Case.
From November 30, 2020 to September 27, 2022, the party A and B Logistics *** declared 8 customs declarations, and declared 11,520 kg of imported antioxidants (triethanolamine mixture, composition: triethanolamine 5%, methanol 30%, benzotriazide 2% and water 63%) in a general manner. According to the Announcement of the Ministry of Commerce and the General Administration of Customs on the Administration of Dual-Use Items and Technologies Import and Export Licenses (Joint Issuance) Announcement No. 104 [2018]), the antioxidants declared to be imported by the parties are restricted by the state, and they must apply for the Import and Export License for Dual-Use Items and Technologies. When the party concerned declared to the customs, it failed to provide the "Import and Export License for Dual-Use Items and Technologies" required for the batch of goods. After calculating and verifying the above 8 antioxidants (triethanolamine mixture) in accordance with the law, the value of the goods involved in the case was 107538421 yuan. In view of the fact that the parties actively cooperated with the customs investigation after the incident and took the initiative to pay the case guarantee in full, in accordance with the provisions of Article 86 (3) of the Customs Law of the People's Republic of China and Article 14, Paragraph 1 and Article 16 of the Regulations of the People's Republic of China on the Implementation of Customs Administrative Penalties, it was decided to impose a lighter penalty on the party and impose a fine of RMB 53,800.
In this case, the enterprise concerned imported goods restricted by the state and needed to provide the "Import and Export License for Dual-Use Items and Technologies", but failed to provide the license at the time of declaration, so it was punished by the customs. So why was such an important certificate missing?
Then let's analyze, the imported trade name is "antioxidant", and the ingredients are: triethanolamine 5%, methanol 30%, benzotriazine 2% water 63%, is a mixture. Although the HS was not mentioned in the case, it is likely that after checking the tariff rules, the HS did not find the corresponding inspection and quarantine categories and customs supervision conditions, and the customs system did not prompt it, so it was omitted. But this mixture, we can not only look at the tariff, but also need to see whether its specific ingredient content is within the scope of control.
After checking the "Catalogue of Export Licenses for Dual-Use Items and Technologies", it was found that triethanolamine was in the catalogue.
In the "Catalogue of Import and Export Licenses for Dual-Use Items and Technologies", triethanolamine and its hydrochloride and mixtures are also included in it. According to Article 6 of the Administrative Measures for the Import and Export Licenses of Dual-Use Items and Technologies, import or export in any way, as well as transit, transshipment and transportation of dual-use items and technologies in the Administrative Catalogue, shall apply for import or export licenses for dual-use items and technologies. Therefore, if the ingredient contains triethanolamine as an antioxidant, it is necessary to apply for an import and export license for dual-use items.
Triethanolamine is tris(2-hydroxyethyl)amine with CAS number 102-71-6. It is widely used in industrial raw materials, daily chemical products and textile industries, but it also has another little-known role, that is, as a chemical as the main raw material for the production of chemical **. It is listed in the "Chemical Convention" because it can be used to make nitrogen mustard gas, and China is a party to the "Prohibition of Chemicals" Convention, so there is strict supervision of the chemical.
Article 57 of the Detailed Rules for the Implementation of the Regulations of the People's Republic of China on the Administration of Controlled Chemicals states that when the controlled chemicals in the List of Various Types of Controlled Chemicals and the List of New Varieties Included in the List of Controlled Chemicals in the Third Category are below a certain concentration threshold, they may be exempted from data declaration and import and export licenses. The relevant concentration threshold is formulated and adjusted by the Ministry of Industry and Information Technology according to the actual situation, but at present, the country has not added the content threshold of the ingredients in the "List of Various Controlled Chemicals" to the product, so at present, as long as the ingredients contain triethanolamine, no matter how much triethanolamine is added, it is strictly controlled, and it must be imported only after applying for an import license for dual-use items and technologies.
Note: According to the Administrative Measures for the Import and Export Licenses of Dual-Use Items and Technologies (Decree No. 29 of 2005 of the Ministry of Commerce and the General Administration of Customs), dual-use items and technologies shall apply for an import or export license for dual-use items and technologies if they enter and exit between overseas and bonded areas, export processing zones and other special customs supervision areas and bonded places;Dual-use items and technologies are not required to apply for import and export licenses for dual-use items and technologies that enter or exit between China and bonded areas under special customs supervision such as bonded zones and export processing zones, or between the above-mentioned customs supervision areas and bonded sites. A summary is to say: the first-line entry and exit needs to be **, and the second-line entry and exit area does not need **.
It should be noted that if the commodity code of the goods is not in the "Catalogue of Import Licenses for Dual-Use Items and Technologies", the system will not prompt the need to declare the import and export licenses for dual-use items and technologies. However, as long as the elements in the goods are in the catalogue, the Import and Export Licence for Dual-Use Items and Technologies must be provided. This situation is very easy to miss when making customs declarations, resulting in penalties for violations of laws and regulations. Remind all enterprises to standardize internal management, strictly audit, learn professional knowledge, and improve their sense of responsibility to avoid illegal acts.
*: Hedao Customs Consulting.