On 31 December 2013, the State Encryption Management Bureau (SEMB) issued announcement No. 27 and adjusted the Catalogue for the Administration of Import of Encryption Products and Equipment Containing Encryption Technology, replacing the Catalogue for the Administration of Import of Encryption Products and Equipment Containing Encryption Technology (First Batch) annexed to SEMB notice No. 18 and effective on 1 January 2010.
The adjusted catalogue is effective from 1 January 2014.
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The adjusted catalogue revises the description of the tariff line 8543.70.9950 (see item No. 9 in graphic), which now reads: “Password machines, password cards (excluding smart cards for digital TV, Bluetooth modules, dongles used for intellectual property protection purpose).” In the original catalogue, it was described as: “Password machines (including telephone password machines, fax password machines, etc.) password cards.”
The adjusted catalogue now clearly excludes: smart cards for digital TV; Bluetooth modules; and dongles used for intellectual property protection purposes from the scope of commercial encryption products that are subject to an import permit requirement.
Prior to this adjustment, there have been quite a few cases where SEMB and/or Customs queried importers of security tokens with encryption, and detained some shipments at several ports of entry in China.
Password cards no longer subject to the import permit requirement under the adjusted catalogue may also no longer be subject to other encryption controls such as use, export, development, production and sale of commercial encryption products in China.
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