MOFCOM Seeks Public Comments on the Draft Export Control Law
Promulgation date: 2017-06-19
Recently, the Ministry of Commerce ("MOFCOM") has issued the Export Control Law of the People's Republic of China (Draft for Comment) (the "Draft for Comment") for public comments before July 15, 2017.
The Draft for Comment highlights provisions of implementing the overall outlook of state security, constructing a scientific management system on export control, strengthening supervision of law enforcement and imposing stricter punishment, raising enterprises' awareness of the prevention of illegal activities, paying attention to complying with international rules and strengthening international communication and cooperation. In terms of supervision and punishment, the Draft for comment lays down the following provisions. The first is to empower competent departments with the necessary authority in law enforcement. The second is to increase the types of acts breaking the export control provisions. The third is to impose tougher penalties against violations and to strengthen the deterrent of export control related law enforcement. As to the objective of making corporations better aware of the prevention of illegalities, the Draft for Comment clarifies in three aspects: the first is to formulate a consultation mechanism for export operators; the second is to set out a facilitated licensing system; the third is to introduce an administrative guidance regime; and the fourth is to take measures for the purpose of avoiding risks of illegalities.