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.