Compliance and Practical Strategies for Cross-Border Aviation Business under China's New Export Cont

Compliance and Practical Strategies for Cross-Border Aviation Business under China's New Export Control Regulations

中国出口管制新规下跨境航空业务的合规与实操建议

Implementation of the New Export Control Regulations

出口管制新规施行

On 1 December 2024, the Regulations of the People’s Republic of China on Export Control of Dual-Use Items (the “Regulations”) will come into effect. As the implementation guidance of the Export Control Law of the People’s Republic of China (the “Export Control Law”), the Regulations establish clear standards for managing the imports and exports of dual-use items—goods, technologies, and services with both civilian and military applications or the potential to enhance military capabilities—by exporters, relevant importers, service providers, and end-users.

2024年12月1日，《中华人民共和国两用物项出口管制条例》（以下称“《条例》”）将正式施行。作为《中华人民共和国出口管制法》（以下称“《出口管制法》”）的实施指引，该《条例》为两用物项（即既具有民事用途，又有军事用途或有助于提升军事潜力的货物、技术和服务）出口经营者、相关进口商、服务商及最终用户的进出口管理提供了明确规范。

Key Provisions of the Regulations

《条例》重点条款解读

Scope of Jurisdiction

管辖范围

The Regulations adopt the territorial and personal jurisdiction principles established under the Export Control Law, to regulate the transfer of dual-use items from China to overseas (territorial jurisdiction, export activities) and their provision by Chinese entities or individuals to foreign parties (personal jurisdiction, deemed export activities). Such transfers or provision encompass exports conducted through trade, donation, exhibition, cooperation, assistance, or other means.

《条例》遵循了《出口管制法》中属地和属人的管辖原则，旨在规范从中国境内向境外转移两用物项（属地、出口行为），以及中国主体向外国主体提供两用物项（属人、视同出口行为），包括两用物项的贸易性出口及对外赠送、展览、合作、援助和以其他方式进行的转移行为。

Moreover, the Regulations retain the authority of the Ministry of Commerce of China (MOFCOM) to oversee dual-use items containing Chinese-origin components, even when such items are transferred or supplied by foreign entities outside of China. Specifically, the scope of such regulated dual-use items includes dual-use items manufactured abroad that contain, integrate, or mix specific Chinese-origin dual-use components, dual-use items manufactured abroad using specific Chinese-origin technologies, and specific dual-use items originally sourced from China.

此外，《条例》保留了中国商务部对包含中国两用物项要素的境外两用物项的监管权力，即便该两用物项由境外主体在境外转移或提供。具体而言，可能受到监管的两用物项包括：含有、集成或混有原产于中国的特定两用物项在境外制造的两用物项，使用原产于中国的特定技术等两用物项在境外制造的两用物项，以及原产于中国的特定两用物项。

Export Licensing System

出口许可制度

In line with international regulatory practices, China implements a licensing system for the export of dual-use items. Upon the Regulations taking effect, the existing requirement for dual-use item export operator registration as a prerequisite for licensing will be abolished. Under the Regulations, exporters of dual-use items listed in the Export Control List or subject to temporary controls must apply for export licences from MOFCOM. These licences may be issued as either individual licences or general licences.

与国际通行的监管方式一致，中国对两用物项的出口实行许可制度。《条例》生效后，作为许可前置审批的两用物项出口经营者登记制度将不再适用。根据《条例》，出口两用物项出口管制清单所列的或被实施临时管制的两用物项时，出口经营者须向商务部申请许可，许可形式包括单项许可或通用许可。

Notably, Article 19 of the Regulations introduces an exemption for the outbound maintenance of civil aircraft spare parts and the export of spare parts and components. In such cases, exporters may obtain an export certificate by registering and submitting the required information prior to each export, eliminating the need for a separate licence.

特别地，《条例》第十九条对民用飞机零部件的出境维修、备品备件出口作了除外规定，即在前述情形下，允许出口经营者根据《条例》规定，在每次出口前以登记填报信息方式获得出口凭证后自行出口，无需另行申请出口许可。

End-User and End-Use Management

最终用户和最终用途管理

Another key significance of the Regulations is their refinement of the Export Control Law’s end-user and end-use management provisions, with detailed requirements for pre-export, in-process, and post-export compliance, including:

《条例》的另一重要实践意义在于，对《出口管制法》规定的最终用户和最终用途管理作出事前、事中和事后的细化要求。具体包括：

• Pre-export compliance: Exporters must submit end-user and end-use certification documents when applying for dual-use item export licences. End-users of dual-use items must undertake, as required by MOFCOM, not to alter the end-use or transfer the items to third parties without prior approval from MOFCOM.
• 事前管理：出口经营者在申请两用物项出口许可时，应提交最终用户和最终用途证明文件。两用物项的最终用户应按照商务部要求作出承诺，未经商务部允许，不得擅自改变两用物项的最终用途或向任何第三方转让。
• In-process compliance: If exporters or importers discover that the end-user or end-use of the dual-use items has changed or may change, or if they detect falsified, altered, invalid, or improperly obtained end-user and end-use certification documents, they must immediately suspend the export, report to MOFCOM, and co-operate with investigations.
• 事中管理：若出口经营者或进口商发现两用物项出口的最终用户或最终用途已经或可能发生改变，或者发现最终用户和最终用途证明文件存在伪造、变造、失效或以不正当手段获取的情形，应立即停止出口，向商务部报告并配合核查。
• Post-export compliance: During end-user and end-use verification by MOFCOM, if importers or end-users fail to co-operate within the required timeframe or fail to provide necessary documentation, rendering verification impossible, MOFCOM may place the relevant importer or end-user on a watch list. Exporters are prohibited from exporting dual-use items to entities on the watch list under general licences or export certificates.
• 事后管理：商务部在进行最终用户和最终用途核查时，若进口商、最终用户未在规定期限内配合核查、提供有关证明材料，导致无法核实两用物项最终用户、最终用途的，商务部可以将有关进口商、最终用户列入关注名单。被列入关注名单的进口商或最终用户，出口经营者不得以通用许可或出口凭证方式向其出口两用物项。

Control Lists for Importers and End-Users

进口商和最终用户管控名单

MOFCOM may, in accordance with the Regulations, place importers or end-users on a control list if they violate end-user or end-use management requirements, pose a potential threat to national security or interests, or use dual-use items for terrorist purposes. Entities on the control list may face measures from MOFCOM such as prohibitions, restrictions, or orders to terminate transactions involving relevant dual-use items

根据《条例》，商务部可以将符合以下情形之一的进口商或最终用户列入管控名单：违反最终用户或最终用途管理要求、可能危害国家安全和利益，或将两用物项用于恐怖主义目的。对于被列入管控名单的进口商或最终用户，商务部有权采取禁止、限制或责令中止其相关两用物项交易等措施。

Practical Strategies for Cross-Border Aviation Business

跨境航空业务的实操建议

In light of the new export control regulations for dual-use items in China, the following practical strategies are provided for cross-border aviation operations:

基于上述中国两用物项出口管制领域的新规要求，针对跨境航空业务的开展，请见以下实操建议：

Identify the Nature of the Items to Determine Applicability of the Regulations

识别标的物属性，判断其是否受《条例》规制

In cross-border transactions, particular attention should be paid to whether the items involved are classified as dual-use items under the Regulations. Aircraft, engines, and the significantly market-attentioned low-altitude flying vehicles (eg, drones and eVTOLs), which inherently possess dual-use characteristics, are of particular concern. Market participants should evaluate the applicability of the Regulations by referencing the Dual-Use Items Export Control List, temporary control policies, and the specific transaction structure. For example, in cross-border engine operating leases, it has been observed that foreign lessors may be required to sign end-user and end-use certificates when retrieving engines at the end of the lease term.

在跨境交易中，需特别关注标的物是否属于《条例》规制的两用物项。飞机、发动机及最近备受市场关注的低空飞行器（如无人机、eVTOL）均天然地具备军民两用属性。在相关交易中，市场参与者应根据《两用物项出口管制清单》和临时管制政策，结合具体交易架构，综合判断交易标的对《条例》的适用。例如，我们注意到在跨境发动机经营性租赁交易中境外出租人在租期届满取回境外制造商生产的发动机时会被要求配合签署最终用户和最终用途证明。

Due Diligence and Transaction Documentation

尽职调查与交易文本设计

In cross-border sales or leasing of aircraft/engines, if dual-use item export licences are involved, importers or end-users should conduct due diligence on domestic transaction parties (ie, exporters) at the outset, to confirm whether they hold valid general licences for dual-use items or meet the conditions for applying for individual licences. Licensing requirements should also be incorporated into the project timeline to ensure smooth progress, with necessary application materials prepared in advance.

在飞机/发动机跨境买卖或租赁项目中，若涉及两用物项出口许可，进口商或最终用户应在交易初期对境内交易主体（即出口经营者）进行资质尽职调查，确认其是否持有有效的两用物项通用许可或是否具备申请单项许可的条件。同时，应将相关许可审批纳入交易时间安排，合理规划项目进度，并配合提供必要的申请材料。

Exporters should verify whether the importer or end-user appears on the watch list or control list under the Regulations. In addition, transaction documents should accordingly include robust representations and warranties clauses, default clauses, and conditions precedent clauses. Specific provisions may include: requiring transaction counterparties to warrant that the relevant importers and end-users are not listed on export control lists, comply with applicable regulatory requirements, and promptly notify exporters and report to MOFCOM in the event of any legally reportable circumstances; requiring counterparties to provide end-user and end-use certification documents, as well as commitment documents from end-users to MOFCOM as mandated under the Regulations, with such documents serving as conditions precedent to the transaction.

对于出口经营者而言，其应核查进口商或最终用户是否被列入《条例》项下的“关注名单”或“管控名单”。此外，还应在交易文件中完善相关陈述与保证条款、违约条款及先决条件条款。具体包括：明确要求交易对手保证相关进口商及最终用户未被列入出口管制名单，符合相关监管要求，在发生法定报告情形时及时告知出口经营者并向商务部履行报告义务；要求交易对手配合出具最终用户和最终用途证明文件，以及最终用户根据《条例》应向商务部作出的承诺文件，同时将相关文件作为交易文件的先决条件。

Conclusion

总结

Under China’s new export control regulations, participants in cross-border aviation business should closely monitor the requirements of the Regulations and any subsequent implementation measures or guidelines. It is essential to thoroughly assess the regulatory status of transaction items, strictly fulfill compliance obligations, and meticulously plan transaction workflows to ensure smooth and compliant business operations in China.

在中国出口管制新规背景下，跨境航空业务的市场参与者需密切关注《条例》及后续配套办法或指引的要求，全面识别交易标的的管制属性，严格履行合规义务，合理安排交易流程，以确保业务顺利、合规开展。