News · 2026-08-28

"Dual-use export controls: ask about the licence before the lead time"

Controlled "dual-use items" are not only goods - they also include technology and services. For a buyer, the one thing to confirm is whether the supplier can actually obtain an export licence.

It is not only goods that are controlled

The Regulations on Export Control of Dual-Use Items (State Council Decree No. 792) have applied since 1 December 2024. What is controlled includes goods, technology and services; without a licence, items on the list may not be exported.

Many buyers watch only whether the finished goods can ship, and overlook that technical documentation, software and after-sales support delivered with them can also fall within the controlled scope. Look at all three together to get a full picture; checking only the finished goods is checking a third of it. Once a licence is missing, what is disrupted is not just one shipment - the production schedule and deliveries behind it can be thrown off too.

Rare earths: a licence and a cut-off are one step apart

Rare earths are the more sensitive category. Ministry of Commerce announcements No. 61 and No. 62 of 2025 (published 9 October 2025) impose controls on certain rare earth items abroad, as well as on technologies such as mining, smelting and separation, and magnet manufacturing. Both items and technologies are controlled, which matters especially for buyers who depend on rare earth materials.


For a buyer the conclusion is direct: for sensitive items, confirm the supplier holds an export licence, or supply can be cut off at any time. And whether a licence exists often cannot be found through public channels - you have to get a clear answer from the supplier.

Questions to settle in the contract

Which items and destinations the licence covers, how long it is valid, who applies, what happens if it is withdrawn, and where alternative supply would come from. Settling these before signing is far cheaper than looking for a replacement after a cut-off.

The "what if the licence is withdrawn" question in particular should be a workable clause, not a verbal assurance. However good the delivery promise sounds, if the licence link breaks, everything behind it has to be rebuilt.

Put the risk on paper

Write the licence information into a contract annex, agree notification duties and alternatives in the event a licence lapses, and keep the written correspondence. Then if something changes, both sides know what comes next, and nobody ends up arguing about who was responsible. If the upstream supplier never had a licence in the first place, the earlier you switch plans, the smaller the loss.

To check a supplier's qualifications and documents systematically, start with the free verification checklist, or see our services and pricing for what we cover.