The Bureau of Industry and Security (BIS) publishes the names of certain foreign persons – including businesses, research institutions, government and private organizations, individuals, and other types of legal persons - that are subject to specific license requirements for the export, reexport and/or transfer (in-country) of specified items.  These persons comprise the Entity List, which is found at Supplement No. 4 to Part 744 of the Export Administration Regulations (EAR).  The persons on the Entity List are subject to individual licensing requirements and policies supplemental to those found elsewhere in the EAR.

BIS first published the Entity List in February 1997 as part of its efforts to inform the public of entities that have engaged in activities that could result in an increased risk of the diversion of exported, reexported or transferred (in-country) items to weapons of mass destruction (WMD) programs.  Since its initial publication, grounds for inclusion on the Entity List have expanded to activities sanctioned by the State Department and activities contrary to U.S. national security and/or foreign policy interests.

The Entity List is found in Supplement No. 4 to Part 744 of the Export Administration Regulations (EAR) (15 C.F.R. Part 744, Supp. No. 4). The most recent version of the EAR can be found here and the Entity List can be accessed here. If you would like to subscribe to BIS’s e-mail notification service that will alert you when BIS publishes rules in the Federal Register, including rules implementing changes to the Entity List, please click here.

You should check the Entity List because exports, reexports, and/or transfers (in-country) to those persons named on the Entity List are subject to licensing requirements and policies in addition to those elsewhere in the EAR.  Failure to adhere to EAR licensing requirements is a violation of the EAR and could result in criminal and/or civil penalties.  BIS recommends that exporters screen the parties to transactions against the Entity List as a standard part of pre-transaction due diligence activities.

Yes. However, BIS considers that transactions of any nature with listed entities carry a "red flag" and recommends that U.S. companies proceed with caution with respect to such transactions.  Note that the Entity List describes license requirements and policies for the export, reexport, and/or transfer (in-country) of items subject to the EAR only.  Additionally, although many of the persons included on the Entity List are subject to policies of denial for the export, reexport, and/or transfer (in-country) of all items subject to the EAR, some are subject to policies and requirements that are narrower in scope (i.e., not all persons included on the Entity List are subject to license requirements for all items subject to the EAR, while others are subject to license requirements for all or some items listed on the Commerce Control List (CCL)).  Be sure to review the licensing policy and requirements carefully.

As set forth in the answer to question 28, both BIS and other agencies in the U.S. Government maintain other lists of entities for which there are restrictions on doing business.  In addition, the provisions of part 744 of the EAR, including § 744.6 of the EAR, apply to transactions regardless of whether the entity in question is listed on the Entity List or not.

Additionally, BIS recommends that exporters, reexporters, or persons transferring (in-country) items subject to the EAR review the U.S. Government’s list of proscribed persons to ensure that a proposed transaction does not violate other U. S. Government requirements.

Each entity on the Entity List is assigned a specific licensing requirement on the basis of the national security and/or foreign policy considerations associated with the entity’s designation on the Entity List.  Within the Entity List, the information for each listed entity includes the license requirement, license review policy, and Federal Register citation(s). License requirements vary from “all items subject to the EAR,” which includes items on the CCL as well as EAR99 items, to all items on the CCL, or to all items on the CCL except for specified items.

BIS reviews license applications that include listed entities according to the entity’s role in the proposed transaction and the specific license review policy(ies) set forth for the entity(ies) on the Entity List.  Note that while transactions outside of the scope of the license review policy for a listed entity are not prohibited, BIS considers that such transactions carry a "red flag."

Section 744.1(c) of the EAR generally prohibits the use of license exceptions for almost all exports and reexports to listed entities.  However, if one or more license exceptions are available to a listed entity, the availability will be noted in the licensing requirements information specific to that entity.

The Entity List is subject to ongoing review and revision.  All changes to the Entity List are published in the Federal Register.  You can subscribe to a BIS e-mail notification service that will alert you when EAR rules are published in the Federal Register, including rules implementing changes to the Entity List, by clicking here.

The removal of an entity from the Entity List removes only the additional license requirements imposed by its listing on the Entity List, and does not modify the other license requirements that may be applicable under the EAR (i.e., as a result of an item’s classification on the CCL or the proposed country of destination for the export, reexport, or transfer (in-country)). Additionally, if you know or have been informed that the item proposed for export, reexport, or transfer (in-country) will be used in nuclear, missile, and/or chemical and biological weapons programs, you must seek a license pursuant to the requirements found in Part 744 of the EAR. You should also consult the other export screening lists maintained by BIS and other U.S. Government agencies to determine whether other license requirements or sanctions apply. In summary, you should conduct the same due diligence as you would for any other export, reexport, or transfer (in-country) of items subject to the EAR.

This is a "red flag" and the exporter must undertake sufficient due diligence to verify that the company co-located with the listed entity is not, in fact, the listed entity and does not intend to transfer (in-country) the requested items to the listed entity.

As this is a "red flag", BIS recommends that detailed due diligence be undertaken.  You should conduct due diligence by examining other factors to determine if the company you want to export to is the same as the listed entity.  Such factors may include, but are not limited to, the company’s name, address, corporate officers, business activities, contact information, etc.  You may be able to locate this information via the company’s website or through internet search results.

Persons on the Entity List are subject to the licensing policy and requirements defined in their specific entries on the Entity List regardless of their location. BIS works to revise and correct the entries on the Entity List on a regular basis, in order to ensure that each entry reflects the most accurate and recent information for the person named in that entry. However, if your due diligence indicates that the person to whom you wish to export, reexport, or transfer (in-country) is designated on the Entity List, then, regardless of the address listed in the Entity List entry, you should follow the licensing requirements set forth in the Entity List for that person.

No, not all sections of Part 744 of the EAR (which defines the criteria for possible inclusion on the Entity List) require that a person’s alleged activity involve items subject to the EAR.  Section 744.11, for example, requires that the person’s activities be contrary to U.S. national security and/or foreign policy interests but does not require that the activities involve items subject to the EAR.

Yes; this process was articulated in BIS’s August 2008 revision of the EAR titled “Authorization to Impose License Requirements for Exports or Reexports to Entities Acting Contrary to the National Security or Foreign Policy Interests of the United States.”

As a result of the August 2008 rule, §744.16 of the EAR defines the procedures that allow a person listed on the Entity List to submit a written request to the End-User Review Committee (ERC) that its entry be removed or modified.  The party must provide a basis for the removal or modification.  After the ERC has reviewed the request and reached a decision, BIS’s Deputy Assistant Secretary for Export Administration will provide the decision in a written response to the requesting party.  The decision communicated to the party by the Deputy Assistant Secretary is final.  BIS will publish any modifications to, or removals from, the Entity List resulting from such appeals in the Federal Register.  The timeframe for appeals is 30 calendar days after the ERC’s receipt of the appeal (note that BIS conducts an internal review of all appeals prior to referral to the ERC).

Please note that if a party on the Entity List submits an appeal, it remains subject to the Entity List's licensing requirements while the appeal is being processed.  In order for a party to be released from the additional licensing requirements imposed by being on the Entity List, two actions must occur: 1) the appeal must be approved by the ERC, and 2) a formal notice of the party’s removal from the Entity List must be published in the Federal Register.

No, it does not.

Yes. See a consolidated version of all U.S. Government proscribed parties lists here.

Yes. As set forth in Supplement No. 5 to Part 744 of the EAR, proposed changes to the Entity List are reviewed and approved by the interagency End-User Review Committee (ERC). Comprised of representatives from the Departments of State, Defense, and Energy, the ERC is chaired by a Commerce employee. In addition to the review of appeals, the ERC reviews the Entity List on an annual basis. Any ERC member agency may also recommend changes to the Entity List on an ad-hoc basis.

You should call the Office of Exporter Services at 202-482-4811, or e-mail them a question via the website. Pursuant to the guidance in §748.3 of the EAR, you may also submit an advisory opinion request to the End-User Review Committee Chair at ERC@bis.doc.gov, or call the Committee Chair directly at 202-482-5991.

If the branch office is part of the listed entity (i.e., is not a distinct company itself), the Entity List’s licensing requirements and policies are as applicable to the branch location as to its company headquarters.  BIS considers branches and field offices that are not legally distinct from the company that is the listed entity to be integral parts of that company.

By contrast, separately incorporated subsidiaries or sister companies are not considered part of the listed entity and are therefore usually not covered by the Entity List’s prohibitions.  BIS recommends an extra level of due diligence in these cases to ensure that the subsidiary or sister company is not engaging in the activities that resulted in the listed entity’s inclusion on the Entity List, is not engaging in transactions on behalf of the entity on the Entity List, and is a bona fide organization that is separate and distinct from its parent or sister company (i.e. is not merely a front or shell company for the listed entity).  BIS considers that there is a "red flag" on any transaction involving a listed entity and recommends that exporters clarify the relationship between the subsidiary/affiliate that will receive the exported, reexported, or transferred (in-country) item and the listed entity, as well as conduct other due diligence procedures before engaging in business activities with such persons.

If you know or are informed that a company to which you want to export, reexport, or transfer (in-country) is partially owned by a company on the Entity List, either by way of a joint venture or a direct equity stake, BIS recommends that you clarify the relationship between the entity and the company that the listed entity partially owns.  If the listed entity controls the company as a result of its level of ownership and/or its involvement in the company’s business activities, the Entity List’s licensing requirements and policies specific to the listed entity apply to the company.  If you are unable to ascertain the listed entity’s level of control, you have the option of requesting an advisory opinion from BIS, pursuant to §748.3 of the EAR.

Regardless of the level of control, BIS considers that there is a "red flag" on transactions involving companies owned by listed entities and recommends that exporters undertake detailed due diligence.

In most cases, Entity List license requirements apply only to the specific companies listed and their direct subordinates. The Entity List license requirements generally do not extend to parent or sister companies unless specified, although all of the other license requirements set forth in the EAR, including the end-user and end-use based restrictions in Part 744 of the EAR, continue to apply.  BIS recommends that the exporters, reexporters, and transferors conduct more detailed due diligence to clarify the nature of the parent/subsidiary relationship as well as the end-use of the requested items.  Note that BIS considers that there is a "red flag" on transactions involving companies that own or are otherwise affiliated with listed entities and recommends that exporters undertake detailed due diligence.

No. All persons named in Entity List entries are subject to the main entry's licensing requirements and policy.

The licensing policies and requirements cited on the Entity List extend to the export, reexport, or transfer (in-country) of items subject to the EAR to the persons included on the Entity List. Therefore, a transaction that involves a listed entity in which that entity is not the consignee of the goods is not a transaction subject to a license under the entity’s listing on the Entity List.  However, BIS considers that a transaction involving the use of a listed entity as a freight forwarder or carrier carries a "red flag" and suggests that you exercise caution and strong oversight if you opt to engage a listed entity for these services. Although the freight forwarder or carrier may not be the end-user of the item(s) you are exporting, reexporting, or transferring (in-country), the freight forwarder/carrier will likely have access to the item(s) being exported, reexported, and/or transferred (in-country), thereby increasing the chance that the item(s) you are shipping will be diverted. Further, BIS recommends consulting the other export screening lists maintained by the U.S. Government to ensure that your use of the listed entity as a freight forwarder/carrier does not violate sanctions or restrictions administered by other U.S. Government agencies.

BIS does not prohibit the sale or transfer of commodities subject to the EAR to persons on the Entity List if those persons are in the United States.  However, the release of software source code or technology in the United States to a person on the Entity List or a person employed by or representing an organization on the Entity List may require a license as a “deemed export.”  Should such a person depart the United States, a license will be required for the export of commodities and software (other than software source code) consistent with the entity’s listing on the Entity List.  In addition, if at the time of the domestic sale or transfer in the United States, the transferor or seller had “knowledge” that the person on the Entity List or the person employed by or representing the organization on the Entity List intended to export the item(s) out of the United States without obtaining BIS authorization, a violation of the EAR under §736.2(b)(10) (General Prohibition Ten) and §764.2(e) may occur.  BIS recommends that exporters exercise a high level of due diligence prior to entering into a transaction with any person on the Entity List, regardless of where that person is located.  Note also that the release outside of the United States of software source code or technology subject to the EAR to a person on the Entity List or a person employed by or representing an organization on the Entity List may require a license or other EAR authorization prior to the “deemed reexport” of that software source code or technology.

BIS does not have jurisdiction over the import of items into the United States.  However, you should consult other lists maintained by the U.S. Government, as sanctions or other restrictions may apply to import transactions with the particular listed entity or from that particular country of import.  BIS publishes a consolidated version of all of the U.S. Government lists that may be relevant to your transaction.

Yes, if you can ensure that the entity acting as your agent does not have access to the item(s) prohibited by the Entity List’s licensing requirements and policies.  Note that BIS recommends that, as a "red flag" is associated with such transactions, you exercise caution and strong oversight if you opt to engage a sales agent that is, or is owned by, a listed entity. Note that the licensing requirements specified on the Entity List will apply if the sales agent has access to the restricted item being exported, reexported or transferred (in-country), including items that the sales agent would, in the normal course of business, use for product demonstrations. Further, you should check other lists maintained by the U.S. Government as sanctions or other restrictions may apply to transactions with the particular listed entity.

A student’s enrollment at a university included on the Entity List is a “red flag” which requires exporters undertake an additional level of due diligence before proceeding with any such transaction.  However, a student is not an integral part of the university (e.g., does not have fiduciary duty to from the university in the same manner that as an employee, officer, trustee, or person in a similar position in the university would) in which he/she is enrolled and therefore BIS does not include them in the licensing requirements and policy specific to the university.  With the caveat of the red flag mentioned above, BIS advises exporters to treat exports, reexports, and transfers (in country) to students as shipments to the country of which the student is a citizen.

Pursuant to §734.8 of the EAR, information resulting from fundamental research is not subject to the EAR.  Therefore, given that the collaboration remains limited to fundamental research, it cannot be subject to the Entity List’s licensing requirements and policies. Any research undertaken that involves the export, reexport, or transfer of an item subject to the EAR and that does not conform to the requirements of § 734.8 of the EAR may, depending on the licensing requirements and policies specified in the Entity List entry, require a license from BIS.

Employees of persons on the Entity List are subject to the licensing requirements and policies specific to their employer.  Therefore, in the case of universities on the Entity List, employees of the universities are subject to the same licensing policy and requirements that the universities are.  This also applies to officers, trustees, and other persons in a similar position with the university.

Yes. However, previous employment at any organization on the Entity List carries a “red flag” which requires an additional level of due diligence before proceeding with the hiring process.

It depends on what your company wants to donate, whether BIS requires a license for the export, reexport, or transfer of that item to the university (as specified in the Entity List entry for the university), and, given that a license is required, whether BIS approves your license application.

The Departments of Commerce, State, and the Treasury maintain separate lists for the programs each agency administers because these programs have different purposes and are regulated under different authorities.

BIS maintains three lists:  the Denied Persons List (DPL); the Unverified List; and the Entity List.  The Entity List is described in detail in these FAQs and can be found here. 

The DPL lists persons that have been denied export privileges; any dealings with persons listed on the DPL that violate the terms of their denial order would be a violation of the EAR.  The DPL can be found here.

The Unverified List is a list of parties that have not cooperated with BIS during post-shipment verification checks.  The presence of a party on the Unverified List in a transaction is a “red flag” that must be resolved before proceeding with the transaction.  The Unverified List can be found here.

The Departments of the Treasury and State maintain other lists that should be consulted before exporting, reexporting, or transferring item(s).  These lists include the Specially Designated Nationals and Blocked Persons (SDN) List, the Debarred List, and the lists of persons subject to Nonproliferation Sanctions.  You can find links to these lists here.

A consolidated version of all of the U.S. Government proscribed parties lists is available here.

The Entity List includes restrictions on exports, reexports, or transfers (in-country) to certain persons by reference, meaning that the EAR defines the licensing policy and requirements specific to such persons but does not necessarily include them as individual entries on the Entity List. These persons are designated in or pursuant to Executive Orders or other legal mechanisms. Examples of such persons include but are not limited to Specially Designated Global Terrorists (SDGTs), as referenced in §744.12 of the EAR, and Specially Designated Terrorists (SDTs), as referenced in §744.13 of the EAR.

In incorporating the lists maintained by other U.S. Government (USG) agencies by reference, BIS is clarifying the EAR licensing requirements and policies applicable to the entities on the other USG lists. BIS recommends that exporters, reexporters, or transferors in-country consult the other lists maintained by the USG when exporting, reexporting, and/or transferring (in-country) items since, in many cases, they will not be required to also seek separate authorization from BIS. Note, however, that in some cases an EAR authorization may still be required. See §§ 744.8, 744.12, 744.13, 744.14, 744.18, and 744.22 of the EAR for additional details. In other words, EAR license requirements supplement those of the other USG agencies.

No. The SDN List is published by the U.S. Department of the Treasury, Office of Foreign Assets Control (OFAC). The SDN List has different foreign policy objectives and legal requirements than the Entity List.

No. Although both the Denied Persons List (DPL) and the Entity List are administered by the Department of Commerce, they are separate and distinct lists. The DPL includes parties that have been denied export and reexport privileges. In contrast, the Entity List imposes specific license requirements for the export, reexport, or transfer (in-country) of specified items to the persons named on it.

An export of technology or source code (except encryption source code) is "deemed" to take place when it is released to a foreign national within the United States. See §734.2(b)(2)(ii) of the Export Administration Regulations (EAR). For brevity, these questions and answers refer only to "technology" but apply equally to source code.

Technology is "released" for export when it is available to foreign nationals for visual inspection (such as reading technical specifications, plans, blueprints, etc.); when technology is exchanged orally; or when technology is made available by practice or application under the guidance of persons with knowledge of the technology. See §734.2(b)(3) of the Export Administration Regulations (EAR).

Per Part 772 of the Export Administration Regulations (EAR), "technology" is specific information necessary for the "development," "production," or "use" of a product. The General Technology Note states that the "export of technology" is controlled according to the provisions of each Category." It further states that "technology required for the development, production, or use of a controlled product remains controlled even when applicable to a product controlled at a lower level." Please note that the terms "required," "development," "production," "use," and "technology" are all defined in Part 772 of the EAR. Controlled technology is that which is listed on the Commerce Control List.

Assuming that a license is required because the technology does not qualify for treatment under EAR99 and no license exception is available, U.S. entities must apply for an export license under the "deemed export" rule when both of the following conditions are met: (1) they intend to transfer controlled technologies to foreign nationals in the United States; and (2) transfer of the same technology to the foreign national's home country would require an export license.

Any foreign national is subject to the "deemed export" rule except a foreign national who (1) is granted permanent residence, as demonstrated by the issuance of a permanent resident visa (i.e., "Green Card"); or (2) is granted U.S. citizenship; or (3) is granted status as a "protected person" under 8 U.S.C. 1324b(a)(3). This includes all persons in the U.S. as tourists, students, businesspeople, scholars, researchers, technical experts, sailors, airline personnel, salespeople, military personnel, diplomats, etc. As noted, one exception to this general statement is a "protected person." "Protected persons" include political refugees and political asylum holders. Be aware that individuals seeking "protected person" status must satisfy all of the terms and conditions that are fully set forth in 8 U.S.C. 1324b(a)(3). It should be emphasized that although the deemed export rule may be triggered, this does not necessarily mean that a license is required. For example, the technology may be EAR99 or license exception eligible.

As noted above in Question 5, if the individual is a naturalized citizen or permanent resident of the United States, the "deemed export" rule does not apply. In other words, he or she is not subject to the provisions of the "deemed export" regulation. For individuals who are citizens of more than one foreign country, or have citizenship in one foreign country and permanent residence in another, as a general policy, the last permanent resident status or citizenship obtained governs. Questions 7 through 11 provide examples of situations involving individuals who are citizens of more than one foreign country, or have citizenship in one foreign country and permanent residence in another. If, for some reason, the status of a foreign national is not certain, then you should ask the Bureau of Industry and Security (BIS), to determine where the stronger ties lie, based on the facts of the specific case. For instance, the status of a foreign national could be uncertain in situations where information may indicate involvement with prohibited entities or activities, for example, missile or nuclear-related end-uses or end-users as identified in Part 744 of the EAR. In response to a request for the status of a foreign national, BIS will look at the foreign national's family, professional, financial, and employment ties.

Release of controlled technology to that individual in the U.K. would be treated as if the shipment were being made to the U.K. and licensing requirements, if any, would be the same as for a British national in the U.K.

The Indian national's U.K. permanent residency status still drives the licensing requirements and releases of technology to him or her would be considered as transfers to the U.K.

As long as the Indian foreign national maintains his or her permanent residency status in the U.K., transfers of technology to that individual would be deemed as transfers to the U.K.

If the former Indian national becomes a British citizen, transfers of technology would be viewed as transfers to the U.K.

As a general principle, the last citizenship obtained governs. As is clear in response to Question 10 above, the individual's most recent citizenship is with the U.K. and releases of technology would be viewed as releases to the U.K.

The information we normally request derives from a curriculum vitae/resume or from company background checks. The information that BIS may request as part of the license application process is requested in order to determine whether BIS should authorize the release of such controlled sensitive technology. The hiring of foreign nationals is not prohibited or regulated by the Export Administration Regulations (EAR). The EAR does not regulate employment matters. The justification for the "deemed export" rule is that there is no more effective way of disclosing sensitive technical information (e.g., design know-how) than to work side-by-side in a laboratory or on the production floor of a company. Our web page guidance is designed to assist you in pointing out the types of relevant information that BIS examines in connection with the license application review.

The term “deemed re-export” is often used to indicate the transfer of controlled U.S. technology to a third-country national overseas. As an example, a U.S. exporter transfers its controlled proprietary technology to a firm in country A. The firm in country A, in turn, employs an individual from country B who is not a permanent employee of the firm in country A and who will need the controlled proprietary technology to perform his or her assigned duties. Before transferring this controlled technology to the country B employee, the firm in country A is responsible for obtaining any required deemed re-export licenses as if it were transferring the technology to country B. Please see Section 734.2(b)(4) of the Export Administration Regulations (EAR).

Generally, technologies subject to the Export Administration Regulations (EAR) are those which are in the United States or of U.S. origin, in whole or in part. Most are proprietary. Technologies which tend to require licensing for transfer to foreign nationals are also dual-use (i.e., have both civil and military applications) and are subject to one or more control regimes, such as National Security, Nuclear Proliferation, Missile Technology, or Chemical and Biological Warfare.

Foreign technology with U.S.-origin technology commingled to a degree above a de minimis level is considered to be subject to the EAR. Technologies which may require an export license are those which are subject to the EAR and which are listed in the Commerce Control List, see Parts 734, 738, and 774 of the EAR.

Some technologies are under the exclusive jurisdiction of another agency of the U.S. government and are not subject to the EAR. These include defense services which are under the jurisdiction of the State Department and technology related to the production of special nuclear materials which is under the jurisdiction of the Energy Department.

Still other technologies do not require any authorization because they are already "publicly available." These include patent applications; publicly available technology and software (other than software and technology controlled as encryption items) that are already published or will be published; technology which arises during or as a result of fundamental research; or technology which is educational. See Part 734 of the EAR for details.

The Export Administration Regulations (EAR) definitions distinguish between software and technology. Software is one of the groups within each of the categories of items listed on the Commerce Control List (CCL). Software which is delineated on the CCL is controlled.

"Fundamental research" is basic and applied research in science and engineering where the resulting information is ordinarily published and shared broadly within the scientific community. It is distinguished from proprietary research and from industrial development, design, production, and product utilizations, the results of which ordinarily are restricted for proprietary and/or specific national security reasons. Normally, the results of "fundamental research" are published in scientific literature, thus making it publicly available. Research which is intended for publication, whether it is ever accepted by scientific journals or not, is considered to be "fundamental research." A large segment of academic research is considered "fundamental research." Because any information, technological or otherwise, that is publicly available is not subject to the Export Administration Regulations (EAR) (except for encryption object code and source code in electronic form or media) and thus does not require a license, "fundamental research" is not subject to the EAR and does not require a license. Please see §734.8 for a full discussion.

Exports of encryption technology and software source code are subject to the same regulatory requirements as other exports of technology and software source code.  However, many “deemed exports” of encryption technology and software source code are authorized under License Exception ENC (EAR Part 740.17).

License Exception ENC authorizes foreign employees (other than from Country Group E:1) of U.S. companies coming to the United States to work. However, ENC would not cover employees of a Romanian firm, for example, working at a U.S. company.  These foreign nationals are not "employees" of the U.S. company. As far as encryption source and object code are concerned, while in the United States, foreign nationals may use any type of encryption source code and object code. The only deemed export authorization required for encryption relates to encryption technology and when a U.S. person intends to provide technical assistance to foreign nationals using source code. (Please note that Export Administration Regulations (EAR) licensing requirements may apply for transfers of encryption software in the United States to an embassy or affiliate of a foreign country.) See our related encryption FAQ, question #17 for more guidance.

Probably not. Your firm would likely need a license for those foreign national engineers and technical people who work in the R&D and ADMP divisions with the controlled technologies. Your firm would probably not need licenses for those individuals who do not normally come into contact with the controlled technologies, such as those in the administrative area. However, you should review the job descriptions of all your foreign national employees. For example, technical managers and technical training personnel who are NOT at the sensitive divisions may need access to the controlled technologies in order to do their jobs, and so you may need to have deemed export licenses for technology transfer to them.

If he or she is properly documented for work in the United States, you may employ him or her. You must apply for an export license if you intend to release technology listed on the Commerce Control List which would require a license for export to India.

Yes, you are required to apply for a deemed export license. Under the sanctions imposed by the U.S. Government, any export which includes transfers of technology to foreign nationals requires a license to organizations on the Entity List. Because the Indian foreign national is still employed by the organization that is on the Entity List, a technology transfer to him or her is considered a technology transfer to the employer organization. Note that the sanctions apply to any technology subject to the Export Administration Regulations (EAR).

Under the Export Administration Regulations (EAR), U.S. government sponsored research is handled very much like corporate sponsored research. It may be "fundamental research," or it may be proprietary (see Question 23). See §§ 734.8 and 734.11 of the EAR for details. In addition, some U.S. government data may be subject to separate restrictions on dissemination such as security classification.

BIS has provided PTO with the authority to license, on BIS’s behalf, the export and re-export of technology that is subject to the EAR when the technology is in the form of a patent application or an amendment, modification, or supplement thereto or division thereof. (1). During the timeframe from the patent application to the issuance, the patent information remains subject to appropriate export control or classified controls and must be protected as such under the EAR, or the applicable export control jurisdictional authority. (2). If the inventor is a foreign national who is not a legal permanent resident, and the invention is his or her own technology, no deemed export license is required because no transfer has occurred. (3). Information associated with the patent which is not in the patent itself or product made as a result of the patent can still be export controlled and licensable. For additional details see Part 734.3(b)(1)(v) of the EAR and review the Advisory Opinion dated 1/11/2006, titled “Nexus between export and deemed export requirements under the EAR and the foreign filing requirements under the USPTO regulations”.

It depends. You need to look at the research and the contract terms for release of the results of the research. If there are no conditions placed on the research, and it is the intent of the research team to publish its findings in scientific literature, then it is considered "fundamental research," and no license is required. If the contract requires that the private corporation review the findings of the research team with the intent of controlling what results are to be released in open literature, then the research is considered proprietary, and a license is required.

No. Lawful U.S. permanent residents are not subject to the deemed export rule.

The deemed export rule does not apply to individuals who are:

• U.S. citizens.
• Persons lawfully admitted for permanent residence in the U.S.
• Protected individuals under the Immigration and Naturalization Act (8 U.S.C. 1324b(a)(3)).

If individuals in your organization fit into any of the three categories above, you need not apply for a deemed export license before transferring export controlled technology to them. For additional guidance on this topic, see Part 734.2(b)(2)(ii) of the EAR.

BIS recognizes an individual’s most recent country of citizenship or permanent residency as his or her home country for licensing requirements.

For example, if an individual is a citizen of China, but most recently became a Canadian citizen, then under the BIS deemed export licensing policy, we would recognize this individual as a Canadian for licensing purposes. In this example, export control licensing requirements for Canada would apply to this individual.

If an exporter is uncertain which country of origin should be used for deemed export license purposes or has a concern regarding a foreign national’s dual-citizenship status, then the exporter should contact BIS for further guidance and resolution (see Question (4)).

BIS policy is to recognize an individual’s most recent country of citizenship or permanent residency as his or her home country for licensing purposes.

For example, if an individual is a citizen of India, but has obtained permanent residency in the United Kingdom (U.K.), then this individual would be recognized as a U.K. permanent resident for licensing purposes. In this example, that means that this individual would be required to obtain a license only for technology which is export controlled to the U.K.

If, for some reason, the status of a foreign national is not certain, then you should seek an advisory opinion from BIS to determine where the stronger ties lie, based on the facts of the specific case.

In response to a request for the status of a foreign national, BIS will look at the foreign national’s family, professional, financial, and employment ties.

The EAR outlines specific parameters to determine whether technology is subject to the EAR or whether technology is not subject to the EAR.

“Use” technology that is not subject to the EAR and therefore not subject to deemed export licensing includes:

• Items that are exclusively controlled for export or reexport by other U.S. government agencies.
• Prerecorded records, printed books, pamphlets, and miscellaneous publications.
• Publicly available technology and software (excluding encryption), which includes:
  • Information already published or that will be published (see Part 734.7).
  • Information arising during or resulting from fundamental research (see Part 734.8).
  • Information which is educational (see Part 734.9).
  • Information included in certain patent applications (see Part 734.10).

If the “use” technology available to your foreign national falls into any of the above categories, then it is not subject to the EAR, and thus, a deemed export license is not required.

If you determine that the “use” technology available to your foreign national does not fall into any of the above categories, it may be subject to deemed export licensing depending on the commodity classification of the “use” technology and the country of origin of the foreign national.

The EAR defines “use” technology as specific information necessary for the “operation, installation (including on-site installation), maintenance (checking), repair, overhaul and refurbishing” of a product. See Part 772, definitions of “technology” and “use.” If the technology available to the foreign national does not meet all of these attributes, then it is not “use” technology for deemed export licensing purposes.

If the technology at issue does meet all of these attributes, then it constitutes “use” technology. Pursuant to the General Technology Note in Supplement 2, Part 774 of the EAR, the export of “technology” that is “required” for the “use” of items on the Commerce Control List (CCL) is controlled according to the provisions in each Category. This means that you must first determine whether the “use” technology associated with an item is listed on the CCL, and then, following the usual rules of the CCL and the associated Country Chart, you must determine whether a license is required to export the “use” technology at issue to the home country of the foreign national.

In other words, the commodity classification and licensing procedures for “use” technology are the same as for any item on the CCL. You should determine whether a particular Export Control Classification Number (ECCN) is associated with the particular “use” technology you have, and if so, then determine whether a license is required for the release of that “use” technology to a particular country.

If you plan to release controlled “use” technology to a foreign national, and a license would be required to export that “use” technology to the home country of that foreign national, then you must apply for a license before releasing the “use” technology to that foreign national.

Also note that “required” technology, as applied to “use” “technology” or “software,” refers to only that portion of “technology” or “software” which is peculiarly responsible for achieving or exceeding the controlled performance levels, characteristics or functions.

If the “use” technology does not enable an operator to replicate or improve the design of the controlled item being operated, and the operation of the controlled item is not directly related to the production, development, or use of a nuclear explosive, chemical or biological weapon, or missile or rocket system, then the “use” technology does not meet the “required” threshold and is likely classified as EAR99.

Not necessarily. Keep in mind that the deemed export rule does not regulate the operation of controlled equipment. Rather, it is a release to a foreign national of export-controlled “use” technology that may have deemed export licensing implications, and “use” technology includes all of the attributes of “use” as defined in the EAR Part 772 (i.e., operation, installation, maintenance, repair, refurbishing, and overhaul).

If the foreign national has access only to the technology that is necessary to operate the export controlled equipment, a release of “use” technology has not occurred and no deemed export license requirement is triggered.

You do not need a license or authorization for the mere presence of a foreign graduate student in your laboratory. You do need a license if you plan to transfer controlled technology to a foreign national and the export of that technology is restricted to the foreign national’s home country.

The EAR license requirements apply to the transfer of controlled technology for “development”, “production”, or “use” of certain equipment. See Part 772 for definitions of all three terms.

If the graduate student is receiving technology that has already been published, then that technology is not subject to the EAR and no license is required for the release of that technology. See §734.3(b)(3) and §734.7 (defining published technology). BIS considers user manuals for equipment to be “published” when they are available from the manufacturer, either 1) for purchase at a price that does not exceed the cost of distribution; or 2) as part of the normal materials that accompany the equipment when sold to the public and without restrictions on further distribution.

If the graduate student is receiving technology in the context of instruction in a catalog course (or associated teaching laboratories) of an academic institution, then that technology is not subject to the EAR and no license is required for the release of that technology. See §734.3(b)(3)(iii) and §734.9.

If the graduate student is receiving technology that arises during, or results from, “fundamental research,” then that technology is not subject to the EAR and no license is required for the release of that technology. See §734.3(b)(3)(ii) and §734.8.

But if you plan to release technology that is subject to the EAR and that is, according to the CCL and Country Chart, restricted for export to the home country of the foreign graduate student, then you will need a deemed export license.

Under the EAR, releases of EAR99 technology to Cuban nationals require a deemed export license. See §746.2 of the EAR. In addition, releases of EAR99 technology to certain persons described in Part 744 of the EAR including (but not limited to) Specially Designated Global Terrorists require a deemed export license. See §744.12 of the EAR.

Additionally, pursuant to the Iranian Transactions Regulations maintained by the Department of the Treasury's Office of Foreign Assets Control, certain releases of EAR99 technology require a license from OFAC. See 31 C.F.R. §560.418.

For all other foreign nationals, EAR99 technology may be released without a license, unless you know that the foreign national intends to use such technology in activities related to nuclear, chemical or biological weapons, or missiles, as described in Part 744 of the EAR.

In certain circumstances, a release of EAR99 technology to a foreign national could constitute a violation of Section 764.2(e) of the EAR. This provision bars the taking of certain enumerated actions with respect to an item subject to the EAR with knowledge that a violation of the EAR has occurred, is about to occur, or is intended to occur in connection with such item. For example, while a release of EAR99 technology to a U.S. person might not in itself be subject to the EAR's deemed export licensing requirements, such release could trigger a violation of Section 764.2(e) if it occurred with knowledge that such technology will subsequently be released to a foreign national to whom the deemed export licensing requirements apply (e.g., a Cuban national). Parties should refrain from structuring transactions in a manner to evade the deemed export licensing requirements.

The Commerce Department's amendments to the Export Administration Regulations implementing the Trade Sanctions and Export Enhancement Act of 2000 (TSRA) allow a wide range of food and agricultural exports to Cuba. BIS created a new License Exception, Agricultural Commodities (AGR), to authorize exports and certain reexports of eligible agricultural commodities that are classified as EAR99 (i.e., not listed on the Commerce Control List), to Cuba, subject to certain criteria and restrictions. TSRA expands the pool of eligible recipients in Cuba to include both government and non-government entities, as long as the end-users do not support international terrorism.

Dry fertilizers containing less than 15% ammonium nitrate by weight are eligible for License Exception AGR. Dry fertilizers containing 15% or more ammonium nitrate will be controlled under a new ECCN (Export Control Classification Number), 1C997, and are not eligible for License Exception AGR. Liquid fertilizers are eligible for AGR regardless of the concentration of ammonium nitrate. Pesticides and herbicides are not eligible for export or reexport under License Exception AGR, nor are exports or reexports of medicines and medical devices to Cuba. Medical items remain subject to the 1992 Cuban Democracy Act and require a standard license for export to Cuba. These include vaccines and immunotoxins that are classified on the CCL under ECCN 1C991.

The Treasury Department's Office of Foreign Assets Control (OFAC) implements TSRA as it relates to exports to Iran, Libya, and Sudan of agricultural commodities, medicines, and medical devices.

The Bureau of Industry and Security evaluates items in applications submitted to OFAC to determine whether the item is controlled on the Commerce Control List (CCL). Therefore, exporters should include technical specifications in their applications related to the control parameters on the CCL for the category of item they intend to export. For example, an exporter interested in exporting chemicals should be aware that some chemicals and chemical mixtures are controlled on the CCL, and should supply sufficient information to identify the chemicals to be exported. We encourage exporters to include the Chemical Abstract Service (C.A.S.) Registry numbers, if they exist. Exporters should also provide information related to the form, composition, and the percentage concentration of each component of a mixture to total 100%, so that BIS may classify the chemicals accurately and in a timely manner. The same need for specific details applies to vaccines and medical kits containing biological toxins, some of which are controlled on the CCL. Certain vaccines and immunotoxins are classified under ECCN 1C991. If you do not submit the information we need, we will not be able to classify your item.

Individual components of equipment controlled under 2B350 are not controlled under 2B350 and do not require an export license to most destinations. However, Section 764.2(h) of the EAR prohibits exporters from engaging in transactions (such as disassembling equipment and exporting it as separate parts) with the intent to evade export controls. Also, impellers that are subject to the EAR are subject to the end-use restrictions described in Part 744.

Export control jurisdiction is determined by the nature of the primary use (civilian or military) of the item being exported. Since these kits are designed to destroy chemical and biological agents that are controlled pursuant to the International Traffic in Arms Regulations, exporters should contact the Department of State's Office of Defense Trade Controls for export authorization. However, certain incinerators designed to destroy chemical warfare agents or chemical weapons precursors controlled by ECCN 1C350 are controlled on the CCL under ECCN 2B350. Also, technology for the disposal of dual-use precursors or microbiological materials controlled under ECCNs 1C350-1C354 are controlled under ECCN 1E351.

When the item you seek to export is a chemical, you must provide the Chemical Abstract Service (C.A.S.) Registry number, if it exists. You should also provide information related to the form, composition, and concentrations of individual components in a mixture to total 100%. When the proposed export is for biological materials, a technical description of the item to be exported must be included.

In either case, the commodity must be appropriate for the proposed end-use, which should be described in detail. For example, specific herbicides or pesticides to be manufactured using controlled chemicals should be listed by trade or common name. Applications for use of chemicals or biological materials in research should describe how those items will be utilized in the research process. Moreover, medical literature can be, and frequently is, used to document the appropriateness of the proposed end-use as well as an end user's qualifications.

It is also helpful to describe the transaction fully. Commentary addressing the need for high volumes of a controlled item can also be helpful.

Under the sponsorship of the Government of Japan, U.S. companies may bid to provide the technology and equipment to incinerate the chemical weapons Japan abandoned in China after World War II. This is a multi-billion dollar undertaking. U.S. firms interested in participating by exporting controlled commodities and technology for the project to Japan, China, or both are encouraged to contact the Chemical and Biological Controls Division of BIS at 202-501-7900 for guidance. Exporters are reminded that sharing controlled U.S. technology even in the bidding process may require an export license.

You could have submitted your application over the Internet via SNAP-R, the Simplified Network Application Process Redesign. You will receive a same-day acknowledgment of your submission from BIS and you will have saved several days otherwise required for mailing and converting the application to an electronic format. Additional information about SNAP-R is available on BIS' website.

Information which substantiates the legitimate activities of the end-user could be supplied with the application. For example, medical researchers seeking chemicals or biological materials frequently have publication records that can document the qualifications of the researcher and the end-use. Supplying an unambiguous, detailed end-use description and a clear explanation of the transaction will help significantly reduce the need for interagency officials to contact an exporter for additional information, thus delaying a decision on an application.

You should also know your commodity, and whether it is on the Commerce Control List. BIS has received license applications for commodities that did not meet the control parameters and could have been exported without a license. If in doubt, you can, and should, request a commodity classification before applying for a license application.

A purchase order is not a prerequisite to obtaining an export license for an item controlled for CB reasons. However, Part 742.2(b) lists the existence of a pre-existing contract as a factor to be considered in evaluating a license application for exports of such items. Possession of a purchase order for a shipment to a country of concern may expedite the licensing process.

Our export control regimes are end user driven. Each end user must be reviewed individually, and larger numbers of end users obviously take longer. Should difficulties arise in obtaining the information needed to approve a given end user, the entire case is delayed. Experience has shown that limiting the number to 20 per license application minimizes the potential for delays in the review process.

License application for chemical and biological commodities are reviewed by the Departments of State and Defense, with input from the intelligence community. Cases that are escalated to the Operating Committee are also reviewed by the Department of Energy.

Industry standards for common equipment, such as pumps and valves, require their production from high quality materials. These same pieces of equipment can be used in chemical (or biological) weapons facilities. Controlling exports of this equipment supports the government's non-proliferation efforts.

No. PFIB is a CWC Schedule 2A chemical controlled under Export Control Classification Number 1C355 of the Export Administration Regulations (EAR). Consumer products for retail sale containing Schedule 2 chemicals may be exported without a license.

Regarding the export of a Teflon product that would not meet the definition of a consumer product: Under the EAR, export of PFIB requires a license if it is present in a mixture that contains more than 1% free PFIB. A mixture is made up of two or more components which do not react together under the conditions under which the mixture is stored; they can be separated by physical means. PFIB in Teflon is irreversibly reacted into Teflon and no longer can be separated readily. Therefore, the export of Teflon in its standard form is not considered to be the export of a mixture containing PFIB.

Yes. There are several provisions in the Export Administration Regulations that make the exporter responsible for the end-use of the exported items. These provisions are primarily in the end-use restrictions set out in Part 744. (These restrictions are often informally referred to as "EPCI" rules. (Enhanced Proliferation Control Initiative.)) One example of a Part 744 restriction is the requirement to obtain an export license for an item that would otherwise not need one, if the exporter knows or is informed that the item will be used in the design, development, production, stockpiling, or use of chemical or biological weapons in a country of concern. There are several other provisions of Part 744 that you should consult.

Encryption registration is a prescribed set of information about a manufacturer and/or exporter of certain encryption items that must be submitted to the Bureau of Industry and Security as a condition of the authorization to export such items under License Exception (ENC)or as “mass market” items.

Advance encryption registration is required for exports and reexports of items described in paragraphs 740.17(b)(1), (b)(2), and (b)(3) and paragraphs 742.15(b)(1), and (b)(3) of the Export Administration Regulations (EAR). Registration is made through SNAP-R by submitting the questionnaire set forth in Supplement No. 5 to part 742 of the EAR (point of contact/company overview/types of products/, etc.). Registration of a manufacturer authorizes the manufacturer as well as other parties to export and reexport the manufacturer’s encryption products that the manufacturer has either self-classified or has had the items classified by BIS, pursuant to the provisions referenced above. A condition of the authorization is that the manufacturer must submit an annual self-classification report for relevant encryption items.

Once you have properly registered with BIS, the SNAP-R system will automatically issue an Encryption Registration Number (ERN), e.g., R123456, upon submission of a request. BIS estimates that the entire registration procedure should take no more than 30 minutes.

Any party who exports certain U.S.-origin encryption products may be required to submit an encryption registration, classification request and/or self-classification report; however, if a manufacturer has registered and has self-classified relevant items and/or had items classified by BIS, and has made the classifications available to other parties such as resellers and other exporters/reexporters, such other parties are not required to register, to submit a classification request, or to submit an annual self-classification report.

Exporters or reexporters that are not producers of the encryption item can rely on the Encryption Registration Number (ERN), self-classification report or CCATS that is published by the producer when exporting or reexporting the registered and/or classified encryption item. Separate encryption registration, commodity classification request or self-classification report to BIS is NOT required.

Please continue to the next question if the information is not available from the producer or manufacturer.

If you are not the producer and are unable to obtain the producer’s information or if the producer has not submitted an encryption registration, self-classification report or commodity classification for his/her products to BIS, then you must register with BIS. The registration process will require you to submit a properly completed Supplement No. 5 to part 742 and subsequent Supplement No. 8 Self Classification Report for the products. You will receive an ERN for the registered products or CCATSs as appropriate. BIS recognizes that non-producers who need to submit for encryption registration may not have all of the information necessary to complete Supplement No. 5 to part 742. Therefore, special instructions have been included in Supplement No. 5 to account for this situation.

For items described in Part 740.17(b)(2) and (b)(3) or Part 742.15(b)(3) that require the classification by BIS, the non-producer is required to submit as much of the technical information required in Supplement No. 6 to Part 742 - Technical Questionnaire for Encryption Items as possible.

Yes, special instructions for this purpose are provided in paragraph (r) of Supplement No. 2 to Part 748 of the EAR for this purpose. The information in block 14 (applicant) of the encryption registration screen and the information in Supplement No. 5 to part 742 must pertain to the company that seeks authorization to export and reexport encryption items that are within the scope of this rule. An agent for the exporter, such as a law firm, should not list his/her name in block 14. The agent however may submit the encryption registration and list himself/herself in block 15 (“other party authorized to receive license”) of the encryption registration screen in SNAP-R.

All reports (i.e., the semi-annual sales report and the annual self-classification report) must be submitted to both BIS and the ENC Encryption Request Coordinator.

An annual self-classification report is required for producers of encryption items described by paragraphs 740.17(b)(1) and 742.15(b)(1) of the EAR. The information required and instruction for this report is provided in Supplement No. 8 to Part 742-Self-Classification Report for Encryption Items. Reports are submitted to BIS and the Encryption Request Coordinator in February of each year for items exported or reexported during the previous calendar year (i.e., January 1 through December 31) pursuant to the encryption registration and applicable sections 740.17(b)(1) or 742.15(b)(1) of the EAR. Annual self-classification reports are to be submitted to crypt-Supp8@bis.doc.gov. This e-mail address is being protected from spambots. You need JavaScript enabled to view it and enc@nsa.gov. This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

Semi-annual sales reporting is required for exports to all destinations other than Canada, and for reexports from Canada for items described under paragraphs (b)(2) and (b)(3)(iii) of section 740.17. Paragraph 740.17(e)(1(iii) contains certain exclusions from this reporting requirement. Paragraphs 740.17(e)(1)(i) and (e)(1)(ii) contains the information required and instructions for submitted the semi-annual sales reports. The first report is due no later than August 1 for sales occurring between January 1 and June 30 of the year, and the second report is due no later than February of the following year for sales occurring between July 1 and December 31 of the year. Semi-annual sales reports continue to be submitted to: crypt@bis.doc.gov. This e-mail address is being protected from spambots. You need JavaScript enabled to view it and enc@nsa.gov. This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

Yes, License Exception ENC is available for transfer of encryption technology. Specifically, paragraph 740.17(b)(2)(iv) has been amended to permit exports and reexports of encryption technology as follows:

(A) Technology for "non-standard cryptography." Encryption technology classified under ECCN 5E002 for "non-standard cryptography," to any end-user located or headquartered in a country listed in Supplement No. 3 to this part;

(B) Other technology. Encryption technology classified under ECCN 5E002 except technology for "cryptanalytic items," "non-standard cryptography," or any "open cryptographic interface," to any non-"government end-user" located in a country not listed in Country Group D:1 or E:1 of Supplement No. 1 to part 740 of the EAR.

Non-standard cryptography, defined in Part 772– Definition of Terms, “means any implementation of “cryptography” involving the incorporation or use of proprietary or unpublished cryptographic functionality, including encryption algorithms or protocols that have not been adopted or approved by a duly recognized international standards body (e.g., IEEE, IETF, ISO, ITU, ETSI, 3GPP, TIA, and GSMA) and have not otherwise been published.”

The information in Supplement No. 5 to Part 742 must pertain to the registered company, not to the submitter. Specifically, the “point of contact” information must be for the registered company, not a law firm or consultant filing on behalf of the registered company.

You may answer questions 4 and 7 in Supplement No. 5 to part 742 as “not applicable” if your company is not the producer of the encryption item. An answer must be give for all other questions. An explanation is required when you are unsure.

Encryption commodity classification determinations should be submitted through SNAP-R. Before entering SNAP-R, you should prepare the following supporting documents:

1. Letter of Explanation
2. Supplement No. 6 to part 742. Complete all questions. Question number 11 asks whether the item fits the criteria set forth in 740.17(b)(2)
3. Technical Documents: This may include technical data sheets, marketing brochures, specification sheet

After accessing SNAP-R, fill-in a commodity classification determination request and upload the supporting documents into SNAP-R.

If you are requesting a classification of an item is described in paragraph 740.17(b)(1) (in other words, the item is not described in either Section 740.17(b)(2) or (b)(3)), a Supplement No. 6 questionnaire is not required as a supporting document. Provide sufficient information about the item (e.g., technical data sheet and/or other explanation in a separate letter of explanation) for BIS to determine that the item is described in paragraph 740.17(b)(1). If you are not sure that your product is authorized as 740.17(b)(1) and you want to confirm that it is authorized under 740.17(b)(1), providing answers to the questions set forth in Supplement No. 6 to part 742 with your request should provide BIS with sufficient information to make this determination.

The annual self-classification report must be submitted as an attachment to an e-mail to BIS and the ENC Encryption Request Coordinator. Reports to BIS must be submitted to a newly created e-mail address for these reports (crypt-Supp8@bis.doc.gov. This e-mail address is being protected from spambots. You need JavaScript enabled to view it.). Reports to the ENC Encryption Request Coordinator must be submitted to its existing e-mail address (enc@nsa.gov. This e-mail address is being protected from spambots. You need JavaScript enabled to view it.). The information in the report must be provided in tabular or spreadsheet form, as an electronic file in comma separated values format (CSV) only. In lieu of email, submissions of disks and CDs may be mailed to BIS and the ENC Encryption Request Coordinator.

An annual self-classification report for applicable encryption commodities, software and components exported or reexported during a calendar year (January 1 through December 31) must be received by BIS and the ENC Encryption Request Coordinator no later than February 1 the following year. If no information has changed since the previous report, an email must be sent stating that nothing has changed since the previous report or a copy of the previously submitted report must be submitted.

Note 4 to Category 5, Part 2 in the Commerce Control List (Supplement No. 1 to Part 774) excludes an item that incorporates or uses “cryptography” from Category 5, Part 2 controls if the item’s primary function or set of functions is not “information security,” computing, communications, storing information, or networking, and if the cryptographic functionality is limited to supporting such primary function or set of functions. The primary function is the obvious, or main, purpose of the item. It is the function which is not there to support other functions. The “communications” and “information storage” primary function does not include items that support entertainment, mass commercial broadcasts, digital rights management or medical records management.

Examples of items that are excluded from Category 5, Part 2 by Note 4 include, but are not limited to, the following:

Consumer applications. Some examples:

• piracy and theft prevention for software or music;
• music, movies, tunes/music, digital photos – players, recorders, and organizers;
• games/gaming – devices, runtime software, HDMI and other component interfaces, development tools;
• LCD TV, Blu-ray / DVD, video on demand (VoD), cinema, digital video recorders (DVRs) / personal video recorders (PVRs) – devices, on-line media guides, commercial content integrity and protection, HDMI and other component interfaces (not videoconferencing);
• printers, copiers, scanners, digital cameras, Internet cameras – including parts and sub-assemblies;
• household utilities and appliances.

Business / systems applications: systems operations, integration and control. Some examples:

• business process automation (BPA) – process planning and scheduling, supply chain management, inventory and delivery;
• transportation – safety and maintenance, systems monitoring and on-board controllers (including aviation, railway, and commercial automotive systems), ‘smart highway’ technologies, public transit operations and fare collection, etc.;
• industrial, manufacturing or mechanical systems - including robotics, plant safety, utilities, factory and other heavy equipment, facilities systems controllers such as fire alarms and HVAC;
• medical / clinical – including diagnostic applications, patient scheduling, and medical data records confidentiality;
• academic instruction and testing / on-line training - tools and software;
• applied geosciences – mining / drilling, atmospheric sampling / weather monitoring, mapping / surveying, dams / hydrology.

Research / scientific / analytical. Some examples:

• business process management (BPM) – business process abstraction and modeling;
• scientific visualization / simulation / co-simulation (excluding such tools for computing, networking, cryptanalysis, etc.);
• data synthesis tools for social, economic, and political sciences (e.g., economic, population, global climate change, public opinion polling, etc. forecasting and modeling).

Secure intellectual property (IP) delivery and installation. Some examples:

• software download auto-installers and updaters;
• license key product protection and similar purchase validation;
• software and hardware design IP protection;
• computer-aided design (CAD) software and other drafting tools.

Your item meets the grandfathering provisions set forth in section 740.17(f)(1) of the EAR. You do not need to submit an encryption registration (Supplement No. 5), an annual self-classification report (Supplement No. 8), or semi-annual sales reports for the item.

A license may be required in certain circumstances for both deemed exports and deemed reexports. For encryption items, the deemed export rules apply only to deemed exports of technology and to deemed reexports of technology and source code. There are no deemed export rules for transfers of encryption source code to foreign nationals in the United States. This is because of the way that section 734.2 defines exports and reexports for encryption items.

For transfers of encryption technology within the United States, section 740.17(a)(2) of license exception ENC authorizes the export and reexport of encryption technology “by a U.S. company and its subsidiaries to foreign nationals who are employees, contractors, or interns of a U.S. company . . .” There is no definition of “U.S. company” in the EAR; however, BIS has interpreted this to apply to any company operating in the United States. This means that deemed export licenses are generally not required for the transfer of encryption technology by a company in the U.S. to its foreign national employees. A deemed export license may be required if, for example, a company operating in the U.S. were to transfer encryption technology to a foreign national who is not an employee, contractor, or intern of a company in the United States. License exception ENC does not authorize deemed exports or reexports to any national of a country listed in Country Group E:1.

For deemed reexports, the end-user would have to be an employee, contractor, or intern of a “U.S. Subsidiary” for 740.17(a)(2) to apply, or a ‘private sector end-user’ headquartered in a Supplement 3 country for 740.17(a)(1) to apply. The term “contractor” in this context means a contract employee (i.e., a human person). License exception ENC does not authorize deemed exports or reexports to any national of a country listed in Country Group E:1.

Also note that as of June 25, 2010, encryption technology (except technology for “cryptanalytic items,” “Open Cryptographic Interface” items, and “non-standard cryptography”) that has been reviewed is eligible for license exception ENC to any non-government end user located outside of Country Group D:1. Also, encryption source code that has been reviewed by BIS and made eligible for license exception ENC under 740.17(b)(2) is eligible for export and reexport to any non-government end-user. Thus encryption technology and source code that have been reviewed are eligible for export and reexport to a broader range of end-users than 740.17(a) allows. Again, section 740.17 does not authorize deemed exports or reexports to any national of a country listed in Country Group E:1.

The Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies, the first global multilateral arrangement covering both conventional weapons and sensitive dual-use goods and technologies, received final approval by 33 co-founding countries in July 1996 and began operations in September 1996.

As a means of contributing to international and regional security and stability, the Arrangement was designed to prevent destabilizing accumulations of arms and dual-use goods and technologies by establishing a process of transparency, consultation and, where appropriate, encouraging national policies of restraint, and by promoting greater responsibility and accountability in transfers of arms and dual-use goods and technologies.

The Participating States seek through their national policies to ensure that transfers of arms dual-use goods and technologies do not contribute to the development or enhancement of military capabilities that undermine the goals of the Wassenaar Arrangement and are not diverted to support such capabilities.

The decision to transfer or deny an item is the sole responsibility of each Participating State and the Arrangement does not impede bona fide civil transactions. The Arrangement considers exports to non-members only and is not directed against any state or group of states. All measures undertaken with respect to the Arrangement are in accordance with national legislation and policies and implemented on the basis of national discretion.

The Wassenaar Arrangement is also designed to deal firmly with states whose behavior is a cause for serious concern by preventing, through shared national policies of restraint, their acquisition of armaments and sensitive dual-use goods and technologies for military end-use.

Participating States maintain effective export controls on all items on the Wassenaar Arrangement Munitions and Dual-Use lists, with the objective of preventing unauthorized transfers or re-transfers of those items. These lists will be reviewed periodically to take into account technological advances or other changes in circumstances.

The Dual-Use List, or Basic List (Tier 1), has two nested sub-divisions, a Sensitive List (Tier 2) and a very Sensitive List (Tier 2 sub-set). For items on the Sensitive List, information exchange requirements are more extensive (see below). For items on the Very Sensitive List (e.g., stealth technology materials, equipment related to submarine detection, advanced radar, advanced jet engine technology), Participating States are to exercise "extreme vigilance" with respect to exports.

The Wassenaar Arrangement is designed to complement and reinforce, without duplication, the existing regimes for weapons of mass destruction and their delivery systems. The composition and goals of the Arrangement close a critical gap in the international non-proliferation mechanisms, which have concentrated on preventing the proliferation of weapons of mass destruction and their delivery systems.

The Arrangement does not interfere with the rights of states to acquire legitimate means with which to defend themselves pursuant to Article 51 of the Charter of the United Nations, nor does it, as mentioned, impede bona fide civil transactions.

Participating States are concerned with preventing destabilizing accumulations of arms and sensitive dual-use goods and technologies and with preventing the acquisition of arms and sensitive dual-use goods and technologies for military end-use if the situation in a region or the behavior of a states, or becomes, a cause for serious concern to the Participating States.

The Arrangement is open on a global and non-discriminatory basis to prospective adherents that comply with the agreed criteria. Admission of new members requires the consensus of all members.

To be admitted, a state must: be a producer/exporter of arms or sensitive industrial equipment; maintain non-proliferation policies and appropriate national policies including: adherence to non-proliferation policies, control list and, where applicable, guidelines of the Nuclear Suppliers Group (NSG), the Missile Technology Control Regime (MTCR) and the Australia Group; and adherence to the Nuclear Non-proliferation Treaty (NPT), the Biological and Toxicological Weapons Treaty (BWC), the Chemical Weapons Treaty (CWC) and, where applicable, START 1, including the Lisbon Protocol; and maintain fully effective export controls.

The Arrangement does not have an observer category.

All non-Participating States are encouraged to maintain fully effective export controls, to adopt national policies consistent with the objectives of the Wassenaar Arrangement and to adhere to relevant non-proliferation treaties and regimes. Maintaining fully effective export controls could include implementation of the Wassenaar Arrangement control lists in accordance with national legislation and regulations.

The current 33 Participating States of the Wassenaar Arrangement are: Argentina, Australia, Austria, Belgium, Bulgaria, Canada, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Japan, Republic of Korea, Luxembourg, the Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Russian Federation, Slovak Republic, Spain, Sweden, Switzerland, Turkey, Ukraine, United Kingdom, United States.

The Wassenaar Arrangement provides a venue in which governments can consider collectively the implications of various transfers on their international and regional security interests. This is the principal security benefit that membership brings. Through transparency and consultation, suppliers of arms and dual-use items can develop common understandings of the risks associated with their transfer and assess the scope for coordinating national control policies to combat these risks.

For example, at the Plenary Meeting in December 1996, Participating States shared detailed information on export policies to Sudan, Central Africa and the successor states of the former Yugoslavia. They also issued a public statement confirming that, as a matter of national policy, no participant transfers arms or ammunition to the parties to the conflict in Afghanistan. Valuable discussions have continued in 1997 and in 1998 on the need to exercise maximum restraint with respect to arms transfers to areas of conflict in Central Africa.

Membership in the Wassenaar Arrangement does not provide an entitlement to obtain arms or dual-use goods or technologies from another member and no obligation to supply it. Members are expected, just as such trade between members and non-members, to exercise responsibility and appropriate vigilance in trade with other members.

However, a country's record of consistent fulfillment of membership criteria and commitments clearly would be positive factors taken into account in members' export decisions.

Information exchange requirements are set forth in the Arrangement's Initial Elements, which comprise the commitments undertaken by Participating States.

Participating States also exchange on a voluntary basis general information that will enhance transparency and that will lead to discussion among all Participating States of transfers of arms and sensitive dual-use goods and technologies and on the risks associated with such transfers in order to consider, where necessary, the scope for coordinating national control policies to combat these risks.

Information exchanged in the Arrangement can include any matter that individual Participating States wish to bring to the attention of other members, such as emerging trends in weapons programs, projects of concern and the accumulation of particular weapon systems. For those wishing to do so, notifications may go beyond those agreed upon.

The Arrangement's specific information exchange requirements involve semi-annual notifications of arms transfers, currently covering seven categories derived from the UN Register of Conventional Arms (including model and type information), Sensitive List dual-use transfers and denials of Basic List dual-use transfers. Members are also required to report with 30-60 days any denials of Sensitive List items. Any member that undercuts such denials (i.e., export the denied item to the same end-user) within three years of the denial must report the issuance of the export license within 30-60 days.

Denial reporting helps to alert members that a non-member may be seeking an item that would undermine the objectives of the regime and helps to foster common and consistent export policies, while eliminating inadvertent undercuts by other members.

Over time, such information exchanges will help member detect and prevent destabilizing accumulations or emerging trends or threats that may undermine the regime's objectives. Any information on specific transfers in addition to that specified above may be requested through normal diplomatic channels.

Information exchanged in the Arrangement remains confidential and is treated as privileged diplomatic communications. However, Participating States can discuss whether to make information public.

In accordance with the objectives of the Arrangement, Participating States meet on a regular basis to ensure that transfers of conventional arms and transfers of dual-use goods and technologies are carried out responsibility and in furtherance of international and regional peace and security. Meetings are held in Vienna, where the Arrangement has established its headquarters and a small Secretariat. Plenary Meetings are held at least once a year and the Plenary has established a General Working Group and an Experts' Group, which meet periodically.

Decisions are made by consensus.

The Wassenaar Arrangement has decided to conduct outreach activities to prospective members and non-members. These outreach activities, conducted by the Plenary Chairman, Secretariat personnel or by teams composed of Participating State representatives, are designed to prepare prospective members for admission and to keep non-members informed about the group's activities, within the limits set by the Arrangement's confidentiality guidelines, and encouraged to maintain effective export controls and appropriate national policies.

Financial needs of the Arrangement are covered under annual budgets adopted at Plenary Meetings.

BIS allows exports and certain reexports of "agricultural commodities" to Cuba under the License Exception AGR.

TSRA defines agricultural commodities by reference to Section 102 of the Agricultural Trade Act of 1978 (7 U.S.C. §5602). Agricultural commodities include, but are not limited to, food, feed, fish, shellfish and fish products; beer, wine and spirits; soft drinks; livestock; fiber, including cotton, wool and other fibers; tobacco and tobacco products; wood and wood products, including lumber and utility poles; seeds; and reproductive materials such as fertilized eggs, embryos, and semen. In addition, vitamins, minerals, food additives and dietary supplements, and bottled water are also included. Organic and inorganic fertilizers are also included , unless BIS classifies the fertilizer under ECCN 1C997 (i.e., dry fertilizers containing more than 15% ammonium nitrate - see question #3 below). The Department of Agriculture maintains a [pdf] list of agricultural commodities that are eligible for License Exception AGR. There are three commodities on this list - - live horses, western red cedar, and fertilizers - - that require an official commodity classification from BIS to determine whether or not they are eligible for AGR. Note that bottled water, vitamins, minerals, food additives and dietary supplements are not the Department of Agriculture list, but are considered agricultural commodities by BIS and OFAC. BIS and OFAC use the same definitions for agricultural commodities.

Yes. Any item that is on the Commerce Control List is not eligible. For example, live horses exported by sea (ECCN 0A980) and unprocessed western red cedar (ECCN 1C988) are not eligible. Neither is ammonium nitrate, including certain fertilizers and fertilizer blends. Dry fertilizers containing more than 15% by weight ammonium nitrate are classified as ECCN 1C997 and are not eligible. Dry fertilizer containing 15 % or less ammonium nitrate and liquid fertilizers regardless of the concentration of ammonium nitrate are eligible. Exporters who are not sure if their products are eligible should submit a commodity classification request to BIS.

Yes. Cuban government entities may be recipients of U.S. exports of agricultural commodities, unless the Cuban government entity is involved in promoting international terrorism (e.g., listed as a Specially Designated Terrorists or Foreign Terrorist Organization), has been denied export privileges by the Department of Commerce and the transaction would violate the terms of the denial order, or is engaged in weapons proliferation activities).

No. The definition of agricultural commodities used in TSRA does not include pesticides, insecticides, or herbicides. Potential exporters, however, may apply to export such items to Cuba under BIS' standard licensing procedures. In general, our policy is to deny applications for licenses to export most items to Cuba; however, pesticides and herbicides might be approved on a case-by-case basis as exports to provide support for the Cuban people (see Section 746.2(b) of the EAR). Applications to export such items to well-known international organizations for public health purposes are those least likely to be denied.

Whether or not an item is genetically modified does not affect its eligibility for License Exception AGR. If an item is both an agricultural commodity and EAR99, it is eligible. Note that certain GMOs are classified on the CCL under ECCN 1C353 and are not eligible for License Exception AGR or OFAC's expedited review procedures. In addition, genetically modified materials that are not within the definition of agricultural commodity (see question 2 above) are not eligible. Technology for production of genetically modified organisms is not eligible.

No. License Exception AGR applies only to exports and reexports of U.S. agricultural commodities to Cuba. The TSRA implementing rule does not affect U.S. export regulations on the export of technology, software, and equipment used to grow or manufacture agricultural commodities.

No. Exports of agricultural equipment, hand tools or machinery, are not eligible for AGR. Applications to export agricultural equipment are subject to a general policy of denial. However, donations of hand tools and equipment suitable for small farms, such as rotor tillers, may be eligible for export under License Exception GFT (see Section 740.12(b) of the EAR) or under an export license issued by BIS.

Yes. Tobacco and tobacco products, including cigarettes, are included in the definition of agricultural commodities.

Yes, exporters may use License Exception AGR to export donations of food and non-food agricultural commodities and commercial samples. For donations and samples, there is no contract requirement. The exporter must ship the goods within12 months of the date of BIS' notification to the exporter that no reviewing agency objected to the use of License Exception AGR. Exporters, however, may want to also consider using License Exception Gift Parcels and Humanitarian Donations (GFT) - if they meet the eligibility criteria for this license exception. License Exception GFT authorizes exports and reexports of food in gift parcels by an individual to another individual or eligible group without a license. In addition, GFT authorizes exports or reexports by certain U.S. charitable organizations (see Section 740.12(b)(3) of the EAR for requirements the organization must meet) of donations to meet basic human needs when those groups or organizations have experience in such charitable activities. See Section 740.12 of the Export Administration Regulations for information about License Exception GFT.

Yes, if an export meets all the criteria, an exporter may continue to use License Exception GFT to donate food and other eligible commodities (e.g., clothing, soap) to Cuba. Note that non-food agricultural commodities are not eligible for export in gift parcels (see Section 740.12(a)).

No. License Exception AGR applies only to eligible agricultural commodities to Cuba. Exporters must have authorization from OFAC prior to exporting U.S. agricultural or medical commodities to Iran or Sudan or reexporting such commodities by U.S. persons to Iran or Sudan.

The Trade Sanctions Reform and Export Enhancement Act did not clearly repeal or supersede the relevant Cuban Democracy Act (CDA) provisions on medical items so the latter's requirements still apply. The CDA requires a specific license for exports of medicines and medical items. In addition, there are certain criteria, such as on-site monitoring requirements, that have to be met.

License Exception AGR authorizes exports and reexports of agricultural commodities only. It does not affect or replace existing OFAC regulations relating to travel to Cuba. Anyone wishing to travel to Cuba must still comply with those regulations.

No. OFAC and BIS licensing requirements for vessels bound for Cuba or for items on those vessels remain in place. BIS requires a license for the export of a vessel and for ship stores to Cuba even if the vessel is carrying only authorized commodities to Cuba. There is no License Exception available for exports of vessels or ship stores to Cuba. Exporters will need a specific license to export a vessel to Cuba even if it is a "temporary sojourn" and the ship will not remain in Cuba. BIS' average processing time for applications for such license applications is about 35 days. Persons interested in shipping eligible commodities to Cuba should submit their license applications early.

OFAC regulations governing such activities are unchanged. Those regulations provide a waiver for vessels that are delivering commodities authorized by the U.S. Government or items exempt from regulation (See 31 C.F.R. Part 515.550). Interested parties should contact OFAC for further information on this subject.

No. Exporters must have a written contact before shipping under License Exception AGR unless the shipment is a donation or a commercial sample.

We will not register the notification in BIS' electronic data system until all the required information on the 748P form is complete. We will work with exporters, but if the applicant fails to provide the required information, we will return the notification. BIS and the other government agencies will not review incomplete applications.

No. The exporter would have to submit a new notification and obtain a new AGR authorization before shipping the additional amount. There is no penalty for exporting less than authorized, but an exporter may not exceed the authorized levels.

No. An exporters may not substitute items that were not included in the original notification and for which BIS confirmed that no reviewing agency objected to the use of License Exception AGR. Exporters can increase their flexibility by providing, on their notifications, general descriptions of the agricultural commodities they wish to export. For example, one might list "grains (e.g., rice, corn, wheat, or barley)" or "various vegetables (e.g., peas, green beans, tomatoes)".

No. BIS has no plans to create such a list. BIS maintains the notification requirement to allow review of the commodities and the end-user, and to collect the information that the Act requires that BIS report to Congress.

Yes. These exports are transaction specific and any change will require a new notification.

Not necessarily. Exporters may continue to ship the authorized agricultural commodities to the authorized end-user until they exhaust the authorized amount or 12 months have elapsed since the written contract was signed. The regulations do not impose a limit on the number shipments that may be made within these parameters.

Exporters may not ship to any recipients other than those listed in their AGR notification. Before shipping to another recipient, the exporter must submit a new notification and obtain a new confirmation from BIS that no reviewing agency objects to the use of License Exception AGR. However, exporters may ship to the approved recipient at any of the recipient organization's locations in Cuba, not just the location listed in the notification. License Exception AGR may not be used under any circumstances to ship to destinations outside Cuba.

Begin by filing a notification with BIS.

You must submit AGR Notification electronically using BIS' Simplified Network Application Process Redesign (SNAP-R). For instructions on obtaining a Company Identification Number (CIN) to access the online SNAP-R system, go to http://www.bis.doc.gov/snap/pinsnapr.htm.

SNAP-R is the acronym for BIS' Simplified Network Application Process Redesign. This allows exporters to electronically submit export/reexport license applications, notifications, and commodity classification requests. See the online information about SNAP-R.

Exporters may call BIS' "System for Tracking Export License Applications" (STELA) at 202-482-2752 and enter the Application Control Number (it begins with "Z" followed by six digits) for the status of their notifications. You must wait until either STELA reports that there has been no objection or until you receive written confirmation that no reviewing agency has objected.

STELA is the acronym for BIS' automated System for Tracking Export License Applications. It is an automated voice response system that can be accessed using a touch-tone phone.

To submit a notification, complete the AGR License Exception Notice Work Item form in SNAP-R. This is similar to the Work Item forms that exporters use to submit license applications and commodity classification requests. For submitting AGR notifications, you only need to complete certain parts of the form, as indicated below:

BLOCKS:

1. Contact person - someone who can provide information about the application
2. Telephone number
3. Fax number
4. Date of application
5. Type of application - check OTHER
6. Documents submitted - check LETTER OF EXPLANATION (optional)
7. through 13. - Not applicable (do not fill out)
15. Other party - (optional)
16. Purchaser - enter the name and address of the Cuban or other purchaser, if applicable (leave blank if the transaction involves a donation or sample)
17. Intermediate consignee - enter the name and address of the Cuban or other intermediate consignee, if applicable (this could be someone who will receive the goods in Cuba and deliver them to the ultimate consignee)
18. Ultimate consignee - enter the name and address of the person or organization in Cuba who will receive and use the goods
19. End-user - enter the name and address of the end-user(s), if applicable (complete this block if the ultimate consignee will not be the final end-user, for example, in a situation where the ultimate consignee acts as a distributor)
20. Original ultimate consignee - enter the name and address of the foreign entity (this block is to be used only for reexport transactions)
21. Specific end-use - enter a brief statement describing the end-use (e.g., wheat to make flour; food for a hotel restaurant)
22. (a) - ECCN - enter EAR99 (you must be certain of this; any other classification is not eligible for the provisions of License Exception AGR)
(b) - N/A
(c) - Model number, if applicable
(d) - enter the commodity classification number (CCATS) if previously classified by BIS
(e) - Quantity - how many units?
(f) - Units - enter applicable measure of quantity (lbs., tons, boxes, containers, etc.)
(g) - Unit price - enter fair market value, for sales and donations
(h) - Total price - multiply (e) times (f)
(i) - Manufacturer - if applicable
(j) - Technical description - enter a detailed description for all commodities intended for export/reexport; use a letter of explanation if necessary
23. Total value - enter value of all items on application
24. Additional information - enter here or in a cover letter any additional information that will help us understand the application
25. Signature/printed name/title

Exporters may need a commodity classification for exports of certain agricultural commodities to Cuba. BIS requires that a BIS commodity classification determination be submitted with notifications for fertilizers, western red cedar, and live horses. The U.S. Department of Agriculture web site includes a list of eligible agricultural commodities, most of which are eligible for License Exception AGR. BIS has determined that all items on that list except for western red cedar and live horses are EAR99 and do not require a prior commodity classification. Fertilizers, although not on that list, are considered agricultural commodities for purposes of License Exception AGR but do require a prior classification. The twelve-day notification period does not provide sufficient time to make commodity classification determinations as part of the notification process; therefore, exporters must request a commodity classification prior to submitting a notification for items that may be on the CCL.

The answer depends on the items that you propose to export:

Agricultural Commodities: You do NOT need a BIS commodity classification prior to applying for a license to export agricultural commodities on the Department of Agriculture's eligible commodities list [pdf] with the exception of western red cedar and live horses. BIS has reviewed the items on that list and classified them as EAR99, with the exception of western red cedar and live horses. You do need a commodity classification for fertilizers (which are considered agricultural commodities for purposes of License Exception AGR even though not on the eligible commodities list), western red cedar, and live horses. Note that bottled water, vitamins, minerals, food additives and dietary supplements also are not the Department of Agriculture list, but are considered agricultural commodities for the purposes of License Exception AGR.

Medicine: Exporters are not required to have commodity classifications for exports of medicines prior to submitting an application to OFAC. However, medicines on the Commerce Control List are not eligible for OFAC's expedited procedure. Anyone uncertain about the classification of the medicine must submit a commodity classification request to BIS before submitting an application to OFAC.

Medical Devices (e.g., supplies, instruments and equipment): You must have an official commodity classification for medical devices that are NOT included in the BIS' list of EAR99 medical supplies prior to submitting an application to OFAC.

To request a commodity classification in advance of submitting a TSRA notification to BIS for a proposed export to Cuba or submitting a license application to OFAC for a proposed export to Iran or Sudan, you must submit applications electronically using BIS' Simplified Network Application Process Redesign (SNAP-R). For instructions on obtaining a Company Identification Number (CIN) to access the online SNAP-R system, go to www.bis.doc.gov/snap/pinsnapr.htm.

Once you have access to the online form, you should follow the instructions below:

BLOCKS:

1. Contact person- someone who can provide information about the application
2. Telephone number
3. Fax number
4. Date of application
5. Type of application - check CLASSIFICATION REQUEST
6. Documents submitted - check TECH SPECS and LETTER OF EXPLANATION (optional)
7. and 8. - Not applicable (do not fill out)
9. Special purpose - Enter "TSRA"
10. through 13. - N/A
14. Applicant - enter the name and address of the requesting firm or individual
15. Other party - (optional)
16. Purchaser - N/A
17. Intermediate consignee - N/A
18. Ultimate consignee - enter the name and address, if you know it
19. End-user - enter the name and address of the end-user(s), if you know them
20. Original ultimate consignee - N/A
21. Specific end-use - enter a brief statement describing the end-use, if you know it
22. (a) - ECCN - enter your recommended classification number
(b) - N/A
(c) - Model number - if applicable
(d) - enter the commodity classification number (CCATS) if previously classified by BIS
(e) - Quantity - N/A
(f) - Units - N/A
(g) - Unit price - N/A
(h) - Total price - N/A
(i) - Manufacturer - if applicable
(j) - Technical description - enter a detailed description of all commodities to be classified; use a cover letter/letter of explanation if necessary
23. Total value - N/A
24. Additional information - for a classification request, use this space to explain why you believe the ECCN entered in block 22(a) is appropriate. This explanation must contain an analysis of the item in terms of the technical control parameters specified in the appropriate ECCN. If you have not identified a recommended classification in block 22 (a), please state the reason why you cannot determine the appropriate classification.
25. Signature/Printed name/Title