As previously communicated, the Chinese government implemented new restrictions on the export of rare earth metals as of April 4th.
As we are now beginning to receive more information and see some licences being granted, we can share further details on the export licence process, expected timelines, and new requirements that may affect orders.
1. Products Requiring an End User Licence
The process and timeline for export licences are now becoming clearer. Please see below a step-by-step overview of the procedure:
- We receive the completed export licence documentation back from our customer.
- The paperwork is sent by courier to our production facilities in China.
- Upon receipt, our production teams prepare and attach the additional paperwork required locally.
- Once all documentation has been compiled, it is submitted to the local Department of Commerce for review and checking.
- Following this review, the full application is submitted to the Ministry of Commerce for final approval.
- Once accepted by the Ministry, the official 45-day processing timeline commences.
While we have seen some licences approved more quickly than this, we continue to strongly recommend allowing at least 45 days or longer, as the timeframe remains outside our direct control.
A further update is that the freight method must now be specified at the time of application. The entire order must be shipped using this method and cannot be split.
If a split shipment is required — for example, part by air and part by sea — then two separate licences must be applied for at the outset to cover each shipment accordingly.
If the chosen freight method changes after submission, a renewal will be required, which we have been advised may take an additional 20 days.
To help manage this process as smoothly as possible, we will offer customers a choice at the point of order:
- We can submit the licence application immediately, specifying the agreed freight method at that time; or
- If there is any uncertainty regarding the freight method, we can hold off on submitting the application until the shipping method has been confirmed. Please note, however, that the official application timeline will only begin once the application has been submitted.
This approach is designed to minimise unexpected delays and provide greater flexibility where needed. However, if you choose this option, the entire order will be shipped by the confirmed freight method and cannot be split at that stage.
If a split shipment is required, this must be agreed upon at the time of order placement, as two separate orders must be placed with production to allow for two separate licence applications.
As previously communicated, each order — even for repeat or identical items — must have its own separate licence application under current regulations.
2. Magnets and Magnetic Assemblies (Not Requiring a Licence)
Despite initial indications that only random checks would be carried out, all magnets and magnetic assemblies have been subject to customs inspections in recent weeks. These checks have already caused delays of 3–4 weeks at port, and we now expect this to become the norm rather than the exception.
Given the increasing volume of goods awaiting inspection, we have been advised to plan for up to 8 weeks for customs clearance, whether via sea or air freight. Accordingly, we strongly encourage all customers to factor in an additional 8-week lead time in their demand planning.
GUK will hold goods in stock until your required delivery date, should they clear earlier than expected.
3. Vessel Space and Freight Delays
With goods backing up at customs, we are already beginning to see constraints in vessel and air cargo space, which may result in increased freight costs once goods are released.
We are working proactively with multiple freight partners to secure space and will continue to ship orders as cost-effectively and promptly as possible once clearances are granted.
We understand how disruptive and frustrating these delays are and want to assure you that our entire team at Goudsmit UK is committed to minimising the impact on your business.
We are in daily contact with suppliers, logistics partners, and government agencies, and will continue to provide you with timely updates as we receive them.
Thank you for your patience, understanding, and continued trust in Goudsmit UK while we navigate this evolving situation. Should you have any questions or require more detailed information regarding your specific order, please do not hesitate to contact us.
