Imports of permanent magnets from China resume, 30 consignments cleared

India resumes imports of Chinese permanent magnets after DGFT certifies compliance with non-defence and non-US use, addressing trade tensions and supply concerns

Imports of rare earth or permanent magnets from China — used in cars, electric motors, magnetic sensors, and electronics such as speakers and headphones — have resumed after India began issuing certificates assuring compliance with riders.

 

Officials said the Directorate General of Foreign Trade (DGFT) has issued around 30 certificates confirming that these magnets will not be used for defence applications or re-exported to the US.

 

The move follows concerns raised by Indian importers over disruptions in the supply of permanent magnets due to China’s introduction of new export controls issued last month.

 

These controls affect seven rare earth elements and related magnets — materials critical to the production of electric vehicles (EVs), wind turbines, fighter jets, and advanced electronics.

 

In India’s case, China imposed an additional condition -- importer certificates alone were not sufficient — the Indian government also needed to issue or validate them. 

 

Last week, importers approached the DGFT, the ministries of external affairs, commerce, and heavy industries, and the Prime Minister’s Office.

 

 “After a meeting between the above-mentioned ministries, it was decided that DGFT will assure that importers are meeting the condition for domestic consumption and not for defence purposes or US re-export,” a senior government official said.

 

 “DGFT has begun issuing such certificates, especially in the case of individual importers, and it has so far cleared around 30 applications for permanent magnet imports from China,” the official added.

 

China’s move follows sweeping tariffs announced by US President Donald Trump. While the tariffs apply to all US trading partners, China has been especially targeted by the Trump administration’s new trade policy.

 

The export restrictions were imposed under China’s rights as a signatory to the international Non-Proliferation of Nuclear Weapons Treaty, which permits the regulation of "dual-use" items — goods that can be used for both civilian and military purposes.

 

As trade tensions escalated between China and the US, suppliers in China began restricting the export of these magnets.

 

Although rare earth elements are found in several countries, China dominates global supply, accounting for 61 per cent of production and 92 per cent of processing, according to the International Energy Agency.

 

Processing rare earth is expensive and environmentally hazardous due to radioactive by-products. As a result, many countries have scaled back or abandoned domestic production, making the world heavily reliant on China not just for raw supply, but also for refinement and distribution.

 

By tightening control over exports, Beijing is effectively determining who can access these strategic materials and under what conditions.