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($      !T!   _!%!%      o[,XF` hp x (#%'0*,.8135@8:<H?AXo   F 1RegulationsissuedbythePatentandTrademark  Officein37CFRpart5providefortheexporttoa q foreigncountryofunclassifiedtechnicaldatainthe 2 formofapatentapplicationoranamendment,modifi C cation,orsupplementtheretoordivisionthereof.!& ~%! h (;3$2#  0  .3  0  (O;$0  2#  a  .3  0` (#(# d'dxd'dxd  !T!   _      o[,XF` hp x (#%'0*,.8135@8:<H?AXo!%!%Ԁ2Exportersshouldnotethattheseprovisionsdo  notapplytosoftwarecontrolledundertheInterna q tionalTrafficinArmsRegulations(e.g.,certainen 2 cryptionsoftware).(b$0  0` (#(#2#   .3  0 ` (#` (#HW 7w}215Right-Aligned Paragraph NumbersI.A.1.a.(1)(a)i)a) 7w}216Right-Aligned Paragraph NumbersI.A.1.a.(1)(a)i)a)3|x6X9`("Courier NewTTegularX6X@@( T$  lT8   (xir$0  0` (#(#0 ` (#` (#2#(  0  )3  0 (# (#($0  0` (#(#0 ` (#` (#0 (# (#2#(  a  )3  0h(#(#(F$0  0` (#(#0 ` (#` (#0 (# (#0h(#(#2#(   )3  0h(#h(#($0  0` (#(#0 ` (#` (#0 (# (#0h(#(#0h(#h(#2#  0  )3  0(#(# iO;Z  0 W'   _+%%%!%+x%+%ScopeoftheExportAdministrationRegulations@666(# x+xPart734page  1  #+x x#+ON  0Times New Roman BoldAdobe PDF 0  W'   _ %%%!% x% %ScopeoftheExportAdministrationRegulations@*#! x7##!% ~%!V#!%!% ~ x!Ԉ((#SupplementNo.1toPart # %% x# x% %734#! x#2page  1  #!% ~%!#   W'   _ %%%!% x% %ScopeoftheExportAdministrationRegulations((#SupplementNo.2toPart# %% xV# x% % 734#! x7#2page  1  #!% ~%!#U(hH  Z 6Times New Roman Regular({$0  0` (#(#0 ` (#` (#0 (# (#0h(#(#0h(#h(#0(#(#2#  a  )3  0p(#(#(F$0  0` (#(#0 ` (#` (#0 (# (#0h(#(#0h(#h(#0(#(#0p(#(#2#     )3  0p(#p(# 3#37=CIQYag1.a.i.(1)(a)(i)1)a)4i)     x  -  6 W)   _!%!% ExportAdministrationRegulations@*;(#V!October15,2009#!V##!% ~%!7#!%!% ~ (O$<<<<)!dxdx\  `&Times New Roman  d>>>>)!dxdxP Pd@@@@)!dxdx dBBBB)!dxdx d>>)! dxdxEEEE)!dxdx&0 d dGGGG)!dxdx&P d dIIII)!dxdx&p d PdKKKK)!dxdx&p Pd dMNMN)!dxdx3+0 d d d3+0 d d d*+ (_2623  ..*D+D (_25   ," <DL,23  ..," <DL,   *5+5 (_24  ) <DL)23  ..) <DL)  *2+2 (_23 ` &<<DL&23  ..&<<DL& ` */+/ (_22  #DL#23  ..#DL#  *,+, (_21   DL 23  .. 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L  *>> (_17  2( 4 <DL223  Ԁ2( 4 <DL2  *DD (_16   ," <DL,23  Ԁ," <DL,   *55 (_15  ) <DL)23  Ԁ) <DL)  *22 (_14 ` &<<DL&23  Ԁ&<<DL& ` *// (_13  #DL#23  Ԁ#DL#  *,, (_12   DL 23  Ԁ DL  *)) (_11 h DDL23  ԀDDL h *&& (_10  L23  ԀL  (## &_9   L23  Ԁ L  (>> &_8  2( 4 <DL223  2( 4 <DL2  (DD &_7   ," <DL,23  ," <DL,   (55 &_6  ) <DL)23  ) <DL)  (22 &_5 ` &<<DL&23  &<<DL& ` (// &_4  #DL#23  #DL#  (,, &_3   DL 23   DL  ()) &_2 h DDL23  DDL h (&& &_1  L23  L  &## $_   L23   L  <:Default Para !T!   _      o[,XF` hp x (#%'0*,.8135@8:<H?AXo*7"     %%%!% &%% %  @RR& PART734  @ SCOPEOFTHEEXPORTADMINISTRATIONREGULATIONS ^ Sec.!!G(#Page  \ 734.1Introduction""J(#. 1   734.2ImportantEARtermsandprinciples""J(#.++41 h  734.3ItemssubjecttotheEAR""J(#.*4  f  734.4De_minimis_U.S.Content""J(#.VV)5   734.5ActivitiesofU.S.andforeignpersonssubjecttotheEAR""J(#.K8 r  _8_734.6AssistanceavailablefromBISfordetermininglicensingandotherrequirements""J(#.;;`8  p  734.7Publishedinformationandsoftware""J(#.49  734.8Informationresultingfromfundamentalresearchp"p"I(#.A10 | 734.9Educationalinformationp"p"I(#.cc)11 *z 734.10Patentapplicationsp"p"I(#. $12 ( 734.11Governmentsponsoredresearchcoveredbycontractcontrolsp"p"I(#.K12  734.12Effectonforeignlawsandregulationsp"p"I(#.qq712 4 QUESTIONSANDANSWERSTECHNOLOGY 2 ANDSOFTWARESUBJECTTOTHEEARMM;(#.*SUPPLEMENTNO.1   GUIDELINESFORDE_MINIMIS_RULESMM;(#.)SUPPLEMENTNO.2 g !  #!& ~%% &"#L  "e# _  (X(#(#(63734.1 LP (    &%%!& ~LINTRODUCTION  !& ~%% &  Li    (a) Inthispart,referencestotheExport   AdministrationRegulations(EAR)arereferences  n to15CFRchapterVII,subchapterC.Thispart j B describesthescopeoftheExportAdministration >  Regulations(EAR)andexplainscertainkeyterms   andprinciplesusedintheEAR.Thispart    providestherulesyouneedtousetodetermine   Аwhetheritemsandactivitiesaresubjecttothe f  EAR.Thispartisthefirststepindetermining b:  yourobligationsundertheEAR.Ifneitheryour 6  itemnoractivityissubjecttotheEAR,thenyou    donothaveanyobligationsundertheEARand   youdonotneedtoreviewotherpartsoftheEAR.   Ifyoualreadyknowthatyouritemoractivityis ^ subjecttotheEAR,youdonotneedtoreviewthis Z2 partandyoucangoontoreviewotherpartsofthe . EARtodetermineyourobligations.Thispart  alsodescribescertainkeytermsandprinciples  usedintheEAR.Specifically,itincludesthe  followingterms: subjecttotheEAR, items ~V subjecttotheEAR, export,and reexport. R* Theseandothertermsarealsoincludedinpart & 772oftheEAR,DefinitionsofTerms,andyou  shouldconsultpart772oftheEARforthe  meaningoftermsusedintheEAR.Finally,this z partmakesclearthatcompliancewiththeEAR vN doesnotrelieveanyobligationsimposedunder J" foreignlaws.   Ѐ (b) Thispartdoesnotaddressanyofthe !! provisionssetforthinpart760oftheEAR, "s" RestrictiveTradePracticesorBoycotts. o#G#  (c) 󀀀Thispartdoesnotdefinethescopeoflegal %% authoritytoregulateexports,includingreexports, %& oractivitiesfoundintheExportAdministration & ' Actandotherstatutes.Whatthispartdoesdois 'l!( setforththeextenttowhichsuchlegalauthority h(@") hasbeenexercisedthroughtheEAR. <)#* @      L  &%%!& ~7#!& ~%% &# 34.2  ,d&. L  !% ~%%!& ~ %%%!% ~          IMPORTANTEARTERMSAND ! /    &%% %!& ~%% &          LPRINCIPLES    0 L !% ~%%!& ~ %%%!% ~          (a)SubjecttotheEARDefinition p!  2  &%% %!& ~%% &            (1) SubjecttotheEARisatermusedinthe i A4 EARtodescribethoseitemsandactivitiesover A 5 whichBISexercisesregulatoryjurisdictionunder  6 theEAR.Conversely,itemsandactivitiesthatare  7 notsubjecttotheEARareoutsidetheregulatory 8 jurisdictionoftheEARandarenotaffectedby i 9 theseregulations.Theitemsandactivitiessubject e= : totheEARaredescribedin734.2through 9 ; 734.5ofthispart.Youshouldreviewthe   < CommerceControlList(CCL)andanyapplicable  = partsoftheEARtodeterminewhetheranitemor  > activityissubjecttotheEAR.However,ifyou a? needhelpindeterminingwhetheranitemor ]5@ activityissubjecttotheEAR,see734.6ofthis 1 A part.Publiclyavailabletechnologyandsoftware B notsubjecttotheEARaredescribedin734.7 C through734.11andSupplementNo.1tothis D part. YE  (2)!% ~%%!& ~ ItemsandactivitiessubjecttotheEARmay )G alsobecontrolledunderexportrelatedprograms H administeredbyotheragencies.Itemsand I activitiessubjecttotheEARarenotnecessarily J exemptedfromthecontrolprogramsofother }UK agencies.AlthoughBISandotheragenciesthat Q)L maintaincontrolsfornationalsecurityandforeign % M policyreasonstrytominimizeoverlapping  N jurisdiction,youshouldbeawarethatinsome !O Аinstancesyoumayhavetocomplywithmorethan "yP oneregulatoryprogram. u#MQ Ѐ !& ~%%!% ~(3)!% ~%%!& ~ Theterm subjecttotheEARshouldnotbe %S confusedwithlicensingorotherrequirements %T imposedinotherpartsoftheEAR.Justbecause & U anitemoractivityissubjecttotheEARdoesnot 'u!V meanthatalicenseorotherrequirement q(I"W automaticallyapplies.Alicenseorother E)#X requirementappliesonlyinthosecaseswhere *#Y otherpartsoftheEARimposealicensingorother *$Z requirementonsuchitemsoractivities. +%[  ,m&\  !% ~%%!% ~ %%%!% ~          (b)Exportandreexport o"  (  %%% %!% ~%% %          !& ~%%!% ~(1)Definitionofexport . Exportmeansan  actualshipmentortransmissionofitemssubject  totheEARoutoftheUnitedStates,orreleaseof  W technologyorsoftwaresubjecttotheEARtoa S + foreignnationalintheUnitedStates,asdescribed '  inparagraph(b)(2)(ii)ofthissection.See   paragraph(b)(9)ofthissectionforthedefinition   thatappliestoexportsofencryptionsourcecode  {  andobjectcodesoftwaresubjecttotheEAR. wO   (2)Exportoftechnologyorsoftware .(See   paragraph(b)(9)forprovisionsthatapplyto   encryptionsourcecodeandobjectcodesoftware.)    Exportoftechnologyorsoftware,excluding w  encryptionsoftwaresubjectto EIcontrols, sK  includes: G  F (i)Anyreleaseoftechnologyorsoftware  subjecttotheEARinaforeigncountry;or   F (ii)Anyreleaseoftechnologyorsourcecode kC subjecttotheEARtoaforeignnational.Such ? releaseisdeemedtobeanexporttothehome  countryorcountriesoftheforeignnational.This  deemedexportruledoesnotapplytopersons  lawfullyadmittedforpermanentresidenceinthe g UnitedStatesanddoesnotapplytopersonswho c; areprotectedindividualsundertheImmigration 7 andNaturalizationAct(8U.S.C.1324b(a)(3)).   Notethatthereleaseofanyitemtoanypartywith  knowledgeaviolationisabouttooccuris    prohibitedby736.2(b)(10)oftheEAR. !_!  (3)Definitionof releaseoftechnologyor /## software.!% ~%%!& ~ Technologyorsoftwareis released $$ forexportthrough: $% 0 F (i)Visualinspectionbyforeignnationalsof&^ 'FF U.S.-originequipmentandfacilities; Z'2!(  F (ii)Oralexchangesofinformationinthe )"* АUnitedStatesorabroad;or )#+ 0 F (iii)Theapplicationtosituationsabroadof ~+V%- personalknowledgeortechnicalexperienceR,*&.FF acquiredintheUnitedStates.(.(#(#   !& ~%%!% ~(4)Definitionofreexport.!% ~%%!& ~ Reexportmeansan 0 actualshipmentortransmissionofitemssubject 1 totheEARfromoneforeigncountrytoanother | T2 foreigncountry;orreleaseoftechnologyor P (3 softwaresubjecttotheEARtoaforeignnational $ 4 outsidetheUnitedStates,asdescribedin  5 paragraph(b)(5)ofthissection.  6  !& ~%%!% ~(5)Reexportoftechnologyorsoftware.!% ~%%!& ~ Any tL8 releaseoftechnologyorsourcecodesubjecttothe L$ 9 EARtoaforeignnationalofanothercountryisa   : deemedreexporttothehomecountryorcountries  ; oftheforeignnational.However,thisdeemed  < reexportdefinitiondoesnotapplytopersons t = lawfullyadmittedforpermanentresidence.The pH > term releaseisdefinedinparagraph(b)(3)of D? thissection.Notethatthereleaseofanyitemto @ anypartywithknowledgeorreasontoknowa A violationisabouttooccurisprohibitedby B А736.2(b)(10)oftheEAR. lC  !& ~%%!% ~(6)!% ~%%!& ~ ForpurposesoftheEAR,theexportor <E reexportofitemssubjecttotheEARthatwill F transitthroughacountryorcountriesorbe G transshippedinacountryorcountriestoanew H countryorareintendedforreexporttothenew hI country,aredeemedtobeexportstothenew d<J country. 8K  !& ~%%!% ~(7)!% ~%%!& ~ Ifaterritory,possession,ordepartmentofa M foreigncountryisnotlistedontheCountryChart  N inSupplementNo.1topart738oftheEAR,the !dO exportorreexportofitemssubjecttotheEARto `"8P suchdestinationisdeemedundertheEARtobe 4# Q anexporttotheforeigncountry.Forexample,a $R shipmenttotheCaymanIslands,adependent $S territoryoftheUnitedKingdom,isdeemedtobe %T ashipmenttotheUnitedKingdom.  &\ U (8) Exportorreexportofitemssubjecttothe )"X EARdoesnotincludeshipmentsamonganyof )#Y thestatesoftheUnitedStates,theCommonwealth *$Z ofPuertoRico,ortheCommonwealthofthe +^%[ NorthernMarianaIslandsoranyterritory, Z,2&\ dependency,orpossessionoftheUnitedStates. ( !& ~%%!% ~ThesedestinationsarelistedinScheduleC,  ClassificationCodesandDescriptionsforU.S.  ExportStatistics,issuedbytheBureauofthe | Census.#!% ~%%!& ~A:# `  x P  (9)Exportofencryptionsourcecodeand #  objectcodesoftware.     F (i)ForpurposesoftheEAR,theexportof  }  encryptionsourcecodeandobjectcodesoftware yQ  means: M%  6,X` X,XF` X6 F   (A)Anactualshipment,transfer,or   transmissionoutoftheUnitedStates(seealso   paragraph(b)(9)(ii)ofthissection);or u   F   (B)AtransferofsuchsoftwareintheUnited E Statestoanembassyoraffiliateofaforeign  Аcountry.   F (ii)Theexportofencryptionsourcecodeand m objectcodesoftwarecontrolledfor EIreasons iA underECCN5D002ontheCommerceControl = List(seeSupplementNo.1topart774ofthe  EAR)includesdownloading,orcausingthe  Аdownloadingof,suchsoftwaretolocations  (includingelectronicbulletinboards,Internetfile e transferprotocol,andWorldWideWebsites) a9 outsidetheU.S.,ormakingsuchsoftware 5  availablefortransferoutsidetheUnitedStates,   overwire,cable,radio,electromagnetic,photo  optical,photoelectricorothercomparable    communicationsfacilitiesaccessibletopersons !]! outsidetheUnitedStates,includingtransfersfrom Y"1" electronicbulletinboards,Internetfiletransfer -## protocolandWorldWideWebsites,unlessthe $$ personmakingthesoftwareavailabletakes $% precautionsadequatetopreventunauthorized %& transferofsuchcode.See740.13(e)oftheEAR }&U ' fornotificationrequirementsforexportsor Q')!( reexportsofencryptionsourcecodeandobject %(!) codesoftwareconsideredtobepubliclyavailable ("* consistentwiththeprovisionsof734.3(b)(3)of )#+ theEAR. *y$,  F (iii)SubjecttotheGeneralProhibitions I,!&. describedinpart736oftheEAR,such (. precautionsforInternettransfersofproducts / eligibleforexportunder740.17(b)(2)ofthe 0 EAR(encryptionsoftwareproducts,certain |1 encryptionsourcecodeandgeneralpurpose x P2 encryptiontoolkits)shallincludesuchmeasures L $3 as:  4    D (A)Theaccesscontrolsystem,eitherthrough  6 automatedmeansorhumanintervention,checks  t7 theaddressofeverysystemoutsideoftheU.S.or pH8 Canadarequestingorreceivingatransferand D 9 verifiessuchsystemsdonothaveadomainname  : orInternetaddressofaforeigngovernmentend  ; user(e.g., .gov, .gouv, .milorsimilar  < addresses); l =    D (B)Theaccesscontrolsystemprovidesevery <? requestingorreceivingpartywithnoticethatthe @ transferincludesorwouldincludecryptographic A softwaresubjecttoexportcontrolsunderthe B ExportAdministrationRegulations,andanyone dC receivingsuchatransfercannotexportthe `8D softwarewithoutalicenseorotherauthorization; 4 E and F    D (C)Everypartyrequestingorreceivinga H transferofsuchsoftwaremustacknowledge \I affirmativelythatthesoftwareisnotintendedfor X0J usebyagovernmentenduser,asdefinedinpart ,K 772,andheorsheunderstandsthecryptographic L softwareissubjecttoexportcontrolsunderthe M ExportAdministrationRegulationsandanyone  N receivingthetransfercannotexportthesoftware |!TO withoutalicenseorotherauthorization.BISwill P"(P consideracknowledgmentsinelectronicform $#Q providedtheyareadequatetoassurelegal #R undertakingssimilartowrittenacknowledgments. $S     @F  734.3  H' !V M !% ~%%!% ~ %%%!% ~          ITEMSSUBJECTTOTHEEAR onN AN  ("X  %%% %!% ~%% %           (a) Exceptforitemsexcludedinparagraph(b)of *v$Z thissection,thefollowingitemsaresubjecttothe s+K%[ EAR: G,&\  7"63 7x- 67- 6  (1) AllitemsintheUnitedStates,includingina  U.S.ForeignTradeZoneormovingintransit  throughtheUnitedStatesfromoneforeign X Аcountrytoanother; , T  !& ~%%!% ~(2)!% ~%%!& ~ AllU.S.originitemswhereverlocated;    %&'(23(x34!& ~%%!% ~;& ~%%!& ~ (3) Foreignmadecommoditiesthatincorporate   controlledU.S.origincommodities,foreignmade X   commoditiesthatarebundledwithcontrolled ,T  U.S.originsoftware,foreignmadesoftwarethat (  iscommingledwithcontrolledU.S.origin   software,andforeignmadetechnologythatis   commingledwithcontrolledU.S.origin |  technology: Px   F  F (i)Inanyquantity,asdescribedin734.4(a)of   thispart;or   F  F (ii)Inquantitiesexceedingthe#!& ~%%;& ~S#L  M  ;& ~%%!& ~deminimis#!& ~%%;& ~V#L  M  ;& ~%%!& ~ t levels,asdescribedin734.4(c)or734.4(d)of Hp thispart;#!& ~%%;& ~yV# D  (4!% ~%%!& ~ )CertainforeignmadedirectproductsofU.S.  origintechnologyorsoftware,asdescribedin  736.2(b)(3)oftheEAR.Theterm direct p productmeanstheimmediateproduct(including Dl processesandservices)produceddirectlybythe @ useoftechnologyorsoftware;and  ;% ~%%!% ~;& ~%%;% ~ F NOTEtoparagraph(a)(4): Certainforeign  manufactureditemsdevelopedorproducedfrom h   U.S.originencryptionitemsexportedpursuantto ;!c! LicenseExceptionENCaresubjecttotheEAR. "6" Seesections740.17(a)and740.17(b)(4)(ii)ofthe " # EAR.#!& ~%%;& ~X##!% ~%%!& ~Y# #$  !& ~%%!% ~(5)!% ~%%!& ~ Certaincommoditiesproducedbyanyplant [%& ormajorcomponentofaplantlocatedoutsidethe 3&[ ' UnitedStatesthatisadirectproductofU.S. '/!( origintechnologyorsoftware,asdescribedin '") 736.2(b)(3)oftheEAR. ("*  (b) Thefollowingitemsarenotsubjecttothe V*~$, EAR: ++S%-  +'&.  !& ~%%!% ~(1)!% ~%%!& ~ Itemsthatareexclusivelycontrolledfor . exportorreexportbythefollowingdepartments / andagenciesoftheU.S.Governmentwhich 0 regulateexportsorreexportsfornationalsecurity X1 orforeignpolicypurposes: , T2   (i)DepartmentofState.TheInternational  4 TrafficinArmsRegulations(22CFRpart121)  5 administeredbytheDirectorateofDefenseTrade | 6 Controlsrelatetodefensearticlesanddefense P x7 servicesontheU.S.MunitionsList.Section38of $L8 theArmsExportControlAct(22U.S.C.2778).  9     (ii)TreasuryDepartment,OfficeofForeign  ; AssetsControl(OFAC).Regulations t < administeredbyOFACimplementbroadcontrols Hp = andembargotransactionswithcertainforeign D > countries.Theseregulationsincludecontrolson ? exportsandreexportstocertaincountries(31 @ CFRchapterV).TradingwiththeEnemyAct(50 A U.S.C.app.section1etseq.),andInternational lB EmergencyEconomicPowersAct(50U.S.C. @hC 1701,etseq.) <D   (iii)U.S.NuclearRegulatoryCommission F (NRC).RegulationsadministeredbyNRCcontrol G theexportandreexportofcommoditiesrelatedto dH nuclearreactorvessels(10CFRpart110).Atomic 8`I EnergyActof1954,asamended(42U.S.C.part  4J 2011etseq.). K   (iv)DepartmentofEnergy(DOE).Regulations M administeredbyDOEcontroltheexportand \ N reexportoftechnologyrelatedtotheproduction 0!XO ofspecialnuclearmaterials(10CFRpart810). ",P AtomicEnergyActof1954,asamended(42 "Q U.S.C.section2011etseq.). #R   (v)PatentandTrademarkOffice(PTO). T%|T АRegulationsadministeredbyPTOprovideforthe (&P U exporttoaforeigncountryofunclassified &$!V technologyintheformofapatentapplicationor '!W anamendment,modification,orsupplementthere ("X toordivisionthereof(37CFRpart5).BIShas x)#Y delegatedauthorityundertheExport L*t$Z AdministrationActtothePTOtoapproveexports  +H%[ andreexportsofsuchtechnologywhichissubject +&\ totheEAR.Exportsandreexportsofsuch  technologynotapprovedunderPTOregulations  mustcomplywiththeEAR.   !& ~%%!% ~ F    ` (2)!% ~%%!& ~ Prerecordedphonographrecordsreproducing + S inwholeorinpart,thecontentofprintedbooks,  + pamphlets,andmiscellaneouspublications,   includingnewspapersandperiodicals;printed   Аbooks,pamphlets,andmiscellaneouspublications   includingboundnewspapersandperiodicals; S {  children'spictureandpaintingbooks;newspaper 'O  andperiodicals,unbound,excludingwaste;music #  books;sheetmusic;calendarsandcalendar   Аblocks,paper;maps,hydrographicalcharts,   atlases,gazetteers,globecovers,andglobes w  (terrestrialandcelestial);exposedanddeveloped Ks  microfilmreproducing,inwholeorinpart,the G  contentofanyoftheabove;exposedand  developedmotionpicturefilmandsoundtrack;  andadvertisingprintedmatterexclusivelyrelated  thereto. o  !& ~%%!% ~(3)!% ~%%!& ~ Publiclyavailabletechnologyandsoftware, ? exceptsoftwarecontrolledfor EIreasonsunder  ECCN5D002ontheCommerceControlListand  massmarketencryptionsoftwarewithsymmetric  keylengthexceeding64bitscontrolledunder k ECCN5D992,that: ?g  F   (i)Arealreadypublishedorwillbepublished  asdescribedin734.7ofthispart;   F   (ii)Ariseduring,orresultfrom,fundamental c   research,asdescribedin734.8ofthispart; 7!_!  F   (iii)Areeducational,asdescribedin734.9 "# ofthispart; #$  F   (iv)Areincludedincertainpatent [%& applications,asdescribedin734.10ofthispart. /&W '  NotetoParagraphs(b)(2)and(b)(3)ofthis '!) Section: Aprintedbookorotherprintedmaterial ("* settingforthencryptionsourcecodeisnotitself )#+ subjecttotheEAR(see734.3(b)(2)).However, R*z$, notwithstanding734.3(b)(2),encryptionsource %+M%- codeinelectronicformormedia(e.g.,computer + &. disketteorCDROM)remainssubjecttotheEAR . (see734.3(b)(3)). /  !& ~%%!% ~(4)!% ~%%!& ~ Foreignmadeitemsthathavelessthanthede Rz1 minimispercentageofcontrolledU.S.content * R2 basedontheprinciplesdescribedin734.4ofthis  &3 part.  4    (c)  ItemssubjecttotheEARconsistofthe z 6 itemslistedontheCommerceControlList(CCL) O w7 inpart774oftheEARandallotheritemswhich #K8 meetthedefinitionofthatterm.Foreaseof  9 referenceandclassificationpurposes,items  : subjecttotheEARwhicharenotlistedonthe  ; CCLaredesignatedas EAR99. s <    D      @  @D  734.4  ? aw   D    D DEMINIMISU.S.CONTENT oow A    (a)  Itemsforwhichthereis EmC nodeminimislevel BD   E Px (1) !& ~%%!% ~Thereisnodeminimislevelfortheexport F fromaforeigncountryofaforeign-made G computerwithanAdjustedPeakPerformance nH (APP)exceeding0.75WeightedTeraFLOPS BjI (WT)containingU.S.-origincontrolled >J semiconductors(otherthanmemorycircuits) K classifiedunderECCN3A001toComputerTier L 3;orexceedinganAPPof0.002WTcontaining M U.S.-origincontrolledsemiconductors(otherthan f N memorycircuits)classifiedunderECCN3A001 :!bO orhighspeedinterconnectdevices(ECCN "6P 4A994.j)toCuba,Iran,NorthKorea,Sudan,and " Q Syria.#!% ~%%!& ~x# #R  (2) Foreignproducedencryptiontechnologythat ^%T incorporatesU.S.originencryptiontechnology 6&^ U controlledbyECCN5E002issubjecttotheEAR  '2!V regardlessoftheamountofU.S.origincontent '"W  (3) Thereisnodeminimislevelfor )#Y foreign-made: ^*$Z    D (i)Commercialprimaryorstandby_instrument ,.&\ systemsofthetypedescribedin_ECCN_Ԁ7A994on  theCommerceControlList(SupplementNo.1to  part774theEAR)whenthesystemsintegrate  QRS11-00100-100/101_Micromachined_ԀAngular T| RateSensors; ( P  F   (ii)Commercialautomaticflightcontrol   systemswhenthesystemsintegrateQRS11   00050443/569_Micromachined_ԀAngularRate x  Sensors;and L t  !& ~%%!% ~ F   #!% ~%%!& ~#(iii)Aircraftofthetypedescribedin_ECCN_   9A991whensuchaircraftincorporateaprimary   orstandbyinstrumentsystemintegratinga   QRS1100100100/101sensororanautomatic p  flightcontrolsystemintegratingaQRS1100050 Dl  443/569sensor. @   F    `    NotetoParagraph(a)(3): V% ~%%!% ~V& ~%%V% ~QRS11  _Micromachined_ԀAngularRateSensorsaresubject  totheexportlicensingjurisdictionoftheU.S. g DepartmentofState,DirectorateofDefense :b TradeControls,exceptwhenthe  5 QRS11-00100-100/101versionofthesensoris  integratedintoandincludedasanintegralpartof  acommercialprimaryorstandbyinstrument  systemofthetypedescribedin_ECCN_Ԁ7A994,or Y aircraftofthetypedescribedin_ECCN_Ԁ9A991that ,T incorporatesacommercialprimaryorstandby ' instrumentthathassuchasensorintegrated,oris  exportedsolelyforintegrationintosuchsystems;  orwhentheQRS11-00050-443/569isintegrated x intoacommercialautomaticflightcontrolsystem K s  ofthetypedescribedin_ECCN_Ԁ7A994,oraircraft !F! ofthetypedescribedin_ECCN_Ԁ9A991that !" incorporatesanautomaticflightcontrolsystem "# thathassuchasensorintegrated,orisexported #$ solelyforintegrationintosuchasystem.#!& ~%%V& ~# j$% ;& ~%%!& ~ (4) Thereisno#;% ~%%;& ~##!% ~%%;% ~ #L  M  !& ~%%!% ~;& ~%%!& ~de_minimis_Ԁ#;% ~%%;& ~##!% ~%%;% ~#L  M  !& ~%%!% ~;& ~%%!& ~levelforU.S.origin &9 ' technologycontrolledby_ECCN_Ԁ9E003a.1 &!( througha.11,and.h.whenredrawn,used, '!) consulted,orotherwisecommingledabroad. ("*  F   (5) #!& ~%%;& ~#V& ~%%!& ~Thereisnode_minimis_Ԁlevelforforeignmade 9*a$, militarycommoditiesthatincorporatecameras +9%- classifiedunder_ECCN_Ԁ6A003.b.4.bifsuch + &. cameraswouldbesubjecttotheEARasseparate . itemsandiftheforeignmademilitarycommodity / isnotsubjecttotheInternationalTrafficinArms 0 Regulations(22_USC_ԁParts120-130).#!& ~%%V& ~##!% ~%%!& ~c#!& ~%%!% ~;& ~%%!& ~  T|1  (6) UndercertainrulesissuedbytheOfficeof  $3 ForeignAssetsControl,certainexportsfrom  4 abroadbyU.S.ownedorcontrolledentitiesmay  5 beprohibitednotwithstandingthe#;% ~%%;& ~g##!% ~%%;% ~#L  M  !& ~%%!% ~;& ~%%!& ~de_minimis_#;% ~%%;& ~##!% ~%%;% ~.#L  M  !& ~%%!% ~;& ~%%!& ~ | 6 provisionsoftheEAR.Inaddition,the#;% ~%%;& ~Ԑ##!% ~%%;% ~#L  M  !& ~%%!% ~;& ~%%!& ~de P x7 _minimis_#;% ~%%;& ~##!% ~%%;% ~̑#L  M  !& ~%%!% ~;& ~%%!& ~ԀrulesdonotrelieveU.S.personsofthe $L8 obligationtorefrainfromsupportingthe  9 proliferationofweaponsofmassdestructionand  : missilesasprovidedin744.6oftheEAR.#!& ~%%;& ~##!% ~%%!& ~#!& ~%%!% ~  ;   #!% ~%%!& ~#   (b) Specialrequirementsforcertain Hp = encryptionitems . E > cForeignmadeitemsthatincorporateU.S.origin @ itemsthatarelistedinthisparagrapharesubject A totheEARunlesstheymeetthede_minimis_level nB anddestinationrequirementsofparagraph(c)or BjC (d)ofthissectionandtherequirementsofthis >D paragraph. E   (1) TheU.S.origincommoditiesorsoftware,if G controlledunder_ECCNs_Ԁ5A002.a.1,.a.2,.a.5,or jH .a.6,or5D002,musthavebeen: >fI   (i)Authorizedforlicenseexception_TSU_ K becauseofhavingmetthenotification L requirementsof740.13(e)oftheEAR(_ECCN_ M 5D002only);   b N   (ii)AuthorizedforLicenseException_ENC_Ԁby  "2P BISafterareviewpursuantto740.17(b)(3)of "Q theEAR; #R     (iii)AuthorizedforLicenseException_ENC_Ԁby Z%T BISafterareviewpursuantto740.17(b)(2),and .&V U theforeignmadeproductwillnotbesenttoany '*!V destinationinCountryGroupE:1inSupplement '!W No.1topart740oftheEAR;or ("X     (iv)AuthorizedforLicenseException_ENC_ R*z$Z pursuantto740.17(b)(4). &+N%[    +"&\  F   (2)U.S.originencryptionitemsclassified  under_ECCNs_Ԁ5A992,5D992,or5E992.   F  F   NOTEtoparagraph(b) :SeeSupplementNo. S{ 2tothispartforde_minimis_Ԁcalculation ' O proceduresandreportingrequirements.  " !& ~%%!% ~#!% ~%%!& ~# ;% ~%%!% ~;& ~%%;% ~  (c) #;% ~%%;& ~##!% ~%%;% ~#L  M  !& ~%%!% ~;& ~%%!& ~10%#;% ~%%;& ~##!% ~%%;% ~#L  M  !& ~%%!% ~;& ~%%!& ~De_Minimis_#;% ~%%;& ~*##!% ~%%;% ~I#L  M  !& ~%%!% ~;& ~%%!& ~ԀRule #;% ~%%;& ~##!% ~%%;% ~ #L  M  !& ~%%!% ~;& ~%%!& ~ u  Exceptasprovidedinparagraphs(a)and  H  (b)(1)(iii)ofthissectionandsubjecttothe   provisionsofparagraphs(b)(1)(i),(b)(1)(ii)and   (b)(2)ofthissection,thefollowing_reexports_Ԁare   notsubjecttotheEARwhenmadetoanycountry p  intheworld.SeeSupplementNo.2ofthispart Dl  forguidanceoncalculatingvalues. @     F    `     h   (1) _Reexports_Ԁofaforeignmadecommodity  incorporatingcontrolledU.S.origincommodities  orbundledwithU.S.originsoftwarevaluedat l 10%orlessofthetotalvalueoftheforeignmade @h commodity; <  F  F #;% ~%%;& ~##!% ~%%;% ~#L  M  !& ~%%!% ~;& ~%%!& ~NOTEStoparagraph(c)(1): #;% ~%%;& ~##!% ~%%;% ~8#L  M  !& ~%%!% ~;& ~%%!& ~     F (1) U.S.originsoftwareisnoteligibleforthe#;% ~%%;& ~ҥ##!% ~%%;% ~#L  M  !& ~%%!% ~;& ~%%!& ~de c _minimis_#;% ~%%;& ~Ϧ##!% ~%%;% ~#L  M  !& ~%%!% ~;& ~%%!& ~ԀexclusionandissubjecttotheEARwhen 7_ exportedor_reexported_Ԁseparatelyfrom(i.e.,not  2 bundledorincorporatedwith)theforeignmade  item.   F    F (2) Forthepurposesofthissection,bundled V ~  meanssoftwarethatis_reexported_Ԁtogetherwith *!R! theitemandisconfiguredfortheitem,butisnot !%" necessarilyphysicallyintegratedintotheitem. "#  F (3) The#;% ~%%;& ~##!% ~%%;% ~ħ#L  M  !& ~%%!% ~;& ~%%!& ~de_minimis_#;% ~%%;& ~ª##!% ~%%;% ~#L  M  !& ~%%!% ~;& ~%%!& ~Ԁexclusionunderparagraph v$% (c)(1)onlyappliestosoftwarethatislistedonthe J%r& CommerceControlList(CCL)andhasareason &E ' forcontrolofantiterrorism(AT)onlyorsoftware &!( thatisdesignatedasEAR99(subjecttotheEAR, '!) butnotlistedontheCCL).Forallother ("* software,anindependentassessmentofwhether i)#+ thesoftwarebyitselfissubjecttotheEARmustbe <*d$, performed.#!& ~%%;& ~##!% ~%%!& ~# +7%-  + &.  !& ~%%!% ~(2)!% ~%%!& ~ _Reexports_Ԁofforeignmadesoftware . incorporatingcontrolledU.S.originsoftware / valuedat10%orlessofthetotalvalueofthe 0 foreignmadesoftware;or X1  !& ~%%!% ~(3)!% ~%%!& ~ _Reexports_Ԁofforeigntechnologycommingled  (3 withordrawnfromcontrolledU.S.origin  4 technologyvaluedat10%orlessofthetotal  5 valueoftheforeigntechnology.;% ~%%!% ~;& ~%%;% ~Beforeyoumay  6 relyuponthe#;% ~%%;& ~##!% ~%%;% ~#L  M  !& ~%%!% ~;& ~%%!& ~de_minimis_#;% ~%%;& ~##!% ~%%;% ~ܱ#L  M  !& ~%%!% ~;& ~%%!& ~Ԁexclusionforforeign T |7 madetechnologycommingledwithcontrolled (P8 U.S.origintechnology,youmustfileaonetime $ 9 report.SeeSupplementNo.2topart734for  : submissionrequirements.#!& ~%%;& ~##!% ~%%!& ~#  ;  ;% ~%%!% ~;& ~%%;% ~  (d)25%#;% ~%%;& ~I##!% ~%%;% ~*#L  M  !& ~%%!% ~;& ~%%!& ~De_Minimis_#;% ~%%;& ~ڴ##!% ~%%;% ~#L  M  !& ~%%!% ~;& ~%%!& ~ԀRule #;% ~%%;& ~##!% ~%%;% ~#L  M  !& ~%%!% ~;& ~%%!& ~Ԁ Lt = hExceptasprovidedinparagraph(a)ofthissection ? andsubjecttotheprovisionsofparagraph(b)of @ thissection,thefollowing_reexports_Ԁarenot A subjecttotheEARwhenmadetocountriesother pB thanthoselistedinCountryGroupE:1of DlC SupplementNo.1topart740oftheEAR.See @D SupplementNo.2tothispartforguidanceon E calculatingvalues. F   (1) _Reexports_Ԁofaforeignmadecommodity hH incorporatingcontrolledU.S.origincommodities @hI orbundledwithU.S.originsoftwarevaluedat <J 25%orlessofthetotalvalueoftheforeignmade K commodity; L     #;% ~%%;& ~<#;& ~%%;% ~#!& ~%%;& ~[#;& ~%%!& ~Ԁ#;% ~%%;& ~n##!% ~%%;% ~#L  M  !& ~%%!% ~;& ~%%!& ~NOTEStoparagraph(d)(1): #;% ~%%;& ~0##!% ~%%;% ~O#L  M  !& ~%%!% ~;& ~%%!& ~ d N     (1) U.S.originsoftwareisnoteligibleforthe#;% ~%%;& ~##!% ~%%;% ~#L  M  !& ~%%!% ~;& ~%%!& ~de  "5P _minimis_#;% ~%%;& ~##!% ~%%;% ~ #L  M  !& ~%%!% ~;& ~%%!& ~ԀexclusionandissubjecttotheEARwhen " Q exportedor_reexported_Ԁseparatelyfrom(i.e.,not #R bundledorincorporatedwith)theforeignmade $S item. Z%T       (2) Forthepurposesofthissection,bundled '(!V meanssoftwarethatis_reexported_Ԁtogetherwith '!W theitemandisconfiguredfortheitem,butisnot ("X necessarilyphysicallyintegratedintotheitem. z)#Y     (3) The#;% ~%%;& ~##!% ~%%;% ~߽#L  M  !& ~%%!% ~;& ~%%!& ~de_minimis_#;% ~%%;& ~##!% ~%%;% ~#L  M  !& ~%%!% ~;& ~%%!& ~Ԁexclusionunderparagraph  +H%[ (d)(1)onlyappliestosoftwarethatislistedonthe +&\ CommerceControlList(CCL)andhasareason  forcontrolofantiterrorism(AT)onlyorsoftware  thatisclassifiedasEAR99(subjecttotheEAR, ~ butnotlistedontheCCL).Forallother Qy software,anindependentassessmentofwhether $ L thesoftwarebyitselfissubjecttotheEARmustbe   performed.#!& ~%%;& ~##!% ~%%!& ~#    !& ~%%!% ~(2)!% ~%%!& ~ _Reexports_Ԁofforeignmadesoftware q  incorporatingcontrolledU.S.originsoftware I q  valuedat25%orlessofthetotalvalueofthe E  foreignmadesoftware;or    !& ~%%!% ~(3)!% ~%%!& ~ _Reexports_Ԁofforeigntechnologycommingled   withordrawnfromcontrolledU.S.origin q  technologyvaluedat25%orlessofthetotal Em  valueoftheforeigntechnology.;% ~%%!% ~;& ~%%;% ~Beforeyoumay A  relyuponthe#;% ~%%;& ~ ##!% ~%%;% ~#L  M  !& ~%%!% ~;& ~%%!& ~de_minimis_#;% ~%%;& ~##!% ~%%;% ~#L  M  !& ~%%!% ~;& ~%%!& ~Ԁexclusionforforeign  madetechnologycommingledwithcontrolled  U.S.origintechnology,youmustfileaonetime  report.SeeSupplementNo.2topart734for i submissionrequirements.#!& ~%%;& ~##!% ~%%!& ~# =e  (e) Youareresponsibleformakingthenecessary   calculationstodeterminewhetherthede_minimis_  provisionsapplytoyoursituation.See  SupplementNo.2topart734forguidance b regardingcalculationofU.S.controlledcontent. 6^    (f) See770.3oftheEARforprinciplesthat  applytocommingledU.S.origintechnologyand  software.   ;% ~%%!% ~;& ~%%;% ~  (g)Recordkeepingrequirement #;% ~%%;& ~##!% ~%%;% ~x#L  M  !& ~%%!% ~;& ~%%!& ~Ԁ "# Themethodbywhichyoudeterminedthe $% percentageofU.S.contentinforeignsoftwareor T%|& technologymustbedocumentedandretainedin (&P ' yourrecordsinaccordancewiththe &$!( recordkeepingrequirementsinpart762ofthe '!) EAR.Yourrecordsshouldindicatewhetherthe ("* valuesyouusedinyourcalculationsareactual x)#+ armslengthmarketpricesorpricesderivedfrom L*t$, comparabletransactionsorcostsofproduction,  +H%- overhead,andprofit.#!& ~%%;& ~a##!% ~%%!& ~B# +&.     734.5  . u !% ~%%!% ~ %%%!% ~          ACTIVITIESOFU.S.ANDFOREIGN 2, 0    %%% %!% ~%% %            PERSONSSUBJECTTOTHEEAR e Z1   Thefollowingkindsofactivitiesaresubjecttothe  -3 EAR:  4  (a) !& ~%%!% ~ԀCertainactivitiesofU.S.personsrelatedtothe  6 proliferationofnuclearexplosivedevices, V ~7 chemicalorbiologicalweapons,missile *R8 technologyasdescribedin744.6oftheEAR, & 9 andtheproliferationofchemicalweaponsas  : describedinpart745oftheEAR.#!% ~%%!& ~#  ;  (b) ActivitiesofU.S.orforeignpersons Nv = prohibitedbyanyorderissuedundertheEAR, #K > includingaDenialOrderissuedpursuanttopart ? 766oftheEAR. @ __   D      !% ~%%!% ~ %%%!% ~           734.6  mine \C  %%% %!% ~%% %            ASSISTANCEAVAILABLEFROMBIS /E FORDETERMININGLICENSINGAND F OTHERREQUIREMENTS  G p (a) Ifyouarenotsurewhetheracommodity, `I software,technology,oractivityissubjecttothe 5]J EAR,orissubjecttolicensingorother  1K requirementsundertheEAR,youmayaskBISfor L anadvisoryopinion,classification,ora M determinationwhetheraparticularitemoractivity  N issubjecttotheEAR.Inmanyinstances, Y!O includingthosewheretheitemisspecially -"UP designed,developed,configured,adapted,or #)Q modifiedformilitaryapplication,theitemmay #R fallunderthelicensingjurisdictionofthe $S DepartmentofStateandmaybesubjecttothe }%T controlsoftheInternationalTrafficinArms Q&y U Regulations(22_CFR_Ԁparts120through130) %'M!V (_ITAR_).InordertodetermineiftheDepartment '!"W ofStatehaslicensingjurisdictionoveranitem, ("X youshouldsubmitarequestforacommodity )#Y jurisdictiondeterminationtotheDepartmentof u*$Z State,DirectorateofDefenseTradeControls. I+q%[ _Exportersshouldnotethatinaverylimited ,E&\ numberofcases,thecategoriesofitemsmaybe  subjecttoboththeITARandtheEAR.The  relevantdepartmentsareworkingtoeliminateany  unnecessaryoverlapsthatmayexist. T|  (b) Astheagencyresponsibleforadministering  $ theEAR,BISistheonlyagencythathasthe   responsibilityfordeterminingwhetheranitemor   activityissubjecttotheEARand,ifso,what y  licensingorotherrequirementsapplyunderthe M u  EAR.SuchadeterminationonlyaffectsEAR !I  requirements,anddoesnotaffecttheapplicability   ofanyotherregulatoryprograms.    (c) IfyouneedhelpindeterminingBISlicensing q  orotherrequirements,youmayaskBISforhelp Fn  byfollowingtheproceduresdescribedin748.3 B  oftheEAR.   !% ~%%!% ~ %%%!% ~            sth %%% %!% ~%% %           F    `     734.7  p a   !% ~%%!% ~ %%%!% ~           sth %%% %!% ~%% %           @  @  @ PUBLISHEDINFORMATION F ANDSOFTWARE hr   (a) Informationis publishedwhenitbecomes  generallyaccessibletotheinterestedpublicinany u form,including: Iq  !& ~%%!% ~(1)!% ~%%!& ~ Publicationinperiodicals,books,print,  electronic,oranyothermediaavailablefor  generaldistributiontoanymemberofthepublic  ortoacommunityofpersonsinterestedinthe q   subjectmatter,suchasthoseinascientificor E!m! engineeringdiscipline,eitherfreeoratapricethat "A" doesnotexceedthecostofreproductionand "# distribution(SeeSupplementNo.1tothispart, #$ QuestionsA(1)throughA(6)); $%  !& ~%%!% ~(2)!% ~%%!& ~ Readyavailabilityatlibrariesopentothe =&e ' publicoratuniversitylibraries(SeeSupplement '=!( No.1tothispart,QuestionA(6)); '")  !& ~%%!% ~(3)!% ~%%!& ~ Patentsandopen(published)patent )#+ applicationsavailableatanypatentoffice;and i*$,  !& ~%%!% ~(4)!% ~%%!& ~ Releaseatanopenconference,meeting, ,9&. seminar,tradeshow,orotheropengathering. .   (i)Aconferenceorgatheringis openifall 0 technicallyqualifiedmembersofthepublicare T|1 eligibletoattendandattendeesarepermittedto ( P2 takenotesorotherwisemakeapersonalrecord  $3 (notnecessarilyarecording)oftheproceedings  4 andpresentations.  5   (ii)Alltechnicallyqualifiedmembersofthe L t7 publicmaybeconsideredeligibletoattenda  H8 conferenceorothergatheringnotwithstandinga  9 registrationfeereasonablyrelatedtocostand  : reflectinganintentionthatallinterestedand  ; technicallyqualifiedpersonsbeabletoattend,or p < alimitationonactualattendance,aslongas Dl = attendeeseitherarethefirstwhohaveappliedor @ > areselectedonthebasisofrelevantscientificor ? technicalcompetence,experience,or @ responsibility(SeeSupplementNo.1tothispart, A QuestionsB(1)throughB(6)). hB   (iii) Publicationincludessubmissionof 8D paperstodomesticorforeigneditorsorreviewers  E ofjournals,ortoorganizersofopenconferences F orotheropengatherings,withtheunderstanding G thatthepaperswillbemadepubliclyavailableif `H favorablyreceived.(SeeSupplementNo.1tothis 4\I part,QuestionsA(1)andA(3)). 0J    (b) Softwareandinformationispublishedwhen L itisavailableforgeneraldistributioneitherfor M freeoratapricethatdoesnotexceedthecostof Y N reproductionanddistribution.SeeSupplement -!UO No.1tothispart,QuestionsG(1)throughG(3). ")P  (c) Notwithstandingparagraphs(a)and(b)ofthis #R section,notethatencryptionsoftwarecontrolled $S underECCN5D002for EIreasonsonthe U%}T CommerceControlListandmassmarket )&Q U encryptionsoftwarewithsymmetrickeylength &%!V exceeding64bitscontrolledunderECCN5D992 '!W remainsubjecttotheEAR.See740.13(e)ofthe ("X EARforcertainexportsandreexportsunder y)#Y licenseexception.   M*u$Z  +&\   734.8   +   !% ~%%!% ~ %%%!% ~          INFORMATIONRESULTINGFROM x %   %%% %!% ~%% %          FUNDAMENTALRESEARCH h Z l %%%!% ~  ̀(a)Fundamentalresearch  - !% ~%% %  Paragraphs(b)through(d)ofthissectionand   734.11ofthispartprovidespecificrulesthat   willbeusedtodeterminewhetherresearchin U }  particularinstitutionalcontextsqualifiesas )Q   fundamentalresearch.Theintentbehindthese %  rulesistoidentifyas fundamentalresearch   basicandappliedresearchinscienceand   engineering,wheretheresultinginformationis y  ordinarilypublishedandsharedbroadlywithin Mu  thescientificcommunity.Suchresearchcanbe !I  distinguishedfromproprietaryresearchandfrom  industrialdevelopment,design,production,and  productutilization,theresultsofwhichordinarily  arerestrictedforproprietaryreasonsorspecific q nationalsecurityreasonsasdefinedin734.11(b) Em ofthispart.(SeeSupplementNo.1tothispart, A QuestionD(8)).Notethattheprovisionsofthis  sectiondonotapplytoencryptionsoftware  controlledunderECCN5D002for EIreasons  ontheCommerceControlList(SupplementNo.1 i topart774oftheEAR)ortomassmarket =e Аencryptionsoftwarewithsymmetrickeylength 9 exceeding64bitscontrolledunderECCN5D992.   See740.13(e)1% ~%%!% ~oftheEARforcertainexportsand  reexportsunderlicenseexception#!% ~%%1% ~#.   %%%!% ~  (b)Universitybasedresearch 5!]! !% ~%% %  !& ~%%!% ~(1!% ~%%!& ~) Researchconductedbyscientists,engineers, "# orstudentsatauniversitynormallywillbe #$ consideredfundamentalresearch,asdescribedin $% paragraphs(b)(2)through(6)ofthissection. ]%& ( Universitymeansanyaccreditedinstitutionof 1&Y ' highereducationlocatedintheUnitedStates.) '-!(  !& ~%%!% ~(2!% ~%%!& ~) Prepublicationreviewbyasponsorof ("* universityresearchsolelytoinsurethatthe )#+ publicationwouldnotinadvertentlydivulge \*$, proprietaryinformationthatthesponsorhas 0+X%- furnishedtotheresearchersdoesnotchangethe ,,&. statusoftheresearchasfundamentalresearch. . However,releaseofinformationfromacorporate / sponsortouniversityresearcherswherethe 0 researchresultsaresubjecttoprepublication T|1 review,issubjecttotheEAR.(SeeSupplement ( P2 No.1tothispart,QuestionsD(7),D(9),and  $3 D(10)).  4  !& ~%%!% ~(3!% ~%%!& ~) Prepublicationreviewbyasponsorof x 6 universityresearchsolelytoensurethat P x7 publicationwouldnotcompromisepatentrights $L8 doesnotchangethestatusoffundamental  9 research,solongasthereviewcausesnomore  : thanatemporarydelayinpublicationofthe  ; researchresults. t <  !& ~%%!% ~(4)!% ~%%!& ~ Theinitialtransferofinformationfroman D > industrysponsortouniversityresearchersis ? subjecttotheEARwherethepartieshaveagreed @ thatthesponsormaywithholdfrompublication A someoralloftheinformationsoprovided.(See pB SupplementNo.1tothispart,QuestionD(2)). DlC  !& ~%%!% ~(5)!% ~%%!& ~ Universitybasedresearchisnotconsidered E  fundamentalresearchiftheuniversityorits F researchersaccept(attherequest,forexample,of G anindustrialsponsor)otherrestrictionson lH publicationofscientificandtechnicalinformation @hI resultingfromtheprojectoractivity.Scientific <J andtechnicalinformationresultingfromthe K researchwillnonethelessqualifyasfundamental L researchonceallsuchrestrictionshaveexpiredor M havebeenremoved.(SeeSupplementNo.1to d N thispart,QuestionD(7)andD(9)). 8!`O  !& ~%%!% ~(6!% ~%%!& ~) Theprovisionsof734.11ofthispartwill "Q applyifauniversityoritsresearchersaccept #R specificnationalsecuritycontrols(asdefinedin $S 734.11ofthispart)onaresearchprojector `%T activitysponsoredbytheU.S.Government.(See 4&\ U SupplementNo.1tothispart,QuestionsE(1)and '0!V E(2)). '"W   ("X     %%%!% ~  (c)ResearchbasedatFederalagenciesor  АFFRDCs  !% ~%% %  Researchconductedbyscientistsorengineers T| workingforaFederalagencyoraFederally ( P АFundedResearchandDevelopmentCenter  $ А(FFRDC)maybedesignatedas fundamental   researchwithinanyappropriatesystemdevised   bytheagencyortheFFRDCtocontroltherelease x  ofinformationbysuchscientistsandengineers. L t  (SeeSupplementNo.1tothispart,Questions  H  D(8)andD(11)).    %%%!% ~  (d)Corporateresearch   !% ~%% %  !& ~%%!% ~(1!% ~%%!& ~) Researchconductedbyscientistsorengineers Dl  workingforabusinessentitywillbeconsidered D   fundamentalresearchatsuchtimeandtothe  extentthattheresearchersarefreetomake  scientificandtechnicalinformationresultingfrom  theresearchpubliclyavailablewithoutrestriction l ordelaybasedonproprietaryconcernsorspecific @h nationalsecuritycontrolsasdefinedin734.11(b) < ofthispart.   !& ~%%!% ~(2!% ~%%!& ~) Prepublicationreviewbythecompanysolely  toensurethatthepublicationwouldcompromise k noproprietaryinformationprovidedbythe ?g companytotheresearchersisnotconsideredtobe ; aproprietaryrestrictionunderparagraph(d)(1)of  thissection.However,paragraph(d)(1)ofthis  sectiondoesnotauthorizethereleaseof  informationtouniversityresearcherswherethe c   researchresultsaresubjecttoprepublication 7!_! review.(SeeSupplementNo.1tothispart,  "3" QuestionsD(8),D(9),andD(10)). "# Ѐ #$  !& ~%%!% ~(3!% ~%%!& ~) Prepublicationreviewbythecompanysolely $% toensurethatpublicationwouldcompromiseno _%& patentrightswillnotbeconsideredaproprietary 3&[ ' restrictionforthispurpose,solongasthereview '/!( causesnomorethanatemporarydelayin '") publicationoftheresearchresults. ("* Ѐ !& ~%%!% ~ )#+ (4!% ~%%!& ~) However,theinitialtransferofinformation W*$, fromabusinessentitytoresearchersisnot /+W%- authorizedunderthe fundamentalresearch ,+&. provisionwherethepartieshaveagreedthatthe . businessentitymaywithholdfrompublication / someoralloftheinformationsoprovided. 0  %%%!% ~  (e)Researchbasedelsewhere ( P2 !% ~%% %  Researchconductedbyscientistsorengineers  4 whoarenotworkingforanyoftheinstitutions  5 describedinparagraphs(b)through(d)ofthis x 6 sectionwillbetreatedascorporateresearch,as L t7 describedinparagraph(d)ofthissection.(See  H8 SupplementNo.1tothispart,QuestionD(8)).  9     734.9  p < ( !% ~%%!% ~ %%%!% ~          EDUCATIONALINFORMATION % fwil C >  %%% %!% ~%% %          Educationalinformationreferredtoin @ А734.3(b)(3)(iii)ofthispartisnotsubjecttothe A EARifitisreleasedbyinstructionincatalog nB coursesandassociatedteachinglaboratoriesof BjC academicinstitutions.Dissertationresearchis >D discussedin734.8(b)ofthispart.(Referto E SupplementNo.1tothispart,QuestionC(1) F throughC(6)).Notethattheprovisionsofthis G sectiondonotapplytoencryptionsoftware fH controlledunderECCN5D002for EIreasons :bI ontheCommerceControlListortomassmarket 6J encryptionsoftwarewithsymmetrickeylength  K exceeding64bitscontrolledunderECCN5D992. L See740.13(e)oftheEARforcertainexports M andreexportsunderlicenseexception. ^ N      !% ~%%!% ~ %%%!% ~           734.10 #wil "Q  %%% %!% ~%% %          he$ !% ~%%!% ~ %%%!% ~          PATENTAPPLICATIONS r%wil $S  %%% %!% ~%% %          Theinformationreferredtoin734.3(b)(3)(iv)of 0&X U thispartis: ',!V  (a) Informationcontainedinapatentapplication ("X preparedwhollyfromforeign-origintechnical )#Y datawheretheapplicationisbeingsenttothe U*}$Z foreigninventortobeexecutedandreturnedto )+Q%[ theUnitedStatesforsubsequentfilingintheU.S. +%&\ PatentandTrademarkOffice;   (b) Informationcontainedinapatentapplication,  oranamendment,modification,supplementor U} divisionofanapplication,andauthorizedfor ) Q filinginaforeigncountryinaccordancewiththe  % regulationsofthePatentandTrademarkOffice,   37CFRpart5   1      ;or    (c) Informationcontainedinapatentapplication M u  whensenttoaforeigncountrybeforeorwithin "J  sixmonthsafterthefilingofaUnitedStates   patentapplicationforthepurposeofobtainingthe   signatureofaninventorwhowasintheUnited   Stateswhentheinventionwasmadeorwhoisa r  coinventorwithapersonresidingintheUnited Fn  States. B    &     734.11   , GOVERNMENT-SPONSOREDRESEARCH Ai COVEREDBYCONTRACTCONTROLS d, @ (a) IfresearchisfundedbytheU.S.Government,  andspecificnationalsecuritycontrolsareagreed  ',ontoprotectinformationresultingfromthe l research,734.3(b)(3)ofthispartwillnotapply @h toanyexportorreexportofsuchinformationin < violationofsuchcontrols.However,anyexport  orreexportofinformationresultingfromthe  researchthatisconsistentwiththespecific  controlsmaynonethelessbemadeunderthis T| provision. ( P   (b) Examplesof specificnationalsecurity  " controlsincluderequirementsforprepublication  # reviewbytheGovernment,withrighttowithhold y $ permissionforpublication;restrictionson M u% prepublicationdisseminationofinformationto !I& nonU.S.citizensorothercategoriesofpersons;  ' orrestrictionsonparticipationofnon-U.S.  ( citizensorothercategoriesofpersonsinthe  ) Аresearch.Ageneralreferencetooneormore q * exportcontrollawsorregulationsorageneral Em + reminderthattheGovernmentretainstherightto A , classifyisnota specificnationalsecurity - control.(SeeSupplementNo.1tothispart, . QuestionsE(1)andE(2).) /   @@    734.12  ?2 3 !% ~%%!% ~ %%%!% ~          EFFECTONFOREIGNLAWSAND W4rch. 4    %%% %!% ~%% %            REGULATIONS d4 5   Anypersonwhocomplieswithanyofthelicense Dl7 orotherrequirementsoftheEARisnotrelieved @8 oftheresponsibilityofcomplyingwithapplicable 9 foreignlawsandregulations.Conversely,any : personwhocomplieswiththelicenseorother ; requirementsofaforeignlaworregulationisnot h < relievedoftheresponsibilityofcomplyingwith  5(#(#X5 -*  S(!!!!SQUESTIONSANDANSWERS-TECHNOLOGYANDSOFTWARESUBJECTTOTHEEAR  A I&!!!!1Y!!AA1I  (X(#(#(!& ~%%!% ~ThisSupplementNo.1containsexplanatory h questionsandanswersrelatingtotechnologyand < d softwarethatissubjecttotheEAR.Itisintended  8 togivethepublicguidanceinunderstandinghow   BISinterpretsthispart,butisonlyillustrative,not   comprehensive.Inaddition,factsor   Аcircumstancesthatdifferinanymaterialwayfrom `  thosesetforthinthequestionsoranswerswillbe 4\  consideredundertheapplicableprovisionsofthe 0  EAR.Exportersshouldnotethattheprovisions   ofthissupplementdonotapplytoencryption   softwareclassifiedunderECCN5D002for EI   reasonsontheCommerceControlListortomass X  Аmarketencryptionsoftwarewithsymmetrickey ,T  Аlengthexceeding64bitsclassifiedunderECCN ( А5D992.ThisSupplementisdividedintonine  sectionsaccordingtotopicasfollows:#!% ~%%!& ~9#  0 F SectionA:Publicationoftechnologyand  exportsandreexportsoftechnologythathas f beenorwillbepublished.:bFF  /W 0  SectionB:Releaseoftechnologyath(#(#   conferences. ]  0   (#(#   SectionC:Educationalinstruction. F n 0  SectionD:Research,correspondence,and0 X(#(#   informalscientificexchanges. %M 0  SectionE:Federalcontractcontrols.7 (#(# 0  SectionF:Commercialconsulting.! !(#(# 0  SectionG:Software. #(#(# 0  SectionH:Availabilityinapubliclibrary.%(#(# 0  SectionI:Miscellaneous.'(#(# Ѐ (  A(   A(  SectionA:Publication  ! ЀQuestionA(1):Iplantopublishinaforeign   journalascientificpaperdescribingtheresultsof  myresearch,whichisinanarealistedintheEAR   asrequiringalicensetoallcountriesexcept _  Canada.DoIneedalicensetosendacopytomy 3 [ publisherabroad?  / 0 F Answer:No.Thisexporttransactionisnot    subjecttotheEAR.TheEARdonotcover   technologythatisalreadypubliclyavailable,as   wellastechnologythatismadepublicbythe m  transactioninquestion(734.3and734.7of Ai  thispart).Yourresearchresultswouldbemade =  publicbytheplannedpublication.Youwould   notneedalicense. FF QuestionA(2):Wouldtheanswerdiffer  dependingonwhereIworkorwhereIperformed { theresearch? Ow 0 F Answer:No.Ofcourse,theresultwouldbe 9a differentifyouremployeroranothersponsorof  5 yourresearchimposedrestrictionsonits   publication(734.8ofthispart).FF Question(A)3:WouldIneedalicensetosendthe  papertotheeditorsofaforeignjournalforreview r todeterminewhetheritwillbeacceptedfor Fn publication?  B 0 F Answer:No.Thisexporttransactionisnot ",  subjecttotheEARbecauseyouaresubmitting "! thepapertotheeditorswiththeintentionthat #" thepaperwillbepublishediffavorably $# Аreceived(734.7(a)(4)(iii)ofthispart).T%|$FF QuestionA(4):TheresearchonwhichIwillbe >'f!& reportinginmypaperissupportedbyagrant (:"' fromtheDepartmentofEnergy(DOE).Thegrant (#( requiresprepublicationclearancebyDOE.Does )#) thatmakeanydifferenceundertheExport *$* AdministrationRegulations? b+%+  W,&, 0  Answer:No,thetransactionisnotsubjecttothe !, EAR.Butifyoupublishedinviolationofany - DepartmentofEnergycontrolsyouhave . acceptedinthegrant,youmaybesubjectto u/ appropriateadministrative,civil,orcriminal I q0 sanctionsunderotherlaws. E1(#(# QuestionA(5):Weprovideconsultingservices  /3 onthedesign,layout,andconstructionof  4 integratedcircuitplantsandproductionlines.A  5 majorpartofourbusinessisthepublicationfor 6 saletoclientsofdetailedhandbooksandreference W 7 manualsonkeyaspectsonthedesignand +S 8 manufacturingprocesses.Atypicalcostof ' 9 publishingsuchahandbookandmanualmightbe  : $500;thetypicalsalespriceisabout$15,000.Is  ; thepublicationandsaleofsuchhandbooksor { < manualssubjecttotheEAR? Ow= 0  Answer:Yes.Thepriceisabovethecostof 9a? reproductionanddistribution(734.7(a)(1)of  5@ thispart).Thus,youwouldneedtoobtaina  A licenseorqualifyforaLicenseException B beforeyoucouldexportorreexportanyofthese C handbooksormanuals.]D(#(# QuestionA(6):MyPh.D.thesisisontechnology, GoF listedintheEARasrequiringalicensetoall CG destinationsexceptCanada,whichhasneverbeen H publishedforgeneraldistribution.However,the I thesisisavailableattheinstitutionfromwhichI J tookthedegree.DoIneedalicensetosend k K anothercopytoacolleagueoverseas? ?!gL 0  Answer:Thatmaydependonwhereinthe )#QN institutionitisavailable.Ifitisnotreadily #%O availableintheuniversitylibrary(e.g.,byfiling $P inopenstackswithareferenceinthecatalog), %Q itisnot"publiclyavailable"andtheexportor y& R reexportwouldbesubjecttotheEARonthat M'u!S ground.Theexportorreexportwouldnotbe !(I"T subjecttotheEARifyourPh.D.research (#U qualifiedas fundamentalresearchunder )#V 734.8ofthispart.Ifnot,however,youwill *$W needtoobtainalicenseorqualifyforaLicense q+%X Exceptionbeforeyoucansendacopyoutofthe E,m&Y(#(# country.!FF QuestionA(7):Wesellelectronicallyrecorded   information,includingsoftwareanddatabases,at  wholesaleandretail.Ourproductsareavailable   bymailordertoanymemberofthepublic,though _  intendedforspecialistsinvariousfields.Theyare 3 [ pricedtomaximizesalestopersonsinthose  / fields.Doweneedalicensetosellourproducts   toforeigncustomers?    0 F Answer:Youwouldnotneedalicensefor   otherwisecontrolledtechnologyorsoftwareif m  thetechnologyandsoftwarearemadepublicly Ai  availableatapricethatdoesnotexceedthecost =  ofproductionanddistributiontothetechnical   community.Evenifpricedatahigherlevel,the   exportorreexportofthetechnologyorsoftware  sourcecodeinalibraryaccessibletothepublic e isnotsubjecttotheEAR(734.7(a)ofthis 9a part). 5FF  SectionB:Conferences   QuestionB(1):Ihavebeeninvitedtogiveapaper   ataprestigiousinternationalscientificconference  onasubjectlistedasrequiringalicenseunderthe  EARtoallcountries,exceptCanada.Scientistsin ] thefieldaregivenanopportunitytosubmit 1Y applicationstoattend.Invitationsaregivento - thosejudgedtobetheleadingresearchersinthe  field,andattendanceisbyinvitationonly.   Attendeeswillbefreetotakenotes,butnotmake !  electronicorverbatimrecordingsofthe U"}! presentationsordiscussions.Someofthe )#Q" attendeeswillbeforeigners.DoIneedalicense #%# togivemypaper? $$ 0 F Answer:No.Releaseofinformationatanopen & & conferenceandinformationthathasbeen '!' releasedatanopenconferenceisnotsubjectto c("( theEAR.Theconferenceyoudescribefitsthe 7)_#) definitionofanopenconference(734.7(a)of  *3$* thispart).*%+FF  +%, QuestionB(2):Woulditmakeanydifferenceif !, therewereaprohibitiononmakinganynotesor - otherpersonalrecordofwhattranspiresatthe . conference? u/ 0  Answer:Yes.Toqualifyasan"open" _ 1 conference,attendeesmustbepermittedtotake 3 [2 notesorotherwisemakeapersonalrecord  /3 (althoughnotnecessarilyarecording).Ifnote  4 takingorthemakingofpersonalrecordsis  5 altogetherprohibited,theconferencewouldnot 6 beconsidered open.W 7(#(# QuestionB(3):Woulditmakeanydifferenceif Ai 9 therewerealsoaregistrationfee? = : 0  Answer:Thatwoulddependonwhetherthefee '< isreasonablyrelatedtocostsandreflectsan = intentionthatallinterestedandtechnically > qualifiedpersonsshouldbeabletoattend {? (734.7(a)(4)(ii)ofthispart).Ow@(#(# QuestionB(4):Woulditmakeanydifferenceif 9aB theconferenceweretotakeplaceinanother  5C country?  D 0  Answer:No.F(#(# QuestionB(5):MustIhavealicensetosendthe H paperIproposetopresentatsuchaforeign I conferencetotheconferenceorganizerfor ] J review? 1!YK 0  Answer:No.Alicenseisnotrequiredunder #CM theEARtosubmitpaperstoforeignorganizers #N ofopenconferencesorotheropengatherings $O withtheintentionthatthepaperswillbe %P deliveredattheconference,andsomade k& Q publiclya%  vailable,iffavorablyreceived.The?'g!R(#(#   submissionofthepapersisnotsubjecttothe 4(\"S   EAR(734.7(a)(4)(iii)ofthispart). )0#T QuestionB(6):Wouldtheanswerstoanyofthe +&W foregoingquestionsbedifferentifmyworkwere ! supportedbytheFederalGovernment?  0 F Answer:No.Youmayexportandreexportthe  papers,evenifthereleaseofthepaperviolates   anyagreementsyouhavemadewithyour _  governmentsponsor.However,nothinginthe 3 [ EARrelievesyouofresponsibilityfor  / conformingtoanycontrolsyouhaveagreedto   inyourFederalgrantorcontract.  FF  SectionC:EducationalInstruction    QuestionC(1):Iteachauniversitygraduate   courseondesignandmanufactureofvery W  Аhigh-speedintegratedcircuitry.Manyofthe +S  studentsareforeigners.DoIneedalicenseto ' teachthiscourse?  0 F Answer:No.Releaseofinformationby  instructionincatalogcoursesandassociated  teachinglaboratoriesofacademicinstitutionsis e notsubjecttotheEAR(734.9ofthispart).9aFF QuestionC(2):Woulditmakeanydifferenceif #K someofthestudentswerefromcountriestowhich  exportlicensesarerequired?  0 F Answer:No.FF QuestionC(3):WoulditmakeanydifferenceifI   talkaboutrecentandasyetunpublishedresults s! frommylaboratoryresearch? G"o  0 F Answer:No.0$X"FF QuestionC(4):Evenifthatresearchisfundedby &B $ theGovernment? &!% 0 F Answer:Eventhen,butyouwouldnotbe (#' releasedfromanyseparateobligationsyouhave )#( acceptedinyourgrantorcontract.*$)FF QuestionC(5):WoulditmakeanydifferenceifI j,&+ wereteachingataforeignuniversity? !+ 0  Answer:No. -(#(# QuestionC(6):Weteachproprietarycourseson  / designandmanufactureofhigh-performance  0 machinetools.Istheinstructioninourclasses u 1 subjecttotheEAR? I q2 0  Answer:Yes.Thatinstructionwouldnot 3[4 qualifyas releaseofeducationalinformation / 5 under734.9ofthispartbecauseyour  6 proprietarybusinessdoesnotqualifyasan  7  academicinstitutionwithinthemeaningof  8 734.9ofthispart.Conceivably,however,the W 9 instructionmightqualifyas releaseatanopen +S : seminar,orotheropengatheringunder '; А734.7(a)ofthispart.Theconditionsfor < qualificationofsuchaseminarorgatheringas = А open,includingafee reasonablyrelatedto {> costs(oftheconference,notofproducingthe Ow? data)andreflectinganintentionthatall #K@ interestedandtechnicallyqualifiedpersonsbe A abletoattend,wouldhavetobesatisfied.B(#(#  SectionD:Research,Correspondence,and D InformalScientificExchanges  E QuestionD(1):DoIneedalicenseinorderfora rG foreigngraduatestudenttoworkinmy FnH laboratory?  BI 0  Answer:Notiftheresearchonwhichthe ",K foreignstudentisworkingqualifiesas "L  fundamentalresearchunder734.8ofthis #M part.Inthatcase,theresearchisnotsubjectto $N theEAR.T%|O(#(# QuestionD(2):Ourcompanyhasenteredintoa >'f!Q cooperativeresearcharrangementwitharesearch (:"R groupatauniversity.Oneoftheresearchersin (#S thatgroupisaPRCnational.Wewouldliketo )#T sharesomeofourproprietaryinformationwith *$U theuniversityresearchgroup.Wehavenowayof b+%V guaranteeingthatthisinformationwillnotgetinto 6,^&W thehandsofthePRCscientist.Doweneedto ! obtainalicensetoprotectagainstthatpossibility?  Ѐ  0 F Answer:No.TheEARdonotcoverthe  disclosureofinformationtoanyscientists,   engineers,orstudentsataU.S.universityinthe _  courseofindustry-universityresearch 3 [ collaborationunderspecificarrangements  / betweenthefirmandtheuniversity,provided   thesearrangementsdonotpermitthesponsorto    withholdfrompublicationanyofthe   informationthatheprovidestotheresearchers. W  However,ifyourcompanyandtheresearchers +S  haveagreedtoaprohibitiononpublication, '  thenyoumustobtainalicenseorqualifyfora   LicenseExceptionbeforetransferringthe   informationtotheuniversity.Itisimportant {  thatyouasthecorporatesponsorandthe Ow universitygettogethertodiscusswhether #K foreignnationalswillhaveaccesstothe  information,sothatyoumayobtainany  necessaryauthorizationpriortotransferringthe  informationtotheresearchteam.sFF QuestionD(3):Myuniversitywillhosta ] prominentscientistfromthePRCwhoisan 1Y expertonresearchinengineeredceramicsand - compositematerials.DoIrequirealicensebefore  tellingourvisitoraboutmylatest,asyet  unpublished,researchresultsinthosefields?  Ѐ U} 0 F Answer:Probablynot.Ifyouperformedyour J r researchattheuniversity,andyouweresubject !F  tonocontractcontrolsonreleaseofthe !! research,yourresearchwouldqualifyas ""  fundamentalresearch(734.8(a)ofthispart). ## Informationarisingduringorresultingfrom n$$ suchresearchisnotsubjecttotheEAR B%j% А(734.3(b)(3)ofthispart).&> &FF 0 F Youshouldprobablyassume,however,that (("( yourvisitorwillbedebriefedlaterabout (") anythingofpotentialmilitaryvaluehelearns )#* fromyou.Ifyouareconcernedthatgivingsuch |*$+ informationtohim,eventhoughpermitted, P+x%, couldjeopardizeU.S.securityinterests,the$,L&-FF CommerceDepartmentcanputyouintouch !- withappropriateGovernmentscientistswhocan . adviseyou.Sendwrittencommunications,via / courier,to:u0(#(#   DepartmentofCommerce _ 2   BureauofIndustryandSecurity T |3   Room2705 I q4   14thStreetandPennsylvaniaAve.,NW. > f5   Washington,DC20230 3[6 QuestionD(4):WoulditmakeanydifferenceifI E 8 wereproposingtotalkwithaPRCexpertin  9 China?  : 0  Answer:No,iftheinformationinquestion  < aroseduringorresultedfromthesame =  fundamentalresearch.W>(#(# QuestionD(5):CouldIproperlydosomework Ai@ withhiminhisresearchlaboratoryinsideChina? =A 0  Answer:Applicationabroadofpersonal C knowledgeortechnicalexperienceacquiredin D theUnitedStatesconstitutesanexportofthat E Аknowledgeandexperience,andsuchanexport ZF maybesubjecttotheEAR.Ifanyofthe .VG Аknowledgeorexperienceyouexportinthisway *H requiresalicenseundertheEAR,youmust I obtainsuchalicenseorqualifyforaLicense J Exception.~ K(#(# QuestionD(6):Iwouldliketocorrespondand h"M shareresearchresultswithanIranianexpertinmy <#dN field,whichdealswithtechnologythatrequiresa $8O licensetoalldestinationsexceptCanada.DoI $ P needalicensetodoso? %Q    D 0  Answer:Notaslongaswearestilltalking '!S aboutinformationthataroseduringorresulted u("T fromresearchthatqualifiesas fundamental I)q#U undertherulesspelledoutin734.8(a)ofthis *E$V part.*%W(#(#  +&X QuestionD(7):Supposetheresearchinquestion ! werefundedbyacorporatesponsorandIhad  agreedtoprepublicationreviewofanypaper  arisingfromtheresearch? u 0 F Answer:Whetheryourresearchwouldstill _  qualifyas fundamentalwoulddependonthe 3 [ natureandpurposeoftheprepublication  / review.Ifthereviewisintendedsolelyto   ensurethatyourpublicationswillneither    compromisepatentrightsnorinadvertently   divulgeproprietaryinformationthatthesponsor W  hasfurnishedtoyou,theresearchcouldstill +S  qualifyas fundamental.Butifthesponsor '  willconsideraspartofitsprepublicationreview   whetheritwantstoholdyournewresearch   resultsastradesecretsorotherwiseproprietary {  information(evenifyourvoluntarycooperation Ow wouldbeneededforittodoso),yourresearch #K wouldnolongerqualifyas fundamental.As  usedintheseregulationsitistheactualand  intendedopennessofresearchresultsthat  primarilydetermineswhethertheresearch s countsas fundamentalandsoisnotsubjectto Go theEAR.CFF QuestionD(8):Indeterminingwhetherresearch - isthusopenandthereforecountsas   fundamental,doesitmatterwhereorinwhat  sortofinstitutiontheresearchisperformed?  0 F Answer:Inprinciple,no. Fundamental k  researchisperformedinindustry,Federal ?!g  laboratories,orothertypesofinstitutions,as ";! wellasinuniversities.Theregulations "" introducesomeoperationalpresumptionsand ## proceduresthatcanbeusedbothbythose $$ subjecttotheregulationsandbythosewho c%% administerthemtodeterminewithsome 7&_ & precisionwhetheraparticularresearchactivity  '3!' iscovered.Recognizingthatcommonand '"( predictablenormsoperateindifferenttypesof (") institutions,theregulationsusetheinstitutional )#* locusoftheresearchasastartingpointforthese [*$+ presumptionsandprocedures.Nonetheless,it /+W%, remainsthetypeofresearch,andparticularly,+&-FF theintentandfreedomtopublish,thatidentifies !-  fundamentalresearch,nottheinstitutional . locus(734.8(a)ofthispart)./(#(# QuestionD(9):Iamdoingresearchon  1 Аhigh-poweredlasersinthecentralbasic-research _ 2 laboratoryofanindustrialcorporation.Iam 3 [3 requiredtosubmittheresultsofmyresearchfor  /4 prepublicationreviewbeforeIcanpublishthem  5 orotherwisemakethempublic.Iwouldliketo  6 compareresearchresultswithascientific 7 colleaguefromVietnamanddiscusstheresultsof W 8 theresearchwithherwhenshevisitstheUnited +S 9 States.DoIneedalicensetodoso? ' : 0  Answer:Youprobablydoneedalicense  < А(734.8(d)ofthispart).However,iftheonly  = restrictiononyourpublishinganyofthat > informationisaprepublicationreviewsolelyto e? ensurethatpublicationwouldcompromiseno 9a@ patentrightsorproprietaryinformation  5A providedbythecompanytotheresearcheryour  B researchmaybeconsidered fundamental C research,inwhichcaseyoumaybeableto D shareinformationbecauseitisnotsubjecttothe ]E EAR.Notethattheinformationwillbesubject 1YF totheEARiftheprepublicationreviewis -G intendedtowithholdtheresultsoftheresearch H frompublication.I(#(# QuestionD(10):SupposeIhavealreadycleared K mycompany'sreviewprocessandamfreeto k L publishalltheinformationIintendtosharewith ?!gM mycolleague,thoughIhavenotyetpublished? ";N 0  Answer:Iftheclearancefromyourcompany #%P meansthatyouarefreetomakealltheinfor $Q mationpubliclyavailablewithoutrestrictionor %R delay,theinformationisnotsubjecttotheEAR. y& S (734.8(d)ofthispart)M'u!T(#(# QuestionD(11):Iworkasaresearcherata 7)_#V Government-owned,contractor-operatedresearch  *3$W center.MayIsharetheresultsofmyunpublished *%X researchwithforeignnationalswithoutconcern +%Y forexportcontrolsundertheEAR? ! 0 F Answer:Thatisuptothesponsoringagency   andthecenter'smanagement.Ifyourresearch  isdesignated fundamentalresearchwithinany   appropriatesystemdevisedbythemtocontrol _  releaseofinformationbyscientistsand 3 [ engineersatthecenter,itwillbetreatedassuch  / bytheCommerceDepartment,andtheresearch   willnotbesubjecttotheEAR.Otherwise,you    wouldneedtoobtainalicenseorqualifyfora   LicenseException,excepttopublishor W  otherwisemaketheinformationpublic +S  (734.8(c)ofthispart).' FF  SectionE:FederalContractControls    Ѐ  QuestionE(1):Inacontractforperformanceof  researchenteredintowiththeDepartmentof  Defense(DOD),wehaveagreedtocertain { nationalsecuritycontrols.DODistohaveninety Ow daystoreviewanypapersweproposedbefore #K theyarepublishedandmustapproveassignment  ofanyforeignnationalstotheproject.Thework  inquestionwouldotherwisequalifyas   fundamentalresearchsectionunder734.8of s thispart.Istheinformationarisingduringor Go resultingfromthissponsoredresearchsubjectto C theEAR?  0 F Answer:Under734.11ofthispart,anyexport  orreexportofinformationresultingfrom   governmentsponsoredresearchthatis !  inconsistentwithcontractcontrolsyouhave U"}! agreedtowillnotqualifyas fundamental )#Q" researchandanysuchexportorreexport #%# wouldbesubjecttotheEAR.Anysuchexport $$ orreexportthatisconsistentwiththecontrols %% willcontinuetobeeligibleforexportand y& & reexportunderthe fundamentalresearchrule M'u!' setforthin734.8(a)ofthispart.Thus,ifyou !(I"( abidebythespecificcontrolsyouhaveagreed (#) to,youneednotbeconcernedaboutviolating )#* theEAR.Ifyouviolatethosecontrolsand *$+ exportorreexportinformationas fundamental q+%, researchunder734.8(a)ofthispart,youmayE,m&-FF subjectyourselftothesanctionsprovidedfor !- undertheEAR,includingcriminalsanctions,in . additiontoadministrativeandcivilpenaltiesfor / breachofcontractunderotherlaw.u0(#(# QuestionE(2):DotheExportAdministration _ 2 Regulationsrestrictmyabilitytopublishthe 3 [3 resultsofmyresearch?  /4 0  Answer:TheExportAdministration  6 Regulationsarenotthemeansforenforcingthe 7 nationalsecuritycontrolsyouhaveagreedto.If  8 suchapublicationviolatesthecontract,you m 9 wouldbesubjecttoadministrative,civil,and Ai : possiblecriminalpenaltiesunderotherlaw. = ; Ѐ <(#(#  SectionF:CommercialConsulting  = QuestionF(1):IamaprofessorataU.S. ? university,withexpertiseindesignandcreation @ ofsubmicrondevices.Ihavebeenaskedtobea pA consultantfora third-worldcompanythat DlB Аwishestomanufacturesuchdevices.DoIneeda @C licensetodoso? D 0  Answer:Quitepossiblyyoudo.Application F abroadofpersonalknowledgeortechnical G experienceacquiredintheUnitedStates ~H constitutesanexportofthatknowledgeand RzI experiencethatissubjecttotheExport &NJ AdministrationRegulations.Ifanypartofthe "K knowledgeorexperienceyourexportor  L reexportdealswithtechnologythatrequiresa !M licenseundertheEAR,youwillneedtoobtain v"N alicenseorqualifyforaLicenseException.J#rO(#(#  SectionG:Software   2       'F!S ЇQuestionG(1):Istheexportorreexportof ! softwareinmachinereadablecodesubjecttothe  EARwhenthesourcecodeforsuchsoftwareis  publiclyavailable? u 0 F Answer:Ifthesourcecodeofasoftware _  programispubliclyavailable,thenthemachine 3 [ readablecodecompiledfromthesourcecodeis  / softwarethatispubliclyavailableandtherefore   notsubjecttotheEAR.  FF QuestionG(2): ` Istheexportorreexportof   softwaresoldatapricethatdoesnotexceedthe m  costofreproductionanddistributionsubjecttothe Ai  EAR? =  0 F Answer:Softwareinmachinereadablecodeis ' publiclyavailableifitisavailabletoa  communityatapricethatdoesnotexceedthe  costofreproductionanddistribution.Such { reproductionanddistributioncostsmayinclude Ow variableandfixedallocationsofoverheadand #K normalprofitforthereproductionand  distributionfunctionseitherinyourcompanyor  inathirdpartydistributionsystem.Inyour  company,suchcostsmaynotincluderecovery s fordevelopment,design,oracquisition.Inthis Go case,theproviderofthesoftwaredoesnot C receiveafeefortheinherentvalueofthe  software.FF QuestionG(3):Istheexportorreexportof   softwaresubjecttotheEARifitissoldataprice !  BISconcludesinaclassificationlettertobe U"}! sufficientlylowsoasnottosubjectittotheEAR? )#Q" 0 F Answer:Inresponsetoclassificationrequests, % % BISmaychoosetoclassifycertainsoftwareas & & notsubjecttotheEAReventhoughitissoldat '!' apriceabovethecostsofreproductionand c("( distributionaslongasthepriceisnonetheless 7)_#) sufficientlylowtoqualifyforsucha  *3$* classificationinthejudgmentofBIS.*%+FF  +%,  SectionH:AvailableinaPublicLibrary !,  QuestionH(1):Istheexportorreexportof  . informationsubjecttotheEARifitisavailablein / alibraryandsoldthroughanelectronicorprint  0 service? _ 1 0  Answer:Electronicandprintservicesforthe I q3 distributionofinformationmayberelatively  E4 expensiveinthemarketplacebecauseofthe  5 valuevendorsaddinretrievingandorganizing 6 informationinausefulway.Ifsuch  7 informationisalsoavailableinalibrary--itself m 8 accessibletothepublic--orhasbeenpublished Ai 9 inanyway,thatinformationis publicly = : availableforthosereasons,andthe  ; informationitselfcontinuesnottobesubjectto  < theEAReventhoughyouaccessthe = informationthroughanelectronicorprint e> serviceforwhichyouoryouremployerpaya 9a? substantialfee. 5@(#(# QuestionH(2):Istheexportorreexportof B informationsubjecttotheEARiftheinformation C isavailableinanelectronicforminalibraryatno D chargetothelibrarypatron? sE 0  Answer:Informationavailableinanelectronic ]G formatnochargetothelibrarypatronina 1YH libraryaccessibletothepublicisinformation -I publiclyavailableeventhoughthelibrarypays J asubstantialsubscriptionfeefortheelectronic  K retrievalservice.!L(#(# QuestionH(3):Istheexportorreexportof k#N informationsubjecttotheEARiftheinformation ?$gO isavailableinalibraryandsoldformorethanthe %;P costofreproductionanddistribution? % Q 0  Answer:Informationfrombooks,magazines, '!S dissertations,papers,electronicdatabases,and("T(#(#   otherinformationavailableinalibrarythatis )#U   accessibletothepublicisnotsubjecttothe n*$V 0  EAR.Thisistrueevenifyoupurchasesucha B+j%W bookatmorethanthecostofreproductionand ,>&X(#(# distribution.Inotherwords,suchinformation ! is publiclyavailableeventhoughtheauthor  makesaprofitonyourparticularpurchasefor  theinherentvalueoftheinformation.uFF  F     `     h SectionI:Miscellaneous  _  QuestionI(1):ThemanufacturingplantthatI I q workatisplanningtobeginadmittinggroupsof  E thegeneralpublictotourtheplantfacilities.We    areconcernedthatalicensemightberequiredif   thetourgroupsincludeforeignnationals.Would   suchatourconstituteanexport?Ifso,isthe m  exportsubjecttotheEAR? Ai  0 F Answer:TheEARdefineexportsandreexports +S  oftechnologytoincludereleasethroughvisual ' inspectionbyforeignnationalsofU.S.-origin  equipmentandfacilities.Suchanexportor  reexportqualifiesunderthe publiclyavailable { provisionandwouldnotbesubjecttotheEAR Ow solongasthetouristrulyopentoallmembers #K ofthepublic,includingyourcompetitors,and  youdonotchargeafeethatisnotreasonably  relatedtothecostofconductingthetours.  Otherwise,youwillhavetoobtainalicense,or s qualifyforaLicenseException,priorto Go permittingforeignnationalstotouryour C facilities(734.7ofthispart).FF Ѐ   QuestionI(2):Istheexportorreexportof  informationsubjecttotheEARiftheinformation   isnotinalibraryorpublished,butsoldataprice !  thatdoesnotexceedthecostofreproductionand U"}! distribution? )#Q" 0 F Answer:Informationthatisnotinalibrary %;$ accessibletothepublicandthathasnotbeen % % publishedinanyway,maynonethelessbecome & &  publiclyavailableifyoumakeitboth '!' availabletoacommunityofpersonsandifyou c("( sellitatnomorethanthecostofreproduction 7)_#) anddistribution.Suchreproductionand  *3$* distributioncostsmayincludevariableand *%+ fixedcostallocationsofoverheadandnormal+%,FF profitforthereproductionanddistribution !, functionseitherinyourcompanyorinathird - partydistributionsystem.Inyourcompany, . suchcostsmaynotincluderecoveryfor u/ development,design,oracquisitioncostsofthe I q0 technologyorsoftware.Thereasonforthis  E1 conclusionisthattheproviderofthe  2 informationreceivesnothingfortheinherent  3 valueoftheinformation. 4(#(#    D   QuestionI(3):Istheexportorreexportof 6 informationcontributedtoanelectronicbulletin W 7 boardsubjecttotheEAR? +S 8 0  Answer:Assumeeachofthefollowing:= :(#(# 0  1.Informationisuploadedtoanelectronic '< bulletinboardbyapersonthatistheowneror = originatoroftheinformation;>(#(# 0  2.Thatpersondoesnotchargeafeetothe @ bulletinboardadministratororthesubscribers eA ofthebulletinboard;and9aB(#(# 0  3.Thebulletinboardisavailablefor #KD subscriptiontoanysubscriberinagiven E communityregardlessofthecostof F subscription.G(#(# 0  Suchinformationis publiclyavailableand I thereforenotsubjecttotheEARevenifitisnot ] J elsewherepublishedandisnotinalibrary.The 1!YK reasonforthisconclusionisthatthebulletin "-L boardsubscriptionchargesorlinechargesare "M fordistributionexclusively,andtheproviderof #N theinformationreceivesnothingforthe $O inherentvalueoftheinformation.U%}P(#(# QuestionI(4):Istheexportorreexportof >'f!R patentedinformationfullydisclosedonthepublic (:"S recordsubjecttotheEAR? (#T 0  Answer:Informationtotheextentitis *$V disclosedonthepatentrecordopentothepublic +%W(#(# isnotsubjecttotheEAReventhoughyoumay ! usesuchinformationonlyafterpayingafeein  excessofthecostsofreproductionand  distribution.Inthiscasethesellerdoesreceive u afeefortheinherentvalueofthetechnicaldata; I q however,theexportorreexportofthe  E informationisnonethelessnotsubjecttothe FF EARbecauseanypersoncanobtainthe ! technologyfromthepublicrecordandfurther  discloseorpublishtheinformation.Forthat  reason,itisimpossibletoimposeexport u  controlsthatdenyaccesstotheinformation.I q (#(#  3 [    E     E   (X(S(!!!!!!!!!!S@_ _  ;% ~%%!% ~;& ~%%;% ~GUIDELINESFOR#;% ~%%;& ~{##!% ~%%;% ~\#L  M  !& ~%%!% ~;& ~%%!& ~DEMINIMIS#;% ~%%;& ~##!% ~%%;% ~%#L  M  !& ~%%!% ~;& ~%%!& ~ԀRULES#;% ~%%;& ~##!% ~%%;% ~#L  M   A I&!!!!1Y!!AA1I(X(#(#(.-!& ~%%!% ~ ;& ~%%!& ~* ,X` X*(a) CalculationofthevalueofcontrolledU.S. h origincontentinforeignmadeitemsistobe @ h performedforthepurposesof734.4ofthispart,  < todeterminewhetherthepercentageofU.S.   origincontentis#;% ~%%;& ~##!% ~%%;% ~ #L  M  !& ~%%!% ~;& ~%%!& ~deminimis#;% ~%%;& ~##!% ~%%;% ~#L  M  !& ~%%!% ~;& ~%%!& ~.(Notethatyoudo   notneedtomakethesecalculationsiftheforeign   madeitemdoesnotrequirealicensetothe d  destinationinquestion.)Usethefollowing 8`  guidelinestoperformsuchcalculations:  4          #;% ~%%;& ~~##!% ~%%;% ~#L  M  !& ~%%!% ~;& ~%%!& ~(1)U.S.origincontrolledcontent. #;% ~%%;& ~w##!% ~%%;% ~#L  M  !& ~%%!% ~;& ~%%!& ~ԀTo   identifyU.S.origincontrolledcontentfor   purposesofthe#;% ~%%;& ~6##!% ~%%;% ~U#L  M  !& ~%%!% ~;& ~%%!& ~deminimis#;% ~%%;& ~:##!% ~%%;% ~Y#L  M  !& ~%%!% ~;& ~%%!& ~Ԁrules,youmust   determinetheExportControlClassification v  Number(ECCN)ofeachU.S.originitem Jr incorporatedintoaforeignmadeproduct.Then, F youmustidentifywhich,ifany,ofthoseU.S.  originitemswouldrequirealicensefromBISif  theyweretobeexportedorreexported(inthe  forminwhichyoureceivedthem)totheforeign n madeproductscountryofdestination.For Bj purposesofidentifyingU.S.origincontrolled > content,youshouldconsulttheCommerce  CountryChartinSupplementNo.1topart738of  theEARandcontrolsdescribedinpart746ofthe  EAR.Part744oftheEARshouldnotbeusedto f identifycontrolledU.S.contentforpurposesof :b determiningtheapplicabilityofthe#;% ~%%;& ~##!% ~%%;% ~#L  M  !& ~%%!% ~;& ~%%!& ~deminimis#;% ~%%;& ~j##!% ~%%;% ~#L  M  !& ~%%!% ~;& ~%%!& ~ 6 rules.InidentifyingU.S.origincontrolled   content,donottakeaccountofcommodities,   software,ortechnologythatcouldbeexportedor !  reexportedtothecountryofdestinationwithouta ^"! license(designatedas NLR)orunderLicense 2#Z" ExceptionGBS(seepart740oftheEAR). $.# Commoditiessubjectonlytoshortsupplycontrols $$ arenotincludedincalculatingU.S.content. %%   #;% ~%%;& ~##!% ~%%;% ~.#L  M  !& ~%%!% ~;& ~%%!& ~  Notetoparagraph(a)(1): #;% ~%%;& ~##!% ~%%;% ~ #L  M  !& ~%%!% ~;& ~%%!& ~ԀU.S.origin '!' controlledcontentisconsideredincorporatedfor p("( #;% ~%%;& ~##!% ~%%;% ~#L  M  !& ~%%!% ~;& ~%%!& ~deminimis#;% ~%%;& ~##!% ~%%;% ~#L  M  !& ~%%!% ~;& ~%%!& ~ԀpurposesiftheU.S.origincontrolled D)l#) itemis:essentialtothefunctioningoftheforeign *@$* equipment;customarilyincludedinsalesofthe *%+ foreignequipment;andreexportedwiththe +%, foreignproduceditem.U.S.originsoftwaremay h, bebundledwithforeignproducedcommodities; < d- see734.4ofthispart.Forpurposesof  8. determining#;% ~%%;& ~Y##!% ~%%;% ~x#L  M  !& ~%%!% ~;& ~%%!& ~deminimis#;% ~%%;& ~##!% ~%%;% ~#L  M  !& ~%%!% ~;& ~%%!& ~Ԁlevels,technologyand  / sourcecodeusedtodesignorproduceforeign  0 madecommoditiesorsoftwarearenotconsidered  1 tobeincorporatedintosuchforeignmade ` 2 commoditiesorsoftware. 4\3       #;% ~%%;& ~~##!% ~%%;% ~#L  M  !& ~%%!% ~;& ~%%!& ~(2)ValueofU.S.origincontrolledcontent. #;% ~%%;& ~\##!% ~%%;% ~{#L  M  !& ~%%!% ~;& ~%%!& ~ F 5 ThevalueoftheU.S.origincontrolledcontent  6 shallreflectthefairmarketpriceofsuchcontent  7 inthemarketwheretheforeignproductisbeing  8 produced.Inmostcases,thisvaluewillbethe q 9 sameastheactualcosttotheforeign Em: manufactureroftheU.S.origincommodity, A; technology,orsoftware.Whentheforeign < manufacturerandtheU.S.supplierareaffiliated = andhavespecialarrangementsthatresultin > belowmarketpricing,thevalueoftheU.S.origin i? controlledcontentshouldreflectfairmarket =e@ pricesthatwouldnormallybechargedto 9A unaffiliatedcustomersinthesameforeignmarket.  B Iffairmarketvaluecannotbedeterminedbased C uponactualarmslengthtransactiondataforthe D U.S.origincontrolledcontentinquestion,then aE youmustdetermineanotherreliablevaluation 5]F methodtocalculateorderivethefairmarket  1G value.Suchmethodsmayincludetheuseof H comparablemarketpricesorcostsofproduction  I anddistribution.TheEARdonotrequire !J calculationsbaseduponanyoneaccounting Y"K systemorU.S.accountingstandards.However, -#UL themethodyouusemustbeconsistentwithyour $)M businesspractice. $N         #;% ~%%;& ~$##!% ~%%;% ~C#L  M  !& ~%%!% ~;& ~%%!& ~(3)Foreignmadeproductvalue. #;% ~%%;& ~i ##!% ~%%;% ~ #L  M  !& ~%%!% ~;& ~%%!& ~ & P       #;% ~%%;& ~& ##!% ~%%;% ~E #L  M  !& ~%%!% ~;& ~%%!& ~(i)General. #;% ~%%;& ~ ##!% ~%%;% ~ #L  M  !& ~%%!% ~;& ~%%!& ~ԀThevalueoftheforeignmade '!Q productshallreflectthefairmarketpriceofsuch ("R productinthemarketwheretheforeignproductis c)#S sold.Inmostcases,thisvaluewillbethesameas 7*_$T theactualcosttoabuyeroftheforeignmade  +3%U product.Whentheforeignmanufacturerandthe +&V buyeroftheirproductareaffiliatedandhave ! specialarrangementsthatresultinbelowmarket  pricing,thevalueoftheforeignmadeproduct  shouldreflectfairmarketpricesthatwould u normallybechargedtounaffiliatedcustomersin I q thesameforeignmarket.Iffairmarketvalue  E cannotbedeterminedbaseduponactualarms   lengthtransactiondatafortheforeignmade   productinquestion,thenyoumustdetermine   anotherreliablevaluationmethodtocalculateor m   derivethefairmarketvalue.Suchmethodsmay Ai  includetheuseofcomparablemarketpricesor =  costsofproductionanddistribution.TheEARdo   notrequirecalculationsbaseduponanyone   accountingsystemorU.S.accountingstandards.   However,themethodyouusemustbeconsistent e  withyourbusinesspractice. 9a      #;% ~%%;& ~ ##!% ~%%;% ~ #L  M  !& ~%%!% ~;& ~%%!& ~(ii)ForeignMadeSoftware. #;% ~%%;& ~K##!% ~%%;% ~j#L  M  !& ~%%!% ~;& ~%%!& ~ԀIn #K calculatingthevalueofforeignmadesoftwarefor # purposesofthe#;% ~%%;& ~##!% ~%%;% ~ #L  M  !& ~%%!% ~;& ~%%!& ~deminimis#;% ~%%;& ~ ##!% ~%%;% ~*#L  M  !& ~%%!% ~;& ~%%!& ~Ԁrules,youmaymake  anestimateoffuturesalesofthatforeign  software.Thetotalvalueofforeignmade w softwarewillbethesumof:thevalueofactual Ks salesofthatsoftwarebasedonordersreceivedat G thetimetheforeignsoftwareincorporatesU.S.  origincontentand,ifapplicable;andanestimate  ofallfuturesalesofthatsoftware.        #;% ~%%;& ~##!% ~%%;% ~#L  M  !& ~%%!% ~;& ~%%!& ~Notetoparagraph(a)(3): #;% ~%%;& ~i##!% ~%%;% ~#L  M  !& ~%%!% ~;& ~%%!& ~ԀRegardlessofthe  accountingsystems,standard,orconventionsyou ] useintheoperationofyourbusiness,youmaynot 1 Y depreciatereportedfairmarketvaluesor !-  otherwisereducefairmarketvaluesthrough !! relatedaccountingconventions.Valuesmaybe "" historicorprojected.However,youmayrelyon ## projectedvaluesonlytotheextentthatthey U$}$ remainconsistentwithyourdocumentation. )%Q%         #;% ~%%;& ~##!% ~%%;% ~<#L  M  !& ~%%!% ~;& ~%%!& ~(4)CalculatingpercentagevalueofU.S. ';!' originitems. #;% ~%%;& ~&##!% ~%%;% ~E#L  M  !& ~%%!% ~;& ~%%!& ~ԀTodeterminethepercentagevalue '"( ofU.Sorigincontrolledcontentincorporatedin, (") commingledwith,orbundledwiththeforeign )#* produceditem,dividethetotalvalueoftheU.S. j*$+ origincontrolledcontentbytheforeignmade >+f%, itemvalue,thenmultiplytheresultingnumber ,:&- times100.Ifthepercentagevalueofincorporated !- U.S.originitemsisequaltoorlessthanthe#;% ~%%;& ~ ##!% ~%%;% ~+#L  M  !& ~%%!% ~;& ~%%!& ~de . minimis#;% ~%%;& ~##!% ~%%;% ~#L  M  !& ~%%!% ~;& ~%%!& ~Ԁleveldescribedin734.4oftheEAR, / thentheforeignmadeitemisnotsubjecttothe u0 EAR. I q1     #;% ~%%;& ~j##!% ~%%;% ~#L  M  !& ~%%!% ~;& ~%%!& ~  (b)Onetimereport 3 [3  #;% ~%%;& ~ ##!% ~%%;% ~ #L  M  !& ~%%!% ~;& ~%%!& ~ Asstatedinparagraphs(c)and(d)of734.4,a  E5 onetimereportisrequiredbeforerelianceonthe  6 #;% ~%%;& ~!##!% ~%%;% ~!#L  M  !& ~%%!% ~;& ~%%!& ~deminimis#;% ~%%;& ~"##!% ~%%;% ~"#L  M  !& ~%%!% ~;& ~%%!& ~Ԁrulesfortechnology.Thepurposeof 7 thereportissolelytopermittheU.S.Government  8 toevaluatewhetherU.S.contentcalculations m 9 wereperformedcorrectly. Ai :       #;% ~%%;& ~r###!% ~%%;% ~##L  M  !& ~%%!% ~;& ~%%!& ~(1)Contentsofreport. #;% ~%%;& ~&%##!% ~%%;% ~E%#L  M  !& ~%%!% ~;& ~%%!& ~ԀYoumustincludein +S < yourreportadescriptionofthescopeandnature += oftheforeigntechnologythatisthesubjectofthe > reportandadescriptionofitsfairmarketvalue, ? alongwiththerationaleandbasisforthe @ valuationofsuchforeigntechnology.Yourreport S{A mustindicatethecountryofdestinationforthe 'OB foreigntechnologyreexportswhentheU.S.origin #C controlledcontentexceeds10%,sothatBIScan D evaluatewhethertheU.S.origincontrolled E contentwascorrectlyidentifiedbasedon wF paragraph(a)(1)ofthisSupplement.Thereport KsG doesnotrequireinformationregardingtheend GH useorendusersofthereexportedforeign I technology.Youmustincludeinyourreportthe J name,title,address,telephonenumber,Email K address,andfacsimilenumberofthepersonBIS o L maycontactconcerningyourreport. C!kM     #;% ~%%;& ~%##!% ~%%;% ~%#L  M  !& ~%%!% ~;& ~%%!& ~(2)Submissionofreport. #;% ~%%;& ~*+##!% ~%%;% ~I+#L  M  !& ~%%!% ~;& ~%%!& ~Youmustsubmit -#UO yourreporttoBISusingoneofthefollowing $-P methods: $Q     (i)  Email:rpd2@bis.doc.gov; %R       (ii)  Fax:(202)4823355;or & S     (iii)  MailorHandDelivery/Courier: '!T       RegulatoryPolicyDivision, ("U       U.S.DepartmentofCommerce, )#V       BureauofIndustryandSecurity, *$W       RegulatoryPolicyDivision, +%X       14thandPennsylvaniaAvenue,N.W., ,&Y 0         Room2705,!       Washington,D.C.20230.      #;% ~%%;& ~+##!% ~%%;% ~+#L  M  !& ~%%!% ~;& ~%%!& ~  #;% ~%%;& ~0##!% ~%%;% ~0#L  M  !& ~%%!% ~;& ~%%!& ~(3)Reportandwait. #;% ~%%;& ~=1##!% ~%%;% ~\1#L  M  !& ~%%!% ~;& ~%%!& ~ԀIfyouhavenotbeen  contactedbyBISconcerningyourreportwithin   thirtydaysafterfilingthereportwithBIS,you   mayrelyuponthecalculationsdescribedinthe X  reportunlessanduntilBIScontactsyouand , T instructsyouotherwise.BISmaycontactyou  ( withquestionsconcerningyourreportorto    indicatethatBISdoesnotaccepttheassumptions !  orrationaleforyourcalculations.Ifyoureceive   suchacontactorcommunicationfromBISwithin   thirtydaysafterfilingthereportwithBIS,you u  maynotrelyuponthecalculationsdescribedin I q  thereport,andmaynotusethe#;% ~%%;& ~1##!% ~%%;% ~ 2#L  M  !& ~%%!% ~;& ~%%!& ~deminimis#;% ~%%;& ~5##!% ~%%;% ~5#L  M  !& ~%%!% ~;& ~%%!& ~Ԁrules  E fortechnologythataredescribedin734.4ofthis   part,untilBIShasindicatedthatsuchcalculations   wereperformedcorrectly.#!& ~%%;& ~6##!% ~%%!& ~d6#