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De Minimis

For items under the U.S. Commerce Department jurisdiction, the EAR has a set of rules for determining if a foreign made commodity/software/technology incorporates enough U.S. origin controlled content to still be under EAR jurisdiction. For a non- 600 series/9×515/”see through carve out” (see below) item going to Country Group E:1 and for items classified as ECCN EAR99 being exported to North Korea or Syria (except medicine and food), the item is subject to the EAR if the U.S. content is more than 10%. If the controlled U.S. content exceeds 25% in any of the following scenarios, the foreign item is subject to the EAR: 600 series/9×515 items (except .y) or “see through carve out” items to all countries except to Country Group D:5; non-600 series/9×515 and non-“see through carve out” items to all countries except to Country Group E:1; and for EAR99 items being exported to Cuba and the Crimea region of Ukraine (except food/medicine/certain software).

 

The following non-US made items do not have de minimis restrictions: EAR99 items to all locations except as noted above; items only controlled for AT reasons, except to Country Group E:1 and E:2; and .y items in 600 series/9×515 except to China, and Country Groups E:1 and E:2.  Country Group E:1 countries are Iran, North Korea, Sudan, and Syria. Country Group E:2 country is Cuba.

 

The “see through carve out” rule is a rule described in the USML that states that if an item subject to the USML is integrated into an item subject to the EAR prior to export/reexport/transfer, and is considered an integral part of the item, they remain ITAR controlled. These items are always considered controlled content in terms of the de minimis rule.

 

There are several exceptions to the de minimis rule, both destination and content based, so please contact our office if you have questions as to whether your product is subject to the EAR.

 

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