On 28 Apr. 2021, the Ministry of Commerce published the “Guiding Opinions on Establishing the Internal Compliance Mechanism for Export Control by Export Operators of Dual-Use Items” (关于两用物项出口经营者建立出口管制内部合规机制的指导意见) (hereinafter referred to as the "2021 Guiding Opinions"), pushing export operators of dual-use items engaged in relevant acts under the Export Control Law and other subjects to establish an internal compliance mechanism for export control that is in line with their actual situation.
Having replaced the “Guiding Opinions on Establishing the Internal Export Control Mechanism by Export Operators of Dual-Use Items and Technologies” (关于两用物项和技术出口经营者建立内部出口控制机制的指导意见) (Announcement of the Ministry of Commerce No.69 [2007]), the 2021 Guiding Opinions further improves the basic elements of export operators’ internal compliance system and adds the annex “Guidelines for Internal Compliance of Dual-use Items Export Control” (the“Guidelines”,两用物项出口管制内部合规指南) to provide more detailed guidance for the compliance of export operators.
According to the Guidelines, a sound internal compliance system for export control comprises nine basic elements: drafting a policy statement, establishing an organizational structure, conducting a comprehensive risk assessment, formulating review procedures, developing emergency measures, providing education and training, improving compliance audits, retaining archival materials and preparing management manuals.
Cover Photo by Chastagner Thierry (https://unsplash.com/@chasta03) on Unsplash
Contributors: CJO Staff Contributors Team
