Title 15—Commerce and Foreign Trade--Volume 1
PART 740—LICENSE EXCEPTIONS
§ 740.17   Encryption commodities, software, and technology (ENC).
License Exception ENC authorizes export, reexport, and transfer (in-country) of systems, equipment, commodities, and components therefor that are classified under ECCN 5A002, 5B002, equivalent or related software and technology therefor classified under 5D002 or 5E002, and “cryptanalytic items” and digital forensics items (investigative tools) classified under ECCN 5A004, 5D002 or 5E002. This License Exception ENC does not authorize export or reexport to, transfer (in-country) in, or provision of any service in any country listed in Country Groups E:1 or E:2 in supplement no. 1 to part 740 of the EAR, or release of source code or technology to any national of a country listed in Country Groups E:1 or E:2. Reexports and transfers (in-country) under License Exception ENC are subject to the criteria set forth in paragraph (c) of this section. Paragraphs (b) and (d) of this section set forth information about classifications required by this section. Items described in paragraphs (b)(1) and (b)(3)(i), (b)(3)(ii) or (b)(3)(iv) of this section that meet the criteria set forth in Note 3 to Category 5—Part 2 of the Commerce Control List (the “mass market” note) are classified under ECCN 5A992 or 5D992 following self-classification or classification by BIS and are no longer subject to “EI” and “NS” controls. Paragraph (e) sets forth reporting required by this section. For items exported under paragraphs (b)(1), (b)(3)(i), (ii), or (iv) of this section and therefore excluded from paragraph (e) reporting requirements, exporters are reminded of the recordkeeping requirements in part 762 of the EAR and that they may be required to make such records available upon request. All classification requests, and reports submitted to BIS pursuant to this section for encryption items will be reviewed by the ENC Encryption Request Coordinator, Ft. Meade, MD.
(a) No classification request or reporting required. License Exception ENC authorizes the export, reexport, or transfer (in-country) to the end users and for the end uses set forth in paragraphs (a)(1) through (3) of this section, without submission of a classification request, self-classification report or sales report to BIS.
(1) Certain exports, reexports, transfers (in-country) to 'private sector end users' —(i) Internal “development” or “production” of new products. License Exception ENC authorizes certain exports, reexports, and transfers (in-country) of items described in paragraph (a) of this section for the internal “development” or “production” of new products by 'private sector end users,' wherever located, that are headquartered in a country listed in supplement no. 3 of this part.
(ii) Certain exports, reexports, transfers (in-country) to related parties, not involving “development” or “production” of new products. For internal end uses among 'private sector end users' other than the “development” or “production” of new products, License Exception ENC authorizes exports, reexports, and transfers (in-country) of non-U.S.-origin items, described in paragraph (a) of this section, to 'private sector end users' wherever located provided that:
(A) That item became subject to the EAR after it was produced;
(B) All parties to the transaction are subsidiaries of the same parent company headquartered in a country listed in supplement no. 3 of this part; and
(C) The characteristics or capabilities of the existing item are not enhanced, unless otherwise authorized by license or license exception.
A 'private sector end user' is either: An individual who is not acting on behalf of any foreign government; or a commercial firm (including its subsidiary and parent firms, and other subsidiaries of the same parent) that is not wholly owned by, otherwise controlled by or acting on behalf of, any foreign government.
(2) Exports, reexports, transfers (in-country) to “U.S. Subsidiaries.” License Exception ENC authorizes export, reexport, and transfer (in-country) of items described in paragraph (a) of this section to any “U.S. subsidiary,” wherever located. License Exception ENC also authorizes export, reexport, transfer (in-country) of such items by a U.S. company and its subsidiaries to foreign nationals who are employees, individual contractors or interns of a U.S. company or its subsidiaries if the items are for internal company use, including the “development” or “production” of new products, without prior review by the U.S. Government.
All items produced or developed with items exported, reexported, or transferred (in-country) under paragraphs (a)(1) or (2) of this section are subject to the EAR. These items may require the submission of a classification request before sale, reexport or transfer to non-“U.S. subsidiaries,” unless otherwise authorized by license or license exception.
(3) Reexports and transfers (in-country) of non-U.S. products developed with or incorporating U.S.-origin encryption source code, components, or toolkits. License Exception ENC authorizes the reexport and transfer (in-country) of non-U.S. products developed with or incorporating U.S.-origin encryption source code, components or toolkits that are subject to the EAR, provided that the U.S.-origin encryption items have previously been classified or reported and authorized by BIS and the cryptographic functionality has not been changed. Such products include non-U.S. developed products that are designed to operate with U.S. products through a cryptographic interface.
This exception from classification and reporting requirements does not apply to non-U.S.-origin products exported from the United States.
(b) Classification request or self-classification. For certain products described in paragraph (b)(1) of this section that are self-classified, a self-classification report in accordance with paragraph (e)(3) of this section is required from specified exporters, reexporters and transferors; for products described in paragraph (b)(1) of this section that are classified by BIS via a CCATS, a self-classification report is not required. For products described in paragraphs (b)(2) and (3) of this section, a thirty-day (30-day) classification request is required in accordance with paragraph (d) of this section. An exporter, reexporter, or transferor may rely on the producer's self-classification (for products described in (b)(1), only) or CCATS for an encryption item eligible for export or reexport under License Exception ENC under paragraph (b)(1), (2), or (3) of this section. Exporters are still required to comply with semi-annual sales reporting requirements under paragraph (e)(1) or (2) of this section, even if relying on a CCATS issued to a producer for specified encryption items described in paragraphs (b)(2) and (b)(3)(iii) of this section.
Mass market encryption software that would be considered publicly available under § 734.3(b)(3) of the EAR, and is authorized for export under this paragraph (b), remains subject to the EAR until all applicable classification or self-classification requirements set forth in this section are fulfilled.
(1) Immediate authorization. This paragraph (b)(1) authorizes the exports, reexports, and transfers (in-country) of the associated commodities self-classified under ECCNs 5A002.a, z.1, or 5B002, and equivalent or related software therefor classified under 5D002, except any such commodities, software, or components described in paragraph (b)(2) or (3) of this section, subject to submission of a self-classification report in accordance with § 740.17(e)(3) of the EAR. Items described in this paragraph (b)(1) that meet the criteria set forth in Note 3 to Category 5—Part 2 of the Commerce Control List (the “mass market” note) are classified as ECCN 5A992 or 5D992 following self-classification or classification by BIS and are removed from “EI” and “NS” controls.
(2) Classification request required. Thirty (30) days after the submission of a classification request with BIS in accordance with paragraph (d) of this section and subject to the reporting requirements in paragraph (e) of this section, this paragraph under License Exception ENC authorizes certain exports, reexports, and transfers (in-country) of the items specified in paragraph (b)(2) and submitted for classification.
Immediately after the classification request is submitted to BIS in accordance with paragraph (d) of this section and subject to the reporting requirements in paragraph (e) of this section, this paragraph also authorizes exports, reexports, and transfers (in-country) of:
1. All submitted encryption items described in this paragraph (b)(2), except “cryptanalytic items,” classified in ECCN 5A004.a, 5D002.a.3.a or c.3.a, or 5E002, to any end user located or headquartered in a country listed in supplement no. 3 to this part;
2. Encryption source code as described in paragraph (b)(2)(i)(B) to non-“government end users” in any country;
3. “Cryptanalytic items,” classified in ECCN 5A004.a, 5D002.a.3.a or c.3.a, or 5E002, to non-“government end users,” only, located or headquartered in a country listed in supplement no. 3 to this part; and
4. Items described in paragraphs (b)(2)(iii) and (b)(2)(iv)(A) of this section, to specified destinations and end users.
(i) Cryptographic commodities, software, and components. License Exception ENC authorizes exports, reexports, and transfers (in-country) of the items in paragraph (b)(2)(i)(A) of this section to “less sensitive government end users” and non- “government end users” located or headquartered in a country not listed in supplement no. 3 to this part, and the items in paragraphs (b)(2)(i)(B) through (H) to non “government end users” located or headquartered in a country not listed in supplement no. 3.
(A) 'Network Infrastructure.' 'Network infrastructure' commodities and software, and components therefor, meeting any of the following with key lengths exceeding 80-bits for symmetric algorithms:
( 1 ) WAN, MAN, VPN, backhaul and long-haul. Aggregate encrypted WAN, MAN, VPN, backhaul or long-haul throughput (including communications through wireless network elements such as gateways, mobile switches, and controllers) equal to or greater than 250 Mbps;
( 2 ) [Reserved]
( 3 ) Satellite infrastructure. Transmission over satellite at data rates exceeding 10 Mbps;
( 4 ) Media gateways and other unified communications (UC) infrastructure, including Voice-over-Internet Protocol (VoIP) services. Media (voice/video/data) encryption or encrypted signaling to more than 2,500 endpoints, including centralized key management therefor; or
( 5 ) Terrestrial wireless infrastructure. Air interface coverage ( e.g., through base stations, access points to mesh networks, and bridges) exceeding 1,000 meters, where any of the following applies:
( i ) Maximum transmission data rates exceeding 10 Mbps (at operating ranges beyond 1,000 meters); or
( ii ) Maximum number of concurrent full-duplex voice channels exceeding 30;

1. The License Exception ENC eligibility restrictions of paragraphs (b)(2)(i)(A)(3) (satellite infrastructure) and (b)(2)(i)(A)(5) (terrestrial wireless infrastructure) do not apply to satellite terminals or modems meeting all of the following:
a. The encryption of data over satellite is exclusively from the user terminal to the gateway earth station, and limited to the air interface; and
b. The items meet the requirements of the Cryptography Note (Note 3) in Category 5—Part 2 of the Commerce Control List.
2. 'Network infrastructure' (as applied to encryption items). A 'network infrastructure' commodity or software is any “end item,” commodity or “software” for providing one or more of the following types of communications:”
(a) Wide Area Network (WAN);
(b) Metropolitan Area Network (MAN);
(c) Virtual Private Network (VPN);
(d) Satellite;
(e) Digital packet telephony/media (voice, video, data) over Internet protocol;
(f) Cellular; or
(g) Trunked.
'Network infrastructure' end items are typically operated by, or for, one or more of the following types of end users:
(1) Medium- or large- sized businesses or enterprises;
(2) Governments;
(3) Telecommunications service providers; or
(4) Internet service providers.
Commodities, software, and components for the “cryptographic activation” of a 'network infrastructure' item are also considered 'network infrastructure' items.
(B) Certain “encryption source code.” “Encryption source code” that is not publicly available as that term is used in § 742.15(b) of the EAR;
(C) Customized items. Encryption software, commodities and components therefor, where any of the following applies:
( 1 ) Customized for government end users or end uses. The item has been designed, modified, adapted, or customized for “government end user(s);” or
( 2 ) Custom or changeable cryptography. The cryptographic functionality of the item has been designed or modified to customer specification or can be easily changed by the user ;
(D) Quantum cryptography. ECCN 5A002.c, z.3, or 5D002 “quantum cryptography” commodities or software;
(E) [Reserved]
(F) Network penetration tools. Encryption commodities and software that provide penetration capabilities that are capable of attacking, denying, disrupting or otherwise impairing the use of cyber infrastructure or networks;
(G) Public safety/first responder radio (private mobile radio (PMR)). Public safety/first responder radio ( e.g., implementing Terrestrial Trunked Radio (TETRA) and/or Association of Public-Safety Communications Officials International (APCO) Project 25 (P25) standards);
(H) Specified cryptographic ultra-wideband and “spread spectrum” items. Encryption commodities and components therefor, classified under ECCNs 5A002.d or .e, and equivalent or related software therefor classified under ECCN 5D002.
(ii) Cryptanalytic commodities and software. “ Cryptanalytic items” classified in ECCN 5A004.a, 5D002.a.3.a, or 5D002.c.3.a, to non- “government end users” located or headquartered in countries not listed in supplement no. 3 to this part.
(iii) “Open cryptographic interface” items. Items that provide an “open cryptographic interface,” to any end user located or headquartered in a country listed in supplement no. 3 to this part.
(iv) Specific encryption technology. Specific 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” classified in ECCN 5A004.a, 5D002.a.3.a or 5D002.c.3.a, “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, E:1, or E:2 of supplement no. 1 to part 740 of the EAR.
Commodities, components, and software classified under ECCNs 5A002.b, z.2, or 5D002.b or z.5, for the “cryptographic activation” of commodities or software specified by paragraph (b)(2) of this section are also controlled under paragraph (b)(2) of this section.
(3) Classification request required for specified commodities, software, and components. Thirty (30) days after a classification request is submitted to BIS in accordance with paragraph (d) of this section and subject to the reporting requirements in paragraph (e) of this section, this paragraph authorizes exports, reexports, and transfers (in-country) of the items submitted for classification, as further described in this paragraph (b)(3), to any end user, provided the item does not perform the functions, or otherwise meet the specifications, of any item described in paragraph (b)(2) of this section. Items described in paragraph (b)(3)(ii) or (iv) of this section that meet the criteria set forth in Note 3 to Category 5—Part 2 of the CCL (the “mass market” note) are classified under ECCN 5A992 or 5D992 following classification by BIS.
Immediately after the classification request is submitted to BIS in accordance with paragraph (d) of this section and subject to the reporting requirements in paragraph (e) of this section, this paragraph also authorizes exports, reexports, transfers (in-country) of the items described in this paragraph (b)(3) to any end user located or headquartered in a country listed in supplement no. 3 to this part.
(i) Non-“mass market” “components,” toolsets, and toolkits. Specified components classified under ECCN 5A002.a, or z.1, and equivalent or related software classified under ECCN 5D002 that do not meet the criteria set forth in Note 3 to Category 5—Part 2 of the CCL (the “mass market” note) and are not described by paragraph (b)(2) or (b)(3)(ii) of this section, as follows:
(A) Chips, chipsets, electronic assemblies and field programmable logic devices;
(B) Cryptographic libraries, modules, development kits and toolkits, including for operating systems and cryptographic service providers (CSPs).
(ii) “Non-standard cryptography” (by items not otherwise described in paragraph (b)(2) of this section.) Encryption commodities, software and components not described by paragraph (b)(2) of this section, that provide or perform “non-standard cryptography” as defined in part 772 of the EAR.
(iii) Advanced network vulnerability analysis and digital forensics. Encryption commodities and software not described by paragraph (b)(2) of this section, that provide or perform vulnerability analysis, network forensics, or computer forensics functions characterized by any of the following:
(A) Automated network vulnerability analysis and response. Automated network analysis, visualization, or packet inspection for profiling network flow, network user or client behavior, or network structure/topology and adapting in real-time to the operating environment; or
(B) Digital forensics and investigative tools. Items specified in ECCNs: 5A004.b, z.3; 5D002.a.3.b or z.4; or 5D002.c.3.b or z.9 in supplement no. 1 to part 774 of the EAR.
(iv) “ Cryptographic activation” commodities, components, and software. Commodities, components, and software classified under ECCNs 5A002.b, z.2, or 5D002.b or z.5, where the product or cryptographic functionality is not otherwise described in paragraph (b)(2) or (b)(3)(i) of this section.
(c) Reexport and transfer (in-country). Distributors, resellers or other entities who are not original manufacturers of encryption commodities and software are permitted to use License Exception ENC only in instances where the reexport or transfer (in-country) meets the applicable terms and conditions of this section. Transfers of encryption items listed in paragraph (b)(2) of this section to “government end users,” or for government end uses, within the same country are prohibited, unless otherwise authorized by license or license exception.
(d) Classification request procedures —(1) Submission requirements and instructions. To submit a classification request to BIS, you must submit an application to BIS in accordance with the procedures described in §§ 748.1 and 748.3 of the EAR and the instructions in paragraph (r) of supplement no. 2 to part 748 “Unique Application and Submission Requirements,” along with other required information as follows:
(i) [Reserved]
(ii) Technical information submission requirements. For all submissions of encryption classification requests for items described under paragraph (b)(2) or (b)(3) of this section, you must submit the applicable information described in paragraphs (a) through (d) of supplement no. 6 to part 742 of the EAR (Technical Questionnaire for Encryption Items). For items eligible for self-classification that are submitted to BIS for classification you may be required to provide BIS this supplement no. 6 to part 742 information on an as-needed basis, upon request by BIS.
(iii) Changes in encryption functionality following a previous classification. A new product encryption classification request (under paragraphs (b)(2) or (b)(3) of this section) is required if a change is made to the cryptographic functionality ( e.g., algorithms) or other technical characteristics affecting License Exception ENC eligibility ( e.g., encrypted throughput) of the originally classified product. However, a new product classification request is not required when a change involves: the subsequent bundling, patches, upgrades or releases of a product; name changes; or changes to a previously reviewed encryption product where the change is limited to updates of encryption software components where the product is otherwise unchanged.
(2) Action by BIS. (i) [Reserved]
(ii) For items requiring classification by BIS under paragraphs (b)(2) and (3) of this section. (A) For classifications that require a thirty (30-day) waiting period, if BIS has not, within thirty days (30 days) from registration in SNAP-R of your complete classification request, informed you that your item is not authorized for License Exception ENC, you may export, reexport, or transfer (in-country) under the applicable provisions of License Exception ENC.
(B) Upon completion of its classification, BIS will issue a Commodity Classification Automated Tracking System (CCATS) to you.
(C) Hold Without Action (HWA) for classification requests. BIS may hold your classification request without action if necessary to obtain additional information or for any other reason necessary to ensure an accurate classification. Time on such “hold without action” status shall not be counted towards fulfilling the thirty-day (30-day) processing period specified in this paragraph.
(iii) BIS may require you to supply additional relevant technical information about your encryption item(s) or information that pertains to their eligibility for License Exception ENC at any time, before or after the expiration of the thirty-day (30-day) processing period specified in this paragraph and in paragraphs (b)(2) and (3) of this section. If you do not supply such information within 14 days after receiving a request for it from BIS, BIS may return your classification request(s) without action or otherwise suspend or revoke your eligibility to use License Exception ENC for that item(s). At your request, BIS may grant you up to an additional 14 days to provide the requested information. Any request for such an additional number of days must be made prior to the date by which the information was otherwise due to be provided to BIS, and may be approved if BIS concludes that additional time is necessary.
(e) Reporting requirements —(1) Semiannual reporting requirement. Semiannual reporting is required for exports to all destinations other than Australia, Canada, or the United Kingdom, and for reexports from Australia, Canada, or the United Kingdom for items described under paragraphs (b)(2) and (b)(3)(iii) of this section. Certain encryption items and transactions are excluded from this reporting requirement (see paragraph (e)(1)(iii) of this section). For information about what must be included in the report and submission requirements, see paragraphs (e)(1)(i) and (ii) of this section, respectively.
(i) Information required. Exporters must include, for each item, the Commodity Classification Automated Tracking System (CCATS) number and the name of the item(s) exported (or reexported from Australia, Canada, or the United Kingdom), and the following information in their reports:
(A) Distributors or resellers. For items exported (or reexported from Australia, Canada, or the United Kingdom) to a distributor or other reseller, including subsidiaries of U.S. firms, the name and address of the distributor or reseller, the item and the quantity exported or reexported and, if collected by the exporter as part of the distribution process, the end user's name and address;
(B) Direct sales. For items exported (or reexported from Australia, Canada, or the United Kingdom) through direct sale, the name and address of the recipient, the item, and the quantity exported; or
(C) Foreign manufacturers and products that use encryption items. For exports ( i.e., from the United States) or direct transfers ( e.g., by a “U.S. subsidiary” located outside the United States) of encryption components, source code, general purpose toolkits, equipment controlled under ECCN 5B002, technology, or items that provide an “open cryptographic interface,” to a foreign developer or manufacturer headquartered in a country not listed in supplement no. 3 to this part when intended for use in foreign products developed for commercial sale, the names and addresses of the manufacturers using these encryption items and, if known, when the product is made available for commercial sale, a non-proprietary technical description of the foreign products for which these encryption items are being used ( e.g., brochures, other documentation, descriptions or other identifiers of the final foreign product; the algorithm and key lengths used; general programming interfaces to the product, if known; any standards or protocols that the foreign product adheres to; and source code, if available).
(ii) Submission requirements. For exports occurring between January 1 and June 30, a report is due no later than August 1 of that year. For exports occurring between July 1 and December 31, a report is due no later than February 1 the following year. These reports must be provided in electronic form. Recommended file formats for electronic submission include spreadsheets, tabular text or structured text. Exporters may request other reporting arrangements with BIS to better reflect their business models. Reports may be sent electronically to BIS at crypt@bis.doc.gov and to the ENC Encryption Request Coordinator at enc@nsa.gov, or disks and CDs containing the reports may be sent to the following addresses:
(A) Department of Commerce, Bureau of Industry and Security, Office of National Security and Technology Transfer Controls, 14th Street and Pennsylvania Ave. NW., Room 2705, Washington, DC 20230, Attn: Encryption Reports, and
(B) Attn: ENC Encryption Request Coordinator, 9800 Savage Road, Suite 6940, Ft. Meade, MD 20755-6000.
(iii) Exclusions from reporting requirement. Reporting is not required for the following items and transactions:
(A) [Reserved]
(B) Encryption commodities or software with a symmetric key length not exceeding 64 bits;
(C) Encryption items exported (or reexported from Australia, Canada, or the United Kingdom) via free and anonymous download;
(D) Encryption items from or to a U.S. bank, financial institution or its subsidiaries, affiliates, customers or contractors for banking or financial operations;
(E) [Reserved]
(F) Foreign products developed by bundling or compiling of source code.
(2) Key length increases. Reporting is required for commodities and software that, after having been classified and authorized for License Exception ENC in accordance with paragraphs (b)(2) or (3) of this section, are modified only to upgrade the key length used for confidentiality or key exchange algorithms. Such items may be exported, reexported or transferred (in-country) under the previously authorized provision of License Exception ENC without a classification resubmission.
(i) Information required. (A) A certification that no change to the encryption functionality has been made other than to upgrade the key length for confidentiality or key exchange algorithms.
(B) The original Commodity Classification Automated Tracking System (CCATS) authorization number issued by BIS and the date of issuance.
(C) The new key length.
(ii) Submission requirements. (A) The report must be received by BIS and the ENC Encryption Request Coordinator before the export, reexport or transfer (in-country) of the upgraded product; and
(B) The report must be emailed to crypt@bis.doc.gov and enc@nsa.gov.
(3) Self-classification reporting for certain encryption commodities, software, and components. This paragraph (e)(3) sets forth requirements for self-classification reporting to BIS and the ENC Encryption Request Coordinator (Ft. Meade, MD) of certain encryption commodities, software, and components exported or reexported meeting the criteria specified in paragraph (b)(1) of this section. Specifically, this reporting requirement applies to “mass market” encryption components and 'executable software' that meet the criteria of the Cryptography Note—Note 3 to Category 5—Part 2 of the CCL (“mass market” note) and are classified under ECCN 5A992 or 5D992 following self-classification, as well as to non-“mass market” encryption commodities and software that remain classified in ECCN 5A002, 5B002, or 5D002 following self-classification, provided these items are not further described by paragraph (b)(2) or (3) of this section.
For the purposes of this paragraph (e)(3), 'executable software' means “software” in executable form, from an existing hardware component excluded from ECCN 5A002 by the Cryptography Note. 'Executable software' does not include complete binary images of the “software” running on an end item.
(i) When to report. Your 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.
(ii) How to report. Encryption self-classification reports must be sent to BIS and the ENC Encryption Request Coordinator via email or regular mail. In your submission, specify the timeframe that your report spans and identify points of contact to whom questions or other inquiries pertaining to the report should be directed. Follow these instructions for your submissions:
(A) Submissions via email. Submit your encryption self-classification report electronically to BIS at crypt-supp8@bis.doc.gov and to the ENC Encryption Request Coordinator at enc@nsa.gov, as an attachment to an email. Identify your email with subject “self-classification report.”
(B) Submissions on disks and CDs. The self-classification report may be sent to the following addresses, in lieu of email:
( 1 ) Department of Commerce, Bureau of Industry and Security, Office of National Security and Technology Transfer Controls, 14th Street and Pennsylvania Ave. NW., Room 2099B, Washington, DC 20230, Attn: Encryption Reports, and
( 2 ) Attn: ENC Encryption Request Coordinator, 9800 Savage Road, Suite 6940, Ft. Meade, MD 20755-6000.
(iii) Information to report. Your encryption self-classification report must include the information described in paragraph (a) of supplement no. 8 to part 742 for each applicable encryption commodity, software and component made eligible for export or reexport under § 740.17(b)(1) of the EAR. Each product must be included in a report only one time. However, if no new products are made eligible for export or reexport during a calendar year, you must send an email to the addresses listed in paragraph (e)(3)(ii)(A) of this section stating that nothing has changed since the previous report.
(iv) File format requirements. The information described in paragraph (a) of supplement no. 8 to part 742 must be provided to BIS and the ENC Encryption Request Coordinator in tabular or spreadsheet form, as an electronic file in comma separated values format (.csv) adhering to the specifications set forth in paragraph (b) of supplement no. 8 to part 742.
(f) End-use restrictions. Notwithstanding the other provisions and authorizations of this section, License Exception ENC is not authorized for any of the following items if the exporter, reexporter, or transferor “knows” or has “reason to know” at the time of export, reexport, or transfer (in-country), including deemed exports and reexports, that the item will be used to affect the confidentiality, integrity, or availability of information or information systems, without authorization by the owner, operator, or administrator of the information system (including the information and processes within such systems):
(1) “Cryptanalytic items,” classified in ECCN 5A004.a, z.1 or z.2, 5D002.a.3.a, c.3.a, z.3, or z.8, or 5E002;
(2) Network penetration tools described in paragraph (b)(2)(i)(F) of this section, and ECCN 5E002 “technology” therefor; or
(3) Automated network vulnerability analysis and response tools described in paragraph (b)(3)(iii)(A) of this section, and ECCN 5E002 “technology” therefor.
See also § 740.22(c)(4).
§ 740.18   Agricultural commodities (AGR).
(a) Eligibility requirements. License Exception AGR permits the export of agricultural commodities to Cuba, as well as the reexport of U.S. origin agricultural commodities to Cuba, provided your transaction meets all of the following criteria:
(1) The commodity meets the definition of “agricultural commodities” in part 772 of the EAR;
(2) The commodity is EAR99. You must have an official commodity classification of EAR99 from BIS for fertilizers, western red cedar and live horses before you submit a notification under this license exception. See § 748.3 of the EAR for information on how to submit a commodity classification request;
(3) The export or reexport is made pursuant to a written contract, except for donations and commercial samples which are not subject to this contract requirement;
(4) The export or reexport is made within 12 months of the signing of the contract or within 12 months of notification that no objections were raised (if no contract is required). In the case of multiple partial shipments, all such shipments must be made within the 12 months of the signing of the contract or within 12 months of notification that no objections were raised (if no contract is required); and
(5) You notify BIS prior to exporting or reexporting according to the procedures set forth in paragraph (c) of this section. If you intend to engage in multiple shipments during the one-year period after the signing of the contract, you need only notify BIS prior to the first shipment.
(b) Restrictions. (1) No export or reexport to any individual or entity designated as a Specially Designated Terrorist or Foreign Terrorist Organization may be made under License Exception AGR (see part 744 of the EAR).
(2) No export or reexport to or for use in biological, chemical, nuclear warfare or missile proliferation activities may be made under License Exception AGR (see part 744 of the EAR).
(3) No U.S.-owned or controlled foreign firm may export from abroad to Cuba a foreign produced agricultural commodity containing more than 25% U.S.-origin content. Such U.S.-owned or controlled foreign firms require a specific license from BIS as well as the Department of the Treasury's Office of Foreign Assets Control (OFAC). Transactions not subject to the EAR (under 25% U.S.-origin content) require a license from OFAC.
(c) Prior notification —(1) General requirement. You must notify BIS prior to any export or reexport (or prior to the first of multiple shipments) under License Exception AGR.
(2) Procedures. You must provide prior notification of exports and reexports under License Exception AGR by submitting a completed application in accordance with § 748.1 of the EAR. The following blocks must be completed, as appropriate: Blocks 1, 2, 3, 4, 5 (by marking box 5 “Other”), 14, 16, 17, 18, 19, 21, 22 (a), (e), (f), (g), (h), (i), (j), 23, and 25 according to the instructions described in supplement no. 1 to part 748 of the EAR. If your commodity is fertilizer, western red cedar or live horses, you must confirm that BIS has previously classified your commodity as EAR99 by placing the Commodity Classification Automatic Tracking System (CCATS) number in Block 22(d). BIS will not initiate the registration of an AGR notification unless the application is complete.
(3) Action by BIS. Within two business days of the registration of the AGR notification, BIS will refer the notification for interagency review, or if necessary return the notification without action (e.g., if the information provided is incomplete). Registration is defined as the point at which the notification is entered into BIS's electronic system.
(4) Review by other departments or agencies. The Departments of Defense, State, and other agencies, as appropriate, may review the AGR notification. BIS must receive department or agency objections within nine business days of the referral. Unlike the provisions described in § 750.4(b) of the EAR, there are no provisions for stopping the processing time of the AGR notification. If, within 11 business days after the date of registration, any reviewing agency provides a written objection that the recipient may promote international terrorism or the transaction raises nonproliferation concerns, you may not use License Exception AGR. In such cases, BIS will notify you that a license is required for the export or reexport. BIS will then process the AGR notification as a license application in accordance with the provisions described in § 750.4 of the EAR, and the licensing policies set forth in the EAR. At this time, BIS may request additional information. When BIS confirms that no agency has raised an objection within eleven business days (as described in paragraph (c)(5) of this section), you may proceed with the transaction provided that you satisfy all other requirements of License Exception AGR, including the requirement to have a written contract prior to any shipment (unless a donation or commercial sample). (Note that the fact that you have been advised that no agency has objected to the transaction does not exempt you from other licensing requirements under the EAR, such as those based on knowledge of a prohibited end-use or end-user as referenced in general prohibition five (part 736 of the EAR) and set forth in part 744 of the EAR.)
(5) Status of pending AGR notification requests. You must contact BIS's System for Tracking Export License Applications (STELA) ( https://snapr.bis.doc.gov/stela ) for status of your pending AGR notification or verify the status in BIS's Simplified Network Applications Processing Redesign (SNAP-R) System. STELA will provide the date of registration of the AGR notification. If no department or agency objection is raised within 11 business days, STELA will, on the twelfth business day following the date of registration, provide you with confirmation of that fact. You may not proceed with your shipment unless you confirm with either STELA or SNAP-R that no objection has been raised. If an objection is raised, STELA and SNAP-R will indicate that a license is required. The AGR notification will then be processed as a license application. In addition, BIS may provide notice of an objection by telephone, fax, courier service, or other means.
(d) Donations. (1) Donations of agricultural commodities are eligible for export and reexport to Cuba under License Exception AGR, provided the transaction meets the requirements and procedures of this license exception (except the written contract requirement).
(2) Donations of food items to non-governmental organizations (NGOs) and individuals in Cuba may also be eligible for License Exception GFT. See § 740.12 for eligibility requirements of gift parcels and humanitarian donations under License Exception GFT.
§ 740.19   Consumer Communications Devices (CCD).
(a) Authorizations. This section authorizes the export, reexport, or transfer (in-country) of commodities and software to Cuba, Russia, and Belarus subject to the requirements stated in this section. This section does not authorize U.S. owned or controlled entities in third countries to engage in reexports of foreign produced commodities to Cuba for which no license would be issued by the Department of the Treasury pursuant to 31 CFR 515.559.
(b) Eligible commodities and software. Commodities and software in paragraphs (b)(1) through (8) of this section are eligible for export, reexport, or transfer (in-country) under this section to and within Cuba, Russia, and Belarus. Commodities and software in paragraphs (b)(9) through (18) of this section are eligible for export, reexport, or transfer (in-country) to Cuba only.
(1) Consumer computers, tablets, and peripherals including microphones, speakers, and headphones designated EAR99 or classified under Export Control Classification Numbers (ECCN) 5A992.c or 4A994.b;
(2) Mobile phones, including cellular and satellite telephones, personal digital assistants, and subscriber information module (SIM) cards, accessories for such devices and similar devices classified under ECCNs 5A992.c or 5A991 or designated EAR99; drivers and connectivity software for such hardware designated EAR99 or classified under ECCN 5D992.c;
(3) Monitors classified under ECCN 5A992.c or designated EAR99;
(4) Printers, including multifunctional printers, classified under ECCN 5A992.c or designated EAR99;
(5) Keyboards, mice, and similar devices designated EAR99;
(6) Batteries, chargers, carrying cases, and accessories for the equipment described in paragraphs (b)(1) through (5) of this section that are designated EAR99;
(7) Consumer “information security” equipment, “software” (except “encryption source code”), such as firewalls, virtual private network clients, antivirus, user authentication, password managers, identification verification, and peripherals classified under ECCNs 5A992.c or 5D992.c or designated EAR99;
(8) Consumer “software” (except “encryption source code”) classified under ECCNs 4D994, 5D991, or 5D992.c or designated EAR99 to be used for equipment described in paragraphs (b)(1) through (16) of this section;
(9) Consumer disk drives and solid-state storage equipment classified under ECCN 5A992 or designated EAR99;
(10) Graphics accelerators and graphics coprocessors designated EAR99;
(11) Modems, network interface cards, routers, switches, and WiFi access points, designated EAR99 or classified under ECCNs 5A992.c or 5A991; drivers, communications, and connectivity software for such hardware designated EAR99 or classified under ECCN 5D992.c;
(12) Network access controllers and communications channel controllers classified under ECCN 5A991.b.4, 5A992.c, or designated EAR99;
(13) Memory devices classified under ECCN 5A992.c or designated EAR99;
(14) Digital cameras (including webcams) and memory cards classified under ECCN 5A992 or designated EAR99;
(15) Television and radio receivers, set top boxes, video decoders, and antennas, classified under ECCNs 5A991, 5A992, or designated EAR99;
(16) Recording devices classified under ECCN 5A992 or designated EAR99;
(17) Commodities described under 3A991.p or 4A994.l; and
(18) Batteries, chargers, carrying cases, and accessories for the equipment described in paragraphs (b)(8) through (17) of this section that are designated EAR99.
In this paragraph, the term “consumer” refers to items that are:
1. Generally available to the public by being sold, without restriction, from stock at retail selling points by means of any of the following:
a. Over-the-counter transactions;
b. Mail order transactions;
c. Electronic transactions; or
d. Telephone call transactions; and
2. Designed for installation by the user without further substantial support by the supplier.
(c) Eligible and ineligible end users —(1) Organizations. (i) The license exception in this section may be used to export, reexport, or transfer (in-country) eligible commodities and software to and for the use of independent non-governmental organizations in Cuba, Russia, or Belarus.
(ii) The Cuban Government, the Cuban Communist Party, the Russian Government, the Belarusian Government, and organizations administered or controlled by the Cuban Government, the Cuban Communist Party, the Russian Government, or the Belarusian Government are not eligible end users.
(iii) [Reserved]
(2) Individuals. The license exception in this section may be used to export, reexport, or transfer (in-country) eligible commodities and software to and for the use of individuals other than the following:
(i) Ineligible Cuban Government officials. Ministers and Vice-Ministers; members of the Council of State; members of the Council of Ministers; members and employees of the National Assembly of People's Power; members of any provincial assembly; local sector chiefs of the Committees for the Defense of the Revolution; Director Generals and sub-Director Generals and higher of all Cuban ministries and state agencies; employees of the Ministry of the Interior (MININT); employees of the Ministry of Defense (MINFAR); secretaries and first secretaries of the Confederation of Labor of Cuba (CTC) and its component unions; chief editors, editors and deputy editors of Cuban state-run media organizations and programs, including newspapers, television, and radio; or members and employees of the Supreme Court (Tribuno Supremo Nacional).
(ii) Ineligible Cuban Communist Party officials. Members of the Politburo.
(iii) Ineligible Russian Government officials. The President, Prime Minister, and Deputy Prime Ministers; Federal Ministers; Chairman, Deputy Chairman, and Secretary of the Security Council; members and employees of the Federal Assembly (the State Duma and the Federation Council); members and employees of the Supreme Court and the Constitutional Court; Chief and all employees of the General Staff of the armed forces; employees of the Ministry of Defence; Director and employees of the Federal Security Service, Director and employees of the Foreign Intelligence Service; employees of the Ministry of the Interior; employees of state committees, chief editors, editors and deputy editors of Russian state-run media organizations and programs, including newspapers, television, and radio; offices, services, agencies and other entities organized under or reporting to the federal government.
(iv) Ineligible Belarusian Government officials. Alyaksandr Lukashenko; Prime Minister and Deputy Prime Ministers; members of the Council of Ministers; members of the Security Council of Belarus; members and employees of the National Assembly of the Republic of Belarus; members and employees of the Supreme Court and the Constitutional Court; Chief and all employees of the General Staff of the armed forces; employees of the Ministry of Defence, including the National Armed Services (Army and Air Force), the National Guard and National Police; and employees of Government Intelligence or Reconnaissance Organizations of the Republic of Belarus, including the Director and employees of the State Security Committee (BKGB); employees of the Ministry of Internal Affairs; employees of state committees; employees of the State Authority for the Military Industry; employees of the Border Control Committee of the Republic of Belarus; chief editors, editors and deputy editors of Belarusian state-run media organizations and programs, including newspapers, television, and radio; offices, services, agencies and other entities organized under or reporting to the federal government.
§ 740.20   License Exception Strategic Trade Authorization (STA).
(a) Introduction. This section authorizes exports, reexports, and transfers (in-country), including releases within a single country of software source code and technology to foreign nationals, in lieu of a license that would otherwise be required pursuant to part 742 of the EAR.
License Exception STA authorizes transfers (in-country) but is only needed to authorize a transfer (in-country) when an EAR authorization is required. If a transfer (in-country) is not being made under STA, the requirements specified in this section do not apply (see Note 1 to paragraphs (b)(2) and (b)(3) of this section for requirements specific to staying within the scope of the original License Exception STA authorization and the concept of 'completing the chain' for purposes of “600 series” items originally authorized under License Exception STA).
(b) Requirements and Limitations —(1) Requirements for Using License Exception STA. (i) All of the reasons for control that impose a part 742 license requirement on the export, reexport or in country transfer must be addressed in at least one authorizing paragraph of this section.
(ii) The party using License Exception STA must comply with all of the requirements in paragraph (d) of this section.
(2) Limitations on Use of License Exception STA. The prohibitions and limits of this paragraph (b)(2) apply notwithstanding the authorizations in paragraph (c) of this section.
(i) License Exception STA may not be used in lieu of any license requirement imposed by “Part 744—Control Policy: End User and End Use Based” or by “Part 746—Embargoes and Other Special Controls” of the EAR.
(ii) License Exception STA may not be used for:
(A) Any item controlled in ECCNs 0A501.a, .b, .c, .d, or .e; 0A506; 0A507; 0A509; 0A981; 0A982; 0A983; 0A503; 0E504; 0E982; or
(B) Shotguns with barrel length less than 18 inches controlled in 0A502 or 0A508.
(iii) License Exception STA may not be used for any item that is controlled for reason of encryption items (EI), short supply (SS), surreptitious listening (SL), missile technology (MT) or chemical weapons (CW).
(iv) License Exception STA may not be used for any item identified on the CCL as being subject to the exclusive export control jurisdiction of another agency, such as the Department of State, the Department of Energy, or the Nuclear Regulatory Commission.
(v) License Exception STA may not be used for any item controlled by ECCN 1C351.a, .b, .c, .d.14, .d.15 or .e, ECCNs 1C353, 1C354, 1E001 ( i.e., for technology, as specified in ECCN 1E001, for items controlled by ECCN 1C351.a, .b, .c, .d.14, .d.15 or .e or ECCNs 1C353 or 1C354) or ECCN 1E351.
(vi) [Reserved]
(vii) Commerce Control List Category 7 limitation on use of License Exception STA. License Exception STA may not be used for 7E004 “technology,” except for “technology” controlled under 7E004.a.7.
(viii) Commerce Control List Category 9 limitations on use of License Exception STA.
(A) License Exception STA may not be used for 9B001 when destined to a country in Country Group A:6.
(B) License Exception STA may not be used for 9D001 or 9D002 “software” that is “specially designed” or modified for the “development” or “production” of:
(1) Components of engines controlled by ECCN 9A001 if such components incorporate any of the “technologies” controlled by 9E003.a.1, 9E003.a.2, 9E003.a.3, 9E003.a.4, 9E003.a.5, 9E003.c, 9E003.h, or 9E003.i (other than technology for fan or power turbines); or
(2) Equipment controlled by 9B001.
(C) License Exception STA may not be used for 9D001 “software” that is “specially designed” or modified for the “development” of “technology” controlled by 9E003.a.1, 9E003.a.2, 9E003.a.3, 9E003.a.4, 9E003.a.5, 9E003.c, 9E003.h, or 9E003.i (other than technology for fan or power turbines).
(D) License Exception STA may not be used for 9D004.f or 9D004.g “software”.
(E) License Exception STA may not be used for “technology” in 9E003.a.1, 9E003.a.2, 9E003.a.3, 9E003.a.4, 9E003.a.5, 9E003.c, 9E003.h, or 9E003.i (other than technology for fan or power turbines).
(ix) [Reserved]
(x) License Exception STA may not be used for items controlled by ECCN 6A002; 6A293; 6D002 (software “specially designed” for the “use” of commodities controlled under 6A002.b); 6D003.c; 6D991 (software “specially designed” for the “development,” “production,” or “use” of commodities controlled under 6A002 or 6A003); 6E001 (“technology” for the “development” of commodities controlled under ECCN 6A002 or 6A003); or 6E002 “technology” (for the “production” of commodities controlled under ECCN 6A002 or 6A003).
(xi) License Exception STA may not be used for any commodity controlled by ECCN 3A001.b.2 or b.3 (except those that are being exported or reexported for use in civil telecommunications applications), or any “technology” controlled by 3E001 for the “production” or “development” of commodities controlled by 3A001.b.2 or b.3.
(3) Limitations on the Use of STA that are Specific to “600 series” Items. (i) License Exception STA may not be used for any “600 series” items identified in the relevant ECCN as not being eligible for STA.
(ii) License Exception STA may be used to export, reexport, and transfer (in-country) “600 series” items to persons, whether non-governmental or governmental, if they are in and, for natural persons, nationals of a country listed in Country Group A:5 (See supplement no. 1 to part 740 of the EAR) or the United States and if:
(A) The ultimate end user for such items is the armed forces, police, paramilitary, law enforcement, customs, correctional, fire, or a search and rescue agency of a government of one of the countries listed in Country Group A:5, or the United States Government;
(B) For the “development,” “production,” operation, installation, maintenance, repair, overhaul, or refurbishing of an item in one of the countries listed in Country Group A:5 or the United States that will be for one, or more, of the following purposes:
( 1 ) Ultimately to be used by any such government agencies in one of the countries listed in Country Group A:5 or the United States Government; or
( 2 ) Sent to a person in the United States and not for subsequent export under § 740.9(b)(1) (License Exception TMP for items moving in transit through the United States); or
(C) The United States Government has otherwise authorized the ultimate end use, the license or other authorization is in effect, and the consignee verifies in writing that such authorization exists and has provided the license or other approval identifier to the exporter, reexporter or transferor (as applicable).
(iii) License Exception STA may not be used to export, reexport, or transfer (in-country) end items described in ECCN 0A606.a, ECCN 8A609.a, ECCN 8A620.a or .b, or ECCN 9A610.a until after BIS has approved their export under STA under the procedures set out in § 740.20(g).
(iv) License Exception STA may not be used to export, reexport, or transfer (in-country) “600 series” items if they are “600 Series Major Defense Equipment” and the value of such items in the contract requiring their export exceeds $25,000,000.
Any export, reexport, or transfer (in-country) originally authorized under License Exception STA must stay within the scope of the original authorization. For example, for “600 series” items authorized under License Exception STA, such items must be provided to an eligible ultimate end user, such as a Country Group A:5 military, to stay in compliance with the original authorization. This requirement for the “600 series” is referred to as 'completing the chain,' meaning regardless of how many times the “600 series” item is transferred (in-country) or whether the “600 series” item is incorporated into higher level assemblies or other items, the “600 series” item must ultimately be provided to an eligible ultimate end user, or be otherwise authorized under the EAR. This applies regardless of whether the “600 series” item has been incorporated into a foreign-made item that may no longer be “subject to the EAR.” Because the other items eligible for authorization under License Exception STA (9x515 and other non-600 series ECCNs) do not include the “600 series” requirements specific to ultimate end user, this 'completing the chain' concept does not apply to 9x515 and other non-600 series ECCNs authorized under License Exception STA. However, the original export, reexport, or transfer (in-country) made under License Exception STA for 9x515 and other non-600 series ECCNs still must comply with the original authorization—meaning the terms and conditions of License Exception STA.
(c) Authorizing paragraphs —(1) Multiple reasons for control. Exports, reexports, and transfers (in-country) in which the only applicable reason(s) for control is (are) national security (NS); chemical or biological weapons (CB); nuclear nonproliferation (NP); regional stability (RS); crime control (CC), and/or significant items (SI) are authorized for destinations in or nationals of Country Group A:5 (See supplement no.1 to part 740 of the EAR).
License Exception STA under § 740.20(c)(1) may be used to authorize the export, reexport, or transfer (in-country) of “600 series” items only if the purchaser, intermediate consignee, ultimate consignee, and end user have previously been approved on a license or other approval, i.e., Directorate of Defense Trade Controls (DDTC) Manufacturing License Agreement (MLA), Technical Assistance Agreement (TAA), Warehouse Distribution Agreement (WDA), or General Correspondence approval (GC) issued by BIS or DDTC at the U.S. Department of State.
(2) Controls of lesser sensitivity. Exports, reexports and transfers (in-country) in which the only applicable reason for control is national security (NS) and the item being exported, reexported or transferred (in-country) is not designated in the STA paragraph in the License Exception section of the ECCN that lists the item are authorized for destinations in or nationals of Country Group A:6 (See supplement no. 1 to this part).
(d) Conditions —(1) Requirement to furnish Export Control Classification Number. (i) The exporter must furnish to the consignee the ECCN of each item to be exported pursuant to this section. Once furnished to a particular consignee, the ECCN that applies to any item need not be refurnished to that consignee at the time the same exporter makes an additional export of the same item, if the information remains accurate at the time of the additional export.
(ii) A reexporter or transferor must furnish to subsequent consignees the ECCN, provided by the exporter or a prior reexporter or transferor, of each item to be reexported or transferred (in-country) pursuant to this section. Once furnished to a particular consignee, the ECCN that applies to any item need not be refurnished to that consignee at the time the same reexporter or transferor makes an additional reexport or transfer (in-country) of the same item, if the information remains accurate at the time of the additional reexport or transfer (in-country).
(iii) For purposes of determining reexport or transfer eligibility under this section, the consignee may rely on the ECCN provided to it by the party required to furnish the ECCN under paragraph (d)(1)(i) or (ii) of this section unless the consignee knows that the ECCN is incorrect or has changed. The word “knows” has the same meaning as the term “knowledge” in § 772.1 of the EAR.
(2) Prior Consignee Statement. The requirements in this paragraph (d)(2) apply to each party using License Exception STA to export, reexport, or transfer (in-country), including reexporters and transferors of items previously received under License Exception STA. The exporter, reexporter, or transferor must obtain the following statement in writing from its consignee(s) prior to exporting, reexporting, or transferring (in-country) the item and must retain the statement in accordance with part 762 of the EAR. One statement may be used for multiple exports, reexports, or transfers (in-country) of the same items between the same parties so long as the party names, the description(s) of the item(s) and the ECCNs are correct. The exporter, reexporter, or transferor must maintain a log or other record (such as documents created in the ordinary course of business) that identifies each shipment made pursuant to this section and the specific consignee statement that is associated with each shipment. For purposes of this paragraph (d)(2), a log or other record is not required for intangible ( i.e., electronic or in an otherwise intangible form) exports, reexports, or transfers (in-country) made under License Exception STA, but an exporter, reexporter, or transferor is required, prior to making any export, reexport, or transfer (in-country), to ensure that a prior consignee statement has been obtained pursuant to the requirements of this paragraph (d)(2). ( See Note 1 to paragraph (d)(3) of this section for additional guidance on intangible exports, reexports, and transfers (in-country), including best practices). Paragraphs (d)(2)(i) through (vi) of this section are required for all transactions. In addition, paragraph (d)(2)(vii) is required for all transactions in “600 series” items and paragraph (viii) of this section is required for transactions in “600 series” items if the consignee is not the government of a country listed in Country Group A:5 (See supplement no. 1 to part 740 of the EAR). Paragraph (d)(2)(viii) is also required for transactions including 9x515 items.
(i) Is aware that [INSERT GENERAL DESCRIPTION AND APPLICABLE ECCN(S) OF ITEMS TO BE SHIPPED ( e.g., aircraft parts and components classified under ECCN 9A610)] will be shipped pursuant to License Exception Strategic Trade Authorization (STA) in § 740.20 of the United States Export Administration Regulations (15 CFR 740.20);
(ii) Has been informed of the ECCN(s) noted above by [INSERT NAME OF EXPORTER, REEXPORTER OR TRANSFEROR];
(iii) Understands that items shipped pursuant to License Exception STA may not subsequently be reexported pursuant to paragraphs (a) or (b) of License Exception APR (15 CFR 740.16(a) or (b));
(iv) Agrees to obtain a prior consignee statement when using License Exception STA for any reexport or transfer (in-country) of items previously received under License Exception STA;
(v) Agrees not to export, reexport, or transfer these items to any destination, use or user prohibited by the United States' Export Administration Regulations;
(vi) Agrees to provide copies of this document and all other export, reexport, or transfer records ( i.e., the documents described in 15 CFR part 762) relevant to the items referenced in this statement to the U.S. Government as set forth in 15 CFR 762.7;
(vii) Understands that License Exception STA may be used to export, reexport, and transfer (in-country) “600 series” items to persons, whether non-governmental or governmental, only if they are in and, for natural persons, nationals of a country listed in Country Group A:5 (See supplement no. 1 to part 740 of the EAR) or the United States and if:
(A) The ultimate end user for such items is the armed forces, police, paramilitary, law enforcement, customs, correctional, fire, or a search and rescue agency of a government of one of the countries listed in Country Group A:5 or the United States Government;
(B) For the “development,” “production,” operation, installation, maintenance, repair, overhaul, or refurbishing of an item in one of the countries listed in Country Group A:5 or the United States that will be for one, or more, of the following purposes:
(1) Ultimately to be used by any such government agencies in one of the countries listed in Country Group A:5 or the United States Government; or
(2) Sent to a person in the United States and not for subsequent export under § 740.9(b)(1) (License Exception TMP for items moving in transit through the United States); or
(C) The United States Government has otherwise authorized the ultimate end use, the license or other authorization is in effect, and the consignee verifies in writing that such authorization exists and has provided the license or other approval identifier to the exporter, reexporter or transferor (as applicable).
(viii) Agrees to permit a U.S. Government end-use check with respect to the items.
[INSERT NAME(S) AND TITLE(S) OF PERSON(S) SIGNING THIS DOCUMENT, AND DATE(S) DOCUMENT IS SIGNED].
When multiple consignees who form a network engaged in a production process (or other type of collaborative activity, such as joint development) will be receiving items under License Exception STA, a single prior consignee statement for multiple consignees may be used for any item eligible for export, reexport, or transfer (in-country) under License Exception STA, provided all of the applicable requirements of License Exception STA are met, including those specified in paragraph (d)(2).
Country Group A:5 and A:6 government consignees are not required to sign or provide a prior consignee statement.
(3) Notification to consignee of STA shipment. With each shipment under License Exception STA, the exporter (or reexporter or transferor as applicable), must notify the consignee in writing that the shipment is made pursuant to License Exception STA. The notice must either specify which items are subject to License Exception STA or state that the entire shipment is made pursuant to License Exception STA. The notice must clearly identify the shipment to which it applies. The written notice may be conveyed by paper documents or by electronic methods such as facsimile or email.
While the exporter, reexporter, and transferor must furnish the applicable ECCN and obtain a consignee statement prior to export, reexport or transfer (in-country) made under License Exception STA in accordance with the requirements of paragraphs (d)(1) and (d)(2) of this section, intangible (i.e., electronic or in an otherwise intangible form) exports, reexports, and transfers (in-country) made under License Exception STA are not subject to the notification requirements of paragraph (d)(3) of this section. However, any export, reexport, or transfer (in-country) made under STA must stay within the scope of the original authorization.
(4) Requirements for releases of software source code or technology within a single country. Instead of the requirement of paragraphs (d)(1) through (d)(3) of this section, the party releasing software source code or technology to a national of a country listed in Country Group A:5 or A:6 (See supplement no. 1 to this part) must notify the recipient of the software source code or technology of the restrictions upon further release of the software source code or technology. The notification must either expressly inform the recipient that the EAR impose limits on further disclosure or must be in the form of an agreement in which the recipient agrees to limits on further disclosure. Any such agreement must impose limits that are equivalent to or more restrictive than all limits on further disclosure that are imposed by the EAR. The notification must be in writing and a copy of it must be retained by the party making the release and the recipient of the release. The notification may be in a separate document or included in a document such as a contract or a nondisclosure agreement. If the document has an expiration date, it must provide that the restrictions on disclosure do not expire.
(e) Limitation on subsequent exports, reexports or in country transfers. If a commodity has been exported, reexported or transferred in-country pursuant to this section, it may not be subsequently exported, reexported or transferred in-country pursuant to paragraphs (a) or (b) of License Exception APR (§ 740.16(a) or (b) of the EAR). Paragraphs (a) and (b) of License Exception APR do not authorize exports of software or technology.
(f) Applicability of Wassenaar Arrangement reporting requirements. See § 743.1 of the EAR for special reporting requirements that apply to some exports made pursuant to this section.
(g) License Exception STA eligibility requests for 9x515 and “600 series” items —(1) Applicability. Any person may request License Exception STA eligibility for end items described in ECCN 0A606.a, ECCN 8A609.a, ECCNs 8A620.a or .b, “spacecraft” in ECCNs 9A515.a.1, .a.2, .a.3, or .a.4, “sub-orbital craft,” or items in 9A515.g, 9A610.a, or technology ECCNs 9E515.b, .d, .e, or .f.
(2) Required information and manner of requests. Requests for License Exception STA eligibility must be made via the BIS Simplified Network Application Process-Redesign(SNAP-R) system unless BIS authorizes submission via the paper BIS-748-P Multipurpose Application form. For situations in which BIS 748-P submissions may be authorized, see § 748.1(d)(1). For required information specific to License Exception STA eligibility requests, see supplement no. 1 to part 748, Blocks 5 and 6 and supplement no. 2 to part 748, paragraph (w). In SNAP-R the work type for these applications is “Export.”
(3) Timeline for USG review. The Departments of Commerce, Defense and State will review License Exception STA eligibility requests in accordance with the timelines set forth in Executive Order 12981 and § 750.4. If the License Exception STA request is approved, the process outlined in paragraph (g)(5)(i) of this section is followed.
(4) Review criteria. The Departments of Commerce, Defense and State will determine whether the “end item” is eligible for this license exception based on an assessment of whether it provides a critical military or intelligence advantage to the United States or is otherwise available in countries that are not regime partners or close allies. If the “end item” does not provide a critical military or intelligence advantage to the United States or is otherwise available in countries that are not regime partners or close allies, the Departments will determine that License Exception STA is available unless an overarching foreign policy rationale for restricting STA availability can be articulated. Consensus among the Departments is required in order for an “end item” to be eligible for License Exception STA. Such determinations are made by the departments' representatives to the Advisory Committee on Export Policy (ACEP), or their designees.
(5) Disposition of License Exception STA eligibility requests —(i) Approvals. If the request for STA eligibility is approved, the applicant will receive notification from BIS authorizing the use of the additional License Exception STA for the specific end items requested. This will be in the form of a notice generated by SNAP-R to the applicant. Applicants who receive an approval notification may share it with companies affiliated with them, such as a branch or distributor, and may also take steps to make it public (e.g., on their Web site) if the applicants so wish. In addition, BIS will add a description of the approved end item in the relevant ECCN and in an online table posted on the BIS Web site, which removes the restriction on the use of License Exception STA for the end item identified in the approved request. BIS will publish, as needed, a final rule adding this license exception eligibility to the EAR for that ECCN entry or end item.
(ii) Denials. If the STA eligibility request is not approved, the applicant will receive written notification from BIS. This will be in the form of a notice generated by SNAP-R to the applicant. Applicants may re-submit STA eligibility requests at any time.
§ 740.21   Support for the Cuban People (SCP).
(a) Introduction. This License Exception authorizes certain exports and reexports to Cuba that are intended to support the Cuban people by improving their living conditions and supporting independent economic activity; strengthening civil society in Cuba; and improving the free flow of information to, from, and among the Cuban people.
(b) Improving living conditions and supporting independent economic activity. This paragraph authorizes the export or reexport to Cuba of items designated as EAR99, or controlled on the Commerce Control List (CCL) (supplement no. 1 to part 774 of the EAR) only for anti-terrorism reasons ( i.e., anti-terrorism must be the only reason for control that applies to the item as set forth in the Export Control Classification Number (ECCN) that controls the item). If any other reason for control applies to the item, it is not authorized for export or reexport by this paragraph. The item must be within one or more of the following categories:
(1) Items for use by the Cuban private sector for private sector economic activities, except for items that would be used to:
(i) Primarily generate revenue for the state; or
(ii) Contribute to the operation of the state, including through the construction or renovation of state-owned buildings.
(2) Items sold directly to individuals in Cuba for their personal use or their immediate family's personal use, other than officials identified in paragraphs (d)(4)(ii) or (iii) of this section.
(2) Items sold directly to individuals in Cuba for their personal use or their immediate family's personal use, other than officials identified in paragraphs (d)(4)(ii) or (iii) of this section.
(c) Strengthening civil society. This paragraph authorizes the export or reexport to Cuba of certain items for use in specified activities that can strengthen civil society. The items authorized pursuant this paragraph are limited to those designated as EAR99 or controlled only for anti-terrorism reasons on the CCL ( i.e., anti-terrorism must be the only reason for control that applies to the item as set forth in the ECCN that controls the item). If any other reason for control applies to the item, it is not authorized for export or reexport by this paragraph. The export or reexport must be within one or more of the following categories:
(1) The export or reexport to Cuba of donated items for use in scientific, archaeological, cultural, ecological, educational, historic preservation, or sporting activities. The items may not be donated to organizations administered or controlled by the Cuban government or communist party, and must support eligible activities independent of the Cuban government and communist party. The activities may not relate to the “development,” “production,” “use,” operation, installation, maintenance, repair, overhaul or refurbishing of any item enumerated or otherwise described on the United States Munitions List (22 CFR part 121) or of any item enumerated or otherwise described on the Commerce Control List (supplement no. 1 to part 774 of the EAR) unless the only reason for control that applies to that item, as set forth in the ECCN that controls that item, is anti-terrorism.
(2) The temporary export or reexport to Cuba of items by travelers to Cuba for the travelers' use in scientific, archeological, cultural, ecological, educational, historic preservation, or sporting activities, or professional meetings or research. The following requirements apply:
(i) The research must be directly related to traveler's profession, professional background or area of expertise, including area of graduate-level full-time study.
(ii) The activities or research may not relate to the “development,” “production,” “use,” operation, installation, maintenance, repair, overhaul or refurbishing of any item enumerated or otherwise described on the United States Munitions List (22 CFR part 121) or of any item enumerated or otherwise described on the Commerce Control List (supplement no. 1 to part 774 of the EAR) unless the only reason for control that applies to that item as set forth in the ECCN that controls that item is anti-terrorism.
(iii) The items must remain under the traveler's “effective control” while in Cuba.
(iv) Items authorized for temporary export by this paragraph must be returned to the United States within two years of the date of export from the United States unless:
(A) The items are consumed in Cuba; or
(B) The exporter applies for and receives a license from BIS, prior to the expiration of the two year period, authorizing the items to remain in Cuba for longer than two years.
(v) Paragraph (c)(2) of this section does not authorize exports if, at the time of the export, the exporter has “knowledge” that the item exported will remain in Cuba for more than two years.
(3) The export or reexport to Cuba of items to human rights organizations, individuals or non-governmental organizations that promote independent activity intended to strengthen civil society.
(d) Improving communications. This paragraph authorizes the export or reexport to Cuba of certain items intended to improve the free flow of information to, from, and among the Cuban people. The items authorized pursuant to this paragraph are limited to those designated as EAR99 or controlled only for anti-terrorism reasons on the CCL ( i.e., anti-terrorism must be the only reason for control that applies to the item as set forth in the ECCN that controls the item). If any other reason for control applies to the item, it is not authorized for export or reexport by this paragraph. The export or reexport must be within one or more of the following categories:
(1) The export or reexport to Cuba of items for the creation and upgrade of telecommunications infrastructure to improve the free flow of information to, from, and among the Cuban people, including infrastructure that enables access to the internet and use of internet services. For infrastructure items that would be used to connect specific end users, those items may be used to connect individual Cubans or the Cuban private sector only ( e.g., not Cuban government ministries or state-owned enterprises).
(2) The export or reexport to Cuba of items for use by news media personnel engaged in the gathering and dissemination of news to the general public and who are:
(i) Regularly employed as journalists by a news reporting organization;
(ii) Regularly employed as supporting broadcast or technical personnel;
(iii) Freelance journalists with a record of previous journalistic experience working on a freelance journalistic project; or
(iv) Broadcast or technical personnel with a record of previous broadcast or technical experience who are supporting a freelance journalist working on a freelance journalistic project.
(3) The export or reexport to Cuba of items for use by U.S. news bureaus engaged in the gathering and dissemination of news to the general public.
(4) The export or reexport to Cuba of commodities or software that will be used by individuals or private sector entities to develop software that will improve the free flow of information or that will support the private sector activities described in paragraph (b) of this section. The following are ineligible end-users:
(i) The Cuban Government or the Cuban Communist Party and organizations they administer or control;
(ii) Ministers and Vice-Ministers; members of the Council of State; members of the Council of Ministers; members and employees of the National Assembly of People's Power; members of any provincial assembly; local sector chiefs of the Committees for the Defense of the Revolution; Director Generals and sub-Director Generals and higher of all Cuban ministries and state agencies; employees of the Ministry of the Interior (MININT); employees of the Ministry of Defense (MINFAR); secretaries and first secretaries of the Confederation of Labor of Cuba (CTC) and its component unions; chief editors, editors and deputy editors of Cuban state-run media organizations and programs, including newspapers, television, and radio; or members and employees of the Supreme Court (Tribuno Supremo Nacional); and
(iii) Members of the Politburo.
(e) Facilitating engagement, communications, and commerce. This paragraph (e) authorizes the export or reexport to Cuba of certain items intended to facilitate engagement between the U.S. and Cuban people; the free flow of information to, from, and among the Cuban people; and independent economic activity in Cuba. The export or reexport must be within one or more of the following categories:
(1) The export or reexport to Cuba of items for use by persons authorized by the Department of the Treasury, Office of Foreign Assets Control (OFAC) to establish and maintain a physical or business presence in Cuba pursuant to 31 CFR 515.573 or pursuant to a specific license issued by OFAC. The items authorized pursuant to this paragraph (e)(1) are limited to those designated as EAR99 ( i.e., items subject to the EAR but not specified in any ECCN) or controlled on the CCL only for anti-terrorism reasons.
(2) [Reserved]
Any resulting payments associated with establishing or maintaining a physical or business presence in Cuba, such as lease payments, are permitted only to the extent authorized by 31 CFR 515.573 or a specific license issued by OFAC.
(f) Temporary exports and reexports to Cuba. This paragraph (f) authorizes the export or reexport to Cuba, for periods not exceeding one year, of certain items designated as EAR99 or controlled only for anti-terrorism reasons on the CCL ( i.e., anti-terrorism must be the only reason for control that applies to the item as set forth in the ECCN that controls the item). If any other reason for control applies to the item, it is not authorized for export or reexport by this paragraph. This paragraph does not authorize any transaction if the exporter or reexporter has “knowledge” that the item is intended to remain in Cuba for more than one year; if an order to acquire the item, such as a purchase order, has been received before shipment; or when the item is for subsequent lease or rental. The export or reexport must be within one or more of the following categories.
(1) Tools of trade—commodities and software. Commodities or software to be used by the exporter or reexporter or its employees for the installation, servicing or repair of items that are subject to the EAR and that have been exported or reexported to Cuba under a license or license exception, or foreign-origin items that are not subject to the EAR that are owned and used exclusively by private sector entities in Cuba, may be exported or reexported under this paragraph (f). The commodities or software must remain under the “effective control” of the exporter or reexporter or its employees. Examples of security precautions to help prevent unauthorized access include the following:
(i) Use of secure connections, such as Virtual Private Network connections, when accessing IT networks for activities that involve the transmission and use of the software authorized under this license exception;
(ii) Use of password systems on electronic devices that store the software authorized under this license exception; and
(iii) Use of personal firewalls on electronic devices that store the software authorized under this license exception.
(2) Tools of trade—technology. Technology to be used by a 'U.S. person' exporter or reexporter or its employees who are traveling to or on temporary assignment in Cuba for the installation, servicing or repair of items that are subject to the EAR and that have been exported or reexported to Cuba under a license or license exception, or foreign-origin items that are not subject to the EAR that are owned and used exclusively by private sector entities in Cuba, may be exported or reexported under this paragraph (f). For purposes of this paragraph (f)(2), a 'U.S. person' is: an individual who is a citizen of the United States, an individual who is “lawfully admitted for permanent residence” in the United States as defined by 8 U.S.C. 1101(a)(20) or an individual who is a protected individual as defined by 8 U.S.C. 1324b(a)(3). 'U.S. person' also means any juridical person organized under the laws of the United States, or any jurisdiction within the United States ( e.g., corporation, business association, partnership, society, trust, or any other entity, organization or group that is authorized to do business in the United States). If the employee who will use the technology is not a 'U.S. person,' the release of that technology to that employee must either not require a license or be authorized by a license or a license exception other than this section before it may be exported or reexported to that employee under this paragraph. The exporter or reexporter and the recipient of the technology must take security precautions to protect against unauthorized release of the technology while the technology is being shipped or transmitted and used overseas. Examples of security precautions to help prevent unauthorized access include the following:
(i) Use of secure connections, such as Virtual Private Network connections, when accessing IT networks for email and other business activities that involve the transmission and use of the technology authorized under this license exception;
(ii) Use of password systems on electronic devices that will store the technology authorized under this license exception; and
(iii) Use of personal firewalls on electronic devices that will store the technology authorized under this license exception.
(3) Kits of replacement “parts” or “components.” Kits consisting of replacement “parts” or “components” for items that have been exported or reexported to Cuba under a license or license exception, or foreign-origin items that are not subject to the EAR that are owned and used exclusively by private sector entities in Cuba, may be exported or reexported under this paragraph (f)(3) provided:
(i) The kits remain under “effective control” of the exporter or reexporter or its employees; and
(ii) All parts and components in the kit are returned, except that one-for-one replacements may be made in accordance with the requirements of License Exception Servicing and Replacement of Parts and Equipment (RPL) and the defective parts and components returned (see Parts, Components, Accessories and Attachments in § 740.10(a)).
(4) Exhibition and demonstration. Commodities or software for exhibition or demonstration at trade shows, or to any entity that would be eligible to receive the commodities or software under paragraphs (a) through (e) of this section, may be exported or reexported under this paragraph (f). The commodities or software must remain under the “effective control” of the exporter or reexporter or its private sector agent, may not be exhibited or demonstrated at any one location for more than 30 days and may not be used for more than the minimum extent required for effective exhibition or demonstration.
(5) Containers. Containers that would require a license for export or reexport to Cuba but that are necessary for shipment of commodities being exported to Cuba under a license or license exception may be exported or reexported to Cuba. However, this paragraph (f) does not authorize the export of the container's contents, which, if not exempt from licensing, must be separately authorized for export or reexport under either a license or a license exception.
§ 740.22   Authorized Cybersecurity Exports (ACE).
(a) Scope. License Exception ACE authorizes export, reexport, and transfer (in-country), including deemed exports and reexports, of 'cybersecurity items,' as set forth in paragraph (b) of this section, subject to the restrictions set forth in paragraph (c) of this section. Deemed exports and reexports are authorized under this license exception, except for deemed exports or reexports to E:1 and E:2 nationals as described in paragraph (c)(1) of this section, to certain 'government end users' as described in paragraph (c)(2) of this section, and subject to the end use restrictions described in paragraph (c)(4) of this section. Even if License Exception ACE is not available for a particular transaction, other license exceptions may be available. For example, License Exception GOV (§ 740.11) authorizes certain exports to U.S. Government agencies and personnel. License Exception TMP (§ 740.9(a)(1)) authorizes the export, reexport, and transfer (in country) of tools of the trade in certain situations.
(b) Definitions. The following terms and definitions are for the purpose of License Exception ACE only.
(1) 'Cybersecurity Items' are ECCNs 4A005, 4D001.a (for 4A005 or 4D004), 4D004, 4E001.a (for 4A005, 4D001.a (for 4A005 or 4D004) or 4D004), 4E001.c, 5A001.j, 5B001.a (for 5A001.j), 5D001.a (for 5A001.j), 5D001.c (for 5A001.j or 5B001.a (for 5A001.j)), and 5E001.a (for 5A001.j or 5D001.a (for 5A001.j)).
(2) 'Digital artifacts' are items (e.g., “software” or “technology”) found or discovered on an information system that show past or present activity pertaining to the use or compromise of, or other effects on, that information system.
(3) 'Favorable treatment cybersecurity end user' is any of the following:
(i) A “U.S. subsidiary”;
(ii) Providers of banking and other financial services;
(iii) Insurance companies; or
(iv) Civil health and medical institutions providing medical treatment or otherwise conducting the practice of medicine, including medical research.
(4) 'Government end user,' for the purpose of this section, is a national, regional, or local department, agency, or entity that provides any governmental function or service, including entities or individuals who are acting on behalf of such an entity. This term does not include any 'favorable treatment cybersecurity end user' listed in paragraph (b)(3) of this section. This term includes, but is not limited to:
(i) International governmental organizations;
(ii) Government operated research institutions;
(iii) “More-sensitive government end users”;
(iv) “Less-sensitive government end users”;
(v) Utilities (including telecommunications service providers and internet service providers) that are wholly operated or owned by a government or governmental authority or 'partially operated or owned by a government or governmental authority';
(vi) Transportation hubs and services (e.g., airlines and airports; ships and ports; railways and rail stations; buses, trucking and highways) that are wholly operated or owned by a government or governmental authority or 'partially operated or owned by a government or governmental authority'; and
(vii) Retail or wholesale firms that are wholly operated or owned by a government or governmental authority or 'partially operated or owned by a government or by a governmental authority', engaged in the manufacture, distribution, or provision of items or services specified in the Wassenaar Arrangement Munitions List.
(5) For the purposes of this section, 'partially operated or owned by a government or governmental authority' means that a foreign government or governmental authority beneficially owns or controls (whether directly or indirectly) 25 percent or more of the voting securities of the foreign entity, or a foreign government or governmental authority has the authority to appoint a majority of the members of the board of directors of the foreign entity.
(c) Restrictions. License Exception ACE does not authorize deemed exports and reexports, exports, reexports, or transfers (in-country) of 'cybersecurity items' as follows:
(1) To a destination that is listed in Country Group E:1 or E:2 in supplement no.1 to this part.
(2) To a 'government end user', as defined in this section, of any country listed in Country Group D:1, D:2, D:3, D:4 or D:5 in supplement no. 1 to this part, except :
(i) 'Digital artifacts' (that are related to a cybersecurity incident involving information systems owned or operated by a 'favorable treatment cybersecurity end user') to police or judicial bodies in Country Group D countries that are also listed in Country Group A:6 for purposes of criminal or civil investigations or prosecutions of such cybersecurity incidents; or
(ii) To national computer security incident response teams in Country Group D countries that are also listed in Country Group A:6 of 'cybersecurity items' for purposes of responding to cybersecurity incidents, for purposes of “vulnerability disclosure”, or for purposes of criminal or civil investigations or prosecutions of such cybersecurity incidents.
(3) The restrictions in paragraphs (c)(1) and (2) of this section also apply to activities, including exports, reexports, and transfers (in-country), related to “vulnerability disclosure” and “cyber incident response”.
For paragraphs (c)(1) and (2) of this section, see Note 1 to ECCN 4E001 in the CCL (supplement no. 1 to part 774 of the EAR) excluding “vulnerability disclosure” and “cyber incident response” from control under 4E001.a or .c.
(4) To a non-'government end user' located in any country listed in Country Group D:1 or D:5 of supplement no. 1 to this part, except :
(i) Cybersecurity items classified under ECCNs 4A005, 4D001.a (for 4A005 or 4D004), 4D004, 4E001.a (for 4A005, 4D001.a (for 4A005 or 4D004) or 4D004) and 4E001.c, to any 'favorable treatment cybersecurity end user'.
(ii) “Vulnerability disclosure” or “cyber incident response”.
(iii) Deemed exports.
(5) If the exporter, reexporter, or transferor “knows” or has “reason to know” at the time of export, reexport, or transfer (in-country), including deemed exports and reexports, that the 'cybersecurity item' will be used to affect the confidentiality, integrity, or availability of information or information systems, without authorization by the owner, operator, or administrator of the information system (including the information and processes within such systems).
§ 740.23   Medical Devices (MED).
(a) Scope. License Exception MED authorizes the export, reexport, or transfer (in country) of “medical devices” designated as EAR99 to or within Russia, Belarus, the temporarily occupied Crimea region of Ukraine, or the covered regions of Ukraine (as specified in § 746.6(a)(2) of the EAR). See Supplement no. 3 to part 774—Statements of Understanding under paragraph (a) (Statement of Understanding—medical equipment) for guidance on classifying medical equipment and the definition of “medical device” in § 772.1 of the EAR. License Exception MED also authorizes the export, reexport, or transfer (in country) to or within Russia, Belarus, the temporarily occupied Crimea region of Ukraine, or the covered regions of Ukraine of “parts,” “components,” “accessories,” and “attachments” designated as EAR99 that are exclusively for use in or with “medical devices” designated as EAR99. This license exception authorizes transactions involving items designated as EAR99 that would otherwise require a license pursuant to § 746.6 or paragraphs (a)(5) through (8) of § 746.8 of the EAR, subject to the terms and conditions described in this section. For “parts,” “components,” “accessories,” and “attachments” authorized under License Exception MED, such replacement “parts,” “components,” “accessories,” and “attachments” may only be exported, reexported, or transferred (in-country) if they also meet the additional requirements under paragraphs (a)(1) and (2) of this section:
(1) The “part,” “component,” “accessory,” or “attachment” is being exported, reexported, or transferred (in-country) solely to replace a broken or nonoperational “part,” “component,” “accessory,” or “attachment” for use in or with a “medical device” that falls within the scope of paragraph (a) of this section, or the export, reexport, or transfer (in-country) of such replacement “parts,” “components,” “accessories,” and “attachments” is necessary and ordinarily incident to the proper preventative maintenance of such a “medical device;” and
(2) The number of replacement “parts,” “components,” “accessories,” and “attachments” that are exported, reexported, transferred (in-country), and stored in Russia, Belarus, the temporarily occupied Crimea region of Ukraine, or the covered regions of Ukraine does not exceed the number of corresponding operational “parts,” “components,” “accessories,” and “attachments” currently in use in or with the relevant medical devices in Russia, Belarus, the temporarily occupied Crimea region of Ukraine, or the covered regions of Ukraine.
(b) Restrictions. This license exception does not authorize the export, reexport, or transfer (in country) of any item:
(1) To a “proscribed person” (including but not limited to `military end users' (see §§ 744.17(e) and 744.21(g)) or in situations in which an entity on the Entity List in supplement no. 4 to part 744 or on the Military End-User (MEU) List) is a party to the transaction as described in § 748.5(c) through (f) of the EAR;
(2) Destined to a “production” “facility;” or
(3) When you have “knowledge” that the item is intended to develop or produce items.
The assembly in a hospital or other health care facility of a finished “medical device” completely “produced” outside of Russia, Belarus, the temporarily occupied Crimea region of Ukraine, or the covered regions of Ukraine” for the sole purpose of using that “medical device” at that facility is not considered a “production” activity for purposes of the restrictions under paragraphs (b)(2) and (3) of this section.
(c) Verification. Exporters, reexporters, and transferors must maintain a system of distribution that ensures that “medical devices” and “parts,” “components,” “accessories,” or “attachments” are not delivered to “proscribed persons” or entities engaged in the “production” of any product. Verification of the effectiveness of the distribution system may entail obtaining certain information from a consignee ( e.g., obtaining affirmations or other documentation from a consignee, or performing periodic on-site spot-checks ( e.g., conducting such verification by staff of the exporter, reexporter, or transferor; an internationally accredited auditing firm; or an internationally recognized non-governmental humanitarian organization in Russia, Belarus, the temporarily occupied Crimea region of Ukraine, or the covered regions of Ukraine to conduct such verification).
(d) Recordkeeping and review or inspection of records. In addition to complying with the recordkeeping requirements in part 762 of the EAR, exporters, reexporters, and transferors must maintain records of verification, as specified in paragraph (c) of this section, for 5 years and, upon request, provide records to BIS, or any other official of the United States designated by BIS, for review or inspection.
§ 740.24   Implemented Export Control (IEC).
(a) Scope. License Exception Implemented Export Controls (IEC) authorizes exports, reexports, and transfers (in-country) in accordance with License Exception IEC Eligible Items and Destinations, see paragraphs (b) and (c) of this section.
(b) Eligible items and destinations. License Exception IEC authorizes specified items to be exported, reexported, or transferred (in-country) to, among, or within specified destinations, as identified for each respective item, in accordance with License Exception IEC Eligible Items and Destinations. See paragraph (c) of this section.
(c) Incorporation by reference. License Exception Implemented Export Controls (IEC) Eligible Items and Destinations, last modified September 17, 2024, is incorporated by reference into this section with the approval of the Director of the Federal Register under 5 U.S.C. 552(a) and 1 CFR part 51. This material is available for inspection at the BIS and at the National Archives and Records Administration (NARA). Contact BIS at: BIS Office of National Security Controls, phone: 202-482-0092; email: LicenseExceptionIEC@bis.doc ; website: www.bis.gov. For information on the availability of this material at NARA, visit www.archives.gov/federal-register/cfr/ibr-locations or email fr.inspection@nara.gov. The material may be obtained from BIS and is available for inspection on the BIS website at www.bis.gov/IEC.
§ 740.25   License Exception High Bandwidth Memory (HBM).
(a) Scope. This License Exception High Bandwidth Memory (HBM) authorizes the export, reexport, or transfer (in-country) of items specified in ECCN 3A090.c on the Commerce Control List (CCL) in supplement no. 1 to part 774 if all terms and conditions within this section are met.
(b) Exporter, reexporter, transferor. The exporter, reexporter, or transferor must be headquartered in the United States or a destination specified in Country Group A:5 of supplement no. 1 to this part, without an ultimate parent headquartered in Macau or a destination specified in Country Group D:5 of supplement no. 1 to this part.
(c) Conditions. The following exports, reexports, or transfers (in-country) are only authorized under this License Exception HBM if the 3A090.c item has a memory bandwidth density less than 3.3 GB/s/mm^2 and both of the following conditions apply:
(1) The 3A090.c items exported, reexported, or transferred to or within Macau or a destination specified in Country Group D:5 must be directly purchased by the designer of the co-packaged commodity not otherwise prohibited from receipt of the item; and
(2) The 3A090.c items must be exported, reexported, or transferred (in-country) directly to the packaging site.
(i) For 3A090.c items exported, reexported, or transferred (in-country) to a U.S., or Country Group A:5 or A:6-headquartered packaging site without an ultimate parent headquartered in Macau or a destination specified in Country Group D:5 of supplement no. 1 to part 740:
(A) The packaging site must confirm in writing to the producer of the chips that the 3A090.c item was packaged and exported, reexported, or transferred (in-country) to the specified designer of the co-packaged commodity. This confirmation is considered an “export control document” and is subject to recordkeeping requirements in part 762. A copy of this record must be provided to BIS upon request; and
(B) The finished, co-packaged commodities must not exceed the technical thresholds in ECCN 3A090, unless packaging the item is permitted under the Temporary General License (TGL) specified in paragraph (d) of General Order No. 4 in of supplement no. 1 to part 736.
(ii) For 3A090.c items exported, reexported, or transferred (in-country) to any other packaging site, the finished, co-packaged commodities must be sent back to the exporter, reexporter, or transferor for export, reexport, or transfer (in-country) to the purchaser:
(A) Upon receipt of the finished, co-packaged commodities, the exporter, reexporter, transferor must confirm the number of 3A090.c units contained within the finished, co-packaged chips received from the packaging site matches the number of 3A090.c items exported, reexported, or transferred (in-country) to the packaging site. This confirmation is considered an “export control document” and is subject to recordkeeping requirements in part 762. A copy of this record must be provided to BIS upon request; and
(B) The finished, co-packaged commodities must not exceed the technical thresholds in ECCN 3A090.a or 3A090.b.
(d) Restrictions. The following exports, reexports, or transfers (in-country) of 3A090.c items are not authorized under this License Exception HBM:
(1) To distributors.
(2) To intermediate consignees, unless hired by the packaging site for freight forwarding or customs clearance.
(3) To co-packaging at a “facility” located in Macau or a destination specified in Country Group D:5 where “production” of “advanced-node ICs” occurs.
(e) Reporting requirement. In the event that the exporter, reexporter, or transferor identifies a discrepancy of greater than 1 percent between the number of 3A090.c units exported, reexported, or transferred (in-country) to the packaging site and the number of 3A090.c units contained within the finished, co-packaged commodities received from the packaging site under paragraph (c)(2)(ii) of this section, this generates a 'Red Flag' that must be resolved before exporting, reexporting, or transferring (in-country) the finished, co-packaged commodities to the designer of the co-packaged commodity or engaging in any further exports, reexports, or transfers (in-country) of 3A090.c items to the designer of the co-packaged commodity or packaging site involved in the transaction that raised the Red Flag. If the Red Flag cannot be resolved, then within 60 days of identifying the discrepancy, the exporter, reexporter, or transferor must report the information in paragraph (e)(1) to BIS consistent with the requirements under paragraph (e)(2).
(1) Information required. (i) Date of shipment;
(ii) Quantity exported and quantity returned;
(iii) Name of Consignee or designer of the co-packaged commodity;
(iv) Name and address of the packaging site;
(v) End use; and
(vi) Explanation of measures already taken or planned to resolve the Red Flag.
(2) Submission requirements. Reports must be provided in electronic form. Recommended file formats for electronic submission include spreadsheets, tabular text or structured text. Submitters may request other reporting arrangements with BIS to better reflect their business models. Reports are to be sent electronically to BIS at the email address: HBMReports@bis.doc.gov with the email subject line Attn: LE HBM Discrepancy Reports.
§ 740.26   License Exception Restricted Fabrication “Facility” (RFF).
(a) Scope. License Exception Restricted Fabrication “Facility” (RFF) authorizes the export, reexport, export from abroad, and transfer (in-country) of items not specified in ECCNs 3B001, 3B002, 3B993, 3B994, 3D992, 3D993, 3D994, 3E992, 3E993, or 3E994. Additionally, this license exception does not overcome destination-based license requirements in part 742, end-use based license requirements in other sections of part 744, or license requirements that apply to other entities on the Entity List if other listed entities that are not eligible for this license exception are a party to the transaction.
(b) Definition. A restricted fabrication “facility” is an entity that is on the Entity List in supplement no. 4 to part 744 of the EAR that has a reference to § 740.26 in the license requirement column.
(c) Restrictions. License Exception RFF is subject to the following restrictions.
(1) Items may not be used for the operation, installation, maintenance, repair, overhaul, or refurbishing of items specified in ECCNs 3B001.a.4, c, d, f.1, f.5, f.6, k to n, p.2, p.4, r, 3B002.c, 3B993, or 3B994 at a 'restricted fabrication facility'.
(2) The item may not be used to produce “advanced-node integrated circuits.”
(d) Notification requirements. Notifications must be sent to EARReports@bis.doc.gov. Subject line 'LE RFF Notification pursuant to (d)(1)' for notifications required under (d)(1) and with the subject line 'LE RFF Notification pursuant to (d)(2)' for notifications required under (d)(2) of this section.
(1) 45-Days Prior. 45 days prior to exporting, reexporting, exporting from abroad, or transferring (in-country) items eligible under this license exception, a notification must be sent to BIS that includes the end-user's name and address, description of item(s), purchase price, and anticipated shipping date of shipment.
(2) Within one business day. If you gain “knowledge” that the end use has changed to “advance-node integrated circuit” “production,” you must notify BIS within one business day.
(e) Reporting requirements. Reports must be provided in electronic form. Recommended file formats for electronic submission include spreadsheets, tabular text, or structured text. Submitters may request other reporting arrangements with BIS to better reflect their business models. Reports are to be sent electronically to BIS at the email address: EARReports@bis.doc.gov. Subject line Attn: LE RFF Installation Reports for paragraph (e)(1) or Attn: LE RFF Annual Confirmation Report for paragraph (e)(2) of this section.
(1) Installation. Within 30 days of installation of semiconductor manufacturing equipment, you must submit a report to BIS that includes the end-user's name and address, description of equipment that was installed, and date of installation. This email should reference previous notifications sent to BIS, including notifications.
(2) Annual end-use confirmation. On February 1 of each year that the exporter, reexporter, or transferor is continuing to provide service or for at least for five years from the date of last service, you must submit a report to BIS that you have confirmed that the installed semiconductor manufacturing equipment is not being used in the production of “advanced-node integrated circuits.”
§ 740.27   License Exception Artificial Intelligence Authorization (AIA).
(a) Scope. This license exception authorizes the export, reexport, and transfer (in-country) of the items identified in paragraphs (a)(1) and (a)(2)(i) of this section to entities located within destinations listed in paragraph (a) of supplement no. 5 to this part, unless the entity is headquartered outside of, or has an ultimate parent company headquartered outside of, a destination specified in paragraph (a) of supplement no. 5 to this part, with an additional authorization for certain model weights in paragraph (a)(3) of this section, subject to additional conditions. This license exception cannot be used to provide items identified in paragraph (a)(1) of this section to entities headquartered outside of or located outside of paragraph (a) in supplement no. 5 to this part for training AI models specified in ECCN 4E091. Prior to export, reexport, or transfer (in-country) of eligible items in paragraph (a)(1) of this section, the exporter, reexporter, or transferor must obtain the certification described in (b)(2) of this section and submit it to BIS.
(1) Eligible commodities for this exception are those specified in ECCNs 3A001.z.1.a, z.2.a, z.3.a, z.4.a; 3A090.a, if designed by an approved or authorized integrated circuit designer, as described in Note 1 to ECCN 3A090.a; 4A003.z.1.a, z.2.a; 4A004.z.1; 4A005.z.1; 4A090.a; 5A002.z.1.a, z.2.a, z.3.a, z.4.a, z.5.a, if designed by an approved or authorized integrated circuit designer, as described in Note 1 to ECCN 3A090.a; 5A004.z.1.a, z.2.a; and 5A992.z.1, if designed by an approved or authorized integrated circuit designer, as described in Note 1 to ECCN 3A090.a.
(2) Eligible software and technology for this exception are:
(i) Advanced Integrated Circuits: 3D001 (for “software” for commodities controlled by 3A001.z.1.a, z.2.a, z.3.a, z.4.a and 3A090.a); 4D001 (for “software” for commodities controlled by 4A003.z.1.a, z.2.a, 4A004.z.1, and 4A005.z.1); 4D090 (for “software” for commodities controlled by 4A090.a); 4E001 (for “technology” for commodities controlled by 4A003.z.1.a, z.2.a, 4A004.z.1, 4A005.z.1, 4A090.a or “software” specified by 4D001 (for 4A003.z.1.a, z.2.a 4A004.z.1, and 4A005.z.1) or 4D090.a); ; 5D002.z.1.a z.2.a, z.3.a, z.4.a, z.5.a, z.6.a, z.7.a, z.8.a, and z.9.a, or 5D992.z.1; 5E002 (for “technology” for commodities controlled by 5A002.z.1.a, z.2.a, z.3.a, z.4.a, z.5.a or 5A004.z.1.a, z.2.a or “software” specified by 5D002 (for 5A002. z.1.a, z.2.a, z.3.a, z.4.a, z.5.a or 5A004.z.1.a, z.2.a commodities)); and 5E992 (for “technology” for commodities controlled by 5A992.z.1 or “software” controlled by 5D992.z.1.)
(ii) AI Model Weights specified by ECCN 4E091, subject to the additional requirements in paragraph (a)(3) of this section.
(3) Additional authorization for AI model weights. For items identified in paragraph (a)(2)(ii) of this section only, this license exception also authorizes the export, reexport, and transfer (in-country) to entities headquartered, or whose ultimate parent company is headquartered, in the destinations listed in paragraph (a) of supplement no. 5 to this part 740, as long as:
(i) The entities obtaining the items are located outside Macau or destinations specified in Country Group D:5, and
(ii) These items will be stored in a facility that complies with paragraphs 14, 15 and 18 of the guidelines outlined in supplement no. 10 to part 748 (regardless of whether the facility is designated as a VEU).
(b) Requirements prior to use of this license exception for eligible commodities, software, and technology identified in paragraphs (a)(1) and (a)(2)(i) of this section —(1) Furnish ECCN. The exporter, reexporter, or transferor must furnish to the ultimate consignee the ECCN of each item to be exported, reexported, or transferred (in-country) pursuant to this section. Once furnished to a particular ultimate consignee, the ECCN need not be refurnished to that same ultimate consignee at the time the same exporter, reexporter, or transferor makes an additional export, reexport, or transfer (in-country) of the same item, if the ECCN(s) remains accurate at the time of the additional export, reexport, or transfer (in-country). For purposes of this license exception, the ultimate consignee is the entity that has ownership over the eligible item(s) in paragraph (a)(1) or (a)(2)(ii).
(2) Ultimate consignee certification. Prior to use of this license exception for items identified in (a)(1) only, the exporter, reexporter, or transferor must obtain a certification from the ultimate consignee. The certification is a one-time certification provided by each ultimate consignee that will be receiving items through the use of this license exception. The certification should provide that: [INSERT NAME(S) OF ULTIMATE CONSIGNEE(S)]:
(i) Is aware that [INSERT GENERAL DESCRIPTION AND APPLICABLE ECCN(S) OF ITEMS TO BE SHIPPED ( e.g., Boards classified under ECCN 4A090.a)) will be shipped pursuant to License Exception Artificial Intelligence Authorization (AIA) of the Export Administration Regulations (EAR), 15 CFR parts 730-774;
(ii) Agrees not to export, reexport, or transfer (in-country) these items to any end use or end user prohibited pursuant to Part 744 of the EAR without BIS authorization;
(iii) Agrees items received under this license exception are not, without prior authorization from the U.S. Department of Commerce's Bureau of Industry and Security (BIS), to be used to provide Infrastructure-as-a-Service (IaaS) access for training AI models specified in ECCN 4E091 for entities headquartered or located outside of, or whose ultimate parent company is headquartered outside of destinations listed in paragraph (a) of Supplement No. 5 to part 740;
(iv) Agrees that the items received under this license exception will not be exported, reexported, or transferred (in-country) to an entity headquartered or located outside of, or whose ultimate parent company is headquartered outside of paragraph (a) of Supplement No. 5 to Part 740 without prior authorization from BIS; and
(v) Inserts [NAME(S), SIGNATURE(S), AND TITLE(S) OF PERSON(S) AUTHORIZED TO SIGN THIS DOCUMENT ON BEHALF OF THE ULTIMATE CONSIGNEE, AND DATE(S) DOCUMENT IS SIGNED].
(3) Notification to ultimate consignee of AIA shipment. With each shipment under License Exception AIA, the exporter (or reexporter or transferor as applicable), must notify the ultimate consignee in writing that the shipment is made pursuant to License Exception AIA. The notice must either specify which items are subject to License Exception AIA or state that the entire shipment is made pursuant to License Exception AIA. The notice must clearly identify the shipment to which it applies. The written notice may be conveyed by paper documents or by electronic methods such as facsimile or email.
(c) Reporting requirement. Once the exporter, reexporter, or transferor obtains the certification from the ultimate consignee for items identified in paragraph (a)(1) only, prior to the initial export, reexport or transfer (in-country), the exporter, reexporter, or transferor must submit the certification to EARReports@bis.doc.gov, with the subject line: AIA Certification. Following submission of the certification, exporters, reexporters and in-country transferors are not required to sign or provide a subsequent certification if the notification described in (b)(4) is provided to the ultimate consignee. This reporting requirement is only applicable if the ultimate consignee is receiving items identified in paragraph (a)(1) with a cumulative total processing performance (TPP) of 253,000,000.
§ 740.28   License Exception Advanced Compute Manufacturing (ACM).
(a) Scope. License Exception ACM authorizes the export, reexport, and transfer (in-country) of eligible items specified in paragraph (b) to 'private sector end users' for the “development,” “production,” or storage (in a warehouse or other similar facility) prior to export, reexport, or transfer (in country) to the ultimate end user of eligible items specified in paragraph (b) for items that are ultimately destined to customers outside of Macau or destinations specified in Country Group D:5, unless otherwise authorized.
(b) Eligible commodities, software, and technology. Commodities, “software,” and “technology” eligible for License Exception ACM are as follows: Items specified by ECCNs 3A001.z; 3A090.a. if designed by an approved or authorized integrated circuit designer, as described in Note 1 to ECCN 3A090.a; 3A090.b and c; 3D001 (for “software” for commodities controlled by 3A001.z or 3A090); 3E001 (for “technology” for commodities controlled by 3A001.z or 3A090); 4A003.z; 4A004.z; 4A005.z; 4A090; 4D001 (for “software” for commodities controlled by 4A003.z, 4A004.z, and 4A005.z); 4D090 (for “software” for commodities controlled by 4A090); 4E001 (for commodities controlled by 4A003.z, 4A004.z, 4A005.z, 4A090 or “software” specified by 4D001 (for 4A003.z, 4A004.z, or 4A005.z), or 4D090 (for “software” for commodities controlled by 4A090)); 5A002.z.1.a, z.2.a, z.3.a, z.4.a, z.5.a, if designed by an approved or authorized integrated circuit designer, as described in Note 1 to ECCN 3A090.a; 5A002.z.2; 5A004.z.2; and 5A992.z.2; 5A004.z; 5A992.z.1, if designed by an approved or authorized integrated circuit designer, as described in Note 1 to ECCN 3A090.a 5A992.z.2; 5D002.z; 5D992.z; 5E002 (for “technology” for commodities controlled by 5A002.z or 5A004.z or “software” specified by 5D002 (for 5A002.z or 5A004.z commodities)); or 5E992 (for “technology” for commodities controlled by 5A992.z or “software” controlled by 5D992.z).
(c) Ineligible destinations. License Exception ACM does not authorize the export, reexport, or transfer (in-country) to Macau or any destination specified in Country Group D:5, or to any consignee wherever located when the ultimate consignee is headquartered in, or the ultimate consignee's ultimate parent company is headquartered in, Macau or a destination specified in Country Group D:5.
(d) Private sector end user. A 'private sector end user' is either an individual who is not acting on behalf of any government (other than the U.S. Government), or a commercial firm (including its subsidiary and parent firms, and other subsidiaries of the same parent) that is not wholly owned by, or otherwise controlled by any government (other than the U.S. Government).
(e) Accounting. Exporters, reexporters, and transferors must maintain a system of distribution that allows them to account for the number of controlled items transferred to, and subsequently out, of the facility. Such accounting should be done for each facility, with records updated every six months or more frequently.
§ 740.29   License Exception Low Processing Performance (LPP).
(a) Scope. License Exception LPP authorizes the export and reexport of up to 26,900,000 cumulative total processing performance (TPP) of advanced computing integrated circuits per-calendar year directly to a single ultimate consignee. If the ultimate consignee is headquartered in a destination specified in paragraph (a) of supplement no. 5 to part 740, then the ultimate consignee may apply the cumulative TPP of exports and reexports of eligible commodities under this license exception toward the cumulative TPP limit of a different entity that will operate the items in paragraph (b). This license exception does not authorize transfers (in-country).
(b) Eligible commodities. Eligible commodities are those under ECCNs 3A001.z.1.a, z.2.a, z.3.a, z.4.a; 3A090.a; 4A003.z.1.a, z.2.a; 4A004.z.1; 4A005.z.1; 4A090.a; 5A004.z.1.a, z.2.a; and 5A992.z.1.
(c) Eligible destinations. This License Exception is available except:
(1) To destinations specified in Country Group D:5 or Macau, or
(2) To any destination when the ultimate consignee is headquartered in or has an ultimate parent company headquartered in Macau or a destination specified in Country Group D:5.
(d) Restriction on annual processing power volume of LPP. The total TPP volume of all exports and reexports of eligible commodities under this license exception made by all exporters and reexporters to a single ultimate consignee per calendar year may not exceed 26,900,000 TPP; however, there is no restriction on the number of shipments or the number of exporters and reexporters, provided that TPP volume is not exceeded. This annual TPP limit applies to shipments by all exporters and reexporters to the same ultimate consignee even though the shipments are made through more than one intermediate consignee.
(e) Prohibited end use and end user. This license exception cannot be used to export or reexport items to any end use or end user prohibited under Part 744.
(f) Ultimate Consignee Statement. Prior to use of this license exception the exporter or reexporter must obtain a certification from the ultimate consignee that: [INSERT NAME(S) OF ULTIMATE CONSIGNEE(S)]:
(i) Is aware that [INSERT GENERAL DESCRIPTION AND APPLICABLE ECCN(S) OF ITEMS TO BE SHIPPED ( e.g., Boards classified under ECCN 4A090.a)] will be shipped pursuant to License Exception Low Processing Performance;
(ii) Agrees not to export, reexport, or transfer these items to any use or user prohibited under Part 744 of the Export Administration Regulations;
(iii) Certifies that they have not received a 'cumulative TPP' of 26,900,000 of ECCNs 3A001.z.1.a, z.2.a, z.3.a, z.4.a; 3A090.a; 4A003.z.1.a, z.2.a; 4A004.z.1; 4A005.z.1; 4A090.a; 5A002.z.1.a, z.2.a, z.3.a, z.4.a, z.5.a; 5A004.z.1.a, z.2.a; 5A992.z.1, 5A004.z.1.a, z.2.a; and 5A992.z.1 items in the relevant calendar year under License Exception LPP.
(iv) Inserts [NAME(S), SIGNATURE(S), AND TITLE(S) OF PERSON(S) AUTHORIZED TO SIGN THIS DOCUMENT ON BEHALF OF THE ULTIMATE CONSIGNEE, AND DATE(S) DOCUMENT IS SIGNED].
(g) Reporting requirement. (1) Exporters and reexporters, having obtained the required certification in paragraph (f) prior to exporting or reexporting eligible items, must provide a copy of that certification to BIS by email to EARReports@bis.doc.gov with subject line “LPP Shipment” within 30 days of the date on which the export or reexport takes place.
(2) Ultimate consignees receiving eligible commodities under this License Exception TPP must notify BIS by email to EARReports@bis.doc.gov with subject line “LPP TPP Limit Reached” whenever they have received the maximum allowable 26,900,000 TPP under this license exception in a calendar year in all shipments from all exporters and reexporters. Notification to BIS should be made as soon as the ultimate consignee actually receives the final shipment of eligible commodities that exhausts the consignee's annual TPP volume limit.
(3) Exporters and reexporters, prior to exporting or reexporting the eligible items, must notify BIS by email to EARReports@bis.doc.gov with the subject line “LPP Shipment” of any shipment with an aggregate TPP of 3,200,000.
(h) Definitions —(1) Ultimate consignee. For purposes of this license exception, the ultimate consignee is the ultimate parent entity that has ultimate ownership over the items in paragraph (b).
(2) Cumulative TPP. The 'cumulative TPP' is the total amount of TPP, as defined in the Technical Notes to 3A090, of all eligible commodities in paragraph (b) that are received by a single ultimate consignee in all shipments from all exporters and reexporters in a calendar year. Cumulative TPP should be calculated by adding the individual TPP for any items specified in 3A090.a and 4A090.a and any items specified in 3A001.z, 4A003.z, 4A004.z, 4A005.z, 5A002.z, 5A004.z, or 5A992.z that meet or exceed the parameters of 3A090.a or 4A090.a.