On December 2, 2020, China’s Ministry of Commerce (“MOFCOM”), State Cryptography Agency (“SCA”), and the General Administration of Customs (“Customs”) jointly issued three documents (here) related to import and export of commercial encryption items:
- List of Commercial Encryption Subject to Import Licensing Requirement (“Import List”);
- List of Commercial Encryption Subject to Export Control (“Export List”); and
- Procedural Rules on [Applications for] Licenses for the Import and Export of Commercial Encryption (“Procedural Rules”).
The issuance of these lists and procedural rules marks a key step forward implementing both the commercial encryption import and export framework established under the Encryption Law, which took effect on January 1, 2020, and the export control regime under the new Export Control Law, which took effect on December 1, 2020. (Our previous client alert on the Encryption Law can be found here, and our alert on the Export Control Law can be found here.) The consolidation of previously separate regulatory frameworks under the commercial encryption rules and export control rules could also show a future trend of implementing a more unified system to control the import and export of sensitive data and technologies to and from China.