Importation of Encryption Products - New OSCCA/GAC joint notice

The Office of the State Commercial Cypher Administration (OSCCA) published a new regulation requiring a license from OSCCA for the importation of encryption products. Although the announcement provides a list of products requiring such a license, the announcement also suggests that importer may still need a license for any encryption products even if it is not the list. The odd thing about this that another OSCCA communication actually prohibits foreign encryption products from being imported and sold in China in the first place - and the new draft does not make any statements (none I found, at least) as to whether this new regulation would replace the old prohibition, amend it, or - my guess - ignore it and add some nice contradictory element. Some China-based stakeholders (me amongst them) have compiled questions directed at OSCCA that will be discussed during a meeting with the EU Chamber. More to come, I am sure...

The Bulletin is dated Dec. 10, 2009, but was only posted to the Website Dec. 16, 2009. It can be found at http://www.oscca.gov.cn/Doc/17/News_1176.htm. (Office of State Commercial Cypher Administration Bulletin (No.18))

Based on "the Regulation on the Administration of Commercial Codes", here publish the first "Catalogue of encryption products and equipment with encryption technology subject to import administration". (See list, hereafter refer as "the catalogue")

I. All items in the catalogue subject to the import license administration of encrypted products and equipment with encryption technology. (see appendix 2 sample of the import license) Importer should have the license when clearing with customs for the products in the catalogue.

II. Import license can be exempt for the following situation:

1. Import for processing trade and for re-export;

2. Under customs detain, temporary import for re-export;

3. Items in the catalogue in and out of the bonded area, export processing zone and other special zone under customs supervision from overseas.

III. Import license should be inspected upon out into Chinese territory.

IV. Importers whether they aware of not should apply to OSCCA for licenses for products with encryption even when they are not listed in the catalogue. And notify the Customs when import such items.

V. Customs will handle those listed products without licenses according to the relevant rules and regulations.

The list will take effect on Jan. 1^st, 2010. OSCCA and GAC will readjust the catalogue when they deem it is necessary and announce it publicly.

Appendix 1. catalogue

Appendix 2. sample of the import license

OSCCA//GAC

Dec. 10, 2009

附件1：list of 9 items for import with HS codes (fax machines, phones, routers, and code machine/card ) subject for import permit.

密码产品和含有密码技术的设备进口管理目录（第一批）

序号 海关商品编号 商品名称 计量单位

The English translation is enclosed within square brackets. The translation is from the 2009 Customs Import and Export Tariff of the PRC compiled by the Editorial Department of the Customs Import and Export Tariff of the PRC.

1 8443311010 静电感光式多功能一体加密传真机（可与自动数据处理设备或网络连接） 台 [Electrostatic – sensitive multifunctional integrated encrypting fax machines (with automatic data processing equipment or network connection)]

2 8443319020 其他多功能一体加密传真机（兼有打印、复印中一种及以上功能的机器） 台 [Other multifunctional integrated encrypting fax machines (machines with the function of printing, copying or both.)]

3 8443329010 其他加密传真机（可与自动数据处理设备或网络连接） 台 [Fax machines (can be commected to automatic data processing facilities or internet)

4 8517110010 无绳加密电话机 台 [Cordless encrypting telephone]

5 8517180010 其他加密电话机 台 [Other encrypting telephones]

6 8517622910 光通讯加密路由器 台 [Optical communication encrypting routers]

7 8517623210 非光通讯加密以太网络交换机 台 [Non-optical communication encrypted exchanges]

8 8517623610 非光通讯加密路由器 台 [Non-optical communication encrypting routers]

9 8543709950 密码机（包括电话密码机、传真密码机等）、密码卡 台 [Password machines, password cards, telephone password machines, fax password machines]