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BIS Releases Updates To Encryption
Export Controls

December 9, 2004

Effective December 9, 2004, the Export Administration Regulations (EAR) have been amended in order to streamline and strengthen export and reexport controls on encryption items.  

  1. All encryption items are eligible for 30 day review based on a more clearly articulated set of eligibility criteria.

  2. The European Union "license-free zone" has been updated.   BIS has expanded the list of countries to which certain encryption items may be sent immediately (i.e., without a 30 day waiting period) once a review request is submitted to the U.S. Government. See Supplement No. 3 to part 740 of the EAR.

  3. References to "retail" have been removed. To alleviate confusion with respect to the treatment of "mass market" encryption products under §742.15(b)(2) of the EAR, BIS has removed the word "retail" from License Exception ENC (except from a "grandfathering" paragraph that allows the continued export and reexport of encryption commodities and software previously classified as "retail" without additional review).
Links to these and other changes in the encryption control regulations are available at: Federal Register, Vol 69 No. 236, Dec. 9, 2004.

Please contact George R. Tuttle, III at (415) 288-0428 or via email at, if you would like additional information on how these changes may affect your company or exports of encryption products and software.

George R. Tuttle, III is an attorney with the Law Offices of George R. Tuttle in San Francisco. The information in this article is general in nature and is not intended to constitute legal advice or to create an attorney-client relationship with respect to any event or occurrence, and may not be considered as such.

Copyright 2005 by Tuttle Law Offices.

All rights reserved. Information has been obtained from sources believed to be reliable. However, because of the possibility of human or mechanical error by our offices or by others, we do not guarantee the accuracy, adequacy, or completeness of any information and are not responsible for any errors, omissions, or for the results obtained from the use of such information.


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