China enacts legislation to strengthen export control measures, fines up to 20 times the business value if violated

As the United States and China impose export restrictions on each other, a law was enacted in China to further strengthen export control measures. It will be enforced from December 1, 2020, and if you violate it, you may be fined up to 20 times the business value.

People's Republic of China Exit Control Law_Chinese Great Net

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The 'People's Republic of China Exit Control Law' was enacted to 'protect national security and interests, fulfill non-proliferation and other international obligations, and strengthen and standardize export controls.' The targets of management include military-related and nuclear-related items, as well as technical-related data.

Under this law, China's export control authorities will be able to set risk levels for export target countries / regions and take corresponding control measures, and if necessary, the State Council / Central Military Commission. You can also take export bans with approval.

If the exporter does not obtain the necessary qualifications for the export business of the controlled item, he will be ordered to stop the illegal activity with a warning and the illegal income will be confiscated. In addition, if the business sales are 500,000 yuan (about 8 million yen) or more, the fine is 5 to 10 times the sales, and if the business sales are less than 500,000 yuan, 500,000 to 5 million yuan (about 80 million yen). ) Will be fined.

It is even more difficult when dealing with importers and end users included in the management list, 500,000 to 5 million yuan if the business amount is less than 500,000 yuan, and 10 times the business value if the business amount is 500,000 yuan or more. You will be fined up to 20 times. In this case, the fine can exceed 10 million yuan (about 160 million yen).

'If a country or region abuses export control measures to jeopardize China's security and interests, China may take reciprocal measures against that country or region based on actual circumstances.' It is possible that there will be further 'regulations' with the United States due to the provisions of.