Taiwan to restrict export of nitrocellulose to Russia, Belarus

Taipei, June 6 (CNA) Taiwan's Ministry of Economic Affairs (MOEA) said this week it has decided to expand the scope of restrictions on exports to Russia and Belarus by adding nitrocellulose to its list of controlled items, effective from June 14.

Nitrocellulose, a highly flammable thermoplastic resin, is an essential component in smokeless gunpowder and ammunition propellant and has already been regulated by the United States and the European Union, MOEA's International Trade Administration said in a statement Monday.

The inclusion of nitrocellulose comes after Taiwan's government on March 8 added 77 items to its list of machine tools prohibited from being exported to Russia and Belarus, in a bid to prevent the Russian military from using Taiwan's high-tech products in its war in Ukraine.

Currently, Taiwan already imposes export restrictions on nitrocellulose with a nitrogen concentration in excess of 12.2 percent, but nothing below that, the department said.

The decision to control exports of all nitrocellulose, effective from June 14, is necessary to strengthen and prevent "a regulatory loophole," it explained.

T.N.C. Industrial Co., which is based in Taoyuan, is the only company in Taiwan that produces nitrocellulose with a nitrogen concentration below 12.2 percent, a department official said.

Its thermoplastic resins are mainly shipped to the United States, Japan and Vietnam for use as adhesives in metal, wood and leather products, said the official, who spoke on condition of anonymity.

In addition, the fine imposed on first-time offenders for exporting restricted items to Russia and Belarus has been raised to NT$1 million (US$30.986), the MOEA said.

Meanwhile, the ministry called on businesses to comply with both domestic and international export control regulations, fulfill their due diligence, and avoid violations so as to protect their business reputation as well as their own rights and interests.

According to the Central Scientific Research Institute of Armament and Military Equipment of the Armed Forces of Ukraine (CNDIOVT), nitrocellulose with a nitrogen concentration of only 11.5 percent is sufficient to produce smokeless gunpowder.

The information was disclosed by the CNDIOVT after an inquiry by an European security research think tank in late April.