Does the Entity List FDP rule apply to non-U.S. companies?
Yes. The scope of the rule applies to non-U.S. companies only. The rule imposes license requirements on any foreign-produced items that are subject to the FDP rule.
U.S. items overseas, and items produced overseas using U.S.-origin components or made using U.S. technology, may still be subject to the Export Administration Regulations. Certain activities of U.S. persons overseas may also be subject to these regulations.
What changes did the August 2020 FDP rule (85 Fed. Reg. 51596, effective Aug. 17, 2020) and the February 2022 rule (87 Fed. Reg. 6022, Feb. 3, 2022) make to EAR § 736.2(b)(3) regarding General Prohibition Three license requirements?
The license requirement referenced in footnote 1 to Supplement No. 4 to part 744 of the EAR was added in the August 2020 FDP rule. The subsequent February 2022 rule moved the license requirement to § 744.11(a)(2) and consolidated the provisions for Foreign Direct Product in §734.9 (Foreign-Direct Product (FDP) Rules.
What is a reexport?
Shipments or transfers of items (including technology and source code) subject to the Export Administration Regulations (EAR) from one foreign country to another foreign country or foreign national.
Steps for Preparing Export License Applications to Foreign Nationals
Use these guidelines to prepare a Export License Application to be reviewed by BIS when your exporting situation falls under the EAR’s deemed export rule and involves foreign nationals.