Source: https://www.bis.doc.gov/index.php/licensing/embassy-faq/faq/54-can-a-qualified-veu-request-changes-to-its-veu-authorization
Timestamp: 2018-11-18 21:07:27
Document Index: 220962677

Matched Legal Cases: ['art 772', 'art 774', 'art 772', 'art 774', 'art 744', 'arts 734', 'art 734', '§734', '§746', '§746', '§764', '§746', 'art 746', 'art 744', '§746', '§746', '§746', '§746', '§746', '§746', 'art 746', '§746', '§746', 'art 746', '§746', 'art 746', '§746', '§772', '§746', '§746', '§746', '§746', 'art 746', '§746', 'art 744', 'art 744', '§746', '§734', '§734', 'art 734', '§746', 'art 746', '§746', '§746', '§746', '§746', '§746', '§746', '§740', '§746', '§746', '§ 736', '§ 750', '§750', '§750', '§750', '§750', '§750', 'art 748', 'art 740', 'art 738', 'art 744', 'art 744', 'art 744', 'art 774', 'arts 730', 'art 744', 'art 538', 'art 736', 'art 744', 'art 772', '§ 740', 'art 744', 'art 744', 'art 744', 'art 744', '§ 744', 'art 744', 'art 744', '§744', 'art 744', '§748', 'art 744', '§736', '§764', '§734', '§ 734', '§744', '§744', '§ 744', 'art 748', 'art 748']

FAQs - Can a qualified VEU request changes to its VEU authorization?
EAR Definitions, Technology and Software, Fundamental Research, and Patents FAQs
ZTE FAQs
Canadian Firearms Program, Ottawa, ON K1A 0R2
Facsimile: 613-825-0297
E-Mail: cfp-pcaf@rcmp-grc.gc.ca
http://www.rcmp-grc.gc.ca/cfp-pcaf/cont/index-eng.htm
What is a "deemed re-export"?
The term “deemed re-export” is often used to indicate the transfer of controlled U.S. technology to a third-country national overseas. As an example, a U.S. exporter transfers its controlled proprietary technology to a firm in country A. The firm in country A, in turn, employs an individual from country B who is not a permanent employee of the firm in country A and who will need the controlled proprietary technology to perform his or her assigned duties. Before transferring this controlled technology to the country B employee, the firm in country A is responsible for obtaining any required deemed re-export licenses as if it were transferring the technology to country B. Please see Section 734.2(b)(4) of the Export Administration Regulations (EAR).
Deemed Export FAQs
How do I enter the foreign national name and address information on the BIS-748P license application?
When submitting a deemed export license application, BIS recommends for every foreign national contained on the license application, the applicant or third party submitter include the US state name abbreviation immediately following the city name in either the ultimate consignee and/or end-user address blocks of the BIS-748P. The state name abbreviation should denote the locale that the foreign national will be visiting and the country name should denote the foreign country domicile where the foreign national claims citizenship. BIS recommends this data entry method because placing the state code together with the city name results in the proper display of the foreign national address information on the final validated license.
What is "technology"?
Per Part 772 of the Export Administration Regulations (EAR), "technology" is information necessary for the "development," "production," "use" operation, installation, maintenance, repair, overhaul, or refurbishing (or other terms specified in ECCNs on the CCL that control “technology”) of an item. The General Technology Note (Supplement No. 2 to part 774 of the EAR) states that the "export of technology" is controlled according to the provisions of each Category." It further states that "technology required for the development, production, or use of a controlled product remains controlled even when applicable to a product controlled at a lower level." Please note that the terms "required," "development," "production," "use," and "technology" are all defined in Part 772 of the EAR. Controlled technology is that which is defined in the General Technology Note and in the Commerce Control List (Supplement No. 1 to part 774 of the EAR).
When do I need to apply for an export license for technology under the deemed export regulations?
Assuming that a license is required because the technology does not qualify for treatment under EAR99 and no license exception is available, U.S. entities must apply for an export license under the deemed export regulations when both of the following conditions are met: (1) they intend to transfer controlled technologies to foreign nationals in the United States; and (2) transfer of the same technology to the foreign national's home country would require an export license.
How do I know if a foreign national would be subject to the deemed export regulations?
Any foreign national is subject to the deemed export regulations except a foreign national who (1) is granted permanent residence, as demonstrated by the issuance of a permanent resident visa (i.e., Green Card); or (2) is granted U.S. citizenship; or (3) is granted status as a protected person under 8 U.S.C. 1324b(a)(3). This includes all persons in the U.S. as tourists, students, businesspeople, scholars, researchers, technical experts, sailors, airline personnel, salespeople, military personnel, diplomats, etc. As noted, one exception to this general statement is a protected person. Protected persons include political refugees and political asylum holders. Be aware that individuals seeking protected person status must satisfy all of the terms and conditions that are fully set forth in 8 U.S.C. 1324b(a)(3). It should be emphasized that although the deemed export regulations may be triggered, this does not necessarily mean that a license is required. For example, the technology may be EAR99 or license exception eligible.
How are individuals handled who are permanent residents or citizens of countries other than those of their nationality?
As noted above, if the individual is a naturalized citizen or permanent resident of the United States, the deemed export regulations do not apply. In other words, he or she is not subject to the provisions of the deemed export regulation. For individuals who are citizens of more than one foreign country, or have citizenship in one foreign country and permanent residence in another, as a general policy, the last permanent resident status or citizenship obtained governs. Questions below provide examples of situations involving individuals who are citizens of more than one foreign country, or have citizenship in one foreign country and permanent residence in another. If, for some reason, the status of a foreign national is not certain, then you should ask the Bureau of Industry and Security (BIS), to determine where the stronger ties lie, based on the facts of the specific case. For instance, the status of a foreign national could be uncertain in situations where information may indicate involvement with prohibited entities or activities, for example, missile or nuclear-related end-uses or end-users as identified in Part 744 of the EAR. In response to a request for the status of a foreign national, BIS will look at the foreign national's family, professional, financial, and employment ties.
What if the individual is a foreign national of one country, say India, but has obtained permanent residency in another, say the U.K.?
Release of controlled technology to that individual in the U.K. would be treated as if the shipment were being made to the U.K. and licensing requirements, if any, would be the same as for a British national in the U.K.
If this same Indian foreign national traveled to visit facilities in a third country, say Germany, do the licensing requirements change, or is the release still treated as a transfer to the U.K. for licensing purposes?
The Indian national's U.K. permanent residency status still drives the licensing requirements and releases of technology to him or her would be considered as transfers to the U.K.
What if that same Indian foreign national comes to the United States?
As long as the Indian foreign national maintains his or her permanent residency status in the U.K., transfers of technology to that individual would be deemed as transfers to the U.K.
Now, what about changes in nationality? If a person was a citizen of India but subsequently became a citizen of the U.K., how is that person treated for export control purposes?
If the former Indian national becomes a British citizen, transfers of technology would be viewed as transfers to the U.K.
What if the Indian foreign national becomes a citizen of the U.K. but retains his or her Indian citizenship, as well? This is the situation of people who have dual-citizenship.
As a general principle, the last citizenship obtained governs. As is clear in response to the Question above, the individual's most recent citizenship is with the U.K. and releases of technology would be viewed as releases to the U.K.
I have read elsewhere on your web page the requirements for information that the Bureau of Industry and Security (BIS) wants in order to process a deemed export license application. I see that you require a lot of personal data, including citizenship and
The information we normally request derives from a curriculum vitae/resume or from company background checks. The information that BIS may request as part of the license application process is requested in order to determine whether BIS should authorize the release of such controlled sensitive technology. The hiring of foreign nationals is not prohibited or regulated by the Export Administration Regulations (EAR). The EAR does not regulate employment matters. The justification for the deemed export regulations is that there is no more effective way of disclosing sensitive technical information (e.g., design know-how) than to work side-by-side in a laboratory or on the production floor of a company. Our web page guidance is designed to assist you in pointing out the types of relevant information that BIS examines in connection with the license application review.
What technologies are subject to the Commerce Department controls?
Generally, technologies subject to the Export Administration Regulations (EAR) are those which are in the United States or of U.S. origin, in whole or in part. Most are proprietary. Technologies which tend to require licensing for transfer to foreign nationals are also dual-use (i.e., have both civil and military applications) and are subject to one or more control regimes, such as National Security, Nuclear Proliferation, Missile Technology, or Chemical and Biological Warfare.
Foreign technology with U.S.-origin technology commingled to a degree above a de minimis level is considered to be subject to the EAR. Technologies which may require an export license are those which are subject to the EAR and which are listed in the Commerce Control List, see Parts 734, 738, and 774 of the EAR.
Some technologies are under the exclusive jurisdiction of another agency of the U.S. government and are not subject to the EAR. These include defense services which are under the jurisdiction of the State Department and technology related to the production of special nuclear materials which is under the jurisdiction of the Energy Department.
Still other technologies do not require any authorization because they are already published. These include patent applications; published technology and software (other than software and technology controlled as encryption items) that are already published or will be published; or technology which arises during or as a result of fundamental research. See Part 734 of the EAR for details.
Is software considered "technology" and is it similarly controlled?
The Export Administration Regulations (EAR) definitions distinguish between software and technology. Software is one of the groups within each of the categories of items listed on the Commerce Control List (CCL). Software which is delineated on the CCL is controlled.
What technologies are considered "fundamental research"?
"Fundamental research" means research in science, engineering, or mathematics, the results of which ordinarily are published and shared broadly within the research community, and for which the researchers have not accepted restrictions for proprietary or national security reasons. It is distinguished from proprietary research and from industrial development, design, production, and product utilizations, the results of which ordinarily are restricted for proprietary and/or specific national security reasons. Normally, the results of "fundamental research" are published in scientific literature, thus making it publicly available. Research which is intended for publication, whether it is ever accepted by scientific journals or not, is considered to be "fundamental research." A large segment of academic research is considered "fundamental research." Because any information, technological or otherwise, that is published is not subject to the Export Administration Regulations (EAR) (except for encryption object code and source code) and thus does not require a license, "fundamental research" is not subject to the EAR and does not require a license. Please see §734.8 for a full discussion.
My company wants to employ an Indian foreign national who spent three years working for an Indian organization that is on the Entity List. May I do so? Do I require a license?
If he or she is properly documented for work in the United States, you may employ him or her. You must apply for an export license if you intend to release technology listed on the Commerce Control List which would require a license for export to India.
An Indian foreign national who is on sabbatical from an Indian organization that is on the Entity List wants to work with our firm in our executive training program where we will discuss proprietary technology which is not controlled to India. We have had
Yes, you are required to apply for a deemed export license. Under the sanctions imposed by the U.S. Government, any export which includes transfers of technology to foreign nationals requires a license to organizations on the Entity List. Because the Indian foreign national is still employed by the organization that is on the Entity List, a technology transfer to him or her is considered a technology transfer to the employer organization. Note that the sanctions apply to any technology subject to the Export Administration Regulations (EAR).
Intrusion and Surveillance Items
1.	What changes were made to the Wassenaar Arrangement list in 2017 for intrusion software and why were they made?
Based on the extensive public feedback on the May 2015 rule (80 FR 28853) that BIS proposed, the U.S. went back to Wassenaar in 2016 and 2017 to negotiate changes to the text in order to minimize the negative impacts the entries would have. The changes that were published are the result of those negotiations. https://www.bis.doc.gov/index.php/regulations/federal-register-notices/17-regulations/816-federal-register-notices-2015#FR28853
There are two changes that were made to the text. First, Notes were added to the entry for the “technology” for the “development” of “intrusion software”. The note clarifies that technology exchanged for vulnerability disclosure or cyber incident response purposes (as defined) are not controlled.
The second change is a Note added to the 4.D.4 control on the command and delivery platform for “intrusion software”. The note clarifies that software that provides software updates or upgrades are not controlled by the entry, as long as the software is not designed to update “intrusion software” or command and delivery platforms, or turn something into “intrusion software” or a command and delivery platform.
2. Does BIS believe these changes address all of the concerns that have been raised with these entries?
No. These are the changes that we have been able to get agreement on, at this time, with other Wassenaar Arrangement members and do not address all of the concerns raised. BIS considers these changes to be the first step in addressing the concerns.
3. Does the publication of these changes now mean that the U.S. is controlling these items? Do I need to start applying for export licenses?
No. The text that was published was the text that was agreed to by the Wassenaar Arrangement. In order for it to become law in the U.S. the U.S. government would need to publish a rule implementing these changes. Because no rule has been published yet, there are no new controls on these entries at this time.
We have not decided on a next step yet. There are a range of possible actions we could take, including returning to Wassenaar in 2018 to negotiate further changes to the text, publishing a rule to implement the text, or publishing a notice of inquiry or proposed rule for further comment.
What license requirements do the industry sector sanctions implemented in §746.5 of the Export Administration Regulations (EAR) impose?
§746.5 of the EAR, imposes licensing requirements on eight export control classification numbers (ECCN)) and fifty-three Schedule B numbers if a person knows (or is informed by BIS) that the item will be used directly or indirectly in exploration for, or production of, oil or gas in:
a. Russian deepwater (greater than 500 feet);
b. Arctic offshore locations;
c. Shale formations in Russia; or
d. Is unable to determine whether the item will be used in the aforementioned projects.
A licensing policy of presumption of denial applies for exports, reexports, or transfer (in-country) for the aforementioned projects that have the potential to produce oil. A licensing policy of case-by-case review applies for such projects that have the potential to produce gas.
Do my items, which are not going to be used in an oil or gas project, require a license under §764.5?
If the item is not listed in EAR §746.5 by ECCN or in Supplement No. 2 to Part 746 –“Russian Industry Sector Sanctions List” - by Schedule B number, then the sanctions do not impose any additional license requirements or exclusions on the use of EAR license exceptions. However, in making any license determination, the full scope of EAR license requirements needs to be taken into account before making a No License Required (NLR) determination, including license requirements in Part 744 of the EAR.
How does §746.5 affect other items on the Commerce Control List (CCL), (i.e., ECCNs not specifically mentioned in §746.5 of the EAR) that are used for oil and gas exploration applications in Russia?
BIS will apply the licensing policy set forth in §746.5, "Russian Industry Sector Sanctions," to the review of all license applications for controlled items going to Russia. If the commodity, software, or technology on the license application requires a license to Russia, and if the item will be used in an activity described in §746.5(b), the license will be reviewed consistent with licensing policy in §746.5. The licensing policy in §746.5 will also be applied to license applications for items requiring a license for export, re-export or transfer to Russia that are other than those controlled under the eight ECCNs or listed in the fifty three Schedule B numbers and that are destined for any of the four prohibited end-use categories listed above.
What if the Schedule B number of the item I want to ship to Russia is similar to one included in Supplement No. 2 to part 746 of the EAR?
Items with similar Schedule B numbers are not subject to license requirements in §746.5.
What areas are considered Russia for purposes of these sanctions?
Russia includes the territory of Russia and any other territory or marine area, including the exclusive economic zone and continental shelf, over which the Government of Russia claims sovereignty, sovereign rights, or jurisdiction, provided that the Government of Russia exercises partial or total de facto control over the area or derives a benefit from economic activity in the area pursuant to international arrangements.
Russia includes the territory of Russia and any other territory or marine area, including the exclusive economic zone and continental shelf, over which the Government of Russia claims sovereignty, sovereign rights, or jurisdiction, provided that the Government of Russia exercises partial or total de　facto control over the area or derives a benefit from economic activity in the area pursuant to international arrangements.
Would an intra-company transfer of any of the items listed by ECCN in §746.5 or by Schedule B number in Supplement No. 2 to part 746 of the EAR be prohibited if the listed item was being moved within Russia as a transfer (in-country), for.......
Would an intra-company transfer of any of the items listed by ECCN in §746.5 or by Schedule B number in Supplement No. 2 to part 746 of the EAR be prohibited if the listed item was being moved within Russia as a transfer (in-country), for one of the restricted uses? Many oilfield services companies have inventory positioned at in-country hubs, and will use the items in inventory for providing services in Russia.
The controls set forth in §746.5 cover in-country transfers. If the transaction in Russia also involved a transfer (in-country) as defined in §772.1 of the EAR, then the EAR license requirements and restrictions on the use of license exceptions in §746.5(c) would also apply. OFAC has also implemented sanctions specific to energy production activities, including those related to providing services for such activities. Any questions regarding OFAC’s sanctions should be directed to OFAC.
When §746.5 refers to shale and uses the terms exploration or production in shale, do the restricted end uses apply only to situations, such as fracking, where the hydrocarbon is located in shale formations, or do they also apply......
When §746.5 refers to shale and uses the terms exploration or production in shale, do the restricted end uses apply only to situations, such as fracking, where the hydrocarbon is located in shale formations, or do they also apply to projects involving penetrating a layer of shale to reach a reservoir located below the shale formation? What about projects that involve unconventional methods of extracting oil from shale (e.g., from shale reservoirs or oil shale processing)?
The license requirements of §746.5 of the EAR apply to the specified items when you know that the item will be used directly or indirectly in exploration for, or production of, oil or gas in Russian deepwater (greater than 500 feet) or Arctic offshore locations or shale formations in Russia, or are unable to determine whether the item will be used in such projects. Thus, the license requirement applies to exploration for, or production of, oil or gas from a shale formation. The license requirement does not apply to exploration or production through shale to locate or extract crude oil or gas in reservoirs.
Where on the BIS website is the list of Schedule B numbers categorizing items requiring a license under the Russian sanctions?
The Schedule B numbers affected are in the EAR’s Supplement No. 2 to Part 746: “Russian Industry Sector Sanction List”, which can be found here. The source for the Schedule B numbers and descriptions in BIS’s list comes from the Department of Commerce, Bureau of the Census’s Schedule B List which can be found here. The Introduction Chapter of the Schedule B provides important information about classifying products and interpretations of the Schedule B (e.g., NESOI means Not Elsewhere Specified or Included). In addition, important information about products within a particular chapter may be found at the beginning of each chapter.
Is the scope of seismic data, equipment and software in ECCN 0A998 limited to deepwater, Arctic and shale exploration projects in Russia?
No, that is not correct. The scope of the ECCN is limited by the control parameters included in the ECCN. The scope of the license requirements for ECCN 0A998 is limited to the license requirements in §746.5 of the EAR, which specifies the license requirements and license review policy that apply to the items identified in that section, including new ECCN 0A998. Note however, that if you propose to export, reexport or transfer (in-country) seismic data, equipment or software to Russia but do not know what type of project the items will be used in, a license is required. Also note that in making a license determination under the EAR, the full scope of the EAR license requirements need to be considered, including those in Part 744 that in certain cases impose a license requirement for all items subject to the EAR when the items are for certain prohibited end uses or end users as defined in Part 744.
Is the only software intended to be covered in ECCN 0A998 that which is specified in subparagraph b.1 (“hydraulic fracking design and analysis software and data”)?
Yes, software for the design and analysis of hydraulic fracturing is the only software controlled in ECCN 0A998. Note that BIS is making an exception to its general policy of not including software in "A" product group ECCNs and is including this software in ECCN 0A998.
The oil and gas exploration data controlled in new ECCN 0A998.a does not fall within the EAR’s definition of “technology” and is not treated as “software”. If a U.S. geologist was analyzing such data in Europe or Russia, would the one-time reporting requi
For purposes of §746.5, oil and gas exploration data is treated as a commodity, not software or technology. Therefore, the scenario described would not trigger the one-time reporting requirement, as specified in §734.4. In addition, the de minimis procedures for commodities would apply (see §734.4 and Supplement No. 2 to part 734 for information on the EAR’s de minimis provisions and the procedures for making de minimis calculations). However, regardless of whether the data being processed was subject to the EAR, providing such a service by a U.S. person for such end uses in Russia would in most cases likely be prohibited by OFAC. As noted above, questions specific to the OFAC restrictions, should be directed to OFAC.
Why is deepwater defined as 500 feet, when industry generally considers deepwater to be depths of more than 1500 feet?
The U.S. Government is aware that there are different depths for what is considered deep water. The "greater than 500 feet" standard is a bright line standard that is used by the U.S. Department of the Interior, Bureau of Ocean Management for what constitutes deep water, and helped to inform BIS’s decision to use "greater than 500 feet" as part of the criteria in §746.5 of the EAR. For reference, the U.S. Department of the Interior’s, Bureau of Ocean Management outlines the criteria for what constitutes deep water here.
The term “high pressure pumps” is not defined in ECCN 0A998.b.3. Does that ECCN control only high pressure pumps for fracking operations or all high pressure pumps used in the restricted end uses in Russia?
The high pressure pumps controlled under ECCN 0A998.b.3 are not limited to fracking operations, but include all those that will be used directly or indirectly in exploration for, or production of, oil or gas in Russian deepwater (greater than 500 feet) or Arctic offshore locations or shale formations in Russia or that will be used in an unknown end use. Keep in mind that any pump that is listed under a Schedule B number in Supplement No. 2 to part 746 and any pump classified under an ECCN that requires a license to Russia is also subject to §746.5.
Can I transship the items identified in §746.5 of the EAR through Russia for use in oil and gas activities in third countries?
The rule does not apply to or prohibit the transshipment through Russia items identified in §746.5 of the EAR if the items are intended for use in oil and gas activities in third countries. Parties to the transaction should be diligent to be aware of any red flags in the transaction that indicate the items may be intended for any prohibitions under §746.5 or intended for other prohibited purposes under the EAR.
Are any license exceptions available to ship the items identified in §746.5 of the EAR?
The only license exception available to ship the items identified in §746.5 of the EAR is §740.11(b), a subparagraph of license exception “Government, international organizations, international inspections under the Chemical Weapons Convention, and the International Space Station” (GOV).
Does de minimis still apply for reexports to Russia when the incorporated items proposed for re-export or export from abroad are subject to license requirements under §746.5 of the EAR?
The applicability of de minimis is not end-user/use based. It is destination based. Therefore, the items that are subject to license requirements under §746.5 of the EAR should not be included as controlled content in calculating the de minimis percentage of an item proposed for re-export to Russia.
What’s the new language?
The following language will be included on every license issued by the Bureau of Industry and Security (BIS): "Unless limited by a condition set forth below, the export, reexport or transfer (in-country) authorized by this license is for the item(s), end-use(s), and parties described in the license application and any letters of explanation. The applicant is responsible for informing the other parties identified on the license, such as ultimate consignees and end-users, of the license's scope and of the specific conditions applicable to them. BIS has granted this license in reliance on representations the applicant made in the license application, letters of explanation, and other documents submitted."
What is the purpose of the new standard language on BIS’s licenses?
The Bureau of Industry and Security (BIS), in coordination with our interagency partners, made the change as part of our ongoing efforts to rationalize and make more consistent the use of conditions on BIS licenses. The purpose of the change is to eliminate, to the greatest extent possible, the inclusion of requirements and prohibitions included in the Export Administration Regulations (EAR) as conditions on validated licenses. BIS is eliminating conditions specifying requirements and prohibitions included in the EAR from licenses because the EAR's conditions and requirements are applicable to all exports, reexports and transfers (in-country) of items subject to the EAR as a matter of law; inclusion of such conditions on licenses is redundant.
When did BIS start putting this new language on its licenses?
BIS began issuing license with the language on December 8, 2014.
What will be the biggest change on licenses as a result of the new language?
As the new language will eliminate the need to include license conditions specifying requirements and prohibitions included in the EAR, BIS expects that licenses issued after December 8, 2014 will generally have a smaller number of conditions as compared to licenses issued before December 8, 2014.
What is the impact of the new language on license applicants?
The new language will allow BIS and its interagency partners to process license applications more efficiently, thereby facilitating business activities. License applicants should note that the new language clarifies that BIS's licenses authorize the transaction(s) described in the license application and any letters of explanation. Therefore, license applications submitted with specific and detailed information will be processed more efficiently than those sibmitting general or incomplete information.
Additionally, the new language specifies that license applicants are required to inform the other parties to the license of the license's scope and of any license condition(s) applicable to the individual party. License applicants who have not routinely informed other parties to the license of such information should implement procedures to ensure that such notifications occur for all licenses.
FAQ #5 says that BIS will process license applications submitted with “specific and detailed information” more efficiently. What does “specific and detailed” information mean?
Generally speaking, the use of imprecise language on a license application causes processing delays and/or the inclusion of additional conditions. Imprecise language (e.g., phrases such as "including but not limited to") creates the impression that the license applicant is unsure or undecided about the details of the proposed transaction, therefore creating a requirement for BIS and its interagency partners to impose restrictions (in the form of conditions) on the license in order to protect the United States' national security and foreign policy interests.
The inclusion of specific information on license applications for transactions involving especially sensitive items or proposed for shipment to sensitive locations is helpful in facilitating BIS's processing. For example, before processing license applications for the export of satellites, BIS and its interagency partners need to know the name and address of the organization or company facilitating the satellite's launch. Exporters who are unsure about what specific information should be included to facilitate a license application for a specified item or to a specified location should contact BIS .
If I include precise information on my license application, will my application be processed in less than forty days?
Not necessarily. Including precise information increases the chance that your license will be issued more quickly and with fewer conditions than it otherwise would be.
Can you provide some examples of conditions that were included on licenses before but won’t be after November 10?
Selected examples are as follows:
Conditions no longer in general use after December 8, 2014:
Why isn’t BIS using these conditions anymore?
No reexport without prior authorization from the U.S. Government, unless elsewhere authorized under the EAR.
This condition is an existing prohibition under the EAR: See: § 736.2(b)(1) of the EAR – General Prohibition One and therefor does not generally need to be included on licenses. The condition will be included under certain circumstances, including if a license applicant requests reexport authorization and the request is denied.
Stated end use and end user(s) only
This limitation in scope is included in the EAR; it is redundant to include it as a license condition (See: § 750.7(a) of the EAR).
No military end use
As stated in §750.7(a) of the EAR, licenses authorize only the transaction(s) described in the license application and the license application support documents. Therefore, if you did not include a military end use in your license application or license application support documents, such an end use is not authorized under the license. The condition may be used if the license applicant does not specify the scope of the intended end-use within the license application (and the end-use could be either civil or military).
Civil end use only
As stated in §750.7(a) of the EAR, licenses authorize only the transaction(s) described in the license application and the license application support documents. Therefore, a condition requiring “civil end use only” is not required unless a military end use is requested in the license application or license application support documents but is not authorized by BIS.
Access/use is not granted to [embargoed destination(s)] nationals
As stated in §750.7(a) of the EAR, licenses authorize only the transaction(s) described in the license application and the license application support documents. Therefore, if you did not specifically request access or use by persons who are nationals of an embargoed destination in your license application or license application support documents, access or use by such nationals is not authorized under the license.
No resale or transfer without prior authorization from the U.S. Government.
As stated in §750.7(a) of the EAR, licenses authorize only the transaction(s) described in the license application and the license application support documents. Therefore, if you did not specifically request authorization to resell or transfer the items authorized for shipment in your license application or license application support documents, resale or transfer is not authorized under the license.
Applicant must inform consignee of all license conditions.
The requirement for the applicant to inform other parties to the license of the license conditions is stated in §750.7(d) of the EAR as well as in the new boilerplate language (which also requires applicants to inform the appropriate parties to the transaction of the license’s scope).
I received a license authorizing me to export equipment. There aren’t any conditions on the license that prohibit me from shipping technology. Can I send the technology necessary to maintain the equipment?
No, not if the technology is subject to the EAR, requires a license for export to the planned destination, and is not eligible for shipment under a license exception. Licenses issued by BIS authorize the export, reexport or transfer (in-country) of only the items specifically listed on the license.
I received a license to ship equipment to three end users. There aren’t any conditions on my license that prohibit me from shipping it to other end users. Can I ship the equipment to end users not specified on my license?
If the equipment is not eligible for shipment without a license (i.e., "no license required" or NLR) or under a license exception to end users not specified on your license, you may not ship to the additional end users without additional authorization from BIS.
Does this change impact the licenses issued by BIS prior to December 8, 2014?
Since December 8, 2014, BIS seems to be using riders on its licenses more often. What’s the difference between a condition and a rider?
A license condition is a requirement on the parties to the transaction named on the license. Violation of a license condition is a violation of the EAR and may be subject to administrative or criminal penalties.
A license rider consists of clarifying or explanatory language added to a license by BIS. Although license riders are not requirements, BIS sometimes uses riders to remind license parties of requirements under the EAR. Exporters should note that BIS's inclusion of a rider on a license puts the exporter on notice regarding the specific knowledge, including requirements under the EAR, provided in the rider.
I want to make sure I understand exactly what is authorized by my BIS license. Who can help me?
Please call BIS's Export Counseling Division at (202) 482-4811, BIS's Western Regional Office at (949) 660-0144 or BIS's Northern California branch office at (408) 998-8806. You may also send an e-mail to ECDOEXS@bis.doc.gov. Please include a telephone number for call-back purposes within your e-mail.
Frequently Asked Questions on BIS's New Boilerplate License Language
The inclusion of specific information on license applications for transactions involving especially sensitive items or proposed for shipment to sensitive locations is helpful in facilitating BIS's processing. For example, before processing license applications for the export of satellites, BIS and its interagency partners need to know the name and address of the organization or company facilitating the satellite's launch. Exporters who are unsure about what specific information should be included to facilitate a license application for a specified item or to a specified location should contact BIS.
Missile Technology FAQs
What kind of documentation or information is required in support of a license application for an item subject to missile technology export controls or when the item to be exported will be used in a missile project or program?
The information provided with your application should include technical specifications or brochures on the items you wish to export. Information that substantiates the legitimate activities of the end-user should be supplied as well. You should also include import or end-user certificates if the item is also subject to national security controls. For items to be used in a missile project or program, at a minimum, always specify the maximum capable range and payload of the delivery system or launch vehicle. Any information regarding the specific project or program should be provided; note if there is any U.S. government funding or oversight involved. You can also include open source information from Web sites, marketing brochures, etc. All of this information will assist licensing officers in their evaluation, determination, and licensing recommendations for the case. Including this information could prevent potential delays in the processing of the case and avoid a return of the application without action. The documentation requirements for export license applications are explained in detail in Part 748 of the EAR.
I am a manufacturer of inertial navigation systems (INS) that are controlled for Missile Technology (MT) reasons. We often get calls from airlines for replacement of broken bench stock spares or INS units in permanent service. Are there any license...
I am a manufacturer of inertial navigation systems (INS) that are controlled for Missile Technology (MT) reasons. We often get calls from airlines for replacement of broken bench stock spares or INS units in permanent service. Are there any license exceptions that I can use?
Yes, depending upon the situation, License Exceptions TMP, RPL, TSU, and AVS may be available for these types of items related to safety of flight. See Part 740 of the EAR for an explanation of when these license exceptions may apply.
Do special rules apply for exporting missile technology to China?
Yes. Section 1512 of the Strom Thurmond National Defense Authorization Act (NDAA) requires a Presidential certification to Congress prior to the export to China of missile technology controlled items, except for certain items used in manned aircraft. Authority for this certification has been delegated to the Secretary of Commerce, however, they can still take several months, and you should allow for substantial processing time for these applications. The Secretary must certify that the export will not be detrimental to the U.S. space launch industry and will not measurably improve the missile or space launch capabilities of China.
When is a license required for export of non-MT controlled items for use in missile activities?
Items not specifically controlled for MT reasons can also be controlled under section 744.3 of the EAR ("catch-all", or EPCI, controls). Items require a license if they will be used in the design, development, production, or use of:
• Rocket systems (including ballistic missile systems, space launch vehicles, and sounding rockets) or unmanned aerial vehicles (including cruise missile systems, target drones, and reconnaissance drones) capable of a range of at least 300 km for use in or by a country listed in Country Group D:4 (see Supplement No. 1 to Part 738 of the EAR)
• Any rocket system or unmanned aerial vehicles in a D:4 country where system characteristics or use are unknown
• Any rocket systems or unmanned aerial vehicles for the delivery of chemical, biological, or nuclear weapons to anywhere in the world, except by governmental programs for nuclear weapons delivery of the Nuclear Non-Proliferation Treaty Nuclear Weapons States that are also members of NATO
What is the “no undercut” policy in the MTCR?
In the MTCR, as well as the Nuclear Suppliers Group and the Australia Group, there is a "no undercut" policy. This means that if your license is denied because the United States determined it was detrimental to national security or foreign policy, the United States will notify the other members of the regime, who have agreed to consult with the United States before approving an export of the same or similar items to the same end-user. This does not apply to "catch all" denials of items not on the MTCR annex, but in practice many countries take into consideration denials by regime partners when reviewing other license applications.
How does EPCI affect exports of items for missile-related activities?
The term "Enhanced Proliferation Control Initiative" is not defined or generally used in the Export Administration Regulations. Under its original meaning, it included both the list-based controls on missile related items (as well as chemical, biological, and nuclear items) and controls on normally uncontrolled items that need a license because of the end-use or end-user. The term "EPCI" has come to be used informally to refer to the latter "catch all" controls, and refers to the controls set out in section 744 of the EAR.
We recently received an offer to supply a gear making machine (ECCN 2B993) to a tank and cannon factory in China. My boss told me to apply for a license because of EPCI. Is this an EPCI activity?
No, there are no EPCI (catch-all) controls on the manufacture of conventional arms. Conventional arms production is not an activity set out in Part 744 of the EAR. However, you need to determine if there are any activities that are described in Part 744 (i.e. missile/nuclear/chemical-biological weapons) at this facility.
I am a distributor of college textbooks. I often get requests from foreign customers for engineering textbooks containing information on missile technology. Should I be worried about EPCI/“catch-all” controls?
Written materials that are publicly available, such as college textbooks, are not subject to the Export Administration Regulations. However, a "U.S. person," as that term is defined in the EAR, may not support certain missile activities in any of a number of ways, including the provision of goods, the performance of a contract, and employment. See Part 744.6. While the textbooks would not, in themselves require an export license, they could be part of the impermissible support that a U.S. person is providing to a missile project and amount to a violation of the EAR.
My firm recently had an export license for a machine tool denied. The reason for denial was missile-related. This item isn't even controlled for missile reasons. What's going on?
Any license application can be reviewed for all proliferation concerns (not only those stated in the reasons for control.) In this instance, the item was denied because the transaction would make a material contribution to the proliferation of missiles.
What factors are used to evaluate “catch-all” items?
When reviewing licenses for items caught under section 744.3 of the EAR, the following factors will be taken into consideration:
(i) The specific nature of the end use
(ii) The significance of the export in terms of its contribution to the design, development, production, or use of missiles
(iii) The capabilities and objective of the missile and space programs of the recipient country
(iv) The nonproliferation credentials of the importing country
(v) The types of assurances or guarantees against design, development, production, or use of missiles that are given in a particular case
(vi) The existence of a pre-existing contract
What license exceptions are available for MT items?
Items other than some radar, accelerometers, gyros and corresponding test equipment, software, and technology may be exported as part of a manned aircraft, land vehicle, or marine vehicle or as replacement parts for such under license exceptions TMP, RPL, TSU, and AVS. Anti-friction bearing and bearing systems (2A001) or radial ball bearings (2A101) may be exported under TMP or RPL as one-for-one replacement for equipment previously exported.
What is meant by Category I, Category II, and MTCR-controlled missiles and unmanned aerial vehicles?
The MTCR considers missile systems or unmanned aerial vehicles that have a range of 300 km and the ability to carry a payload of 500 kg as Category I, and there is a strong presumption of denial for the export of such items. Category II missile systems and unmanned aerial vehicles are those that have a range of 300 km, but do not have the payload capability of Category I. Export of Category II systems are evaluated on a case-by-case basis. Both Category I and Category II items are MTCR-controlled. Missile systems or unmanned aerial vehicles that do not meet the range and payload capabilities of Category I and Category II are not MTCR-controlled. While most Category I and II complete systems fall under the jurisdiction of the Department of State, these categorizations can impact the licensing decisions on dual-use (Commerce controlled) commodities when evaluating the intended end use of the items, the capabilities of the destination country, and the risk of diversion of items.
How do I contact DDTC?
Contact DDTC at 202-663-2980 or go to www.pmddtc.state.gov.
Where do I find the list of ECCNs?
All ECCNs are listed in the Commerce Control List (CCL) which is in Supplement No. 1 to Part 774 of the Export Administration Regulations (EAR). The CCL is divided into ten broad categories. Category 0 contains ECCNs for shotguns and related items.
What is the Export Control Classification Number (ECCN) for shotguns and components?
ECCN 0A984 controls shotguns with barrels of 18 inches or longer and certain essential components: shotgun barrels 18 inches or longer but not longer than 24 inches, receivers, breech mechanisms, complete trigger mechanisms, and magazines or magazine extension tubes. Other parts of a shotgun not listed under 0A984 or in other ECCN entries are EAR99.
What is the ECCN for muzzle loading firearms?
Muzzle loading (black powder) firearms with a caliber less than 20 mm that were manufactured later than 1937 and are not reproductions of firearms manufactured earlier than 1890 are controlled under ECCN 0A018.c.
License applications must be submitted through SNAP-R, the on-line license application system. In order to access the SNAP-R system, you must first obtain a Company Identification Number (CIN). Obtaining a CIN is the first step toward completing your license application and must be completed in order to access the actual SNAP-R application. Instructions to complete this process can be found at the following hyperlink: https://www.bis.doc.gov/index.php/licensing/simplified-network-application-process-redesign-snap-r
https://www.bis.doc.gov/index.php/licensing/simplified-network-application-process-redesign-snap-r
Sudan: Change of Licensing Policy for Exports of Civil Telecommunications-related Infrastructure Items to Sudan and Addition of Sudan as an Eligible Destination for Exports of Consumer Communications Devices under License Exception CCD
What major changes did this rule make?
This rule amended Section 742.10 (15 CFR 742.10) of the Export Administration Regulations (15 CFR Parts 730-774) to revise the general licensing policy of denial to one of case-by-case review for exports and reexports to Sudan of certain telecommunications equipment and associated computers, software, and technology, including items that are useful for the development of civil telecommunications network infrastructure. It also revised License Exception Consumer Communications Devices (CCD), Section 740.19 of the EAR (15 CFR 740.19), which previously applied only to Cuba, to authorize exports and reexports of such devices to Sudan, either for sale or donation. This rule also made conforming changes to License Exception Temporary Imports, Export, Reexports and Transfers (in-country) (TMP) (Section 740.9 of the EAR (15 CFR 740.9). Finally, it removed a license requirement for reexports to Sudan of certain telecommunications software.
Why did BIS make these changes?
BIS made these changes to reflect the U.S. Government's commitment to the advancement of the free flow of information to, from, and within Sudan.
Do these changes affect the sanctions against Sudan?
No. Due to Sudan's designation as a "State Sponsor of Terrorism" by the Secretary of State, the Department of Commerce's Bureau of Industry and Security (BIS) maintains license requirements with a general policy of denial for exports and reexports of most items on the Commerce Control List to most end users in Sudan. Revised License Exception CCD permits exports and reexports of certain eligible commodities and software on the CCL to Sudan that previously required a license. Items designated as "EAR99" (subject to the EAR but not described on the Commerce Control List) continue to be eligible for export and reexport to Sudan without a license in the absence of end-use or end-user concerns set forth in Part 744 of the EAR. The changes made pursuant to the rule implement the U.S. Government's policy objective of facilitating communication and the free flow of information among the Sudanese people.
Due to the sanctions, do export/reexport transactions of items covered under License Exception CCD also require separate authorization from the Department of the Treasury’s Office of Foreign Assets Control (OFAC)?
Because OFAC and BIS share jurisdiction over certain exports and reexports to Sudan, these changes have been made in coordination with OFAC, which simultaneously has issued parallel amendments to the Sudanese Sanctions Regulations, 31 CFR part 538. Please see OFAC FAQs for further information pertaining to the Department of Treasury changes. [Most items that qualify for export or reexport to Sudan under revised License Exception CCD also qualify for export and reexport to Sudan under OFAC's new general license, as set forth in 31 CFR 538.533, published contemporaneously with the new BIS rule. Therefore, in most cases, you do not need a specific license from OFAC for the export or reexport of items described in License Exception CCD.] Exporters should review both 31 CFR 538.533 and License Exception CCD to ensure compliance with applicable export license requirements.
How do license exceptions relate to license requirements for Sudan in the Export Administration Regulations?
Most items described on the Commerce Control List require authorization in the form of a license from BIS for export or reexport to Sudan under Section 742.10 of the EAR, the provision that establishes license requirements and related license review policies for exports and reexports to Sudan. License Exception CCD is an example of an authorization that allows persons to export or reexport certain enumerated consumer communications devices subject to the EAR to Sudan that would otherwise require a license from BIS. If a license exception is available for a contemplated export or reexport to Sudan, the licensing requirements specified in Section 742.10 do not apply. The availability of License Exception CCD, however, is restricted to exports and reexports under certain defined circumstances. Please review Section 740.2 of the EAR, which contains restrictions on the availability of all license exceptions, including License Exception CCD. You should also review the General Prohibitions set forth in Part 736 and the license requirements and policies set forth in Part 744 (end-use and end-user concerns). Persons who are unfamiliar with the structure of the EAR or the relationship of license exceptions to license requirements generally may wish to consult the BIS online training room
http://www.bis.doc.gov/index.php/compliance-a-training/export-administration-regulations-training/online-training-room?id=284.
How do you define “consumer” as it relates to items that qualify for export and reexport to Sudan under License Exception CCD?
For the purposes of License Exception Consumer Communications Devices (CCD), a "consumer" item is an item that is: (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. In Section 740.19 (b) of the EAR, the term "consumer" describes the types of computers ((b) (1)), disk drives and storage equipment ((b)(2)), information security equipment, software, and peripherals ((b)(12)), and software ((b)(17)) that may be exported under License Exception CCD. The definition of "consumer" applies regardless of whether the item being exported or reexported is sold or donated.
Does this license exception cover the export or reexport of instruction manuals or other information on how to assemble and use authorized tools and equipment?
Instruction manuals or other information on how to assemble and use tools and equipment authorized for export or reexport under License Exception CCD likely fall into one of three categories. They may be eligible for License Exception Technology and Software Unrestricted (TSU) (Section 740.13(a) of the EAR) or constitute published information and software that is not subject to the EAR (Section 734.7 of the EAR), or they may not be subject to the EAR because they do not constitute "use" technology or other categories of technology (see Part 772 of the EAR). However, if such information is subject to the EAR, it may require a BIS license for export or reexport to Sudan.
Does License Exception CCD cover the export or reexport of upgrades, fixes, and patches for software?
Yes, if the software upgrades, fixes, or patches meet all the criteria described in License Exception CCD. Specifically, the items must be: 1) consumer communication devices as defined in License Exception CCD and 2) classified on the Commerce Control List under an ECCN that is expressly authorized for export or reexport under the license exception.
May I use License Exception CCD to sell communications devices to Sudan government owned, operated or controlled companies and corporations for resale to the Sudanese people?
License Exception CCD Section (c) (1) (iii) does not authorize the export or reexport of communications devices to the Government of Sudan, including entities owned, operated or controlled by the Government of Sudan, apart from certain consumer software listed in paragraph (b)(12) or (b)(17) that is distributed free of charge. Consequently, the Government of Sudan is an ineligible recipient of items such as telecommunications infrastructure equipment, computers, technology, and software (apart from the carve-out described), under the license exception. A license is therefore required for the export or reexport of such items to Sudan government owned, operated, or controlled companies. All items that require a license for export or reexport to the Government of Sudan will be reviewed on a case-by-case basis.
What changes does this rule make to the existing license exception for consumer communication devices?
As part of a January 16, 2015 rule that amended the EAR to reflect changes in the U.S. Government's Cuba policy, License Exception Consumer Communications Devices (CCD) was amended to authorize commercial sales, in addition to donations, of eligible items. Additionally, technical revisions were made in that rule to more precisely track the current technical specifications for some of the specified items. The Sudan rule provides that certain items, namely, Global Positioning System receivers and similar satellite receivers, are available under CCD for export and reexport to Sudan.
The item I would like to export is a consumer communications device listed on the Commerce Control List but its Export Control Classification Number is not among those specifically listed in License Exception CCD. May I use License Exception CCD to export
No. Your item must meet all the criteria of License Exception CCD to qualify for export or reexport under License Exception CCD. The item must be: 1) a consumer communications device as defined in License Exception CCD, and 2) classified on the Commerce Control List under an ECCN that is expressly authorized for export under the license exception.
If you are not sure whether your item is on the CCL or what ECCN applies to it, you may seek an official Commodity Classification (CCAT) from BIS in accordance with Section 748.3 of the EAR. You may submit a request for an official commodity classification through BIS's online SNAP-R System.
Please note that a CCAT will determine the ECCN that applies to your item or, alternatively, designate your item as EAR99. However, a CCAT will not state whether your item is a "consumer" communications device that may be exported or reexported under License Exception CCD. If you have questions about whether an item would qualify for export or reexport under License Exception CCD, including questions as to whether the item would constitute a consumer communications device for purposes of License Exception CCD, you may consult BIS's Foreign Policy Division at 202-482-4252 or submit an advisory opinion request in accordance with the procedures outlined in Section 748.3 of the EAR. You may also submit a license application as explained in the FAQ below.
The item I’d like to export is listed under an ECCN in License Exception CCD, but I have determined that it is not a “consumer” communications device within the meaning of License Exception CCD. May I export it under License Exception CCD?
No. Your item must meet all the criteria of License Exception CCD to qualify for export or reexport under License Exception CCD including meeting the definition of a "consumer" communications device that is set forth in the CCD license exception. If your item is listed on the CCL but you are unsure whether it is a consumer communications device, you may submit an application for license using BIS's SNAP-R system. If BIS determines that a license is required, BIS will process the application and apply the licensing policy outlined in Section 742.10 of the EAR. You may also seek an advisory opinion from BIS.
May I apply for a license to export or reexport telecommunications equipment to Sudan that does not qualify for export or reexport to Sudan under License Exception CCD?
Yes. BIS may authorize your export or reexport under a license when the export or reexport does not qualify for License Exception CCD. BIS will consider, on a case-by-case basis, applications to export or reexport telecommunications equipment and associated computers, software and technology for civil end use. In particular, BIS recognizes the significance of telecommunications items that are useful for the development of civil telecommunications network infrastructure.The facilitation of the free flow of information in Sudan can only occur effectively if there is adequate telecommunications infrastructure to support the consumer communications devices authorized by License Exception CCD. Consequently, BIS will review applications to export and reexport telecommunications-related items, including items useful for the development of civil telecommunications network infrastructure, on a case-by-case basis. License applicants should describe the specific civil end use of the items and their function in the development of civil telecom network infrastructure (see note to Section 742.10(b) (3)) in their license applications or in letters of explanation attached to the applications.
May I export consumer communications hardware and software under License Exception Consumer Communication Devices (CCD) to independent non-governmental organizations in Sudan?
Yes. Independent non-governmental organizations are eligible end-users of items exported to Sudan pursuant to License Exception Consumer Communications Devices (15 CFR § 740.19). Please note that organizations owned, operated, or controlled by the Sudanese Government are not eligible end-users.
May I use License Exception CCD to export consumer communications devices and software to Sudan for commercial resale within Sudan?
Yes. The terms of License Exception CCD do not require that items be exported or reexported directly to the end user. Consequently, exports and reexports to Sudan to commercial entities for resale to eligible end users would qualify for License Exception CCD. Eligible end users include individuals and independent non-governmental organizations operating in Sudan. Apart from certain specified consumer software that is distributed free of charge, the Government of Sudan may not be the end-user. An independent non-governmental organization that is owned, operated, or controlled by the Government of Sudan is not eligible to receive items under License Exception CCD. Persons wishing to use License Exception CCD are responsible for determining that the criteria of the license exception will be met. Please be advised nothing in License Exception CCD excuses a U.S. person from the need to comply with the Sudanese Sanctions Regulations.
What steps can Sudanese academic and training organizations (training institutes, test preparation centers, secondary schools, and universities) take to acquire and use hardware, software, web-based applications and teaching products?
Exporters and reexporters of items subject to the Export Administration Regulations may export or reexport hardware and software to Sudanese academic and training organizations without a BIS license if the transaction meets all the requirements of License Exception CCD. If such items also meet the requirements of the OFAC general license pertaining to certain software, hardware, and services incident to personal communications (31 CFR Section 538.533), an OFAC specific license would not be required for their export or reexport. (For definitive guidance on OFAC requirements, please consult with that agency.) Please note that not all Sudanese academic and training organizations would be authorized to receive these items under the license exception. Apart from certain specified consumer software that is distributed free of charge, License Exception CCD only applies to items destined for organizations or entities that are not part of the Sudanese Government (including owned, operated, or controlled by the government). Also, not all of the hardware and software described in this question will meet the requirements of License Exception CCD. In those cases, persons must apply for a BIS license and OFAC license to engage in the transaction. Sudanese academic and training organizations should contact the manufacturers and providers of these items directly to seek the classification number of the item they wish to import to Sudan and to learn whether they may receive the items and, if so, under what circumstances.
Sudan: Amendment to allow temporary export and reexport of items described in license exception Consumer Communication Devices (CCD) as “tools of the trade” under license exception Temporary Import, Exports, Reexports, and Transfers (in-country) (TMP)
May I use License Exception Temporary Imports, Exports, Reexports, and Transfers (in-country) (TMP) to temporarily export certain consumer communication devices and related software to Sudan?
Yes. You may use License Exception TMP (section 740.9 of the Export Administration Regulations (EAR)) to temporarily export (as well as reexport to Sudan, or transfer (in-country)) employer-owned consumer communications devices and related software described in License Exception Consumer Communications Devices (CCD) (section 740.19(b) of the EAR) as “Tools of Trade” under EAR section 740.9(a)(2). You must comply with all of the requirements and limitations set forth in section 740.9(a)(2), including with respect to permissible users and authorized purposes. This revision to License Exception TMP took effect on September 2, 2015.
Entity List FAQs
What is the Entity List?
The Bureau of Industry and Security (BIS) publishes the names of certain foreign persons – including businesses, research institutions, government and private organizations, individuals, and other types of legal persons - that are subject to specific license requirements for the export, reexport and/or transfer (in-country) of specified items. These persons comprise the Entity List, which is found at Supplement No. 4 to Part 744 of the Export Administration Regulations (EAR). The persons on the Entity List are subject to individual licensing requirements and policies supplemental to those found elsewhere in the EAR.
What is the background and purpose of the Entity List?
BIS first published the Entity List in February 1997 as part of its efforts to inform the public of entities that have engaged in activities that could result in an increased risk of the diversion of exported, reexported or transferred (in-country) items to weapons of mass destruction (WMD) programs. Since its initial publication, grounds for inclusion on the Entity List have expanded to activities sanctioned by the State Department and activities contrary to U.S. national security and/or foreign policy interests.
Where can I find the Entity List?
The Entity List is found in Supplement No. 4 to Part 744 of the Export Administration Regulations (EAR) (15 C.F.R. Part 744, Supp. No. 4). The most recent version of the EAR can be found here and the Entity List can be accessed here. If you would like to subscribe to BIS’s e-mail notification service that will alert you when BIS publishes rules in the Federal Register, including rules implementing changes to the Entity List, please click here.
Why should I check the Entity List?
You should check the Entity List because exports, reexports, and/or transfers (in-country) to those persons named on the Entity List are subject to licensing requirements and policies in addition to those elsewhere in the EAR. Failure to adhere to EAR licensing requirements is a violation of the EAR and could result in criminal and/or civil penalties. BIS recommends that exporters screen the parties to transactions against the Entity List as a standard part of pre-transaction due diligence activities.
Can a U.S. company have any dealings with a listed entity?
Yes. However, BIS considers that transactions of any nature with listed entities carry a "red flag" and recommends that U.S. companies proceed with caution with respect to such transactions. Note that the Entity List describes license requirements and policies for the export, reexport, and/or transfer (in-country) of items subject to the EAR only. Additionally, although many of the persons included on the Entity List are subject to policies of denial for the export, reexport, and/or transfer (in-country) of all items subject to the EAR, some are subject to policies and requirements that are narrower in scope (i.e., not all persons included on the Entity List are subject to license requirements for all items subject to the EAR, while others are subject to license requirements for all or some items listed on the Commerce Control List (CCL)). Be sure to review the licensing policy and requirements carefully.
Are U.S. companies prohibited under the EAR from doing business with specific entities that are not included on the Entity List?
As set forth in the answer to question 28, both BIS and other agencies in the U.S. Government maintain other lists of entities for which there are restrictions on doing business. In addition, the provisions of part 744 of the EAR, including § 744.6 of the EAR, apply to transactions regardless of whether the entity in question is listed on the Entity List or not.
Additionally, BIS recommends that exporters, reexporters, or persons transferring (in-country) items subject to the EAR review the U.S. Government’s list of proscribed persons to ensure that a proposed transaction does not violate other U. S. Government requirements.
What are the different types of license requirements for listed entities?
Each entity on the Entity List is assigned a specific licensing requirement on the basis of the national security and/or foreign policy considerations associated with the entity’s designation on the Entity List. Within the Entity List, the information for each listed entity includes the license requirement, license review policy, and Federal Register citation(s). License requirements vary from “all items subject to the EAR,” which includes items on the CCL as well as EAR99 items, to all items on the CCL, or to all items on the CCL except for specified items.
What is BIS’s policy for reviewing license applications that include listed entities as parties to the transaction?
BIS reviews license applications that include listed entities according to the entity’s role in the proposed transaction and the specific license review policy(ies) set forth for the entity(ies) on the Entity List. Note that while transactions outside of the scope of the license review policy for a listed entity are not prohibited, BIS considers that such transactions carry a "red flag."
Are there any license exceptions available for listed entities?
Section 744.1(c) of the EAR generally prohibits the use of license exceptions for almost all exports and reexports to listed entities. However, if one or more license exceptions are available to a listed entity, the availability will be noted in the licensing requirements information specific to that entity.
How often is the Entity List updated?
The Entity List is subject to ongoing review and revision. All changes to the Entity List are published in the Federal Register. You can subscribe to a BIS e-mail notification service that will alert you when EAR rules are published in the Federal Register, including rules implementing changes to the Entity List, by clicking here.
A company that used to be on the Entity List is no longer listed. Can I ship to them now?
The removal of an entity from the Entity List removes only the additional license requirements imposed by its listing on the Entity List, and does not modify the other license requirements that may be applicable under the EAR (i.e., as a result of an item’s classification on the CCL or the proposed country of destination for the export, reexport, or transfer (in-country)). Additionally, if you know or have been informed that the item proposed for export, reexport, or transfer (in-country) will be used in nuclear, missile, and/or chemical and biological weapons programs, you must seek a license pursuant to the requirements found in Part 744 of the EAR. You should also consult the other export screening lists maintained by BIS and other U.S. Government agencies to determine whether other license requirements or sanctions apply. In summary, you should conduct the same due diligence as you would for any other export, reexport, or transfer (in-country) of items subject to the EAR.
What if a company I want to export to is at the same address as (e.g., co-located with) a listed entity?
This is a "red flag" and the exporter must undertake sufficient due diligence to verify that the company co-located with the listed entity is not, in fact, the listed entity and does not intend to transfer (in-country) the requested items to the listed entity.
What if the name or address of the company I want to export to is a near match to a name or address on the Entity List?
As this is a "red flag", BIS recommends that detailed due diligence be undertaken. You should conduct due diligence by examining other factors to determine if the company you want to export to is the same as the listed entity. Such factors may include, but are not limited to, the company’s name, address, corporate officers, business activities, contact information, etc. You may be able to locate this information via the company’s website or through internet search results.
Can I export to a person on the Entity List if he/she is not located at the same address as listed in the EAR?
Persons on the Entity List are subject to the licensing policy and requirements defined in their specific entries on the Entity List regardless of their location. BIS works to revise and correct the entries on the Entity List on a regular basis, in order to ensure that each entry reflects the most accurate and recent information for the person named in that entry. However, if your due diligence indicates that the person to whom you wish to export, reexport, or transfer (in-country) is designated on the Entity List, then, regardless of the address listed in the Entity List entry, you should follow the licensing requirements set forth in the Entity List for that person.
Are all of the persons on the Entity List included because they violated the Export Administration Regulations (EAR) by exporting, reexporting and/or transferring items subject to the EAR?
No, not all sections of Part 744 of the EAR (which defines the criteria for possible inclusion on the Entity List) require that a person’s alleged activity involve items subject to the EAR. Section 744.11, for example, requires that the person’s activities be contrary to U.S. national security and/or foreign policy interests but does not require that the activities involve items subject to the EAR.
Is there an appeals process for listed entities? If so, how does it work?
Yes; this process was articulated in BIS’s August 2008 revision of the EAR titled “Authorization to Impose License Requirements for Exports or Reexports to Entities Acting Contrary to the National Security or Foreign Policy Interests of the United States.”
As a result of the August 2008 rule, §744.16 of the EAR defines the procedures that allow a person listed on the Entity List to submit a written request to the End-User Review Committee (ERC) that its entry be removed or modified. The request must be made in English and the party must provide a basis for the removal or modification. After the ERC has reviewed the request and reached a decision, BIS’s Deputy Assistant Secretary for Export Administration will provide the decision in a written response to the requesting party. The decision communicated to the party by the Deputy Assistant Secretary is final. BIS will publish any modifications to, or removals from, the Entity List resulting from such appeals in the Federal Register. The timeframe for appeals is 30 calendar days after the ERC’s receipt of the appeal (note that BIS conducts an internal review of all appeals prior to referral to the ERC that may add to this timeframe).
Please note that if a party on the Entity List submits an appeal, it remains subject to the Entity List's licensing requirements while the appeal is being processed. In order for a party to be released from the additional licensing requirements imposed by being on the Entity List, two actions must occur: 1) the appeal must be approved by the ERC, and 2) a formal notice of the party’s removal from the Entity List must be published in the Federal Register.
Does the Entity List include U.S. persons?
Do other U.S. Government export screening lists include U.S. persons?
Yes. See a consolidated version of all U.S. Government proscribed parties lists here.
Does BIS work with other U.S. Government agencies to administer the Entity List?
Yes. As set forth in Supplement No. 5 to Part 744 of the EAR, proposed changes to the Entity List are reviewed and approved by the interagency End-User Review Committee (ERC). Comprised of representatives from the Departments of State, Defense, and Energy, the ERC is chaired by a Commerce employee. In addition to the review of appeals, the ERC reviews the Entity List on an annual basis. Any ERC member agency may also recommend changes to the Entity List on an ad-hoc basis.
Who should I contact if I have more questions about the Entity List?
You should call the Office of Exporter Services at 202-482-4811, or e-mail them a question via the website. Pursuant to the guidance in §748.3 of the EAR, you may also submit an advisory opinion request to the End-User Review Committee Chair at ERC@bis.doc.gov, or call the Committee Chair directly at 202-482-5991.
Do the license requirements and policies of the Entity List apply to separately incorporated subsidiaries, partially owned subsidiaries, or sister companies of a listed entity?
Subsidiaries, parent companies, and sister companies are legally distinct from listed entities. Therefore, the licensing and other obligations imposed on a listed entity by virtue of its being listed do not per se apply to its subsidiaries, parent companies, sister companies, or other legally distinct affiliates that are not listed on the Entity List. If, however, such a company, or even an unaffiliated company, acts as an agent, a front, or a shell company for the listed entity in order to facilitate transactions that would not otherwise be permissible with the listed entity, then the company is likely violating, inter alia, General Prohibition 10, EAR section 764.2(b) (causing, aiding, or abetting a violation) and possibly other subsections of 764.2 as well.
Those who export, reexport, or transfer items subject to the EAR with knowledge that the items are destined to a subsidiary, sister, parent, or other affiliate of a listed entity are encouraged to take extra due diligence steps to ensure that (i) the items are not ultimately destined for the listed entity and (ii) the affiliate is a separate legal entity (as opposed to a branch or operating division of the listed entity). If one is uncertain whether a planned transaction involving an actor with some relationship to a listed entity would be affected by the obligations pertaining to the listed entity, one may seek an advisory opinion from BIS pursuant to section 748.3.
Do the license requirements and policies of the Entity List apply to the branch offices and operating divisions of a company, organization, or other entity that is a listed entity?
Branches and operating divisions of a listed entity are, by definition, part of the listed entity. They are not legally distinct entities. Therefore, with one exception pertaining to hospitals and medical centers of the Department of Atomic Energy entities in India (see FAQ #39), the licensing and other obligations imposed on a listed entity also apply to its branches and operating divisions.
Do the license requirements and policies in the Entity List also apply to the parent company if a subsidiary is a listed entity?
The Entity List license requirements do not extend to parent companies unless the applicable listing for the company so states. Exporters, reexporters, and transferors are reminded that the EAR imposes licensing requirements, such as end-user and end-use based restrictions in Part 744 of the EAR, that could apply to such companies even if they are legally separate from the listed entity.
Do the restrictions for a listed alias differ from the main entry?
No. All persons named in Entity List entries are subject to the main entry's licensing requirements and policy.
Can I use a company that is a listed entity as a freight forwarder? Can I use a listed entity as the freight carrier transporting my shipment?
The licensing policies and requirements cited on the Entity List extend to the export, reexport, or transfer (in-country) of items subject to the EAR to the persons included on the Entity List. Therefore, a transaction that involves a listed entity in which that entity is not the consignee of the goods is not a transaction subject to a license under the entity’s listing on the Entity List. However, BIS considers that a transaction involving the use of a listed entity as a freight forwarder or carrier carries a "red flag" and suggests that you exercise caution and strong oversight if you opt to engage a listed entity for these services. Although the freight forwarder or carrier may not be the end-user of the item(s) you are exporting, reexporting, or transferring (in-country), the freight forwarder/carrier will likely have access to the item(s) being exported, reexported, and/or transferred (in-country), thereby increasing the chance that the item(s) you are shipping will be diverted. Further, BIS recommends consulting the other export screening lists maintained by the U.S. Government to ensure that your use of the listed entity as a freight forwarder/carrier does not violate sanctions or restrictions administered by other U.S. Government agencies.
If a person on the Entity List enters the United States, can I do business with that person?
BIS does not prohibit the sale or transfer of commodities subject to the EAR to persons on the Entity List if those persons are in the United States. However, the release of software source code or technology in the United States to a person on the Entity List or a person employed by or representing an organization on the Entity List may require a license as a “deemed export.” Should such a person depart the United States, a license will be required for the export of commodities and software (other than software source code) consistent with the entity’s listing on the Entity List. In addition, if at the time of the domestic sale or transfer in the United States, the transferor or seller had “knowledge” that the person on the Entity List or the person employed by or representing the organization on the Entity List intended to export the item(s) out of the United States without obtaining BIS authorization, a violation of the EAR under §736.2(b)(10) (General Prohibition Ten) and §764.2(e) may occur. BIS recommends that exporters exercise a high level of due diligence prior to entering into a transaction with any person on the Entity List, regardless of where that person is located. Note also that the release outside of the United States of software source code or technology subject to the EAR to a person on the Entity List or a person employed by or representing an organization on the Entity List may require a license or other EAR authorization prior to the “deemed reexport” of that software source code or technology.
Can a U.S. company import items from listed entities?
BIS does not have jurisdiction over the import of items into the United States. However, you should consult other lists maintained by the U.S. Government, as sanctions or other restrictions may apply to import transactions with the particular listed entity or from that particular country of import. BIS publishes a consolidated version of all of the U.S. Government lists that may be relevant to your transaction.
Can a listed entity act as my company’s sales agent?
Yes, if you can ensure that the entity acting as your agent does not have access to the item(s) prohibited by the Entity List’s licensing requirements and policies. Note that BIS recommends that, as a "red flag" is associated with such transactions, you exercise caution and strong oversight if you opt to engage a sales agent that is, or is owned by, a listed entity. Note that the licensing requirements specified on the Entity List will apply if the sales agent has access to the restricted item being exported, reexported or transferred (in-country), including items that the sales agent would, in the normal course of business, use for product demonstrations. Further, you should check other lists maintained by the U.S. Government as sanctions or other restrictions may apply to transactions with the particular listed entity.
Can I purchase items from a company that is listed on the Entity List?
The Bureau of Industry & Security’s jurisdiction is limited to the export, reexport and transfer (in-country) of items subject to the Export Administration Regulations (EAR) and the placement of a person on the Entity List imposes supplemental license requirements and license application review policies on the shipment of items subject to the EAR to that person. Although a person’s inclusion on the Entity List does not create a prohibition on purchases from that person, companies contemplating such purchases should note that BIS suggests that there are red flags on the purchase of U.S.-origin items and other items subject to the EAR from Entity List persons. Companies need to exercise additional due diligence to ensure that the items desired for purchase, should they be U.S. origin or otherwise subject to the EAR, were sent to the company listed on the Entity List with the appropriate authorization. Anyone seeking to purchase items from a company listed on the Entity List should note that the Entity List is made up of entities about whom the United States Government found there to be reasonable cause to believe that the entity has been involved, is involved, or poses a significant risk of being or becoming involved in activities that are contrary to the national security or foreign policy interests of the U.S. government, and those acting on behalf of such entities.
Can a student at a university listed on the Entity List intern at my company?
A student’s enrollment at a university included on the Entity List is a “red flag” which requires exporters undertake an additional level of due diligence before proceeding with any such transaction. However, a student is not an integral part of the university (e.g., does not have fiduciary duty to from the university in the same manner that as an employee, officer, trustee, or person in a similar position in the university would) in which he/she is enrolled and therefore BIS does not include them in the licensing requirements and policy specific to the university. With the caveat of the red flag mentioned above, BIS advises exporters to treat exports, reexports, and transfers (in country) to students as shipments to the country of which the student is a citizen.
Can my company enter into collaborative research projects with universities on the Entity List?
Pursuant to §734.8 of the EAR, information resulting from fundamental research is not subject to the EAR. Therefore, given that the collaboration remains limited to fundamental research, it cannot be subject to the Entity List’s licensing requirements and policies. Any research undertaken that involves the export, reexport, or transfer of an item subject to the EAR and that does not conform to the requirements of § 734.8 of the EAR may, depending on the licensing requirements and policies specified in the Entity List entry, require a license from BIS.
Can my company hire an individual employed by a university on the Entity List while he/she continues to work at the university?
Employees of persons on the Entity List are subject to the licensing requirements and policies specific to their employer. Therefore, in the case of universities on the Entity List, employees of the universities are subject to the same licensing policy and requirements that the universities are. This also applies to officers, trustees, and other persons in a similar position with the university.
Can my company hire an individual who used to be employed by a university on the Entity List?
Yes. However, previous employment at any organization on the Entity List carries a “red flag” which requires an additional level of due diligence before proceeding with the hiring process.
Can my company donate items subject to the EAR to a university on the Entity List?
It depends on what your company wants to donate, whether BIS requires a license for the export, reexport, or transfer of that item to the university (as specified in the Entity List entry for the university), and, given that a license is required, whether BIS approves your license application.
What is the relationship of the Entity List to other lists maintained by the U.S. Government?
What does it mean when BIS incorporates entities into the Entity List by reference?
The Entity List includes restrictions on exports, reexports, or transfers (in-country) to certain persons by reference, meaning that the EAR defines the licensing policy and requirements specific to such persons but does not necessarily include them as individual entries on the Entity List. These persons are designated in or pursuant to Executive Orders or other legal mechanisms. Examples of such persons include but are not limited to Specially Designated Global Terrorists (SDGTs), as referenced in §744.12 of the EAR, and Specially Designated Terrorists (SDTs), as referenced in §744.13 of the EAR.
In incorporating the lists maintained by other U.S. Government (USG) agencies by reference, BIS is clarifying the EAR licensing requirements and policies applicable to the entities on the other USG lists. BIS recommends that exporters, reexporters, or transferors in-country consult the other lists maintained by the USG when exporting, reexporting, and/or transferring (in-country) items since, in many cases, they will not be required to also seek separate authorization from BIS. Note, however, that in some cases an EAR authorization may still be required. See §§ 744.8, 744.12, 744.13, 744.14, 744.18, and 744.22 of the EAR for additional details. In other words, EAR license requirements supplement those of the other USG agencies.
Is the Entity list the same as the Specially Designated Nationals and Blocked Persons (SDN) List?
No. The SDN List is published by the U.S. Department of the Treasury, Office of Foreign Assets Control (OFAC). The SDN List has different foreign policy objectives and legal requirements than the Entity List.
Is the Entity List the same as the Denied Persons List?
No. Although both the Denied Persons List (DPL) and the Entity List are administered by the Department of Commerce, they are separate and distinct lists. The DPL includes parties that have been denied export and reexport privileges. In contrast, the Entity List imposes specific license requirements for the export, reexport, or transfer (in-country) of specified items to the persons named on it.
Are hospitals and medical centers of Indian Department of Atomic Energy entities that are on the Entity List included in the entries for those entities?
No. Hospitals and medical centers of Indian Department of Atomic Energy (DAE) entities are not—and were never intended to be--captured by the Entity List. Consequently, hospitals and medical centers of DAE entities are not subject to the Entity List’s licensing requirements. Note that the licensing requirements found elsewhere in the EAR may be applicable to such hospitals and medical centers. Such hospitals and medical centers would also be generally subject to destination-based licensing requirements that apply to India.
Where can I locate the list of Indian nuclear reactors (including power plants) and other nuclear facilities under International Atomic Energy Agency (IAEA) safeguards?
This list is published in the IAEA’s Information Circular titled "Agreement between the Government of India and the International Atomic Energy Agency for the Application of Safeguards to Civilian Nuclear Facilities" (INFCIRC/754), which is available at the IAEA’s website (www.iaea.org). In this document there is an annex (the "List of Facilities Subject to Safeguards Under the Agreement Between the Government of India and The International Atomic Energy Agency for the Application of Safeguards to Civilian Nuclear Facilities") that contains the list of nuclear reactors (including power plants) and fuel fabrication facilities under IAEA safeguards. Please note that this list is updated regularly with the publication of documents titled "Agreement between the Government of India and the International Atomic Energy Agency for the Application of Safeguards to Civilian Nuclear Facilities: Addition to the List of Facilities Subject to Safeguards Under the Agreement" and that these updates are numbered as follows: INFCIRC/754/Add.1, INFCIRC/754/Add.2, INFCIRC/754/Add.3, etc. BIS recommends that exporters check the most recent version of the list on a regular basis by searching the IAEA’s website for "INFCIRC/754". As of November 18, 2013, the most recent version of this document is INFCIRC/754/Add.4.
What is the VEU Program?
What is the background and purpose of the VEU Program?
Where can I find the list of qualified VEUs?
Who may apply for the VEU program?
Can anything be shipped under Authorization VEU?
What items may not be shipped under Authorization VEU?
What is the difference between a “Validated End-User” and an “Eligible Destination”?
Is the VEU program right for my organization?
Why are VEU eligible destinations restricted to China and India?
How do organizations apply for VEU?
What are the requirements of the VEU program?
What are the compliance requirements of the VEU program?
To what address should VEU applications be submitted?
How long does qualification under Authorization VEU last?
Do qualified VEUs have to report material changes to BIS? What happens when they do?
Can a qualified VEU request changes to its VEU authorization?
How often is the list of qualified VEUs updated?
How often does the U.S. Government interact with participants in the VEU program?
Can Authorization VEU only be used to export items from the United States?
Can I use Authorization VEU to export to an entity whose name is on the VEU list if it is not located at the same address(es) as listed in the EAR?
If an item subject to the EAR has been legally shipped to a VEU-eligible country, can it be transferred under authorization VEU within that country to a different eligible destination?
Yes. Authorization VEU is available for export from the United States, reexport, and transfer (in-country) of the items specified for each VEU in the list of “Eligible Items (by ECCN)” found in Supplement No. 8 to Part 748 of the EAR. If the item was legally exported or reexported to an eligible destination and is an “eligible item” for another VEU, it may be transferred within the same country to the other VEU’s eligible facilities under Authorization VEU.
Can I ship items not listed under “Eligible Items” in Supplement No. 7 to Part 748 to a VEU?
What happens if the EAR requirements on an item that previously was authorized under Authorization VEU are lessened or eliminated?
How is the VEU program administered?
Can an applicant ask the ERC to reconsider a decision with respect to the prospective VEU at issue? If so, how?
Does the U.S. Government work with the governments of VEU-eligible countries (i.e., China and India) to ensure that those governments support the program?