NCC to Streamline Import of Certain Controlled Telecommunications Radio-Frequency Devices via Newly Established Mechanism of Import Code Exemption

11/23/2021

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NCC to Streamline Import of Certain Controlled Telecommunications Radio-Frequency Devices via Newly Established Mechanism of Import Code Exemption

The Taiwan National Communications Commission (the “NCC”) promulgated the Administrative Regulations on Manufacturing, Import and Report of the Controlled Telecommunications Radio-Frequency Devices (the “Administrative Regulations”) on July 15, 2020 under the authority of Paragraphs 3 and 5, Article 65 of the Telecommunications Management Act to regulate the manufacturing and import of the controlled telecommunications radio-frequency devices (the “Controlled Devices”).

On November 19, 2021, the NCC announced and enacted the amendment to the Administrative Regulations with a newly established mechanism of import code exemption where the eligible importers of Controlled Devices will be granted dedicated import codes and be exempted from redundant import procedures.

Before the amendment to the Administrative Regulations, where a business intended to import any Controlled Devices for R&D or testing purposes, it must apply to the NCC for an import approval for such Controlled Devices (the “Import Approval”) before each import and must file another application with the NCC to lift the controls on such devices before the Import Approval expires. The businesses involved in the development of new products often need to apply for the Import Approvals quite frequently in order to import a large number of prototypes or new machines for in-house research, development and testing. The complex import process is time-consuming and might even hinder the development of new products. Hence, in order to streamline the administrative process and expedite the import procedures, the NCC has established a mechanism for import code exemption under this round of amendment to the Administrative Regulations, where an eligible business may apply for a dedicated import code for Controlled Devices (the “Dedicated Import Code”), which allows the business to be exempted from applying for the Import Approvals in advance or for lifting of controls thereafter on its Type II Controlled Devices for R&D and testing purposes.

Pursuant to Article 8-2 of the Administrative Regulations, the criteria for applying for such Dedicated Import Code are “having received, on average, fifty (20) or more Import Approvals every year for the most recent two (2) years (and at least one (1) each year)” or “for excellent businesses approved by the Ministry of Economic Affairs, having received, on average, thirty (30) or more Import Approvals every year for the most recent two years (and at least one (1) each year)”, and also “having not been subject to any penalty by the competent authority due to violation to any rules on lifting the controls on the Controlled Devices”

In addition, pursuant to Article 8-1 of the Administrative Regulations, the Dedicated Import Code is divided into five tiers and charged accordingly; the valid period for all tiers is two (2) years and the limits on import number for each tier are as follows:

Name	Valid Period	Limit on Import Number	Review Fee (New Taiwan Dollars)
Tier I Dedicated Import Code	Two (2) Years	2,000 times or more	NT$1 million
Tier II Dedicated Import Code		1,000〜1,999 times	NT$800,000
Tier III Dedicated Import Code		500〜999 times	NT$400,000
Tier IV Dedicated Import Code		250〜499 times	NT$200,000
Tier V Dedicated Import Code		Less than 250 times	NT$100,000

If you wish to learn more about the Dedicated Import Code for Controlled Devices and the expedited import procedure, please do not hesitate to contact our Digital, TMT and Data Privacy Practice Group for more information.