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Export Encryption Rule Revisions

The Obama Administration has pledged to conduct an extensive review of our current export control system and to implement changes as necessary to streamline the entire export process. One of the first changes came to light in June. It has just become a little easier to export certain electronic devices found on the mass market that contain encryption or are capable of generating encryption.
 
Assistant Secretary of Commerce for Export Administration Kevin Wolf went on the record saying, "This revised rule enhances our national security and cuts red tape by eliminating the review of readily available encryption items like cell phones and household appliances and allows the government to focus its resources on more sensitive encryption items."
 
With this change, the government will no longer mandate a 30-day technical review period for most mass market items. Rather, the government will now allow exporters, as well as manufacturers, to self-certify products, which would allow those exporters and manufacturers to export those products without a license provided they register with the Bureau of Industry and Security (BIS).
 
The registration process is a one-time event that requires exporters and manufacturers to submit information pertaining to their company and the type of business they are engaged in.
 
Upon completion of the registration process, BIS will provide registrants with a registration number that will allow them to self-certify and export certain mass market items under license exception ENC.
 
As part of the new process, those companies that self-certify will be required to semi-annually provide a full report to BIS and the National Security Agency (NSA) pertaining to all of their exports under license exception ENC. The report must contain the following information:

  • the name and address of the distributor, reseller or individual consumer,

  • the item exported,

  • the quantity of the item exported, and

  • the end-user's name and address, if collected.


Before conducting your next export transaction that involves electronic devices with encryption technology, remember that the rules have changed; double check before you ship! ( linda )10 Jan,2012

Other News:
Export Encryption Rule Revisions
Alternatives to FOB
Time is Money: Analyzing the Movement of International Transactions
How to Become an Importer: An Introduction to Managing the Import Supply Chain
Visitor Control Program Tips for Exporters
Export Enforcement Coordination Center
The US Importer Security Filing and the EU Entry Summary Declaration
International Letters of Credit: Best Practices for Exporters—Part 1