You may be a Deemed Exporter

Posted on LinkedIn today:

Engineering firms, software companies, researchers, manufacturers, and universities need to be aware of the “deemed export” rules. They may be engaged in export transactions without even knowing it.

From the BIS website:

An export of technology or source code (except encryption source code) is “deemed” to take place when it is released to a foreign national within the United States. See ยง734.13(b) of the Export Administration Regulations (EAR).

Technology is “released” for export when it is available to foreign nationals for visual inspection (such as reading technical specifications, plans, blueprints, etc.).

Per Part 772 of the EAR, technology is specific information necessary for the development, production, or use of a product.

Assuming that EAR99 does not apply and no license exception is available, U.S. entities must apply for an export license when: (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.