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 (the “Adjusted Catalogue”), 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 January 1, 2010 (the “Original Catalogue”). The new Catalogue is effective from January 1, 2014.
The Adjusted Catalogue revises the description of the tariff line 8543.70.9950 (see item No. 9 below) 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 covers the following products:
Electrostatic-photosensitive multifunctional integrated encrypted fax machines (with automatic data processing equipment or network connection).
Other multifunctional integrated encrypted fax machines (machines with printing, copying or both functions).
Other encrypted fax machines (with automatic data processing equipment or network connection).
Cordless encrypted telephones.
Other encrypted telephones.
Optical communication encrypted routers.
Non-optical communication encrypted ethernet exchanges.
Non-optical communication encrypted routers.
Password machines, password cards (excluding smart cards for digital TV, Bluetooth modules, dongles used for intellectual property protection purpose).
Suite 3401, China World Office 2
China World Trade Centre
1 Jianguomenwai Dajie
Beijing 100004, PRC
Tel: +86 10 6535 3800
Fax: +86 10 6505 2309
23rd Floor, One Pacific Place
88 Queensway, Hong Kong
14th Floor, Hutchison House
10 Harcourt Road
Central, Hong Kong
Tel: +852 2846 1888
Fax: +852 2845 0476
Unit 1601, Jin Mao Tower
88 Century Avenue, Pudong
Shanghai 200121, PRC
Tel: +86 21 6105 8558
Fax: +86 21 5047 0020
2 Baker & McKenzie | January 2014
The Adjusted Catalogue now clearly excludes: (a) smart cards for digital TV, (b) Bluetooth modules, and (c) dongles used for intellectual property protection purposes from the scope of commercial encryption products which 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.
Should you wish to obtain further information or want to discuss any issues raised in this alert with us, please contact:
+86 10 6535 3868
+852 2846 2154
+852 2846 1943
This publication has been prepared for clients and professional associates of Baker & McKenzie. Whilst every effort has been made to ensure accuracy, this publication is not an exhaustive analysis of the area of law discussed. Baker & McKenzie cannot accept responsibility for any loss incurred by any person acting or refraining from action as a result of the material in this publication. If you require any advice concerning individual problems or other expert assistance, we recommend that you consult a competent professional adviser.
If you wish to update, add to or delete your contact details from our mailing list or if you have any problem opening the attachment and would like to receive a hard copy of the publication, please contact
Trudy Tse at email: email@example.com or email: firstname.lastname@example.org.
© 2014 Baker & McKenzie. All rights reserved. Baker & McKenzie International is a Swiss Verein with member law firms around the world. In accordance with the common terminology used in professional service organizations, reference to a “partner” means a person who is a partner, or equivalent, in such a law firm. Similarly, reference to an “office” means an office of any such law firm.
This may qualify as “Attorney Advertising” requiring notice in some jurisdictions. Prior results do not guarantee a similar outcome.