Has China Banned the Export of Rare Earth Permanent Magnets?
Problem: People worry about China stopping exports of rare earth permanent magnets. Agitation: This could disrupt supply chains. Solution: Export controls exist, not a total ban.
China has not banned rare earth permanent magnets. Instead, it uses export controls. With the right license, magnets can still ship under strict rules.
Let’s walk through what export control means, how it works, and why your business can still get magnets from China—if you plan ahead.
What are the key differences between a ban and export control measures?
Concern: A ban blocks all trade. Fear: Your supply chain stops.
A ban means no exports at all. Export control means trade continues under rules and licensing.
A ban stops all exports. No conditions. Export controls limit exports with permits. A company can ship if it gets a license. That means trade still happens—just with checks.
Key contrasts:
| Feature | Ban | Export Control |
|---|---|---|
| Trade Status | No exports ever | Exports allowed under license |
| Admin Requirements | None, since no trade allowed | License, documentation, compliance |
| Predictability | Totally blocked | Predictable if you follow rules |
Export control is standard in global trade. It targets sensitive items while allowing normal trade. That’s the position China is taking.
What export control measures has China implemented on rare earth elements?
Alert: China now places seven rare earth elements under control.
China controls exports of Sm, Gd, Tb, Dy, Lu, Sc, and Y due to their military applications. Companies need licenses to ship magnets with these elements.
These elements—samarium (Sm), gadolinium (Gd), terbium (Tb), dysprosium (Dy), lutetium (Lu), scandium (Sc), and yttrium (Y)—are now restricted. They often go into high-performance NdFeB magnets. Their use in defense triggers stricter export rules.
China’s regulations require one license per order. Also, each order can contain at most two items of the same material (like N40SH magnets). These rules are clear and strict. They reflect China’s effort to balance trade and national security.
Are rare earth permanent magnets still allowed to be exported from China?
Hope: Even with controls, export is possible.
Yes. With a dual-use export license, you can export rare earth permanent magnets under Chinese law.
China defines certain goods as dual-use, meaning they have civilian and military applications. Rare earth permanent magnets fall into this list thanks to the seven restricted elements.
To export, companies must apply for a “dual-use export license” from the Ministry of Commerce. Once approved, shipments can proceed. Compliance with quantity limits and material rules remains essential.
I’ve guided clients through this process. Once they secured a license, they shipped on schedule. The license system works—as long as you plan ahead and submit correct documentation.
What are the legal procedures for exporting rare earth products from China?
Step-by-step: You need to get official permission before shipping.
You must apply to the Ministry of Commerce for a dual-use export license. Approval arrives within 45 working days.
Here’s how it works:
- Prepare your order. Identify the material (e.g. NdFeB N40SH) and quantities.
- One order, one license. You cannot group multiple orders under one license.
- Submit to Ministry of Commerce. Include all technical specs.
- Ministry reviews within 45 working days from submission.
- If approved, the license is valid for 6 months or until 12 shipments(Maxium). Whichever comes first.
- Ship under that order and license. Keep records in case of audit.
These steps give your operation certainty—if you plan order timing and processing timelines well, you can avoid delays or compliance issues.
Can the rare earth permanent magnet be shipped after deep processing (HS code changed)?
Question: Can you avoid controls with deep processing?
Yes. If you transform magnets into assemblies like rotors, motors, or speakers, they are exempt—even if they contain restricted elements.
China allows export of deep-processed items made from restricted magnets. That includes rotors, speakers, assembled motors, pot magnets with coatings, and more.
Once the magnet undergoes injection molding, assembly, or integration into a final product, the HS code changes. It no longer falls under the controlled category.
So even if the magnet contains restricted materials, it becomes exportable once embedded in a device. This is a legal and separate category. It supports more flexible supply chains. Companies can adapt their strategies—sending more semi-finished goods or components, not just raw magnets.
Can rare earth permanent magnets be shipped under a different HS Code?
Temptation: Can you hide them under another code?
No. Mislabeling HS codes risks high fines and credit rating downgrades from A to B. Export under correct codes only.
Changing HS codes without true product transformation is illegal. Customs can inspect shipments. If they find you misused HS codes to bypass controls, penalties apply:
- Fines up to multiples of declared value
- Downgrade in export credit rating (e.g., from A to B)
- Increased customs scrutiny
- Risk of denied export license in future
So, do not attempt to hide magnets under other HS codes. It is risky and unnecessary. Instead, follow the legal path with correct documentation and classification.
How do China’s rare earth export controls impact global supply chains?
Worry: Will this slow down global projects?
Export controls may tighten supply. But, with early planning and predictable lead times, global production can stay on track.
Export controls can cause delays. License approval takes up to 45 working days. License validity is limited. Companies must plan orders well in advance. That takes coordination:
- Forecast magnet needs early
- Submit license applications on time
- Plan shipment schedule within 6 months or 12 shipments
This adds steps to procurement. But it’s manageable. Businesses in Germany, Belgium, Italy, and other markets can continue operations smoothly if they adapt.
At PMS, we already manage this process. We guide clients through order timing, license submission, and shipping. With clear steps and communication, our clients keep production going.
Does PMS receive the export license already?
Statement: We’ve acted swiftly on the new rules.
Yes. PMS has obtained one dual-use license and submitted many more applications. More approvals are expected soon.
At PMS, we acted as soon as China announced controls. We applied for dual-use export licenses immediately. We received one approval for a full order already. Several other applications are in process.
We keep tracking each license’s status. We align shipments with the six-month or 12-shipment window. Buyers ordering magnets or assemblies from us can be confident. Our licensing process ensures uninterrupted supply—and full compliance.
Conclusion
China did not ban rare earth magnet exports. Export is allowed with license or deep processing. Plan ahead and supply continues.
