On December 10, 2009, the State Encryption Management Bureau ("
SEMB") and the General Administration of Customs ("
GAC") jointly issued
Notice No. 18 and published the
Catalogue for the Administration of Import of Encryption Products and Equipment Containing Encryption Technology (First Batch) (the "
Catalogue"). The Catalogue is effective from January 1, 2010.
The import of products which fall under the
Catalogue or which the importer knows or ought to know contain encryption technology will require a "Permit for the Import of Encryption Products and Equipment Containing Encryption Technology" (密码产品和含有密码技术设备进口许可证, the "
Import Permit"). The Import Permit is issued by SEMB or its local counterparts.
1. Covered Products
Items contained in the Catalogue are identified by their Chinese tariff numbers and are as follows:
No.
|
PRC Tariff Numbers
|
Product Description[1]
|
1
|
8443311010
|
Electrostatic-sensitive multifunctional integrated encrypting fax machines (with automatic data processing equipment or network connection).
|
2
|
8443319020
|
Other multifunctional integrated encrypting fax machines (machines with the function of printing, copying or both).
|
3
|
8443329010
|
Fax machines (can be connected to automatic data processing facilities of internet).
|
4
|
8517180010
|
Cordless encrypting telephones.
|
5
|
8517180010
|
Other encrypting telephones.
|
6
|
8517622910
|
Optical communication encryption routers.
|
7
|
8517623210
|
Non-optical communication encrypted exchanges.
|
8
|
8517623610
|
Non-optical communication encrypting routers.
|
9
|
8543709950
|
Password machines (including telephone password machines, fax password machines etc.), password cards.
|
The
Catalogue may be revised by the SEMB and GAC from time to time.
In addition,
Notice No. 18 provides that even if a product is not listed in the
Catalogue, if the importer knows or ought to know that the imported product contains encryption technology, the importer should also apply for an Import Permit and submit this to Customs.
2. Exemptions
Notice No. 18 provides that, the requirement for the Import Permit will be exempted under the following circumstances:
- goods listed in the Catalogue that are imported for contract manufacturing and subsequently exported;
- Customs supervised goods that are temporarily imported and then exported; and
- goods listed in the Catalogue that are imported from overseas into bonded zones, export processing zones, and other Customs supervised zones and bonded Customs supervised premises; or which are transported between Customs supervised zones and bonded Customs supervised premises.
It should be noted that when those goods are transported from Customs supervised zones and bonded Customs supervised premises into China's Customs territory, the Import Permit will be required.
3. Penalties
Notice No. 18 provides that if an Import Permit is required but not provided at the import stage, Customs will deal with the case according to relevant regulations. However,
Notice No. 18 itself does not contain provisions on the specific penalties for failing to obtain the required Import Permit.
[1]Based on the English descriptions in the 2009 PRC Tariff Book published by the Economic Daily Press.