Exemption Letter for ICT and wireless products, household appliances

EXTENDMAX - Manufacturers and importers usually experience problems in customs clearance process to export or import products to Vietnam because their products looks like product subjected to regulatory type approval or certification or its HS code trigger certain import permit or license requirement, It is time to ask us to obtain MIC Exemption Letter (No-Action Letter or LoNA) for wireless products, or MOIT Exemption Letter for energy efficiency, or NACIS Exemption Letter for civil cryptographic products, or AIS Exemption Letter for Cybersecurity products.

Why should you need Exemption Letter (LoNA)?

As analyzed above, although the list of products that require import licenses or conformity certification has been issued along with HS codes, the HS code is only the initial basis. To determine whether a product requires a civil cryptography license, needs to be conformity certified, must undergo minimum energy performance testing, or requires a cybersecurity safety license, in-depth specialized knowledge in information technology, telecommunications, operation modeling, and technical characteristics of the device is required. Therefore, products with HS codes from the mandatory list typically get detained and are not cleared until there is an official document from the competent state management agency responsible for that product confirming whether the product requires a license. Thus, preparing confirmation documents and product assessments in advance is an excellent solution to ensure smooth customs clearance, project timeline adherence, and reduced warehousing costs.

Typical issues encountered in practice for imports

There are information technology products with HS codes included in the list of civil cryptographic products for export and import under license. However, even if the HS is listed, only products with technical specifications matching the regulations in the Annex of Decree 58/2016/ND-CP are required to apply for a civil cryptography license for importation. A typical example is switching devices, where only high-security switches used for Core LAN networks, or Layer 3 switches, need to apply for a civil cryptography import license. Another typical example is that import-export companies often face difficulties when processing the import of mobile SIM cards and RFID cards (in the "smart card" group). So, do mobile SIMs and RFID cards require a civil cryptography import license? In reality, only certain special smart cards with embedded encryption are subject to the civil cryptography license, while ordinary mobile SIMs and RFID cards do not require such a license.

According to Circular 02/2024/TT-BTTTT of the Ministry of Information and Communications, WLAN devices of 2.4 GHz / 5 GHz with a radio transmission power under 60mW are not required to undergo mandatory conformity certification (apply for an import license). So, how can one prove that the radio transmission power is under 60mW? What documentation should be used to prove it is valid? Which issuing authority's document is accepted?

According to the regulations of the Ministry of Science and Technology in Decision No. 2711/QĐ-BKHCN, vacuum cleaners using batteries are not required to undergo conformity certification (EMC for household appliances). In practice, many shipments have been temporarily stopped to await clarification from businesses.

Which Authority to issue Exemption Letter?

To obtain exemption letter (LoNA) for information technology equipment, depending on their features, businesses can contact the following state management agencies for procedures to obtain confirmation documents:

• National Authority for Civil Cryptography Management and Product Inspection (NACIS): This agency is responsible for managing civil cryptography and issuing related licenses and confirmations.

• Telecommunications Department (VNTA): For wireless equipment that requires conformity certification, businesses should contact VNTa, which oversees telecommunications equipment compliance.

• Ministry of Industry and Trade (MOIT): For products that require energy labeling, the Ministry of Industry and Trade manages the energy labeling schemes.

• Authority of Information Security (AIS): For cybersecurity safety certifications, the Authority of Information Security is responsible for ensuring the security of network and information systems.

How long is the validity period of Exemption Letter?

Typically, the assessment document has a long-term validity, with no specified expiry date. Alternatively, the validity period of the assessment documents corresponds to the legal basis listed on the license, such as Circular No. 10/2022/TT-BTTTT, Decree No. 58/2016/ND-CP, Decision No. 14/2023/QD-TTg. If these regulations are no longer valid, or are supplemented or replaced by another regulatory document, then the assessment document will only have referential value.

How long does it take to obtain the Exemption Letter?

Typically, the state management agencies (listed above) will issue product assessment documents that do not require conformity certification or import licenses within a period of 1 - 2 weeks.

Why should you use ExtendMax's services?

As analyzed above, only documents issued by state management agencies are recognized by the Customs authorities. So, what can ExtendMax do for you?

• ExtendMax's engineers and lawyers research and analyze the technical characteristics of your products, providing preliminary assessments and advising whether the products fall under the requirements for licenses or conformity certification. We also analyze the overall list of products that your company plans to import, offering advice on quality management policies applicable to each item in the import goods list.

• ExtendMax provides professional services in the fields of wireless products, electronics, telecommunications, and information technology, thus capable of evaluating the requirements for all types of conformity certifications, and specialized IT licenses. We can advise businesses on the necessary procedures according to regulations and perspectives of all related state management agencies, including procedures for conformity certification, civil cryptography licenses, cybersecurity safety licenses, and VNEEP energy labeling...

• If the product does not require a license or conformity certification, we advise clients on preparing the documentation as quickly as possible.

• If the product requires a civil cryptography license or a cybersecurity safety license, ExtendMax consults and supports clients with the necessary procedures and conditions for obtaining these licenses.

• If the product requires conformity certification, ExtendMax advises and assists clients with state quality inspection registration, testing, conformity certification, and conformity declaration.
• If the product requires performance testing and energy labeling, ExtendMax advises and assists clients with the procedures for performance testing registration, performance testing, and energy labeling declaration.