Effective August 1: Restrictions on Exports of Gallium and Germanium-Related Items

According to China Tungsten Online, on July 4, 2023, the Ministry of Commerce and the General Administration of Customs issued an announcement on the export control of gallium and germanium related items. According to the announcement, there are 8 gallium related items, namely gallium metal (monomer), gallium nitride, gallium oxide, gallium phosphide, gallium arsenide, indium gallium arsenic, gallium selenide and gallium antimonide; 6 germanium related items, namely germanium metal, zoned germanium ingot, zinc phosphor germanium, germanium epitaxial growth substrate, germanium dioxide and germanium tetrachloride; the export control will be effective on August 1.

Both gallium and germanium are an important strategic resource, are a high-quality semiconductor material, are a rare metal element, widely used in electronics, optoelectronics, magnetism, optics, chemistry, biomedicine and other fields. Specifically, they can be used to make various transistors, computer chips, lasers, night vision goggles, diodes, electronic devices, solar cells, displays, etc.

According to China Tungsten Online, China is not only the world's largest gallium and germanium resource reserve country, but also the largest producer of these two resources. At present, the total world reserves of gallium are about 230,000 tons, and China's gallium metal reserves are the first in the world, accounting for about 80%-85% of the total reserves; in the past year, the global production of gallium is about 300 tons, among which China's production is as high as 290 tons, accounting for about 96.67% of the total production. According to the data of the United States Geological Survey (USGS), the global proven germanium resource reserves are about 8600 tons, among which, China's germanium reserves are 3500 tons, accounting for 41% of the world, ranking second; in terms of global production distribution, China supplies 71% of the world's germanium products, and is the world's largest producer and exporter of germanium.

Therefore, in order to safeguard national security and interests, China will implement export control on gallium and germanium related items from August 1, 2023.

According to the announcement, export operators should apply for export license in accordance with the relevant regulations, apply to the Ministry of Commerce through the provincial commercial department, fill out the application form for export of dual-use items and technologies and submit the following documents: the original export contract or agreement or a copy or scan of the original; technical description or test report of the items to be exported; end-user and end-use certificate; importer and end-user Briefing; the applicant's legal representative, the main business manager and the identity of the person in charge.

The Ministry of Commerce shall review the export application documents from the date of receipt, or in conjunction with the relevant departments for review, and will be made within the statutory time limit to grant or deny permission decision; national security has a significant impact on the export of the items listed in the announcement, the Ministry of Commerce in conjunction with the relevant departments to the State Council for approval.

After the examination and approval, the Ministry of Commerce shall issue export licenses for dual-use items and technologies. Export operators shall issue export licenses to the Customs, in accordance with the provisions of the Customs Law for customs procedures, and accept customs supervision. Customs shall issue the export license by the Ministry of Commerce for inspection and release procedures.

The announcement emphasizes that if the export operator exports without permission, exceeds the scope of permission or has other illegal circumstances, the Ministry of Commerce or the Customs and other departments shall impose administrative penalties in accordance with the relevant laws and regulations. Constitute a crime, be held criminally responsible.

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