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Magnet export anxious, looking forward to detailed rules being introduced

Since April 4, 2025, the Ministry of Commerce and the General Administration of Customs jointly issued Announcement No. 18 of 2025, deciding to implement export control on some medium and heavy rare earth-related items, the majority of import and export enterprises, especially those engaged in the export of magnets (including magnets, etc.), were plunged into a great deal of anxiety.


After the release of the announcement, many enterprises in the declaration to the Customs containing rare earth magnets export business, encountered the reality of “can be exported” trouble, the Customs system of business consulting volume suddenly surged. We might as well look through the following several real cases of enterprises to see how the Customs suggests to respond under the current policy.


Case 1: Are Magnets Exported to Malaysia Restricted?


Enterprise Inquiry: Magnets with the composition of 65% Fe, 28% Nd, 1% B, 0.1% Al, 5.9% Pr, cylindrical shape with height of 15mm, to be exported to Malaysia, with the declaration code of 8505111000, is it a controlled item? Is it necessary to apply for an export license?


Reply from Xiamen Customs: After investigation, the elements contained in this product do not involve samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium, which are the seven types of medium and heavy rare earth elements listed in the announcement, so it is not within the scope of export control and does not need to apply for a license.


Case 2: Can permanent magnets with established processing books be exported as usual?


Inquiry from a company: Our company set up an export processing book in December 2024 for exporting permanent magnets to South Korea to be processed into rotors and then reimported. The composition of the magnets contains 31% neodymium, 0.5% dysprosium and 0.7% terbium. Can such products still be processed according to the original plan?


Nanjing Customs replied: Since it is impossible to confirm the specific cargo information, it is recommended to call the Customs Hotline 12360 or contact the Customs of the declared place for detailed consultation.


Case 3: Freight forwarder refuses to take cargo without restricted elements still affected?


Enterprise counseling: Our company intends to export magnets/ring holders to many countries (Hungary, Germany, the United States, India), the composition of which is NdFeB plus plastic and does not contain any restricted elements. We have already provided MSDS and description of the ingredients, but the forwarder refused to take the goods because of the fear that the container is subject to inspection. Is it possible to have normal customs clearance?


Reply from Xiamen Customs: If the product does not contain any restricted elements listed in the announcement, it is not a controlled item. It is recommended that enterprises attach the description of the ingredients and relevant test reports to the declaration, which will help to improve the efficiency of port inspection and verification.


Case 4: What to do with motor rotors exported with small amounts of controlled elements?

Enterprise inquiry: The rotor of the electric motor exported by our company contains gadolinium 0.15% and dysprosium 2.5%, is it necessary to apply for a license?


Nanjing Customs reply: Due to the inability to obtain detailed information about the goods, it is recommended to call 12360 directly or contact the customs office where the goods are declared for further confirmation.


From the above four cases, most enterprises have a clear understanding of Circular No. 18: if the products contain listed medium and heavy rare earth elements (such as samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium), they need to apply for a dual-use export license; if they don't, they can be exported normally. Customs also basically holds this principle in its reply, and suggests that a detailed description of the ingredients be attached to assist in the declaration.


However, the reality is far more complicated than the policy. Enterprises are still frequently blocked in the actual operation, even if the MSDS and test reports are provided, they may not be recognized and encountered the process of “withholding goods - sampling - sent for inspection”, and this process due to the proliferation of testing and the long cycle, the enterprise has to bear the double pressure of time and money. The double pressure of time and money.


Related magnet export articles;

China's three rounds of rare earth export control measures and their impacts

China imposes export controls on some medium and heavy rare earths

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