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COMMERCIAL ENCRYPTION EXPORT CONTROLS

December 20, 2000

APPLYING FOR AN ENCRYPTION LICENSING ARRANGEMENT (ELA)

In most cases, your encryption item will be eligible for export under a license exception, so you should carefully review the encryption policy in Sections 740.17 and 742.15 of the Export Administration Regulations (EAR) before you submit a license application. Section 742.15(b)(3) of the EAR allows the submission of export license applications for unlimited quantities of encryption items, not eligible under a license exception, to all destinations except the terrorist countries for a validity period of 4 years. This guidance is designed to help you in applying for such a license.

Step 1: Read the relevant portions of the Export Administration Regulations (EAR).

You should first review Section 742.15 and Part 748 of the EAR. Section 742.15(b)(3) is the principal regulatory reference for ELA's and describes the licensing policy for exports of encryption items under a license. Part 748 provides general information on submitting license applications.

Step 2: Obtain BIS Form 748P

This is the multipurpose application form you use to apply for a license. Since it is a multipart form, it is not available for downloading from the Web. However, you may request the form from BIS's homepage or by calling the Exporter Counseling Division at (202) 482-4811. In addition, instead of submitting a paper application form, you may apply over the internet using BIS's Simplified Network Application Process Redesign (SNAP-R).

If you are exporting more than one item, you must also obtain BIS Form 748P-A, which is an item appendix, and follow the instructions for Block 22 for each additional item. Follow the instructions on SNAP to add items electronically.

Step 3: Fill in the BIS-748P form.

The form must be typed. For each block of the form, follow the instructions in Supplement 1 to Part 748 for license applications. When applying for an ELA, follow the additional instructions below.

Block

Instruction

5

mark export or reexport box. This is extremely important. DO NOT mark classification request. If you do, the application will be returned to you.

9

indicate the phrase "Encryption Licensing Arrangement" in this block.

17

indicate "various" to denote several intermediate consignees (if applicable).

18

indicate "various" to denote several ultimate consignees (if applicable).

19

indicate "various" to denote several end-users (if applicable). Leave blank if you have indicated "various" in block 18, and the end-users are the same as the ultimate consignees. When applying to export or reexport to government end-users (as defined in Part 772) outside of the countries listed in Supplement 3 to Part 740, please provide a list of countries, specific end-uses and end-users in the application.

21

describe the intended end use of the encryption item(s).

22(a)

The ECCN for encryption hardware is 5A002. The ECCN for encryption software is 5D002. The ECCN for encryption technology is 5E002.

22(e)

indicate "1" in this box , even though you are applying for unlimited quantities.

22(f)

indicate "unlimited" in this box.

22(j)

provide a brief technical description including the basic purpose of the item and the type of encryption used in the software (e.g., 128-bit RC4 for secure e-mail, 2048 RSA for key exchange). Please DO NOT type 'see letter of explanation' or 'see brochure'. The information identified in this block is entered directly into the BIS computer system, and will be printed on the license issued by BIS. A brief technical description is essential.

24

indicate the sales territory in this block (listing specific countries, not regions) and the type of end users to whom the item(s) will be exported. You may indicate any additional pertinent information in this block, such as "the items will be returned to the United States or Canada for resale".

Step 4: Include supporting documents

Supporting documents, such as technical specifications, should accompany the completed BIS 748P form. The supporting documents should include information such as the product's name and key length of the algorithm(s) used in the product. Be sure to include BIS's Z number (e.g., Z999999) on your support documents

Step 5: Submit the application to BIS

Please submit the original BIS Form 748P, 748P-A (if applicable) and supporting documents, in accordance with Part 748 EAR, to the following address:

Bureau of Industry and Security
U.S. Department of Commerce
14th Street and Pennsylvania Avenue, NW
Room 2705,
Washington, D.C. 20444,
Attn: "Application Enclosed"

BIS will not accept applications sent C.O.D. If you submit the forms electronically, either through SNAP-R or ELAIN, please fax the supporting documents to BIS (fax number: 202-501-0784), or send them to the U.S. Department of Commerce, Bureau of Industry and Security, Information Technology Controls Division, Room 2093, 14th & Pennsylvania Ave., NW, Washington, D.C. 20230.

Step 6 : Reporting requirements

As described in Section 742.15(a) of the EAR, encryption licenses are reviewed on a case-by-case basis, and exports and reexports authorized under an ELA may be subject to reporting requirements. The specific reporting requirement(s) that would apply to an ELA will be set forth by BIS as a condition of the license. Please note that BIS multipurpose forms are available for reporting purposes.

BIS-742R (pdf)| BIS-742S (pdf)


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