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EAR/ITAR Definitions Rules

On June 3rd, the State and Commerce Departments released final rules revising export related definitions in the EAR and ITAR.  Definitions of export and re-export were harmonized across the two sets of regulations to ease the burden on exporters.  Additionally, definitions of release and retransfer were added to the ITAR, the latter of which is akin to EAR’s Transfer (in-country) definitionAlso added to the EAR was a definition of release, describing the process of transferring technical data to a foreign national. Changes to definitions were predominantly minor changes, to align wording between the two regulations.

 

BIS also provided guidance regarding cloud storage in the final ruleThe use of cloud storage is not considered an export if technology/software is unclassified, stored using end-to-end encryption (meaning encrypted from originator to recipient without any third party having means of decrypting), secured using cryptographic modules compliant with FIPS 140-2 or more effective cryptographic means, and not intentionally stored in a country from Country Group D:5 or Russia.  The State Department will be releasing an opinion regarding cloud computing in a separate rule.

 

To review the final rules click here:

 

http://www.wilmarth-associates.com/publications/export-control-reform.html

 

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