Announcement No. 79 of 2025 by the General Administration of Customs of China: Certain Steel Products Including Flanges to Be Subject to Export License Management, Effective January 1, 2026

Announcement No. 79 of 2025 by the General Administration of Customs of China: Certain Steel Products Including Flanges to Be Subject to Export License Management, Effective January 1, 2026

Announcement No. 79 of 2025 issued jointly by the Ministry of Commerce and the General Administration of Customs regulates all items under Customs Chapter 72 (Iron and Steel) and Chapter 73 (Articles of Iron or Steel). The corresponding English list, covering key categories such as pig iron, alloy steel, steel plates, pipes, and flanges and pipe fittings, is as follows:

Iron and Steel

|72011000.00|Non-alloy pig iron with a phosphorus content of 0.5% or less by weight| |72012000.00|Non-alloy pig iron containing by weight more than 0.5% of phosphorus| |72015000.10|Alloy pig iron| |72015000.90|Spiegeleisen| |72021100.00|Ferro-manganese containing by weight more than 2% of carbon| |72021900.00|Ferro-manganese containing by weight not more than 2% of carbon| |72022100.00|Silicon iron with silicon content greater than 55% by weight| |72022900.00|Other silicon iron with silicon content not exceeding 55%| |72023000.00|Ferro-silicon-manganese| |72024100.00|Ferro-chromium containing by weight more than 4% of carbon| |72024900.00|Ferro-chromium containing by weight not more than 4% of carbon| |72025000.00|Ferro-silicon-chromium| |72223000.01|Free-forged stainless steel bars, rods with rectangular (excluding square) cross-sections| |72223000.90|Other stainless steel bars, rods

Articles of Iron or Steel

|7301|Sheet piling of iron or steel, whether or not drilled, punched or made from assembled elements; welded angles, shapes and sections, of iron or steel| |7302|Railway or tramway track construction material of iron or steel (rails, check – rails, rack rails, switch blades, etc.)| |7303|Tubes, pipes and hollow profiles, of cast iron| |7304|Tubes, pipes and hollow profiles, seamless, of iron (other than cast iron) or steel| |73072900.00|Other tube or pipe fittings, of stainless steel| |73079900.00|Other tube or pipe fittings, of iron or steel, not elsewhere specified or included| |73269019.10|Steel fixtures specifically designed for the manufacture of aircraft/spacecraft structural components and their alloys for superplastic forming/diffusion bonding| |73269019.30|Steel fixtures specifically designed for solid-state connection of discs made of high-temperature alloys, titanium alloys for gas turbine engines|

Impact on Chinese Steel Manufacturers and Traders

Short-term increase in compliance and time costs:

Accelerating Industry Consolidation:

Customs clearance procedures have become more complex, driving up operational costs:

When exporting flange fittings, traders must first verify that manufacturers have provided complete documentation such as quality inspection certificates, then assist or independently apply for export licenses. The continuation of policies like the “one license per shipment” system means each batch of goods requires a separate licensing process. This not only increases the workload for document preparation and process coordination but may also cause delays due to unfamiliarity with procedures, leading to additional storage and logistics costs.

Higher collaboration thresholds and supply chain management pressures: Traders must select manufacturers capable of consistently providing compliant quality inspection certificates and smoothly cooperating with license applications. For previously partnered small or non-standardized manufacturers unable to meet the new regulations, traders must seek new partners, increasing supply chain adjustment costs. Additionally, traders must establish ledgers to track license processing progress and export status in real time, preventing cargo delays due to documentation issues.

Passive Adjustments to Negotiation and Pricing Power:

Impact on Foreign Importers

Extended procurement cycles and increased inventory management challenges:

To address this issue, importers must place orders earlier or increase safety stock levels. This not only ties up more capital but also requires optimizing inventory management systems to prevent cash flow disruptions caused by excess inventory.

Potential procurement cost increases: Additional compliance and operational costs incurred by domestic manufacturers and traders will likely be passed on to foreign importers through product pricing. Particularly in global flange and pipe fitting markets where Chinese products hold significant market share, importers may struggle to find alternative suppliers in the short term and will have to accept price hikes. This will increase their procurement costs and compress their profit margins.

Procurement channels will consolidate: To mitigate risks, foreign importers will increasingly favor collaborating with large-scale, reputable domestic flange pipe fitting manufacturers or traders. These enterprises demonstrate stronger adaptability to new regulations, ensuring stable supply and product quality. Importers previously reliant on small Chinese traders for low-cost flange fittings may face supplier elimination, forcing them to re-establish procurement channels. In the short term, they may encounter a reduced pool of available suppliers.