Guidance on Reexports

Guidance on Reexports/Transfers of U.S.-Origin Items or Foreign-made Items Subject to the Export Administration Regulations (EAR)

Updated on 02/29/2012

If you are outside the United States and wish to reexport or transfer (in-country) an item (commodity, technology, or software) that is of U.S.-origin or that is subject to the Export Administration Regulations (EAR) (as described in more detail in Parts B-D below), your product may require a license or other authorization from the U.S. Department of Commerce's Bureau of Industry and Security (BIS). Certain additional restrictions are also outlined in part G below.

Determining whether your item is subject to the EAR.

 Your item is subject to the EAR if it:

1.  Was produced in the United States (See Part A);
2. Is a foreign-made product that contains more than a specified percentage of controlled U.S.-origin content (See Part B);
3. Is a foreign-made product based on certain U.S.-origin technology or software and is intended for export (from abroad) to specified destinations (See Part C); or
4. Was made by a plant or major component of a plant located outside the United States, and if that plant or major component of a plant is the direct product of certain U.S. technology or software, and your product is intended for export (from abroad) to specified destinations (See Part D).

A. Determining whether the reexport or transfer (in-country) of a U.S.-origin item or a foreign-made item that is subject to the EAR requires a license from BIS.

You may need to obtain a license or other authorization to "reexport" or transfer (in-country) an item that was produced in the United States. A "reexport" is the shipment or transmission of an item subject to the EAR from one foreign country (i.e., a country other than the United States) to another foreign country. A reexport also occurs when there is "release" of technology or software (source code) subject to the EAR in one foreign country to a national of another foreign country. In-country transfer or transfer (in-country) is a shipment, transmission, or release of items subject to the EAR from one person to another person that occurs outside the United States within a single foreign country.

Many items subject to the EAR do not need a license or other authorization to be reexported or transferred (in-country). But certain items are controlled and will either require a license or must qualify for a License Exception. License requirements apply particularly to items controlled by multilateral export control regimes. In addition, some destinations and persons (individuals or  groups) are subject to comprehensive export controls, including controls on widely traded consumer products.

To determine whether your U.S.-origin product requires a license you will need the following three pieces of information:

1. The Export Control Classification Number (ECCN). Certain items, notably those controlled by multilateral export control regimes, are on the Commerce Control List (CCL) (Supplement No. 1 to part 774 of the EAR) and are included in a specific ECCN. If your item is not on the CCL, it may be classified as EAR99. EAR99 is a general category of goods and technology that encompasses many widely traded consumer and industrial items. These EAR99 items are subject to the EAR, but are not specifically described on the CCL. The ECCN in the CCL will also tell you the reason(s) for control.
2. The ultimate destination of the item. You will need to match the reason(s) for control Commerce Country Chart reference listed in the License Requirement section of the ECCN, e.g., NS Column 1, NP Column 2, or AT Column 1, with the country of ultimate destination in the Commerce Country Chart (Supplement No. 1 to part 738 of the EAR ). The reason(s) for control, when used in conjunction with the Commerce Country Chart, will help you to determine if a license is required to the ultimate destination. An "X" in the intersection of the reason for control column and the destination row represents a license requirement. If you determine that your reexport transaction requires a license, you should review the EAR to determine if any License Exceptions are available (part 740 of the EAR). For general information on License Exceptions, see part E below.
3.  The end-user and end-use for the item. Even if you determine a license is not required based on the ultimate destination (or a license is required but a License Exception would apply), you may need to apply for a license because of the end-use or end-user. This is also the case for in-country transfers. There are certain special restrictions that apply to persons (or entities) identified in the EAR, as well as to persons whom you know or have reason to know are involved in weapons proliferation activities. There are also license requirements, prohibition, or restrictions on certain end-uses as described in Part 744 of the EAR . In most instances, a license is required to persons identified on the Entity List (Supplement No. 4 to part 744 ) for the reexport or transfer (in-country) of all items subject to the EAR (i.e., all items on the CCL and all items classified as EAR99). There is a consolidated list of prohibited or restricted parties.

B. Determining whether your foreign-produced product that incorporates/bundles U.S.-origin content is subject to the EAR (De Minimis Rules ).

As noted above, certain foreign-produced items are subject to the EAR because they incorporate or bundle more than a specified percentage value of U.S.-origin controlled content. The following steps are provided as general guidance for determining whether a foreign produced item (commodity, software, or technology) that incorporates/bundles U.S.-origin item(s) is subject to the EAR or is not subject to the EAR pursuant to the de minimis rules in the EAR. This general guidance does not take into account specific U.S.-origin items that are not eligible for de minimis treatment. You should consult Section 734.4 and Supplement 2 to Part 734 for information on such items and guidance on how to calculate the percentage of U.S.-origin controlled content.

  1. General guidance regarding incorporation of U.S.-origin controlled commodities into foreign-produced products. If you are a foreign company that incorporates U.S.-origin commodities in a foreign commodity you will need to -

1. . Determine the classification (ECCN) of the U.S.-origin commodities exported to you. The U.S. exporter may be able to assist you in determining the ECCN or you may submit a classification request to BIS via SNAP-R (free).
2.  Determine if the U.S.-origin commodities are "controlled content." ("U.S. controlled content" is content that would require a U.S. license if it were to be reexported separately to the country of ultimate destination.)
3. Determine if the percentage of U.S.-origin "controlled content" is greater than 25% of the value of your finished foreign product. (For designated terrorist supporting countries (Country Group E:1 in Supplement No. 1 to Part 740 ), you need to determine if the U.S.-origin "controlled content is greater than 10% of the value of your finished product.) If the U.S.-origin controlled content is 25% or less of the value of your finished product (or 10% or less for terrorist supporting countries), your foreign-made product is not subject to the EAR pursuant to the de minimis rules in Section 734.4 of the EAR.
4. If the U.S.-origin controlled content percentage is greater than 25% (or 10% for terrorist-supporting countries), your product is subject to the EAR.

If your product is subject to the EAR, you need to determine if your foreign-made item requires a license, either because of the ultimate destination or the end-use or end-user. To do this, follow the steps outlined in Part A

2. Guidance regarding foreign software incorporating or bundled with U.S.-origin software and foreign technology commingled with or drawn from U.S.-origin technology. If you incorporate U.S.-origin software into your foreign software, or you bundle U.S.-origin software with foreign hardware, or if your foreign technology is commingled with or drawn from U.S.-origin technology, you would follow a process similar to the one outlined above. That process and a related one-time reporting requirement for technology commingling are set forth in Section 734.4 and Supplement 2 to part 734 of the EAR. If there is no fair market value for the technology or software, you may use any reasonable method to determine the cost of the US-content, e.g., production cost or cost per line of code. You may run your method ideas by us at This email address is being protected from spambots. You need JavaScript enabled to view it. ,

C. Determining if your foreign product is subject to the EAR because it is the direct product of U.S. technology or software.

Foreign-made direct products of U.S.-origin technology are subject to the EAR if they are:

1.  Intended for export (from abroad) to countries listed (that have an X) in Country Group D:1 or E:1 (Supplement No. 1 to part 740 Supplement No. 1 to Part 740 );
2. Would be subject to national security controls under an ECCN on the CCL; and
3. The U.S.-origin technology or software on which the foreign product is based required a written assurance from the recipient when it was exported from the United States. See EAR Sections 734.3(a)(4) and 736.2(b)(3). Generally, this would be U.S.-origin technology or software that is subject to national security reasons for control.

D. Determining if your foreign product is subject to the EAR because it is the direct product of a plant or major component of a plant that was developed based on U.S.-origin technology.

The foreign-made product of such a foreign plant or major component of a plant that was developed based on U.S.-origin technology is subject to the EAR if:

a) The foreign product is intended for export (from abroad) to countries listed (that have an X) in Country Group D:1 or E:1 (Supplement No. 1 to Part 740 );

b) The foreign product would be controlled for national security reasons under an ECCN on the CCL; and

c) If the U.S.-origin technology on which the plant or major component of a plant is based required a written assurance from the recipient when it was exported from the United States. See Sections 734.3(a)(5) and 736.2(b)(3). Generally, this would be U.S.-origin technology that is subject to national security reasons for control.

E. Determining if your foreign product that is subject to the EAR requires a license from BIS.

Follow the steps in Section A of this webpage. See the export decision tree.

F. Is your foreign product eligible for a License Exception?

In certain instances, if your reexport transaction requires a license, you may be able to use one of the License Exceptions set forth in part 740 of the EAR). . A License Exception allows you to reexport an item without applying for a license, provided your transaction meets all the terms and conditions of the License Exception and none of the restrictions of Section 740.2 of the EAR apply.

G. Other Considerations.

Are there any special restrictions I should know about?

You may not reexport an item subject to the EAR to a party whose export privileges have been denied by BIS. Information on parties subject to denial orders is provided on this Web Site.

Please note that U.S. persons may be subject to additional restrictions under the EAR. See Section 744.6 of the EAR. U.S. persons may also be subject to restrictions under other U.S. Government regulations, such as those issued by the Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury.

Items exported under License Exception STA may not be reexported under License Exception APR.

Why should you comply with reexport license requirements?

The Department of Commerce has enforcement and protective measures available to it to ensure that recipients of items subject to the EAR comply with the reexport license requirements of the EAR. If the Department of Commerce determines that you have not complied with these requirements and restrictions, it may institute administrative enforcement proceedings, resulting in the possible imposition of civil penalties and/or denial of your eligibility to receive U.S. exports (part 764 of the EAR). See examples of foreign companies that are on the Denied Persons List.

Where to apply for a reexport license?

If your reexport requires a license and is not eligible for a License Exception, you may apply for a reexport license electronically through the Simplified Network Application Process Redesign (SNAP-R). You may find the basic information on the SNAP-R program on this Web site. If you have not submitted an application electronically before, you must first obtain a Company Identification Number (CIN)./index.htm

Additional information and contacting BIS

If you need help regarding a reexport license application or product classification request, or wish to obtain other information on U.S. export controls, please consult the main BIS Web Site (in English) or the free on-line training .

In addition, you may contact the Office of Exporter Services, Bureau of Industry and Security, directly at:

(202) 482-4811 - Outreach and Educational Services Division (located in Washington, DC)

(949) 660–0144 - Western Regional Office (located in Irvine, CA)

(408) 998-8806 - Northern California branch (located in San Jose, CA)

Disclaimer

The Bureau of Industry and Security provides this Guidance on Reexports for information purposes only. The Guidance does not provide an official interpretation or translation of U.S. export control law or regulations. This information does not relieve the reader of any duties or obligations regarding knowledge of or compliance with all relevant U.S. export control laws and regulations as they appear in the U.S. Code of Federal Regulations and as modified by notices in the Federal Register.