apply by reference.

Third, registration and customs clearance procedures. The draft measures specify documents required for registration, circumstances concerning the validity and change of effect of export certificates, and customs clearance procedures.

Fourth, administrative requirements. These include restrictions on agency handling to prevent unqualified entities from fraudulently obtaining certificates; strengthened reporting and compliance requirements, whereby exporters must report the use of export certificates and other irregularities as required and fulfil document retention obligations; and empowerment of competent authorities for ex-post administration, allowing them to request supplementary documents for questionable exports and revoke certificates under special circumstances.

Fifth, administrative penalties. In accordance with the Export Control Law and the Regulations on the Administration of Export Control of Dual-Use Items, the draft measures refine relevant administrative penalties.

Going forward, the Ministry of Commerce will revise and improve the measures based on feedback collected from the public consultation, advance its promulgation at an early date, and facilitate compliant exports by aviation enterprises.