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24-hour hotline : 23 922 922
e-mail address : stc@tid.gov.hk
Ref : TRA CR 1015/35
  TRA CR 1015/37
8 May 2018
(Main text and Annexes D, E, H and I updated on 30 April 2025)
 

Strategic Trade Controls Circular No. 6/2018

Import and Export of Encryption Products

            
            This circular reminds traders of the licensing requirements for the import and export of encryption products.  Circular No. 7/2009 dated 12 May 2009 of the same subject is hereby superceded.


(I) The Legal Basis

2.          The legal basis for imposing licensing control over strategic commodities in Hong Kong is the Import and Export (Strategic Commodities) Regulations (Cap. 60G, Laws of Hong Kong) ("the Regulations") made under the Import and Export Ordinance (Cap. 60, Laws of Hong Kong).  Articles contained in the Schedules to the Regulations are regarded as strategic commodities, the import and export of which must be covered by valid licences issued by the Director-General of Trade and Industry.  The Regulations contain four Schedules.  Schedule 1 is the full list of strategic commodities subject to import and export licensing control. Schedule 2 contains products which, in addition to being subject to import and export control, are controlled even if they are in transit through Hong Kong.  Schedules 3 and 4 are items and activities subject to end-use control (also read paragraph 18 below).


(II) Control on Encryption Products

3.          In implementing licensing control on strategic commodities, Hong Kong follows closely the controls adopted by the international control regimes.  Encryption products are controlled under the Wassenaar Arrangement, an international control regime overseeing the controls over the transfer of both munition items and dual-use goods and technology.  Accordingly, encryption products may fall under "Category 5, Part 2 - Information Security" of the Dual-use Goods List of Schedule 1 to the Regulations.  Import and export of the encryption products so specified are subject to licensing control.


(III) Exemptions of Control

4.          While the Regulations impose control over encryption products with a symmetric key length above 56-bits, exemptions are granted for products, of whatever key length provided that they are under either one of the following scenarios:
  1. accompanying the user, for the user's personal use; or
  2. items meeting all of the following :
    1. Generally available to the public by being sold, without restriction, from stock at retail selling points by means of any of the following :
      • Over-the-counter transactions;
      • Mail order transaction;
      • Electronic transactions; or
      • Telephone call transactions;
    2. The cryptographic functionality cannot easily be changed by the user;
    3. Designed for installation by the user without further substantial support by the supplier; and
    4. When necessary, details of the items are accessible and will be provided, upon request, to the appropriate authority in the exporter's country in order to ascertain compliance with conditions described in paragraphs (a) to (c) above.
 
(Classification advice by the Trade and Industry Department ("TID") is required to determine if the product meets the criteria in paragraph 4(ii) above.  For details, please refer to paragraph 8(d) below.)

For details of the above exemptions as well as further information on other exemptions provided for certain products, traders may refer to Notes  for "Category 5, Part 2 - Information Security" of Schedule 1 to the Regulations, particularly Notes 2 and 3 (also known as the Cryptography Note).  This part of legislation can also be found at the Strategic Commodities Control System Website ("SC Website").


(IV) Licensing Procedures 

(A) Application Forms

5.          Licence applications should be made on Import Licence (Strategic Commodities) Application Form [TID 501] (Annex A) (fillable pdf format) or Export Licence (Strategic Commodities) Application Form [TID 502] (Annex B) (fillable pdf format).  These forms are available at the Integrated Customer Service Centre (“ICSC”) at Room 1324, 13/F, Trade and Industry Tower, 3 Concorde Road, Kowloon City, Hong Kong, or they can also be downloaded from here. Licence applications should be submitted together with the required supporting documents to the ICSC.   A numbered receipt will be issued for each licence application.
 
6.         Import and export licence applications can also be made electronically.  The E-Applications can be made through companies' E-Accounts on the SC Website ( Note 1 ) or through Trade Single Window (TSW) ( Note 2 ).  The supporting documents can be uploaded and submitted together with the E-Application.  Alternatively, they can be submitted by fax (fax no. 2396 3070), by email (email address: stc@tid.gov.hk) or in person at the ICSC.
 
7.          To submit E-Applications, companies are required to register an E-Account on the SC Website or become “Linked-up” TSW users.
       

(B) Declaration and Supporting Documents

8.          In addition to basic application particulars, the following information/documents will also be required to support a licence application covering encryption products :   
  1. the name and full address of end-user;
  2. the specific end-use of the goods concerned;
  3. if the shipment is supported by export/re-export authorisation(s) issued by the technology originating and/or exporting country/place: essential details of the licence or licence exception and a copy of the export/re-export authorisation issued by the technology originating and/or exporting country/place of the goods giving explicit approval to the export/re-export concerned. If the licence/authorisation is written in languages other than English or Chinese, the licence/authorisation should be submitted together with a translated version (either in English or Chinese);
  4. the technical specifications and/or the completed Cryptography Questionnaire (Annex C) (fillable pdf format). This questionnaire is for ascertaining whether the products can meet the criteria listed in paragraph 4(ii) and giving the general technical features of the products; and
  5. depending on the circumstances of individual cases, the following documents may also be required for certain applications:
  1. an End-user Statement duly completed by the end-user (Annex D (fillable pdf format) for import licence application or Annex E (fillable pdf format) for export licence application).  In case the submitted version is a softcopy, the original end-user statement should be provided to the applicant.  The TID and/or the Customs and Excise Department and/or other government departments will request the applicant to provide the original copy of the document, and / or contact the end-user for verification if necessary.  Therefore, the applicant must keep the original copy of the document for checking; and/or
  2. a copy of the valid business registration certificate of the applicant and/or local end-user

The Director-General of Trade and Industry at all times reserves the right to request additional information and further documentary proof to substantiate the licence applications. Applications that are not properly completed or not accompanied by all the necessary documentation will be deferred/rejected.  Blank forms for Annexes A to E can be downloaded from here.
 

(C) Electronic Applications made under the Approval-in-Principle Arrangement (AIP) 

9.          Companies which frequently import encryption products from the same supplier or frequently export encryption products to the same consignee may apply to join the Approval-in-Principle Arrangement (AIP).  For further information on AIP for encryption products, please refer to Strategic Trade Controls Circular No. 2/2022.
 

(V) Export Control of Technology Originating and / or Foreign Exporting Country / Place on Encryption Products

10.          Traders should note that the technology originating and/or exporting country / place of encryption products, especially if it is a member of the Wassenaar Arrangement ( Note 3 ), may impose export control over the products by ways of individual licence, general licences, licence exceptions or other mechanisms. Since it is the policy of Hong Kong to maintain a licensing system complementary to the export control arrangement of our trading partners, TID will only approve licences to cover shipments that are in full compliance with the export control regulations of the technology originating and / or exporting country / place.  To ascertain such compliance, licence applicants are required to provide additional supporting documents that may include, but shall not necessarily be confined to: the relevant government authorities' determination/ classification result indicating that the goods have been reviewed and classified to be eligible for export to the proposed destination(s) / end-user(s), individual export licence, the review request / notification submitted by the product's manufacturer to the relevant government authorities, manufacturer's certification letter, etc.

 
11.          For U.S.-origin encryption products, traders should be aware that the U.S. Department of Commerce (DoC) revises their control over encryption products from time to time. In addition to individual licences, U.S. Licence Exception ENC might be applicable to certain products subject to prior authorisation from the DoC. Exports of certain type of encryption goods to specific type of end-users or countries / places might not require prior review. For details of the U.S.' latest regulations, we would advise traders to consult their U.S. exporters/manufacturers direct or to visit the relevant U.S. Government's website at https://www.bis.doc.gov.
 

(VI) Issuance of Licence

12.          Under normal circumstances, applications duly completed and supported by the documents required will be processed within 2.5 clear working days after the date of receipt of the licence application.  Approved import and export licences are valid for six months and three months respectively.​
  1. For paper application – Traders can collect the paper licence at the ICSC by presenting the receipt issued to them.  Before collection, applicants are advised to check the application processing status on the SC website ( https://www.stc.tid.gov.hk/english/applytips/how_check.html ).
  2. For E-Application – Traders can:
    1. obtain and print out the licence ( Note 4 ) online at TSW platform (exclusively provided to “linked-up” users); and/or
    2. collect the paper licence at the ICSC by presenting the receipt printed out from their E-Accounts.
 
13.          For cases with complications or if additional document and/or information are necessary, longer time may be required to process the applications.  Applicants are advised to submit their applications well in advance of the shipments.


(VII) Licence Conditions

14.          On top of the standard licence conditions, the Director-General of Trade and Industry may, depending on the circumstances of individual cases, impose special and additional conditions on the approved licences.  At the time of receiving the licences, applicants are advised to thoroughly read the section of “Conditions of Licence”, for the standard and special conditions being imposed on that licence.

Special Licence Condition and Resale/Transfer Application for U.S.-origin Encryption Products
 
15.          For U.S.-origin encryption products, one common special licence condition is that "This licence only authorises import of the goods for civil end-use by non-government end-users.  Any further re-export, resale or transfer of the goods for the use by government end-user(s) requires prior notice to and approval from the Director-General of Trade and Industry".  Licensees imposed with this condition should carefully handle any subsequent resale/transfer of the goods covered by the licence.  An Important Note shall be attached to the licences concerned and traders are required to pass on the Note to the new recipient of the goods whenever the goods are transferred in Hong Kong.
 
16.          If the goods are to be resold/transferred for the use by any government end-user(s), the importer/owner of the products (i.e., the applicant) should lodge applications with the Strategic Trade Controls Branch in paper or electronically:
  1. Paper application(s) are to be made in the designated form SC054 (Annex F) (fillable pdf format).  To facilitate TID's consideration of the applications, applicants should enclose in their applications supporting documents like an end-user statement duly completed by the proposed government end-user; technical specification and questionnaire of the products; valid export authorisation issued by the U.S. Government giving approval to the proposed resale/transfer, etc.  TID will give due consideration for the application and notify the applicant in writing whether the request can be approved.  Only after TID's written approval has been obtained should the applicant proceed with the proposed resale/transfer of the goods.
  2. E-Application(s) for resale/transfer can be made through companies' E-Accounts on the SC Website under the option of “Resale / Transfer / Disposal of Products Under Approved Import Licence” provided in the “E-Applications” menu (At https://www.stc.tid.gov.hk> Login Your E-Account > E-Applications > Resale / Transfer / Disposal of Products Under Approved Import Licence).  E-Applicants could efficiently check their application status through their E-Accounts and may proceed with the proposed resale/transfer of the goods only after obtaining TID’s approval.
 

(VIII) Pre-classification Service

17.          For applicants who frequently import or export the same types of encryption products, they are advised to make use of our pre-classification service. In brief, traders will be advised of the control status of a product through this service. Traders may download the pre-classification application form SC013 (Annex G) (fillable pdf format) from the SC website, and make applications attached with corresponding technical specifications and where applicable, questionnaire(s) mentioned in paragraph 8(d) above. After pre-classification, the Department will assign a Pre-Classification Reference Number to the product concerned.  By quoting this reference number on future licence applications covering the same goods, the requirement to provide the technical specification/data sheets is waived.  For details of the pre-classification procedures, please refer to Strategic Trade Controls Circular No. 11/2024.


(IX) End-use Control

18.          In addition to the control imposed on specific items as set out in Schedules 1 and 2 to the Regulations, traders are reminded that end-use control are imposed under Schedules 3 and 4 to the Regulations.  The Regulations impose licensing requirement on articles specified in Schedule 3 to the Regulations (Annex H) (pdf format), or any technological document containing information relating to any such article:
  1. if the importer/exporter knows that the article or document is intended or likely to be used in any activity related to nuclear, chemical or biological weapons or missiles capable of delivering them as specified in Schedule 4 to the Regulations (Annex I) (pdf format); or
  2. if the importer/exporter has grounds for suspecting that the article or document may be used in any activity specified in Schedule 4.


(X) Reminder

19.          Section 6A of the Import and Export Ordinance stipulates that no person shall import or export any article specified in the Schedules to the Regulations except under and in accordance with a licence issued by the Director-General of Trade and Industry.  Any person who contravenes the provision commits an offence and is liable :
  1. on summary conviction to a fine of HK$500,000 and to imprisonment for two years; and
  2. on conviction on indictment to an unlimited fine and to imprisonment for seven years.
 
20.          In addition to prosecution, the TID may impose administrative actions against these persons.  Such administrative actions may involve but shall not necessarily be confined to, suspension of a licence, refusal to issue a licence, debarment of all licensing facilities, etc.


(XI) Enquiry

21.          If you have any enquiry concerning licensing requirements for encryption products, please contact our Licensing Section at 2398 5575.  For specific technical questions or matters concerning classification of the goods and the pre-classification service, please contact our Classification Section at 2398 5587.  Enquiry could also be sent by fax to 2396 3070 (Licensing Section) or 3525 1526 (Classification Section) or by email to stc@tid.gov.hk.



Strategic Trade Controls Branch 
Trade and Industry Department



 

Note 1:

 		 Details of E-Accounts can be found on the SC Website:
https://www.stc.tid.gov.hk/english/eaccount/how_open.html.
 
Note 2:
 
 		 Details of TSW can be found in Strategic Trade Controls Circular No. 2/2024
< https://www.stc.tid.gov.hk/english/circular_pub/2024_stc02.html >.
 
Note 3:
 




 		 The Participating States of the Wassenaar Arrangement are : Argentina, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, India, Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg, Malta, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, the Republic of Korea, Romania, the Russian Federation, Slovakia, Slovenia, South Africa, Spain, Sweden, Switzerland, Türkiye, Ukraine, the United Kingdom and the United States.  For details, please visit https://www.wassenaar.org/participating-states.
 
Note 4:

 
 		 For authenticity verification sake, a QR code is inserted at the lower right-hand corner of the approved document.  By scanning the QR code, the departmental copy of the licences will be retrieved and shown.  If any irregularity is found, traders should notify the TID as soon as possible.
 






 

 

                   
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Last Revision Date : 30 April 2025