China exports sensitive goods to Southeast Asia: policy regulations and compliance export analysis

China has close trade relations with Southeast Asian countries, but the export of sensitive goods faces special regulatory requirements. This article will systematically analyze the policy and regulatory framework, classification standards and compliance operation points of China’s export of sensitive goods to Southeast Asia to help companies avoid risks and achieve smooth exports.

Definition and classification standards of sensitive goods
Sensitive goods in international trade usually refer to high-risk goods between ordinary goods and contraband, which require special supervision and certification documents to be legally exported. According to the relevant laws and regulations of China and Southeast Asian countries, sensitive goods are mainly divided into the following categories:

Food and medicine: including edible health products, processed foods, condiments, grains, oilseeds, beans and other foods, as well as traditional Chinese medicine, biological drugs, chemical drugs and other drugs. Because these products involve biosafety risks, countries generally implement a compulsory quarantine system810.

Items containing batteries and magnets: such as mobile phones, laptops, Bluetooth headsets, power banks and other battery-containing products, as well as speakers, motors, shavers and other magnetic items. Batteries may cause combustion and explosion, and magnetic substances may affect the navigation system of transportation vehicles910.

Liquid/paste/powder: including liquids such as perfume, cosmetics (toner, lotion), beverages, chemical reagents, and powders such as milk powder, protein powder, and flour. Such items are prone to leakage or the ingredients are difficult to identify910.

Imitation brand and intellectual property related products: products with brand logos produced without brand authorization, such as counterfeit brand clothing, bags, watches, etc., involving infringement risks910.

Cultural products: books, periodicals, printed materials, CDs, etc. that contain content that damages the national economy, politics, morality and culture or involves state secrets10.

Dangerous goods: including flammable and explosive items (such as fireworks and firecrackers), sharp objects (such as simulated toy guns), etc.89.

Export control regulations related to China and Southeast Asia
China implements a strict registration management system for the export of sensitive items and technologies. The “Regulations on the Registration and Management of the Export of Sensitive Items and Technologies of the People’s Republic of China” clearly stipulates that operators engaged in the export of sensitive items and technologies must apply for registration with the Ministry of Foreign Trade and Economic Cooperation, and may not operate related export businesses without registration24. Registration conditions include:

Have import and export qualifications and business license

Pass annual review by the industrial and commercial and foreign trade authorities

No major violation record within three years

Understand the technical performance of the items being operated

Establish a dedicated export and after-sales service agency46

Under the framework of the China-ASEAN Free Trade Area, although tariffs on most products have been reduced to zero, sensitive products are still subject to special management. The Framework Agreement stipulates that tariffs on sensitive products should be reduced in accordance with the mutually agreed final tariff rate and timetable, and the quantity should be capped1. The non-tariff measures of each party on sensitive products (such as animal and plant quarantine, technical barriers, etc.) must also comply with WTO rules1.

Southeast Asian countries generally implement a licensing management system for the import of sensitive goods and require the submission of documents such as proof of origin and quarantine certificates. For example, Indonesia implements strict inspections on food and drug imports, Vietnam has special packaging requirements for battery-containing products, and Thailand requires advance registration for the import of cosmetics.

Compliance export operation guide

1. Obtaining business qualifications: Before exporting sensitive goods, enterprises must first apply to the Ministry of Commerce of China for the “Sensitive Items and Technology Export Operation Registration Certificate”. Application materials include registration application form, copy of business license, import and export qualification certificate, etc.46. The certificate is valid for three years and needs to be renewed in advance4.
2. Export license application: For specific export transactions, enterprises also need to apply for export licenses, including export license application form, end-user and end-use certificate, contract copy, technical specifications and other documents6. The end-user certificate must be signed by the principal of the end-user and stamped with the company seal6.
3. Professional technical certification: Provide corresponding test reports and certifications according to the type of goods, such as battery products require MSDS and UN38.3 certification, food products require quarantine certificates and fumigation certificates, and cosmetics require MSDS and commodity inspection reports8910.
4. Compliance packaging and transportation: Sensitive goods require special packaging, such as leak-proof containers, demagnetization treatment, dangerous goods labels, etc. Choose a logistics company with sensitive goods transportation qualifications and purchase sufficient insurance89.
5. Utilization of rules of origin: The China-ASEAN Free Trade Area rules of origin allow qualified products to enjoy tariff preferences. Enterprises should be familiar with the origin standards and apply for the FORM E certificate and other origin certification documents17.
6. Re-export trade strategy: In the face of anti-dumping measures by Southeast Asian countries (such as Peru’s anti-dumping duties on Chinese tableware), enterprises can consider re-exporting through Southeast Asian countries such as Vietnam and Malaysia to change the origin identity to circumvent trade barriers3.

Risk warning and suggestions
Sensitive goods have a high export risk, and enterprises should pay special attention to the following matters:

It is strictly forbidden to conceal or misreport the nature of the goods, otherwise you may face goods seizure, fines or even criminal liability

Ensure that the documents are true and complete, especially the end-user and end-use certificates, to prevent the risk of technology leakage

Pay attention to changes in regulations in Southeast Asian countries, such as Indonesia’s new regulations on the import of electronic products in 2024

Establish a complete export compliance system, including product screening, customer review, document management, etc.

Cooperate with professional customs brokers and logistics companies to reduce operational risks467

With the in-depth implementation of the Regional Comprehensive Economic Partnership Agreement (RCEP), China’s trade with Southeast Asia will become closer. Enterprises should fully seize policy opportunities while strictly complying with sensitive goods export regulations to achieve safe, compliant and efficient cross-border trade.