Exports to China Restrictions

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Aug29

Exports to China Restrictions

Linda Chan

August 29, 2006

Know More: International law 2.0, International law

The Department of Commerce recently announced a proposed rule to its export regulations that might affect industries that trade with the People’s Republic of China (“PRC”). The proposed rule will require export licenses for over forty commodities, software, technologies if the exporter knows that the items are destined for a PRC military end-use.

The commodities, software, and technologies include: chemicals and composite materials and technology; electronics design and development items; computers; materials processing items including certain bearings and bearing systems, machine tools and other equipment; sensors and lasers; navigation and avionics equipment; telecommunications test equipment, information security hardware and software; marine systems; and certain aircraft and related components.
The identified items are not currently controlled for export to the PRC for any end-use purposes. The proposed rule also imposes requirements relating to end-user certificates that exporters must obtain prior to any export transaction from the PRC government.

The Department of Commerce will conduct meetings nationwide in California, Texas, Illinois, Massachusetts regarding the rule. The proposed rule is open for public comment until November 3, 2006.

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