Currently, there are two main approaches for exporting rare earth permanent magnet materials from China:
1. Applying for a “Dual-Use Items” export license from the Ministry of Commerce
2. Adopting a heavy-rare-earth-free manufacturing solution
Below is a brief comparison of the two methods.
1. Applying for a “Dual-Use Items” Export License
This is generally the most secure approach. Once approved, magnets can be exported regardless of whether they contain restricted elements such as Dy, Tb, Sm, etc. However, there are some notable limitations:
- Limited applicability – Not all countries are eligible to apply for a “Dual-Use Items” license (e.g., India is excluded).
- High information disclosure requirements – The application process requires submitting company information, purchase contracts, and signatures from the company owner along with the official company seal. This can be difficult for customers in Europe and the U.S., where information security and confidentiality are critical.
- Uncertain approval outcome – Submitting an application does not guarantee approval. The Ministry’s decision may be influenced by industry background or customer type. For example, we have experienced cases where exports to European companies with shipbuilding backgrounds were never approved or were rejected without a clear explanation.
2. Heavy-Rare-Earth-Free Manufacturing Solution
This method involves upgrading production formulas to eliminate restricted heavy rare earth elements, thus avoiding the need for a “Dual-Use Items” application. However, it also comes with challenges:
- Formula vs. testing discrepancy – Even if the formula is designed without heavy rare earths, trace amounts may still appear in the final product due to cross-contamination during production.
- Application limitations – High-temperature grades (such as UH, EH, AH) currently cannot be achieved without heavy rare earths.
- Export regulations and inspection – According to current regulations, magnets can be exported if the total content of the seven restricted elements is below 0.1%. However, customs will check each shipment to ensure the declared composition matches the test report. The inspection process usually takes around three weeks. Due to mandatory inspection and dedicated shipping, only standard air freight is viable, which results in higher transportation costs.
- Ideal scenario – In rare cases where no contamination occurs, the product can test 100% free of restricted elements, making the export process smoother and faster than the sub-0.1% case.
Since China’s rare earth export control measures have been in place for nearly six months, and there is no sign of relaxation in the near term, both manufacturers and customers must prepare for long-term compliance.
At Oceanic Magnet, we are committed to developing advanced heavy-rare-earth-free formulas to help our customers avoid the hassle of “Dual-Use Items” applications. We sincerely appreciate your cooperation under the current policy environment.
Your satisfaction is our greatest motivation to keep moving forward.