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BIS Updates Guidance on Deemed Reexports to Reflect Export Control Reform Changes

Thursday, November 07, 2013
Sandler, Travis & Rosenberg Trade Report

The Bureau of Industry and Security has issued an updated guidance document on the release outside the U.S. to dual and third-country nationals (deemed reexports) of technology, technical data and source code controlled under the Export Administration Regulations. BIS states that this update is needed to harmonize the treatment of such deemed reexports in the EAR and the International Traffic in Arms Regulations given the ongoing transfer to the EAR of military items no longer identified on the ITAR’s U.S. Munitions List.

Under the revised policy, either the current BIS deemed reexport guidance or the comparable ITAR rules or State Department guidance may be used for determining when an individual BIS license or other EAR authorization, such as the application of a license exception, is needed for a deemed reexport. That is, if an additional authorization would not be required under the ITAR or State Department guidance to release ITAR-controlled technical data (which includes software) outside the U.S. to a dual or third-country national, then an additional EAR authorization is not required to release 600 series or any other technology or source code subject to the EAR to the same dual or third-country national in the same situation.

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