Navigating China Export Disruptions During the Trade War

Background

In early 2025, during heightened U.S. – China trade tensions, China temporarily restricted the export of rare earth materials in response to new U.S. tariffs. These sudden policy shifts triggered stricter customs reviews on outbound industrial goods, particularly those suspected of containing restricted alloys or trace metals.

One of our long-term customers had an urgent shipment of cast components flagged by Chinese customs, despite the parts containing no restricted materials. This is how we handled the following supply chain challenge.  

The Challenge

When customs authorities suspect a product may contain banned materials, the entire container is pulled for inspection, not just the crate or singular product line:

• Initial screening: Customs agents conduct non-destructive testing, usually radiographic imaging, on a sample set pulled from the shipment.

• Secondary inspection: If results are inconclusive, samples are sent to a specialized lab for destructive testing, delaying export by several additional weeks.

The client’s parts were caught in this process. Without intervention, they faced an indefinite delay, jeopardizing their downstream commitments.

However, the biggest issue we faced was figuring out who to talk to and how to get answers. China’s customs process is opaque as departments overlap, rules change without notice, and there are no clear channels for updates. For most companies, that means hearing their goods valued at hundreds of thousands of dollars are “stuck at port” with no explanation nor timeline. The local customs broker and forwarder, as selected by the customer, could not provide additional information. It takes real, on-the-ground experience to know how to navigate that system and get shipments moving again.  

Our Response

FormX’s team immediately mobilized both on the ground in China and from our Seattle headquarters. Leveraging our deep familiarity with international export procedures, we took a proactive and complaint approach:

• Direct coordination with customs authorities: We worked through the proper channels and relied on our long-standing relationships and proven track record of compliance with port agents to understand the inspection process and verify the part’s composition and certification history.  

• On-site representation: Our staff attended multiple inspection sessions over several weeks, ensuring all interactions and handling were conducted strictly in accordance with customs regulations while protecting the integrity of the parts.

• Real-time communication: We kept the customer informed at every step - sharing verified updates, timelines, and risk assessments - so they could plan production confidently and transparently.

• Supply chain continuity: Because we maintain strategic stock levels across key product lines, we were able to bridge the gap by initiating a new production batch while the original shipment remained under review, ensuring uninterrupted supply and full compliance with export controls.

The Outcome

After extensive testing, customs cleared the shipment with confirmation that no restricted materials were present. Thanks to our proactive measure:

• We shortened the potential delay from a few months to just a few weeks.

• The shipment passed all export reviews without penalty or loss to the customer.

• Parts damaged during inspection were immediately backfilled, as we maintain strategic stockpiles of our customers’ business-critical components to safeguard against unforeseen disruptions.

Expertise in global trade compliance enables us to navigate complex and evolving export controls with precision. On-the-ground responsiveness ensures faster resolution during unexpected disruptions. Customer-first planning and stock strategies protect clients from costly downtime and supply interruptions.

At FormX, this case reflects what defines our company: technical excellence, operational agility, and a relentless commitment to supporting our customers, especially when conditions are most unpredictable.  

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