Export Control: Germanium-Related Items

On July 4, 2023, the Ministry of Commerce and the General Administration of Customs jointly issued a notice to implement export control on gallium and germanium related items. Among the germanium-related items whose exports are restricted are: germanium metal, zoned germanium ingots, zinc germanium phosphate, germanium epitaxial growth substrates, germanium dioxide and germanium tetrachloride.

Germanium (Ge) is an important strategic resource, is a grayish-white quasi-metal, lustrous, hard, chemically similar to the same family of tin and silicon, insoluble in water, has good semiconductor properties, such as electron mobility, hole mobility, etc., widely used in semiconductors, aerospace measurement and control, nuclear physics detection, fiber optic communications, infrared optics, solar cells, chemical catalysts and biomedical fields. Specifically, germanium can be used to make various transistors, rectifiers, fluorescent panels, high refractive index glasses, and catalysts for polymerization reactions.

Germanium is a rare and dilute metal element, which is widely distributed in nature, with a content of 7 parts per million in the earth's crust. Germanium ores that have been discovered include sulfur silver germanium ore (containing 5-7% germanium), germanium stone (containing 10% germanium), and sulfur copper iron germanium ore (containing 7% germanium). Germanium is also often interspersed in many lead ores, copper ores, iron ores, silver ores, and common coal.

According to Chinatungsten Online, the world's proven reserves of germanium holdings are about 8,600 metal tons, much less than the gold reserves (89,000 tons). From the current situation, China is the second largest germanium resource country in the world, holding reserves of about 3,500 metal tons, while the prospective reserves reach about 9,600 metal tons, mainly distributed in Guangdong, Yunnan, Inner Mongolia, Jilin, Shanxi, Guangxi, Guizhou and other provinces.

In order to protect the environment and resources, safeguard national interests, support the development of high-tech industries and promote the development of domestic industries, China will restrict the export of germanium-related items from August 1.

Announcement on the implementation of export control on germanium related items:

According to the "Export Control Law of the People's Republic of China", "Foreign Trade Law of the People's Republic of China" and "Customs Law of the People's Republic of China" relevant provisions, in order to safeguard national security and interests, approved by the State Council, decided to implement export control on gallium and germanium related items. The relevant matters are announced as follows:

I. Germanium-related items that may not be exported without permission:

1. Germanium metal (monomers, including but not limited to crystals, powders, scraps and other forms) (reference customs commodity number: 8112921010, 8112921090, 8112991000).

2. District fusion germanium ingots (Reference Customs Commodity No.: 8112921090)

3. Zinc phosphorus germanium (including but not limited to crystals, powder, scrap and other forms) (Reference Customs Commodity No.: 2853904040, 3818009008, 3825690008)

4. Germanium epitaxial growth substrate (Reference Customs Commodity No.: 8112921090)

5. Germanium dioxide (Ref. Customs Commodity No.: 2825600002, 3818009009, 3825690009)

6. Germanium tetrachloride (Reference Customs Commodity No.: 2827399001, 3818009010, 3825690010).

Second, the export operator shall, in accordance with the relevant provisions of the export licensing procedures, apply to the Ministry of Commerce through the competent provincial commercial departments, fill in the application form for export of dual-use items and technologies and submit the following documents:

(A) the original export contract or agreement or a copy or scan of the same with the original;

(B) technical description or test report of the items to be exported

(C) the end-user and end-use certificate;

(D) the importer and end-user profile;

(E) the applicant's legal representative, the main business manager and the identity of the person in charge.

Third, the Ministry of Commerce shall review the export application documents from the date of receipt, or in conjunction with the relevant departments to review, and within the statutory time limit to make the decision to grant or deny permission.

The export of items listed in this announcement has a significant impact on national security, the Ministry of Commerce in conjunction with the relevant departments to the State Council for approval.

Fourth, after review and approval, the Ministry of Commerce issued dual-use items and technology export licenses (hereinafter referred to as export licenses).

Fifth, the export license application and issuance procedures, special circumstances, documents and data retention period, in accordance with the Ministry of Commerce, General Administration of Customs Order No. 29 of 2005 ("dual-use items and technology import and export license management") the relevant provisions of the implementation.

Sixth, the export operator shall issue an export license to the Customs, in accordance with the "Customs Law of the People's Republic of China" for customs procedures, and accept customs supervision. Customs with the export license issued by the Ministry of Commerce for inspection and release procedures.

Seven, export operators export without permission, export beyond the scope of permission or other illegal circumstances, by the Ministry of Commerce or Customs and other departments in accordance with relevant laws and regulations shall be given administrative penalties. Constitute a crime, be held criminally responsible.

Eight, this announcement shall be formally implemented from August 1, 2023.

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