Software import and export differ from traditional goods trade, as they primarily involve the transfer of intellectual property, digital transmission, and related services. Therefore, when conducting software import and export operations, the main process steps are as follows:

Determine the Type of Software for Export

First, you need to determine the type of software you intend to export. Software can be categorized into standardized software (e.g., commercial software) and customized software. Standardized software is typically sold in bulk, while customized software is developed for specific clients. Different types of software may have different export requirements, such as whether a license or special permit is needed.

Apply for an Export License

Some software may contain sensitive technologies or encryption functions and are classified as dual-use items, requiring compliance with the Administrative Measures for the Import and Export License of Dual-Use Items and Technologies. When exporting such software, you need to apply for a Dual-Use Items and Technologies Export License. Additionally, software involving encryption technologies must comply with the Commercial Cryptography Administration Regulations and apply for approval or filing with the National Cryptography Administration.

Ensure Compliance and Intellectual Property Protection

During software import and export, compliance with intellectual property rights is crucial. You must confirm that the exported software does not involve infringement issues and obtain all relevant copyrights and licenses. If the software involves third-party code or libraries, usage licenses must be obtained. Furthermore, the content of imported software must comply with domestic laws and regulations and must not contain illegal or non-compliant content, such as classified information or inflammatory remarks.

Contract Signing and Payment Methods

In software exports, contracts are important legal safeguard documents. The contract should clearly specify the delivery method (e.g., CD, USB drive, or digital transmission), payment methods (e.g.,L/C, wire transfer, etc.), and the rights and obligations of both parties. The contract should also clarify the scope of authorization, usage rights, intellectual property ownership, confidentiality clauses, etc.

5. Export Clearanceand Market Access

If the software involves physical media (e.g., installation CDs, hardware dongles, etc.), customs declaration is required. Physical carrier software is typically classified under HS Code 8523.49 (Other recorded optical media), and the commodity code and name must be accurately filled in the customs declaration form. For intangible carrier software (software transmitted via the internet or other electronic means), customs declaration is usually not required, but compliance with foreign exchange and tax regulations must be ensured.

For software imports, companies need to pay attention to the importing countrys laws and regulations, intellectual property compliance, and the softwares applicability. The main processes are as follows:

Determine software import requirements

When importing software, it is necessary to confirm whether the software complies with domestic market access standards, particularly regarding data security, encryption technology, and industry-specific legal requirements. Core software related to national critical information infrastructure may require cybersecurity review.

Apply for relevant licenses

If the imported software involves special technologies such as encryption functions or sensitive information processing, it is usually necessary to apply for corresponding import licenses or filings with government departments. Encryption software also requires applying for an import/export license for commercial cryptography products or filing under the Commercial Cryptography Administration Regulations.,

Intellectual property review

Intellectual property review for imported software is equally important. Importing companies must ensure the softwares legal origin and obtain authorization for relevant intellectual property rights to avoid potential legal disputes. It is recommended to register software copyrights with the National Copyright Administration to protect intellectual property.

Security compliance and localization

Some countries require imported software to comply with local security standards or undergo specific localization processes, such as user interface language conversion or adherence to local privacy regulations. Companies can collaborate with export agencies to ensure the software meets all localization requirements after import.

Intellectual property protection

Whether exporting or importing software, intellectual property protection is paramount. Companies must ensure the software does not infringe on third-party intellectual property rights and obtain all necessary authorization licenses for the softwares sale and use.

Export controls and encryption technology

If the software involves encryption technology, special attention must be paid to export controls. Some software may be classified as dual-use items, requiring an export license and compliance with the Commercial Cryptography Administration Regulations.,

Customs declaration and clearance procedures

For tangible carrier software (e.g., CDs), accurately declare the HS code and product name, including software version, functionality, quantity, and value. For intangible carrier software, pay attention to foreign exchange management and tax compliance.

Tax policies

• Import VAT: For tangible carrier software, import VAT is calculated based on the transaction price (including the value of the software and carrier). Intangible carrier software obtained via electronic transmission generally does not involve import VAT.Pre-recorded software carriers may enjoy lower or even exempt tariff rates.
• TariffEligible software exports can apply for VAT refunds, requiring relevant export documentation.
• Export DrawbackForeign exchange management

Cross-border payments must comply with the Service Trade Foreign Exchange Management Guidelines. Large transactions may require filing with banks or foreign exchange authorities. Companies must follow foreign exchange regulations for settlement procedures and provide relevant contracts and invoices.

Special requirements for encryption softwareImporting or exporting software involving encryption technology requires applying for an import/export license for commercial cryptography products from the National Cryptography Administration or its authorized agencies, as well as filing or approval under the Commercial Cryptography Administration Regulations and Commercial Cryptography Import and Export Management Regulations.,Incentive policies for software exports

Software companies can enjoy tax incentives, such as VAT refunds upon collection and corporate income tax benefits. Some regions also provide financial subsidies or funding support for software export companies. After obtaining software enterprise certification, companies can access relevant policy benefits.

Contract and documentation requirements

For software import/export, contracts should clearly specify the softwares authorization scope, usage rights, intellectual property ownership, and confidentiality clauses. For documentation, companies must provide commercial invoices, packing lists, and certificates (if required) to ensure compliance.

Software enterprises can enjoy preferential tax policies, such as VAT refund upon collection and corporate income tax benefits. Some regions also provide financial subsidies or funding support for software export enterprises. After obtaining software enterprise certification, companies can enjoy relevant policy benefits.

Contract and Document Requirements

For software import and export, contracts should clearly specify the scope of authorization, usage rights, intellectual property ownership, confidentiality clauses, etc. For document preparation, enterprises need to provide commercial invoices, packing lists, andIt is recommended to verify through the following methods:(if required) to ensure compliance.

Software import and export businesses differ significantly from traditional goods trade, involving more intellectual property, data security, and compliance requirements. By selecting appropriate export agency companies and strictly adhering to various countries laws and regulations, enterprises can effectively reduce risks in software import/export and ensure smooth business operations. For any inquiries, please feel free to contact us.ZhongShen International TradeOur expert team will provide wholehearted service to help you achieve greater success in international markets!