We have been notified that China is enforcing further export restrictions in early November, which include additional compounds found in rare earth magnets.
We have also seen an increasing number of licence rejections, which has resulted in stricter requirements for application documents and information from the Ministry of Commerce (MOFCOM).
To improve efficiency and avoid further rejections, we can share further detail on the export licence process, expected timelines, and new requirements that may affect your orders.
Products Requiring an End User Licence: New MOFCOM Requirements
The Ministry of Commerce (MOFCOM) is now implementing strict new requirements for licence application documents and information, and the approval process is becoming slower.
To improve efficiency and avoid rejections, we have been requested to provide additional, detailed documentation on the end-user company and the final application of the product, along with historical transaction records between Goudsmit UK and its customers.
Action Required: Supplementary Detailed Introduction
The new information below is being requested to support the application.
To simplify this process for you, the Goudsmit team will proactively complete as much of the new documents as possible using publicly available information from your company’s website.
We will then send the draft documents to you to add the missing information, supply the necessary images, and confirm the final content.
Mandatory Content for Supplementary Detailed Introduction
These documents will include, at minimum, the following information:
- Company Brief Introduction in text.
- Photos of Actual Production Scenes (to prove you have related facilities to produce the products, such as workshops, machines, workers, etc.).
- Main Products:
- Provide photos or 3D modelling graphs of main products (finished products with the magnets inside).
- Provide photos or 3D modelling graphs showing the magnet’s location in the product.
- Provide a brief introduction to explain where the product is used and its function (e.g. Product name, model no.) to prove it is for non-military use.
- Key Management Team Members (e.g., CEO, CTO, CFO).
- Main Customer Names.
Licence Application Process and Updated Timelines
Please see below a step-by-step overview of the procedure, incorporating the new documentation requirements:
- We receive the completed export licence documentation and the Supplementary Detailed Introduction document 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 (including historical transaction records, as requested by MOFCOM).
- 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 working day processing timeline commences.
While the guideline remains 45 working days, we must inform you that applications are now commonly exceeding this timeframe and unofficially we have been told that it could be 45-60 working days.
We now strongly recommend allowing at least 60 working days or longer, as the timeframe remains outside our direct control.
CRITICAL NOTE ON REVISIONS:
If an existing application is returned by MOFCOM for further information, the entire application lead time starts again upon resubmission. It could take a further +45 working days after acceptance of the new application with the additional information.
Alternative: Magnet Testing to Avoid Export Licence
For certain Neodymium magnets, we may be able to have the product tested to confirm it does not contain the restricted rare earth materials.
If the testing confirms this, the order can be dispatched without requiring an export licence application, significantly saving time in the order process and lead time for delivery.
We will advise you on the possibility of this testing at the time of quotation. Depending on the order volume and value, there may be an additional charge.
Supplementary Documents (If Applicable)
If your end customer’s products are for Chinese consumers or will be returned to China for assembly, please ask their cooperative company in China to provide documents such as:
• Import declaration sheet and contracts.
• A separate explanation of the import purpose.
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, causing delays of 3–4 weeks at port.
Accordingly, we strongly encourage all customers to factor in an additional lead time in their demand planning. Goudsmit UK will hold goods in stock until your required delivery date, should they clear earlier than expected.
Vessel Space and Freight Delays
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.
