Effective october 30, 2018, the department of commerce has taken action to restrict exports to fujian jinhua integrated circuit company, ltd. Federal register addition of entities to the entity list. The export administration regulations ear administered by the bureau of industry and security bis and the sister set of regulations. This type of export control clause broadly finds its basis in the us department of commerces export administration regulations ear and the us department of states international traffic in arms regulations itar. Our solutions integrate export controls into your current business processes to assist you in achieving compliance with bis and ear requirements, and stay up to. Export controls on transferring technology, commodities. While the new rules do not substantively modify current export policy, they do effect some changes that could benefit foreign companies in determining whether their foreignmanufactured products are beyond the scope of the export administration regulations ear 15 cfr parts 730772. The us export administration regulations ear generally do not apply to etsis activities, which involve open standard development and unclassified, published technology and software not subject to the ear. On august 1, 2018, the us department of commerce bureau of industry and security bis published a federal register notice stating that the us government had identified 44 chinese companies as acting contrary to us national security and foreign policy interests.
Commerce department amended the export administration regulations ear and the list of goods, software and technology that are controlled under the commerce control list. Software companies provide the ccats number because some encryption exports require the exporter to make postshipment. Export administration regulations to determine whether or not you need to apply for an export license, and screen all the parties in your export transactions against all the u. Export control clauses in software agreements lexology. The types of items subject to the ear are commodity, software and technology. How do i determine my export control classification number. The us department of commerce enforces the export administration regulations ear through the bureau of industry and security bis. Evolution, provisions, and debate congressional research service 2 become an extensive peacetime undertaking. Export administration regulations require a license and reporting to authorities prior to shipping. Apr 10, 2014 the bureau of industry and security bis within the department of commerce has issued two advisory opinions relating to cloud services, one on january, 20091 the 2009 ao and the other on january 11, 20112 the 2011 ao, regarding application of the export administration regulations ear. Chinese technology companies named to entity list, blocked.
Strictly commercial, dualuse, and less sensitive military commodities, software and technology check lists of parties of concern on the bis website. Department of commerce, bureau of industry and security bis controls goods and information having either civilian or military uses through the export administration regulations ear. Companies may not assume that the permitted export of goods from the u. In title 15 of the code of federal regulations, parts 300 to 799, revised as of january 1, 2012, make the following corrections. Federal register export administration regulations.
Our solutions integrate export controls into your current business processes to assist you in achieving compliance with bis and ear requirements, and stay upto. Encryption software controlled under eccn 5d002 is not eligible for export or reexport to a country in country group e. The export administration regulations ear the department of commerce bureau of industry and security bis regulates the export of commercial products and technology under the ear. Whether by electronic download or through the physical transfer via cdrom or flash drive, the release of software may require an export control license from the u. The department of commerces export administration regulations ear also known as the commerce control list. Having an effective export compliance program is simply good business and a worthwhile investment of company resources. Export administration regulations provided by the other party or b disclose such technical data for use in, or export or re export directly or indirectly, any direct product of such technical data, including software, to any destination to. The export compliance module makes it easy to check what documents are required for the country you are shipping to, screen your products against the u. Government has determined that there is reasonable cause to believe that huawei has been involved in activities. When considering whether or not a shipment, transfer, transmission, or disclosure.
The department of commerce implements this authority through the export administration regulations ear. Export controls for software companies what you need to know. An overview of the export administration regulations. Export administration regulations ear, 15 cfr 73074. Accordingly, a license is required to export, re export or transfer incountry any item subject to the ear to these organizations. All other beta test software is eligible for export or reexport to all destinations, except cuba, iran, and sudan under the provisions of this paragraph c. Department of commerce utilizes its global presence and international marketing expertise to help u. Department of commerces bureau of industry and security, as well as the role of the u. Schedule b for completion of mandatory electronic export information eei electronically filed through the government automated export system aes.
Nov 18, 2016 in the world of export and the export administration regulations ear, these finished good items are classified as equipment and found in category a of the export control classification number eccn contained on the commerce control list ccl, not as technology. Only their official classification can guarantee that you are in compliance with the export regulations as to your product, software or hardware. Iran is also subject to a us comprehensive export reexport ban under the export administration regulations, 15 c. The export administration regulations ear contain a list of names of certain foreign persons including businesses, research institutions, government and private organizations, individuals, and other types of legal persons that are subject to specific license requirements for the export, reexport andor transfer incountry of. The controlled items are found in lists published by the u. The minimum antidiversion statement for goods exported under u.
External links to other internet sites should not be construed as an endorsement of the views or privacy policies contained therein. The release of software may require an export control license from the u. Rather, the ear require that the export and reexport of goods are assessed separately. Ear regulates the export of most commercial goods and dual use items. Department of commerce export administration regulations ear, the member states of the european union, singapore, and other applicable jurisdictions. Jinhua by adding them to the entity list supplement no. Us export administration regulations ear microsoft. The entity list prohibitions, which are administered by the commerce departments bureau of industry and security bis, prohibit the unlicensed export of all commodities, software, and technology that are subject to the export administration regulations ear, even lowlevel ear99 items that are not identified on any u. The start of the cold war led to a major refocusing of export control policy on the sovietbloc countries. The ear broadly governs and imposes controls on the export and re export of most commercial goods, software, and technology, including dualuse items. Export controls and the biotech industry contract pharma. Both delivery methods can qualify as an export under the ear. The us tightens export controls targeting china wilmerhale. Export administration act of 1979, as amended, effective october 1, 1979.
Export compliance training institute comprehensive training. More specifically, veritas products, including software, hardware, services, and technology are subject to export and import controls administered by the united states including, but not limited to, the u. Incorporation of revisions pursuant to federal register regulatory. Published by the us commerce department in its export administration regulations ear, the commerce control list addresses dual use items, information and software that are primarily commercial in nature but also have potential military applications. The ear is concerned with dualuse items, such as computers or pathogens, that are designed for commercial use, but have the potential for military application. Deemed export rules can be a trap for many pharmaceutical and medical device companies. Export controls for software companies what you need to know many u. The ear contain the commerce control list ccl which lists all.
Items include commercial products, software and technology that may pose a danger to the national security. Lists of export controlled items, information and software. Companies are migrating to software asaservice saas offerings in areas such as workforce automation, email and office productivity suites. The bureau of industry and security bis within the department of commerce has issued two advisory opinions relating to cloud services, one on january, 20091 the 2009 ao and the other on january 11, 20112 the 2011 ao, regarding application of the export administration regulations. Ear is largely a legal document that defines the type of products and data that can be lawfully exported. The legally official text of the ear is provided via the federal register publications. Us trade sanctions and export controls targeting iran. How do i determine my export control classification number eccn the key in determining whether an export license is needed from the department of commerce is finding out if the item you intend to export has a specific export control classification number eccn. Bis export administration regulations software ecustoms. Addition of fujian jinhua integrated circuit company, ltd. Department of state and govern defense articles and services. We also offer an expansive library of trade compliance webinars which explore more narrowly focused areas of international trade.
Given the appropriate eccn, you should consult the export administration regulations ear or your export counsel to determine the appropriate license type and. Department of the treasurys office of foreign assets control in export licensing. Let us help you find the best opportunities for your business in india. However, certain technologies are subject to export controls and companies that export them without a license can face fines and other penalties.
Department of commerce authority says,these commodities, technology, or software were exported from the united states in accordance with the export administration regulations. Commodity classification automated tracking system wikipedia. In this article, well discuss the background of the export regulations, the. The rule adds geospatial ai software to the export administration regulations ear commerce control list ccl and imposes a license requirement for the export, reexport shipment from one foreign country to another foreign country, or transfer incountry collectively export of the geospatial ai software to all countries but canada as. The itar is heavily focussed on military weapons, but also includes software relating to military weapons. There are times when equipment is ear99 and the technology for that equipment could require an export license for most countries. They are administered by the bureau of industry and security, which is part of. Department of commerces bureau of industry and security bis administers u. Us implements regulation changes for encryption products. Export controls international trade administration. Bis final rule on cloud computing lewis roca rothgerber. Its aim is to ensure national security by incorporating commercial and research aims. Regulations set forth in parts 730774, inclusive, of title 15 of the code of federal regulations.
These regulations are in place for the national security of the u. Export compliance with the export administration regulations requires companies to accurately determine the classification of their products and dualuse goods under u. Links below open the individual sections of the commerce control list. For more information on the ear, visit the bureau of industry and security bis website or contact its offices directly at one of the telephone numbers listed below bis office of. Us government imposes comprehensive restrictions on exports. In this rule, the bureau of industry and security bis amends the export administration regulations ear by adding huawei technologies co.
An explanation of the export administration regulations and the bureau of industry and security and its role in export licensing and determining if a product is subject to export administration regulations ear. Release or deemed export means the release of technology or software to a nonu. Export administration regulations bis us department of. While eccns for microsoft products are provided in order to facilitate export operations, the exporter is responsible for complying with the export administration regulations ear. Commercial service helps thousands of companies export goods and services worth billions of dollars. Department of commerces bureau of industry and security bis under the export administration regulations the ear. Bis administers the export administration regulations, or ear. Create export compliance program export administration. The three major directives that regulate export compliance in the united states are 1 the international traffic in arms regulations itar, which are administered by the u. Department of commerce export administration act reference g and export. The export administration regulations ear are a set of regulations found at 15 c. The export administration act of 1979, as amended, authorizes the department of commerce, in consultation with other appropriate agencies, to regulate the export or re export of u. Articles, information and software, that are not subject to itar control, and are not excluded, fall under the ear.
They are administered by the bureau of industry and security, which is part of the us commerce department. Before arranging for items to be shipped or conveyed electronically or otherwise outside the u. We will highlight and explain the key areas of the ccl and the export administration regulations ear that play a decisive role in determining the eccn for your technology and software. Software companies provide the ccats number because some encryption exports require the exporter to make postshipment reporting to bis on a biannual basis and the ccats number is one of the mandatory elements required for reporting. The commodity classification automated tracking system ccats is an alphanumeric code assigned by bureau of industry and security bis to products that it has classified against the export administration regulations ear.
Sep 29, 2016 on september 20, 2016, the bureau of industry and security bis of the u. The export controls software from aeb keeps you in compliance with all export. Items that are subject to the ear that are sold, leased or loaned by the department of defense to a foreign country or international organization under the fms program of the arms export control act pursuant to a letter of offer and acceptance loa authorizing such transfers are not subject to the ear, but rather, are subject to the. Export regulations international trade administration. The following information on definitions is based on u. The ear covers dual use products, software, and technology that can be used for dual commercial and military or terrorist end uses. Before you export, you need to determine whether your product, technology, or service might need an export license.
Notwithstanding this analysis and classification of eccn for the software as stated above, we recommend that you seek a formal eccn classification from the bureau of export administration. Aug 08, 2018 the entity list to which the chinese entities have been added is supplement no. Items controlled under the ear are placed on the commerce control list ccl. The following video provides an overview of the export administration regulations ear as administered by the u. With its network of 108 offices across the united states and in more than 75 countries, the international trade administration of the u. With the rapid development of the technology sectors in many lowcost countries, more and more u. Export controls for software companies what you need to.
An export of encryption software or other software technology occurs when the software is actually shipped, transferred or transmitted physically or electronically out of the united. Export controlled or sanctioned countries, entities and. State departments directorate of defense trade controls, and the u. Most exports fall under the export administration regulations ear, administered by the u. The us department of the treasury now requires export licenses for the export or import of all goods, services, or technology to or from the crimea, with the exception of certain agricultural commodities, medicine, and medical supplies. In the world of export and the export administration regulations ear, these finished good items are classified as equipment and found in category a of the export control classification number eccn contained on the commerce control list ccl, not as technology. Export controlled information or material is any information or material that cannot be released to foreign nationals or representatives of a foreign entity, without first obtaining approval or license from the department of state for items controlled by the international traffic in arms regulations itar, or the department of commerce for items controlled by.
Prepared by the international trade administration. In general, the ear govern whether a person may export a thing from the u. Determine whether the item is subject to the ear eccn or ear99. Us export administration regulations ear microsoft compliance. Following is an overview of takeaways from the final rules and how they may impact companies moving forward.
A deemed export occurs when a foreign national any person who is not a u. What every pharmamedical device company needs to know. The entity list to which the chinese entities have been added is supplement no. These rule changes will revise key definitions in both the export administration regulations ear and the international traffic in arms regulations itar.
1379 754 115 870 304 6 188 617 703 961 1024 203 610 489 1080 274 766 210 267 633 457 212 182 350 1363 1194 864 890 1122 895 499 1303 1185 54 1294 463 732 1089 764 175 60 1487 1095 108 74