Applied research means a systemic study to gain knowledge or understanding necessary to determine the means by which a recognized and specific need may be met. It is a systematic application of knowledge toward the production of useful materials, devices, and systems or methods, including design, development, and improvement of prototypes and new processes to meet specific requirements. 22 CFR 120.43(i)
Basic research means a systemic study directed toward greater knowledge or understanding of the fundamental aspects of phenomena and observable facts without specific applications towards processes or products in mind. It does not include applied research. 22 CFR 120.43(h)
An agency of the Department of Commerce established by the Export Administration Act (EAA) that is responsible for administering and enforcing export controls on "dual-use" items. BIS administers the EAA by developing export control policies, issuing export licenses, prosecuting violators, and implementing the EAA's antiboycott provisions. BIS also enhances the defense industrial base, assists U.S. defense firms, and helps other countries develop export control systems.
CCL: Commerce Control List- A list of all the ECCNs and the description of what each ECCN controls. The CCL is maintained by the Bureau of Industry and Security. The Commerce Control List (CCL) is found in Supplement 1 to Part 774 of the Export Administration Regulations (EAR). [NOTE: EAR99 items are not on the CCL. In other words, items are EAR99 when they are NOT described in the CCL.]
(a) Commodity means any article, material, or supply, except technology/technical data or software.
(b) An end-item is a system, equipment, or an assembled article ready for its intended use. Only ammunition or fuel or other energy source is required to place it in an operating state.
(c) A component is an item that is useful only when used in conjunction with an end-item:
(1) A major component includes any assembled element that forms a portion of an end-item without which the end-item is inoperable; and
(2) A minor component includes any assembled element of a major component.
(d) Accessories and attachments are associated articles for any component, equipment, system, or end-item, and which are not necessary for its operation, but which enhance its usefulness or effectiveness.
(e) A part is any single unassembled element of a major or a minor component, accessory, or attachment which is not normally subject to disassembly without the destruction or the impairment of designed use.
(f) Firmware and any related unique support tools (such as computers, linkers, editors, test case generators, diagnostic checkers, library of functions, and system test diagnostics) directly related to equipment or systems covered under any category of the U.S. Munitions List are considered as part of the end-item or component. Firmware includes but is not limited to circuits into which software has been programmed.
(g) Software includes but is not limited to the system functional design, logic flow, algorithms, application programs, operating systems, and support software for design, implementation, test, operation, diagnosis, and repair. A person who intends to export only software should, unless it is specifically enumerated in § 121.1 of this subchapter (e.g., USML Category XIII(b)), apply for a technical data license pursuant to part 125 of this subchapter.
(h) A system is a combination of parts, components, accessories, attachments, firmware, software, equipment, or end-items that operate together to perform a function.
Note 1 to paragraph (h):
The industrial standards established by the International Council on Systems Engineering (INCOSE), National Aeronautics and Space Administration (NASA), and International Organization for Standardization (ISO) provide examples for when commodities and software operate together to perform a function as a system.
(i) Equipment is a combination of parts, components, accessories, attachments, firmware, or software that operate together to perform a function of, as, or for an end-item or system. Equipment may be a subset of an end-item based on the characteristics of the equipment. Equipment that meets the definition of an end-item in paragraph (b) of this section is an end-item. Equipment that does not meet the definition of an end-item is a component, accessory, attachment, firmware, or software.
The obligation to obtain an export license from BIS before "releasing" controlled technology to a foreign person is informally referred to as a deemed export. Releases of controlled technology to foreign persons in the U.S. are "deemed" to be an export to the person's country or countries of nationality. "Deemed" exports are described in 734.13(b) of the EAR. Typical organizations using "deemed" export licenses include universities, high technology research and development institutions, bio-chemical firms, as well as the medical and computer sectors. Note that those organizations having persons with permanent residence status, U.S. citizenship, and persons granted status as "protected individuals" are exempt from the "deemed" export rule.BIS Deemed Export FAQ
The furnishing of assistance (including training) to foreign persons, whether in the United States or abroad in the design, development, engineering, manufacture, production, assembly, testing, repair, maintenance, modification, operation, demilitarization, destruction, processing or use of defense articles. (See 120.32 of the ITAR)
"Development". (General Technology Note)--"Development" is related to all stages prior to serial production, such as: design, design research, design analyses, design concepts, assembly and testing of prototypes, pilot production schemes, design data, process of transforming design data into a product, configuration design, integration design, layouts. (http://www.bis.doc.gov/index.php/regulations/export-administration-regulations-ear)
A list of persons whose export privileges are currently denied, in whole or in part. (Formerly known as the "Table of Denial Orders")
The office in the Department of State (DOS) that administers licenses for defense services and defense (munitions) articles. (Formerly known as the Office of Defense Trade Controls)
Items that have both commercial and military or proliferation applications. While this term is used informally to describe items that are subject to the EAR, purely commercial items and certain munitions items listed on the Wassenaar Arrangement Munitions List (WAML) or the Missile Technology Control Regime Annex are also subject to the EAR (see § 734.2(a) of the EAR).
The EAA is the statute that authorizes the export control and antiboycott compliance activities of the Department of Commerce (DOC). The EAA is the basic authority for BIS to issue regulations, and to administer and enforce export controls for national security, foreign policy and short supply.
Regulations set forth in parts 730-774, of Title 15 of the Code of Federal Regulations(CFR), and issued by the Department of Commerce to implement the Export Administration Act (EAA) and other statutory requirements. The EAR is amended by rules published in the Federal Register.
Individual categories of items on the Commerce Control List (CCL) are identified by an Export Control Classification Number (ECCN).
A detailed description of how the Foreign Person intends to use the commodities being exported.
The Foreign person that receives and ultimately uses the exported commodity.
An End-Use Check (EUC) is a physical verification on location with a party of the transaction to determine if the party is a reliable recipient of U.S. goods and that items are or will be used in accordance with the EAR. There are two types of End-Use Check: Pre-License Checks (PLCs) and Post-Shipment Verifications (PSVs).
BIS selectively conducts end-use checks on certain dual-use and munitions exports to acheive the following:
– Monitor license condition compliance.
– Monitor compliance of non-licensed transactions.
– Confirm the end-use.
– Determine if the company is a reliable end-user.
– Discover more information about the parties.
Transfer of export controlled information, commodities or software either inside the U.S. or outside the U.S. States.
U.S. government regulations that govern the export of strategic technologies, equipment, hardware, software or providing technical assistance to Foreign Persons.
Any natural person who is not a lawful permanent resident or who is not a protected individual (granted asylum, refugee or amnesty status);
A foreign natural person is also referred to as a Foreign National.
It also means any foreign corporation, business association, partnership, trust, society or any other entity or group not incorporated or organized to do business in the U.S.Foreign governments and international organizations. (See part 120.63 of the ITAR.)
A Foreign Person also includes any U.S. Person representing a foreign entity.
The "Fundamental Research Exemption (FRE)," as defined in the export regulations and in NSDD189, is defined to mean basic and applied research in science and engineering where the resulting information is ordinarily published and shared broadly within the scientific community, as distinguished from research the results of which are restricted for proprietary reasons or specific U.S. Government access and dissemination controls. University research will not be considered fundamental research if: The University or its researchers accept other restrictions on publication of scientific and technical information resulting from the project or activity, or the research is funded by the U.S. Government and specific access and dissemination controls protecting information resulting from the research are applicable.
The person that acts as an agent for a principal party in interest for the purpose of effecting delivery of items to the ultimate consignee. The intermediate consignee may be a bank, forwarding agent, or other person who acts as an agent for a principal party in interest.
ITAR: International Traffic in Arms Regulations-Governs the export and temporary import of defense articles and services under State Department jurisdiction. Regulations set forth in Parts 120-130 of Title 22 of the Code of Federal Regulations (CFR) and issued by the Department of State to implement the Arms Export Control Act (AECA) and other statutory requirements. The ITAR is amended by rules published in the Federal Register.
A License is a document issued by the U.S. government which permits the Export, or temporary import, of specified Defense Articles or Technical Data or the rendering of Defense Services controlled under U.S. Export laws and regulations.
A symbol entered on the Shipper's Export Declaration (SED), certifying that no BIS export license is required.
OFAC: Office of Foreign Assets Control- The office at the Department of the Treasury that administers and enforces economic and trade sanctions against targeted foreign countries, terrorism sponsoring organizations and international narcotics traffickers based on U.S. foreign policy and national security goals. OFAC blocks assets of foreign countries subject to economic sanctions, controls participation by U.S. persons, including foreign subsidiaries, in transactions with specific countries or nationals of such countries, and administers embargoes on certain countries or areas of countries.
Means all production stages, such as: product engineering, manufacture, integration, assembly (mounting), inspection, testing, quality assurance.
Information, which is published and generally accessible or available to the public.
§ 734.15 Release.
(a) Except as set forth in § 734.18, "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 or reexport such "technology" or "software" to that person.
[81 FR 35604, June 3, 2016]
As applied to "technology" or "software", refers to only that portion of "technology" or "software" which is peculiarly responsible for achieving or exceeding the controlled performance levels, characteristics or functions. Such "required""technology" or "software" may be shared by different products. For example, assume products "X" is controlled if it operates at or above 400 MHz and is not controlled if it operates below 400 MHz. If production technologies "A", "B", and "C" allow production at no more than 399 MHz, then technologies "A", "B", and "C" are not "required" to produce the controlled product "X". If technologies "A", "B", "C", "D," and "E" are used together, a manufacturer can produce product "X" that operates at or above 400 MHz. In this example, technologies "D" and "E" are "required" to make the controlled product and are themselves controlled under the General Technology Note. (See General Technology Note)
Specially designated nationals are identified by the Secretary of the Treasury under regulations issued by the Office of Foreign Assets Control (OFAC). Generally, the U.S. embargo on a country extends to SDNs of that country, wherever they may be located. You must consult OFAC before engaging in financial transactions with an SDN.
A specially designated terrorist is identified in regulations maintained by the Treasury Department's Office of Foreign Assets Control (OFAC). Under OFAC administered regulations, U.S. persons are prohibited from engaging in most transactions with SDTs. Additionally, the Export Administration Regulations impose export and reexport controls on SDTs.
A shipping document used by the Bureau of Census for compiling U.S. trade statistics and by the Bureau of Industry and Security (BIS) in administering and enforcing the Export Administration Regulations.
Commodities or software that either as a result of development, have properties peculiarly responsible for achieving or exceeding the controlled performance levels, characteristics, or functions described in the export regulations (ITAR or EAR); or are parts, components, accessories, attachments, or software for use in or with export controlled articles and are not excluded for one or more of the reasons listed in the regulations (See § 120.41(b). Source: § 120.41, Specially Designed.
The furnishing of assistance (including training) to Foreign Persons, in the United States or abroad in the design, development, engineering, manufacture, production, assembly, testing, repair, maintenance, modification, operation, demilitarization, destruction, processing or use of defense articles.
An agreement (e.g., contract), approved by DDTC, for the performance of a defense service(s) or the disclosure of technical data, as opposed to an agreement granting a right or license to manufacture defense articles. Assembly of defense articles is included under this section, provided production rights or manufacturing know-how are not conveyed. Should such rights be transferred, 120.57 paragraph (d) of this section is applicable
Information other than software which is required for the design, development, production, manufacture, assembly, operation, repair, testing, maintenance or modification of defense articles. This includes information in the form of blueprints, drawings, photographs, plans, documentation, instructions, models, formulae, tables, engineering designs and specifications, manuals and instructions written or recorded on other media or devices such as disk, tape, or read-only memories . (See part 120.33 of the ITAR)
Specific information necessary for the "development", "production", or "use" of a product. The information takes the form of "technical data" or "technical assistance". Controlled "technology" is defined in the General Technology Note and in the Commerce Control List.
General Technology Note.The export of "technology" that is "required" for the "development", "production", or "use" of items on the Commerce Control List is controlled according to the provisions in each Category.
"Technology" "required" for the "development", "production", or "use" of a controlled product remains controlled even when applicable to a product controlled at a lower level.
The principal party in interest located abroad who receives the exported or reexported items. The ultimate consignee is not a forwarding agent or other intermediary, but may be the end-user.
Operation, installation (including on-site installation), maintenance (checking), repair, overhaul and refurbishing. See CFR 772
A person who is a U.S. Citizen; or
Lawful permanent resident (green card holder); or
Protected individual (granted asylum, refugee or amnesty status).
It also means any corporation, business association, partnership, etc., that is incorporated to do business in the U.S. (See Part 120.62 of the ITAR.)
USML: United States Munitions List- The list of defense articles, technology and services under the export and temporary import jurisdiction of the State Department. The USML is found in Part 121 of the ITAR. The USML is amended by rules published in the Federal Register.
WA: Wassenaar Arrangement - The Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies is a multilateral regime that contributes to regional and international security by promoting transparency and greater responsibility in international transfers of conventional arms and dual-use goods and technologies.