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In-depth guidance on Civil Cryptography Product dealer license and import permit

  03/03/2020

During the procedure of consulting and helping importers, dealer to apply for civil cryptography products (CCP) trading license (CCP trading license or CCP dealer license) CCP import and export permit, ExtendMax constantly receives many similar questions from different customers. Therefore, we are writing this article to guide practical cases and to address common miss-understandings:

First of all, we need to understand the important definitions and regulations on CCP specified in the Law on Network Information Security No. 86/2015/QH13 and Decree 58/2016/ND-CP (amended and supplemented by the Decree). No. 53/2018/ND-CP):

1. What are the conditions for trading in civil cryptographic products (in Vietnam)?

Enterprises must have a license for trading the civil cryptographic products and services before trading civil cryptographic products and services specified by Decree 58/2016/ND-CP (amended and supplemented by the Decree). No. 53/2018/ND-CP).

2. How does Decree 58/2016 / ND-CP (amended and supplemented by Decree No. 53/2018 / ND-CP) stipulate the product list?

Decree 58/2016 / ND-CP regulates 02 lists of products and 01 list of civil cryptographic services:

(1) Appendix I: Section I - List of civil cryptography products

(2) Appendix I: Section II - List of civil cryptographic services

(3) Appendix II: List of civil cryptography products exported and imported under permit

 

Answers to frequently asked questions - Q&A:

Q1: Our company purchases CCP through another domestic company to distribute, trade, and not import directly from abroad. So, our company has to apply for a business license (GPKD) MMDS products or not?

A1: In case the company does not import products but buys from another importer the products listed in Appendix I: I - List of civil cryptography products, your Company must still have an CCP dealer license.

In fact, there are many CCP on the list specified in Appendix I but not on the list specified in Appendix II, so many companies have violated the regulations (unintentionally) when doing business of trading CCP without CCP dealer license.

 

Q2: Our company imports CCP for internal use within the company, not for business purposes. Do we have to apply for CCP dealer license?

A2: Pursuant to the Law on Network Information Security No. 86/2015/QH13 and Decree 58/2016/ND-CP:

- Enterprises importing CCP specified in the list of CCP exported or imported under permit, must have import import permit.

- Enterprises are granted the CCP import permit only when they meet the specified conditions in which having the CCP dealer license is a mandatory condition.

Therefore, in the case of CCP your company importing is only specified in Appendix I of Decree 58/2016/ND-CP (amended and supplemented by Decree No. 53/2018/ND-CP), your company does not have to apply for CCP trading license and CCP import permit.

In the case of CCP your company importing is specified in Appendix II of Decree 58/2016/ND-CP (the list of CCP subjected to export and import permit), your company must still apply for CCP trading license to be eligible to apply for CCP import permit

 

Q3: Our company sells products that are security software which has civil cryptography function and installed for customers remotely (via cloud), so does our company have to apply for CCP dealer license and CCP import permit?

A3: The software product with civil cryptography function is a product on the list of CCP, so your company must to have the CCP dealer license.

- In case your company sells software with civil cryptography features to customers via cloud, your company does not have to apply for CCP import permit.

- In case your company sells software with civil cryptography features contained in an hard drive, smart card, or computer .. and product description, HS Code coincides with the listed product in Annex II of Decree 58/2016, the Company needs to apply for CCP import permit as prescribed

 

Q4: How do I determine if a product has a civil cryptographic feature and need to apply for an CCP dealer license?

A4: All civil cryptographic features are listed in Appendix I of Decree No. 58/2016/ND-CP. In case you are not able to figure out, you can send an email request to the following addresses for expert help:

1. ExtendMax's consulting and business support portal

- Email: consultant@extendmax.vn

- Tel: +84 24 6666 3088

2. Portal of National Agency of Cryptography and Information Security (NACIS) - Government Cipher Committee

- Email: info@nacis.gov.vn

- Phone: +84 24 3775.6896

 

Q5: We have contacted the web portal of the NACIS and it was confirmed that our importing products are not CCP, however, the Customs has requested a written letter of confirmation issued by the NACIS, so what do we do?

A5: Previously, the NACIS used to issue written letter of confirmation, but since 2018, the NACIS only confirmed via email (via the web portal). In that case, your company can print the reply email, confirmation of the NACIS to present to Customs officers for clearance.

 

Q6: We have contacted the NACIS’s portal have been verified that the importing product is a civil cryptography product. So do we have to apply for CCP import permit to get clearance?

A6: Usually enterprises only send product technical documents to the NACIS in order to get confirmationwhether the product is a CCP or not. In that case, you need to determine whether the importing CCP falls into any of the following two cases:

Case 1: Civil cryptography products which listed on Appendix II of Decree 58/2016/ND-CP (both HS Code and product description) → Your company needs to apply for MMDS and GPNK MMDS to import

Case 2: Civil cryptography products are included in Appendix I but not listed on Appendix II of Decree 58/2016 / ND-CP (do not match the HS Code or do not match the product description) → Your company don’t need to apply for the CCP import permit, but still need to apply for a CCP dealer license if the product is for commercial purposes.

 

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