Federal Register: July 30, 2010 (Volume 75, Number 146)
DOCID: fr30jy10-5 FR Doc 2010-18733
DEPARTMENT OF COMMERCE
Industry and Security Bureau
CFR Citation: 15 CFR Parts 732, 736, 740, and 748
Docket ID: [Docket No. 080215200-91321-01]
RIN ID: RIN 0694-AE27
NOTICE: RULES
DOCID: fr30jy10-5
DOCUMENT ACTION: Final rule.
SUBJECT CATEGORY:
Foreign Direct Products of U.S. Technology
DATES: Effective Date: This rule is effective July 30, 2010.
DOCUMENT SUMMARY:
The Bureau of Industry and Security (BIS) clarifies the scope of the
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``direct product rule'' set forth in the Export Administration
Regulations (EAR). Under the EAR's ``direct product rule,'' foreign
made items that are located outside of the United States; subject to
national security controls under the EAR; the direct product of U.S.
origin software or technology that requires a written assurance as a
supporting document for a license or as a precondition for use of
License Exception Technology and Software, Restricted (TSR); and are
being reexported to a destination in a country of national security
concern or a terrorist supporting country, are subject to the EAR and
require an export license or license exception. This rule also makes
parallel revisions or clarifications to written assurances required
under License Exception TSR (Technology and Software Restricted),
information required on the license application for national security
controlled technology, and the instructional steps in the EAR that
provide guidance on how to apply the direct product rule.
SUMMARY:
Foreign Direct Products of U.S. Technology
SUPPLEMENTAL INFORMATION
Direct Product Rule
Items subject to the Export Administration Regulations (EAR)
include items located in the United States, wherever they are produced;
items of ``U.S. origin,'' that is, those produced in the United States,
wherever they are located; and certain foreign produced items,
including items subject to the EAR only on the basis of the ``direct
product rule.'' The ``direct product rule'' is found in General
Prohibition No. 3, section 736.2(b)(3) of the EAR, and in section
734.3(a)(4). Under the ``direct product rule'' as amended, foreignmade
items are subject to the EAR and require an export license or license exception, if such items are:
FOR FURTHER INFORMATION CONTACT
Sharron Cook, Office of Exporter Services, Bureau of Industry and Security, U.S. Department of Commerce, at (202) 4822440 or by email: scook@bis.doc.gov.
Comments regarding the collections of information associated with this rule, including suggestions for reducing the burden, should be sent to OMB Desk Officer, New Executive Office Building, Washington, DC 20503, Attention: Jasmeet Seehra, or by email to Jasmeet_K._ Seehra@omb.eop.gov, or by fax to (202) 3957285; and to the Office of Administration, Bureau of Industry and Security, Department of Commerce, 14th and Pennsylvania Avenue, NW., Room 6883, Washington, DC 20230.