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License Exception TMP- Exhibition and Demonstration- An Overview

License Exception TMP §740.9(a)(5) allows for exports, re-exports, and transfers (in-country) of items for exhibition or demonstration.  License Exception TMP requires the exporter to maintain ownership of the items while they are abroad and for the exporter, an employee of the exporter, or the exporter’s designated sales representative to retain “effective control” over the items. “Effective Control” is achieved by either retaining physical possession of the item or securing the item in such an environment as a hotel safe, bonded warehouse, or locked or guarded exhibition facility.

 

When License Exception TMP §740.9(a)(5) is used to export the item, it may not be used when abroad for more than the minimum extent required for effective demonstration. The commodities and software may not be exhibited or demonstrated at any one site for longer than 120 days after installation, unless approved by DOC-BIS. Also, before or after an exhibition or demonstration, pending movement to another site, return to the United States, or the foreign re-exporter, the items may be placed in a bonded warehouse or a storage facility provided that the exporter retains “effective control” over their disposition. Export documentation must show the exporter as ultimate consignee, in care of the person who will have control over the items or software abroad.

 

To determine applicability of License Exception TMP §740.9(a)(5)for an export, it is important to review the exclusions and specific ECCN entry for an item for availability of the use of License Exception TMP.

 

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