How to Export or Import Controlled Chemicals in China

Trade

How to Export or Import Controlled Chemicals in China

Little Pro on 2017-04-14

The export and import of certain chemicals in China is strictly controlled due to their possible use as chemical weapons or for producing chemical weapons. Examples of such controlled chemicals include sodium cyanide, phosgene and many organic compounds containing the elements Phosphorus, Sulphur or Flourine. China has ratified the Chemical Weapons Convention (CWC) since 1997 and imposed strict license and declaration obligations on companies who produce, trade, use, import and export controlled chemicals. In this article, we will summarize how to comply with regulations on controlled chemicals in China and what you need to do when exporting or importing controlled chemicals to China.

Overview of Regulations on Controlled Chemicals

The National CWC Implementation Office, which sits under the Ministry of Industry and Information Technology (MIIT), is leading the administration of controlled chemicals (i.e, production permit, annual reporting) in China. The Ministry of Commerce is responsible for issuing export license for dual-use items and end-use certificate.

List of Schedules of Controlled Chemicals

In China, controlled chemicals are listed on 4 different schedules and subject to different regulatory requirements:

Schedule 1: Chemical weapons;
Schedule 2: Chemicals precursors for chemical weapons;
Schedule 3: Common chemicals that could also be used as raw materials for producing chemical weapons (also known as dual use chemicals);
Schedule 4: Discrete organic chemicals including PSF chemicals(*).

The above lists of controlled chemicals can be downloaded here (in Chinese). The lists are equivalent to the lists of controlled chemicals under the Chemical Weapons Convention. The definition of discrete organic chemicals and PSF chemicals is listed as follows.

Discrete organic chemical is defined as any chemical belonging to the class of chemical compounds consisting of all compounds of carbon except for its oxides, sulfides and metal carbonates, identifiable by chemical name, by structural formula, if known, and by Chemical Abstracts Service (CAS) registry number, if assigned.
PSF chemical is defined as an unscheduled discrete organic chemicals containing one or more elements phosphorus, sulfur or fluorine. Producing PSF chemical in China is subject to additional license requirement.

Regulatory Requirements on Controlled Chemicals in China

Production	Production license (监控化学品生产特别许可证书) needed for schedule 2 chemicals, schedule 3 chemical and schedule 4 PSF chemicals; License authority: provincial Industry and Information Commission;
Sales & distribution	Business license (第二类监控化学品经营许可) needed for schedule 2 chemicals; License authority: provincial Industry and Information Commission; Check buyers’ use permit before sales; Build solid sales record for inspections;
Use	Application of use permit (监控化学品使用许可) for schedule 1 and schedule 2 chemicals; License authority: provincial Industry and Information Commission; Only buy controlled chemicals from legal source;
Import & Export	Entities exporting or importing schedule 2 and schedule 3 chemicals must apply for export or import permits for dual use-items and technologies(两用物项和技术出口许可证) prior to export/import; Step 1: Apply for approval notice from provincial Industry and Information Commission(formerly provincial CWC implementation office); Step 2: Provide approval noticie from CWC office to provincial commerce department and apply for export or import permits for dual use-items and technologies. For schedule 1 chemicals, application of import/export permit for dual use items is submitted directly to national CWC implementation office.
Annual Past Declaration (APD)	Declaration bodies: Any entities that produce schedule 2, 3 & 4 chemicals and any entities that process or consume schedule 2 chemicals; Standard declaration form needs to be filled in and submitted to provincial Industry and Information Commission; Deadline: 1 Feb each year;
Annual Anticipated Declaration (AAD)	Declaration bodies: Any entities that produce schedule 2 and 3 chemicals and any entities that process or consume schedule 2 chemicals; Standard declaration form needs to be filled in and submitted to provincial Industry and Information Commission; Deadline: 10 Sept each year;

Declaration records and sales records must be kept for 3 years.

Note: if one controlled chemical is also a hazardous chemical, it has to comply with the requirements of Decree 591 Regulations on Safe Management of Hazardous Chemicals. The import and export of drug precursor chemicals may also require permit for dual use items.

Exporting Controlled Chemicals to China

Most of companies who export chemicals to China usually deal with schedule 3 chemicals and schedule 4 chemicals. Firstly, exporters need to check if their products are controlled chemicals or not and whether any production permit, or export/import permit is required (schedule 4 chemicals might not require such permits). If yes, they need to get export permits for controlled chemicals from their own national authorities before exporting chemicals to China. Secondly, they need to inform their customers in China and make sure that their customers have applied for end-use certificate (最终用户和最终用途说明）from provincial or national commerce department. Without this end-use certificate, exporters might not get their export permit. Thirdly, exporters may need to submit annual declarations such APD and AAD to national authorities.

References

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