Where Industry and Security Intersect
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This chart is not all inclusive and is meant only as initial guidance for exporters. For additional information, please refer to part 740 of the Export Administration Regulations for the complete set of license exception provisions, criteria and restrictions that apply to encryption items.
| License Exception | Type of Products | Class of End-Users | Country Scope (1) |
Reporting Requirements | Restrictions |
|---|---|---|---|---|---|
| TMP - §740.9(a)(2)(i) "Temporary exports - Tools of trade" | Encryption products, including laptops with pre-loaded encryption | Exporters or employees of the exporter | Global, except Country Group E:1(2) countries and Sudan |
No | - Return in 1 year - Must retain effective control and ownership |
| TMP - §740.9(a)(2)(iii) "Temporary exports - Exhibition and demonstration" | Encryption products, including laptops with pre-loaded encryption | Exporters, employees of the exporter, or designated sales reps of the exporter | Global, except Country Group E:1(2) | No | - Return in 1 year - Must retain effective control and ownership - No more than 120 days in one location - Cannot be used for their intended purpose, except for minimum extent required for effective demonstration |
| BAG - §740.14 | Encryption products for personal use, including laptops with pre-loaded encryption | U.S. citizens or permanent resident aliens | Global, except Country Group E:1(2) | No | - Personal ownership - Usual and reasonable quantities - Not intended for sale -Intended for a necessary and appropriate use of individuals or members of immediate family traveling with exporter |
| TMP - §740.9(c) "Beta test software" | Beta test encryption software intended to be "mass marketed" to the general public after completion of beta testing | Certified testing consignees (see §740.9(c)(5)) | For beta test encryption software: Global, except Country Group E:1(2) | Yes - See §740.9(c)(8) for notification requirements specific to beta test encryption software |
- Refer to §740.9(c). - There are a number of requirements and restrictions, and they apply to all beta test software (including beta test encryption software) subject to the EAR |
| TSU - §740.13(e) | Encryption source code that would be considered "publicly available" (e.g. "open source") and corresponding object code | All | Global, may not knowingly export to Country Group E:1(2) | No | - Notification of the Internet location, or else a copy of the source code, by time of initial export |
| ENC to countries listed in Supp. No. 3 to part 740 - §740.17(a) | Encryption items (including source code, technology, technical assistance and "open cryptographic interface" (OCI) items) | Government and non-government end-users and subsidiaries | Located in Supplement No. 3 to Part 740 countries (3) (EU “license-free zone”); subsidiaries not located in Country Group E:1(2) | Yes (4), except as described in §740.17(e)(4) | - Requires ENC review (5), except for certain internal use transactions for the development of new products (§740.17(a)(1)) - Immediate export and reexport upon registration of complete review request - Excludes cryptanalytic items to government end-users |
| ENC to U.S. subsidiaries - §740.17(b)(1) | Encryption items (includes source code, technology and "open cryptographic interface" - (OCI) items) | U.S. companies and subsidiaries (includes foreign employees, contractors and interns) | Global, except Country Group E:1(2) | No | - No review for any internal company use, including the development of new products - Developed products require review prior to reexport, resale or transfer outside the company |
| ENC restricted to non-“government end-users” - §740.17(b)(2) |
Network infrastructure products, commercial source code, and other specified encryption commodities, software, and components | Non-government end-users | Global, except Country Group E:1(2) | Yes (4 ) , except as described in §740.17(e)(4) | - Requires ENC review (5) |
| ENC to both "government end-users" and non-"government end-users" - §740.17(b)(3) |
Encryption commodities, software, and components | Non-government AND government end-users | Global, except Country Group E:1(2) | Yes (4), except as described in §740.17(e)(4) | - Requires ENC review (5) -Excludes technology, OCI items and those commodities and software that are listed in §740.17(b)(2)(iii) |
NOTES:
1 See Supplement No. 1 to part 740 of the EAR for a complete list of country groups.
2 Regarding the restriction to Country Group E:1 (Cuba, Iran, Libya, North Korea, Syria, and Sudan), this includes exports and reexports (as defined in §734.2 of the EAR) of encryption source code and technology to nationals of these countries.
3 EU "license-free zone" = Austria, Australia, Belgium, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg, Malta, Netherlands, New Zealand, Norway, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, Switzerland, and United Kingdom [See Supplement No. 3 to Part 740] .
4 See §740.17(e) for reporting requirements under License Exception ENC.
5 Most exports and reexports to the EU "license-free zone" are authorized immediately upon registration of a complete review request with BIS and the ENC Encryption Request Coordinator (see §740.17(a)). Thirty (30) days after registration (excludes days on hold without action (HWA) status), exports and reexports of those encryption commodities and software that are restricted to non-"government end-users" outside the EU "license-free zone" are authorized (§740.17(b)(2)), as are exports and reexports of other encryption commodities and software to both "government end-users" and non-"government end-users" outside the EU "license-free zone" (§740.17(b)(3)).