ÿWPC° ;dÏ©ôC Õæм¤ eêoÃrEäŠ?ÓNÕ\âu‡Ès€ŠN†t? ½V.kØïm—¿„ð ä?}ã¦¦× W< ò’1èuÔgœÝeáÖ÷û^ž"Òã.º=xŒ¦øÓ—í_ÐÜ ¢å ³qVú!ïúé ÈÙTO*q%™“ÁIv—[yiy•°§>HiÁ…ˬO-h²–€0e…vr„$ 57¤&R_Éý†XG¤®Aï[ñkUÃpkË(’Ú{²¡°”Îr÷nzÒ¶ŸÖL÷K‚{ÁQÕ‹ŠèÒ Zýx=S˜¥™òãd (q ÝœŠ*ÚíùahL5©©á!á êæ 7Ÿý‹¸ž³g±’9£®É(Ïq|Ö„¸PùYÄé®5EÆikÆY¦³óÍô ›NP¼Æ‡òe¤¦½ê>—‘-Ç°; 8æ«é‹²Yzl«gtAÏiSûázW‡5šXÔùñÓ>P.Ê_†âǵÜôCv8…ÜG ŽyÓ˜ðLТ͂}Œ†¹ð`9>ñN@Ì"DþðÔ.&WÜt“NBh¸–1(ˆ3ŽÚ}(|F9~©ÙabSÝÙB÷bbþw#JMáÅÍŸ¸ÉòÆú>發ÝIíw@ˆ4ÈÜëUHó 1m; 1m¨UBU>WØ• 0 xm 0Dåò)Ë æeð×U¤,‚ШRúúúU<U N>>>>>>>> BŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒŒUN© %÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷÷ 04ýýýUN1 0ÆUNÆU .UNBU  « E¬ ­ ® ¯ E° ± D² ³ ´ DÖ‹Î(3|x´ +ÁON    ‹0Times New Roman Bold' e37=CIQYag³³1.a.i.(1)(a)(i)1)a)# e37=CIQYag­­1.a.i.(1)(a)(i)1)a)ô\  `*Times New RomanTT2 F‚AZ‹&Verdana Regular ÎÝ ƒ áY$ÝÓ  Óà  àòòÚ  Ú1Ú  ÚóóÝ  ÝWhat€about€a€reference€that€relates€to€5D992€„€we€took€this€out,€so€does€it€inadvertentlyÐ ° Ðmake€it€eligible?(((3ßY$¤¤Ý ƒ¤T!ÝÓ  ÓÝ  Ýà  àòòÚ  Ú0Ú  Úóó(#Ã$òòÚ  Ú0Ú  Úóó èÝ ƒ áY$ÝÓ  Óà  àòòÚ  Ú3Ú  ÚóóÝ  ÝShouldnððt€we€continue€to€refer€exporters€to€742.15(b)(1)€with€respect€to€provisions€asÐ ° Ðthey€apply€to€5A992,€5D992€and€5E992€items? ÁÝ ƒ áY$ÝÓ  Óà  àòòÚ  Ú1Ú  ÚóóÝ  ÝWhat€about€a€reference€to€5D992€„€we€took€this€out,€so€does€it€inadvertently€make€itÐ ° Ðeligible?  [Ý ƒ áY$ÝÓ  Óà  àòòÚ  Ú2Ú  ÚóóÝ  ÝDoes€this€me ÍÝ ƒ áY$ÝÓ  Óà  àòòÚ  Ú4Ú  ÚóóÝ  ÝThis€string€of€items€needs€to€be€more€readable€„€not€sure€what€applies€to€what€„€perhapsÐ ° Ðby€subparagraphs? šÝ ƒ áY$ÝÓ  Óà  àòòÚ  Ú5Ú  ÚóóÝ  ÝDivided€into€another€subparagraph€(ii),€since€you€canððt€have€just€(i).€€ xÝ ƒ áY$ÝÓ  Óà  àòòÚ  Ú6Ú  ÚóóÝ  ÝThere€seems€to€be€some€words€missing€here žÝ ƒ áY$ÝÓ  Óà  àòòÚ  Ú7Ú  ÚóóÝ  ÝChanged€from€ð ðlicenseðð€to€ð ðauthorizationðð€„€what€is€impact,€if€any?ô\  `$Times NewRoman ‹6Times New Roman Regular d(  Z ‹6Times New Roman Regular™X( ¤T$¡¡Ó  Ó(ÈhH  Z ‹6Times New Roman RegularB?é21, 2, 3,Numbersà  àÚƒÚ1Ú  Ú.Û€Û1, 2, 3,Level 1Level 2Level 3Level 4Level 5(ÈhH  Z6Times New Roman Regular $Verdana(ÈhH  Z 6Times New Roman Regular'ô\ `Ý ƒ¤T!ÝÓ  ÓÝ  Ý›ÓC€  e'#CÓÑ7€™Â™XXdðdÈ7ÑÑ  ÑÓÓà  àà ` àà ¸ àà  àà h àà À àà  àà p àà È àà  àà x àà Ð à¼à  àà ` àà ¸ àà  àà h àà À àà  àà p àà È àBilling€Code:€3510„33„PÌÌDEPARTMENT€OF€COMMERCEÌÌBureau€of€Export€AdministrationÌÌ15€CFR€Parts€732,€734,€740,€742,€744,€748,€770,€772€and€774ÌÌ[Docket€No.€001006282„0282„01]ÌÌRIN€0694„AC32ÌÌRevisions€to€Encryption€ItemsÌÌAGENCY:€€Bureau€of€Export€Administration,€CommerceÌÌACTION:€Final€RuleÌÔ‡XÂXX™XÔÌSUMMARY:Ô#†™XÂXXXÂâ#Ô€€This€rule€amends€the€Export€Administration€Regulations€(EAR)€and€implementsÐ P( #& Ðthe€July€17€White€House€announcement€to€streamline€the€export€and€reexport€of€encryption€itemsÏto€European€Union€(EU)€member€states,€Australia,€Czech€Republic,€Hungary,€Japan,€NewÏZealand,€Norway,€Poland€and€Switzerland€under€License€Exception€ENC.€€The€30„day€waitingÐ ð-@), Ðperiod€and€the€previous€distinction€between€government€and€non„government€end„users€areÏremoved€by€this€rule€for€these€destinations.€€This€rule€makes€further€revisions€and€clarificationsÏto€the€rule€published€on€January€14,€2000€including€changes€in€the€treatment€of€productsÏincorporating€short„range€wireless€technologies,€open€cryptographic€interfaces,€beta€testÏsoftware,€encryption€source€code,€and€U.S.€content€(òòde€minimisóó)€requirements.€€This€rule€alsoÐ è € Ðallows,€for€the€first€time,€exporters€to€self„classify€unilateral€controlled€encryption€products€(thatÏfall€under€Export€Control€Classification€Numbers€(ECCNs)€5A992,€5D992€and€5E992)€uponÏnotification€to€the€Bureau€of€Export€Administration€(BXA).€€Restrictions€on€exports€by€U.S.Ïpersons€to€terrorist„supporting€states€(Cuba,€Iran,€Iraq,€Libya,€North€Korea,€Sudan€or€Syria),€theirÏnationals€and€other€sanctioned€entities€are€not€changed€by€this€rule.ÌÌDATES:€€This€rule€is€effective€[INSERT€DATE€OF€PUBLICATION].€ÌÌFOR€FURTHER€INFORMATION€CONTACT:€James€A.€Lewis,€Director,€Office€of€StrategicÏTrade,€at€(202)€482„4196.ÌÌÔ‡XÂXX™XÂÔSUPPLEMENTARY€INFORMATION:Ð h$  ÐÌBACKGROUNDÌÌÔ#†™XÂXXX #ÔOn€July€17,€2000,€the€United€States€announced€further€updates€to€its€encryption€export€policyÐ è+€%( Ðcoinciding€with€the€recent€regulations€adopted€by€the€European€Union€which€ease€exports€amongÐ È-`'* Ð23€countries.€€This€action€is€consistent€with€the€Administrationððs€decision€to€ensure€that€U.S.Ïcompanies€are€not€disadvantaged€by€such€changes€and€will€be€able€to€compete€effectively€inÏthese€markets.€€Post„export€reports€were€examined€and€action€taken€for€the€requirements€to€moreÏaccurately€reflect€companiesðð€business€models.€€The€rule€further€streamlines€reexport€controls€byÏconsidering€certain€components€and€software€for€òòde€minimisóó€treatment.€€The€review€of€òòdeÐ è € Ðminimisóó€eligibility€will€take€into€account€national€security€interests.€€These€steps€continue€toÐ È`  Ðserve€the€full€range€of€national€interests:€promote€electronic€commerce,€support€law€enforcementÏand€national€security€and€protect€privacy.ÌÌSpecifically,€this€rule€amends€the€EAR€in€the€following€ways:ÌÌà  à1.€€In€ðð732.2€(Steps€Regarding€Scope€of€the€EAR)€conforming€changes€are€made€withÏrespect€to€òòde€minimisóó€consideration€for€encryption€items€controlled€under€ECCNs€5A002€andÐ è€ Ð5D002,€as€described€in€paragraph€(2)€below.ÌÌà  à2.€€In€ðð734.4€(òòDe€Minimisóó€U.S.€Content),€€software€controlled€under€ECCN€5D002Ð ˆ"  Ðeligible€for€export€under€the€ð ðretailðð€or€ð ðsource€codeðð€provisions€of€license€exception€ENC€andÏparts€and€components€controlled€under€ECCN€5A002€may€be€made€eligible€for€òòde€minimisóóÐ H&à" Ðtreatment€after€review€and€classification€by€BXA.€€As€a€result€of€this€change,€certain€U.S.€originÏencryption€items,€incorporated€into€foreign€products,€which€were€previously€prohibited€from€òòdeÐ * #& Ðminimisóó€consideration,€may€now€be€made€eligible€in€a€process€similar€to€that€used€now€for€retailÐ è+€%( Ðdeterminations.€€Examples€include€retail€operating€systems€and€desktop€applications€(e.g.€e„mail,Ð È-`'* Ðbrowsers,€games,€word€processing,€database,€financial€applications€or€utilities)€designed€for,Ïbundled€with,€or€pre„loaded€on€single€CPU€computers,€laptops,€hand„held€devices,€orÏcomponents€or€software€designed€for€use€in€retail€communication€devices€(e.g.€wireless€devicesÏor€smart€cards),€or€decontrolled€products.€€Exporters€applying€foròò€de€minimisóó€eligibility€mustÐ    Ðexplain€why€the€part€or€component€would€qualify€for€òòde€minimisóó€treatment€in€the€supportÐ è € Ðdocuments€included€with€the€classification€request.€€òòDe€minimisóó€eligibility€continues€to€apply€toÐ È`  Ðencryption€items€controlled€under€ECCNs€5A992,€5D992€and€5E992.€ÌÌà  à3.€€€ðð740.9€(Temporary€imports,€exports€and€reexports€(TMP)),€now€includes€encryptionÏsoftware€controlled€for€EI€reasons€under€ECCN€5D002€to€be€allowed€under€the€beta€testÏprovisions€of€License€Exception€TMP.€€The€exporter€must€provide€BXA€the€informationÏdescribed€in€Supplement€6€to€Part€742€by€the€time€of€export.€€Exporters€should€note€that€any€finalÏresulting€product€will€require€review€and€classification€under€the€provisions€of€ðð740.17.€€NamesÏand€addresses€of€the€testers,€except€individual€consumers,€and€the€name€and€version€of€the€betaÏsoftware€are€to€be€reported€every€six€months€consistent€with€ðð740.17(e)(5).€€Encryption€softwareÏcontrolled€under€ECCN€5D992€is€eligible€for€this€beta€test€provision.ÌÌà  à4.€€ðð740.13€(Technology€and€Software€Unrestricted€(TSU))€clarifies€the€treatment€of€openÏsource€object€code.€€Object€code€compiled€from€source€code€eligible€for€License€Exception€TSUÏcan€also€be€exported€under€the€provisions€of€License€Exception€TSU€if€the€requirements€ofÏðð740.13€are€met€and€no€fee€or€payment€is€required€for€object€code€(other€than€reasonable€andÏcustomary€fees€for€reproduction€and€distribution).€€Object€code€for€which€there€is€a€fee€orÐ È-`'* Ðpayment€can€be€exported€under€the€provisions€of€740.17(b)(4)(i).€€The€intent€of€this€section€is€toÏrelease€publicly€available€software€available€without€charge€(e.g.€ð ðfreewareðð)€from€control.€€AlsoÏin€ðð740.13,€crypt@bxa.doc.gov€address€is€added€to€prompt€exporters€to€notify€BXAÏelectronically.€€Ô‡XÂXX™XÂÔExporters€should€note€the€intent€of€the€phrase€ð ðreleased€from€EI€controlsðð€inÐ    Ð740.13(e)€means€that€5D002€software€eligible€for€TSU€is€released€from€the€mandatory€accessÏcontrols€procedures€described€in€734.2(b)(9)(ii).Ô#†™XÂXXXÂ#ÔÐ È`  ÐÌà  à5.€€In€ðð740.17€(Encryption€Commodities€and€Software€(ENC)),€language€is€added€toÏfurther€streamline€the€export€and€reexport€of€encryption€items€under€License€Exception€ENC€andÏto€parallel€the€changes€adopted€by€the€EU.€€Please€note€that€the€paragraph€numbering€wasÏchanged€in€this€section€to€simplify€the€structure€and€provide€for€more€changes€to€LicenseÏException€ENC.€€License€Exception€ENC€(Encryption€Commodities€and€Software)€is€revised€asÏfollows:ÌÌà  àà ` àa.€€ðð740.17€begins€with€an€introductory€paragraph€describing€the€commodity€andÏcountry€scope€of€License€Exception€ENC.ÌÌà  àà ` àb.€€ðð740.17(a)€adds€a€provision€to€allow€Ô‡XÂXX™XÂÔall€encryption€items,€except€forÐ H&à" Ðð ðcryptanalytic€products,ðð€as€specified€in€ECCN€5A002.a.2€and€the€software€and€technologyÏrelating€to€these€cryptanalytic€commoditiesÔ#†™XÂXXXÂx#ÔÔ‡XÂXX™XÂÔ€(defined€in€part€772),€to€be€exported€to€EU€memberÐ * #& Ðstates,€Australia,€Czech€Republic,€Hungary,€Japan,€New€Zealand,€Norway,€Poland€andÏSwitzerland€Ô#†™XÂXXXÂy#Ô(listed€in€Supplement€3€to€Part€740),€under€License€Exception€ENC€provided€theÐ È-`'* Ðexporter€has€submitted€to€BXA€a€completed€classification€request€by€the€time€of€export.€€ExportsÏand€reexports€to€foreign€subsidiaries€or€offices€of€firms,€organizations€and€governmentsÏheadquartered€in€Canada€or€in€the€above„listed€countries€for€internal€use€are€also€eligible€underÏthis€provision.€€ÌÌà  àà ` àc.€€ðð740.17(b)€adds€an€introductory€paragraph€for€the€provisions€set€out€underÏLicense€Exception€ENC€for€exports€to€countries€outside€of€those€listed€in€Supplement€3€to€partÏ740,€as€well€as€for€exports€and€reeexports€of€items€which€provide€an€open€cryptographicÏinterface.€ÌÌà  àà ` àd.€€ðð740.17(b)(1)€(Encryption€Items€to€U.S.€Subsidiaries)€is€revised€to€clarify€thatÏforeign€nationals,€who€may€not€be€permanent€employees€Ô‡XÂXX™XÂÔ(contractors,€interns,€etc.)€working€forÐ   ÐU.S.€companiesÔ#†™XÂXXXÂÈ##ÔÔ‡XÂXX™XÂÔ€are€eligible€to€receiveÔ#†™XÂXXXÂU$#ÔÔ‡XÂXX™XÂÔ€technology€controlled€under€ECCN€5E002€in€the€UnitedÐ è€ ÐStates€under€License€Exception€ENCÔ#†™XÂXXX¯$#ÔÔ‡XÂXX™XÂÔ.Ô#†™XÂXXXÂ]%#Ô€€Note€that€all€encryption€items€produced€or€developed€byÐ È` ÐU.S.€subsidiaries€continue€to€be€subject€to€the€EAR€and€require€review€and€classification€beforeÏany€sale€or€retransfer€outside€of€the€U.S.€company.ÌÌà  àà ` àe.€€In€ðð740.17(b)(2)(i)€(Encryption€Commodities€and€SoftwareÔ‡XÂXX™XÂÔ),€Ô#†™XÂXXXÂÛ&#Ôany€encryptionÐ H&à" Ðcommodity,€general€purpose€toolkit,€software€and€component€is€authorized€for€export€orÏreexport,€after€review€and€classification€by€BXA€under€ECCNs€5A002€and€5D002,€Ô‡XÂXX™XÂÔto€anyÐ * #& Ðindividual,€commercial€firm€or€other€non„government€end„user€located€outside€the€countriesÏlisted€in€Supplement€3€to€Part€740€Ô#†™XÂXXXÂè'#Ôunder€License€Exception€ENC.€€Exporters€should€note€that€aÐ È-`'* Ðlicense€is€still€required€for€exports€to€government€end„users€in€these€destinations.€€In€addition,€toÏfurther€streamline€License€Exception€ENC,€the€provisions€for€general€purpose€toolkits€is€movedÏfrom€paragraph€(a)(5)€to€this€paragraph€(b)(2)(i).ÌÌà  àà ` àf.€€In€ðð740.17(b)(2)(ii)€(Encryption€Commodities€and€Software),€to€simplify€theÏregulation,€the€paragraph€on€Internet€or€telecommunications€service€providers€was€deleted€andÏthe€part€relating€to€products€not€classified€as€retail€was€moved€to€this€paragraph.€€Note€thatÏInternet€and€telecommunications€service€providers€may€now€provide€services€to€the€governmentsÔ‡XÂXX™XÂÔÐ ˆ  Ðof€the€countries€listed€in€Supplement€3€to€Part€740Ô#†™XÂXXXÂ+#Ô€under€License€Exception€ENC.€€Such€exportsÐ h Ðpreviously€required€a€license€under€former€paragraph€(a)(4).€€Exporters€should€note€that€a€licenseÏis€still€required€for€exports€to€government€end„users€located€in€other€destinations.ÌÌà  àà ` àg.€€In€€ðð740.17(b)(3)€(Retail€Encryption€Commodities€and€Software),€LicenseÏException€ENC€is€revised€to€authorize,€without€prior€review€and€classification€or€reporting,€thoseÏitems€which€are€controlled€only€because€they€incorporate€components€providing€encryptionÏfunctionality€which€is€limited€to€short„range€wireless€encryption,€such€as€those€based€on€theÏBluetooth€and€Home€Radio€Frequency€(HomeRF)€specifications.€€Examples€of€such€productsÏinclude€audio€devices,€cameras€and€videos,€computer€accessories,€handheld€devices,€mobileÏphones€and€consumer€appliances€(e.g.,€refrigerators,€microwaves€and€washing€machines).€€TheÏpart€of€the€Internet€or€telecommunications€service€providers€paragraph€relating€to€obtaining€retailÏproducts€under€License€Exception€ENC€and€using€them€to€provide€service€to€any€entity€is€movedÏto€this€paragraph.€€As€a€result€of€this€revision,€former€paragraph€(a)(4)€(Internet€andÐ È-`'* ÐTelecommunications€Service€Providers)€is€removed.ÌÌà  àà ` àh.€€Additional€changes€are€made€under€ðð740.17(b)(3).€€In€paragraph€(i)(C),€Ô‡XÂXX™XÂÔaÐ ( À Ðclarification€is€made€to€allow€the€retail€provisions€to€include€anticipated€sales€by€changing€theÏphrase€ð ðsold€in€large€volumeðð€to€ð ðwhich€are€sold€or€will€be€sold€in€large€volumeÔ#†™XÂXXXÂh1#Ô.ðð€€To€furtherÐ è € Ðstreamline€the€encryption€controls,€exporters€may€now€export€and€reexport€finance„specificÏencryption€products€and€56„bit€products€(with€key€exchange€mechanisms€greater€than€512€bitsÏand€up€to€and€including€1024€bits)€immediately€after€submitting€a€completed€classificationÏrequest€to€BXA.€€As€a€result,€the€former€paragraphs€(a)(3)(vi)€and€(vii),€which€relate€to€theseÏitems,€are€combined€into€one€paragraph.€€ÌÌà  àà ` ài.€€ðð740.17(b)(4)€(Commercial€encryption€source€code)€is€revised€to€clarify€that€Ïobject€code€resulting€from€the€compiling€of€source€code€which€would€be€considered€publiclyÏavailable€and€eligible€for€export€under€License€Exception€ENC€or€TSU€can€also€be€exported€orÏreexported€under€ENC€if€the€requirements€of€ðð740.17(b)(4)(i)€are€otherwise€met.€€CommercialÏencryption€source€code€which€would€not€be€considered€publicly€available€may€now€be€exportedÏor€reexported€using€License€Exception€ENC€to€any€non„government€end„user€immediately€afterÏsubmitting€a€completed€classification€request.€€Requirements€for€source€code€containing€an€openÏcryptographic€interface€are€addressed€separately€in€paragraph€(b)(5).€€For€the€purpose€ofÏstreamlining€the€provisions€of€License€Exception€ENC,€references€to€general€purpose€toolkits€areÏremoved€and€are€now€addressed€in€ðð740.17(b)(2)€and€(c).ÌÐ È-`'* Ðà  àà ` àj.€€ðð740.17(b)(5)€(Cryptographic€interfaces)€is€added€to€authorize€the€export€andÏreexport€of€encryption€commodities,€software€and€components€which€provide€an€openÏcryptographic€interface€to€any€end„user€Ô‡XÂXX™XÂÔlocated€in€the€countries€listed€in€Supplement€3€to€PartÐ ( À Ð740Ô#†™XÂXXXÂË8#Ô€under€License€Exception€ENC.€€Exports€and€reexports€to€other€destinations€continue€toÐ    Ðrequire€a€license€except€to€subsidiaries€of€a€U.S.€company€for€their€internal€use.€€This€paragraphÏalso€permits€encryption€products€that€enable€foreign€developed€products€to€operate€with€U.S.Ïproducts€(e.g.€digitally€signing)€to€be€exported€or€reexported€to€any€eligible€end„user.€€TheÏforeign€ð ðenabledðð€product€is€not€subject€to€review,€however,€and€limited€reporting€is€required€asÏspecified€in€ðð740.17(e)(3).€Ìà  àà ` àÌà  àà ` àk.€€ðð740.17(c)€(Reexports€and€Transfers)€is€added€by€combining€the€transferÏprovisions€of€paragraph€(c)€with€former€paragraph€(d)€relating€to€exports€and€reexports€of€foreignÏproducts€incorporating€U.S.€encryption€source€code,€components€or€general€purpose€encryptionÏtoolkits,€former€paragraph€(h)€relating€to€distributors€and€resellers,€and€the€related€provisions€ofÏformer€paragraph€(b)(5)(iv).ÌÌà  àà ` àl.€€In€ðð740.17(d),(Eligibility€for€License€Exception€ENC),€conforming€changes€areÏmade€to€review€and€classification€requirements€and€grandfathering€provisions€to€take€intoÏaccount€the€new€policy€that€allows€most€exports€of€encryption€to€Ô‡XÂXX™XÂÔthe€countries€listed€inÐ ((À!$ ÐSupplement€3€to€Part€740Ô#†™XÂXXXÂ8>#Ô.€€Ð * #& ÐÌà  àà ` àm.€€In€ðð740.17(e)€(Reporting€requirements),€new€paragraphs€are€added€toÐ È-`'* Ðeliminate€€reporting€requirements€for€consumer€products€incorporating€short„range€wirelessÏencryption,€client€Internet€appliance€and€client€wireless€LAN€cards,€and€for€retail€operatingÏsystems€or€€desktop€applications€(e.g.,€browsers,€e„mail,€word€processing,€database,€games,Ïfinancial€€applications€or€utilities)€designed€for,€bundled€with,€or€preloaded€on€single€CPUÏcomputers€,€laptops€or€handheld€devices.€€In€addition,€a€new€paragraph€is€added€to€eliminateÏreporting€requirements€for€foreign€products€developed€by€bundling€or€compiling€of€source€code.€ÏThis€rule€clarifies€that€exporters€must€report€only€exports€to€subsidiaries€of€U.S.€companies€whenÏthe€U.S.€subsidiary€is€reselling€or€distributing€the€product.€€The€reporting€obligation€is€consistentÏwith€the€provisions€for€distributors€or€resellers.€€Lastly,€since€exporters€may€now€exportÏtechnology€to€the€countries€listed€in€Supplement€3€to€Part€740€under€License€Exception€ENC,€theÏsemi„annual€reports€require€the€name€and€address€of€the€manufacturer€using€the€technology€whenÏintended€for€use€in€foreign€products€developed€for€commercial€sale€and€a€non„proprietaryÏtechnical€description€of€what€is€being€developed€using€that€technology.€€For€further€streamlining,Ïthe€requirement€of€reporting€exports€to€Internet€and€telecommunication€service€providersÏimmediately€is€removed.€€These€exports€are€now€reported€consistent€with€the€semi„annual€timeÏframes.ÌÌà  àà ` àn.€€Remaining€reporting€requirements€are€streamlined€to€reflect€business€modelsÏnormally€used€by€exporters.€€Note€that€reporting€for€exports€and€reexports€of€encryptionÏcomponents€can€be€adjusted€or€reduced,€on€a€case„by„case€basis,€provided€an€exporter€suppliesÏBXA€with€sufficient€information€during€the€initial€technical€review€of€the€U.S.€encryptionÏcomponent€concerning€its€incorporation€in€a€final€foreign€product.€€Companies€should€requestÐ È-`'* Ðsuch€adjustments€or€reductions€from€BXA€to€ensure€that€reporting€requirements€reflect€theirÏbusiness€model.ÌÌà  àà ` ào.€€Supplement€No.€3€to€Part€740€is€created€to€identify€those€countries€which€areÏnow€eligible€for€the€expanded€treatment€under€License€Exception€ENC€based€on€the€new€policy.€ÌÌà  à6.€€ðð742.15€(Encryption€Items)€revises€the€licensing€policy€for€export€and€reexports€ofÏencryption€items,€as€follows:ÌÌà  àà ` àa.€€The€license€requirements€section€is€streamlined.ÌÌà  àà ` àb.€Combines€into€one€paragraph€(1)(i)€the€former€subparagraphs€whichÏindividually€described€the€eligibility€for€56„bit€encryption€items,€key€management€products€andÏ64„bit€mass€market€encryption€commodities€and€software.€€In€addition,€adds€a€provision€to€allowÏexporters€to€self„classify€these€encryption€items€under€ECCNs€5A992,€5D992,€and€5E992.€€AfterÏsubmitting€the€information€described€in€paragraphs€(a)€through€(e)€of€Supplement€6€to€part€742€toÏBXA,€these€encryption€items€may€be€exported€and€reexported€as€ð ðNLRðð€(No€License€Required).€ÏThis€submission€is€not€a€classification€and€no€response€is€required€from€BXA€for€shipment.€€ÌÌà  àà ` àc.€€Removes€the€requirement€that€all€products€developed€using€U.S.€encryptionÏitems€are€subject€to€the€EAR.€€This€clarifies€that€òòde€minimisóó€eligibility€applies€for€encryptionÐ è+€%( Ðcommodities€controlled€under€ECCNs€5A992,€5D992€and€5E992.€€In€addition,€BXA€may€apply,Ð È-`'* Ðon€a€case„by„case€basis,€€the€òòde€minimisóó€rule€to€foreign€products€incorporating€5A002€and€5D002Ð h Ðparts,€components€and€software€which€are€eligible€for€export€under€the€ð ðretailðð€or€ð ðsource€codeððÏprovisions€of€License€Exception€ENC.€€ÌÌà  àà ` àd.€€Adds€the€provision€that€any€end„user€Ô‡XÂXX™XÂÔlocated€in€the€countries€listed€inÐ è € ÐSupplement€3€to€Part€740Ô#†™XÂXXX N#Ô€is€eligible€to€receive€encryption€items€classified€by€BXA€under€ECCNsÐ È`  Ð5A002,€5D002€and€5E002.€€Exports€and€reexports€to€foreign€subsidiaries€or€offices€of€firms,Ïorganizations€and€governments€headquartered€in€the€above„listed€countries€are€also€eligible€underÏthis€provision.€ÌÌà  à7.€€Supplement€No.€6€to€Part€742€is€further€streamlined€to€provide€more€detailedÏguidelines€for€submitting€a€classification€request€for€encryption€items.ÌÌà  à8.€€ðð744.9€is€revised€to€expressly€provide€that€the€restrictions€imposed€by€that€section€doÏnot€prohibit€technical€assistance€abroad€by€U.S.€persons€in€connection€with€the€discussion€ofÏinformation€in€the€work€of€groups€or€bodies€engaged€in€standards€development.ÌÌà  à9.€€In€ðð748.3€(Classification€and€Advisory€Opinions),€is€revised€to€clarify€that€exportersÏmay€self„classify€5A992,€5D992€and€5E992€items€after€submitting€by€the€time€of€export€theÏinformation€described€in€paragraphs€1„5€of€Supplement€6€to€Part€742.ÌÌà  à10.€€In€ðð770.2€(Interpretation€14),€conforming€changes€are€made€to€regulatory€citations€.€Ð È-`'* Їà  à11.€€In€Part€772€(Definition€of€Terms),€the€definition€of€ð ðcryptanalytic€itemsðð€is€added.ÌÌà  à12.€€In€Part€774,€ECCNs€5A002,€5A992,€5D992,€and€5E992€are€revised€to€clarify€thatÏitems€previously€classified€under€5A002,€5D002€and€5E002€continue€to€be€controlled€for€AT1Ïreasons.ÌÌLicenses€required€for€export€or€reexports€to€governments€for€network€management€products€notÏclassified€as€retail€which€do€not€allow€for€encryption€of€data€by€the€network€users€may€beÏconsidered€favorably€for€civil€end„uses.ÌÌFor€further€clarity,€this€rule€makes€clear€that€the€seven€terrorist€designated€countries€are€notÏeligible€under€the€provisions€of€License€Exception€ENC.ÌÌBXA€received€a€number€of€comments€on€the€January€14€regulation€(65€FR€2492).€€TheseÏcomments€all€reflected€certain€common€themes:€that€the€regulation€was€too€complex;€that€theÏUnited€States€needed€to€match€any€EU€action;€that€reporting€should€be€reduced€or€eliminated€andÏthat€encryption€items€should€be€made€eligible€for€òòde€minimisóó€treatment.€€These€comments€wereÐ h$  Ðcarefully€considered€by€the€Interagency€Working€Group€on€Cryptography€in€the€development€ofÏthis€regulation,€and€a€number€of€the€concerns€are€explicitly€addressed€by€this€regulation.€€SectionÏ740.17€(License€Exception€ENC)€has€been€shortened€and€simplified.€€It€also€implements€aÏnumber€of€changes€to€streamline€U.S.€practice€and€bring€it€into€line€with€EU€licensing€practice.€ÏReporting€requirements€have€been€greatly€reduced€by€the€elimination€of€reporting€required€fromÐ È-`'* Ðforeign€subsidiaries€of€U.S.€firms€and€for€software€used€on€low€level€computers.€€Finally,€thisÏregulation€institutes€a€process€whereby€certain€retail€encryption€products€can€now€be€madeÏeligible€for€òòde€minimisóó€treatment.€€Ð ( À ÐÌAlthough€the€Export€Administration€Act€(EAA)€expired€on€August€20,€1994,€the€PresidentÏinvoked€the€International€Emergency€Economic€Powers€Act€and€continued€in€effect€the€EAR,Ïand,€to€the€extent€permitted€by€law,€the€provisions€of€the€EAA€in€Executive€Order€12924€ofÏAugust€19,€1994,€as€extended€by€the€President's€notices€of€August€15,€1995€(60€FR€42767),ÏAugust€14,€1996€(61€FR€42527),€August€13,€1997€(62€FR€43629),€August€13,€1998€(63€FRÏ44121),€August€10,€1999€(64€F.R.€44101),€and€AugustÔ‡XÂXX™XÂÔ€8,€2000€(65€FR€48347).€Ô#†™XÂXXXÂ\#ÔÐ Hà ÐÌRulemaking€RequirementsÌÌà  à1.€€This€final€rule€has€been€determined€to€be€significant€for€purposes€of€Executive€OrderÏ12866.ÌÌà  à2.€Ô‡XÂXX™XÂÔ€Ô#†™XÂXXXÂ]#ÔNotwithstanding€any€other€provision€of€law,€no€person€is€required€to€respond€to,€norÐ h$  Ðshall€any€person€be€subject€to€a€penalty€for€failure€to€comply€with€a€collection€of€information,Ïsubject€to€the€requirements€of€the€Paperwork€Reduction€Act€(PRA),€unless€that€collection€ofÏinformation€displays€a€currently€valid€OMB€Control€Number.€€This€rule€involves€collections€ofÏinformation€subject€to€the€Paperwork€Reduction€Act€of€1995€(44€U.S.C.€3501€òòet€seqóó.).€€TheseÐ è+€%( Ðcollections€have€been€approved€by€the€Office€of€Management€and€Budget€under€control€numbersÐ È-`'* Ð0694„0088,€Ô‡XÂXX™XÂÔð ðMulti„Purpose€Applicationðð€Ô#†™XÂXXXÂÕ_#ÔÔ‡XÂXX™XÂÔand€0694„0104,€ð ðÔ#†™XÂXXXÂ9`#ÔCommercial€Encryption€ItemsÐ h ÐTransferred€from€the€Department€of€State€to€the€Department€of€Commerce.ðð€€€Collection€0694„¼0088€Ô‡XÂXX™XÂÔcarries€a€burden€hour€estimate€of€45€minutes€per€manual€submission€and€40€Ð ( À Ðminutes€per€electronic€submission.€€Miscellaneous€and€recordkeeping€activities€account€for€12€Ìminutes€per€submission.Ô#†™XÂXXXÂ"a#Ô€€For€collection€0694„0104,€it€is€estimated€it€will€take€companies€5Ð è € Ðminutes€to€complete€notifications€for€source€code€under€License€Exceptions€TSU€and€ENC.€€ItÏwill€take€companies€15€minutes€to€complete€upgrade€notifications.€€For€reporting€under€LicenseÏException€ENC€and€licenses€for€encryption€items,€it€will€take€companies€8€hours€to€completeÏsemi„annual€reporting€requirements.€Ì€à  àÐ Hà Ðà  à3.€€This€rule€does€not€contain€policies€with€Federalism€implications€sufficient€to€warrantÏpreparation€of€a€Federalism€assessment€under€Executive€Order€13132.ÌÌà  à4.€€The€provisions€of€the€Administrative€Procedure€Act€(5€U.S.C.€553)€requiring€notice€ofÏproposed€Rulemaking,€the€opportunity€for€public€participation,€and€a€delay€in€effective€date,€areÏinapplicable€because€this€regulation€involves€a€military€and€foreign€affairs€function€of€the€UnitedÏStates€(Sec.€5€U.S.C.€553(a)(1)).€€Further,€no€other€law€requires€that€a€notice€of€proposedÏrulemaking€and€an€opportunity€for€public€comment€be€given€for€this€final€rule.€€Because€a€noticeÏof€proposed€rulemaking€and€an€opportunity€for€public€comment€are€not€required€to€be€given€forÏthis€rule€under€5€U.S.C.€553,€or€by€any€other€law,€the€analytical€requirements€of€the€RegulatoryÏFlexibility€Act€(5€U.S.C.€601€òòet€seq.óó€)€are€not€applicable.Ô‡XÂXX™XÂÔ€€Ô#†™XÂXXXÂ…g#ÔTherefore,€this€regulation€is€issued€inÐ è+€%( Ðfinal€form.€€Although€there€is€no€formal€comment€period,€public€comments€on€this€regulation€areÐ È-`'* Ðwelcome€on€a€continuing€basis.€€Comments€should€be€submitted€to€Kirsten€Mortimer,€Office€ofÏExporter€Services,€Bureau€of€Export€Administration,€Department€of€Commerce,€P.O.€Box€273,ÏWashington,€D.C.€20044.ÌÌà  àÔ‡XÂXX™XÂÔCopies€of€the€public€record€concerning€these€regulations€may€be€requested€from:€BureauÐ è € Ðof€Export€Administration,€Office€of€Administration,€U.S.€Department€of€Commerce,€Room€6883,Ï14th€and€Constitution€Avenue,€NW,€Washington,€DC€20230;€(202)€482„0637.€€This€componentÏdoes€not€maintain€a€separate€public€inspection€facility.€€Requesters€should€first€view€BXA'sÏwebsite€(which€can€be€reached€through€òòÔÿÔhttp://www.bxa.doc.govóóÔÿkÔ).€€If€requesters€cannot€accessÐ h ÐBXA's€website,€please€call€the€number€above€for€assistance.Ô#†™XÂXXXÂTi#ÔÐ Hà ÐÌÔ_ÔÔ_ÔList€of€SubjectsÌÌ15€CFR€Part€732,€740€and€748€Ìà  àAdministrative€practice€and€procedure,€Exports,€Foreign€trade,€Reporting€andÏrecordkeeping€requirements.€ÌÌ15€CFR€Part€734Ìà  àAdministrative€practice€and€procedure,€Exports,€Foreign€trade.ÌÌ15€CFR€Parts€742,€770,€772€and€774€Ìà  àExports,€Foreign€trade.Ð È-`'* ЇÌ15€CFR€Part€744Ìà  àExports,€Foreign€trade,€reporting€and€recordkeeping€requirements.ÌÌà  àAccordingly,€parts€732,€734,€740,€742,€744,€748,€770,€772€and€774€of€the€ExportÏAdministration€Regulations€(15€CFR€parts€730€through€799)€are€amended€as€follows:ÌÌà  àÔ2 eÔÚ  Ú1Ú  Ú.Ô3  Ô€The€authority€citation€for€parts€732,€748,€770,€and€772€are€revised€to€read€as€follows:€Ìà  àòòAuthorityóó:€50€U.S.C.€app.€2401€òòet€seqóó.;€50€U.S.C.€1701€òòet€seqóó.;€E.O.€12924,€59€FR€43437,Ð h Ð3€Ô_ÔCFRÔ_Ô,€1994€Comp.,€p.€917;€E.O.€13026,€61€FR€58767,€3€Ô_ÔCFRÔ_Ô,€1996€Comp.,€p.€228;Ô‡XÂXX™XÂÔ€Notice€ofÐ Hà ÐAugust€3,€2000€(65€FR€48347,€August€8,€2000).Ô#†™XÂXXXÂJp#ÔÐ (À ÐÌà  àÔ2 eÔÚ  Ú2Ú  Ú.Ô3  Ô€€The€authority€citation€for€part€734€continues€to€read€as€follows:€ÌÌà  àòòAuthorityóó:€50€U.S.C.€app.€2401€òòet€seqóó.;€50€U.S.C.€1701€òòet€seqóó.;€€E.O.€12924,€59€FRÐ ¨ @ Ð43437,€3€Ô_ÔCFRÔ_Ô,€1994€Comp.,€p.€917;€E.O.€12938,€59€FR€59099,€3€Ô_ÔCFRÔ_Ô,€1994€Comp.,€p.€950;€E.O.Ï13020,€61€FR€54079,€3€Ô_ÔCFRÔ_Ô,€1996€Comp.€p.€219;€E.O.€13026,€61€FR€58767,€3€Ô_ÔCFRÔ_Ô,€1996ÏComp.,€p.€228;Ô‡XÂXX™XÂÔ€Notice€of€Ô#†™XÂXXXÂ@s#Ô€November€12,€1998,€63€FR€63589,Ô‡™ôôX™XÂÔÔ‡ô}Ýôô™ôÔ€ÓB.°°` ¸ hÀpÈ xÐ (#°œXBÓÔ#†X·2Xôô}Ý­s#ÔÔ#†™XÂXXX·2Ìs#Ô3€Ô_ÔCFRÔ_Ô,€1998€Comp.,€p.€305;Ô‡XÂXX™XÂÔÐ H&à" ÐNotice€of€August€3,€2000€(65€FR€48347,€August€8,€2000).Ô#†™XÂXXX®t#ÔÐ ((À!$ ÐÌà  à€€Ô2 eÔÚ  Ú3Ú  Ú.Ô3  Ô€The€authority€citation€for€part€740€continues€to€read€as€follows:ÌÐ È-`'* Ðà  àòòAuthorityóó:€50€U.S.C.€app.€2401€òòet€seqóó.;€50€U.S.C.€1701€òòet€seqóó.;€E.O.€12924,€59€FR€43437,Ð h Ð3€Ô_ÔCFRÔ_Ô,€1994€Comp.,€p.€917;€E.O.€13026,€61€FR€58767,€3€Ô_ÔCFRÔ_Ô,€1996€Comp.,€p.€228;Ô‡XÂXX™XÂÔ€Notice€ofÐ Hà ÐAugust€3,€2000€(65€FR€48347,€August€8,€2000).Ô#†™XÂXXXÂw#ÔÐ ( À ÐÌà  àÔ2 eÔÚ  Ú4Ú  Ú.Ô3  Ô€€The€authority€citation€for€part€742€continues€to€read€as€follows:ÌÌà  àòòAuthorityóó:€50€U.S.C.€app.€2401€òòet€seqóó.;€50€U.S.C.€1701€òòet€seqóó.;€18€U.S.C.€2510€òòet€seqóó.;€22Ð ¨@  ÐU.S.C.€3201€òòet€seqóó.;€42€U.S.C.€2139a;€E.O.€12058,€43€FR€20947,€3€Ô_ÔCFRÔ_Ô,€1978€Comp.,€p.€179;Ð ˆ  ÐE.O.€12851,€58€FR€33181,€3€Ô_ÔCFRÔ_Ô,€1993€Comp.,€p.€608;€E.O.€12924,€59€FR€43437,€3€Ô_ÔCFRÔ_Ô,€1994ÏComp.,€p.€917;€E.O.€12938,€59€FR€59099,€3€Ô_ÔCFRÔ_Ô,€1994€Comp.,€p.€950;€E.O.€13026,€61€FRÏ58767,€3€Ô_ÔCFRÔ_Ô,€1996€Comp.,€p.€228;€Notice€of€November€12,€1998,€63€FR€63589,Ô‡™ôôX™XÂÔÔ‡ô}Ýôô™ôÔ€ÓB.°°` ¸ hÀpÈ xÐ (#°°XBÓÔ#†X·2Xôô}Ýäz#ÔÔ#†™XÂXXX·2{#Ô3€Ô_ÔCFRÔ_Ô,€1998Ð (À ÐComp.,€p.€305;Ô‡XÂXX™XÂÔ€Notice€of€August€3,€2000€(65€FR€48347,€August€8,€2000).Ô#†™XÂXXXÂù{#ÔÐ   ÐÌà  àÔ2 eÔÚ  Ú5Ú  Ú.Ô3  Ô€€The€authority€citation€for€part€744€continues€to€read€as€follows:ÌÌà  àòòAuthorityóó:€50€U.S.C.€app.€2401€òòet€seqóó.;€50€U.S.C.€1701€òòet€seqóó.;€22€U.S.C.€3201€òòet€seqóó.;€42Ð ˆ"  ÐU.S.C.€2139a;€E.O.€12058,€43€FR€20947,€3€Ô_ÔCFRÔ_Ô,€1978€Comp.,€p.€179;€E.O.€12851,€58€FR€33181,Ï3€Ô_ÔCFRÔ_Ô,€1993€Comp.,€p.€608;€E.O.€12924,€59€FR€43437,€3€Ô_ÔCFRÔ_Ô,€1994€Comp.,€p.€917;€E.O.€12938,Ï59€FR€59099,€3€Ô_ÔCFRÔ_Ô,€1994€Comp.,€p.€950;€E.O.€13026,€61€FR€58767,€3€Ô_ÔCFRÔ_Ô,€1996€Comp.,€p.Ï228;Ô‡XÂXX™XÂÔ€Ô#†™XÂXXXÂ]#ÔNotice€of€November€12,€1998,€63€FR€63589,Ô‡™ôôX™XÂÔÔ‡ô}Ýôô™ôÔ€ÓB.°°` ¸ hÀpÈ xÐ (#°°XBÓÔ#†X·2Xôô}ÝÉ#ÔÔ#†™XÂXXX·2è#Ô3€Ô_ÔCFRÔ_Ô,€1998€Comp.,€p.€305;Ô‡XÂXX™XÂÔ€Notice€of€AugustÐ * #& Ð3,€2000€(65€FR€48347,€August€8,€2000).Ô#†™XÂXXXÂÊ€#ÔÐ è+€%( ÐÐ È-`'* Ðà  àÔ2 eÔÚ  Ú6Ú  Ú.Ô3  Ô€€The€authority€citation€for€part€774€continues€to€read€as€follows:Ìà  àòòAuthorityóó:Ô‡XÂXX™XÂÔ€€50€U.S.C.€app.€2401€òòet€seqóó.;€50€U.S.C.€1701€òòet€seqóó.;€10€U.S.C.€7420;€10Ð Hà ÐU.S.C.€7430(e);€18€U.S.C.€2510€et€seq.;€22€U.S.C.€287c,€22€U.S.C.€3201€et€seq.,€22€U.S.C.€6004;Ï30€U.S.C.€185(s),€185(u);€42€U.S.C.€2139a;€42€U.S.C.€6212;€43€U.S.C.€1354;€46€U.S.C.€app.Ï466c;€50€U.S.C.€app.€5;€E.O.€12924,€59€FR€43437,€3€Ô_ÔCFRÔ_Ô,€1994€Comp.,€p.€917;€E.O.€13026,€61ÏFR€58767,€3€Ô_ÔCFRÔ_Ô,€1996€Comp.,€p.€228;€Notice€of€August€3,€2000€(65€FR€48347,€August€8,Ï2000).Ô#†™XÂXXXÂ-‚#Ôà  àà ` àà ¸ àà  àà h àà À àÐ ¨@  ÐÌò òPART€732€„€[AMENDED]Ð h ÐÌó óà  àÔ2 eÔÚ  Ú7Ú  Ú.Ô3  Ô€Section€732.2€is€amended€by€revising€paragraph€(d)€introductory€text€to€read€asÐ (À Ðfollows:ÌÌÌò òðð732.2€Steps€regarding€scope€of€the€EAR.ó óÐ ¨ @ Ðà  àÌÔ‡XÂXX™XÂÔ*€€€€€*€€€€€*€€€€€*€€€€€*Ô#†™XÂXXXÂ&†#ÔÐ h$  ÐÌà  àÔ‡XÂXX™XÂÔ(d)€€òòStep€4:€€Foreign„made€items€incorporating€less€than€the€de€minimis€level€of€U.S.Ð ((À!$ Ðparts,€components,€and€materials.óó€€This€step€is€appropriate€only€for€items€that€are€made€outsideÐ * #& Ðthe€United€States€and€not€currently€in€the€United€States.€€Note€that€encryption€items€controlledÏfor€EI€reasons€under€ECCNs€5A002,€5D002€or€5E002€on€the€Commerce€Control€List€(refer€toÐ È-`'* ÐSupplement€No.1€to€Part€774€of€the€EAR)€are€subject€to€the€EAR€even€if€they€incorporate€lessÏthan€the€òòde€minimisóó€level€of€U.S.€content.€€However,€exporters€may,€as€part€of€a€classificationÐ Hà Ðrequest,€ask€that€certain€5A002€and€5D002€parts,€components€and€software€also€be€made€eligibleÏfor€òòde€minimisóó€treatment€(see€ðð734.4(b)€of€the€EAR).Ô#†™XÂXXX£†#Ô€€The€review€of€òòde€minimisóó€eligibility€willÐ    Ðtake€into€account€national€security€interests.ÌÌÔ‡XÂXX™XÂÔ*€€€€€*€€€€€*€€€€€*€€€€€*Ô#†™XÂXXX€Š#ÔÐ ¨@  ÐÌÌà  àÔ2 eÔÚ  Ú8Ú  Ú.Ô3  Ô€Section€732.3€is€amended€by€revising€paragraph€(e)(2)€to€read€as€follows:ÌÌÔ‡X¯ XX™XÂÔðð€732.3€€Steps€regarding€the€ten€general€prohibitions.€Ô#†™XÂXXX¯ ‰‹#ÔÐ   ÐÌ*€€€€€*€€€€€*€€€€€*€€€€€*ÌÌà  à(e)€€òòStep€10:€€Foreign„made€items€incorporating€U.S.„origin€items€and€the€de€minimisÐ ˆ"  Ðruleóó.Ð h$  Ð*€€€€€*€€€€€*€€€€€*€€€€€*ÌÌà  àà ` à(2)€€òòGuidance€for€calculationsóó.€€For€guidance€on€how€to€calculate€the€U.S.„Ð * #& Ðcontrolled€content,€refer€to€Supplement€No.€2€to€part€734€of€the€EAR.€€Note€that€certain€rulesÏissued€by€the€Office€of€Foreign€Assets€Control,€certain€exports€from€abroad€by€U.S.„owned€orÐ È-`'* Ðcontrolled€entities€may€be€prohibited€notwithstanding€the€òòde€minimisóó€provisions€of€the€EAR.€€InÐ h Ðaddition,€the€òòde€minimisóó€exclusions€from€the€parts€and€components€rule€do€not€relieve€U.S.Ð Hà Ðpersons€of€the€obligation€to€refrain€from€supporting€the€proliferation€of€weapons€of€mass„¼destruction€and€missiles€as€provided€in€General€Prohibition€Seven€(U.S.€Person€ProliferationÏActivity)€described€in€ðð736.2(b)(7)€of€the€EAR.€€Ô‡XÂXX™XÂÔNote€that€encryption€items€controlled€for€EIÐ è € Ðreasons€under€ECCNs€5A002,€5D002€or€5E002€on€the€Commerce€Control€List€(refer€toÏSupplement€No.1€to€Part€774€of€the€EAR)€are€subject€to€the€EAR€even€if€they€incorporate€lessÏthan€the€òòde€minimisóó€level€of€U.S.€content.€€However,€exporters€may,€as€part€of€a€classificationÐ ˆ  Ðrequest,€ask€that€certain€5A002€and€5D002€parts,€components€and€software€also€be€made€eligibleÏforòò€de€minimisóó€treatment€(see€ðð734.4(b)€of€the€EAR).€Ô#†™XÂXXXÂ#ÔÐ Hà ÐÌò òÌó ó*€€€€€*€€€€€*€€€€€*€€€€€*ò òÐ è€ ÐÌÌPART€734€„€[AMENDED]ÌÌó óà  àÔ2 eÔÚ  Ú9Ú  Ú.Ô3  Ô€€Section€734.4€is€amended€by€revising€paragraph€(b)€to€read€as€follows:€Ð H&à" ÐÌò òðð734.4€De€minimis€U.S.€content.ó óÐ * #& ÐÌ*€€€€€*€€€€€*€€€€€*€€€€€*€Ð È-`'* Їà  à(b)€€There€is€no€òòde€minimisóó€level€for€items€controlled€for€EI€reasons€under€ECCNsÐ h Ð5A002,€5D002€and€5E002€absent€written€authorization€from€BXA.€€Exporters€may,€as€part€of€aÏclassification€request,€ask€that€software€controlled€under€ECCN€5D002€and€eligible€for€exportÏunder€the€"retail"€or€"source€code"€provisions€of€license€exception€ENC,€and€parts€andÏcomponents€controlled€under€ECCN€5A002,€be€made€eligible€for€òòde€minimisóó€treatment.€TheÐ è € Ðreview€of€òòde€minimisóó€eligibility€will€take€into€account€national€security€interests.Ð È`  ÐÌ*€€€€€*€€€€€*€€€€€*€€€€€*ÌÌà  àò òÌPART€740€„€[AMENDED]ó óÐ (À ÐÌà  àÔ2 e ÔÚ  Ú10Ú  Ú.Ô3  Ô€€Section€740.9€is€amended€œby€adding€a€sentence€at€the€end€of€paragraph€(c)(2)€and€by›Ïrevising€paragraphs€(c)(3)€and€(c)(4)(i)€to€read€as€follows:ÌÌò òðð740.9€Temporary€imports,€exports,€and€reexports€(TMP).ó óÐ ˆ"  ÐÌ*€€€€€*€€€€€*€€€€€*€€€€€*à ¸ àÐ H&à" ÐÌà  à(c)€òòExports€of€beta€test€softwareóó€€*€€€€€*€€€€€*Ð * #& ÐœÌà  àà ` à(2)€€*€€€€€*€€€€€*€ñ² ñ€ñ² ññ³ ñIn€addition,€encryption€software€under€ECCN€5D002€is€furtherÐ È-`'* Ðrestricted€from€being€exported€or€reexported€to€Cuba,€Iran,€Iraq,€Libya,€North€Korea,€Sudan€orÏSyria.€Ìñ³ ññ² ñEncryption€software€under€ECCN€5D002€may€not€be€exported€ñ® ñÐ È-`'* Ðunder€the€provisions€of€this€paragraph€(c)€ñ® ñto€either€añ° ñ€fully€ñ° ññ² ññ± ñnñ± ññ² ñ€embargoed€country€listed€in€part€746Ïor€ñ² ññ¯ ññ¦ ñañ¦ ññ¯ ññ² ñto€a€terrorist„supporting€country€as€described€in€part€742€of€tñ² ññ« ññ¨ ñeñ¨ ññ« ññ² ññ¬ ñhe€EARñ¬ ññ² ññ­ ññ¬ ñ.€€ñ¬ ññ­ ññ« ññª ñhñª ññ« ññ­ ñCuba,€Iran,€Iraq,€Libya,€North€Korea,€Sudan€or€Syria€and€embargoedÏcountrieñ¥ ñs€listed€in€part€746€of€the€EARñ¥ ññ­ ññ® ññ¥ ñ€ñ¥ ñunder€the€provisions€of€this€paragraph€(c)ñ® ññ² ñ.€ñ² ññ´ ñ›Ìñ´ ñ›Ìà  àà ` à(3)€€òòEligible€software.óó€€All€software€that€is€controlled€by€the€Commerce€ControlÐ    ÐList€(Supplement€No.1€to€part€774€of€the€EAR),€and€under€Commerce€licensing€jurisdiction,€isÏeligible€for€export€and€reexport,€subject€to€the€restrictions€of€this€paragraph€(c).€€EncryptionÏsoftware€controlled€for€EI€reasons€under€ECCN€5D002€is€eligible€for€export€and€reexport€underÏthis€paragraph€(c)€provided€the€exporter€has€submitted€by€the€time€of€export€the€informationÏdescribed€in€paragraphs€(a)€through€(e)€of€Supplement€6€to€Part€742€to€BXA,€with€a€copy€to€theÏENC€Encryption€Request€Coordinator.€€The€names€and€addresses€of€the€testing€consignees,Ïexcept€names€and€addresses€of€individual€consumers,€and€the€name€and€version€of€the€betaÏsoftware€should€be€reported€consistent€with€ðð740.17(e)(5).€€Any€final€product€must€be€reviewedÏand€classified€under€the€requirements€of€ðð740.17.Ô‡XÂXX™XÂÔÐ è€ ÐÌà  àà ` à(4)€€*€€€€€*€€€€€*ÌÌà  àà ` àÔ#†™XÂXXXÂvŸ#Ôà ¸ à(i)€€The€software€producer€intends€to€market€the€software€to€the€generalÐ h$  Ðpublic€after€completion€of€the€beta€testing,€as€described€in€the€General€Software€Note€found€inÏSupplement€2€to€Part€774€or€the€Cryptography€Note€in€Category€5„„Part€II€of€the€CommerceÏControl€List€(Supplement€No.1€to€part€774€of€the€EAR);ÌÌ*€€€€€*€€€€€*€€€€€*€€€€€*Ð È-`'* Їà  àÔ2 e ÔÚ  Ú11Ú  Ú.Ô3  Ô€€Section€740.13€is€amended€by€revising€paragraph€(e)€to€read€as€follows:€ÌÐ È-`'* Ðò òðð740.13€Technology€and€software€„€unrestricted€(TSU).ó óÐ h ÐÌ*€€€€€*€€€€€*€€€€€*€€€€€*ÌÌà  à(e)€òòUnrestricted€encryption€source€codeóó.€€Ô‡XÂXX™XÂÔ(1)Ô#†™XÂXXX³ #ÔÔ‡XÂXX™XÂÔ€Ô#†™XÂXXXÂø #ÔEncryption€source€code€controlled€underÐ ¨@  ÐECCN€5D002,€which€would€be€considered€publicly€available€under€ðð734.3(b)(3)€of€the€EAR€andÏwhich€is€not€subject€to€an€express€agreement€for€the€payment€of€a€licensing€fee€or€royalty€forÏcommercial€production€or€sale€of€any€product€developed€with€the€source€code€is€released€from€EIÏcontrols€and€may€be€exported€or€reexported€without€review€under€License€Exception€TSU,Ïprovided€you€have€submitted€written€notification€to€BXA€of€the€Internet€location€(e.g.,€URL€orÏInternet€address)€or€a€copy€of€the€source€code€by€the€time€of€export.€€Send€the€notification€toÏBXA€at€crypt@bxa.doc.gov€with€a€copy€to€ENC€Encryption€Request€Coordinator,€or€seeÏðð740.17(e)(5)€for€the€mailing€addresses.€€Intellectual€property€protection€(e.g.,€copyright,€patentÏor€trademark)€will€not,€by€itself,€be€construed€as€an€express€agreement€for€the€payment€of€aÏlicensing€fee€or€royalty€for€commercial€production€or€sale€of€any€product€developed€using€theÏsource€code.Ô‡XÂXX™XÂÔÐ H&à" ÐÌà  àà ` àÔ#†™XÂXXXÂ+¥#ÔÔ‡XÂXX™XÂÔ(2)€Ô#†™XÂXXX›¥#Ô€Object€code€resulting€from€the€compiling€of€source€code€which€would€beÐ * #& Ðconsidered€publicly€available€can€be€exported€under€TSU€if€the€requirements€of€this€section€areÏotherwise€met€and€no€fee€or€payment€(other€than€reasonable€and€customary€fees€for€reproductionÐ È-`'* Ðand€distribution)€is€required€for€the€object€code.€€See€ðð740.17(b)(4)(i)€for€the€treatment€of€objectÏcode€where€a€fee€or€payment€is€required.€€Ð È-`'* Їà  àà ` à(3)€You€may€not€knowingly€export€or€reexport€source€code€or€products€developedÏwith€this€source€code€to€Cuba,€Iran,€Iraq,€Libya,€North€Korea,€Sudan€or€Syria.ÌÌà  àà ` à(4)€Posting€of€the€source€code€or€corresponding€object€code€on€the€Internet€(e.g.,ÏFTP€or€World€Wide€Web€site)€where€it€may€be€downloaded€by€anyone€would€not€establishÏ"knowledge"€of€a€prohibited€export€or€reexport,€including€that€described€in€paragraph€(e)(2)€ofÏthis€section.€€In€addition,€such€posting€would€not€trigger€"red€flags"€necessitating€the€affirmativeÏduty€to€inquire€under€the€"Know€Your€Customer"€guidance€provided€in€Supplement€No.€3€to€partÏ732€of€the€EAR.€ÌÌà  àÔ2 e ÔÚ  Ú12Ú  Ú.Ô3  Ô€Section€740.17€is€revised€to€read€as€follows:ÌÌò òðð740.17€Encryption€commodities€and€software€(ENC).ó óÐ è€ ÐÌà  àLicense€Exception€ENC€authorizes€the€export€and€reexport€of€encryption€items€classifiedÏunder€ECCNs€5A002,€5D002€and€5E002.€€No€encryption€item(s)€may€be€exported€under€thisÏlicense€exception€to€Cuba,€Iran,€Iraq,€Libya,€North€Korea,€Sudan€or€Syria.€€Ô‡XÂXX™XÂÔReportingÐ h$  Ðrequirements€apply€to€exports€made€under€the€authority€of€License€Exception€ENC;€seeÏparagraph€(e)€of€this€section€for€these€requirements.Ô#†™XÂXXXÂ1«#ԀР((À!$ ÐÌà  à(a)€òòExports€and€reexports€of€encryption€itemsóó.€€Exports€and€reexports€of€encryption€itemsÐ è+€%( Ðclassified€under€ECCNs€5A002,€5D002€and€5E002€are€authorized€to€any€end„user€located€in€theÐ È-`'* Ðcountries€listed€in€Supplement€3€to€this€part€740,€except€for€exports€of€cryptanalytic€items€(asÏdefined€in€Part€772€of€the€EAR)€to€government€end„users.€€These€items€may€also€be€exported€orÏreexported€to€any€destination€for€the€internal€use€of€foreign€subsidiaries€or€offices€of€firms,Ïorganizations€and€governments€headquartered€in€Canada€or€in€countries€listed€in€Supplement€3€toÏthis€part€740.€Ô‡XÂXX™XÂÔÐ è € ÐÌà  à(b)€Ô#†™XÂXXX°®#ÔFor€all€other€countries,€you€may€export€and€reexport€encryption€commodities,Ð ¨@  Ðsoftware€and€components€(as€defined€in€part€772€of€the€EAR)€under€the€provisions€of€LicenseÏException€ENC€as€enumerated€in€this€section.€€For€exports€and€reexports€of€encryption€itemsÏwhich€contain€an€open€cryptographic€interface€(as€defined€in€part€772€of€the€EAR),€see€paragraphÏ(b)(5)€of€this€section.€€Ô‡XÂXX™XÂÔÐ (À ÐÌÔ#†™XÂXXX«°#Ôà  àà ` à(1)€òòEncryption€items€for€U.S.€subsidiariesóó.€Exports€and€reexports€of€anyÐ è€ Ðencryption€item€classified€under€ECCNs€5A002,€5D002€and€5E002€of€any€key€length€areÏauthorized€to€foreign€subsidiaries€of€U.S.€companies€(as€defined€in€part€772€of€the€EAR)€withoutÏreview€and€classification.€€This€includes€source€code€and€technology€for€internal€company€use,Ïsuch€as€the€development€of€new€products.€€License€Exception€ENC€also€authorizes€transfers€byÏU.S.€companies€of€encryption€technology€controlled€under€5E002€to€foreign€nationals€in€theÏUnited€States,€(except€nationals€of€Cuba,€Iran,€Iraq,€Libya,€North€Korea,€Sudan€or€Syria)€forÏinternal€company€use,€including€the€development€of€new€products.€€All€items€produced€orÏdeveloped€by€U.S.€subsidiaries€with€encryption€commodities,€software€and€technology€exportedÏunder€this€paragraph€are€subject€to€the€EAR€and€require€review€and€classification€before€any€saleÐ È-`'* Ðor€retransfer€outside€of€the€U.S.€company.ÌÌà  àà ` à(2)€€òòEncryption€commodities€and€softwareóó.€€(i)€Exports€and€reexports€of€anyÐ ( À Ðencryption€commodity,€general€purpose€toolkit,€software€and€component€are€authorized€afterÏreview€and€classification€by€BXA€under€ECCNs€5A002€and€5D002€to€any€individual,Ïcommercial€firm€or€other€non„government€end„user€€outside€the€countries€(except€Cuba,€Iraq,ÏIran,€Libya,€North€Korea,€Sudan€or€Syria)€listed€in€Supplement€3€to€this€part€740.€€EncryptionÏproducts€classified€under€this€paragraph€require€a€license€before€export€and€reexport€toÏgovernments€(as€defined€in€part€772€of€the€EAR)€outside€the€countries€listed€in€Supplement€3€toÏthis€part€740.€€The€restriction€limiting€exports€or€reexports€to€internal€company€proprietary€use€isÏremoved.€ÌÌà  àà ` àà ¸ à(ii)€Certain€restrictions€apply€to€Internet€and€telecommunications€serviceÏproviders.€€Internet€and€telecommunications€service€providers€can€obtain€and€use€any€encryptionÏproduct€for€their€internal€use€and€to€provide€any€service€under€License€Exception€ENC.€ÏHowever,€a€license€is€required€for€the€use€of€any€product€not€classified€as€retail€to€provideÏservices€specific€to€government€end„users€outside€the€countries€listed€in€Supplement€3€to€this€partÏ740,€e.g.,€WAN,€LAN,€VPN,€voice€and€dedicated-link€services;€application€specific€and€e„¼commerce€services€and€PKI€encryption€services€specifically€for€government€end„users.ÌÌà  àà ` à(3)€òòRetail€encryption€commodities€and€softwareóó.€Exports€and€reexports€to€anyÐ è+€%( Ðend„user€of€encryption€commodities,€software€and€components€are€authorized€after€review€andÐ È-`'* Ðclassification€by€BXA€as€retail€under€ECCNs€5A002€and€5D002.€€Encryption€products€exportedÏor€reexported€under€this€paragraph€(b)(3)€can€be€used€to€provide€services€to€any€entity.€€InternetÏor€telecommunications€service€providers€can€obtain€retail€products€under€License€ExceptionÏENC€and€use€them€to€provide€any€service€to€any€entity.€€Retail€encryption€commodities,€softwareÏand€components€are€products:€ÌÌà  àà ` àà ¸ à(i)€Generally€available€to€the€public€by€means€of€any€of€the€following:€ÌÌà  àà ` àà ¸ àà  à(A)€Soldòò€óóin€tangible€form€through€retail€outlets€independent€of€theÐ h Ðmanufacturer;€€Ìà  àà ` àà ¸ àà  à(B)€Specifically€designed€for€individual€consumer€use€and€sold€orÏtransferred€through€tangible€or€intangible€means;€orÌà  àà ` àà ¸ àà  à(C)€Which€are€sold€or€will€be€sold€in€large€volume€withoutÏrestriction€through€mail€order€transactions,€electronic€transactions,€or€telephone€call€transactions;Ïòòandóó€€Ð ¨ @ ÐÌà  àà ` àà ¸ à(ii)€Meeting€all€of€the€following:ÌÌà  àà ` àà ¸ àà  à(A)€The€cryptographic€functionality€cannot€be€easily€changed€byÏthe€user;Ìà  àà ` àà ¸ àà  à(B)€Substantial€support€is€not€required€for€installation€and€use;€ÌÐ È-`'* Ðà  àà ` àà ¸ àà  à(C)€The€cryptographic€functionality€has€not€been€modified€orÏcustomized€to€customer€specification;€andÌà  àà ` àà ¸ àà  à(D)€are€not€network€infrastructure€products€such€as€high€endÏrouters€or€switches€designed€for€large€volume€communications.€€ÌÌà  àà ` àà ¸ à(iii)€Subject€to€the€criteria€in€paragraphs€(b)(3)(i)€and€(ii)€of€this€section,Ïretail€encryption€products€include€(but€are€not€limited€to)€general€purpose€operating€systems€andÏtheir€associated€user„interface€client€software€or€general€purpose€operating€systems€withÏembedded€networking€and€server€capabilities;€non„programmable€encryption€chips€and€chips€thatÏare€constrained€by€design€for€retail€products;€low„end€routers,€firewalls€and€networking€or€cableÏequipment€designed€for€small€office€or€home€use;€programmable€database€management€systemsÏand€associated€application€servers;€low„end€servers€and€application„specific€servers€(includingÏclient„server€applications,€e.g.,€Secure€Socket€Layer€(SSL)„based€applications)€that€interfaceÏdirectly€with€the€user;€and€encryption€products€distributed€without€charge€or€through€free€orÏanonymous€downloads.ÌÌà  àà ` àà ¸ à(iv)€Encryption€products€and€network„based€applications€which€provideÏfunctionality€equivalent€to€other€encryption€products€classified€as€retail€will€be€considered€retail.€€ÌÌ€à  àà ` àà ¸ à(v)€56„bit€products€with€key€exchange€mechanisms€greater€than€512€bitsÐ * #& Ðand€up€to€and€including€1024€bits,€or€equivalent€products€not€classified€as€mass€market,€orÏfinance„specific€encryption€commodities€and€software€of€any€key€length€restricted€by€designÐ È-`'* Ð(e.g.,€highly€field„formatted€with€validation€procedures€and€not€easily€diverted€to€other€end„uses)Ïand€used€to€secure€financial€communications€such€as€electronic€commerce€may€be€exportedÏunder€the€retail€provisions€of€this€section€immediately€after€submitting€a€completed€classificationÏrequest€€to€BXA.ÌÌà  àà ` àà ¸ à(vi)€Items€which€would€be€controlled€only€because€they€incorporateÏcomponents€or€software€which€provide€short„range€wireless€encryption€functions€may€beÏexported€without€review€and€classification€by€BXA€and€without€reporting€under€the€retailÏprovisions€of€this€section.ÌÌà  àà ` à(4)€òòCommercial€encryption€source€codeóó.€Exports€and€reexports€of€encryptionÐ (À Ðsource€code€not€released€under€ðð740.13(e)€are€authorized€subject€to€the€following€provisions:ÌÌà  àà ` àà ¸ à(i)€Encryption€source€code€which€would€be€considered€publicly€availableÏunder€ðð734.3(b)(3)€of€the€EAR€and€which€is€subject€to€an€express€agreement€for€the€payment€of€aÏlicensing€fee€or€royalty€for€commercial€production€or€sale€of€any€product€developed€using€theÏsource€code€(or€object€code€resulting€from€compiling€of€any€encryption€such€source€code€whichÏwould€be€considered€publicly€available)€can€be€exported€or€reexported€using€License€ExceptionÏENC€to€any€end„user€without€review€and€classification€provided€you€have€submitted€to€BXAÏ(Ô‡XÂXX™XÂÔwith€a€copy€to€the€ENC€Encryption€Request€Coordinator)€by€the€time€of€export,Ô#†™XÂXXX‚Í#Ô€writtenÐ * #& Ðnotification€of€the€Internet€location€(e.g.€URL€or€Internet€address)€or€a€copy€of€the€source€code.€ÏYou€may€not€knowingly€export€or€reexport€source€code,€object€code€or€products€developed€withÐ È-`'* Ðthis€source€code€to€Cuba,€Iran,€Iraq,€Libya,€North€Korea,€Sudan€or€Syria.€€Posting€of€the€sourceÏcode€or€corresponding€object€code€on€the€Internet€(e.g.,€FTP€or€World€Wide€Web€site)€where€it€Ïmay€be€downloaded€by€anyone€would€not€establish€"knowledge"€of€a€prohibited€export€orÏreexport.€€In€addition,€such€posting€would€not€trigger€"red€flags"€necessitating€the€affirmativeÏduty€to€inquire€under€the€"Know€Your€Customer"€guidance€provided€in€Supplement€No.€3€to€partÏ732€of€the€EAR.€€ÌÌà  àà ` àà ¸ à(ii)€Encryption€source€code€which€would€not€be€considered€publiclyÏavailable€and€which€does€not€include€source€code€that€when€compiled€provides€an€openÏcryptographic€interface€(see€paragraph€(b)(5)€of€this€section),€may€be€exported€or€reexportedÏusing€License€Exception€ENC€to€any€individual,€commercial€firm€or€other€non„government€end„¼user€after€submitting€a€complete€classification€request€to€BXA€with€a€copy€to€the€ENCÏCoordinator.€€ÌÌà  àà ` à(5)€òòCryptographic€interfacesóó.€(i)€Exports€or€reexports€of€encryption€commodities,Ð ¨ @ Ðsoftware€and€components€which€provide€an€open€cryptographic€interface€(as€defined€in€part€772Ïof€the€EAR)€may€be€exported€under€License€Exception€ENC€to€any€end„user€located€in€anyÏcountry€listed€in€Supplement€3€to€this€part€740.€€Exports€or€reexports€to€other€destinations€ofÏencryption€commodities,€software€and€components€which€provide€an€open€cryptographicÏinterface€are€not€eligible€to€use€License€Exception€ENC€and€require€a€license€(unless€exported€toÏa€subsidiary€of€a€U.S.€company€under€paragraph€(b)(1)€of€this€section).€€This€does€not€apply€toÏsource€code€that€would€be€considered€publicly€available€under€ðð734.3(b)(3)€of€the€EAR.€Ð È-`'* Їà  àà ` àà ¸ à(ii)€Encryption€items€which€are€limited€to€allowing€foreign„developedÏcryptographic€products€to€operate€with€U.S.€products€(e.g.€signing)€can€be€exported€or€reexportedÏunder€License€Exception€ENC€to€any€end„user.€€Such€exports€are€subject€to€reportingÏrequirements€(see€paragraph€(e)(3)€of€this€section).€€No€review€of€the€foreign„developedÏcryptography€is€required.€Ìà  àà ` àÌà  à(c)€òòReexports€and€Transfersóó.€U.S.€or€foreign€distributors,€resellers€or€other€entities€whoÐ ¨@  Ðare€not€original€manufacturers€of€encryption€commodities€and€software€are€permitted€to€useÏLicense€Exception€ENC€only€in€instances€where€the€export€or€reexport€meets€the€applicableÏterms€and€conditions€of€this€section.€€Transfers€of€encryption€items€listed€in€paragraph€(b)€of€thisÏsection€to€government€end„users€or€end„uses€within€the€same€country€are€prohibited€unlessÏotherwise€authorized€by€license€or€license€exception.€€Foreign€products€developed€with€orÏincorporating€U.S.„origin€encryption€source€code,€components€or€toolkits€remain€subject€to€theÏEAR€but€do€not€require€review€and€classification€by€BXA€and€can€be€exported€or€reexportedÏwithout€further€authorization.€€ÌÌà  à(d)€òòEligibility€for€License€Exception€ENCóó.€€(1)€òòReview€and€classificationóó.€You€mayÐ h$  Ðinitiate€review€and€classification€of€your€encryption€items€as€required€by€this€section€byÏsubmitting€a€classification€request€in€accordance€with€the€provisions€of€ðð748.3(b)€andÏSupplement€6€to€Part€742€of€the€EAR.€€Indicate€ð ðLicense€Exception€ENCðð€in€Block€9:€SpecialÏpurpose,€on€form€BXA„748P.€€Submit€the€original€request€to€BXA€€and€send€a€copy€of€theÏrequest€to€ENC€Encryption€Request€Coordinator€(see€paragraph€(e)(5)€of€this€section€for€mailingÐ È-`'* Ðaddresses).€ÌÌà  àà ` àà ¸ à(i)€Exporters€may€immediately€export€and€reexport€any€encryption€itemÏexcept€ð ðcryptanalytic€itemsðð€as€defined€in€part€772€of€the€EAR€to€any€end„user€located€in€theÏcountries€listed€in€Supplement€3€to€this€part€740€provided€the€exporter€has€submitted€to€BXA€aÏcompleted€classification€request€Ô‡XÂXX™XÂÔby€the€time€of€exportÔ#†™XÂXXXÂxÞ#Ô.Ð È`  ÐÌà  àà ` àà ¸ à(ii)€Exporters€may,€thirty€days€after€receipt€of€a€completed€classificationÏrequest€by€BXA,€export€and€reexport€to€any€non„government€end„user€located€outside€theÏcountries€listed€in€Supplement€3€to€this€part€740€any€encryption€product€eligible€under€paragraphÏ(b)(2),€(b)(3)€or€(b)(4)€of€this€section€unless€otherwise€notified€by€BXA.€€No€exports€toÏgovernment€end„users€located€outside€of€countries€listed€in€Supplement€3€to€this€part€740€areÏallowed€under€this€provision.€€BXA€reserves€the€right€to€suspend€eligibility€to€export€under€thisÏprovision€while€a€classification€is€pending.€ÌÌà  àà ` à(2)€òòGrandfatheringóó.€€Finance„specific€and€56„bit€products€previously€reviewed€andÐ ˆ"  Ðclassified€by€BXA€can€be€exported€and€reexported€to€any€end„user€without€further€review.€€OtherÏencryption€commodities,€software€or€components€previously€approved€for€export€can€be€exportedÏand€reexported€without€further€review€to€any€end„user€in€countries€listed€in€Supplement€3€to€thisÏpart€740€countries€and€to€any€non„government€end„user€outside€of€the€countries€listed€inÏSupplement€3€to€this€part€740.€€This€includes€products€approved€under€a€license,€an€EncryptionÏLicensing€Arrangement,€or€classified€as€eligible€to€use€License€Exception€ENC€(except€for€thoseÐ È-`'* Ðproducts€which€were€only€authorized€for€export€to€U.S.€subsidiaries).€€Exports€of€products€notÏclassified€by€BXA€as€ð ðretailðð€to€governments€of€countries€not€listed€in€Supplement€3€to€this€partÏ740€require€a€license.€ÌÌà  àà ` à(3)€òòKey€length€increasesóó.€€Exporters€can€increase€the€key€lengths€of€previouslyÐ è € Ðclassified€products€and€continue€to€export€without€another€review.€€No€other€change€in€theÏcryptographic€functionality€is€allowed.ÌÌà  àà ` àà ¸ à(i)€Any€product€previously€classified€as€5A002€or€5D002€can,€with€anyÏupgrade€to€the€key€length€used€for€confidentiality€or€key€exchange€algorithms,€be€exported€orÏreexported€under€provisions€of€License€Exception€ENC€to€any€non„government€end„user€withoutÏan€additional€review.€€Another€classification€is€necessary€to€determine€eligibility€as€a€ð ðretailððÏproduct€under€paragraph€(b)(3)€of€this€section.Ìà  àÌà  àà ` àà ¸ à(ii)€Exporters€must€certify€to€BXA€in€a€letter€from€a€corporate€official€thatÏthe€only€change€to€the€encryption€product€is€the€key€length€for€confidentiality€or€key€exchangeÏalgorithms€and€there€is€no€other€change€in€cryptographic€functionality.€€Certifications€mustÏinclude€the€original€authorization€number€issued€by€BXA€and€the€date€of€issuance.€€BXA€mustÏreceive€this€certification€prior€to€any€export€of€an€upgraded€product.€€The€certification€should€beÏsent€to€BXA,€with€a€copy€sent€to€the€ENC€Encryption€Request€Coordinator€(see€paragraph€(e)(5)Ïof€this€section€for€mailing€addresses).ÌÐ È-`'* Ðà  à(e)€òòReporting€requirementsóó.€à h à(1)€No€reporting€is€required€for€exports€of:€Ð h Ðà0  àà ` àà ¸ à(i)€Any€encryption€to€U.S.€subsidiaries€for€internal€company€use;Ð (#(# Ðà  àà ` àà ¸ à(ii)€Finance„specific€products;Ìà  àà ` àà ¸ à(iii)€Encryption€commodities€or€software€with€a€symmetric€key€length€notÏexceeding€64€bits€or€otherwise€classified€as€qualifying€for€mass€market€treatment;Ìà  àà ` àà ¸ à(iv)€Retail€products€exported€to€individual€consumers;€Ìà  àà ` àà ¸ à(v)€Items€exported€via€free€or€anonymous€download;€Ìà  àà ` àà ¸ à(vi)€Encryption€items€from€or€to€a€U.S.€bank,€financial€institution€or€theirÏsubsidiaries,€affiliates,€customers€or€contractors€for€banking€or€financial€operations;Ìà  àà ` àà ¸ à(vii)€Items€which€incorporate€components€limited€to€providing€short„rangeÏwireless€encryption€functions;à h àÐ (À Ðà  àà ` àà ¸ à(viii)€Retail€operating€systems,€or€desktop€applications€(e.g.€e„mail,Ïbrowsers,€games,€word€processing,€data€base,€financial€applications€or€utilities)€designed€for,Ïbundled€with,€or€pre„loaded€on€single€CPU€computers,€laptops€or€hand„held€devices;€€Ìà  àà ` àà ¸ à(ix)€Client€Internet€appliance€and€client€wireless€LAN€cards;Ìà  àà ` àà ¸ à(x)€Foreign€products€developed€by€bundling€or€compiling€of€source€code.ÌÌà  àà ` à(2)€Exporters€must€provide€all€available€information€as€follows:Ìà  àà ` àà ¸ à(i)€For€items€exported€to€a€distributor€or€other€reseller,€includingÏsubsidiaries€of€U.S.€firms,€the€name€and€address€of€the€distributor€or€reseller,€the€item€and€theÏquantity€exported€and,€if€collected€as€part€of€the€distribution€process€by€the€exporter,€the€end„¼userððs€name€and€address;€Ð È-`'* Ðà  àà ` àà ¸ à(ii)€For€items€exported€through€direct€sale,€the€name€and€address€of€theÏrecipient,€the€item,€and€the€quantity€exported€(except€for€retail€products€if€the€end„user€is€anÏindividual€consumer);€andÌà  àà ` àà ¸ à(iii)€For€exports€of€5E002€items€to€be€used€for€technical€assistance€andÏwhich€are€not€released€by€ðð744.9€of€the€EAR,€the€name€and€address€of€the€end„user.ÌÌà  àà ` à(3)€For€direct€sales€or€transfers€of€encryption€components,€commercial€sourceÏcode€described€under€paragraph€(b)(4)€of€this€section,€technology€or€general€purpose€encryptionÏtoolkits€to€foreign€manufacturers€when€intended€for€use€in€foreign€products€developed€forÏcommercial€sale,€you€must€submit€the€names€and€addresses€of€the€manufacturers€using€theseÏitems€and,€when€the€product€is€made€available€for€commercial€sale,€a€non„proprietary€technicalÏdescription€of€the€foreign€products€for€which€the€component,€source€code€or€toolkit€are€beingÏused€(e.g.,€brochures,€other€documentation,€descriptions€or€other€identifiers€of€the€final€foreignÏproduct;€the€algorithm€and€key€lengths€used;€general€programming€interfaces€to€the€product,€ifÏknown;€any€standards€or€protocols€that€the€foreign€product€adheres€to;€and€source€code,€ifÏavailable.).ÌÌà  àà ` à(4)€Exporters€of€encryption€commodities,€software€and€components€which€wereÏpreviously€classified€under€License€Exception€ENC,€or€which€have€been€licensed€for€exportÏunder€an€Encryption€Licensing€Arrangement,€must€comply€with€the€reporting€requirements€ofÏthis€section.ÌÐ È-`'* Ðà  àà ` à(5)€€You€must€submit€reports€required€under€this€section€semi„annually€to€BXA,Ïunless€otherwise€provided€in€this€paragraph€(e)(5).€€For€exports€occurring€between€January€1€andÏJune€30,€a€report€is€due€no€later€than€August€1€of€that€year.€€For€exports€occurring€between€July€1Ïand€December€31,€a€report€is€due€no€later€than€February€1€the€following€year.€€Reports€mustÏinclude€the€classification€or€other€authorization€number.€€These€reports€must€be€provided€inÏelectronic€form€to€BXA;€suggested€file€formats€for€electronic€submission€include€spreadsheets,Ïtabular€text€or€structured€text.€€Exporters€may€request€other€reporting€arrangements€with€BXA€toÏbetter€reflect€their€business€models.€€Reports€should€be€sent€electronically€to€crypt@bxa.doc.gov,Ïor€disks€and€CDs€can€be€mailed€to€the€following€addresses:ÌÌà  àà ` àà ¸ à(i)à  àDepartment€of€CommerceÐ (À Ðà  à€€€€€à ` àà ¸ àà  àBureau€of€Export€AdministrationÐ   Ðà  à€€€€€à0 ` àà ¸ àà  àOffice€of€Strategic€Trade€and€Foreign€Policy€ControlsÐè€` (#` (# Ðà  à€€€à ` àà ¸ àà  à14th€Street€and€Pennsylvania€Ave.,€N.W.,€€Room€2705Ð È` Ðà  à€€€€€à ` àà ¸ àà  àWashington,€D.C.€€20230Ð ¨ @ Ðà  à€€€€€à ` àà ¸ àà  àAttn:€Encryption€ReportsÐ ˆ"  ÐÌà  àà ` àà ¸ à(ii)€à  àA€copy€of€the€report€should€be€sent€to:Ð H&à" Ðà  à€€€à ` àà ¸ àà  à€€€Attn:€ENC€Encryption€Request€CoordinatorÐ ((À!$ Ðà  à€€€€€€à ` àà ¸ àà  à9800€Savage€Road,€Suite€6131Ð * #& Ðà  à€€€€€à ` àà ¸ àà  àFt.€Meade,€MD€€20755„6000Ð è+€%( ÐÐ È-`'* Їà  àÌÌÔ‡XÂXX™XÂÔÌà  àÔ2 e ÔÚ  Ú13Ú  Ú.Ô3  Ô€€A€new€Supplement€No.€3€is€added€to€Part€740Ô#†™XÂXXXÂ#ÔÔ‡XÂXX™XÂÔ€to€read€as€follows:Ð    ÐÌò òSupplement€No.€3€to€Part€740€„€License€Exception€ENC€Country€Groupó óÐ È`  ÐÌAustriaà ` àà ¸ àà  àà h àà À àà  àÐ ˆ  ÐAustraliaà ` àà ¸ àà  àÐ h ÐBelgiumà ` àà ¸ àà  àà h àà À àà  àÐ Hà ÐCzech€RepublicÌDenmarkà ` àà ¸ àà  àà h àà À àà  àÐ   ÐFinlandÌFranceà  àà ` àà ¸ àà  àà h àà À àà  àÐ È` ÐGermanyÌGreeceà ` àà ¸ àà  àà h àà À àà  àÐ ˆ"  ÐHungaryÌIrelandà ` àà ¸ àà  àà h àà À àà  àÐ H&à" ÐItalyÌJapanà  àà ` àà ¸ àà  àà h àà À àà  àÐ * #& ÐLuxembourgÌNetherlandsà ` àà ¸ àà  àà h àà À àà  àÐ È-`'* ÐNew€ZealandÌNorwayà ` àà ¸ àà  àà h àà À àà  àÐ Hà ÐPolandÌPortugalà ` àà ¸ àà  àà h àà À àà  àÐ    ÐSpainÌSwedenà ` àà ¸ àà  àà h àà À àà  àÐ È`  ÐSwitzerlandÌUnited€KingdomÔ#†™XÂXXXÂ×#ÔÔ‡XÂXX™XÂÔÐ ˆ  ÐÔ#†™XÂXXX±#ÔÌÌò òPART€742€„€[AMENDED]ó óÐ (À ÐÌà  àÔ2 e ÔÚ  Ú14Ú  Ú.Ô3  Ô€Section€742.15€is€amended€by€revising€paragraphs€(a),€and€(b)€introductory€œteñx ñsñx ññy ñxñy ñt,›Ï(b)(1),€and€(b)(2)€€to€read€as€follows:ÌÌò òðð742.15€€Encryption€items.ó óÐ ˆ"  ÐÌ*€€€€*€€€€*€€€€*€€€€*€€€€ÌÌÔ‡XÂXX™XÂÔà  à(a)€òòLicense€requirementsóó.Ô#†™XÂXXXÂl#Ô€€Licenses€are€required€for€exports€and€reexports€of€encryptionÐ * #& Ðitems€(EI)€classified€under€ECCNS€5A002,€5D002€and€5E002€to€all€destinations€except€Canada.€ÏRefer€to€part€740€of€the€EAR€for€licensing€exceptions€and€to€Part€772€of€the€EAR€for€theÐ È-`'* Ðdefinition€of€ð ðencryption€items.ððÔ‡XÂXX™XÂÔÐ h ÐÌà  à(b)€òòLicensing€policyóó.Ô#†™XÂXXX #Ô€The€following€licensing€policies€apply€to€items€identified€inÐ ( À Ðparagraph€(a)€of€this€section.€€Except€as€otherwise€noted,€applications€will€be€reviewed€on€a€case„¼by„case€basis€by€BXA,€in€conjunction€with€other€agencies,€to€determine€whether€the€export€orÏreexport€is€consistent€with€U.S.€national€security€and€foreign€policy€interests.€€For€subsequentÏbundling€and€updates€of€these€items€see€paragraph€(n)€of€ðð770.2€of€the€EAR.€€No€exports€withoutÏa€license€€are€authorized€to€Cuba,€Iran,€Iraq,€Libya,€North€Korea,€Sudan€or€Syria.€ÌÌà  àà ` à(1)€òòEncryption€items€under€ECCNs€5A992,€5D992€and€5E992óó.€Certain€encryptionÐ Hà Ðcommodities,€software€and€technology€may€be€classified€under€ECCNs€5A992,€5D992€or€5E992.€ÏThese€items€continue€to€be€subject€to€AT1€controls.€€Such€items€include€encryption€commodities,Ïsoftware€and€technology€with€key€lengths€up€to€and€including€56„bits€with€an€asymmetric€keyÏexchange€algorithm€not€exceeding€512€bits;€products€which€only€provide€key€management€withÏasymmetric€key€exchange€algorithms€not€exceeding€512€bits;€and€mass€market€encryptionÏcommodities€and€software€with€key€lengths€not€exceeding€64„bits€for€the€symmetric€algorithm.€ÏRefer€to€the€Cryptography€Note€(Note€3)€to€part€II€of€Category€5€of€the€CCL€for€a€definition€ofÏmass€market€encryption€commodities€and€software.€€Key€exchange€mechanisms,€proprietary€keyÏexchange€mechanisms,€or€company€proprietary€commodities€and€software€implementations€mayÏalso€be€eligible€for€this€treatment.€€Exporters€may€self„classify€such€5A992,€5D992€or€5E992Ïitems€and€export€them€without€review€and€classification€by€BXA€provided€you€have€submitted€toÏBXA€and€the€ENC€Encryption€Request€Coordinator€by€the€time€of€export€the€informationÐ È-`'* Ðdescribed€in€paragraphs€(a)€through€(e)€of€Supplement€6€to€this€part€742.€€Notification€should€beÏmade€by€e„mail€to€crypt@bxa.doc.gov.ÌÌà  àà ` à(2)€òòEncryption€items€under€ECCNs€5A002,€5D002€and€5E002óó.€€All€encryptionÐ    Ðcommodities,€software€and€components€classified€by€BXA€under€ECCNs€5A002,€5D002€andÏ5E002€except€cryptanalytic€items€are€authorized€for€export€and€reexport€to€any€end„user€in€theÏcountries€listed€in€Supplement€3Ô‡XÂXX™XÂÔÔ‡L+ LXXÂÔ€to€Part€740€of€the€EAR.€€Ô#†™L+ LLL+ |#ÔÔ#†™XÂXL™L+ ›#ÔItems€classified€by€BXA€as€retailÐ ¨@  Ðproducts€under€ECCNs€5A002€and€5D002ò ò€ó óare€authorized€for€export€and€reexport€to€any€end„user.Ð ˆ  ÐAll€5A002,€5D002€and€5E002€encryption€items€are€authorized€for€export€or€reexport€to€anyÏindividual,€commercial€firm€or€other€non„government€end„user€in€countries€not€listed€inÏSupplement€3€to€Part€740€of€the€EAR.€€No€exports€of€such€items€are€authorized€without€a€licenseÏto€Cuba,€Iran,€Iraq,€North€Korea,€Libya,€Sudan€or€Syria.€€Any€encryption€item€(includingÏtechnology€classified€under€ECCN€5E002)€is€authorized€for€export€or€reexport€to€U.S.Ïsubsidiaries€(as€defined€in€part€772).ÌÔ‡XÂXX™XÂÔÌ*€€€€*€€€€*€€€€*€€€€*ÌÔ#†™XÂXXX­#ÔÌà  àÔ2 eÔÚ  Ú15Ú  Ú.Ô3  Ô€€Supplement€No.€6€to€part€742€is€revised€to€read€as€follows:ÌÌò òSupplement€No.€6€to€Part€742€„€Guidelines€for€Submitting€a€Classification€Request€forÐ * #& ÐEncryption€Items€ó óÐ è+€%( ÐÐ È-`'* Ðà  àClassification€requests€for€encryption€items€must€be€submitted€on€Form€BXA„748P,€inÏaccordance€with€ðð748.3€of€the€EAR.€€Insert€the€phrase€"License€Exception€ENC"€€in€Block€9:ÏSpecial€Purpose€in€Form€BXA„748P.€€Failure€to€insert€this€phrase€will€delay€processing.€€€BXAÏrecommends€that€such€requests€be€delivered€via€courier€service€to:€Bureau€of€ExportÏAdministration,€Office€of€Exporter€Services,€Room€2705,€14th€Street€and€Pennsylvania€Ave.,ÏN.W.€Washington,€D.C.€20230.€€€For€electronic€submissions€via€SNAP,€you€may€fax€a€copy€ofÏthe€support€documents€to€BXA€at€(202)€501„0784.€€In€addition,€you€must€send€a€copy€of€theÏclassification€request€and€all€support€documents€to:€Attn:€ENC€Encryption€Request€Coordinator,Ï9800€Savage€Road,€Suite€6131,€Fort€Meade,€MD€20755„6000.€€For€all€classification€requests€ofÏencryption€items€provide€brochures€or€other€documentation€or€specifications€related€to€theÏtechnology,€commodity€or€software,€relevant€product€descriptions,€architecture€specifications,Ïand€as€necessary€for€the€technical€review,€source€code.€€Also,€indicate€any€prior€reviews€andÏclassifications€of€the€product,€if€applicable€to€the€current€submission.€€Provide€the€followingÏinformation€in€a€cover€letter€with€the€classification€request:ÌÌà  à(a)€State€the€name€of€the€encryption€item€being€submitted€for€review.ÌÌà  à(b)€State€that€a€duplicate€copy€has€been€sent€to€the€ENC€Encryption€Request€Coordinator.ÌÌÔ‡XÂXX™XÂÔà  à(c)€For€classification€request€for€a€commodity€or€software,€provide€the€followingÐ * #& Ðinformation:ÌÐ È-`'* Ðà  àà ` à(1)€Description€of€all€the€symmetric€and€asymmetric€encryption€algorithms€andÏkey€lengths€and€how€the€algorithms€are€used.€€Specify€which€encryption€modes€are€supportedÏ(e.g.,€cipher€feedback€mode€or€cipher€block€chaining€mode).ÌÌà  àà ` à(2)€State€the€key€management€algorithms,€including€modulus€sizes,€that€areÏsupported.ÌÌà  àà ` à(3)€For€products€with€proprietary€algorithms,€include€a€textual€description€and€theÏsource€code€of€the€algorithm.ÌÌà  àà ` à(4)€Describe€the€pre„processing€methods€(e.g.,€data€compression€or€dataÏinterleaving)€that€are€applied€to€the€plaintext€data€prior€to€encryption.€ÌÌà  àà ` à(5)€Describe€the€post„processing€methods€(e.g.,€packetization,€encapsulation)€thatÏare€applied€to€the€cipher€text€data€after€encryption.ÌÌà  àà ` à(6)€State€the€communication€protocols€(e.g.,€X.25,€Telnet€or€TCP)€and€encryptionÏprotocols€(e.g.,€SSL,€IPSEC€or€PKCS€standards)€that€are€supported.ÌÌà  àà ` à(7)€Describe€the€encryption„related€Application€Programming€Interfaces€(APIs)Ïthat€are€implemented€and/or€supported.€€Explain€which€interfaces€are€for€internal€(private)€and/orÏexternal€(public)€use.Ð È-`'* Їà  àà ` à(8)€Describe€whether€the€cryptographic€routines€are€statically€or€dynamicallyÏlinked,€and€the€routines€(if€any)€that€are€provided€by€third„party€modules€or€libraries.€€Identify€theÏthird„party€manufacturers€of€the€modules€or€toolkits.ÌÌà  àà ` à(9)€For€commodities€or€software€using€Java€byte€code,€describe€the€techniquesÏ(including€obfuscation,€private€access€modifiers€or€final€classes)€that€are€used€to€protect€againstÏdecompilation€and€misuse.€ÌÌà  àà ` à(10)€State€how€the€product€is€written€to€preclude€user€modification€of€theÏencryption€algorithms,€key€management€and€key€space.ÌÌà  àà ` à(11)€For€products€that€qualify€as€ð ðretailðð,€explain€how€the€product€meets€the€listedÏcriteria€in€ðð740.17(b)(3)€of€the€EARÔ#†™XÂXXXÂÒ#ÔÔ‡XÂXX™XÂÔ.Ô#†™XÂXXX­&#ÔÔ‡XÂXX™XÂÔÐ è€ ÐÌà  àà ` à(12)€For€products€which€incorporate€an€open€cryptographic€interface€as€defined€inÏpart€772€of€the€EAR,€describe€the€Open€Cryptographic€Interface.ÌÌà  à(d)€For€classification€requests€regarding€components,€provide€the€following€additionalÏinformation:ÌÌÔ#†™XÂXXXÂð&#ÔÔ‡XÂXX™XÂÔà  àà ` à(1)€€Reference€the€application€for€which€the€components€are€used€in,€if€known;Ð è+€%( ÐÐ È-`'* Ðà  àà ` à(2)€State€if€there€is€a€general€programming€interface€to€the€component;ÌÌà  àà ` à(3)€State€whether€the€component€is€constrained€by€function;€andÔ#†™XÂXXXÂd(#ÔÔ‡XÂXX™XÂÔÐ ( À ÐÌà  àà ` à(4)€the€encryption€component€and€include€the€name€of€the€manufacturer,Ïcomponent€model€number€or€other€identifier.ÌÌà  à(e)€For€classification€requests€for€source€code,€provide€the€following€informationÔ#†™XÂXXXÂî)#ÔÔ‡XÂXX™XÂÔ:Ð ˆ  ÐÌà  àà ` à(1)€If€applicable,€reference€the€executable€(object€code)€product€that€wasÏpreviously€reviewed;€ÌÌà  àà ` à(2)€Include€whether€the€source€code€has€been€modified,€and€the€technical€detailsÏon€how€the€source€code€was€modified;€andÌÌà  àà ` à(3)€Include€a€copy€of€the€sections€of€the€source€code€that€contain€the€encryptionÏalgorithm,€key€management€routines€and€their€related€calls.€Ô#†™XÂXXXÂ0+#ÔÔ‡XÂXX™XÂÔÐ h$  ÐÌà  àÔ#†™XÂXXXÂ<-#Ô€€(f)€€Ô‡XÂXX™XÂÔFor€step„by„step€instructions€and€guidance€on€submitting€classification€requests€forÐ ((À!$ ÐLicense€Exception€ENC,€visit€our€webpage€at€www.bxa.gov/Encryption.Ô#†™XÂXXX§-#Ô€€Ô‡XÂXX™XÂÔÐ * #& ÐÌÔ#†™XÂXXX—.#Ôò òÐ È-`'* ÐPART€744€„€[AMENDED]ó óÐ h ÐÌò òà  àó óÔ2 eÔÚ  Ú16Ú  Ú.Ô3  Ô€Section€744.9€is€amended€by€revising€paragraph€(a)€to€read€as€follows:Ð ( À ÐÌÔ‡X¸ðXX™X¸ðÔò òðð744.9€€Restrictions€on€technical€assistance€by€U.S.€persons€with€respect€to€encryptionÐ è € Ðitems.ó óÐ È`  ÐÌà  à(a)€òòGeneral€prohibitionóó.Ô#†™X¸ðXXX¸ð÷/#Ô€€No€U.S.€person€may,€without€authorization€from€BXA,€provideÐ ˆ  Ðtechnical€assistance€(including€training)€to€foreign€persons€with€the€intent€to€aid€a€foreign€personÏin€the€development€or€manufacture€outside€the€United€States€of€encryption€commodities€andÏsoftware€that,€if€of€United€States€origin,€would€be€controlled€for€EI€reasons€under€ECCN€5A002Ïor€5D002.€€Technical€assistance€may€be€exported€immediately€to€nationals€of€the€countries€listedÏin€Supplement€3€to€part€740€of€the€EAR€(except€for€technical€assistance€to€government€end„usersÏfor€cryptanalytic€items)€provided€the€exporter€has€submitted€to€BXA€a€completed€classificationÏrequest€by€the€time€of€export.€€Note€that€this€prohibition€does€not€apply€if€the€U.S.€personÏproviding€the€assistance€has€a€license€or€is€otherwise€entitled€to€export€the€encryptionÏcommodities€and€software€in€question€to€the€foreign€person(s)€receiving€the€assistance.€€Note€inÏaddition€that€the€mere€teaching€or€discussion€of€information€about€cryptography,€including,€forÏexample,€in€an€academic€setting€or€in€the€work€of€groups€or€bodies€engaged€in€standardsÏdevelopment,€by€itself€would€not€establish€the€intent€described€in€this€section,€even€whereÏforeign€persons€are€present.Ô‡X¸ðXX™X¸ðÔÐ è+€%( ÐÐ È-`'* ÐÔ#†™X¸ðXXX¸ðË5#ÔÓ  ÓÓ  Ó*€€€€€*€€€€€*€€€€€*€€€€€*Ô‡X¸ðXX™X¸ðÔÐ h ÐÓC6Óò òÔ#†™X¸ðXXX¸ðh6#ÔÌÓ  ÓÌPART€748€„€[AMENDED]ÌÌà  àó óÔ2 eÔÚ  Ú17Ú  Ú.Ô3  Ô€Section€748.3€is€amended€by€revising€paragraph€(b)(3)€to€read€as€follows:Ð È`  ÐÌÌò òðð748.3€Classification€and€Advisory€Opinions.ó óÐ h ÐÌ*€€€€€*€€€€€*€€€€€*€€€€€*ÌÌà  à(b)€*€€€€€*€€€€€*ÌÌà  àà ` à(3)€Classification€requests€for€a€Department€of€Commerce€review€of€€encryptionÏsoftware€transferred€from€the€U.S.€Munitions€List€consistent€with€Executive€Order€13026€ofÏNovember€15,€1996€(3€CFR,€1996€Comp.,€p.€228))€and€pursuant€to€the€PresidentialÏMemorandum€of€that€date€are€required€prior€to€export€to€determine€eligibility€for€release€from€EIÏcontrols.€€Exporters€may€self„classify€5A992,€5D992€or€5E992€items€after€submitting€to€BXAÏand€the€ENC€Encryption€Request€Coordinator€by€the€time€of€export€the€information€described€inÏparagraphs€1„5€of€Supplement€6€to€part€742€of€the€EAR.€€Refer€to€ðð742.15(b)€and€SupplementÏNo.€6€to€part€742€of€the€ño ñœño ñEARñn ñ€ñn ñforño ñ›ño ñ€instructions€on€submitting€such€requests€for€mass€marketÐ È-`'* Ðencryption€software.€€ÌÌ*€€€€€*€€€€€*€€€€€*€€€€€*ÌÌò òPART€770€„€[AMENDED]ó óÐ è € ÐÌà  à17.€Section€770.2€is€amended€by€revising€paragraph€(n)€to€read€as€follows:ÌÌò òðð770.2€Item€interpretations.ó óÐ h ÐÌ*€€€€€*€€€€€*€€€€€*€€€€€*ÌÌà  à(n)€òòInterpretation€14:€Encryption€commodity€and€software€reviews.óó€€Classification€ofÐ è€ Ðencryption€commodities€or€software€is€required€to€determine€eligibility€for€certain€licensingÏmechanisms€(see€ðððð740.13(e)€and€740.17€of€the€EAR)€and€exports€to€subsidiaries€of€U.S.Ïcompanies€€(see€ðð740.17(b)(1)€of€the€EAR).€€Note€that€subsequent€bundling,€patches,€upgrades€orÏreleases,€including€name€changes,€may€be€exported€or€reexported€under€the€applicable€provisionsÏof€the€EAR€without€further€review€as€long€as€the€functional€encryption€capacity€of€the€originallyÏreviewed€product€has€not€been€modified€or€enhanced.€€This€does€not€extend€to€productsÏcontrolled€under€a€different€category€on€the€CCL.ÌÌò òPART€772€„€[AMENDED]ó óÐ È-`'* Їà  àÔ2 eÔÚ  Ú18Ú  Ú.Ô3  Ô€€Part€772€is€amended€by€designating€the€existing€text€as€ñw ñœñw ñðð772.1ñp ñ€andñp ññq ñ,›€byñq ññw ñ›ñw ññw ññw ñ€adding€a€sectionÏheading,€by€adding€the€definition€of€ð ðCryptanalytic€itemsðð€in€alphabetical€order,€and€by€revisingÏthe€definition€of€ð ðOpen€cryptographic€ñw ñœñw ñinterfaceððñs ñ€in€alphabetical€orderñs ñ,ñw ñ›ñw ññw ññw ñ€to€read€as€follows:€Ìò òÌÌðð772.1€Definitions€of€terms€as€used€in€the€Export€Administration€Regulations€(EAR).ó óÐ È`  ÐÌà@ååìà*€€€€€*€€€€€€*€€€€€*€€€€€*ˆÌÌÌà  àð ðòòCryptanalytic€itemsóóðð.€€Systems,€equipment,€applications,€specific€electronic€assemblies,Ð (À Ðmodules€and€integrated€circuits€designed€or€modified€to€perform€cryptanalytic€functions,Ïsoftware€having€the€characteristics€of€cryptanalytic€hardware€or€performing€cryptanalyticÏfunctions,€or€technology€for€the€development,€production€or€use€of€cryptanalytic€commodities€orÏsoftware.€€Ìà@ååìà*€€€€€*€€€€€€*€€€€€*€€€€€*ˆÌÌà  àñw ñœñw ññv ñð ðñv ñòòÔ‡X¸ðXX™X¸ðÔOpenñw ñ›ñw ññw ññw ñ€cryptographic€interfaceóóðð.€€Ô#†™X¸ðXXX¸ðI#ÔA€mechanism€which€is€designed€to€allow€a€customer€orÐ H&à" Ðother€party€to€insert€cryptographic€functionality€without€the€intervention,€help€or€assistance€of€theÏmanufacturer€or€its€agents,€e.g.,€manufacturerððs€signing€of€cryptographic€code€or€proprietaryÏinterfaces.€€If€the€cryptographic€interface€implements€a€fixed€set€of€cryptographic€algorithms,€keyÏlengths€or€key€exchange€management€systems,€that€cannot€be€changed,€it€will€not€be€consideredÐ È-`'* Ðan€ð ðopenðð€cryptographic€interface.€€All€general€application€programming€interfaces€(e.g.,€thoseÏthat€accept€either€a€cryptographic€or€non„cryptographic€interface€but€do€not€themselves€maintainÏany€cryptographic€functionality)€will€not€be€considered€ð ðopenðð€cryptographic€interfaces.€Ô‡X¸ðXX™X¸ðÔÐ ( À ÐÔ#†™X¸ðXXX¸ð€L#ÔÌ*€€€€€*€€€€€€*€€€€€*€€€€€*ÌÓIÓÌÌÓóLÓò òPART€774€„€[AMENDED]ó óÐ ˆ  ÐÌà  àÔ2 eÔÚ  Ú19Ú  Ú.Ô3  Ô€€In€Supplement€No.€1€to€part€774€(the€Commerce€Control€List),€Category€5€„ÏTelecommunications€and€ð ðInformation€Securityðð,€part€II.€ð ðInformation€Securityñk ñðð,€ñk ñExport€ControlÏClassification€Numbers€(ECCNs)€5A002,€5A992,€5D992,€and€5E992€are€amended€by€revisingÏthe€ð ðList€of€Items€Controlledðð€section€to€read€as€follows:ÌÌò ò5A002€Systems,€equipment,€application€specific€"electronic€assemblies",€modules€andÐ ¨ @ Ðintegrated€circuits€for€"information€security",€and€other€specially€designed€componentsÏtherefor.ó óÐ h$  ÐÌ*€€€€€*€€€€€*€€€€€*€€€€€*Ìò òList€of€Items€Controlledó óÐ * #& ÐÌà  àòòUnitóó:€$€valueÐ È-`'* Ðà0  àòòRelated€Controlsóó:€€See€also€5A992.€€This€entry€does€not€control:€(a)€€"Personalized€smartÐ h Ðcards"€where€the€cryptographic€capability€is€restricted€for€use€in€equipment€or€systemsÏexcluded€from€control€paragraphs€(b)€through€(f)€of€this€note.€€Note€that€if€a€"personalizedÏsmart€card"€has€multiple€functions,€the€control€status€of€each€function€is€assessedÏindividually;€(b)€Receiving€equipment€for€radio€broadcast,€pay€television€or€similarÏrestricted€audience€broadcast€of€the€consumer€type,€without€digital€encryption€except€thatÏexclusively€used€for€sending€the€billing€or€program„related€information€back€to€theÏbroadcast€providers;€(c)€€Portable€or€mobile€radiotelephones€for€civil€use€(e.g.,€for€useÏwith€commercial€civil€cellular€radio€communications€systems)€that€are€not€capable€ofÏend„to„end€encryption;€(d)€Equipment€where€the€cryptographic€capability€is€not€user„¼accessible€and€which€is€specially€designed€and€limited€to€allow€any€of€the€following:€(1)ÏExecution€of€copy„protected€"software";€(2)€access€to€any€of€the€following:€(a)€€Copy„¼protected€read„only€media;€òòoróó€(b)€€Information€stored€in€encrypted€form€on€media€(e.g.,€inÐ è€ Ðconnection€with€the€protection€of€intellectual€property€rights)€where€the€media€is€offeredÏfor€sale€in€identical€sets€to€the€public;€òòoróó€(3)€one„time€encryption€of€copyright€protectedÐ ¨ @ Ðaudio/video€data;€(e)€Cryptographic€equipment€specially€designed€and€limited€forÏbanking€use€or€money€transactions;€(f)€Cordless€telephone€equipment€not€capable€of€end„¼to„end€encryption€where€the€maximum€effective€range€of€ño ññm ñœñm ñño ñunboosted€cordless€operationÏ(e.g.,€a€single,€unrelayed€hop€between€terminal€and€home€basestation)€is€less€than€400Ïmeters€according€to€the€manufacturer's€specifications.€€These€items€are€controlled€underÏECCN€5A992.Ð (#(# Ðà0  àòòRelated€Definitionsóó:€(1)€€The€term€"money€transactions"€in€paragraph€(e)€of€RelatedÐ È-`'* ÐControls€includes€the€collection€and€settlement€of€fares€or€credit€functions.€€(2)€€For€theÏcontrol€of€global€navigation€satellite€systems€receiving€equipment€containing€orÏemploying€decryption€(e.g.,€GPS€or€GLONASS)€see€7A005.Ð (#(# Ðà  àòòItemsóó:€Ð    ÐÌà  àò òTechnical€Noteó ó:€€Parity€bits€are€not€included€in€the€key€length.Ð È`  ÐÌa.€€Systems,€equipment,€application€specific€"electronic€assemblies",€modules€and€integratedÏcircuits€for€"information€security",€and€other€specially€designed€components€therefor:ÌÌà  àa.1.€€Designed€or€modified€to€use€"cryptography"€employing€digital€techniquesÏperforming€any€cryptographic€function€other€than€authentication€or€digital€signature€having€anyÏof€the€following:ÌÌà  àò òTechnical€Notesó ó:Ð ¨ @ ÐÌà  à1.€€Authentication€and€digital€signature€functions€include€their€associated€keyÏmanagement€function.ÌÌà  à2.€€Authentication€includes€all€aspects€of€access€control€where€there€is€no€encryption€ofÏfiles€or€text€except€as€directly€related€to€the€protection€of€passwords,€Personal€IdentificationÏNumbers€(PINs)€or€similar€data€to€prevent€unauthorized€access.Ð È-`'* Їà  à3.€€"Cryptography"€does€not€include€"fixedðð€data€compression€or€coding€techniques.ÌÌà  àò òNoteó ó:€€5A002.a.1€includes€equipment€designed€or€modified€to€use€"cryptography"Ð ( À Ðemploying€analog€principles€when€implemented€with€digital€techniques.ÌÌà  àà ` àa.1.a.€€A€"symmetric€algorithm"€employing€a€key€length€in€excess€of€56„bits;€òòoróóÐ È`  ÐÌà  àà ` àa.1.b.€€An€"asymmetric€algorithm"€where€the€security€of€the€algorithm€is€based€onÏany€of€the€following:Ìà  àà ` àà ¸ àa.1.b.1.€€Factorization€of€integers€in€excess€of€512€bits€(e.g.,€RSA);ÌÌà  àà ` àà ¸ àa.1.b.2.€€Computation€of€discrete€logarithms€in€a€multiplicative€group€of€aÏfinite€field€of€size€greater€than€512€bits€(e.g.,€Diffie„Hellman€over€Z/pZ);€òòoróóÐ è€ ÐÌà  àà ` àà ¸ àa.1.b.3.€€Discrete€logarithms€in€a€group€other€than€mentioned€inÏ5A002.a.1.b.2€in€excess€of€112€bits€(e.g.,€Diffie„Hellman€over€an€elliptic€curve);ÌÌà  àa.2.€€Designed€or€modified€to€perform€cryptanalytic€functions;ÌÌà  àa.3.€[Reserved]ÌÌà  àa.4.€€Specially€designed€or€modified€to€reduce€the€compromising€emanations€ofÐ È-`'* Ðinformation-bearing€signals€beyond€what€is€necessary€for€health,€safety€or€electromagneticÏinterference€standards;ÌÌà  àa.5.€€Designed€or€modified€to€use€cryptographic€techniques€to€generate€the€spreading€codeÏfor€"spread€spectrum"€systems,€including€the€hopping€code€for€ð ðfrequency€hoppingðð€systems;ÌÌà  àa.6.€€Designed€or€modified€to€provide€certified€or€certifiable€"multilevel€security"€or€userÏisolation€at€a€level€exceeding€Class€B2€of€the€Trusted€Computer€System€Evaluation€CriteriaÏ(TCSEC)€or€equivalent;ÌÌà  àa.7.€€Communications€cable€systems€designed€or€modified€using€mechanical,€electrical€orÏelectronic€means€to€detect€surreptitious€intrusion.Ìà@ìì*ìàÔ‡X¸ðXX™X¸ðÔò òˆÌÌ5A992€Ô#†™X¸ðXXX¸ðÊd#Ô€Equipment€not€controlled€by€5A002.Ô‡X¸ðXX™X¸ðÔÐ ¨ @ Ðó óÌÔ#†™X¸ðXXX¸ð;e#ÔÌÓ  Ó*€€€€€*€€€€€*€€€€€*€€€€€*¹Ó—eÓÔ‡X¸ðXX™X¸ðÔÌò òList€of€Items€Controlledó óÐ * #& ÐÌà  àòòUnitóó:€$€valueÐ È-`'* Ðà0  àòòRelated€Controls:óó€N/AÐh(#(# Ðà  àòòRelated€Definitionsóó:€N/AÐ Hà Ðà  àòòItems:óóÐ ( À ÐÌÔ#†™X¸ðXXX¸ðÍe#Ôa.€€Telecommunications€and€other€information€security€equipment€containing€encryption.Ð è € ÐÌb.€€"Information€security"€equipment,€n.e.s.,€(òòe.g.óó,€cryptographic,€cryptanalytic,€and€cryptologicÐ ¨@  Ðequipment,€n.e.s.)€and€components€therefor.ÌÔ‡X¸ðXX™X¸ðÔÌÔ#†™X¸ðXXX¸ð@h#Ôò òÌÔ‡X¸ðXX™X¸ðÔ5D992€Ô#†™X¸ðXXX¸ð‡h#ÔÔ‡X¸ðXX™X¸ðÔ"Information€Security"€"software"€not€controlled€by€5D002.ó óÐ (À ÐÔ#†™X¸ðXXX¸ðÏh#ÔÔ‡X¸ðXX™X¸ðÔÌÔ#†™X¸ðXXX¸ðci#ÔÌÓ  Óà@@åå#ìà*€€€€€*€€€€€€*€€€€€*€€€€€*¹Ó§iÓÔ‡X¸ðXX™X¸ðÔÌò òList€of€Items€Controlledó óÐ ˆ"  ÐÌà  àòòUnitóó:€$€valueÐ H&à" Ðà  àòòRelated€Controlsóó:€N/AÐ ((À!$ Ðà  àòòRelated€Definitionsóó:€N/AÐ * #& Ðà  àòòItemsóó:Ð è+€%( ÐÐ È-`'* ÐÔ#†™X¸ðXXX¸ðði#ÔÔ‡X¸ðXX™X¸ðÔa.€€"Software",€as€follows:Ð h ÐÌà  àa.1€€"Software"€specially€designed€or€modified€for€the€"development",€"production",€orÏ"use"€of€telecommunications€€Ô#†™X¸ðXXX¸ðXk#Ôand€other€information€securityÔ‡X¸ðXX™X¸ðÔ€equipment€containing€encryptionÐ    Ð(e.g.,€equipment€controlled€by€5A992.a);ÌÌà  àa.2.€€"Software"€specially€designed€or€modified€for€the€"development",€"production:,€orÏ"use"€of€information€security€or€cryptologic€equipment€(e.g.,€equipment€controlled€by€5A992.b).ÌÌb.€€"Software",€as€follows:ÌÌà  àb.1.€€"Software"€having€the€characteristics,€or€performing€or€simulating€the€functions€ofÏthe€equipment€controlled€by€5A992.a.ÌÌà  àb.2.€€"Software€having€the€characteristics,€or€performing€or€simulating€the€functions€ofÏthe€equipment€controlled€by€5A992.b.ÌÌc.€€"Software"€designed€or€modified€to€protect€against€malicious€computer€damage,€e.g.,€viruses.ÌÌÔ#†™X¸ðXXX¸ðil#Ôò òÌÌ5E992€"Information€Security"€"technology",€not€controlled€by€5E002.ó óÐ È-`'* ЇÓ  Ó*€€€€€*€€€€€*€€€€€*€€€€€*ÌÓÆoÓÔ‡X¸ðXX™X¸ðÔò òList€of€Items€Controlledó óÐ Hà ÐÌà  àòòUnitóó:€€N/AÐ    Ðà  àòòRelated€Controlsóó:€N/AÐ è € Ðà  àòòRelated€Definitionsóó:€N/AÐ È`  Ðà  àòòItemsóó:Ð ¨@  ÐÌÔ#†™X¸ðXXX¸ðüo#ÔÔ‡X¸ðXX™X¸ðÔa.€€"Technology"€n.e.s.,€for€the€"development",€"production"€or€"use"€of€telecommunicationsÐ h Ðequipment€Ô#†™X¸ðXXX¸ðLq#Ôand€other€information€securityÔ‡X¸ðXX™X¸ðÔ€and€containing€encryption€(e.g.,€equipment€controlledÐ Hà Ðby€5A992.a)€or€"software"€controlled€by€5D992.a.1€or€b.1.ÌÌb.€€"Technology",€n.e.s.,€for€the€"development",€"production"€or€"use"€of€"information€security"Ïor€cryptologic€equipment€(e.g.,€equipment€controlled€by€5A992.b),€or€"software"€controlled€byÏ5D992.a.2,€b.2,€or€c.Ô#†™X¸ðXXX¸ð&r#ÔÔ‡X¸ðXX™X¸ðÔÐ ¨ @ ÐÔ#†™X¸ðXXX¸ðÂs#ÔÌDATED:ÌÌÌR.€Roger€MajakÌAssistant€SecretaryÌfor€Export€Administration