Background

The Bureau of Industry and Security has issued an interim final rule making certain items subject to the Export Administration Regulations and imposing a license requirement for the export and reexport of those items to all destinations except Canada. This rule is effective as of Jan. 6 and comments on it are due by March 6.

This rule classifies software specially designed for training a deep convolutional neural network to automate the analysis of geospatial imagery and point clouds under ECCN 0D521 following a determination that such software may provide a significant military or intelligence advantage to the U.S. or because foreign policy reasons justify export control. As a result, this item is controlled for regional stability Column 1 reasons with a case-by-case license application review policy. The only license exception available for this item at this time is for exports, reexports, and transfers (in-country) made by or consigned to a department or agency of the U.S. government (license exception GOV).

BIS notes that the 0Y521 series of ECCNs is a temporary holding classification that only lasts for one year unless it is extended and the U.S. government submits a proposal for export control to the relevant multilateral regime(s). Before this classification expires an 0Y521 item may be reclassified and moved to a different ECCN if appropriate. If the item has not been moved to a more permanent ECCN and the 0Y521 classification expires, the item is designated EAR99, meaning it is subject to the EAR but not specified on the Commerce Control List.

For more information, please contact export attorney Kristine Pirnia.

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