Last Friday (December 12),the Ministry of Commerce and the General Administration of Customs jointly issued a major announcement (No.56 of 2025),announcing that January 1,2026 Firstly,we implemented export license management for some steel products.

As soon as the news broke,my WeChat group immediately erupted in chaos.A long-time client of mine,Mr.Wang,who specializes in steel export in Tangshan,was so anxious that he could hardly contain himself: "I just received orders for the first quarter of next year,all of which involve hot-rolled coils and stainless steel pipes.Do we need to obtain the necessary certifications now?If we can’t get the certifications,will we be in breach of contract?"

This is not just a simple policy adjustment,but a major overhaul of the steel export industry.A major shakeout in the compliance sectorThis adjustment involves 300 HS codesIt covers the entire industrial chain from pig iron and scrap steel to hot-rolled coils,stainless steel pipes,and flange accessories.If you continue to operate according to the old methods of 2025,the first batch of goods after January 1 next year may get stuck at the port,facing risks such as failure to declare customs,breach of contract compensation,and even administrative penalties.

Today,we will discuss this latest report in light of the recent developments in the field of artificial intelligence.》，depth-analyze the export process,classification pitfalls,and compliance SOPs under the new regulations.

First,an in-depth analysis of the new regulations: Which products have been specifically mentioned in the guidelines?

The scope of products subject to license management this time is extremely broad,covering almost all primary and secondary steel products.According to the annex of the announcement,the affected categories are mainly concentrated in the following four major sectors:

1.Raw Materials and Primary Products

Output:

• Involvescoding:7201(pigiron),7203(spongyiron),7204(scrapsteel),7205(granularpowder),7206/7207(steelbillets).
• CoreLogic:Inordertoensurethesupplyofdomesticresources,thestaterestrictstheoutflowofprimaryresourceswithlowaddedvalueandhighenergyconsumption.Inparticular,Thescrapsteelofthe7204seriesandThesteelbilletsofthe7207seriesItisthetoppriorityofsupervision.

2.Flat Products (Sheets and Coils)

Output:

• Involvescoding:7208/7225(hot-rolledcoils),7209/7226(cold-rolledcoils),7210/7212(coatedplates).
• Disaster-strickenareas:Hot-rolledcoil(HRC)andCold-rolledcoil(CRC)Itisthecategorywiththelargestexportvolume.Thenewregulationsalmostincludeallhot-rolled,cold-rolled,andcoatedplatesofallwidths.
• Note:Eventhe"rolledplateswithpatterns"(7208100000)orthe"acid-washed"coilshavenotbeensparedeither.

3.Long products and profiles

Output:

• Involvescoding:7213/7227(wirerod),7214/7228(barrod),7216(angle/channel/boxsteel).
• Exceptions:Even7301(steelsheetpiles)and7302(railroadsteelrails)Thisconstructionmaterialhasalsobeenincluded.

4.Pipes and Fittings

Output:

• Involvescoding:7303-7306(seamlesspipes/weldedpipes),7307(pipefittingsandflanges).
• ImpactArea:Whetherit’sforoilandgasuseSeamlesspipe(7304series)It’sjustforordinarybuildingsWeldedpipe(7306series)ThenamesanddetailedaddressesoftheexporterandtheimporterStainlesssteelflange(7307210000)Alloftheserequirealicense.

II.A Practical Guide to Avoiding Pitfalls in the Customs Classification (HS Code) of Steel Products

In the era of license management,Classification error = Unlicensed export = Smuggling/violation of regulationsHere are the three most common classification misconceptions that are easy to fall into:

1.The microscopic battle between "alloys" and "non-alloys"

Output:

• Painpoints:Manycompanies,inordertoobtaintaxrebates,addtraceamountsofboron(Boron)orchromium(Chromium)tosteelanddeclareitas"alloysteel".
• Theimpactofthenewregulations:Inthecatalog,itisstatedthat.7225(alloysteelplate)and7208(non-alloysteelflatplate)Allofthemhaveimplementedlicensingmanagement.
• ClassificationRules:
  • Boron-containingsteel:Theboroncontent≥0.0008%canbeusedtoidentifyanalloysteel.
  • SiliconElectricalSteel:areclassifiedinto7225.11(Grain-oriented)or7225.19(Non-grain-oriented).
  • PitfallAvoidance:ItisnecessarytobaseitonMTC(QualityAssuranceCertificate)Thechemicalcompositiontableshouldbeclassifiedproperly.IftheMTCshowsthattheboroncontentisonly0.0005%,butitisdeclaredasalloysteel,itconstitutesafalsedeclarationofproductname.

2.The Boundary Between "Plate" and "Profile"

Output:

• Painpoints:Somespecial-shapedsteelplatesorplatesthathaveundergonesimpleprocessingarepronetobeingconfusedwitheachother.
• ClassificationRules:
  • Flat-rolledProducts:Thecross-sectionisrectangular,andithasnotundergoneanyfurtherprocessingexceptforrolling.
  • Shapes/Sections:Thecross-sectionalshapeiscomplex(suchasH-shapedandI-shaped).
  • Minefield:7216.61(Angles/shapesmadefromflat-rolledproducts)belongtocold-finishedprofiles,donotmisdeclareas7208hot-rolledplates.

3."Pipe" and "Hollow Profile"

Output:

• Painpoints:Manynon-standardpipes(suchassquareandrectangularpipes)arepronetobeingmisreported.
• ClassificationRules:
  • CircularCross-section:Classifiedunder7304(seamless)or7306(weldedpipes).
  • Non-circularcross-section:areclassifiedinto7306.61(Rectangular/Square)or7306.69(Othernon-circular).
  • Note:Thedirectoryclearlylistsout7306.610000(Otherweldedtubesofrectangularorsquarecross-section),whichmeanssquaretubeexportsalsorequirealicense.

III.The entire process of steel export in 2026

Facing the new regulations,enterprises must restructure their export processes.The following is a "five-step approach" for license management:

Step 1: Contract Pre-review — The most crucial step

Output:

• Action:WhensigningthecontractBeforesigningthecontract(SalesContract),firstcheckwhethertheHScodeisincludedintheCatalogue.
• Strategy:Ifit’sinthedirectory,Thecontractmustspecifythat"thecontractshalltakeeffectuponthesellerobtainingtheexportlicense".Topreventdisputesandclaimsarisingfromthefailuretoobtaincertificatesontime.

Step 2: Quota/Qualification Confirmation

Output:

• Action:Verifywhethertheenterpriseiseligibletoapplyforthelicense.Exportlicensesaretypicallysubjecttoeither"quotamanagement"or"qualificationfiling".
• Channel:Logintothe"UnifiedPlatform"oftheMinistryofCommerceorconsultthelocalcommercebureaustoconfirmthequotaallocationplanfornextyear(whichisusuallyannouncedattheendoftheyear).

Step 3: Apply for a license

Output:

• Time:Atleastbeforethegoodsareshipped10-15workingdaysApplication.
• Materials:
  • Exportcontract(originalscan)
  • BusinessLicense
  • Quotacertificatedocuments(ifapplicable)
• Note: The license is implemented One License per Batch or One License for Multiple Batches(Must be noted during application),validity is usually 6 months and cannot cross the calendar year.

Step 4: Declare the goods for customs

Output:

• Action:Whendeclaringthroughthesinglewindowsystem,thelicensenumberreceivedmustbefilledinthe"LicenseNumber"column.
• Verification:Thecustomssystemwillautomaticallycheckthenumberoflicensesonlineandcancelthemwhennecessary.Thenumberofdeclarationsisstrictlyprohibitedtoexceedthenumberoflicenses(Theallowedovershipmentrangeisusuallyextremelysmall,oreven0,subjecttothelatestannouncement).

Step 5: Customs Clearance and Tax Refund

Output:

• Action:Afterthegoodsleavethecountry,thetaxrebatecanbeprocessedbypresentingthetaxrebatesectionofthecustomsdeclarationform.
• Risk:Ifthegoodsaredetainedbythecustomsforunlicensedexport,notonlywillyounotbeabletogetataxrefund,butyouwillalsofaceafineofnolessthan30%ofthevalueofthegoods.

IV.Risk warnings from the perspective of experts

1.The end of the "pay-and-export" model

In the past,many small and medium-sized steel traders did not haverights,accustomed to finding trading companies to "buy export documents".

• ExpertWarning:Afterimplementinglicensemanagement,TheshippermustbeinaccordancewiththelicenseholderItwillbecompletelyimpossibletohandletheexportofinvoices,andanyforcedattemptstodosowillbeclassifiedassmuggling.

2.Beware of "Split Declaration"

In order to circumvent the license quantity restrictions,some enterprises want to split a large shipment into multiple small shipments,or intentionally declare it under similar codes outside the catalog (such as reporting hot-rolled plates as cold-rolled plates).

• ExpertWarning:Thecustoms’bigdatariskcontrolsystemhasspecialcontrolsfor"breakingbulkintosmallerpackages"and"misdeclaringproductnames".Steelproductsinvolvelargeweightsandhighvalues.Onceitisfoundthatthegoodsdonotmatchthedocumentsduringtheinspection,theywillbedirectlyhandedovertotheanti-smugglingdepartmentforfurtherinvestigation.

3.The "rush to export" trend at the end of 2025

The new regulations will come into effect on January 1,2026.This means that.December 31,2025 It’s the last "freedom window".

• Expertssuggest:ItisexpectedthattheportwillbeoverloadedandfreightrateswillsoarinlateDecember.Itisessentialtobookshippingspaceinadvancetoensurethatthegoodsare"releasedandloadedontotheship"beforethe31st.Iftheshippingscheduleisdelayedintothenextyear,evenifit’sjustonehourlate,youmustobtainanewpermitinordertoleavethecountry.

5.Quick Action List

There’s still time before the new regulations take effect.Please immediately carry out the following three actions:

Inventory Count: Export the HS codes of all pending orders,compare them one by one with the "2026 Catalogue",and filter out the affected orders.

Customer communication: Immediately notify foreign customers about the adjustment of China’s export policy,inform them that the delivery time for orders after January next year may be extended (to allow time for certificate processing),and renegotiate the price terms (changing from FOB to CIF may increase risks).

Qualification Application: Contact the local commercial authorities to inquire about the application requirements for steel export quotas in 2026,prepare the proof of export performance for the previous year,and strive to obtain the quotas in the first batch.