U. S. Bureau of Industry and Security - Summary of Amendments to the EAR

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Summary of Amendments to the Export Administration Regulations

This rule modifies the requirements of License Exception ENC, “Encryption Commodities, Software and Technology,” and the requirements for qualifying an encryption item as mass market.

This rule eases specific license requirements for many types of encryption technology, except to countries subject to export or reexport license requirements for national security reasons or anti-terrorism reasons, or to countries that are subject to embargoes or sanctions.

This rule also removes the requirement to file separate encryption classification requests (formerly encryption review requests) with both BIS and the ENC Encryption Request Coordinator (Ft. Meade, MD).

For mass market and ENC encryption products of lesser national security concern, this rule:

Creates a registration and annual self-classification report procedure to replace the 30-day waiting requirement for a technical review;

Allows immediate authorization to export and reexport these products after electronic submission to BIS of an encryption registration;

Identifies a few categories of License Exception ENC and mass market encryption products that will continue to require submission of a 30-day classification request; and

Authorizes immediate export and reexport of these products to most end-users located in close ally countries upon submission of an encryption registration and classification request to BIS.

BIS implements the agreements made by the Wassenaar Arrangement at the plenary meeting in December 2009 that pertained to “information security” items, this rule:

Excludes particular products that use cryptography from being controlled as “information security” items by adding an overarching note that focuses “information security” controls on the use of encryption for computing, communications, networking and information security and makes additional changes throughout the EAR to harmonize it with the new note.

Replaces a note in ECCN 5A002 pertaining to personalized smart cards with a note pertaining to smart cards and smart readers/writers.

BIS revises the Guidelines for Submitting Review Requests for Encryption Items, Supplement No. 6 to Part 742.

This rule enhances national security by focusing encryption export controls and streamlining the collection and analysis of information about encryption products, through reforms that include:

Removing review requirements for less sensitive encryption items;

Establishing a company registration requirement for encryption items under License Exception ENC or as mass market encryption items;

Creating an annual self-classification report requirement for such items following submission of an encryption registration;

Making encryption technology eligible for export and reexport under License Exception ENC, except to countries of greater national security concern;

Eliminating the semi-annual sales reporting requirement for less sensitive encryption items under License Exception ENC;

Removing the 30-day delay to export and reexport less sensitive encryption items under License Exception ENC; and

Removing the 30-day delay to make most mass market encryption items eligible for mass market treatment.