Where Industry and Security Intersect
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EAR citations on this page may be found in the
June 6, 2002 Encryption Rule
on the Government Printing Office Web site
This chart provides additional guidance pertaining to the transfers of encryption technology controlled under ECCN 5E002. It is not all inclusive and is only meant as general guidance for exporters. The chart includes guidance on the release of 5E002 encryption technology to foreign nationals under the "deemed export" rule found at Section 734.2(b)(2) of the Export Administration Regulations (EAR). The inclusion of "contractors" and "consultants" within the meaning of "employees", as that term is used in the relevant EAR provisions, is intended to address export control issues only and does not have any bearing on labor or employment matters. Please refer to the EAR, in particular Section 740.17, for specific details, and Part 772 for the definition of U.S. subsidiary as applied to encryption items. Also, exports or transfers of encryption technology to foreign nationals of countries listed in Country Group E:1 of Supplement No. 1 to Part 740 of the EAR is not permitted without written authorization from the U.S. government.
| Exporter |
End-Users |
Licensing Mechanism |
Technical Review |
|---|---|---|---|
| U.S. Company |
Subsidiaries of the U.S. Company (outside the U.S. and Canada, except Country Group E:1) |
No |
|
| U.S. Company |
Foreign national employees, including contractors and consultants(1), of U.S. companies and their subsidiaries inside and outside the United States(2) |
No |
|
| U.S. Company (owned by a foreign parent) |
Foreign national employees working in the U.S., including contractors and consultants(1) of a U.S. company(2) |
No |
|
| U.S. Company (U.S.-owned and controlled) |
Foreign non-government entities headquartered outside the countries listed in Supplement No. 3 to Part 740 of the EAR ("EU+8") Foreign government and non-government entities located in the "EU+8" |
Yes
Yes(3) |
|
| U.S. Company (owned by a foreign parent) |
Foreign national employees of foreign parent companies outside the "EU+8"(2) Foreign national employees of foreign parent companies in the "EU+8"(2) |
|
Yes
Yes(3)
|
| U.S. Company (owned by a foreign parent) |
Foreign non-government entities (including the foreign parent) headquartered outside the "EU+8" Foreign government and non-government entities (including the foreign parent) located in the "EU+8" |
|
Yes
Yes(3) |
1. Consistent with the EAR provisions, it is BIS's intent to include self-employed natural person (not a juridical person, e.g., not a company) within this end-user category.
2. Excludes nationals of countries listed in Country Group E:1 of Supplement No. 1 to Part 740 of the EAR.
3. Per Section 740.17(a) of the EAR, exporters may immediately export and reexport any encryption item (except "cryptanalytic items" to government end-users) to end-users located in the countries listed in Supplement No. 3 to Part 740, provided the exporter has submitted a complete review request by the time of export.