Regulatory Basics

Deemed Exports

 Deemed Exports mean an exchange of information to a Foreign National relating to technology or source code. The term is used by the Department of Commerce and is comparable to the term export under the Department of State regulations. For example, if a Computer Programmer is sharing information about how they solved a software glitch with a friend from India that is also a computer programmer, while having lunch in New York, the Department of Commerce may consider that a deemed export — and subject to the Export Arms Regulations (EAR).

The DoC regulates commercial and dual use items, technology, and activities as defined by the Commerce Control List (CCL) in the EAR. The CCL is located in Part 738 of the EAR. Definitions for terms related to the EAR are located in Part 772 of the EAR. This includes commodities, equipment, and parts used in both commercial or civil and military applications. Only the Export Compliance Person in TigerSwan has the authorization to determine what is considered dual use and to correctly classify items as controlled by either the EAR or the ITAR.

The Department of Commerce or U.S. Bureau of Industry and Security (BIS) provides free online training to assist individuals in becoming more familiar with the regulatory requirements and how to navigate the EAR. Those organizations that work with a majority of EAR controlled items would benefit greatly from having employees take this training. In addition, the BIS provides guidance on the development of a compliance program that meets the standards of acceptability for all the US Government agencies. When an organization is first getting started as a defense contractor or manufacturer/supplier, it would behoove that organization to adopt the program set forth by the BIS.