On June 16, 2025, the General Administration of Customs of China (GACC) officially released the Announcement on Matters Related to Customs Challenges for Dual-Use Item Export Control (GACC Announcement No. 123 of 2025). Based on laws and regulations including the Customs Law of the People's Republic of China, the Export Control Law of the People's Republic of China, and the Regulation of the People's Republic of China on the Export Control of Dual-Use Items, the announcement further standardizes the workflow for customs challenges regarding dual-use item export control.
What is a Customs Challenge for Dual-Use Item Export Control?
A customs challenge for dual-use item export control refers to the procedure where customs, during the supervision of export goods, questions and verifies goods that may fall under export control but lack the submission of relevant licenses.
Key Contents of the Announcement (GACC Announcement No. 123 of 2025):
Conditions and Form of Challenge Initiation
Where the exporter of the goods has not submitted the license issued by the national export control authority to customs, and customs has evidence indicating that the goods may fall under export control, customs shall issue a challenge to the exporter and issue the Notice of Customs Challenge for Dual-Use Item Export Control (Annex 1).
Enterprise Obligations and Documentation Requirements
Within 7 working days of receiving the challenge notice, the exporter must submit the following materials (bearing the official seal and assuming responsibility for authenticity):
- Paper customs declaration form;
- Export goods contract;
- Statement of circumstances (specifying the goods' performance indicators, primary purpose, and reasons for exclusion from the control scope);
- Technical documents such as inspection/test reports;
- Other materials required by customs based on regulatory needs.
Note: Foreign-language materials must be accompanied by Chinese translations.
Customs Determination and Disposition Rules
Upon receiving the enterprise’s materials, customs will make a determination or request an expert appraisal in accordance with the law. It will then issue the Notice of Challenge/Expert Appraisal Result (Annex 2) and handle the case as follows:
- Determination that no dual-use item license is required: Notify the enterprise to proceed with customs clearance;
- Determination that a dual-use item license is required: Goods shall not be released and will be handled according to the law;
- Inability to determine: Apply to the national export control authority for expert appraisal and act based on the conclusion.
Goods Status Management Requirements
During the challenge or appraisal period, customs shall not release the relevant export goods.
The release of this announcement marks a significant step by GACC in standardizing enforcement procedures and enhancing regulatory efficiency. By clearly defining the conditions for initiating challenges, enterprise responsibilities, customs disposition procedures, and goods status management requirements, the announcement provides a robust institutional safeguard for safeguarding national security and interests and preventing the illegal export of dual-use items. GACC emphasizes that the new rules aim to balance trade facilitation with security controls. Relevant import and export enterprises must pay high attention, accurately understand, and strictly comply with the announcement’s requirements. In particular, they must promptly respond to challenge notices and ensure the authenticity and completeness of submitted materials to effectively mitigate the risk of cargo detention and ensure the smooth flow of legitimate trade.
Further Information
