STATEMENTS OF UNDERSTANDING
                         
                 Statement of Understanding - 
                       medical equipment
                                
Commodities that are 'specially designed for
medical end-use' that 'incorporate' commodities
or software on the Commerce Control List (Sup
plement No. 1 to part 774 of the EAR) that do not
have a reason for control of Nuclear
Nonproliferation (NP), Missile Technology (MT),
or Chemical & Biological Weapons (CB) are
designated by the number EAR99 (i.e., are not
elsewhere specified on the Commerce Control
List). 

     NOTES applicable to State of Understanding
related to Medical Equipment:

          1) 'Specially designed for medical end-use'
          means designed for medical treatment or the
          practice of medicine (does not include medi
          cal research).

          2) 'Incorporate' into medical equipment
          means to integrate with, or work indistin
          guishably into such equipment.

          3) Except for such software that is made pub
          licly available consistent with 734.3(b)(3) of
          the EAR, commodities and software 'specially
          designed for medical end-use' remain subject
          to the EAR.

          4) See also 770.2(b) interpretation 2, for
          other types of equipment that incorporate
          items on the Commerce Control List that are
          subject to the EAR.

          5) For computers used with medical equip
          ment, see also ECCN 4A003 note 2 regarding
          the "principal element" rule.

          6) For commodities and software specially
          designed for medical end-use that incorpo
          rate an encryption or other "information se
          curity" item subject to the EAR, see also Note
          1 to Category 5, Part II of the Commerce
          Control List.
     

     Statement of Understanding - Source Code

For the purpose of national security controlled
items, "source code" items are controlled either
by "software" or by "software" and "technology"
controls, except when such "source code" items
are explicitly decontrolled.