As previously communicated, the Chinese government implemented new restrictions on the export of rare earth metals as of April 4th. These restrictions continue to significantly impact production timelines and international shipping, and we are now beginning to see the broader effects throughout the supply chain.
Over the past few weeks, we have been closely monitoring the situation and would like to share the latest updates on the status of orders nearing completion, completed, awaiting customs clearance and at port awaiting vessel departure date:
Products Requiring an End User Licence
All completed applications returned to Goudsmit UK have been submitted to the Chinese Chamber of Commerce, and we are currently awaiting progress updates. The estimated processing time remains approximately 45 days from date of submission. We will notify all affected customers as soon as we have received confirmation that the licences have been granted.
To mitigate future delays, we will now submit licence applications at the point of order. While current regulations require a new application for each order — even for repeat items — we will proceed on this basis until we receive formal guidance indicating otherwise. This approach should help absorb licensing time within the manufacturing lead time and facilitate quicker dispatch once goods are ready.
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.
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 minimizing 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.
