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(a) Calculation of the value of controlled U.S.-origin content in foreign-made items is to be performed for the purposes of § 734.4 of this part, to determine whether the percentage of U.S.-origin content is de minimis. (Note that you do not need to make these calculations if the foreign made item does not require a license to the destination in question.) Use the following guidelines to perform such calculations:
(1) U.S.-origin controlled content.
(a) General. This supplement is included in the EAR to assist exporters, reexporters, and transferors in determining whether the items being exported, reexported, or transferred (in-country) are subject to the EAR based on one or more of the Foreign Direct Product (FDP) rules under § 734.9. The model certificate provided by BIS in supplement no.
The following activities are not deemed reexports (see “deemed reexport” definition in § 734.14(b)):
(a) Authorized Release of “technology” or source code.
(a) To the extent an authorization would be required to transfer “technology” or “software,” a comparable authorization is required to transfer “access information” if done with “knowledge” that such transfer would result in the release of such “technology” or “software” without a required authorization.
Note 1 to paragraph (a):
For purposes of this section, a release of “software” includes source code and object code.
(b) Software keys, also called software license keys, that allow users the ability to use the “software” or hardware, or software keys that renew existing “software” or hardwa
(a) For purposes of the EAR, the Export of encryption source code and object code “software” means:
(1) An actual shipment, transfer, or transmission out of the United States (see also paragraph (b) of this section); or
(2) A transfer of such “software” in the United States to an embassy or affiliate of a foreign country.
(b) The export of encryption source code and object code “software” controlled for “EI” reasons under ECCN 5D002 on the Commerce Control List (see supplement no.
Except as set forth in § 734.18(a)(3), a Transfer (in-country) is a change in end use or end user of an item within the same foreign country. Transfer (in-country) is synonymous with In-country transfer.
[81 FR 35604, June 3, 2016]
(a) Except as set forth in §§ 734.18 and 734.19, “technology” and “software” are “released” through:
(1) Visual or other inspection by a foreign person of items that reveals “technology” or source code subject to the EAR to a foreign person; or
(2) Oral or written exchanges with a foreign person of “technology” or source code in the United States or abroad.
(b) Any act causing the “release” of “technology” or “software,” through use of “access information” or otherwise, to yourself or another person requires an authorization to the same extent an authorization would be required to export
(a) Except as set forth in §§ 734.18 and 734.20, Reexport means:
(1) An actual shipment or transmission of an item subject to the EAR from one foreign country to another foreign country, including the sending or taking of an item to or from such countries in any manner;
(2) Releasing or otherwise transferring “technology” or source code subject to the EAR to a foreign person of a country other than the foreign country where the release or transfer takes place (a deemed reexport);
(3) Transferring by a person outside the United States of registration, control, or ownership of:
(i) A spacecr
(a) Except as set forth in § 734.17 or § 734.18, Export means:
(1) An actual shipment or transmission out of the United States, including the sending or taking of an item out of the United States, in any manner;
(2) Releasing or otherwise transferring “technology” or source code (but not object code) to a foreign person in the United States (a “deemed export”);
(3) Transferring by a person in the United States of registration, control, or ownership of:
(i) A spacecraft subject to the EAR that is not eligible for export under License Exception STA (i.e., spacecraft that provide space-based
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