Discover solutions to help businesses meet the conditions required for operating under a civil cryptographic license as shared by ExtendMax
In the context of strong digital transformation, information technology products are increasingly being imported into Vietnam. At this time, meeting legal regulations poses a significant challenge for businesses due to the specific nature of business conditions according to specialized IT licenses. This is especially evident in the field of civil cryptographic licenses and network information security, which have high requirements for business conditions.
The management policies for importing and exporting civil cryptographic products are particularly strict in Vietnam, as well as in the US and the EU, due to the potential impact these products can have on national information security. To be granted a license to trade in civil cryptographic products and services, businesses must meet requirements regarding operational scale, physical conditions, and the IT expertise of their technical and management teams. However, many businesses are still confused about implementation because not all products with encryption or decryption features require a license.
ExtendMax Vietnam Company Limited |
Mr. Tran Thanh Phuong, CEO of ExtendMax, shared with us: "I find that businesses are mostly confused about determining whether a product needs a license due to the lack of coordination between departments. Typically, the legal or import-export department is in charge of obtaining the license but lacks IT expertise, while the technical department has IT expertise but not legal expertise. Therefore, there needs to be coordinated cooperation within the company to compare the encryption features of the product with the exemptions outlined in Appendix 1 of Decree No. 58/2016/ND-CP."
Besides import-export management, state management of civil cryptographic products is also carried out in domestic business. However, this is a point that few businesses are aware of.
Import-export companies of civil cryptographic products must report annually to the Government Cipher Committee on their business activities, including buyers and the purpose of their business or usage. Therefore, IT product business agents should proactively review with distributors to apply for civil cryptographic licenses for the products they are selling, even if they do not engage in import-export activities. - Mr. Tran Thanh Phuong shared.
Expert Tran Thanh Phuong - CEO of ExtendMax |
In the context of increasingly specialized labor division, each department of a company has its own function, so the coordination between import-export and technical departments in managing imports and business operations is not always smooth and timely. For this situation, Mr. Tran Thanh Phuong believes that a professional consulting company can effectively support IT product businesses. A consulting unit with high expertise in both IT and legal policy, such as ExtendMax Vietnam Co., Ltd., is a reliable choice. ExtendMax can help businesses classify products, estimate import timelines, and bring products to market, ensuring compliance with legal regulations. With professional services from a consulting firm, businesses can fully focus on their core business activities instead of investing resources in researching complex procedures and regulations.
"For cases where businesses do not meet the conditions for licensing but still need to import for self-use (not for business), they can delegate the import-export process to a licensed company to import on their behalf. This is a procedure compliant with the Foreign Trade Management Law," said Mr. Tran Thanh Phuong.
Information about ExtendMax Vietnam Co., Ltd.
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