Benlong New Materials (920807.BJ) disclosed on the evening of May 27 that the company received an administrative penalty decision from Foshan Customs on May 25, 2026. This was because, when exporting a batch of permanent magnets worth approximately USD 28,100 (equivalent to about RMB 201,800) on April 10, 2025, under general trade, it failed to present an export license to customs and was fined RMB 910,000. According to the announcement, the company declared the composition as neodymium-iron-boron (NdFeB), but customs verification found that the dysprosium (Dy) content in the batch reached 1.2%, classifying it as dysprosium-containing NdFeB permanent magnet material, which is a national export-controlled item, violating Article 19, Paragraph 1 of the Export Control Law. Benlong New Materials admitted that the violation was caused by the relevant personnel failing to promptly grasp the new regulations issued by the Ministry of Commerce and the General Administration of Customs on April 4, 2025—just six days before the export—which imposed export controls on seven types of medium and heavy rare earths, including samarium (Sm), gadolinium (Gd), terbium (Tb), and dysprosium (Dy). Rare earth permanent magnet components constitute Benlong New Materials’ third-largest business segment, with related revenue of approximately RMB 105 million, accounting for about 17.54% of total revenue.
This case is one of the first publicly disclosed penalties for corporate violations following China’s tightening of medium and heavy rare earth export controls in April 2025, making it a landmark case. Due to its high power density and superior efficiency, dysprosium is indispensable in drive motors for new energy vehicles and offshore wind turbines, and is also used as a control material in nuclear reactors, giving it significant strategic value. Foshan Customs applied a lighter penalty in accordance with regulations because Benlong New Materials admitted the fault, accepted the punishment, cooperated with the investigation, and provided guarantees. The company has initiated special training on export controls and a full-process compliance rectification and stated that it will prevent similar issues from recurring.