In July 2026, China’s total import and export value stood at US$683.20 billion, representing a month-on-month decrease of 2.2 per cent compared with June this year and a year-on-year increase of 25.3 per cent compared with July last year. Regarding exports, the value of exports in July was US$397.85 billion, down 3.4 per cent month-on-month compared with June this year but up 23.9 per cent year-on-year compared with July last year;As for imports, the value in July stood at US$285.35 billion, representing a month-on-month decrease of 0.4 per cent compared with June this year, whilst showing a year-on-year increase of 27.5 per cent compared with July last year. The trade surplus in goods amounted to US$112.50 billion, with a cumulative total of US$687.37 billion for the period from January to July.

In July 2026, imports of mechanical and electrical products totalled 13,278.04 billion yuan (exports: 259,197.3 billion yuan), whilst cumulative imports from January to July amounted to 768,699.3 billion yuan (exports: 1,609,331.7 billion yuan), representing a year-on-year increase of 34.9 per cent in imports (and 26 per cent in exports);In July, imports of integrated circuits totalled 60.01 (exports 32.4) billion units, with an import value of 6,383.17 (exports 3,873.87) billion yuan; from January to July, imports of integrated circuits totalled 361,842.4 (exports 216,020.3) billion yuan, representing a year-on-year increase of 58.3 per cent in imports (and 99.5 per cent in exports);In July, imports of medical devices totalled 102.01 (exports 205.2) billion yuan; from January to July, imports of medical devices totalled 578.6 (exports 1,316.73) billion yuan, representing a year-on-year decrease of 6.5 per cent (exports up 13.9 per cent).

01

Announcement No. 29 of 2026 by the Ministry of Commerce and the General Administration of Customs: Imposition of a Temporary Ban on the Export of Helium

Release Date：July 10, 2026

Effective Date：July 10, 2026

Pursuant to the relevant provisions of the Foreign Trade Law of the People’s Republic of China, the Ministry of Commerce and the General Administration of Customs have decided to impose a temporary export ban on helium (Customs commodity code: 2804290010).

I. Background to the Announcement

1. Helium is a non-renewable strategic commodity of essential demand

Helium is a scarce inert gas that can only be extracted from natural gas associated gas and cannot be synthesised artificially. There are no mature alternatives in key sectors such as semiconductor manufacturing (wafer cooling and photolithography leak detection), superconducting magnets for medical magnetic resonance imaging (MRI), aerospace rockets and fibre-optic manufacturing. It is known as the ‘golden gas’ and is classified as a dual-use strategic resource for both military and civilian applications.

2. China is a country with limited helium reserves and relies heavily on imports

China’s capacity for self-sufficiency in helium is weak, with a long-term reliance on imports of around 85 per cent. Import sources are highly concentrated in Qatar and Russia, with these two sources together accounting for nearly 99 per cent of China’s helium imports. Domestic helium production is very limited, whilst there is also a trade practice within the country of re-exporting imported helium after repackaging.

3. The global helium supply chain is facing multiple geopolitical shocks (direct triggering factors)

1) Qatar is the world’s largest exporter of helium. In 2026, due to geopolitical conflicts in the Middle East, maritime transport routes were disrupted and key helium extraction facilities were damaged, resulting in a contraction of approximately one-third of the global helium supply;

2) Russia has introduced export controls on helium, which will remain in place until the end of 2027, significantly reducing helium export quotas to China and substantially raising the approval thresholds;

3) The US has tightened restrictions on the export of high-end electronic-grade helium to China, limiting the supply of high-purity helium and associated purification equipment to the country.

The combination of these multiple shocks led to a sharp rise in domestic spot prices for helium in the first half of 2026, with domestic semiconductor factories, MRI equipment in top-tier hospitals, and aerospace research projects facing risks of gas shortages and critically low stock levels. A small amount of domestically produced helium and imported, repackaged helium continued to be exported overseas, creating a mismatch where ‘domestic buyers scramble to import at high prices whilst a small amount of gas flows overseas’, thereby exacerbating the pressure to ensure domestic supply.

4. Legal and Policy Basis

The Foreign Trade Law explicitly authorises the State to impose export controls on natural resources at risk of depletion and materials relating to national security; an official press conference by the Ministry of Commerce clarified that this measure complies with WTO rules and constitutes a defensive supply-security measure, rather than a proactive countermeasure against foreign entities. Its core objective is to prioritise the security of domestic industrial chains, and the policy will be adjusted in the future in accordance with global supply and demand dynamics.

II. In-depth Analysis of the Main Content of the Announcement

Scope of Control and Tariff Codes

Controlled tariff code: 2804290010 – Helium. This tariff code covers industrial helium and high-purity helium; the controls apply both to the export of domestically produced helium and to the re-export of imported helium following repackaging, whilst transhipment trade is also subject to these restrictions.

Note: The notice applies solely to helium under this tariff code and does not cover helium-containing gas mixtures or other chemical products containing helium. Enterprises must verify the commodity code when classifying goods to avoid non-compliance resulting from incorrect classification.

2. Rules on entry into force: No grace period; the announcement takes effect immediately

After 10 July, enterprises must not declare exports of helium under this tariff code;

Orders for which contracts have been signed but customs clearance has not yet been completed must not be exported under any circumstances;

Customs will trigger export prohibition controls for tariff code 2804290010; customs declarations will be rejected outright, and unauthorised exports will be subject to customs penalties and administrative sanctions.

3. Meaning of ‘Temporary Export Ban’

1) This is not a permanent ban: The announcement states that any subsequent adjustments will be announced separately. The Ministry of Commerce stated at a press conference that it will monitor global helium supply and demand, as well as import availability; once conditions improve, it will assess and adjust the level of control (such as lifting the ban or switching to a licensing system), and there is no fixed expiry date.

2) This is an export prohibition measure, not an export licensing scheme: Unlike the export licensing model for dual-use items, there is currently no channel whereby exports can be authorised simply by applying for a licence; all exports are currently prohibited.

4. Policy Objectives and Positioning

1) Core objective: To prioritise the allocation of limited helium resources to domestic sectors with essential needs—such as semiconductors, healthcare, aerospace and scientific research—thereby mitigating the risk of domestic gas shortages and safeguarding the security of industrial and supply chains;

2) Policy Nature: This is a defensive domestic supply security policy, not a tool for trade retaliation; China is itself a net importer of helium, and the volume of China’s helium exports accounts for a relatively small proportion of the global total.

III. Guidance on Practical Implications for Enterprises

1. Exporting enterprises: Immediately cease all export operations involving helium under HS code 2804290010; review existing export contracts; communicate effectively with overseas clients regarding contract amendments or terminations; and assess the risk of breach of contract; for imported and repackaged helium, re-exportation is no longer permitted.

2. Importing enterprises: Prioritise ensuring domestic production and usage. As the policy does not restrict the import of helium, enterprises may continue to import helium as normal to supply the domestic market.

3. Classification Risks: It is strictly prohibited to circumvent controls by tampering with commodity codes or formulating mixtures of gases. Customs authorities will conduct classification audits; circumventing controls constitutes a violation of the law.

4. Policy Monitoring: Continue to monitor subsequent announcements from the Ministry of Commerce and the General Administration of Customs; any policy changes will be published in the form of joint announcements.

IV. Supplementary Notes

Public statement by a spokesperson for the Ministry of Commerce: China is a major importer of helium; the temporary export ban has been introduced to safeguard domestic supply. The measure complies with China’s Foreign Trade Law and WTO rules. Export control policies will be adjusted in due course in accordance with changes in domestic and international helium supply and demand.

Link

https://www.mofcom.gov.cn/zcfb/blgg/art/2026/art_b2dceff747334a9faee35fe1a5d5b2c7.html

02

Ministry of Commerce Announcement No. 30 of 2026: Announcement of the inclusion of 14 EU entities on the export control list

Release Date: July 24, 2026

Effective Date:July 24, 2026

In accordance with the relevant provisions of laws and regulations such as the Export Control Law of the People’s Republic of China and the Regulations of the People’s Republic of China on the Export Control of Dual-Use Items, and in order to safeguard national security and interests and fulfil international obligations such as non-proliferation, it has been decided to include 14 EU entities, including the Lafate Group, on the export control list (see Annex), and to adopt the following measures:

1. Export operators are prohibited from exporting dual-use items to the aforementioned 14 entities; overseas organisations and individuals are prohibited from transferring or supplying dual-use items originating in the People’s Republic of China to the aforementioned 14 entities; any relevant activities currently underway shall be ceased immediately.

2. Where exports are genuinely necessary under exceptional circumstances, export operators shall submit an application to the Ministry of Commerce.

This Announcement shall come into force on the date of its publication.

Export Control List

(24 July 2026)

1. Lafert Group (Lafert S.p.A.)

Address: Via J.F. Kennedy 43, San Donà di Piave, Venice, Italy

Postcode: 30027

2. Garnet S.r.l.

Address: Via De Gasperi 31, Concorezzo (MB), Italy

Postcode: 20863

3. Sindlhauser Materials GmbH

Address: Daimlerstraße 68, Kempten, Germany

Postcode: 87437

4. Rheinmetall AG

Address: Rheinmetall Platz 1, Düsseldorf, Germany

Postcode: 40476

5. Antraco Chemie-Handelsgesellschaft mbH

Address: Düsseldorfer Landstraße 17, Duisburg, Germany

Postcode: 47279

6. InPACT S.A.

Address: 265 Rue de la Volta, Saint-Marcel, France

Postcode: 73600

7. III-V LAB

Address: 1 avenue Augustin Fresnel, Palaiseau, France

Postcode: F-91767

8. Cavok UAS

Address: Allée des Cuirassiers, Sainte-Menehould, France

Postcode: 51800

9. Vigo Photonics S.A.

Address: 129/133 Poznanska St., Ozarow Mazowiecki, Poland

Postcode: 05-850

10. Wrocław University of Technology (Politechnika Wrocławska)

Address: Wybrzeże Stanisława Wyspiańskiego 27, Wrocław, Poland

Postcode: 50-370

11. IHC (IHC Merwede Holding B.V.)

Address: Smitweg 6, Kinderdijk, The Netherlands

Postcode: 2961

12. TATRA TRUCKS a.s.

Address: Areal Tatry 1450/1, Koprivnice, Czech Republic

Postcode: 74221

13. Opticoelectron Group

Address: Industrial Park Opticoelectron, Panagyurishte, Bulgaria

Postcode: 4500

14. Ekspla UAB

Address: 237 Savanoriu Ave, Vilnius, Lithuania

Postcode: LT-02300

I. Background to the Announcement

1. Direct trigger: The EU’s 21st round of sanctions against Russia was extended to include Chinese entities

On the evening of 23 July 2026 (Beijing Time), the EU announced its 21st round of sanctions against Russia, adding 14 entities from mainland China and Hong Kong to the sanctions list. It designated certain Chinese enterprises as entities assisting Russia in circumventing sanctions and imposed unilateral sanctions at EU level (asset freezes and a ban on EU enterprises trading with them).

Within less than 24 hours, the Chinese side issued Announcement No. 30 of 2026, adopting reciprocal listing measures of ‘14 for 14’ as a lawful response to the EU’s unilateral expansion of sanctions; a spokesperson for the Ministry of Commerce directly characterised the EU’s action as a ‘despicable act’.

2. Institutional Background: China’s export control legal framework is now comprehensive

The *Export Control Law* and the *Regulations on the Export Control of Dual-Use Items* form a comprehensive system of entity-based controls. The State has the authority to place specific overseas entities on export control lists and restrict the flow of dual-use items to such entities. This serves to safeguard national security, counteract improper extraterritorial unilateral sanctions, and fulfil non-proliferation obligations; it forms part of China’s statutory toolkit and is consistent with internationally accepted control practices.

3. Sectoral Characteristics of the Designated Entities

The 14 entities in this round are located across eight EU Member States—Italy, Germany, France, Poland, the Netherlands, the Czech Republic, Bulgaria and Lithuania—and span dual-use technology sectors such as defence and military industry, specialised motors, specialised chemicals, infrared optoelectronics, semiconductor materials, unmanned aerial vehicles (UAVs) and research laboratories. They include well-known defence firms such as Rheinmetall, all of which are highly sensitive entities capable of diverting goods for military purposes.

4. Policy Context

This measure targets only the 14 specific entities listed; it does not constitute a trade restriction on the EU as a whole. Ordinary civilian goods and general commercial transactions between China and the EU remain unaffected; the controls are limited to dual-use items (goods and technology), whilst ordinary civilian goods not subject to control are excluded from the scope of these restrictions.

II. In-depth Analysis of the Main Content of the Notice

Two Core Control Obligations

1) Chinese exporters are prohibited from directly exporting dual-use items (goods and technology) to the 14 entities on the list;

2) Overseas third parties (such as overseas intermediaries and traders) are prohibited from indirectly supplying dual-use items originating in China to these 14 entities via transhipment, re-export or disassembly;

3) Any relevant transactions involving dual-use items that are already underway must be halted immediately; no further deliveries, supplies or technology transfers may take place.

 2. Exception Approval Mechanism

The notice provides for a single exception: where exports are genuinely necessary under exceptional circumstances, a formal application must be submitted to the Ministry of Commerce, and the transaction may only proceed upon approval.

This is not an automatic licence, and there is no default approval channel;

In practice, the review threshold for such applications concerning entities on the control list is extremely high, and the vast majority of cases will not be approved;

Enterprises must not assume that they ‘can dispatch goods first and submit an application subsequently’.

3. Entry into Force

The notice takes effect immediately on the date of publication (24 July 2026), with no transition period.

New orders placed after 24 July 2026: the supply of dual-use items is strictly prohibited;

Orders for dual-use items contracted before 24 July but not yet delivered must be terminated immediately;

Customs and the Ministry of Commerce shall implement interception and supervision of dual-use items destined for entities on the list.

4. Scope of Control

1) Subject to control: All goods, related technologies and software listed in the ‘Export Control List for Dual-Use Items’;

2) Exempt from control: ordinary civilian non-controlled goods (ordinary furniture, ordinary consumer electronics, ordinary light industrial products);

3) The controls apply only to dual-use items originating in China; they do not apply to goods produced entirely overseas in third countries.

5. Legal Consequences (Business Risks)

Where an enterprise knowingly exports or assists in the transhipment of dual-use items to an entity on the control list:

Administrative penalties: confiscation of illegal gains, substantial fines, and possible suspension or revocation of the licence to trade in dual-use items;

Agents, freight forwarders and customs brokers who knowingly assist in such operations shall likewise bear legal liability;

In serious cases, this may constitute a criminal offence (smuggling or criminal liability relating to export controls).

III. Practical Compliance Guidance for Enterprises

1. Customer Screening: For all export and transhipment transactions, the buyer, intermediary traders and end-users must be cross-referenced against the 14 entities listed in Annex 14 of Announcement No. 30. Ensure that company names and addresses are verified in full to prevent any omissions due to aliases or branches.

2. Handling of Existing Contracts: For existing contracts involving dual-use items destined for entities on the list, suspend delivery, negotiate contract termination or amendments, and assess the risk of breach of contract; transactions involving ordinary, non-controlled goods remain unaffected.

3. Vigilance against circumvention risks: Even where the customer is an intermediary in a third country, a thorough verification of the ultimate actual consignee must be carried out to prevent goods from ultimately flowing to the 14 listed entities.

4. Applications for Exemptions: Where there are genuinely exceptional circumstances requiring supply, a written application must be submitted in advance to the Bureau of Industrial Security and Import/Export Controls of the Ministry of Commerce; goods must not be dispatched before the necessary formalities have been completed.

5. Continuous monitoring: Any subsequent additions, deletions or lifting of controls on the list of entities shall be subject to the official announcements of the Ministry of Commerce.

IV. Key Points from Official Statements

Spokesperson for the Ministry of Commerce: The EU has, under the pretext of the 21st round of sanctions against Russia, unreasonably included Chinese entities in its sanctions. China has adopted reciprocal countermeasures in accordance with its own export control laws and regulations; these measures are directed solely at 14 specific entities and do not affect the broad and normal economic and trade cooperation between China and the EU. The aim is to safeguard national security and interests and to fulfil non-proliferation obligations.

Link

https://www.mofcom.gov.cn/zcfb/blgg/art/2026/art_7e3110260c984da6b116d5dadc06a703.html

03

General Administration of Customs Announcement No. 106 of 2026 (Announcement on the Implementation of Mutual Recognition of ‘Authorised Economic Operators’ (AEO) between China and Uzbekistan)

Release Date:July 23, 2026

Effective Date: August 1, 2026

The ‘Arrangement between the General Administration of Customs of the People’s Republic of China and the Customs Committee of the Ministry of Economy and Finance of the Republic of Uzbekistan on the Mutual Recognition of the “Authorised Economic Operator” (AEO) Scheme’ (hereinafter referred to as the ‘Mutual Recognition Arrangement’) will come into force on 1 August 2026. The relevant matters are hereby announced as follows:

I. In accordance with the provisions of the ‘Mutual Recognition Arrangement’, the Chinese Customs and the Uzbek Customs shall mutually recognise each other’s ‘Authorised Economic Operators’ (AEOs). The Uzbek Customs shall recognise enterprises holding the ‘High-Level Certification’ from the Chinese Customs as mutually recognised AEOs, whilst the Chinese Customs shall recognise enterprises certified under the Uzbek Customs’ AEO scheme that simultaneously hold both customs operations and security certificates as mutually recognised AEOs.

II. During the customs clearance of imported goods, the Chinese and Uzbek customs authorities shall provide the following facilitation measures to mutually recognised AEO enterprises: application of a lower inspection rate for imported goods; priority inspection for goods requiring physical examination; designation of a customs liaison officer responsible for communicating and resolving issues encountered by project members during customs clearance; and priority clearance following the resumption of international trade after a disruption.

III. When Chinese enterprises with Advanced Authorisation status export goods to Uzbekistan, they must provide their AEO code (AEOCN + the entity identifier comprising digits 9–17 of the Unified Social Credit Code, e.g. AEOCN123456789) to the Uzbek importer. The importer shall then declare this in accordance with Uzbek customs regulations, whereupon Uzbek customs will verify the enterprise’s status as an AEO under Chinese customs and grant the relevant facilitation measures.

IV. When Chinese enterprises import goods from Uzbek AEO enterprises, they must enter the Uzbek AEO enterprise code in both the ‘Overseas Consignor Code’ field under the ‘Overseas Consignor’ section of the import customs declaration form and the ‘Consignor AEO Enterprise Code’ field on the sea or air waybill.The format for entry is “Country Code (UZB)/9-digit enterprise code/III”, for example “UZB/123456789/III”. Chinese Customs will verify the status of the Uzbek AEO enterprise and grant the relevant facilitation measures.

I. Background to the Announcement

1. Jointly building the ‘Belt and Road’, with sustained growth in China–Uzbekistan economic and trade relations

Uzbekistan is a key country in Central Asia and an important trading partner for China in the region; a significant volume of China–Europe freight trains transit through Uzbekistan. Bilateral trade encompasses goods such as mechanical and electrical products, chemical products, textiles, agricultural supplies and equipment, and minerals, with rail transport accounting for a high proportion of cross-border shipments. The lengthy customs clearance procedures and high level of uncertainty regarding inspections at the Central Asian border have long been major pain points for Chinese and Uzbek trading enterprises in terms of clearance efficiency and inspection costs.The implementation of AEO mutual recognition serves to put into practice customs cooperation under the Belt and Road Initiative and reduce the institutional costs of cross-border trade.

2. The WCO’s globally recognised AEO scheme: China’s AEO mutual recognition network continues to expand

AEO (Authorised Economic Operator) is a scheme promoted by the World Customs Organisation (WCO): customs authorities grant certification to enterprises with good credit standing and sound internal controls, and countries engage in mutual recognition, whereby the customs authorities of the other country recognise the certification results and grant clearance facilitation.

China has already achieved AEO mutual recognition with dozens of countries and economies; Uzbekistan is a significant new partner in Central Asia, further enhancing China’s AEO network in the region.

3. Completion of Uzbekistan’s Domestic AEO System

Uzbekistan has established its own AEO system, issuing customs operations and security certificates, thereby laying the institutional foundation for bilateral mutual recognition; following multiple rounds of consultations and negotiations, the customs authorities of China and Uzbekistan have signed the mutual recognition agreement, which has been implemented through Announcement No. 106.

4. Practical Needs of Enterprises

A large number of high-level Chinese AEO enterprises exporting to Uzbekistan have long been unable to benefit from customs credit facilities offered by the Uzbek customs authorities; similarly, high-quality Uzbek enterprises importing into China have been unable to enjoy AEO benefits within the Chinese customs territory. Following the implementation of mutual recognition, credit-rated enterprises on both sides will be able to enjoy simplified customs clearance procedures, distinguishing them from ordinary enterprises and realising the principle that ‘the better the credit rating, the more convenient the customs clearance’.

II. In-Depth Analysis of the Main Content of the Announcement

1. Scope of Enterprises Covered by Mutual Recognition (Crucial: not all AEOs)

1) Recognised by Uzbekistan Customs: Chinese Customs-certified high-level AEO enterprises (generally certified enterprises are not eligible for the mutual recognition benefits under this arrangement); code format: AEOCN + the entity identifier comprising digits 9–17 of the Unified Social Credit Code.

2) Recognised by Chinese Customs: Enterprises in Uzbekistan that have completed AEO certification and hold both a customs operations certificate and a security certificate; enterprises with only AEO registration but lacking the security certificate are not eligible for mutual recognition benefits in China.

2. Four customs clearance facilitation measures under the mutual recognition arrangement (limited to the import process)

The customs authorities of both parties shall provide four facilitation measures for imported goods originating from the other party’s mutually recognised AEO enterprises:

1) Lower import inspection rate: Mutual recognition AEO enterprises are classified as low-risk entities, reducing the probability of being selected for inspection and minimising the incidence of goods being detained or containers being held up at ports.

2) Priority physical inspection: Where goods are selected for inspection, priority scheduling is granted to shorten waiting times; this is particularly significant for goods transported via the China–Europe Railway Express.

3) Bilateral customs liaison officer mechanism: Should an enterprise encounter clearance difficulties or disputes within the other party’s customs territory, it may liaise with the counterpart customs liaison officer via its own country’s customs liaison officer to coordinate the resolution of cross-border clearance issues.

4) Priority clearance following the resumption of trade: In the event of trade disruptions such as border closures, natural disasters or security incidents, AEO goods are given priority release when customs operations resume.

3. Practical Declaration Requirements for Enterprises

1) Exports from Chinese High-Level AEO enterprises to Uzbekistan:

Provide their AEO code to the Uzbek importer, who shall enter the code when declaring the goods in the Uzbek customs system; Uzbek customs will then recognise the enterprise’s status and automatically grant the relevant facilitation; this code does not need to be included on the Chinese export declaration form.

2) Chinese enterprises importing from AEO enterprises in Uzbekistan under the mutual recognition arrangement:

Import declaration form: In the ‘Overseas Consignor’ field, enter the Uzbek AEO code;

On the manifest (air or sea freight), enter the AEO enterprise code of the consignor;

Both must be completed simultaneously for Chinese customs to recognise the transaction and grant mutual recognition benefits. If only the customs declaration is completed whilst the manifest is omitted, the benefits cannot be enjoyed.

III. Practical Compliance Guidance for Enterprises

1. Self-assessment of enterprise eligibility: Enterprises exporting to Uzbekistan should confirm that they hold Advanced Authorisation status with Chinese Customs; enterprises with General Authorisation status are not eligible for customs clearance facilitation in Uzbekistan and should apply for an upgrade to Advanced Authorisation where conditions permit.

2. Adaptation of international business processes: When exporting to Uzbekistan, consistently provide the AEO code to overseas buyers and remind the Uzbek importers that they must declare the AEO code to Uzbek customs; otherwise, they will not be able to benefit from the facilitation measures.

3. Imports from Uzbekistan: When procuring goods from Uzbekistan, ensure that overseas suppliers hold both Uzbek AEO status and a Customs Business Security Certificate; the AEO code must be entered on both the import declaration and the manifest – both are mandatory.

4. In the event of customs clearance disputes: Should goods be unreasonably detained or subject to prolonged delays in inspection by Uzbek customs, an application may be made to the enterprise management department of the local customs authority to initiate coordination via the bilateral liaison officer channel.

5. Risk warning: Should an AEO-certified enterprise suffer a credit downgrade or have its AEO status revoked, it will immediately lose all benefits under the China–Uzbekistan AEO mutual recognition arrangement.

IV. Summary of Policy Benefits

1. This benefits rail imports and exports via the China–Europe Railway Express transiting through Uzbekistan, reducing the risk of delays due to inspections and shortening the overall logistics cycle;

2. This represents a significant step towards deepening customs credit cooperation between China and Central Asian countries; this model may serve as a reference for the implementation of AEO mutual recognition between China and other Central Asian nations in the future;

3. At the enterprise level, the commercial value of AEO Advanced Certification has further increased, and it can serve as a competitive advantage for enterprises exporting to Central Asia;

Link

http://www.customs.gov.cn/customs/2026-07/27/article_2026072709212731895.html

04

General Administration of Customs Announcement No. 111 of 2026 (Announcement on the Issuance of the ‘Regulations on the Supervision and Administration of Quarantine Treatment for Inbound and Outbound Animals and Plants’ and the ‘Regulations on the Supervision and Administration of Sanitary Treatment for Inbound and Outbound Goods’)

Release Date:July 31, 2026

Effective Date: September 01 ,2026

In order to standardise and strengthen the supervision and administration of quarantine treatment for imports and exports, and in accordance with the relevant laws and regulations, including the *Law of the People’s Republic of China on Biosafety*, the *Law of the People’s Republic of China on the Quarantine of Animals and Plants at the Border* and its Implementing Regulations, and the *Law of the People’s Republic of China on Sanitary Quarantine at the Border* and its Detailed Rules for Implementation, the General Administration of Customs has formulated the *Regulations on the Supervision and Administration of Quarantine Treatment for Imported and Exported Animals and Plants* (Annex 1) and the *Regulations on the Supervision and Administration of Sanitary Treatment for Imported and Exported Goods* (Annex 2), which are hereby promulgated.

This Notice shall come into effect on 1 September 2026. Notice No. 115 of 2017 of the former General Administration of Quality Supervision, Inspection and Quarantine, Notice No. 30 of 2018 of the former General Administration of Quality Supervision, Inspection and Quarantine, and Notice No. 77 of 2022 of the General Administration of Customs are hereby repealed simultaneously.

I. Background to the Issuance of the Announcement

1. Updates to overarching legislation necessitate the restructuring of existing regulatory documents

Following the implementation of the *Biosecurity Law*, higher statutory requirements have been imposed regarding biosecurity at national borders, the introduction of invasive alien species, and the prevention and control of public health risks. Several quarantine treatment notices previously in force were formulated during the period of the former General Administration of Quality Supervision, Inspection and Quarantine prior to institutional reform; some of their provisions are inconsistent with current legislation, and the boundaries of regulatory authority and the division of responsibilities are insufficiently clear. Consequently, they need to be consolidated and revised into two sets of unified operational regulations.

2. Prominent practical risks in port operations

Quarantine treatments at ports of entry (including fumigation, disinfection, insect control and decontamination) cover imported grain, timber, fruit, wooden packaging, containers, means of transport, and postal and express consignments.In practice, the following issues exist: non-standardised treatment protocols, weak supervision of operational procedures, incomplete treatment records, and a lack of traceability regarding treatment efficacy; some enterprises and treatment providers prioritise form over substance, posing risks of the introduction of invasive species and disease vectors; simultaneously, regulatory constraints are required to address risks relating to the safety of fumigants, the safety of operational staff, and environmental protection.

3. Distinguishing between two types of treatment and clarifying regulatory boundaries

Two distinct types of treatment have long co-existed at ports:

1) Animal and plant quarantine treatment: Targeting harmful organisms (pests and pathogens) in animals and plants, such as timber fumigation and cold treatment of fruit, with the aim of preventing the introduction and spread of animal and plant diseases;

2) Sanitary treatments: These target public health vectors and microorganisms, including the disinfection of transport vehicles and containers, as well as rodent and insect control, to prevent the cross-border transmission of infectious diseases.

Previous documents frequently conflated these two categories, failing to clearly distinguish between the responsible parties, implementing bodies and regulatory requirements. This revision separates the two types of treatment into two independent sets of regulations, establishing distinct rules for each, thereby clarifying the regulatory framework.

4. Implementing a combination of deregulation and supervision to transform the regulatory model

Reform of the old model: For sanitary treatment, the system of prior approval by Customs has been abolished, and Customs will no longer approve the qualifications of treatment providers; however, Customs will strengthen ex-post supervision, process verification and record traceability. For animal and plant quarantine treatment, the management of provider access and technical protocols will be retained. This achieves a differentiated regulatory approach characterised by ‘liberalising access to sanitary treatment whilst strengthening in-process and ex-post supervision; and maintaining strict technical controls over animal and plant quarantine treatment’.

II. In-depth Analysis of the Main Content of the Announcement

(1) General Basic Rules

1. Effective Date: Takes effect on 1 September 2026; published on 31 July, allowing a one-month transition period for enterprises and port handling units to complete system updates; the previous notice is repealed simultaneously.

2. Level of Supervision: The General Administration of Customs coordinates nationwide, whilst directly subordinate and affiliated customs offices are responsible for on-site supervision and management.

3. Core Principles: Consignees, consignors and agents are the primary parties responsible, whilst Customs acts as the supervisory authority; Customs generally does not directly carry out quarantine treatment operations.

(II) Key Points of the ‘Regulations on the Supervision and Administration of Quarantine Treatment for Inbound and Outbound Animals and Plants’

Scope of Application: Fumigation, cold treatment, heat treatment, irradiation, chemical treatment and other measures carried out on inbound and outbound goods, containers, means of transport, postal parcels and express consignments to eradicate harmful organisms affecting animals and plants.

1. Management of Treatment Providers

Entities carrying out animal and plant quarantine treatments are subject to technical accreditation management. Customs conducts technical assessments of the entities’ facilities, personnel, chemicals and equipment; such operations may not be carried out without prior accreditation.

2. Prior Approval of Treatment Plans

Statutory treatments must utilise treatment technical protocols approved by Customs;

any on-site changes to treatment conditions (temperature, duration, chemical concentration) must be approved by Customs; enterprises and treatment providers must not alter process parameters without authorisation.

3. End-to-End Documentation and Effectiveness Assessment

Complete records of the entire treatment process (time, chemicals, parameters, environment) must be retained; an effectiveness assessment must be carried out upon completion of treatment, and the recorded data must be available for inspection by Customs at any time; records must be retained for a period of not less than three years. If the treatment fails to achieve the required effectiveness, the treatment must be repeated.

4. Control of the Status of Goods

Goods awaiting treatment shall be stored in isolation; they must not be removed from the treatment site, sold or used without the consent of Customs. Where treatment fails to meet the required standards, the goods shall be returned or destroyed in accordance with regulations.

5. Applicable to Export Scenarios as Well

These provisions apply not only to imports but also to outbound goods and wooden packaging intended for export that require animal and plant quarantine treatment; such goods must comply with these regulations and meet the technical requirements for quarantine treatment specified by the importing country.

(III) Key Points of the ‘Regulations on the Supervision and Administration of Sanitary Treatment for Inbound and Outbound Goods’ (Major Institutional Changes)

Scope of Application: Inbound and outbound means of transport, containers, goods, luggage, postal parcels, human remains and corpses undergoing public health treatments such as disinfection, insect control, rodent control and decontamination, as stipulated by customs regulations...

1. Abolition of prior customs approval for sanitary treatment providers

Major change: Entities carrying out sanitary treatments no longer require customs approval for their qualifications; enterprises may independently select eligible service providers from the market; however, this does not equate to a lack of oversight, as customs authorities have strengthened supervision and verification during and after the process.

2. Clarification of the primary responsibility of the parties concerned

Consignors, consignees, carriers and agents are the primary parties responsible for sanitary treatment; they are responsible for organising and implementing such treatment and for ensuring its quality; Customs will only carry out supervision and will not be responsible for designating treatment companies.

3. Technical and record-keeping requirements

Compliant chemicals must be used, and operating procedures must be followed; complete treatment records must be retained for a minimum of three years; Customs may conduct spot checks on operational processes and verify records. Should the treatment fail to meet standards, it must be carried out again.

4. On-site Control

Until sanitary treatment is completed, the relevant goods and items must be isolated and must not be diverted for other uses without the permission of Customs.

(5) Consequences of legal liability

1. Obligated parties (consignors, consignees and freight forwarders): Should they refuse to carry out quarantine treatment, remove goods awaiting treatment without authorisation, or falsify treatment records, Customs shall impose administrative penalties in accordance with the law; the goods may be returned or destroyed.

2. Treatment Service Providers: Where animal and plant quarantine treatment providers carry out operations without authorisation or tamper with process parameters, Customs may suspend their operations; where health treatment providers fail to comply with operational standards, Customs shall order rectification; in serious cases, a public notice shall be issued and relevant operations shall not be recognised.

3. Falsifying records or carrying out fraudulent treatment will result in a downgrade of the enterprise’s customs credit rating.

III. Practical Compliance Guidance for Enterprises

1. Importers (grain, timber, fruit, and goods with wooden packaging)

Animal and Plant Quarantine Treatment: Ensure that the service provider is a unit approved by Customs in accordance with technical requirements; do not alter fumigation or cold treatment parameters without authorisation; obtain complete treatment reports and retain them for at least three years; do not remove goods awaiting treatment from the premises without authorisation.

Sanitary treatment: Enterprises may select their own service providers, but must verify that the chemicals and procedures comply with regulations, and obtain and retain complete treatment records for future reference.

2. Exporters (outbound wooden packaging, etc.)

For outbound animal and plant quarantine treatment, you must also select a treatment provider approved by Customs to ensure that treatment parameters meet the official requirements of the destination country, thereby avoiding rejection by foreign authorities.

3. Freight forwarders / customs clearance agents

As agents, you must remind shippers to fulfil their treatment obligations; you must not assist in falsifying treatment records or carrying out fraudulent treatments; from 1 September, the old operational requirements will no longer apply, and internal SOPs must be updated.

4. Treatment Service Providers

For businesses carrying out animal and plant quarantine treatment: complete the confirmation of customs technical conditions as soon as possible;

For hygiene treatment services only: Customs authorisation is no longer required, but operational records and chemical management must be improved, and providers must be prepared for on-site spot checks by Customs.

5. Arrangements for the Transition Period: All operations declared after 1 September must comply with the new regulations; operations accepted before 1 September but not yet completed shall be finalised in accordance with the old rules.

IV. Policy Summary

Announcement No. 111 represents a systemic overhaul of the port quarantine treatment regime: animal and plant quarantine treatments will continue to be subject to strict technical access controls;hygienic treatment abolishes prior authorisation, shifting to a model of enterprise accountability combined with post-event verification and traceability. The two sets of rules are distinct, with clearly defined boundaries, thereby both implementing biosecurity controls at the national border and optimising the business environment at ports of entry whilst reducing unnecessary prior approvals; however, the responsibilities of enterprises, agents and treatment providers regarding record-keeping and process compliance have been significantly increased.

Link

http://gdfs.customs.gov.cn/manzhouli_customs/566020/3392762/566021/7285687/index.html

05

Announcement by the Ministry of Finance, the State Taxation Administration, the National Development and Reform Commission and the Ministry of Industry and Information Technology on Corporate Income Tax Policies for Non-monetary Asset Exchanges by Integrated Circuit and Machine Tool Enterprises

Release Date: July 31, 2026

Effective Date: July 31, 2026

The following is hereby announced regarding corporate income tax policies on non-monetary asset exchanges by integrated circuit enterprises and industrial machine tool enterprises:

I. Where integrated circuit enterprises and industrial machine tool enterprises engage in non-monetary asset exchanges during the period from 1 January 2026 to 31 December 2028, the gains from such exchanges, as recognised in accordance with the regulations, may be spread evenly over a period not exceeding five years and included in the taxable income of the relevant years, with corporate income tax calculated and paid in accordance with current policy provisions; losses incurred by enterprises as a result of non-monetary asset exchanges shall not be recognised on an instalment basis.

II. Enterprises engaging in non-monetary asset exchanges with integrated circuit enterprises or industrial machine tool enterprises shall recognise the gains arising from such exchanges in accordance with current policy provisions and pay tax in accordance with the law. Where both parties to a non-monetary asset exchange are integrated circuit enterprises or industrial machine tool enterprises, both may benefit from the preferential tax policies set out in this Announcement.

III. Both parties to a non-monetary asset exchange shall calculate and recognise the gain arising from the exchange based on the fair value of the non-monetary asset received in the exchange, less the tax base of the corresponding non-monetary asset disposed of and any relevant taxes and fees.

IV. The tax base for the non-monetary assets acquired by both parties to a non-monetary asset exchange shall be the fair value of such assets plus the relevant taxes and fees paid.

5. For the purposes of this Announcement, ‘non-monetary assets’ refer to assets other than monetary assets, such as cash, deposits, accounts receivable, notes receivable and bond investments held to maturity. For the purposes of this Announcement, a ‘non-monetary asset exchange’ refers to a transaction in which an enterprise exchanges non-monetary assets for other non-monetary assets.

Where a transaction involves both non-monetary and monetary assets, the portion involving the exchange of non-monetary assets for non-monetary assets shall be recognised as a gain on the exchange of non-monetary assets, which may be subject to the deferred taxation policy in accordance with the provisions of this Announcement;the portion involving the exchange of non-monetary assets for monetary assets constitutes a transaction in which consideration is received in monetary form; the corresponding gain or loss shall be recognised in accordance with current regulations, and the deferred taxation policy shall not apply. Where both parties to the transaction involve monetary assets, the difference arising from the exchange of monetary assets for monetary assets shall be treated as such.

VI. Where integrated circuit enterprises or machine tool enterprises dispose of assets acquired through a non-monetary asset exchange within five years of the exchange, the deferred taxation policy shall cease to apply. Any gains from the non-monetary asset exchange that have not yet been recognised during the deferred taxation period shall be calculated and corporate income tax paid in a single instalment during the annual corporate income tax settlement for the year in which the asset is disposed of.

Where an integrated circuit enterprise or a machine tool enterprise is deregistered within five years of undertaking a non-monetary asset exchange, the instalment tax payment policy shall cease to apply; corporate income tax on the gains from the non-monetary asset exchange that have not yet been recognised during the instalment period shall be calculated and paid in a single instalment during the annual corporate income tax settlement for the year in which deregistration takes place.

VII. The terms ‘integrated circuit enterprises’ and ‘industrial machine tool enterprises’ as used in this Announcement refer to enterprises that meet the provisions of the ‘Announcement of the Ministry of Finance, the State Taxation Administration, the National Development and Reform Commission and the Ministry of Industry and Information Technology on Increasing the Proportion of Additional Deductions for Research and Development Expenditure of Integrated Circuit and Industrial Machine Tool Enterprises’ (Announcement No. 44 of 2023 issued by the Ministry of Finance, the State Taxation Administration, the National Development and Reform Commission and the Ministry of Industry and Information Technology; hereinafter referred to as ‘Announcement No. 44’). Should there be any updates, the provisions thereof shall prevail.

For integrated circuit enterprises and industrial machine tool enterprises subject to list-based management in accordance with Announcement No. 44, the National Development and Reform Commission and the Ministry of Industry and Information Technology shall, by the end of March each year, provide the Ministry of Finance and the State Taxation Administration with a list of enterprises eligible for the preferential treatment in the previous year in accordance with the regulations; for those not subject to list-based management, the tax authorities may, in accordance with the regulations, refer the matter to the development and reform and industry and information technology departments for verification.

8. With regard to corporate income tax arising from enterprises’ investments in non-monetary assets, the provisions set out in the ‘Notice of the Ministry of Finance and the State Taxation Administration on Corporate Income Tax Policies Concerning Investments in Non-Monetary Assets’ (Cai Shui [[]2014] No. 116) and the ‘Notice of the Ministry of Finance and the State Taxation Administration on Improving Income Tax Policies Relating to Equity Incentives and Technology Contributions’ (Cai Shui [[]2016] No. 101) shall continue to apply.

IX.Where an enterprise engages in a non-monetary asset exchange and meets the conditions for the relevant tax policies set out in documents such as the ‘Notice of the Ministry of Finance and the State Administration of Taxation on Several Issues Concerning the Corporate Income Tax Treatment of Enterprise Reorganisation Transactions’ (Cai Shui [[]2009] No. 59) and the ‘Notice of the Ministry of Finance and the State Administration of Taxation on Issues Concerning the Corporate Income Tax Treatment for Promoting Enterprise Reorganisation’ (Cai Shui [[]2014] No. 109), the enterprise may choose to implement the provisions of one of these policies; once a choice has been made, it may not be altered.

10. This Announcement shall come into effect from 1 January 2026 to 31 December 2028. Where, as at 31 December 2028, an enterprise has been benefiting from the instalment tax payment policy set out in this Announcement for less than five years, it may continue to benefit from it until the five-year period expires.

I. Background to the Issuance of this Announcement

1. Industrial Strategic Positioning: Integrated circuits and machine tools are key areas targeted for national research and development

Integrated circuits and machine tools are key areas for research and development under the 15th Five-Year Plan; they form part of the core sectors for achieving self-reliance and control in manufacturing and for fostering new-quality productive forces. These industries are characterised by heavy asset investment and rapid technological iteration, necessitating frequent non-monetary asset transactions (barter) such as equipment upgrades, patent swaps, production line restructuring and equity swaps.

2. Pain Points in Cash Flow Caused by the Existing Tax System

Under general corporate income tax rules: for non-monetary asset exchanges (barter), capital gains must be recognised in full and corporate income tax paid in a single instalment in the year of the transaction. Practical scenario: when a company exchanges old equipment, patents or equity for new equipment or intellectual property, no cash flows into the business during the transaction, yet substantial taxable income is generated. The company must draw on operating cash to pay tax, tying up funds that should be allocated to R&D and production expansion, thereby hindering asset integration and the circulation of technological factors within the industrial chain.

3. Gaps in existing tax policies

The current tax deferral policy for non-monetary asset investments applies specifically to ‘acquiring equity through external investment with assets’; it does not cover ‘asset-for-asset’ non-monetary asset exchange scenarios. Enterprises in the integrated circuit and machine tool sectors frequently engage in equipment and patent swap transactions, yet lack corresponding tax deferral instruments; this announcement specifically addresses this regulatory gap.

4. Continuation of a Comprehensive Policy Package to Provide Targeted Support for Strategic Industries

Previously, Announcement No. 44 of 2023 provided higher additional tax deductions for R&D expenditure; this Announcement No. 23 offers support at the stages of asset restructuring and asset swaps, thereby forming a complementary tax support framework for ‘R&D plus asset operations’.

5. Balancing anti-tax avoidance considerations

Whilst encouraging industrial consolidation, the policy also aims to prevent enterprises from exploiting non-monetary exchanges for tax avoidance through arbitrage. To this end, it establishes a list-based eligibility management system and sets out conditions triggering back payments to prevent policy abuse.

II. In-depth Analysis of the Main Provisions of the Announcement

1. Core Preferential Rules

Applicable period: Non-monetary asset exchange transactions occurring between 1 January 2026 and 31 December 2028. For eligible enterprises, the taxable income arising from non-monetary asset exchanges may be spread evenly over a period not exceeding five years and included in the taxable income for each financial year for the purposes of corporate income tax;

2. Scope of Applicable Entities (Eligibility Criteria)

1) Enterprises eligible for the preferential treatment: Integrated circuit enterprises and machine tool enterprises that fully meet the criteria set out in Announcement No. 44 of 2023 issued by the Ministry of Finance and three other departments.

Enterprises not on the list: Tax authorities may refer the matter to the National Development and Reform Commission and the Ministry of Industry and Information Technology for verification of the enterprise’s eligibility; the policy may only be applied once verification has been successfully completed.

2) Counterparty Rules:

If only our company is an eligible enterprise, our taxable income may be paid in instalments over five years; if the counterparty does not meet the criteria, they must pay the full amount of tax for that year in accordance with standard tax legislation.

Where both parties to the transaction are eligible enterprises, both may benefit from the five-year deferred tax payment arrangement.

3. What is a ‘non-monetary asset exchange’?

Non-monetary assets: Excludes cash, bank deposits, receivables and held-to-maturity bonds; includes machinery and equipment, patented technology, software, plant and premises, equity interests, etc.

Non-monetary asset exchange: An enterprise exchanges its non-monetary assets for the other party’s non-monetary assets.

4. Rules for calculating income and the tax base of the assets acquired

1) Gain on exchange = fair value of the asset received – tax base of the asset given up – transaction-related taxes and fees.

2) Tax base of the assets received = fair value of the assets received + relevant taxes and fees.

5. Anti-avoidance provisions (triggering a one-off back payment; extremely important)

In the event of either of the following two circumstances, the five-year instalment scheme shall be terminated immediately, and all unrecognised gains shall be subject to a one-off corporate income tax top-up payment during the annual tax settlement for the relevant financial year.

1） Within five years of the completion of the asset exchange, the enterprise disposes of the assets acquired through the exchange;

2) The enterprise is deregistered within five years of the completion of the asset exchange.

6. Policy Scope (Exclusions)

1) Transactions involving monetary assets (e.g. directly using cash to purchase equipment or patents): This announcement does not apply;

2) Losses arising from non-monetary asset exchanges: such losses may not be carried forward and must be deducted directly in the year in which they arise;

3) Transactions occurring outside the 2026–2028 timeframe are not covered;

4) Ordinary manufacturing and trading enterprises, which do not fall within the scope of Announcement No. 44 covering integrated circuits and machine tools, are not eligible for this policy.

7. Distinction from Existing Policies on Non-Monetary Asset Investment

Non-monetary asset investment policy: contributing assets in exchange for equity in the counterparty;

Announcement No. 23: Asset-for-asset exchanges (e.g. equipment for patents, patents for equipment), not limited to the acquisition of equity; The applicable transaction scenarios for the two policies differ, and they are not interchangeable.

III. Practical Compliance Guidance for Enterprises

1. Prior Verification of Eligibility

Prioritise verifying whether your enterprise falls within the category of integrated circuit or industrial machine tool enterprises as defined in Announcement No. 44; for enterprises on the list, confirm whether they are included in the annual list; for enterprises not on the list, prepare the relevant business documentation in advance in case the tax authorities refer the matter to the Ministry of Industry and Information Technology (MIIT) or the National Development and Reform Commission (NDRC) for verification. Enterprises that do not meet the eligibility criteria must not apply the five-year instalment scheme without authorisation.

2. Consideration of Top-Up Payments in Transaction Structure Design

Where a transaction involves a cash top-up, this must be accounted for separately: gains from the non-monetary swap portion may be deferred; gains corresponding to the cash top-up received must be taxed in the current period and cannot be fully covered by the deferral policy. Retain the transaction contract, valuation report and evidence of fair value.

3. Establish a dedicated tax ledger

Maintain a separate ledger to record: the date of the exchange, total gains, the annual allocation of recognised gains, and the original value of the assets acquired; pay particular attention to the five-year timeframe; should the acquired assets be disposed of or the enterprise be wound up, promptly trigger a one-off supplementary tax payment.

4. Management of tax-accounting differences

As there are differences between the profit or loss recorded in the accounting books and the income recognised in instalments for corporate income tax purposes, ensure tax adjustments are made during the annual tax settlement and finalisation.

5. Validity Period of the Policy

This policy applies solely to exchange transactions occurring in the financial years 2026–2028; eligibility is determined by the date the transaction takes place, not by the financial year in which tax is paid. Whether the policy will be extended beyond this period is subject to a subsequent announcement by the four relevant authorities.

IV. Summary of the Policy

Announcement No. 23 is a special corporate income tax deferral policy for integrated circuits and industrial machine tools. It addresses the industry’s practical challenge of ‘barter transactions generating no cash inflows yet incurring substantial tax liabilities’, whilst encouraging equipment upgrades, patent exchanges and the integration of assets within the industrial chain. This does not constitute a tax reduction, but merely a deferral of tax payment; at the same time, strict eligibility criteria and a five-year anti-avoidance clause have been established to prevent policy arbitrage.

Link

https://fgk.chinatax.gov.cn/zcfgk/c102416/c5251766/content.html

06

General Administration of Customs Announcement No. 97 of 2026 (Announcement on Adjusting the Catalogue of Import and Export Commodities Subject to Mandatory Inspection)

Release Date:July 9, 2026

Effective Date: July 16, 2026

Pursuant to the ‘Law of the People’s Republic of China on the Inspection of Imported and Exported Commodities’ and its Implementing Regulations, the General Administration of Customs has decided to amend the Catalogue of Imported and Exported Commodities Subject to Compulsory Inspection, and hereby announces the following:

Customs supervision condition ‘B’ is added to the two 10-digit customs commodity codes relating to the export of ammonium sulphate; Customs shall carry out export commodity inspections on the relevant goods. The revised supervision requirements are set out in the Annex.

This announcement shall come into effect on 16 July 2026.

I. Background to the Announcement

1. The sector involves substantial trade volumes, and there were previously gaps in export supervision

Ammonium sulphate is a major bulk nitrogen fertiliser exported by China. In 2025, exports exceeded 21 million metric tonnes, accounting for nearly 60 per cent of the global total, with primary markets including Brazil, India and Southeast Asia; the sector is highly dependent on exports. As early as 2021, under General Administration of Customs Announcement No. 81, most categories of fertilisers had already been included in the catalogue of goods subject to statutory export inspection; however, ammonium sulphate and ammonium sulphate-nitrate double salts were excluded at that time. For these two tariff codes, only statutory import inspection (Regulatory Condition A) was established; for a long period, no official export inspection was required, and enterprises could clear customs for export based solely on their own testing.

2. Pronounced quality issues in exports: ‘bad money drives out good’

A significant proportion of ammonium sulphate originates from chemical by-products, and there are numerous traders in the market. Some traders procure by-product ammonium sulphate that fails to meet nitrogen content standards or exceeds impurity limits, exporting it at low prices; this has led to inconsistent quality and non-compliant packaging labelling. This has triggered claims from overseas customers and risks of regulatory notifications from foreign authorities, damaging the overall brand reputation of China’s fertiliser exports, whilst the issue of disorderly low-price competition within the industry remains prominent.

3. Dynamic adjustment mechanism for the List of Goods Subject to Mandatory Inspection

The ‘Catalogue of Import and Export Commodities Subject to Mandatory Inspection’ is dynamically adjusted by the customs authorities based on risk assessments: items are added to the catalogue when risks rise or quality issues become frequent, and removed when risks decrease. This latest adjustment is based on an assessment of export quality risks and aims to address regulatory shortcomings in fertiliser exports; it represents a continuation of the same regulatory approach as the 2021 expansion of the mandatory inspection scope for fertilisers.

4. Industrial Policy Orientation

Statutory export inspection is used to drive improvements in the quality of exported goods, phase out low-quality, low-price products, and guide the industry towards a transition to high-quality exports; this is not a trade restriction but rather a strengthening of quality supervision, and does not involve changes to tariffs or export quotas.

II. In-Depth Analysis of the Main Content of the Announcement

1. Changes to Regulatory Conditions

3102210000 Ammonium sulphate: Regulatory condition before adjustment: A; after adjustment: A/B (import inspections continue; export inspections are newly introduced)

3102290000 Mixture of sulphate and nitrate of ammonium: Regulatory condition before adjustment: A; after adjustment: A/B (import inspections continue; export inspections newly introduced)

2. Effective Date and Demarcation between New and Existing Operations

Official implementation: 16 2026.

Export declarations submitted after 16 July: Must undergo export statutory inspection;

For goods for which export declarations were completed before 16 July, the old rules shall continue to apply, and no supplementary export inspection is required.

3. Specific Operational Requirements for Export Statutory Inspection

1) Enterprises exporting goods under the two tariff codes mentioned above must apply to the local customs authority for statutory inspection of outbound goods prior to customs declaration; customs will conduct on-site verification and laboratory testing of samples, focusing on indicators such as nitrogen content, impurities and packaging labelling; only upon passing the inspection and obtaining a release certificate may customs clearance for export be processed.

2) If the inspection fails, clearance will not be granted; the enterprise must carry out rework or arrange for the goods to be returned, and the goods must not be exported.

3) Enterprises’ self-inspection reports may not be used as a substitute for the customs’ statutory export inspection.

4. Scope of the Policy

1) This applies only to the two 10-digit tariff codes mentioned above; regulatory requirements for other fertiliser tariff codes remain unchanged;

2) Only export inspections are introduced; other regulatory conditions, such as export duties, export licences and quotas, remain unchanged;

3) Import controls remain unchanged; imports shall continue to be subject to the original entry inspection requirements.

5. Legal Liability

After 16 July, directly declaring goods for export without having undergone the statutory export inspection constitutes a breach of the Commodity Inspection Law; Customs may order the goods to be returned or impose administrative penalties;

Providing false samples or forging test reports to evade statutory inspection will result in a downgrade of the enterprise’s customs credit rating.

1. Tariff classification must be accurate

Strictly verify the 10-digit tariff code; do not attempt to circumvent Condition B through incorrect classification. Customs will carry out classification verification, and incorrect classification poses a risk of non-compliance.

2. Revise export procedures to allow for the inspection cycle

Statutory inspection requires sampling and laboratory testing; sufficient processing time must be allowed, and the previous ‘declare and dispatch immediately’ model cannot be followed; delivery deadlines in trade contracts must take the inspection cycle into account to avoid goods being held up at port or delays to shipping schedules.

3. Quality control of goods

Manufacturers and traders must carry out pre-shipment self-inspections to ensure that nitrogen content, impurities and packaging labels comply with standards, thereby reducing the risk of goods being returned due to failure to meet customs inspection requirements; particular attention must be paid to quality control for the export of by-product ammonium sulphate.

4. Review of Outstanding Orders

All orders declared for customs clearance between 7 and 16 must follow the statutory export inspection procedure; orders for which customs declaration has already been completed are not affected.

5. Freight forwarders and customs clearance agents: When declaring shipments, identify ‘B’ regulatory conditions and remind shippers to complete the mandatory pre-export inspection in advance; do not proceed directly with customs declaration.

IV. Policy Summary

Announcement No. 97 is a quality supervision announcement, not a trade control policy. It incorporates ammonium sulphate and ammonium sulphate-nitrate double salts—which were previously exempt from export inspection—into the statutory export inspection system, thereby plugging loopholes in the supervision of fertiliser exports. In the short term, this will increase enterprises’ export lead times and testing costs; the long-term objective is to crack down on low-priced, substandard goods, standardise export practices, and safeguard the reputation of domestically produced fertilisers in overseas markets.

Link

http://www.customs.gov.cn/customs/2026-07/20/article_2026072009115472035.html

07

General Administration of Customs Announcement No. 104 of 2026 (Announcement on the Repeal of Certain Provisions of General Administration of Customs Announcement No. 48 of 2017)

Release Date: July 23, 2026

Effective Dates: July 23, 2026

In light of practical circumstances, the General Administration of Customs has decided to repeal Article 2 of General Administration of Customs Announcement No. 48 of 2017:

2. Where imported solid waste meets the following conditions, the consignee and consignor may, upon approval by the customs authorities, apply for transit clearance procedures and carry out transit transport:

(1) Waste paper and waste metal entering the country via the water-water intermodal transport model.

(2) The goods enter via a designated port for the import of solid waste.

(3) Transit transport refers to cases where the destination has installed large-scale container inspection equipment.

(4) In the case of imported scrap metal, intermodal transport refers to situations where the destination is an ‘enclosed-area management’ park for imported solid waste that has been established with the approval of the national environmental protection authorities, has passed acceptance inspections by the national environmental protection and other relevant departments, and is subject to on-site customs supervision.

(5) Imported scrap metal transported via intermodal transport to an ‘enclosed-area management’ park for imported solid waste may only be processed and utilised by enterprises within that park.

I. Background to the Issuance of the Announcement

1. There has been a fundamental change in the policy on the import of solid waste, and the original provisions no longer apply

Article 2 of Announcement No. 48 of 2017 was a specific regulation permitting the transit clearance of eligible imported solid waste (waste paper and scrap metal) that year, establishing a series of mandatory requirements such as water-water intermodal transport, designated ports, ‘zoned management’ parks and large-scale container inspection equipment. In accordance with national solid waste management policies, China has imposed a comprehensive ban on the import of solid waste; solid wastes such as waste paper and scrap metal are no longer permitted to enter the country. The operational scenarios regulated by the original Article 2 have completely ceased to exist; this provision constitutes a case of ‘operational obsolescence whilst the provision remains in force’, resulting in regulatory redundancy.

2. Requirements for the dynamic review of customs regulatory documents

Customs routinely carries out the review and streamlining of regulations and announcements. For provisions that are no longer applicable due to adjustments to higher-level policies, the cancellation of business operations, or changes in practical circumstances, the approach is to partially repeal them (removing invalid provisions whilst retaining the remaining valid operational rules), rather than directly repealing Announcement No. 48 in its entirety. The remaining provisions of Announcement No. 48 of 2017 remain an important basis for current transit operations: transit operations involving multimodal transport, special goods (temperature-sensitive goods), express consignments, the China–Europe Railway Express and market procurement, amongst others, continue to be implemented; therefore, the Announcement cannot be repealed in its entirety.

3. Resolving enforcement inconsistencies and avoiding practical misunderstandings

Leaving the old Article 2 in the text of the valid Announcement would cause confusion for enterprises and on-site customs authorities: whilst the provision sets out the conditions for the transit of solid waste, in reality the import of solid waste is already prohibited; the provision is thus nominal and lacks substance, which could easily give rise to questions regarding enforcement. This partial repeal clarifies the boundaries of the valid rules and standardises the approach to enforcement.

II. In-depth Analysis of the Main Content of the Announcement

1. Precise Targeting of the Repeal

Only Article 2 of Announcement No. 48 of 2017 is repealed (the entire paragraph setting out the five conditions for the transit of imported solid waste has been deleted); Articles 1, 3, 4, 5, 6 and 7 of Announcement No. 48 remain in full force.

The repealed Article 2: This specifically stipulated that imported solid waste, such as waste paper and scrap metal, could apply for transit transport provided certain conditions were met, including water-water intermodal transport, designated solid waste ports, designated destination facilities, and managed zones within industrial parks. As there is no longer any business involving the import of solid waste, this article is rendered entirely invalid.

2. Impact on existing transit operations

1) Unaffected and to be continued:

Transit operations involving intermodal transport and the exchange of bills of lading throughout the entire journey (Article 1);

Transit operations for temperature-sensitive or electrostatic dust-prone goods unsuitable for port inspection, for which enterprises with advanced certification may apply for transit (Article 3);

Transit operations involving postal items and express parcels, temporary import and export, China–Europe freight trains, market procurement, cross-border e-commerce retail and duty-free goods (Article 4);

Except where permitted by law, Customs will not accept any other transit declarations (Article 5).

2) The only provision deleted on this occasion is the special licensing requirement for the transit of imported solid waste; in practice, the import of solid waste into China is already comprehensively prohibited, meaning that enterprises cannot declare the import of solid waste in the first place; this repeal merely serves to concurrently remove the corresponding transit provisions.

4. Clarification of Policy Boundaries

1) This does not alter the overall policy on transit transport; there is no relaxation or tightening of access requirements for the transit of other goods;

2) This does not concern other regulatory measures such as customs duties, licences or inspections;

3) This merely involves the removal of outdated regulatory documents and does not impose any new obligations on enterprises.

III. Practical Compliance Guidance for Enterprises

1. Enterprises and customs systems should update their internal policy documents

When referencing Announcement No. 48 of 2017, please note: Article 2 has been repealed and is no longer in force, whilst the remaining provisions remain valid; internal SOPs and customs declaration guidelines should no longer refer to the conditions for the transit of solid waste set out in Article 2.

2. The existing assessment criteria for transit operations involving other categories of goods remain unchanged

When handling transit operations, enterprises should continue to refer to Articles 1, 3 and 4 of Announcement No. 48 to determine whether goods fall within the scope of permitted transit; for example, the rules governing the transit of special sensitive goods by enterprises with advanced certification, transit via the China–Europe Railway Express, and multimodal transit remain entirely unchanged.

3. Do not misinterpret the policy: this does not constitute a relaxation of restrictions on the import of solid waste; the import of solid waste remains comprehensively prohibited. This measure merely serves to remove outdated supporting provisions relating to transit.

4. Customs declarants and freight forwarders: There is no need to adjust customs declaration fields, and there are no new declaration requirements.

IV. Summary of the Policy

Announcement No. 104 is a typical example of an announcement aimed at streamlining regulations: as the State has now imposed a comprehensive ban on the import of solid waste, Article 2 of Announcement No. 48—which originally dealt specifically with the transit of imported solid waste—has lost its operational basis and has therefore been partially repealed; the remaining rules governing transit operations in Announcement No. 48 remain in full force, and enterprises’ day-to-day import and export transit operations are not affected by this announcement.

Link

http://www.customs.gov.cn/customs/2026-07/24/article_2026072418332711849.html

08

General Administration of Customs Announcement No. 112 of 2026 (Announcement on the Repeal of Certain Normative Documents Relating to Health and Quarantine)

Release Date: July 31,2026

Effective Dates: July 31,2026

I. Background to the Announcement

1. Institutional reforms have left a large number of health and quarantine documents from the former Quality and Inspection era requiring review

Following the integration of customs and inspection functions, a large number of sanitary and quarantine regulatory documents from the former Entry-Exit Inspection and Quarantine Administration were transferred to the customs authorities for implementation. Many of these documents were issued during the era of the former General Administration of Quality Supervision, Inspection and Quarantine, whilst some were formulated in response to specific public health emergencies; the operational contexts for which have since ceased to exist, and the provisions have become outdated. The long-term coexistence of old and new documents has made it easy for customs officers and enterprises at the operational level to misapply the relevant provisions.

2. With the implementation of the new regulatory framework, the old documents have lost their legal basis

1) General Administration of Customs Decree No. 281, the ‘Regulations on the Sanitary and Quarantine Management of Special Goods and Articles Entering and Leaving the Country’, came into force on 1 August 2026, replacing the old regulations; a number of accompanying old announcements and operational documents are no longer applicable.

2) Concurrently, Announcement No. 111 of 2026 introduced two entirely new sets of regulations on quarantine treatment (quarantine treatment for imported and exported animals and plants, and sanitary treatment for imported and exported goods), which came into force on 1 September. These have restructured the regulatory framework for the entire chain of fumigation, disinfection and sanitary treatment at ports of entry, necessitating the wholesale repeal of the old supporting announcements on sanitary treatment.

3. Certain documents were issued in response to the special circumstances of the pandemic and are no longer required following the conclusion of emergency measures

Some of the documents to be repealed were temporary operational guidelines issued during major public health emergencies. Following adjustments to epidemic prevention and control policies, these are no longer implemented in practice; however, as the text of the documents has not been cleared, they remain listed in the database of valid documents, causing confusion for law enforcement authorities and businesses alike.

4. Implementation of the national requirements for the routine review of normative documents

In accordance with the State Council and General Administration of Customs’ regulatory clearance mechanism, old normative documents that conflict with current laws or new regulations, have been superseded by new documents, or are no longer relevant to operational contexts are being centrally cleared and repealed; this specific clearance exercise targeting the sanitary and quarantine sector forms part of the same series of regulatory clearance measures as the previous Announcement No. 104 (partial repeal of the transit declaration announcement).

Policy Position: This measure merely renders ‘old documents invalid’, with regulatory requirements being superseded by new regulations and announcements; it does not constitute a relaxation of border health and quarantine measures, and the overall requirements for public health risk prevention and control at ports of entry remain unchanged.

II. In-depth Analysis of the Main Content of the Announcement

1. Core Content

The main text of the Announcement is very brief: in accordance with practical working requirements, a number of normative documents relating to health and quarantine are repealed; the detailed list of repealed documents is set out in the Annex; the Announcement takes effect immediately on the date of its publication, 31 July 2026, with no transition period.

Documents to be repealed: Several health and quarantine-related announcements and normative documents originally issued by the former General Administration of Quality Supervision, Inspection and Quarantine and the General Administration of Customs; scope: old documents concerning the sanitary treatment of means of transport, port disinfection, special items, human remains and corpses, sanitary treatment procedures, and emergency response to epidemics.

Note: This repeal applies only to normative announcements and documents; the ‘Law on Sanitary and Quarantine at the Frontier’ and its implementing rules, as well as General Administration of Customs Orders (departmental regulations), remain in full force and effect.

2. Interrelationship with Announcement No. 111 (Practical Focus)

Announcement No. 111 issued two new sets of regulations: the ‘Regulations on the Supervision and Administration of Quarantine Treatment for Inbound and Outbound Animals and Plants’ and the ‘Regulations on the Supervision and Administration of Sanitary Treatment for Inbound and Outbound Goods’, to come into effect on 1 September 2026; Announcement No. 112 repeals in bulk the previous announcements relating to sanitary treatment, with all old rules being phased out; subsequent sanitary treatment shall be uniformly carried out in accordance with the new provisions of Announcement No. 111.

3. Distinguishing the Fates of Three Categories of Documents

1) Formally repealed by Announcement No. 112: The annex lists all previous sanitary and quarantine announcements; from 31 July onwards, these may no longer be used as a basis for law enforcement or corporate compliance.

2) Remain in force: The ‘Law on Border Health and Quarantine’ and its implementing rules, General Administration of Customs Order No. 281 (new regulations on special items), and other health and quarantine announcements not listed in the annex shall continue to apply.

3) New operational basis: The two sets of operational provisions under Announcement No. 111 of 2026 (effective from 1 September) shall serve as the core operational basis for sanitary treatment at ports of entry and for animal and plant quarantine treatment.

III. Practical Compliance Guidance for Enterprises

1. Updating Internal Documentation and SOPs

Review customs, supply chain and EHS policies, and remove references to health and quarantine documents listed in the Annex to Announcement No. 112 that have been repealed; for health treatment operations at ports of entry, use the two sets of regulations under Announcement No. 111 as the current standards.

2. Distinguishing Operational Timelines

From 31 July 2026: All obsolete documents listed in the annexes shall cease to be valid;

From 1 September 2026: Sanitary treatment and animal and plant quarantine operations shall fully comply with the new regulations set out in Announcement No. 111; sanitary treatment service providers will no longer require prior qualification approval from Customs, whilst record-keeping and verification during and after operations will be strengthened.

3. Freight forwarders, terminals and sanitary treatment service providers

Service providers must cease using the operational templates from the old notice; they must prioritise compliance with the requirements of Notice No. 111: records must be retained for no less than three years, and chemicals and operational procedures must comply with current national technical specifications.

4. Operations involving special items, human remains and carcasses

Do not refer to the repealed old announcements; operations must be conducted in accordance with General Administration of Customs Order No. 281, ‘Regulations on the Sanitary and Quarantine Management of Special Goods and Items Entering and Leaving the Country’.

5. Document enquiries: Operations shall be conducted in accordance with the currently valid regulatory documents on the General Administration of Customs’ official website; do not continue to refer to the text of old announcements available online.

IV. Summary of Policy

Announcement No. 112 is a special regulatory clean-up announcement and does not itself establish new regulatory rules; it primarily serves to remove a batch of outdated national border health and quarantine normative documents that have been superseded by new regulations or for which the emergency scenarios no longer apply. It complements the new regulations set out in Announcement No. 111 to complete the iteration of the port quarantine handling system.

Link

http://www.customs.gov.cn/customs/2026-08/03/article_2026080314585521552.html