EAR Part 740

PART 740
LICENSE EXCEPTIONS
Sec.

Page

740.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
740.2 Restrictions on all License Exceptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
740.3 Shipments of limited value (LVS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
740.4 Shipments to Country Group B countries (GBS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
740.5 Civil end-users (CIV) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
740.6 Technology and software under restriction (TSR) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
740.7 Computers (APP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
740.8 [RESERVED] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
740.9 Temporary imports, exports, and reexports (TMP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
740.10 Servicing and replacement of parts and equipment (RPL) . . . . . . . . . . . . . . . . . . . . . . . . . . 20
740.11 Governments, international organizations, and international
inspections under the Chemical Weapons Convention (GOV) . . . . . . . . . . . . . . . . . . . . . . 23
740.12 Gift parcels and humanitarian donations (GFT) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
740.13 Technology and software - unrestricted (TSU) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
740.14 Baggage (BAG) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
740.15 Aircraft and vessels (AVS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
740.16 Additional permissive reexports (APR) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
740.17 Encryption commodities and software (ENC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
740.18 Agricultural commodities (AGR) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
740.19 Consumer communication devices (CCD) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
ADDITIONAL RESTRICTIONS ON USE OF
LICENSE EXCEPTION GOV . . . . . . . . . . . . . . . . . . . SUPPLEMENT NO. 1 TO SECTION 740.11

Export Administration Regulations

September 3, 2009

COUNTRY GROUPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . SUPPLEMENT NO. 1
ITEMS THAT MAY BE DONATED TO MEET BASIC HUMAN
NEEDS UNDER THE HUMANITARIAN LICENSE EXCEPTION . . . . . . . SUPPLEMENT NO. 2
COUNTRIES ELIGIBLE FOR THE PROVISIONS OF §740.17(a) . . . . . . . SUPPLEMENT NO. 3

Export Administration Regulations

September 3, 2009

License Exceptions

Part 740-page 1

§740.1

(c) License Exception symbols

INTRODUCTION

Each License Exception bears a three letter
symbol that will be used for export clearance
purposes (see paragraph (d) of this section).

In this part, references to the EAR are references
to 15 CFR chapter VII, subchapter C.
(a) Scope
A “License Exception” is an authorization
contained in this part that allows you to export or
reexport under stated conditions, items subject to
the Export Administration Regulations (EAR)
that would otherwise require a license under
General Prohibition One, Two, Three, or Eight as
indicated under one or more of the Export Control
Classification Numbers (ECCNs) in the
Commerce Control List (CCL) in Supplement No.
1 to part 774 of the EAR and items subject to the
EAR that would require a license based on the
embargo policies described in part 746 of the
EAR. If your export or reexport is subject to
General Prohibition Six for embargoed
destinations, refer to part 746 of the EAR to
determine the availability of any License
Exceptions. Special commodity controls apply to
short supply items. License Exceptions for items
listed on the CCL as controlled for Short Supply
reasons are found in part 754 of the EAR. If your
export or reexport is to subject to General
Prohibition Five, consult part 744 of the EAR. If
your export or reexport is subject to General
Prohibitions Four, Seven, Nine, or Ten, then no
License Exceptions apply.
(b) Certification
By using any of the License Exceptions you are
certifying that the terms, provisions, and
conditions for the use of the License Exception
described in the EAR have been met. Please refer
to part 758 of the EAR for clearance of shipments
and documenting the use of License Exceptions.

(d) Shipper's Export Declaration or
Automated Export System Record
You must enter on any required Shipper’s Export
Declaration (SED) or Automated Export System
(AES) record the correct License Exception
symbol (e.g., LVS, GBS, CIV) and the correct
Export Control Classification Number (ECCN)
(e.g., 4A003, 5A002) for all shipments of items
exported under a License Exception.
Items
temporarily in the United States meeting the
provisions of License Exception TMP, under
§740.9(b)(3), are excepted from this requirement.
See §758.1 of the EAR for Shipper’s Export
Declaration requirements or Automated Export
System (AES) requirements.
(e) Destination Control Statement
You may be required to enter an appropriate
Destination Control Statement on commercial
documents in accordance with Destination
Control Statement requirements of §758.6 of the
EAR.
(f) Recordkeeping
Records of transactions involving exports under
any of the License Exceptions must be maintained
in accordance with the recordkeeping
requirements of part 762 of the EAR.

§740.2
RESTRICTIONS ON ALL LICENSE
EXCEPTIONS
(a) You may not use any License Exception if
any one or more of the following apply:

Export Administration Regulations

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License Exceptions

Part 740-page 2

(1)
Your authorization to use a License
Exception has been suspended or revoked, or your
intended export does not qualify for a License
Exception.

(License Exception RPL), §740.13 (License
Exception TSU), or §740.15(c) (License
Exception AVS for equipment and spare parts for
permanent use on a vessel or aircraft).

(2) The export or reexport is subject to one of the
ten General Prohibitions, is not eligible for a
License Exception, and has not been authorized
by BIS.

(ii) MT controlled commodities described in
ECCN 2A001 may be exported or reexported
under §740.9(a)(2)(ii) (License Exception TMP)
or §740.10 (License Exception RPL) as one-forone replacement for equipment previously legally
exported or reexported.

(3) The item is primarily useful for surreptitious
interception of wire, oral, or electronic
communications, or related software, controlled
under ECCNs 5A980 or 5D980, unless the item is
consigned to and for the official use of an agency
of the U.S. Government (see § 740.11(b)(2)(ii) of
this part, Governments (GOV)).
(4) The item being exported or reexported is
subject to the license requirements described in
§742.7 of the EAR and the export or reexport is
not:
(i) Being made to Australia, Japan, New
Zealand, or a NATO (North Atlantic Treaty
Organization) member state (see NATO
membership listing in §772.1 of the EAR);
(ii) Authorized by §740.11(b)(2)(ii) (official
use by personnel and agencies of the U.S.
government); or
(iii) Authorized by §740.14(e) of the EAR
(certain shotguns and shotgun shells for personal
use).
(5)(i)The item is controlled for missile technology
(MT) reasons, except that the items described in
ECCNs 6A008, 7A001, 7A002, 7A004, 7A101,
7A102, 7A103, 7A104, 7B001, 7D001, 7D002,
7D003, 7D101, 7D102, 7E003, or 7E101, may be
exported as part of a manned aircraft, land vehicle
or marine vehicle or in quantities appropriate for
replacement parts for such applications under
§740.9(a)(2)(ii) (License Exception TMP for kits
consisting of replacement parts), §740.10
Export Administration Regulations

(6) The export or reexport is to a
comprehensively embargoed destination (Cuba,
Iran, and North Korea), unless a license exception
or portion thereof is specifically listed in the
license exceptions paragraph pertaining to a
particular embargoed country in part 746 of the
EAR.
(7) “Space qualified” items. Commodities
defined in 3A001.b.8 (Traveling Wave Tube
Amplifiers (TWTAs) exceeding 18 GHz),
6A002.e, 6A008.j.1, or 6A998.b; “software” for
commodities defined in 3A001.b.8 (Traveling
Wave Tube Amplifiers (TWTAs) exceeding 18
GHz), 6A002.e, 6A008.j.1, or 6A998.b and
controlled under ECCNs 3D001 (Traveling Wave
Tube Amplifiers (TWTAs) exceeding 18 GHz),
6D001, 6D002, 6D991; and “technology” for
commodities defined in ECCNs 3A001.b.8
(Traveling Wave Tube Amplifiers (TWTAs)
exceeding 18 GHz), 6A002.e, 6A008.j.1, or
6A998.b and controlled under ECCNs 3E001,
6E001, 6E002, 6E101, 6E991.
(8) The item is controlled under ECCNs 2A983,
2D983 or 2E983 and the License Exception is
other than:
(i) RPL, under the provisions of §740.10,
including §740.10(a)(3)(v), which prohibits
exports and reexports of replacement parts to
countries in Country Group E:1 (see Supplement
1 to part 740));

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License Exceptions

(ii) GOV, restricted to eligibility under the
provisions of §740.11(b)(2)(ii) or (v); or

Part 740-page 3

§740.3
SHIPMENTS OF LIMITED VALUE (LVS)

(iii) TSU, under the provisions of §740.13(a)
and (c).
(9) The item is a QRS11-00100-100/101
Micromachined Angular Rate Sensor controlled
for RS reasons under ECCN 7A994.

(a) Scope
License Exception LVS authorizes the export and
reexport in a single shipment of eligible
commodities as identified by “LVS - $(value
limit)” on the CCL.

(10)
The commodity being exported or
reexported is subject to the license requirements
of §742.11 of the EAR.

(b) Eligible Destinations

(11) The item is a “military commodity” subject
to ECCN 0A919, except that such military
commodities may be reexported in accordance
with § 740.11(b)(2)(ii) (official use by personnel
and agencies of the U.S. Government).

This License Exception is available for all
destinations in Country Group B (see Supplement
No. 1 to part 740), provided that the net value of
the commodities included in the same order and
controlled under the same ECCN entry on the
CCL does not exceed the amount specified in the
LVS paragraph for that entry.

(b) All License Exceptions are subject to
revision, suspension, or revocation, in whole or in
part, without notice. It may be necessary for BIS
to stop a shipment or an export transaction at any
stage of its progress, e.g., in order to prevent an
unauthorized export or reexport. If a shipment is
already en route, it may be further necessary to
order the return or unloading of the shipment at
any port of call.
(c) BIS may by informing the exporter, suspend
or revoke any License Exception in order to
comply with U.S. Wassenaar obligations. In
addition, BIS may inform an exporter, that before
using any License Exception, a notice be
submitted with BIS concerning the proposed
export.
(d) See §746.3 for restrictions on certain
transfers within Iraq of items exported or
reexported to Iraq pursuant to a License
Exception.

Export Administration Regulations

(c) Definitions
(1) Order. The term “order” as used in this §740.3 means a communication from a person in a
foreign country, or that person's representative,
expressing an intent to import commodities from
the exporter. Although all of the details of the
order need not be finally determined at the time of
export, terms relating to the kinds and quantities
of the commodities to be exported, as well as the
selling prices of these commodities, must be
finalized before the goods can be exported under
License Exception LVS.
(2) Net value: for LVS shipments. The actual
selling price of the commodities that are included
in the same order and are controlled under the
same entry on the CCL, less shipping charges, or
the current market price of the commodities to the
same type of purchaser in the United States,
whichever is the larger. In determining the actual
selling price or the current market price of the
commodity, the value of containers in which the
commodity is being exported may be excluded.
The value for LVS purposes is that of the
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License Exceptions

controlled commodity that is being exported, and
may not be reduced by subtracting the value of
any content that would not, if shipped separately,
be subject to licensing. Where the total value of
the containers and their contents must be shown
on Shipper's Export Declarations under one
Schedule B Number, the exporter, in effecting a
shipment under this License Exception, must
indicate the “net value” of the contained
commodity immediately below the description of
the commodity.
(3) Single shipment. All commodities moving
at the same time from one exporter to one
consignee or intermediate consignee on the same
exporting carrier even though these commodities
will be forwarded to one or more ultimate
consignees. Commodities being transported in
this manner will be treated as a single shipment
even if the commodities represent more than one
order or are in separate containers.
(d) Additional eligibility requirements
and restrictions
(1) Eligible orders. To be eligible for this
License Exception, orders must meet the
following criteria:
(i) Orders must not exceed the applicable
“LVS” dollar value limits. An order is eligible
for shipment under LVS when the “net value” of
the commodities controlled under the same entry
on the CCL does not exceed the amount specified
in the “LVS” paragraph for that entry. An LVS
shipment may include more than one eligible
order.
(ii) Orders may not be split to meet the
applicable LVS dollar limits. An order that
exceeds the applicable LVS dollar value limit
may not be misrepresented as two or more orders,
or split among two or more shipments, to give the
appearance of meeting the applicable LVS dollar
value limit. However an order that meets all the
LVS eligibility requirements, including the
Export Administration Regulations

Part 740-page 4

applicable LVS dollar value limit, may be split
among two or more shipments.
(iii) Orders must be legitimate. Exporters and
consignees may not, either collectively or
individually, structure or adjust orders to meet the
applicable LVS dollar value limits.
(2) Restriction on annual value of LVS orders.
The total value of exports per calendar year to the
same ultimate or intermediate consignee of
commodities classified under a single ECCN may
not exceed 12 times the LVS value limit for that
ECCN; however, there is no restriction on the
number of shipments provided that value is not
exceeded. This annual value limit applies to
shipments to the same ultimate consignee even
though the shipments are made through more than
one intermediate consignee. There is no
restriction on the number of orders that may be
included in a shipment, except that the annual
value limit per ECCN must not be exceeded.
(3) Orders where two or more LVS dollar
value limits apply. An order may include
commodities that are controlled under more than
one entry on the CCL. In this case, the net value
of the entire order may exceed the LVS dollar
value for any single entry on the CCL. However,
the net value of the commodities controlled under
each ECCN entry shall not exceed the LVS dollar
value limit specified for that entry.
Example to paragraph (3): An order includes
commodities valued at $8,000. The order consists
of commodities controlled under two ECCN
entries, each having an LVS value limit of $5000.
Commodities in the order controlled under one
ECCN are valued at $3,500 while those
controlled under the other ECCN are valued at
$4,500. Since the net value of the commodities
controlled under each entry falls within the LVS
dollar value limits applicable to that entry, the
order may be shipped under this License
Exception.

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License Exceptions

Part 740-page 5

(4) Prohibition against evasion of license
requirements. Any activity involving the use of
this License Exception to evade license
requirements is prohibited. Such devices include,
but are not limited to, the splitting or structuring
of orders to meet applicable LVS dollar value
limits, as prohibited by paragraphs (d)(1)(ii) and
(iii) of this section.
(5) Exports and reexports of encryption
components or spare parts. For components or
spare parts controlled for “EI” reasons under
ECCN 5A002, exports and reexports under this
License Exception must be destined to support a
commodity previously authorized for export or
reexport.
(e) Reexports
Commodities may be reexported under this
License Exception, provided that they could be
exported from the United States to the new
country of destination under LVS.
(f) Reporting requirements
See §743.1 of the EAR for reporting requirements
for exports of certain commodities under License
Exception LVS.

§740.4
SHIPMENTS TO COUNTRY
GROUP B COUNTRIES (GBS)
License Exception GBS authorizes exports and
reexports to Country Group B (see Supplement
No. 1 to part 740) of those commodities where
the Commerce Country Chart (Supplement No. 1
to part 738 of the EAR) indicates a license
requirement to the ultimate destination for
national security reasons only and identified by
“GBS - Yes” on the CCL. See §743.1 of the EAR
for reporting requirements for exports of certain
commodities under License Exception GBS.
Export Administration Regulations

§740.5
CIVIL END-USERS (CIV)
(a) Scope
License Exception CIV authorizes exports and
reexports of items on the Commerce Control List
(CCL) (Supplement No. 1 to part 774 of the EAR)
that have a license requirement to the ultimate
destination pursuant to the Commerce Country
Chart (Supplement No. 1 to part 738 of the EAR)
for NS reasons only; and identified by “CIV Yes” in the License Exception section of the
Export Control Classification Number (ECCN),
provided the items are destined to civil end-users
for civil end-uses in Country Group D:1, except
North Korea (Supplement No. 1 to part 740 of
this part).
(b) Restrictions
(1) Restricted end-users and end-uses. You may
not use CIV if you “know” the item will be or is
intended to be exported, reexported, or
transferred (in-country) to military uses or
military end-users. Such exports, reexports, and
transfers (in-country) will continue to require a
license. In addition to conventional military
activities, military uses include any proliferation
activities described and prohibited by part 744 of
the EAR.
(2) Visa Status. Deemed exports under License
Exception CIV are not authorized to foreign
nationals in an expired visa status. It is the
responsibility of the exporter to ensure that, in the
case of deemed exports, the foreign national
maintains a valid U.S. visa, if required to hold a
visa from the United States.
(c) Reporting Requirement
See §743.1 of the EAR for reporting requirements
for exports of certain items under this License
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License Exceptions

Exception.
(d) Foreign National Review (FNR)
requirement for deemed exports
(1) Submission requirement. Prior to disclosing
eligible technology to a foreign national under
this License Exception, you must submit a
Foreign National Review (FNR) request to BIS,
as required under §748.8(s) of the EAR. Your
FNR request must include information about the
foreign national required under §748.8(t) of the
EAR and set forth in Supplement No. 2 of part
748 of the EAR.
(2) Confirmation of eligibility. You may not
use License Exception CIV until you have
obtained confirmation of eligibility by calling the
System for Tracking Export License Applications
(STELA), see §750.5 for how to use STELA, or
electronically from the Simplified Network
A p pl i c a t i on Procedure ( SN AP ) , s e e
http://www.bis.doc.gov/SNAP/index.htm
for
more information about SNAP.
(3) Action by BIS. Within nine business days of
the registration of the FNR request, BIS will refer
the FNR request electronically, along with all
necessary documentation for interagency review,
or if necessary return the FNR request without
action (e.g., if the information provided is
incomplete). Processing time starts at the point at
which the notification is registered into BIS's
electronic system.
(4) Review by other departments or agencies.
The Departments of Defense, State, Energy, and
other agencies, as appropriate, may review the
FNR request. Within 30 calendar days of receipt
of the BIS referral, the reviewing agency will
provide BIS with a recommendation either to
approve or deny the FNR request. A reviewing
agency that fails to provide a recommendation
within 30 days shall be deemed to have no
objection to the final decision of BIS.
Export Administration Regulations

Part 740-page 6

(5) Action on the FNR Request. After the
interagency review period, BIS will promptly
notify the applicant regarding the FNR request,
i.e., whether the FNR request is approved, denied,
or more time is needed to consider the request.
§740.6
TECHNOLOGY AND SOFTWARE
UNDER RESTRICTION (TSR)
(a) Scope
License Exception TSR permits exports and
reexports of technology and software where the
Commerce Country Chart (Supplement No. 1 to
part 738 of the EAR) indicates a license
requirement to the ultimate destination for
national security reasons only and identified by
“TSR - Yes” in entries on the CCL, provided the
software or technology is destined to Country
Group B. (See Supplement No. 1 to part 740.) A
written assurance is required from the consignee
before exporting under this License Exception.
(1) Required assurance for export of
technology. You may not export or reexport
technology under this License Exception until
you have received from the importer a written
assurance that, without a BIS license or License
Exception, the importer will not:
(i) Reexport or release the technology to a
national of a country in Country Groups D:1 or
E:2; or
(ii) Export to Country Groups D:1 or E:2 the
direct product of the technology, if such foreign
produced direct product is subject to national
security controls as identified on the CCL (See
General Prohibition Three, §736.2(b)(3) of the
EAR); or
(iii) If the direct product of the technology is a
complete plant or any major component of a
plant, export to Country Groups D:1 or E:2 the
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License Exceptions

direct product of the plant or major component
thereof, if such foreign produced direct product is
subject to national security controls as identified
on the CCL or is subject to State Department
controls under the U.S. Munitions List (22 CFR
part 121).
(2) Required assurance for export of software.
You may not export or reexport software under
this License Exception until you have received
from the importer a written assurance that,
without a BIS license or License Exception, the
importer will neither:
(i) Reexport or release the software or the
source code for the software to a national of a
country in Country Groups D:1 or E:2; nor

Part 740-page 7

for the foreign filing of a patent, provided the
filing is in accordance with the regulations of the
U.S. Patent Office.
(b) Reporting requirements
See §743.1 of the EAR for reporting requirements
for exports of certain items under License
Exception TSR. Note that reports are not
required for release of technology or source code
subject to the EAR to foreign nationals in the
U.S. under the provisions of License Exception
TSR.

§740.7
COMPUTERS (APP)

(ii) Export to Country Groups D:1 or E:2 the
direct product of the software, if such foreign
produced direct product is subject to national
security controls as identified on the CCL. (See
General Prohibition Three, §736.2(b)(3) of the
EAR).
(3) Form of written assurance. The required
assurance may be made in the form of a letter or
any other written communication from the
importer, including communications via
facsimile, or the assurance may be incorporated
into a licensing agreement that specifically
includes the assurances. An assurance included
in a licensing agreement is acceptable only if the
agreement specifies that the assurance will be
honored even after the expiration date of the
licensing agreement. If such a written assurance
is not received, License Exception TSR is not
applicable and a license is required. The license
application must include a statement explaining
why assurances could not be obtained.
(4) Other License Exceptions. The requirements
in this License Exception do not apply to the
export of technology or software under other
License Exceptions, or to the export of
technology or software included in an application
Export Administration Regulations

(a) Scope
(1) Commodities. License Exception APP
authorizes exports and reexports of computers,
including “electronic assemblies” and specially
designed components therefor controlled by
ECCN 4A003, except ECCN 4A003.e (equipment
performing analog-to-digital conversions
exceeding the limits in ECCN 3A001.a.5.a),
exported or reexported separately or as part of a
system for consumption in Computer Tier
countries as provided by this section. When
evaluating your computer to determine License
Exception APP eligibility, use the APP parameter
to the exclusion of other technical parameters in
ECCN 4A003.
(2) Technology and software.
License
Exception APP authorizes exports of technology
and software controlled by ECCNs 4D001 and
4E001 specially designed or modified for the
“development”, “production”, or “use” of
computers, including “electronic assemblies” and
specially designed components therefor classified
in ECCN 4A003, except ECCN 4A003.e
(equipment performing analog-to-digital
conversions exceeding the limits in ECCN
September 3, 2009

License Exceptions

Part 740-page 8

3A001.a.5.a), to Computer Tier countries as
provided by this section.
(b) Restrictions
(1) Related equipment controlled under ECCN
4A003.g may not be exported or reexported under
this License Exception when exported or
reexported separately from eligible computers
authorized under this License Exception.

(5) License Exception APP does not authorize
exports, reexports and transfers (in-country) for
nuclear, chemical, biological, or missile end-users
and end-uses subject to license requirements
under §744.2, §744.3, §744.4, and §744.5 of the
EAR. Such exports, reexports and transfers (incountry) will continue to require a license and
will be considered on a case-by-case basis.
Reexports and transfers (in-country) to these endusers and end-uses in eligible countries are
strictly prohibited without prior authorization.

(2) Access and release restrictions.
(i) Computers and software. Computers and
software eligible for License Exception APP may
not be accessed either physically or
computationally by nationals of Cuba, Iran,
North Korea, Sudan, or Syria, except that
commercial consignees described in Supplement
No. 3 to part 742 of the EAR are prohibited only
from giving such nationals user-accessible
programmability.
(ii) Technology and source code. Technology
and source code eligible for License Exception
APP may not be released to nationals of Cuba,
Iran, North Korea, Sudan, or Syria.
(3) Computers and software eligible for License
Exception APP may not be reexported or
transferred (in country) without prior
authorization from BIS, i.e., a license, a
permissive reexport, another License Exception,
or “No License Required”. This restriction must
be conveyed to the consignee, via the Destination
Control Statement, see §758.6 of the EAR.
Additionally, the end-use and end-user
restrictions in paragraph (b)(5) of this section
must be conveyed to any consignee in Computer
Tier 3.
(4) You may not use this License Exception to
export or reexport items that you know will be
used to enhance the APP beyond the eligibility
limit allowed to your country of destination.

Export Administration Regulations

(6) Foreign nationals in an expired visa status are
not eligible to receive deemed exports of
technology or source code under this License
Exception. It is the responsibility of the exporter
to ensure that, in the case of deemed exports, the
foreign national maintains a valid U.S. visa, if
required to hold a visa from the United States.
(c) Computer Tier 1 destinations
(1) Eligible destinations. The destinations that
are eligible to receive exports and reexports under
paragraph (c) of this section include: Antigua
and Barbuda, Argentina, Aruba, Australia,
Austria, Bahamas (The), Bangladesh, Barbados,
Belgium, Belize, Benin, Bhutan, Bolivia,
Botswana, Brazil, Brunei, Bulgaria, Burkina Faso,
Burundi, Cameroon, Cape Verde, Central African
Republic, Chad, Chile, Colombia, Congo
(Democratic Republic of the), Congo (Republic
of the), Costa Rica, Cote d'Ivoire, Cyprus, Czech
Republic, Denmark, Dominica, Dominican
Republic, East Timor, Ecuador, El Salvador,
Equatorial Guinea, Eritrea, Estonia, Ethiopia, Fiji,
Finland, France, Gabon, Gambia (The), Germany,
Ghana, Greece, Grenada, Guatemala, Guinea,
Guinea-Bissau, Guyana, Haiti, Honduras, Hong
Kong, Hungary, Iceland, Indonesia, Ireland, Italy,
Jamaica, Japan, Kenya, Kiribati, Korea (Republic
of), Latvia, Lesotho, Liberia, Liechtenstein,
Lithuania, Luxembourg, Madagascar, Malawi,
Malaysia, Maldives, Mali, Malta, Marshall
Islands, Mauritius, Mexico, Micronesia
(Federated States of), Monaco, Mozambique,
September 3, 2009

License Exceptions

Namibia, Nauru, Nepal, Netherlands, Netherlands
Antilles, New Zealand,
Nicaragua, Niger,
Nigeria, Norway, Palau, Panama, Papua New
Guinea, Paraguay, Peru, Philippines, Poland,
Portugal, Romania, Rwanda, St. Kitts & Nevis,
St. Lucia, St. Vincent and the Grenadines, Sao
Tome & Principe, Samoa, San Marino, Senegal,
Seychelles, Sierra Leone, Singapore, Slovakia,
Slovenia, Solomon Islands, Somalia, South
Africa, Spain, Sri Lanka, Surinam, Swaziland,
Sweden, Switzerland, Taiwan, Tanzania, Togo,
Tonga, Thailand, Trinidad and Tobago, Turkey,
Tuvalu, Uganda, United Kingdom, Uruguay,
Vatican City, Venezuela, Western Sahara,
Zambia, and Zimbabwe.
(2) Eligible commodities. All computers,
including electronic assemblies and specially
designed components therefor are eligible for
export or reexport under License Exception APP
to Tier 1 destinations, subject to the restrictions in
paragraph (b) of this section.
(3) Eligible technology and software.
(i) Technology and software described in
paragraph (a)(2) of this section for computers of
unlimited APP are eligible for export or reexport
under License Exception APP to: Australia,
Austria, Belgium, Canada, Denmark, Finland,
France, Germany, Greece, Ireland, Italy, Japan,
Luxembourg, Netherlands, New Zealand,
Norway, Portugal, Spain, Sweden, Switzerland,
Turkey, or the United Kingdom; and
(ii) “Development” and “production”
technology and source code described in
paragraph (a)(2) of this section for computers
with a APP less than or equal to 0.1 Weighted
TeraFLOPS (WT) are eligible for deemed exports
under License Exception APP to foreign nationals
of Tier 1 destinations, other than the destinations
that are listed in paragraph (c)(3)(i) of this
section, subject to the restrictions in paragraph (b)
of this section.

Export Administration Regulations

Part 740-page 9

(iii) “Use” technology and source code
described in paragraph (a)(2) of this section for
computers with a APP less than or equal to 0.75
WT are eligible for deemed exports under
License Exception APP to foreign nationals of
Tier 1 destinations, other than the destinations
that are listed in paragraph (c)(3)(i) of this
section, subject to the restrictions in paragraph (b)
of this section.
(d) Computer Tier 3 destinations
(1) Eligible destinations. Eligible destinations
under
paragraph (d) of this section are:
Afghanistan, Albania, Algeria, Andorra, Angola,
Armenia, Azerbaijan, Bahrain, Belarus, Bosnia &
Herzegovina, Burma, Cambodia, China (People's
Republic of), Comoros, Croatia, Djibouti, Egypt,
Georgia, India, Iraq, Israel, Jordan, Kazakhstan
Kosovo, Kuwait, Kyrgyzstan, Laos, Lebanon,
Libya, Macau, Macedonia (The Former Yugoslav
Republic of), Mauritania, Moldova, Mongolia,
Montenegro, Morocco, Oman, Pakistan, Qatar,
Russia, Saudi Arabia, Serbia, Tajikistan, Tunisia,
Turkmenistan, Ukraine, United Arab Emirates,
Uzbekistan, Vanuatu, Vietnam, and Yemen.
(2) Eligible commodities. None.
(3) Eligible technology and source code.
(i) “Development,” and “production”
technology and source code described in
paragraph (a)(2) of this section for computers
with a APP less than or equal to 0.1 Weighted
TeraFLOPS (WT) are eligible for deemed
exports under License Exception APP to foreign
nationals of Tier 3 destinations as described in
paragraph (d)(1) of this section, subject to the
restrictions in paragraph (b) and the provisions of
paragraph (d)(4) of this section.
(ii) “Use” technology and source code
described in paragraph (a)(2) of this section for
computers with an APP less than or equal to 0.75
WT are eligible for deemed exports under
September 3, 2009

License Exceptions

Part 740-page 10

License Exception APP to foreign nationals of
Tier 3 destinations as described in paragraph
(d)(1) of this section, subject to the restrictions in
paragraph (b) and the provisions of paragraph
(d)(4) of this section.

FNR request. Within 30 calendar days of receipt
of the BIS referral, the reviewing agency will
provide BIS with a recommendation either to
approve or deny the FNR request. A reviewing
agency that fails to provide a recommendation
within 30 days shall be deemed to have no
objection to the final decision of BIS.

(4) Foreign National Review
requirement for deemed exports.

(v) Action on the FNR Request. After the
interagency review period, BIS will promptly
notify the applicant regarding the FNR request,
i.e., whether the FNR request is approved, denied,
or more time is needed to consider the request.

(FNR)

(i) Submission requirement. Prior to
disclosing eligible technology or source code to a
foreign national of a Computer Tier 3 country that
is not also a country listed in Country Group B in
Supplement No. 1 to part 740 of the EAR under
this License Exception, you must submit a
Foreign National Review (FNR) request to BIS,
as required under §748.8(s) of the EAR. Your
FNR request must include information about the
foreign national required under §748.8(t) of the
EAR and set forth in Supplement No. 2 of part
748 of the EAR.

(e) Reporting requirements
See §743.1 of the EAR for reporting requirements
of certain items under License Exception APP.

§740.8 [RESERVED]

§740.9
(ii) Confirmation of eligibility. You may not
use License Exception APP, until you have
obtained confirmation of eligibility by calling the
System for Tracking Export License Applications
(STELA), see §750.5 for how to use STELA, or
electronically from the Simplified Network
A p pl i c a t i o n P r o c ed ure (SNAP), s e e
http://www.bis.doc.gov/SNAP/index.htm
for
more information about SNAP.
(iii) Action by BIS. Within nine business days
of the registration of the FNR request, BIS will
electronically refer the FNR request for
interagency review, or if necessary return the
FNR request without action (e.g., if the
information provided is incomplete). Processing
time starts at the point at which the notification is
registered into BIS's electronic system.
(iv) Review by other departments or agencies.
The Departments of Defense, State, Energy, and
other agencies, as appropriate, may review the
Export Administration Regulations

TEMPORARY IMPORTS, EXPORTS,
AND REEXPORTS (TMP)
This License Exception authorizes various
temporary exports and reexports; exports and
reexports of items temporarily in the United
States; and exports and reexports of beta test
software.
(a) Temporary exports
(1) Scope. You may export and reexport
commodities and software for temporary use
abroad (including use in international waters)
subject to the conditions and restrictions
described in paragraphs (a)(2) through (a)(5) of
this section.
U.S. persons, as defined in
paragraph (a)(2)(i)(C), may export and reexport
technology for temporary use abroad under
paragraph (a)(2)(i) of this section to U.S. persons
or their employees traveling or temporarily
September 3, 2009

License Exceptions

assigned abroad (including use in international
waters) subject to the conditions and restrictions
described in paragraphs (a)(2) through (a)(5) of
this section. Paragraph (a) does not authorize any
new release of technology. Persons receiving
technology exported or reexported under
paragraph (a)(2)(i) must already be authorized to
receive the same technology in accordance with
the EAR (e.g., through a license or license
exception), or, alternatively, not require such
authorization on account of the technology’s NLR
status. Technology exports and reexports
authorized under this paragraph (a) may be made
as actual shipments, transmissions, or releases.
Exports and reexports of encryption items
controlled under ECCN 5E002 are not permitted
pursuant to this paragraph (a). Items shipped as
temporary exports and reexports under the
provisions of this paragraph (a) must be returned
to the country from which they were exported or
reexported as soon as practicable but, except in
circumstances described in this section, no later
than one year from the date of export or reexport.
This requirement does not apply if the items are
consumed or destroyed in the normal course of
authorized temporary use abroad or an extension
or other disposition is permitted by the EAR or in
writing by BIS.
(i) Additional requirement for return or
disposal of technology. Technology shipped or
transmitted as a temporary export or reexport
under the provisions of this paragraph (a)(2)(i)(A)
that exists in a format that could facilitate a
subsequent release of the technology must be
returned or disposed of in accordance with
paragraph (a)(4) of this section. Examples of
technology that exists in a format that could
facilitate a subsequent release of technology
include the following: technology in a hard copy
format (e.g. blue prints, manuals); technology in
an electronic format stored on an electronic
device (e.g. laptop, PDA); or technology stored
on removable storage media and devices (e.g.
CD-ROMS, flash drives, video cassettes).

Export Administration Regulations

Part 740-page 11

(ii) [RESERVED]
(2) Eligible items. The following items are
eligible to be shipped under this
paragraph (a):
(i) Tools of trade. Usual and reasonable kinds
and quantities of tools of trade (commodities,
software, and technology) for use in a lawful
enterprise or undertaking of the exporter. For the
export or reexport of commodities or software,
the transaction must meet the requirements of
paragraph (a)(2)(i)(A) or paragraph (a)(2)(i)(B) of
this section. For the export or reexport by U.S.
persons of technology authorized under this
paragraph, the transaction must meet the
requirements of paragraph (a)(2)(i)(A) of this
section.
(A) Destinations other than Country Group
E:2 or Sudan. Exports and reexports of tools of
trade for use by the exporter or employees of the
exporter may be made only to destinations other
than Country Group E:2 or Sudan. The tools of
trade must remain under the “effective control”
(see §772.1 of the EAR) of the exporter or the
exporter's employee. Eligible tools of trade may
include, but are not limited to, equipment and
software as is necessary to commission or service
items, provided that the equipment or software is
appropriate for this purpose and that all items to
be commissioned or serviced are of foreign
origin, or if subject to the EAR, have been
lawfully exported or reexported. For exports and
reexports by U.S. persons to U.S. persons or their
employees traveling or temporarily assigned
abroad, eligible tools of trade may also include,
but are not limited to, technology as is necessary
to commission or service items, provided that all
items to be commissioned or serviced either are
of foreign origin and not subject to the EAR, or, if
subject to the EAR, have been lawfully exported
or reexported. Tools of trade may accompany the
individual departing from the United States or
may be shipped unaccompanied within one month
before the individual’s departure from the United
September 3, 2009

License Exceptions

States, or at any time after departure.
(B) Sudan. Exports or reexports of tools of
trade may be made to Sudan as authorized by this
paragraph.
(1) Permissible users of this provision.
A non-governmental organization or an individual
staff member, employee or contractor of such
organization traveling to Sudan at the direction or
with the knowledge of such organization may
export or reexport under this paragraph.
(2) Authorized purposes. Any tools of
trade exported or reexported under this paragraph
must be used to support activities to implement
the Darfur Peace Agreement or the
Comprehensive Peace Agreement, to provide
humanitarian or development assistance in Sudan
to support activities to relieve human suffering in
Sudan by an organization registered by the
Department of the Treasury, Office of Foreign
Assets Control (OFAC) pursuant to 31 CFR
§538.521, to support the actions in Sudan for
humanitarian or development purposes by an
organization authorized by OFAC to take such
actions that would otherwise would be prohibited
by the Sudanese Sanctions Regulations (31 CFR
part 538), or to support the activities to relieve
human suffering in Sudan in areas that are exempt
from the Sudanese Sanctions Regulations by
virtue of the Darfur Peace and Accountability Act
and Executive Order 13412.
(3) Method of export and maintenance
of control. The tools of trade must accompany
(either hand carried or as checked baggage) a
traveler who is a permissible user of this
provision or be shipped or transmitted to an
eligible user of this provision by a method
reasonably calculated to assure delivery to the
permissible user of this provision.
The
permissible user of this provision must maintain
“effective control” (See §772.1 of the EAR) of
the tools of trade while in Sudan.

Export Administration Regulations

Part 740-page 12

(4) The only tools of trade that may be
exported to Sudan under this paragraph
(a)(2)(i)(B) are:
(i) Commodities controlled under
ECCNs 4A994.b (not exceeding an adjusted peak
performance of 0.008 weighted teraFLOPS),
4A994.d, 4A994.e (other than industrial
controllers for chemical processing), 4A994.g and
4A994.h and “software” controlled under ECCNs
4D994 or 5D992 to be used on such commodities.
Software must be loaded onto such commodities
prior to export or reexport or be exported or
reexported solely for servicing or in-kind
replacement of legally exported or reexported
software. All such software must remain loaded
on such commodities while in Sudan;
(ii) Telecommunications equipment
controlled under ECCN 5A991 and “software”
controlled under ECCN 5D992 to be used in the
operation of such equipment. Software must be
loaded onto such equipment prior to export or be
exported or reexported solely for servicing or
in-kind replacement of legally exported or
reexported software. All such software must
remain loaded on such equipment while in Sudan;
(iii) Global positioning systems
(GPS) or similar satellite receivers controlled
under ECCN 7A994; and
(iv) Parts and components that are
controlled under ECCN 5A992, that are installed
with, or contained in, commodities in paragraphs
(a)(2)(i)(B)(4)(i) and (ii) of this section and that
remain installed with or contained in such
commodities while in Sudan.
(C) For purposes of this paragraph (a)(2)(i),
U.S. person is defined as follows: an individual
who is a citizen of the United States, an
individual who is a lawful permanent resident as
defined by 8 U.S.C. 1101(a)(2) or an individual
who is a protected individual as defined by 8
U.S.C. 1324b(a)(3). U.S. person also means any
September 3, 2009

License Exceptions

juridical person organized under the laws of the
United States, or any jurisdiction within the
United States (e.g., corporation, business
association, partnership, society, trust, or any
other entity, organization or group that is
incorporated to do business in the United States).
(ii) Kits consisting of replacement parts. Kits
consisting of replacement parts may be exported
or reexported to all destinations, except Country
Group E:2 (see Supplement No. 1 to part 740),
provided that:
(A) The parts would qualify for shipment
under paragraph (a)(2)(ii)(C) of this section if
exported as one-for-one replacements;
(B) The kits remain under effective control
of the exporter or an employee of the exporter;
and
(C) All parts in the kit are returned, except
that one-for-one replacements may be made in
accordance with the requirements of License
Exception RPL and the defective parts returned
(see “parts”, §740.10(a) of this part).
(iii) Exhibition and demonstration. You may
export or reexport under this provision
commodities and software for exhibition or
demonstration in all countries except countries
listed in Country Group E:1 (see Supplement No.
1 to this part) provided that the exporter maintains
ownership of the commodities and software while
they are abroad and provided that the exporter, an
employee of the exporter, or the exporter's
designated sales representative retains “effective
control” over the commodities and software while
they are abroad (see part 772 of the EAR for a
definition of “effective control”). The
commodities and software may not be used for
their intended purpose while abroad, except to the
minimum extent required for effective
demonstration. The commodities and software
may not be exhibited or demonstrated at any one
site more than 120 days after installation and
Export Administration Regulations

Part 740-page 13

debugging, unless authorized by BIS. However,
before or after an exhibition or demonstration,
pending movement to another site, return to the
United States or the foreign reexporter, or BIS
approval for other disposition, the commodities
and software may be placed in a bonded
warehouse or a storage facility provided that the
exporter retains effective control over their
disposition. The export documentation for this
type of transaction must show the exporter as
ultimate consignee, in care of the person who will
have control over the commodities and software
abroad.
(iv) Inspection and calibration. Commodities
to be inspected, tested, calibrated or repaired
abroad may be exported or reexported to all
destinations under this section, except Country
Group E:2, Sudan or Syria.
(v) Containers. Containers for which another
License Exception is not available and that are
necessary for export of commodities. However,
this License Exception does not authorize the
export of the container's contents, which, if not
exempt from licensing, must be separately
authorized for export under either a License
Exception or a license.
(vi) Broadcast material.
(A) Video tape containing program material
recorded in the country of export to be publicly
broadcast in another country.
(B) Blank video tape (raw stock) for use in
recording program material abroad.
(vii) Assembly in Mexico. Commodities to be
exported to Mexico under Customs entries that
require return to the United States after
processing, assembly, or incorporation into end
products by companies, factories, or facilities
participating in Mexico's in-bond industrialization
program (Maquiladora), provided that all
resulting end-products (or the commodities
September 3, 2009

License Exceptions

themselves) are returned to the United States.
(viii) News media.
(A) Commodities necessary for
news-gathering purposes (and software necessary
to use such commodities) may accompany
“accredited” news media personnel (i.e., persons
with credentials from a news gathering or
reporting firm) to Country Groups D:1 or E:2, or
Sudan (see Supplement No. 1 to part 740) if the
commodities:
(1) Are retained under “effective control”
of the exporting news gathering firm;
(2) Remain in the physical possession of
the news media personnel. The term physical
possession for purposes of this paragraph
(a)(2)(viii), news media, is defined as maintaining
effective measures to prevent unauthorized access
(e.g., securing equipment in locked facilities or
hiring security guards to protect the equipment);
and
(3) Are removed with the news media
personnel at the end of the trip.
(B) When exporting under this paragraph
(a)(2)(viii) from the United States, the exporter
must send a copy of the packing list or similar
identification of the exported commodities, to:
U.S. Department of Commerce
Bureau of Industry and Security
Office of Export Enforcement, Room H4616
14th Street and Constitution Avenue, N.W.
Washington, DC 20230
or any of its field offices, specifying the
destination and estimated dates of departure and
return. The Office of Export Enforcement (OEE)
may spot check returns to assure that the
temporary exports and reexports provisions of
this License Exception are being used properly.

Export Administration Regulations

Part 740-page 14

(C) Commodities or software necessary for
news-gathering purposes that accompany news
media personnel to all other destinations shall be
exported or reexported under paragraph (a)(2)(i),
tools of trade, of this section if owned by the
news gathering firm, or if they are personal
property of the individual news media personnel.
Note that paragraphs (a)(2)(i), tools of trade and
(a)(2)(viii), news media, of this section do not
preclude independent “accredited” contract
personnel, who are under control of news
gathering firms while on assignment, from
utilizing these provisions, provided that the news
gathering firm designate an employee of the
contract firm to be responsible for the equipment.
(ix) Temporary exports to a U.S. subsidiary,
affiliate or facility in Country Group B.
(A) Components, parts, tools or test
equipment exported by a U.S. person to its
subsidiary, affiliate or facility in a country listed
in Country Group B (see Supplement No. 1 to this
part) that is owned or controlled by the U.S.
person, if the components, part, tool or test
equipment is to be used for manufacture,
assembly, testing, production or modification,
provided that no components, parts, tools or test
equipment or the direct product of such
components, parts, tools or test equipment are
transferred (in-country) or reexported from such
subsidiary, affiliate or facility without prior
authorization by BIS.
(B)
For purposes of this paragraph
(a)(2)(ix), U.S. person is defined as follows: an
individual who is a citizen of the United States,
an individual who is a lawful permanent resident
as defined by 8 U.S.C. 1101(a)(2) or an individual
who is a protected individual as defined by 8
U.S.C. 1324b(a)(3). U.S. person also means any
juridical person organized under the laws of the
United States, or any jurisdiction within the
United States (e.g., corporation, business
association, partnership, society, trust, or any
other entity, organization or group that is
September 3, 2009

License Exceptions

incorporated to do business in the United States).
(3) Special restrictions.
(i) Destinations.
(A) No item may be exported or reexported
under paragraph (a) of this section to Country
Group E:2 (see Supplement No. 1 to this part)
except as permitted by paragraph (a)(2)(viii) of
this section (news media). These destination
restrictions apply to temporary exports to and for
use on any vessel, aircraft or territory under the
ownership, control, lease, or charter by any
country in Country Group E:2, or any national
thereof;
(B) No item may be exported under this
License Exception to Country Group D:1 (see
Supplement No. 1 to part 740) except:
(1) Commodities and software exported
under paragraph (a)(2)(viii), news media, of this
section;
(2) Items exported under paragraph
(a)(2)(i), tools of trade, of this section;
(3) Commodities exported or reexported
as kits of consisting of replacement parts,
consistent with the requirements of paragraph
(a)(2)(ii) of this section; and
(4) Commodities and software exported
or reexported for exhibition and demonstration in
accordance with the requirements of paragraph
(a)(2)(iii) of this section.
(C) These destination restrictions apply to
temporary exports to and for use on any vessel,
aircraft or territory under ownership, control,
lease, or charter by any country in Country Group
D:1 or E:2, or any national thereof. (See
Supplement No. 1 to part 740.)
(ii) Ineligible items.
Export Administration Regulations

Part 740-page 15

(A) Items that will be used outside of
Country Group A:1 (see Supplement No. 1 to part
740), Iceland, or New Zealand, either directly or
indirectly, in any sensitive nuclear activity as
described in §744.2 of the EAR may not be
exported or reexported to any destination under
the temporary exports and reexports provisions of
this License Exception.
(B) Exports and reexports of encryption
items controlled under ECCN 5E002 are
not permitted pursuant to this paragraph (a).
(iii) Use or disposition. No item may be
exported or reexported under this paragraph (a) if:
(A) An order to acquire the item has been
received before shipment;
(B) The exporter has prior knowledge that
the item will stay abroad beyond the terms of this
License Exception; or
(C) The item is for lease or rental abroad.
(iv) Restrictions specific to the export or
reexport of technology. The authorization for the
export or reexport of technology under the tools
of trade provisions of paragraph (a)(2)(i)(A) is
subject to the restrictions in this paragraph
(a)(3)(iv), as described in paragraphs
(a)(3)(iv)(A), (a)(3)(iv)(B) and (a)(3)(iv)(C).
(A) The authorization for the export or
reexport of technology under the tools of trade
provisions of paragraph (a)(2)(i)(A) of this
section may be used only by U.S. persons, as
defined in (a)(2)(i)(C), or their employees
traveling or on temporary assignment abroad.
The restrictions under this paragraph (a)(3)(iv)(A)
include the following three additional restrictions:
(1) Employees who are not U.S. persons,
as defined in (a)(2)(i)(C), may be authorized to
receive exports or reexports of the technology
eligible for export or reexport under the tools of
September 3, 2009

License Exceptions

trade provisions of paragraph (a)(2)(i)(A), only if
such employees are already eligible to receive
such technology through a current license or a
license exception or on account of NLR status;
(2) A U.S. employer of individuals who
are not U.S. persons, as defined in (a)(2)(i)(C),
must demonstrate and document for
recordkeeping purposes the reason that the
technology to be authorized for export or reexport
under the tools of trade provisions of paragraph
(a)(2)(i)(A) is needed by such employees in their
temporary business activities abroad on behalf of
the U.S. person employer, prior to using the tools
of trade provisions of paragraph (a)(2)(i)(A) of
this section. This documentation must be created
and maintained in accordance with the
recordkeeping requirements of part 762 of the
EAR; and
(3) The U.S. person must retain
supervision over the technology that has been
authorized for export or reexport under these or
other provisions.
(B) The exporting or reexporting party and the
recipient of the technology must take security
precautions to protect against unauthorized
release of the technology while the technology is
being shipped or transmitted and used overseas.
Examples of security precautions to help prevent
unauthorized access include the following:
(1) Use of secure connections, such as
Virtual Private Network connections, when
accessing IT networks for e-mail and other
business activities that involve the transmission
and use of the technology authorized under this
license exception;

Part 740-page 16

under this license exception.
(C) Technology authorized under these
provisions may not be used for foreign production
purposes or for technical assistance unless
authorized by BIS.
(4) Return or disposal of items. All items
exported or reexported under these provisions
must, if not consumed or destroyed in the normal
course of authorized temporary use abroad, be
returned as soon as practicable but no later than
one year after the date of export or reexport, to
the United States or other country from which the
items were so exported or reexported, or shall be
disposed of or retained in one of the following
ways:
(i) Permanent export or reexport. If the
exporter or the reexporter wishes to sell or
otherwise dispose of the items abroad, except as
permitted by this or other applicable provision of
the EAR, the exporter or reexporter must request
authorization by submitting a license application
to BIS in accordance with §§ 748.1, 748.4 and
748.6 of the EAR. (See part 748 of the EAR for
more information on license applications.) The
request should comply with all applicable
provisions of the EAR covering export directly
from the United States to the proposed
destination. The request must also be supported
by any documents that would be required in
support of an application for export license for
shipment of the same items directly from the
United States to the proposed destination. BIS
will advise the exporter of its decision.

(2) Use of password systems on electronic
devices that will store the technology authorized
under this license exception; and

(ii) Use of a license. An outstanding license
may also be used to dispose of items covered by
the provisions of this paragraph (a), provided that
the outstanding license authorizes direct shipment
of the same items to the same new ultimate
consignee in the new country of destination.

(3) Use of personal firewalls on electronic
devices that will store the technology authorized

(iii) Authorization to retain item abroad
beyond one year. If the exporter wishes to retain

Export Administration Regulations

September 3, 2009

License Exceptions

an item abroad beyond the 12 months authorized
by paragraph (a) of this section, the exporter must
request authorization by submitting a license
application in accordance with §§ 748.1, 748.4
and 748.6 of the EAR to BIS 90 days prior to the
expiration of the 12 month period. The request
must be sent to BIS at the address listed in part
748 of the EAR and should include the name and
address of the exporter, the date the items were
exported, a brief product description, and the
justification for the extension. If BIS approves
the extension request, the exporter will receive
authorization for a one-time extension not to
exceed six months. BIS normally will not allow
an extension for items that have been abroad
more than 12 months, nor will a second six month
extension be authorized.
Any request for
retaining the items abroad for a period exceeding
18 months must be made in accordance with the
requirements of paragraph (a)(4)(i) of this
section.
(5) Reexports.
(i) Commodities and software lawfully
exported from the United States may be
reexported to a new country or countries of
destination other than Sudan or Country Group
E:2 under provisions of this paragraph (a)
provided its terms and conditions are met and the
commodities and software are returned to the
country from which the reexport occurred.
(ii) Technology legally exported from the
United States may be reexported by a U.S. person
to U.S. persons and their employees in a new
country or countries of destination other than
Sudan or Country Group E:2 under provisions of
this paragraph (a)(2)(i)(A) provided its terms and
conditions are met and the technology is returned
to the country from which the reexport occurred.
(b) Exports of items temporarily
in the United States
Scope.

The provisions of this paragraph (b)

Export Administration Regulations

Part 740-page 17

describe the conditions for exporting foreignorigin items temporarily in the United States. The
provisions include the export of items moving in
transit through the United States, imported for
display at a U.S. exhibition or trade fair, returned
because unwanted, or returned because refused
entry.
Note 1 to paragraph (b) of this section: A
commodity withdrawn from a bonded warehouse
in the United States under a “withdrawal for
export” customs entry is considered as “moving
in transit”. It is not considered as “moving in
transit” if it is withdrawn from a bonded
warehouse under any other type of customs entry
or if its transit has been broken for a processing
operation, regardless of the type of customs entry.
Note 2 to paragraph (b) of this section: Items
shipped on board a vessel or aircraft and passing
through the United States from one foreign
country to another may be exported without a
license provided that (a) while passing in transit
through the United States, they have not been
unladen from the vessel or aircraft on which they
entered, and (b) they are not originally manifested
to the United States.
(1) Items moving in transit through the United
States. Subject to the following conditions, the
provisions of paragraph (b)(1) authorize export of
items moving in transit through the United States
under a Transportation and Exportation (T.& E.)
customs entry or an Immediate Exportation (I.E.)
customs entry made at a U.S. Customs Office.
(i) Items controlled for national security
reasons, nuclear proliferation reasons, chemical
and biological weapons reasons or missile
technology reasons may not be exported to
Country Group D:1, 2, 3, or 4 (see Supplement
No. 1 to part 740), respectively, under this
paragraph (b)(1).
(ii) Items may not be exported to Country
Group E:2 or Sudan under this section.
September 3, 2009

License Exceptions

(iii) The following may not be exported in
transit from the United States under this
paragraph (b)(1):
(A) Commodities shipped to the United
States under an International Import Certificate,
Form BIS-645P;
(B) Chemicals controlled under ECCN
1C350; or
(C) Horses for export by sea (refer to short
supply controls in part 754 of the EAR).
(iv) The provisions of this paragraph (b)(1)
apply to all shipments from Canada moving in
transit through the United States to any foreign
destination, regardless of the nature of the
commodities or software or their origin. For such
shipments the customs office at the U.S. port of
export will require a copy of Form B-13,
Canadian Customs Entry, certified or stamped by
Canadian customs authorities, except where the
shipment is valued at less than $50.00. (In transit
shipments originating in Canada that are exempt
from U.S. licensing, or made under a U.S. license
or applicable other U.S. License Exception do not
require this form.) The commodity or software
description, quantity, ultimate consignee, country
of ultimate destination, and all other pertinent
details of the shipment must be the same on a
required Form B-13, as on Commerce Form
7513,1 or when Form 7513 is not required, must
be the same as on Customs Form 7512. When
there is a material difference, a corrected Form
B-13 authorizing the shipment is required.
(2) Items imported for display at U.S.
exhibitions or trade fairs. Subject to the
following conditions, the provisions of this

1
The complete names of these forms are: Commerce
Form 7513, “Shipper's Export Declaration for Intransit Goods”; Customs Form 7512, “Transportation
Entry and Manifest of Goods Subject to Customs Inspection and Permit”.

Export Administration Regulations

Part 740-page 18

paragraph (b)(2) authorize the export of items that
were imported into the United States for display
at an exhibition or trade fair and were either
entered under bond or permitted temporary free
import under bond providing for their export and
are being exported in accordance with the terms
of that bond.
(i) Items may be exported to the country from
which imported into the United States. However,
items originally imported from Cuba may not be
exported unless the U.S. Government had
licensed the import from that country.
(ii) Items may be exported to any destination
other than the country from which imported
except:
(A) Items imported into the United States
under an International Import Certificate;
(B) Exports to Country Group E:2 or Sudan
(see Supplement No. 1 to part 740); or
(C) Exports to Country Group D:1, 2, 3, or
4 (see Supplement No. 1 to part 740) of items
controlled for national security reasons, nuclear
nonproliferation reasons, chemical and biological
weapons reasons or missile technology reasons,
respectively.
(3) Return of unwanted shipments. A foreignorigin item may be returned under this License
Exception to the country from which it was
imported if its characteristics and capabilities
have not been enhanced while in the United
States. No foreign-origin items may be returned
to Cuba.
(4)
Return of shipments refused entry.
Shipments of items refused entry by the U.S.
Customs Service, the Food and Drug
Administration, or other U.S. Government agency
may be returned to the country of origin, except
to:

September 3, 2009

License Exceptions

(i) A destination in Cuba; or
(ii) A destination from which the shipment has
been refused entry because of the Foreign Assets
Control Regulations of the Treasury Department,
unless such return is licensed or otherwise
authorized by the Treasury Department, Office of
Foreign Assets Control (31 CFR part 500).
(c) Exports of beta test software
(1) Scope. The provisions of this paragraph (c)
authorize exports and reexports to eligible
countries of beta test software intended for
distribution to the general public.
(2) Eligible countries. Encryption software
controlled under ECCN 5D002 is not eligible for
export or reexport to country in Country Group
E:1 under the provisions of this paragraph (c).
All other beta test software is eligible for export
or reexport to all destinations, except Cuba, Iran,
and Sudan under the provisions of this
paragraph (c).
(3) Eligible software. All software that is
controlled by the Commerce Control List
(Supplement No.1 to part 774 of the EAR), and
under Commerce licensing jurisdiction, is eligible
for export and reexport, subject to the restrictions
of this paragraph (c). Encryption software
controlled for “EI” reasons under ECCN 5D002 is
eligible for export and reexport under this
paragraph (c), provided that the exporter has
submitted the information described in paragraph
(c)(8) of this section by the time of export. Final
encryption products produced by the testing
consignee are subject to any applicable provisions
in §742.15(b)(2) of the EAR (for mass market
encryption commodities and software with
symmetric key length exceeding 64-bits) or
§740.17 of the EAR (License Exception ENC),
including review and reporting requirements.
(4) Conditions for use. Exports or reexports of
beta test software programs under the provisions
Export Administration Regulations

Part 740-page 19

of this paragraph (c) must meet all of the
following conditions:
(i) The software producer intends to market the
software to the general public after completion of
the beta testing, as described in the General
Software Note (see Supplement No. 2 to part 774
of the EAR) or the Cryptography Note in
Category 5, Part 2 (“Information Security”), of
the Commerce Control List (see Supplement No.1
to part 774 of the EAR);
(ii) The software producer provides the
software to the testing consignee free-of-charge or
at a price that does not exceed the cost of
reproduction and distribution; and
(iii) The software is designed for installation
by the end-user without further substantial
support from the supplier.
(5) Importer Statement. Prior to exporting or
reexporting any eligible software under this
paragraph (c), the exporter or reexporter must
obtain the following statement from the testing
consignee, which may be included in a contract,
non-disclosure agreement, or other document that
identifies the importer, the software to be
exported, the country of destination, and the
testing consignee.
“We certify that this beta test software will
only be used for beta testing purposes, and
will not be rented, leased, sold, sublicensed,
assigned, or otherwise transferred. Further,
we certify that we will not transfer or export
any product, process, or service that is the
direct product of the beta test software.”
(6) Use limitations. Only testing consignees that
provide the importer statement required by
paragraph (c)(5) of this section may execute any
software that was exported or reexported to them
under the provisions of this paragraph (c).
(7) Return or disposal of software. All beta
September 3, 2009

License Exceptions

Part 740-page 20

test software exported must be destroyed abroad
or returned to the exporter within 30 days of the
end of the beta test period as defined by the
software producer or, if the software producer
does not define a test period, within 30 days of
completion of the consignee's role in the test.
Among other methods, this requirement may be
satisfied by a software module that will destroy
the software and all its copies at or before the end
of the beta test period.
(8) Notification of beta test encryption software.
For beta test encryption software eligible under
this license exception you must, by the time of
export or reexport, submit the information
described in paragraphs (a) through (e) of
Supplement No. 6 to part 742 of the EAR by email to BIS at crypt@bis.doc.gov and to the ENC
Encryption Request Coordinator at enc@nsa.gov.

§740.10
SERVICING AND REPLACEMENT OF
PARTS AND EQUIPMENT (RPL)
This License Exception authorizes exports and
reexports associated with one-for-one
replacement of parts or servicing and replacement
of equipment.
(a) Parts
(1) Scope. The provisions of this paragraph (a)
authorize the export and reexport of one-for-one
replacement parts for previously exported
equipment.
(2) One-for-one replacement of parts.
(i) The term “replacement parts” as used in
this section means parts needed for the immediate
repair of equipment, including replacement of
defective or worn parts.
(It includes
subassemblies but does not include test
Export Administration Regulations

instruments or operating supplies). (The term
“subassembly” means a number of components
assembled to perform a specific function or
functions within a commodity. One example
would be printed circuit boards with components
mounted thereon. This definition does not
include major subsystems such as those composed
of a number of subassemblies.) Items that
improve or change the basic design
characteristics, e.g., as to accuracy, capability,
performance or productivity, of the equipment
upon which they are installed, are not deemed to
be replacement parts. For kits consisting of
replacement parts, consult §740.9(a)(2)(ii) of this
part.
(ii) Parts may be exported only to replace, on
a one-for-one basis, parts contained in
commodities that were: legally exported from the
United States; legally reexported; or made in a
foreign country incorporating authorized U.S.origin parts. (For exports or reexports to the
installed base in Libya see §764.7 of the EAR).
The conditions of the original U.S. authorization
must not have been violated. Accordingly, the
export of replacement parts may be made only by
the party who originally exported or reexported
the commodity to be repaired, or by a party that
has confirmed the appropriate authority for the
original transaction.
(iii) The parts to be replaced must either be
destroyed abroad or returned promptly to the
person who supplied the replacement parts, or to
a foreign firm that is under the effective control
of that person.
(3) Exclusions.
(i) No replacement parts may be exported to
repair a commodity exported under a license if
that license included a condition that any
subsequent replacement parts must be exported
only under a license.
(ii)

No parts may be exported to be held
September 3, 2009

License Exceptions

abroad as spare parts or equipment for future use.
Replacement parts may be exported to replace
spare parts that were authorized to accompany the
export of equipment, as those spare parts are
utilized in the repair of the equipment. This will
allow maintenance of the stock of spares at a
consistent level as parts are used.
(iii) No parts may be exported to any
destination, except the countries listed in
Supplement No. 3 to part 744 of the EAR
(Countries Not Subject to Certain Nuclear EndUse Restrictions in §744.2(a)), if the item is to be
incorporated into or used in nuclear weapons,
nuclear explosive devices, nuclear testing related
to activities described in §744.2(a) of the EAR,
the chemical processing of irradiated special
nuclear or source material, the production of
heavy water, the separation of isotopes of source
and special nuclear materials, or the fabrication of
nuclear reactor fuel containing plutonium, as
described in §744.2(a) of the EAR.
(iv) No replacement parts may be exported to
countries in Country Group E:1 (see Supplement
No. 1 to this part) (countries designated by the
Secretary of State as supporting acts of
international terrorism) if the commodity to be
repaired is an “aircraft” (as defined in part 772 of
the EAR) or national security controlled
commodity.
(v) No replacement parts may be exported to
countries in Country Group E:1 if the commodity
to be repaired is explosives detection equipment
controlled under ECCN 2A983 or related
software controlled under ECCN 2D983.
(vi) The conditions described in this paragraph
(a)(3) relating to replacement of parts do not
apply to reexports to a foreign country of parts as
replacements in foreign-origin products, if at the
time the replacements are furnished, the foreignorigin product is eligible for export to such
country under any of the License Exceptions in
this part or the exceptions in §734.4 of the EAR.
Export Administration Regulations

Part 740-page 21

(4) Reexports. Parts exported from the United
States may be reexported to a new country of
destination, provided that the restrictions described in paragraphs (a)(2) and (3) of this section
are met. A party reexporting U.S.-origin one-forone replacement parts shall ensure that the
commodities being repaired were shipped to their
present location in accordance with U.S. law and
continue to be legally used, and that either before
or promptly after reexport of the replacement
parts, the replaced parts are either destroyed or
returned to the United States, or to the foreign
firm in Country Group B (see Supplement No. 1
to part 740) that shipped the replacement parts.
(b) Servicing and Replacement
(1) Scope. The provisions of this paragraph (b)
authorize the export and reexport of items that
were returned to the United States for servicing
and the replacement of defective or unacceptable
U.S.-origin commodities and software.
(2) Commodities and software sent to a United
States or foreign party for servicing.
(i) Definition. “Servicing” as used in this
section means inspection, testing, calibration or
repair, including overhaul and reconditioning.
The servicing shall not have improved or changed
the basic characteristics, e.g., as to accuracy,
capability, performance, or productivity of the
commodity or software as originally authorized
for export or reexport.
(ii) Return of serviced commodities and
software. When the serviced commodity or
software is returned, it may include any
replacement or rebuilt parts necessary to its repair
and may be accompanied by any spare part, tool,
accessory, or other item that was sent with it for
servicing.
(iii) Commodities and software imported
from Country Group D:1 except the People’s
Republic of China (PRC). Commodities and
September 3, 2009

License Exceptions

software legally exported or reexported to a
consignee in Country Group D:1 (except the
People's Republic of China (PRC)) (see
Supplement No. 1 to part 740) that are sent to the
United States or a foreign party for servicing may
be returned under this License Exception to the
country from which it was sent, provided that
both of the following conditions are met:
(A) The exporter making the shipment is the
same person or firm to whom the original license
was issued; and
(B) The end-use and the end-user of the
serviced commodities or software and other
particulars of the transaction, as set forth in the
application and supporting documentation that
formed the basis for issuance of the license have
not changed.
(iv) Terrorist supporting countries. No
repaired commodity or software may be exported
or reexported to countries in Country Group E:1
(see Supplement No. 1 to this part).
(3) Replacements for defective or unacceptable
U.S.-origin equipment.
(i) Subject to the following conditions,
commodities or software may be exported or
reexported to replace defective or otherwise
unusable (e.g., erroneously supplied) items.
(A) The commodity or software to be
replaced must have been previously exported or
reexported in its present form under a license or
authorization granted by BIS.
(B) No commodity or software may be
exported or reexported to replace equipment that
is worn out from normal use, nor may any
commodity or software be exported to be held in
stock abroad as spare equipment for future use.
(C) The replacement item may not improve
the basic characteristic, e.g., as to accuracy,
Export Administration Regulations

Part 740-page 22

capability, performance, or productivity, of the
equipment as originally approved for export or
reexport under a license issued by BIS.
(D) No shipment may be made to countries
in Country Group E:1 (see Supplement No. 1 to
this part) or to any other destination to replace
defective or otherwise unusable equipment owned
or controlled by, or leased or chartered to, a
national of any of those countries.
(ii) Special conditions applicable to exports to
Country Group B and Country Group D:1. (See
Supplement No. 1 to part 740.) In addition to the
general conditions in paragraph (b)(3)(i) of this
section, the following conditions apply to exports
or reexports of replacements for defective or
unacceptable U.S.-origin commodities or software
to a destination in Country Group B or Country
Group D:1:
(A) By making such an export or reexport,
the exporter represents that all the requirements
of this paragraph (b) have been met and
undertakes to destroy or return the replaced parts
as provided in paragraph (b)(3)(ii)(C) of this
section.
(B) The defective or otherwise unusable
equipment must be replaced free of charge,
except for transportation and labor charges. If
exporting to the countries listed in Country Group
D:1 (except the PRC), the exporter shall replace
the commodity or software within the warranty
period or within 12 months of its shipment to the
ultimate consignee in the country of destination,
whichever is shorter.
(C) The commodity or software to be
replaced must either be destroyed abroad or
returned to the United States, or to a foreign firm
in Country Group B that is under the effective
control of the exporter, or to the foreign firm that
is providing the replacement part or equipment.
The destruction or return must be effected before,
or promptly after, the replacement item is
September 3, 2009

License Exceptions

exported from the United States.
(D) A party reexporting replacements for
defective or unacceptable U.S.-origin equipment
must ensure that the commodities or software
being replaced were shipped to their present
location in accordance with U.S. law and
continue to be legally used. See §764.7 of the
EAR for exports or reexports to the installed base
in Libya.
(c)Special Recordkeeping Requirements:
ECCNs 2A983 and 2D983
(1) In addition to any other recordkeeping
requirements set forth elsewhere in the EAR,
exporters are required to maintain records, as
specified in this section, for any items exported or
reexported pursuant to License Exception RPL to
repair or service previously legally exported or
reexported items controlled under ECCNs 2A983
and 2D983. The following information must be
specially maintained for each such export or
reexport transaction:
(i) A description of the equipment replaced,
repaired or serviced;
(ii) The type of repair or service;
(iii) Certification of the destruction or return of
equipment replaced;
(iv) Location of the equipment replaced,
repaired or serviced;
(v) The name and address of who received the
items for replacement, repair or service;
(vi) Quantity of items shipped; and
(vii) Country of ultimate destination.
(2) Records maintained pursuant to this section
may be requested at any time by an appropriate
BIS official as set forth in §762.7 of the EAR.
Export Administration Regulations

Part 740-page 23

§740.11
GOVERNMENTS, INTERNATIONAL
ORGANIZATIONS, AND
INTERNATIONAL INSPECTIONS UNDER
THE CHEMICAL WEAPONS
CONVENTION (GOV)
This License Exception authorizes exports and
reexports for international nuclear safeguards;
U.S. government agencies or personnel, and
agencies of cooperating governments; and
international inspections under the Chemical
Weapons Convention.
(a) International Safeguards
(1) Scope.
You may export and reexport
commodities or software to the International
Atomic Energy Agency (IAEA) and the European
Atomic Energy Community (Euratom), and
reexports by IAEA and Euratom for official
international safeguard use, as follows:
(i) Commodities or software consigned to the
IAEA at its headquarters in Vienna, Austria or
field offices in Toronto, Ontario, Canada or
Tokyo, Japan for official international safeguards
use. The IAEA is an international organization
that establishes and administers safeguards
designed to ensure that special nuclear materials
and other related nuclear facilities, equipment,
and material are not diverted from peaceful
purposes to non-peaceful purposes.
(ii) Commodities or software consigned to the
Euratom Safeguards Directorate in Luxembourg,
Luxembourg for official international safeguards
use. Euratom is an international organization of
European countries with headquarters in
Luxembourg. Euratom establishes and
administers safeguards designed to ensure that
special nuclear materials and other related nuclear
facilities, equipment, and material are not
diverted from peaceful purposes to non-peaceful
purposes.
September 3, 2009

License Exceptions

(iii) Commodities consigned to IAEA or
Euratom may be reexported to any country for
IAEA or Euratom international safeguards use
provided that IAEA or Euratom maintains control
of or otherwise safeguards the commodities and
returns the commodities to the locations described
in paragraphs (a)(1)(i) and (a)(1)(ii) of this
section when they become obsolete, are no longer
required, or are replaced.

Part 740-page 24

8A002.o.3.b; and
(i)
“Composite” structures or laminates
controlled by 1A002.a, having an organic
“matrix” and made from materials listed under
1C010.c or 1C010.d; and
(ii) [RESERVED]
(iii) [RESERVED]

(iv) Commodity or software shipments may be
made by commercial companies under direct
contract with IAEA or Euratom, or by
Department of Energy National Laboratories as
directed by the Department of State or the
Department of Energy.
(v) The monitoring functions of IAEA and
Euratom are not subject to the restrictions on
prohibited safeguarded nuclear activities described in §744.2(a)(3) of the EAR.
(vi) When commodities or software originally
consigned to IAEA or Euratom are no longer in
IAEA or Euratom official safeguards use, such
commodities may only be disposed of in
accordance with the regulations in the EAR.
(2) The following items controlled for national
security (NS) reasons under Export Control
Classification Numbers (ECCNs) identified on
the Commerce Control List may not be exported
or reexported under this License Exception to
destinations other than Austria, Belgium, Canada,
Denmark, Finland, France, Germany, Greece,
Ireland, Italy, Luxembourg, the Netherlands,
Portugal, Spain, Sweden, and the United
Kingdom: 1C001, 5A001.b.5, 6A001.a.1.b.1
object detection and location systems having a
sound pressure level exceeding 210 dB (reference
1 µPa at 1 m) for equipment with an operating
frequency in the band from 30 Hz to 2 kHz
inclusive, 6A001.a.2.a.1, 6A001.a.2.a.2,
6A001.a.2.a.3, 6A001.a.2.a.5, 6A001.a.2.a.6,
6A001.a.2.b, 6A001.a.2.e, 6A002.a.1.c,
6A008.l.3, 6B008, 8A001.b, 8A001.d,
Export Administration Regulations

(iv) Processing equipment controlled by
6A001.a.2.c and specially designed for real time
application with towed acoustic hydrophone
arrays; and
(v) Processing equipment, specially designed
for real time application bottom or bay cable
systems controlled by 6A001.a.2.f ; and
(vi) “Software”, as follows:
(A) [RESERVED]
(B)
Controlled by 5D001.a, specially
designed for the “development” or “production”
of equipment, functions or features controlled by
5A001.b.5; and
(C)
Controlled by 6D001 for items
controlled by 6A008.l.3 or 6B008; and
(D) Controlled by 6D003.a; and
(E) Controlled by 7D003.a or 7D003.b; and
(F) Controlled by 8D001, specially designed
for the “development” or “production” of
equipment controlled by 8A001.b, 8A001.d, or
8A002.o.3.b; and
(G)
Controlled by 9D001, specially
designed or modified for the “development” of
equipment or “technology” controlled by 9A011,
9E003.a.1, or 9E003.a.3.a; and

September 3, 2009

License Exceptions

(H) Controlled by 9D002,specially designed
or modified for the “production” of equipment
controlled by 9A011.
(3) No encryption items controlled for EI reasons
under ECCNs 5A002, 5D002, or 5E002 may be
exported under the provisions of this paragraph
(a).
(4) Restrictions. Nationals of countries in
Country Group E:1 may not physically or
computationally access computers that have been
enhanced by “electronic assemblies”, which have
been exported or reexported under License
Exception GOV and have been used to enhance
such computers by aggregation of processors so
that the APP of the aggregation exceeds the APP
parameter set forth in ECCN 4A003.b. of the
Commerce Control List in Supplement No. 1 to
part 774 of the EAR, without prior authorization
from the Bureau of Industry and Security.
(b) Governments
(1) Scope. The provisions of paragraph (b)
authorize exports and reexports of the items listed
in paragraph (b)(2) of this section to personnel
and agencies of the U.S. Government or agencies
of cooperating governments.
(2) Eligibility.
(i) Items for personal use by personnel and
agencies of the U.S. Government. This provision
is available for items in quantities sufficient only
for the personal use of members of the U.S.
Armed Forces or civilian personnel of the U.S.
Government (including U.S. representatives to
public international organizations), and their
immediate families and servants. Items for
personal use include household effects, food,
beverages, and other daily necessities.
(ii) Items for official use by personnel and
agencies of the U.S. Government. This provision
is available for items consigned to and for the
Export Administration Regulations

Part 740-page 25

official use of any agency of the U.S.
Government.
(iii)(A) Items for official use within national
territory by agencies of cooperating
governments. This License Exception is available
for all items consigned to and for the official use
of any agency of a cooperating government within
the territory of any cooperating government,
except items described in paragraph (a) to
Supplement No. 1 of this section:
(B) Reporting requirements. See §743.1 of
the EAR for reporting requirements for exports of
certain items under this paragraph (b)(2)(iii).
(iv) (A) Diplomatic and consular missions of
a cooperating government.
This License
Exception is available for all items consigned to
and for the official use of a diplomatic or consular
mission of a cooperating government located in
any country in Country Group B (see Supplement
No. 1 to part 740), except items described in
paragraph (b) of Supplement No. 1 of this section.
(B) Reporting requirements. See §743.1 of
the EAR for reporting requirements for exports of
certain items under this paragraph (b)(2)(iv).
(3) Definitions.
(i) “Agency of the U.S. Government” includes
all civilian and military departments, branches,
missions, government-owned corporations, and
other agencies of the U.S. Government, but does
not include such national agencies as the
American Red Cross or international
organizations in which the United States
participates such as the Organization of American
States. Therefore, shipments may not be made to
these non-government national or international
agencies, except as provided in (b)(2)(i) of this
section for U.S. representatives to these
organizations.
(ii) “Agency of a cooperating government”
includes all civilian and military departments,
September 3, 2009

License Exceptions

branches, missions, and other governmental
agencies of a cooperating national government.
Cooperating governments are the national
governments of countries listed in Country Group
A:1 (see Supplement No. 1 to part 740) and the
national governments of Argentina, Austria,
Finland, Hong Kong, Ireland, Korea (Republic
of), New Zealand, Singapore, Sweden,
Switzerland and Taiwan.
(c) International inspections under the
Chemical Weapons Convention
(CWC or Convention)
(1) The provisions of this paragraph (c) authorize
exports and reexports to the Organization for the
Prohibition of Chemical Weapons (OPCW) and
exports and reexports by the OPCW for official
international inspection and verification use under
the terms of the Convention. The OPCW is an
international organization that establishes and
administers an inspection and verification regime
under the Convention designed to ensure that
certain chemicals and related facilities are not
diverted from peaceful purposes to non-peaceful
purposes. These provisions authorize exports and
reexports for official OPCW use of the following:
(i) Commodities and software consigned to the
OPCW at its headquarters in The Hague for
official international OPCW use for the
monitoring and inspection functions set forth in
the Convention, and technology relating to the
maintenance, repair, and operation of such
commodities and software. The OPCW must
maintain effective control of such commodities,
software and technology.
(ii) Controlled technology relating to the
training of the OPCW inspectorate.
(iii) Controlled technology relating to a CWC
inspection site, including technology released as
a result of:
(A)

Part 740-page 26

equipment or facilities by foreign nationals of the
inspection team;
(B) Oral communication of controlled
technology to foreign nationals of the inspection
team in the U.S. or abroad; and
(C) The application to situations abroad of
personal knowledge or technical experience
acquired in the U.S.
(2) Exclusions. The following items may not be
exported or reexported under the provisions of
this paragraph (c):
(i) [RESERVED]
(ii) Inspection samples collected in the U.S.
pursuant to the Convention; and
(iii) Commodities and software that are no
longer in OPCW official use. Such items must be
disposed of in accordance with the EAR.
(3) Confidentiality. The application of the
provisions of this paragraph (c) is subject to the
condition that the confidentiality of business
information is strictly protected in accordance
with applicable provisions of the EAR and other
U.S. laws regarding the use and transfer of U.S.
goods and services.
(4) Restrictions. Restrictions. Nationals of
countries in Country Group E:1 may not
physically or computationally access computers
that have been enhanced by “electronic
assemblies”, which have been exported or
reexported under License Exception GOV and
have been used to enhance such computers by
aggregation of processors so that the APP of the
aggregation exceeds the APP parameter set forth
in ECCN 4A003.b. of the Commerce Control List
in Supplement No. 1 to part 774 of the EAR,
without prior authorization from the Bureau of
Industry and Security.

Visual inspection of U.S.-origin

Export Administration Regulations

September 3, 2009

License Exceptions

Part 740-page 27

§740.12
GIFT PARCELS AND HUMANITARIAN
DONATIONS (GFT)
(a) Gift parcels
(1) Scope. The provisions of paragraph (a)
authorize exports and reexports of gift parcels by
an individual (donor) addressed to an individual,
or a religious, charitable or educational
organization (donee) located in any destination
for the use of the donee or the donee's immediate
family (and not for resale). The gift parcel must
be provided free of charge to the donee.
However, payment by the donee of any handling
charges or of any fees levied by the importing
country (e.g., import duties, taxes, etc.) is not
considered to be a cost to the donee for purposes
of this definition of “gift parcel.”2
Note to paragraph (a) of this section: A gift
parcel, within the context of this paragraph (a),
does not include multiple parcels exported in a
single shipment for delivery to individuals
residing in a foreign country. Such multiple gift
parcels, if subject to the General Prohibitions
described in §736.2(b) of the EAR, must be
licensed by BIS. (See §748.8(d) and Supplement
No. 2 to Part 748 paragraph (d) of the EAR for
licensing of multiple gift parcels).
(2) Commodity, value and other limitations.

2

Many foreign countries permit the entry, duty-free,
of gift parcels that conform to regulations regarding
contents and marking. To secure this advantage, the
sender should show the words “U.S.A. Gift Parcel” on
the addressee side of the package and on any required
customs declarations. Information regarding the foreign postal regulations is available at local post offices.
Senders of gift parcels who wish information regarding
import duties of a foreign country should contact the
nearest Commercial Office, Consulate or Embassy of
the country concerned.
Export Administration Regulations

(i) Item limitations.
(A) Prohibited items.
(1) For Cuba no items listed on the
Commerce Control List other than items listed in
§ 740.19(b) of the EAR may be included in a gift
parcel.
(2) For all destinations, no items controlled
for chemical and biological weapons (CB),
missile technology (MT), national security (NS),
nuclear proliferation (NP) or encryption items
(EI) reasons on the Commerce Control List
(Supplement no. 1 to part 774 of the EAR) may
be included in a gift parcel.
(3)
Items prohibited for destinations in
Country Group D:1 or E:2. For destinations in
Country Group D:1 or E:2, military wearing
apparel may not be included in a gift parcel
regardless of whether all distinctive U.S. military
insignia, buttons, and other markings are
removed.
(4) Gold bullion, gold taels, and gold bars
are prohibited as are items intended for resale or
reexport.
(B) Eligible items. For all destinations, eligible
items are food (including vitamins); medicines,
medical supplies and devices (including hospital
supplies and equipment and equipment for the
handicapped); receive-only radio equipment for
reception of commercial/civil AM/FM and short
wave publicly available frequency bands, and
batteries for such equipment; clothing; personal
hygiene items; seeds; veterinary medicines and
supplies; fishing equipment and supplies;
soap-making equipment; as well as all other items
of a type normally sent as gifts between
individuals (including items listed in § 740.19(b)
of the EAR ) except for those items prohibited in
paragraph (a)(2)(i)(A) of this section. Items in
gift parcels must be in quantities normally given
as gifts between individuals.
September 3, 2009

License Exceptions

Example to paragraph (a)(2)(i)(B) of this
section. A watch or piece of jewelry is normally
sent as a gift. However, multiple watches, either
in one package or in subsequent shipments, would
not qualify for such gift parcels because the
quantity would exceed that normally given
between individuals. Similarly, a sewing machine
or bicycle within the value limit of this License
Exception may be an appropriate gift. However,
subsequent shipments of the same item to the
same donee would not be a gift normally given
between individuals.
(ii) Import requirements. The commodities
must be acceptable in type and quantity by the
recipient country for import as gifts.
Commodities exceeding the import limits may not
be included in gift parcels.
(iii) Frequency.
(A) Except for gift parcels of food to Cuba,
not more than one gift parcel may be sent from
the same donor to the same donee in any one
calendar month.
(B) There is no frequency limit on gift parcels
of food to Cuba.
(C) Parties seeking authorization to exceed
the frequency limit due to compelling
humanitarian concerns (e.g., for certain gifts of
medicine) should submit a license application in
accordance with §§ 748.1, 748.4 and 748.6 of the
EAR to BIS with complete justification.
(iv) Value. The combined total domestic retail
value of all commodities and software in a single
gift parcel may not exceed $800. This limit does
not apply to food sent in a gift parcel to Cuba.
(v) Ineligible recipients.
(A) No gift parcel may be sent to any of the
following officials of the Cuban Government:
ministers and vice-ministers; members of the
Export Administration Regulations

Part 740-page 28

Council of State; members of the Council of
Ministers; members and employees of the
National Assembly of People's Power; members
of any provincial assembly; local sector chiefs of
the Committees for the Defense of the
Revolution; Director Generals and sub-Director
Generals and higher of all Cuban ministries and
state agencies; employees of the Ministry of the
Interior (MININT); employees of the Ministry of
Defense (MINFAR); secretaries and first
secretaries of the Confederation of Labor of Cuba
(CTC) and its component unions; chief editors,
editors and deputy editors of Cuban state-run
media organizations and programs, including
newspapers, television, and radio; or members
and employees of the Supreme Court (Tribuno
Supremo Nacional).
(B) No gift parcel may be sent to any of the
following officials or members of the Cuban
Communist Party: members of the Politburo; the
Central Committee; Department Heads of the
Central Committee; employees of the Central
Committee; and the secretaries and first
secretaries of provincial Party central committees.
(C) No gift parcel may be sent to organizations
administered or controlled by the Cuban
Government or the Cuban Communist Party.
(3) How to export gift parcels. (i) A gift parcel
must be sent directly to the donee by the
individual donor, or for such donor by a
commercial or other gift-forwarding service or
organization. Each gift parcel must show, on the
outside wrapper, the name and address of the
donor, as well as the name and address of the
donee, regardless of whether sent by the donor or
by a forwarding service.
(ii) Each parcel must have the notation “GIFT
— Export License Not Required” written on the
addressee side of the package and the symbol
“GFT” written on any required customs
declaration.

September 3, 2009

License Exceptions

(b) Humanitarian donations
(1) Scope. The provisions of paragraph (b)
authorize exports or reexports by groups or
organizations of donations to meet basic human
needs when those groups or organizations have
experience in maintaining a verifiable system of
distribution that ensures delivery to the intended
beneficiaries.
(2) Basic human needs. Basic human needs are
defined as those requirements essential to
individual well-being: health, food, clothing,
shelter, and education.
These needs are
considered to extend beyond those of an
emergency nature and those that meet direct
needs for mere subsistence.
(3) Eligible donors. Eligible donors are U.S.
charitable organizations that have an established
record of involvement in donative programs and
experience in maintaining and verifying a system
of distribution to ensure delivery of commodities
and software to the intended beneficiaries.
Eligible distribution arrangements may consist of
any one or more of the following:
(i) A permanent staff maintained in the
recipient country to monitor the receipt and
distribution of the donations to the intended
beneficiaries;
(ii) Periodic spot-checks in the recipient
country by members of the exporter's staff; or
(iii) An agreement to utilize the services of a
charitable organization that has a monitoring
system in place.
(4) Donations. To qualify for export under the
provisions of this paragraph (b), the items must be
provided free of charge to the beneficiary. The
payment by the beneficiary, however, of normal
handling charges or fees levied by the importing
country (e.g., import duties, taxes, etc.) is not
considered to be a cost to the beneficiary for
purposes of this section.
Export Administration Regulations

Part 740-page 29

(5) Ineligible commodities and software. The
following commodities and software are not
eligible:
(i) Commodities and software controlled for
national security, chemical or biological weapons,
and nuclear non-proliferation, missile technology
or crime control reasons (see Supplement No. 1 to
part 774 of the EAR);
(ii) Exports for large-scale projects of the kind
associated with comprehensive economic growth,
such as dams and hydroelectric plants; or
(iii) Exports to Cuba of medical items
excluded by §746.2(b)(1) of the EAR.
(6) Eligible items. Eligible commodities and
software are those listed in Supplement No. 2 to
part 740.
(7) Additional recordkeeping requirements.
In addition to the recordkeeping requirements in
part 762 of the EAR, donors must keep records
containing the following information:
(i) The donor organization’s identity and past
experience as an exporter of goods to meet basic
human needs;
(ii) Past and current countries to which the
donative programs have been and are being
directed, with particular reference to donative
programs in embargoed destinations;
(iii) Types of projects and commodities
involved in the donative programs;
(iv) Specific class(es) of beneficiaries of
particular donated goods intended to be exported
under this License Exception; and
(v) Information concerning the source of
funding for the donative programs and the
projected annual value of exports of humanitarian
donations.
September 3, 2009

License Exceptions

Part 740-page 30

§740.13
TECHNOLOGY AND SOFTWARE —
UNRESTRICTED (TSU)
This license exception authorizes exports and
reexports of operation technology and software;
sales technology and software; software updates
(bug fixes); “mass market” software subject to the
General Software Note; and encryption source
code (and corresponding object code) that would
be considered publicly available under
§734.3(b)(3) of the EAR. Note that encryption
software subject to the EAR is not subject to the
General Software Note (see paragraph (d)(2) of
this section).
(a) Operation technology and software

code.
(ii) Destinations. Operation software and
technology may be exported or reexported to any
destination to which the equipment for which it is
required has been or is being legally exported or
reexported.
(b) Sales technology
(1) Scope. The provisions of paragraph (b)
authorize exports and reexports of sales
technology.
“Sales technology” is data
supporting a prospective or actual quotation, bid,
or offer to sell, lease, or otherwise supply any
item.
(2) Provisions and destinations.

(1) Scope. The provisions of paragraph (a)
permit exports and reexports of operation
technology and software. “Operation technology”
is the minimum technology necessary for the
installation, operation, maintenance (checking),
and repair of those commodities or software that
are lawfully exported or reexported under a
license, a License Exception, or NLR. The
“minimum necessary” operation technology does
not include technology for development or
production and includes use technology only to
the extent required to ensure safe and efficient
use of the commodities or software. Individual
entries in the software and technology
subcategories of the CCL may further restrict the
export or reexport of operation technology.

(i) Provisions. Sales technology may be
exported or reexported provided that:

(2) Provisions and Destinations.

(ii) Destinations. Sales technology may be
exported or reexported to any destination.

(i) Provisions. Operation software may be
exported or reexported provided that both of the
following conditions are met:
(A) The operation software is the minimum
necessary to operate equipment authorized for
export or reexport; and
(B)

The operation software is in object

Export Administration Regulations

(A) The technology is a type customarily
transmitted with a prospective or actual quotation,
bid, or offer in accordance with established
business practice; and
(B) Neither the export nor the reexport will
disclose the detailed design, production, or
manufacture technology, or the means of
reconstruction, of either the quoted item or its
product. The purpose of this limitation is to
prevent disclosure of technology so detailed that
the consignee could reduce the technology to
production.

NOTE: Neither this section nor its use means
that the U.S. Government intends, or is
committed, to approve a license application for
any commodity, plant, software, or technology
that may be the subject of the transaction to
which such quotation, bid, or offer relates.
Exporters are advised to include in any
quotations, bids, or offers, and in any contracts
September 3, 2009

License Exceptions

entered into pursuant to such quotations, bids, or
offers, a provision relieving themselves of
liability in the event that a license (when
required) is not approved by the Bureau of
Industry and Security.
(c) Software updates
The provisions of paragraph (c) authorize exports
and reexports of software updates that are
intended for and are limited to correction of
errors (“fixes” to “bugs”) in software lawfully
exported or reexported (original software). Such
software updates may be exported or reexported
only to the same consignee to whom the original
software was exported or reexported, and such
software updates may not enhance the functional
capacities of the original software. Such software
updates may be exported or reexported to any
destination to which the software for which they
are required has been legally exported or
reexported.
(d) General Software Note:
mass market software

Part 740-page 31

(Once such mass market encryption software has
been reviewed by BIS and released from “EI” and
“NS” controls pursuant to §742.15(b)(2) of the
EAR, it is controlled under ECCN 5D992 and is
thus outside the scope of License Exception
TSU.) See §742.15(b)(2) of the EAR for exports
and reexports of mass market encryption products
controlled under ECCN 5D992.
(3) Provisions and destinations.
(i) Destinations. Mass market software is
available to all destinations except destinations in
Country Group E:1 (see Supplement No. 1 to this
part).
(ii) Provisions. Mass market treatment is
available for software that is generally available
to the public by being:
(A) Sold from stock at retail selling points,
without restriction, by means of:
(1) Over the counter transactions;
(2) Mail order transactions; or

(1) Scope. The provisions of paragraph (d)
authorize exports and reexports of mass market
software subject to the General Software Note
(see Supplement No. 2 to part 774 of the EAR;
also referenced in this section).3
(2) Exclusions. The provisions of this paragraph
(d) are not available for encryption software
controlled for “EI” reasons under ECCN 5D002
or for encryption software with symmetric key
length exceeding 64-bits that qualifies as mass
market encryption software under the criteria in
the Cryptography Note (Note 3) of Category 5,
Part 2, of the Commerce Control List
(Supplement No. 1 to part 774 of the EAR).

3

“Mass market” software may fall under the
classification of “general use” software for export
clearance purposes. Exporters should consult the
Census Bureau FTSR for possible SED or AES
requirements.
Export Administration Regulations

(3) Telephone call transactions; and
(B) Designed for installation by the user
without further substantial support by the
supplier.
(e) Encryption source code (and
corresponding object code)
(1) Scope and eligibility. This paragraph (e)
authorizes exports and reexports, without review,
of encryption source code controlled by ECCN
5D002 that, if not controlled by ECCN 5D002,
would be considered publicly available under
§734.3(b)(3) of the EAR. Such source code is
eligible for License Exception TSU under this
paragraph (e) even if it is subject to an express
agreement for the payment of a licensing fee or
royalty for commercial production or sale of any
product developed using the source code. This
September 3, 2009

License Exceptions

paragraph also authorizes the export and reexport
of the corresponding object code (i.e., that which
is compiled from source code that is authorized
for export and reexport under this paragraph) if
both the object code and the source code from
which it is compiled would be considered
publicly available under §734.3(b)(3) of the EAR,
if they were not controlled under ECCN 5D002.
(2) Restrictions. This paragraph (e) does not
authorize:
(i) Export or reexport of any encryption
software controlled under ECCN 5D002 that does
not meet the requirements of paragraph (e)(1),
even if the software incorporates or is specially
designed to use other encryption software that
meets the requirements of paragraph (e)(1) of this
section; or
(ii) Any knowing export or reexport to a
country listed in Country Group E:1 in
Supplement No. 1 to part 740 of the EAR.
(3) Notification requirement. You must notify
BIS and the ENC Encryption Request
Coordinator via e-mail of the Internet location
(e.g., URL or Internet address) of the source code
or provide each of them a copy of the source code
at or before the time you take action to make the
software publicly available as that term is
described in §734.3(b)(3) of the EAR. If you
elect to meet this requirement by providing copies
of the source code to BIS and the ENC
Encryption Request Coordinator, you must
provide additional copies to each of them each
time the cryptographic functionality of the
software is updated or modified. If you elect to
provide the Internet location of the source code,
you must notify BIS and the ENC Encryption
Request Coordinator each time the Internet
location is changed, but you are not required to
notify them of updates or modifications made to
the encryption software at the previously notified
location. In all instances, submit the notification
or copy to crypt@bis.doc.gov and to
enc@nsa.gov.
Export Administration Regulations

Part 740-page 32

Note to paragraph (e). Posting encryption
source code and corresponding object code on the
Internet (e.g., FTP or World Wide Web site)
where it may be downloaded by anyone neither
establishes “knowledge” of a prohibited export or
reexport for purposes of this paragraph, nor
triggers any “red flags” necessitating the
affirmative duty to inquire under the “Know Your
Customer” guidance provided in Supplement No.
3 to part 732 of the EAR.
(f) Special Recordkeeping Requirements:
ECCNs 2D983 and 2E983
In addition to any other recordkeeping
requirements set forth elsewhere in the EAR,
exporters are required to maintain records, as
specified in this paragraph, when exporting
operation software or technology controlled under
ECCNs 2D983 and 2E983, respectively, under
License Exception TSU. Records maintained
pursuant to this section may be requested at any
time by an appropriate BIS official as set forth in
§762.7 of the EAR. The following information
must be specially maintained for each export or
reexport transaction, under License Exception
TSU, of operation software and technology
controlled by ECCNs 2D983 and 2E983:
(1) A description of the software or technology
exported or reexported, including the ECCN, as
identified on the CCL;
(2) A description of the equipment for which the
software or technology is intended to be used,
including the ECCN, as identified on the CCL;
(3) The intended end-use of the software or
technology;
(4) The name and address of the end-user;
(5) The quantity of software shipped; and
(6) The location of the equipment for which the
software or technology is intended to be used,
including the country of destination.
September 3, 2009

License Exceptions

Part 740-page 33

§740.14

games, and similar personal effects, and their
containers.

BAGGAGE (BAG)
(a) Scope
This License Exception authorizes individuals
leaving the United States either temporarily (i.e.,
traveling) or longer-term (i.e., moving) and crew
members of exporting or reexporting carriers to
take to any destination, as personal baggage, the
classes of commodities, software and technology
described in this section.
(b) Eligibility
Individuals leaving the United States may export
or reexport any of the following commodities or
software for personal use of the individuals or
members of their immediate families traveling
with them to any destination or series of
destinations. Individuals leaving the United
States who are U.S. persons, as defined in
paragraph (b)(4)(i), may export or reexport
technology as a tool of trade under paragraph
(b)(4) for their personal use or for the personal
use of members of their immediate families who
are traveling or moving with them, provided they
are also U.S. persons, as defined in paragraph
(b)(4)(i), to any destination or series of
destinations. Technology exports and reexports
authorized under paragraph (b)(4) of this section
may be made as actual shipments, transmissions,
or releases. Individuals leaving the United States
temporarily (i.e., traveling) must bring back items
exported and reexported under this License
Exception unless they consume the items abroad
or are otherwise authorized to dispose of them
under the EAR. Crew members may export or
reexport only commodities and software
described in paragraphs (b)(1) and (b)(2) of this
section to any destination.
(1) Personal effects. Usual and reasonable kinds
and quantities for personal use of wearing
apparel, articles of personal adornment, toilet
articles, medicinal supplies, food, souvenirs,
Export Administration Regulations

(2) Household effects. Usual and reasonable
kinds and quantities for personal use of furniture,
household effects, household furnishings, and
their containers.
(3) Vehicles. Usual and reasonable kinds and
quantities of vehicles, such as passenger cars,
station wagons, trucks, trailers, motorcycles,
bicycles, tricycles, perambulators, and their
containers.
(4) Tools of trade. Usual and reasonable kinds
and quantities of tools, instruments, or equipment
and their containers and also technology for use
in the trade, occupation, employment, vocation, or
hobby of the traveler or members of the
household who are traveling or moving. For
special provisions regarding encryption
commodities and software subject to EI controls,
see paragraph (f) of this section. For a special
provision that specifies restrictions regarding the
export or reexport of technology under this
paragraph, see paragraph (g).
(i) For purposes of this paragraph (b), U.S.
person is defined as follows: an individual who is
a citizen of the United States, an individual who
is a lawful permanent resident as defined by 8
U.S.C. 1101(a)(2) or an individual who is a
protected individual as defined by 8 U.S.C.
1324b(a)(3).
(ii) [RESERVED]
(c) Limits on eligibility
The export of any item is limited or prohibited, if
the kind or quantity is in excess of the limits
described in this section. In addition, the items
must be:
(1) Owned by the individuals (or by members of
their immediate families) or by crew members of
exporting carriers on the dates they depart from
September 3, 2009

License Exceptions

the United States;
(2) Intended for and necessary and appropriate
for the use of the individuals or members of their
immediate families traveling with them, or by the
crew members of exporting carriers;
(3) Not intended for sale or other disposal; and
(4) Not exported under a bill of lading as cargo if
exported by crew members.
(d) Special provision: unaccompanied
baggage
Individuals departing the United States may ship
unaccompanied baggage, which is baggage sent
from the United States on a carrier other than that
on which an individual departs. Crew members of
exporting carriers may not ship unaccompanied
baggage. Unaccompanied shipments under this
License Exception shall be clearly marked
“BAGGAGE.” Shipments of unaccompanied
baggage may be made at the time of, or within a
reasonable time before or after departure of the
consignee or owner from the United States.
Personal baggage controlled for chemical and
biological weapons (CB), missile technology
(MT), national security (NS), encryption items
(EI) or nuclear nonproliferation (NP) must be
shipped within 3 months before or after the month
in which the consignee or owner departs the
United States. However, commodities controlled
for CB, MT, NS, EI or NP may not be exported
under this License Exception as unaccompanied
baggage to Country Groups D:1, D:2, D:3, D:4, or
E:1. (See Supplement No. 1 of this part).

Part 740-page 34

(i) Not more than three shotguns may be taken
on any one trip.
(ii) The shotguns and shotgun shells must be
with the person's baggage but they may not be
mailed.
(iii) The shotguns and shotgun shells must be
for the person's exclusive use for legitimate
hunting or lawful sporting purposes, scientific
purposes, or personal protection, and not for
resale or other transfer of ownership or control.
Accordingly, except as provided in (e)(2) of this
section, shotguns may not be exported
permanently under this License Exception. All
shotguns and unused shotgun shells must be
returned to the United States. Note that since
certain countries may require an Import
Certificate or a U.S. export license before
allowing the import of a shotgun, you should
determine the import requirements of your
country of destination in advance.
(2) A nonresident alien leaving the United States
may export or reexport under this License
Exception only such shotguns and shotgun shells
as he or she brought into the United States under
the provisions of the Department of Justice
Regulations (27 CFR 478.115(d)).
(f) Special provisions: encryption commodities
and software subject to EI controls on the
Commerce Control List

(e) Special provisions:
shotguns and shotgun shells

(1) A U.S. citizen or permanent resident alien of
the United States as defined by 8 U.S.C.
1101(a)(20) may use this license exception to
export or reexport encryption commodities and
software to any destination not in Country Group
E:1 of Supplement No. 1 of this part.

(1) A United States citizen or a permanent
resident alien leaving the United States may
export or reexport shotguns with a barrel length
of 18 inches or over and shotgun shells under this
License Exception, subject to the following
limitations:

(2) A person other than a U.S. citizen or
permanent resident alien of the United States as
defined by 8 U.S.C. 1101(a)(20) (except a
national of a country listed in Country Group E:1
of Supplement No. 1 of this part who is not a U.S.
citizen or permanent resident alien of the United

Export Administration Regulations

September 3, 2009

License Exceptions

Part 740-page 35

States) may also use this license exception to
export or reexport encryption commodities and
software to any destination not in Country Group
E:1 of Supplement No. 1 of this part.

5E002 is not exported or reexported to any
destination listed in Country Group E:1 of
Supplement No. 1 of this part.

(g) Special provision: restrictions for
Export or Reexport of Technology.

§740.15
AIRCRAFT AND VESSELS (AVS)

This authorization for the export or reexport of
technology under the tools of trade provisions of
paragraph (b)(4) of this section may be used only
if:
(1) The technology is to be used overseas solely
by individuals or members of their immediate
families traveling with them provided they are
U.S. persons as defined in paragraph (b)(4)(i).
(2) The exporting or reexporting party and the
recipient take adequate security precautions to
protect against unauthorized access to the
technology while the technology is being
transmitted and used overseas. Examples of
security precautions to help prevent unauthorized
access include the following:
(i) Use of secure connections, such as Virtual
Private Network connections when accessing IT
networks for e-mail and other business activities
that involve the transmission and use of the
technology authorized under this license
exception;
(ii) Use of password systems on electronic
devices that will store the technology authorized
under this license exception; and
(iii) Use of personal firewalls on electronic
devices that will store the technology authorized
under this license exception.
(3) The technology authorized under these
provisions may not be used for foreign production
purposes or for technical assistance unless
authorized by BIS;
(4) Any encryption item controlled under ECCN
Export Administration Regulations

This License Exception authorizes departure from
the United States of foreign registry civil aircraft
on temporary sojourn in the United States and of
U.S. civil aircraft for temporary sojourn abroad;
the export of equipment and spare parts for
permanent use on a vessel or aircraft; and exports
to vessels or planes of U.S. or Canadian registry
and U.S. or Canadian Airlines' installations or
agents. Generally, no License Exception symbol
is necessary for export clearance purposes;
however, when necessary, the symbol “AVS”
may be used.
(a) Aircraft on temporary sojourn
(1) Foreign registered aircraft. An operating
civil aircraft of foreign registry that has been in
the United States on a temporary sojourn may
depart from the United States under its own
power for any destination, provided that:
(i) No sale or transfer of operational control of
the aircraft to nationals of a destination in
Country Group E:1 (see Supplement No. 1 to this
part) has occurred while in the United States;
(ii) The aircraft is not departing for the
purpose of sale or transfer of operational control
to nationals of a destination in Country Group E:1
(see Supplement No. 1 to this part); and
(iii) It does not carry from the United States
any item for which an export license is required
and has not been granted by the U.S. Government.
(2) U.S. registered aircraft.
(i) A civil aircraft of U.S. registry operating
September 3, 2009

License Exceptions

Part 740-page 36

under an Air Carrier Operating Certificate,
Commercial Operating Certificate, or Air Taxi
Operating Certificate issued by the Federal
Aviation Administration or conducting flights
under operating specifications approved by the
Federal Aviation Administration pursuant to 14
CFR part 129 of the regulations of the Federal
Aviation Administration, may depart from the
United States under its own power for any
destination, provided that:

(D) The aircraft does not carry from the
United States any item for which an export
license is required and has not been granted by
the U.S. Government; and

(A) The aircraft does not depart for the
purpose of sale, lease or other disposition of
operational control of the aircraft, or its
equipment, parts, accessories, or components to a
foreign country or any national thereof;
(B) The aircraft's U.S. registration will not
be changed while abroad;

(3) Criteria. The following nine criteria each
must be met if the flight is to qualify as a
temporary sojourn. To be considered a temporary
sojourn, the flight must not be for the purpose of
sale or transfer of operational control. An export
is for the transfer of operational control unless the
exporter retains each of the following indicia of
control:

(C) The aircraft is not to be used in any
foreign military activity while abroad; and

(i) Hiring of cockpit crew. Right to hire and
fire the cockpit crew.

(D) The aircraft does not carry from the
United States any item for which a license is
required and has not been granted by the U.S.
Government.

(ii) Dispatch of aircraft. Right to dispatch the
aircraft.

(ii) Any other operating civil aircraft of U.S.
registry may depart from the United States under
its own power for any destination, except to a
destination in Country Group E:1 (see
Supplement No. 1 to this part) (flights to these
destinations require a license), provided that:
(A) The aircraft does not depart for the
purpose of sale, lease or other disposition of
operational control of the aircraft, or its
equipment, parts, accessories, or components to a
foreign country or any national thereof;
(B) The aircraft's U.S. registration will not
be changed while abroad;
(C) The aircraft is not to be used in any
foreign military activity while abroad;
Export Administration Regulations

(E) The aircraft will be operated while abroad by a U.S. licensed pilot, except that during
domestic flights within a foreign country, the
aircraft may be operated by a pilot currently
licensed by that foreign country.

(iii) Selection of routes. Right to determine
the aircraft's routes (except for contractual
commitments entered into by the exporter for
specifically designated routes).
(iv) Place of maintenance. Right to perform
or obtain the principal maintenance on the
aircraft, which principal maintenance is
conducted outside a destination in Country Group
E:1 (see Supplement No. 1 to this part), under the
control of a party who is not a national of any of
these countries. (The minimum necessary intransit maintenance may be performed in any
country).
(v) Location of spares. Spares are not located
in a destination in Country Group E:1 (see
Supplement No. 1 to this part).
(vi) Place of registration. The place of
registration is not changed to a destination in
September 3, 2009

License Exceptions

Country Group E:1 (see Supplement No. 1 to this
part).
(vii)
No transfer of technology.
No
technology is transferred to a national of a
destination in Country Group E:1 (see
Supplement No. 1 to this part), except the
minimum necessary in transit maintenance to
perform flight line servicing required to depart
safely.
(viii) Color and logos. The aircraft does not
bear the livery, colors, or logos of a national of a
destination in Country Group E:1 (see
Supplement No. 1 to this part).
(ix) Flight number. The aircraft does not fly
under a flight number issued to a national of a
destination in Country Group E:1 (see
Supplement No. 1 to this part) as such a number
appears in the Official Airline Guide.
(4) Reexports. Civil aircraft legally exported
from the United States may be reexported under
this section, provided the restrictions described in
this paragraph (a) are met.

Part 740-page 37

permanent use on an aircraft, when necessary for
the proper operation of such aircraft, may be
exported or reexported for use on board an
aircraft of any registry, except an aircraft
registered in, owned or controlled by, or under
charter or lease to a country included in Country
Group D:1, Cuba, or a national of any of these
countries.
(3) Ship and plane stores. Usual and reasonable
kinds and quantities of the following commodities
may be exported for use or consumption on board
an aircraft or vessel of any registry during the
outgoing and immediate return flight or voyage.
(Note that fuel and related commodities that
qualify as ship or plane stores as described in this
License Exception must be exported under the
short supply License Exception SPR (see
§754.2(h) of the EAR.)
(i) Deck, engine, and steward department
stores, provisions, and supplies for both port and
voyage requirements;
(ii) Medical and surgical supplies;
(iii) Food stores;

(b) Equipment and spare parts for permanent
use on a vessel or aircraft, and ship and
plane stores

(iv) Slop chest articles;
(v) Saloon stores or supplies.

(1) Vessel. Equipment and spare parts for
permanent use on a vessel, when necessary for the
proper operation of such vessel, may be exported
or reexported for use on board a vessel of any
registry, except a vessel registered in Country
Group D:1 (see Supplement No. 1 to part 740),
Cuba, or owned or controlled by, or under charter
or lease to any of these countries or their
nationals. In addition, other equipment and
services for necessary repair to fishing and
fishery support vessels of Country Group D:1
may be exported for use on board such vessels
when admitted into the United States under
governing international fishery agreements.

(c) Shipments to U.S. or Canadian vessels,
planes and airline installations or agents
(1) Exports to vessels or planes of U.S. or
Canadian registry. Export may be made of the
commodities set forth in paragraph (c)(3) of this
section, for use by or on a specific vessel or plane
of U.S. or Canadian registry located at any
seaport or airport outside the United States or
Canada except a port in Cuba or Country Group
D:1 (excluding the PRC), (see Supplement No. 1
to part 740) provided that such commodities are

(2) Aircraft. Equipment and spare parts for
Export Administration Regulations

September 3, 2009

License Exceptions

all of the following:

Part 740-page 38
4

(i) Ordered by the person in command or the
owner or agent of the vessel or plane to which
they are consigned;
(ii) Intended to be used or consumed on board
such vessel or plane and necessary for its proper
operation;
(iii) In usual and reasonable kinds and
quantities during times of extreme need; and
(iv) Shipped as cargo for which a Shipper's
Export Declaration (SED) or Automated Export
System (AES) record has been filed in accordance
with the Foreign Trade Statistics Regulations (15
CFR part 30), except that an SED or AES record
is not required when any of the commodities,
other than fuel, is exported by U.S. airlines to
their own aircraft abroad for their own use.
(2) Exports to U.S. or Canadian airline's
installation or agent.
Exports of the
commodities set forth in paragraph (c)(3) of this
section, except fuel, may be made to a U.S. or
Canadian airline's5 installation or agent in any
foreign destination except Cuba or Country
Group D:1 (excluding the PRC), (see Supplement
No. 1 to part 740) provided such commodities are
all of the following:
(i) Ordered by a U.S. or Canadian airline and
consigned to its own installation or agent abroad;
(ii) Intended for maintenance, repair, or
operation of aircraft registered in either the
United States or Canada, and necessary for the
aircraft's proper operation, except where such
aircraft is located in, or owned, operated or

controlled by, or leased or chartered to, Cuba or
Country Group D:1 (excluding the PRC) (see
Supplement No. 1 to part 740) or a national of
such country;
(iii) In usual and reasonable kinds and
quantities; and
(iv) Shipped as cargo for which a Shipper's
Export Declaration (SED) or Automated Export
System (AES) record has been filed in accordance
with the Foreign Trade Statistics Regulations (15
CFR part 30), except that an SED or AES record
is not required when any of these commodities is
exported by U.S. airlines to their own
installations and agents abroad for use in their
aircraft operations.
(3) Applicable commodities. This paragraph (c)
applies to the following commodities, subject to
the provisions in paragraph (c)(1) and (c)(2) of
this section:
Note to paragraph (c)(3) of this section: Fuel
and related commodities for shipment to vessels
or planes of U.S. or Canadian registry as
described in this License Exception must be
shipped under the short supply License Exception
SPR (see §754.2(h) of the EAR);
(i) Deck, engine, and steward department
stores, provisions, and supplies for both port and
voyage requirements;
(ii) Medical and surgical supplies;
(iii) Food stores;
(iv) Slop chest articles;
(v) Saloon stores or supplies; and
(vi) Equipment and spare parts.

4

W here a license is required, see §§ 748.1,
748.4 and 748.6 of the EAR.
5

See Part 772 of the EAR for definitions of United
States and Canadian airlines.
Export Administration Regulations

(d) Vessels on temporary sojourn
(1) Foreign flagged vessels. A foreign flagged
vessel in the United States may depart from the
September 3, 2009

License Exceptions

United States under its own power for any
destination, provided that:
(i) No sale or transfer of operational control of
the vessel to nationals of a destination in Country
Group E:1 (see Supplement No.1 to this part) has
occurred while in the United States;
(ii) The vessel is not departing for the purpose
of sale or transfer of operational control to
nationals of a destination in Country Group E:1
(see Supplement No. 1 to this part); and
(iii) The vessel does not carry from the United
States any item for which a license is required
and has not been granted by the U.S. Government.
(2) U.S. flagged vessels. A U.S. flagged vessel
may depart from the United States under its own
power for any destination, provided that:
(i) The vessel does not depart for the purpose
of sale, lease, or transfer of operational control of
the vessel, or its equipment, parts, accessories, or
components, to a foreign country or any national
thereof;
(ii) The vessel's U.S. flag will not be changed
while abroad;

Part 740-page 39

port safely; and
(vii) The vessel does not bear the livery,
colors, or logos of a national of a destination in
Country Group E:1 (see Supplement No. 1 to this
part).
(3) Criteria for temporary sojourn of vessels.
The following criteria must be met if a voyage is
to be considered a temporary sojourn under this
paragraph (d). To be considered a temporary
sojourn, the voyage must not be for the purpose
of sale or transfer of operational control. A
transfer of operational control occurs unless the
exporter or reexporter retains each of the
following indicia of control:
(i) Hiring of crew. Right to hire and fire
the crew.
(ii) Dispatch of vessel. Right to dispatch
the vessel.
(iii) Selection of routes. Right to
determine the vessel's routes (except for
contractual commitments entered into by the
exporter for specifically designated routes).

(iv) The vessel will not carry from the United
States any item for which a license is required
and has not been granted by the U.S.
Government;

(iv) Place of maintenance. Right to
perform or obtain the principal maintenance on
the vessel, which principal maintenance is
conducted outside a destination in Country Group
E:1 (see Supplement No. 1 to this part), under the
control of a party who is not a national of any of
these countries.
(The minimum necessary
in-transit maintenance may be performed in any
country).

(v) Spares for the vessel are not located in a
destination in Country Group E:1 (see
Supplement No. 1 to this part );

(4) Reexports. Vessels subject to the EAR may
be reexported under this section on temporary
sojourn, provided that:

(vi) Technology is not transferred to a national
of a destination in Country Group E:1 (see
Supplement No. 1 to this part), except the
minimum necessary in-transit maintenance to
perform servicing required to depart and enter a

(i) The vessel does not depart for the purpose
of sale, lease, or transfer of operational control of
the vessel, or its equipment, parts, accessories, or
components, to a foreign country or any national
thereof;

(iii) The vessel will not be used in any foreign
military activity while abroad;

Export Administration Regulations

September 3, 2009

License Exceptions

Part 740-page 40

(ii) The vessel's flag will not be changed while
abroad;
(iii) The vessel will not be used in any foreign
military activity while abroad;
(iv) The vessel will not carry any item for
which a license is required and has not been
granted by the U.S. Government;
(v) Spares for the vessel are not located in a
destination in Country Group E:1 (see
Supplement No. 1 to this part);
(vi) Technology is not transferred to a national
of a destination in Country Group E:1 (see
Supplement No. 1 to this part), except the
minimum necessary in-transit maintenance to
perform servicing required to depart and enter a
port safely; and
(vii) The vessel does not bear the livery,
colors, or logos of a national of a destination in
Country Group E:1 (see Supplement No. 1 to this
part).
(5) No vessels may be exported or reexported
under this License Exception to a country in
Country Group E:1.

§ 740.16
ADDITIONAL PERMISSIVE
REEXPORTS (APR)
This License Exception allows the following
reexports:
(a) Reexports from Country Group A:1
and cooperating countries
Reexports may be made from Country Group A:1
or from cooperating countries, provided that:
(1) The reexport is made in accordance with the
conditions of an export authorization from the
Export Administration Regulations

government of the reexporting country;
(2) The commodities being reexported are not
controlled for NP, CB, MT, SI or CC reasons and
are not military commodities described in ECCN
0A919 or cameras described in ECCN
6A003.b.4.b; and
(3) The reexport is destined to either:
(i) A country in Country Group B that is not
also included in Country Group D:2, D:3, or D:4;
and the commodity being reexported is both
controlled for national security reasons and not
controlled for export to Country Group A:1; or
(ii) A country in Country Group D:1 (National
Security) (see Supplement No. 1 to part 740),
other than North Korea and the commodity being
reexported is controlled for national security
reasons.
(b) Reexports to and among specified
countries.
(1) Commodities that are not controlled for
nuclear nonproliferation or missile technology
reasons and that are not listed in paragraph (b)(2)
or (b)(3) of this section may be reexported to and
among Country Group A:1 and cooperating
countries, provided that eligible commodities are
for use or consumption within a Country Group
A:1 (see Supplement No. 1 to part 740) or
cooperating country, or for reexport from such
country in accordance with other provisions of
the EAR.
(2) Except as provided in paragraph (b)(3) of this
section, cameras described in ECCN 6A003.b.4.b
and "military commodities" described in ECCN
0A919 may not be exported under this paragraph
(b).
(3) Cameras described in ECCN 6A003.b.4.b
may be exported or reexported to and among:
Australia, Austria, Belgium, Bulgaria, Canada,
Cyprus, Czech Republic, Denmark, Estonia,
September 3, 2009

License Exceptions

Part 740-page 41

Finland, France, Germany, Greece, Hungary,
Iceland, Ireland, Italy, Japan, Latvia, Lithuania,
Luxembourg, Malta, the Netherlands, New
Zealand, Norway, Poland, Portugal, Romania,
Slovakia, Slovenia, South Africa, South Korea,
Spain, Sweden, Switzerland, Turkey, and the
United Kingdom if:
(i) Such cameras are fully packaged for use as
consumer ready civil products; or,
(ii) Such cameras with not more than 111,000
elements are to be embedded in civil products.
(c) Reexports to a destination to which direct
shipment from the United States is authorized
under an unused outstanding license may be made
under the terms of that license. Such reexports
shall be recorded in the same manner as exports
are recorded, regardless of whether the license is
partially or wholly used for reexport purposes.
(See part 762 of the EAR for recordkeeping
requirements.)
(d) Reexports of any item from Canada that, at
the time of reexport, may be exported directly
from the United States to the new country of
destination under any License Exception.
(e) Reexports (return) to the United States of any
item. If the reexporting party requests written
authorization because the government of the
country from which the reexport will take place
requires formal U.S. Government approval, such
authorization will generally be given.
(f) Reexports from a foreign destination to
Canada of any item if the item could be exported
to Canada without a license.
(g) Reexports
Liechtenstein.

between

Switzerland

and

(h) Shipments of foreign-made products that
incorporate U.S.-origin components may be
accompanied by U.S.-origin controlled spare
parts, provided that they do not exceed 10 percent
Export Administration Regulations

of the value of the foreign-made product, subject
to the restrictions in §734.4 of the EAR.
(i) Reexports to Sudan of items controlled by
ECCNs 2A994; 3A992.a; 5A991.g; 5A992;
6A991; 6A998; 7A994; 8A992.d, .e, .f, and .g;
9A990.a and .b; and 9A991.d and .e. In addition,
items in these ECCNs are not counted as
controlled U.S. content for purposes of
determining license requirements for U.S. parts,
components, and materials incorporated in
foreign-made products. However, the export
from the United States to any destination with
knowledge that they will be reexported directly or
indirectly, in whole or in part to Sudan is
prohibited without a license.
(j) Reexports of items controlled by NP Column
1 (see Supplement No. 1 to part 774 of the EAR)
to, among, and from countries described in
Country Group A:4 (see Supplement No. 1 to part
740), except:
(1) Reexports from countries that are not
identified in Country Group A:1 of items that are
controlled for NS reasons to destinations in
Country Group D:1; and
(2) Reexports to destinations in Country Group
E:2 and Country Group D:2.

§740.17
ENCRYPTION COMMODITIES, SOFTWARE AND TECHNOLOGY (ENC)
License Exception ENC authorizes export and
reexport of software and commodities and
components therefor that are classified under
ECCNs 5A002.a.1, a.2, a.5, a.6 or a.9, 5B002,
5D002, and technology that is classified under
ECCN 5E002. This License Exception ENC does
not authorize export or reexport to, or provision
of any service in any country listed in Country
Group E:1 in Supplement No. 1 to part 740 of the
EAR, or release of source code or technology to
September 3, 2009

License Exceptions

Part 740-page 42

any national of a country listed in Country Group
E:1. Reexports and transfers under License
Exception ENC are subject to the criteria set forth
in paragraph (c) of this section. Paragraph (d) of
this section sets forth information about review
requests required by this section. Paragraph (e)
sets forth reporting required by this section.

Note to paragraph (a)(1)(iii): All items
produced or developed with items exported or
reexported under this paragraph (a)(1) are subject
to the EAR. These items may require review and
authorization before sale, reexport or transfer,
unless otherwise authorized by license or license
exception.

(a) No prior review or post export
reporting required

(2) Exports and reexports to “U.S.
Subsidiaries.”
License Exception ENC
authorizes export and reexport of items classified
under ECCNs 5A002.a.1, .a.2, .a.5, .a.6, or .a.9,
5B002, 5D002, or 5E002 to any “U.S.
subsidiary,” wherever located, except to countries
listed in Country Group E:1 (see Supplement No.
1 to part 740 of the EAR), without prior review
by the U.S. Government. License Exception ENC
also authorizes export or reexport of such items
by a U.S. company and its subsidiaries to foreign
nationals who are employees, contractors or
interns of a U.S. company or its subsidiaries if the
items are for internal company use, including the
“development” or “production” of new products,
without prior review by the U.S. Government.

(1) Internal “development” or “production” of
new products.
License Exception ENC
authorizes exports and reexports of items
described in paragraph (a)(1)(i) of this section, to
end-users described in paragraph (a)(1)(ii) of this
section, for the intended end-use described in
paragraph (a)(1)(iii) of this section without prior
review by the U.S. Government.
(i) Eligible items. Eligible items are those
classified under ECCNs 5A002.a.1, .a.2, .a.5,
.a.6, or .a.9, 5B002, 5D002, or 5E002.
(ii) Eligible End-users. Eligible end-users are
'private sector end-users' wherever located, except
to countries listed in Country Group E:1 (see
Supplement No. 1 to part 740 of the EAR) that
are headquartered in a country listed in
Supplement No. 3 of this part.
Note to paragraph (a)(1)(ii): A 'private sector
end-user' is:

Note to paragraph (a)(2): All items produced
or developed with items exported or reexported
under this paragraph (a)(2) are subject to the
EAR. These items may require review and
authorization before sale, reexport or transfer,
unless otherwise authorized by license or license
exception.
(b) Prior review required

(1) An individual who is not acting on
behalf of any foreign government; or
(2) A commercial firm (including its
subsidiary and parent firms, and other
subsidiaries of the same parent) that is not wholly
owned by, or otherwise controlled by or acting on
behalf of, any foreign government.
(iii) Eligible End-use. The eligible end-use is
internal “development” or “production” of new
products by those end-users.
Export Administration Regulations

License Exception ENC authorizes the export and
reexport of commodities and software that require
a license under ECCNs 5A002.a.1, a.2, a.5, a.6, or
a.9, 5B002, or 5D002. Paragraph (b)(1)(i) of this
section also authorizes the export and reexport of
“technology” controlled for EI reasons under
ECCN 5E002 to the end-users indicated in
paragraph (b)(1)(i). Exports and reexports
authorized under this paragraph (b) of License
Exception ENC require submission of a review
request in accordance with paragraph (d) of this
section. License Exception ENC does not
September 3, 2009

License Exceptions

authorize the export or reexport of cryptanalytic
items to any "government end-user". Export or
reexport of items that provide an "open
cryptographic interface" is only authorized under
paragraph (b)(1)(i) of this section. Exports and
reexports authorized under paragraph (b) of this
section are subject to reporting requirements in
accordance with paragraph (e) of this section.
(1) Review required without waiting period.
Once your review request is registered with BIS
in accordance with paragraph (d) of this section,
License Exception ENC authorizes the exports or
reexports (except to countries listed in Country
Group E:1 of Supplement No. 1 to part 740 of
the EAR) to the following destinations:
(i) Export and reexport to countries listed in
Supplement No. 3 of this part.
License
Exception ENC authorizes the export and
reexport of encryption items, including EI
controlled commodities or software (excluding
source code) that are pending review for mass
market treatment (under §742.15(b) of the EAR),
to "government end-users" and non-"government
end-users" located in countries listed in
Supplement 3 of this part, as well as to foreign
subsidiaries or offices of firms, organizations and
governments headquartered in countries listed in
Supplement 3 of this part.
(ii) Export and reexport to countries not
listed in Supplement No. 3 of this part. License
Exception ENC authorizes the export and
reexport of the following commodities and
software:
(A) Encryption commodities and software
(including key management products), as follows:
for symmetric algorithms with key lengths not
exceeding 80 bits; for asymmetric algorithms with
key lengths not exceeding 1024 bits; and for
elliptic curve algorithms with key lengths not
exceeding 160 bits. (After review has been
completed, the issued Commodity Classification
Automated Tracking System (CCATS) document
will indicate authorization is under paragraph
Export Administration Regulations

Part 740-page 43

(b)(2) or (b)(3) of this section, whichever
paragraph is appropriate.)
(B) Encryption source code that would not
be eligible for export or reexport under License
Exception TSU, provided that a copy of the
source code is included in the review request, to
non-"government end-users" located in any
country except a country listed in Country Group
E:1 of Supplement No. 1 to part 740 of the EAR.
(After the review has been completed, the issued
Commodity Classification Automated Tracking
System (CCATS) document will indicate
authorization is under paragraph (b)(2) of this
section.)
(2) Review required with 30 day wait (non“government end-users” only). 30 days after
your review request is registered with BIS in
accordance with paragraph (d) of this section and
subject to the reporting requirements in paragraph
(e) of this section, License Exception ENC
authorizes the export or reexport of the following
commodities and software to non-“government
end-users” located in a country not listed in
Supplement No. 3 to this part or Country Group
E:1 of Supplement No. 1 to part 740 of the EAR:
(i) Network infrastructure software and
commodities and components thereof (including
commodities and software necessary to activate
or enable cryptographic functionality in network
infrastructure products) providing secure Wide
Area Network (WAN), Metropolitan Area
Network (MAN), Virtual Private Network (VPN),
satellite, digital packet telephony/media (voice,
video, data) over internet protocol, cellular or
trunked communications meeting any of the
following with key lengths exceeding 80-bits for
symmetric algorithms:
(A) Aggregate encrypted WAN, MAN, VPN
or backhaul throughput (includes communications
through wireless network elements such as
gateways, mobile switches, controllers, etc)
greater than 90 Mbps;
September 3, 2009

License Exceptions

Part 740-page 44

(B) Wire (line), cable or fiber-optic WAN,
MAN or VPN single-channel input data rate
exceeding154 Mbps;

center (NOC) command and infrastructure, public
safety radio, and digital forensics / computer
forensics;

(C) Media (voice/video/data) encryption or
centralized key management supporting more
than 250 concurrent encrypted data channels, or
encrypted signaling to more than 1,000 endpoints,
for digital packet telephony / media
(voice/video/data) over internet protocol
communications; or

(B) Cryptographic functionality that has
been modified or customized to customer
specification; or

(D) Air-interface coverage (e.g., through
base stations, access points to mesh networks,
bridges, etc.) exceeding 1,000 meters, where any
of the following applies:
(1) Maximum transmission data rates
exceeding 10 Mbps (at operating ranges beyond
1,000 meters);
(2) Maximum number of concurrent
full-duplex voice channels exceeding 30; or
(3) Substantial support is required for
installation or use;
(ii) Encryption source code that would not be
eligible for export or reexport under License
Exception TSU because it is not publicly
available as that term is used in §740.13(e)(1) of
the EAR, and the export or reexport of the
encryption source code that is not otherwise
eligible for License Exception ENC under
paragraph (b)(1)(ii)(B) of this section;
(iii) Encryption software, commodities or
components therefor, that have any of the
following:
(A) Been designed, modified, adapted or
customized for “government end-user(s)” or
government end-use (e.g., to secure police, state
security, or emergency response
communications), including encryption
commodities and software for external security
operations center (SOC) / network operations
Export Administration Regulations

(C) Cryptographic functionality or
“encryption component” (except encryption
software that would be considered publicly
available, as that term is used in §740.13(e)(1) of
the EAR) that is user-accessible and can be easily
changed by the user;
(iv) “Cryptanalytic items”;
(v) Encryption commodities and software that
provide functions necessary for quantum
cryptography, as defined in ECCN 5A002 of the
Commerce Control List;
(vi) Encryption commodities and software that
have been modified or customized for computers
classified under ECCN 4A003.
(3) Review required with 30 day waiting
period (“government end-users” or non“government end-users”). Thirty days after
your review request is registered with BIS in
accordance with paragraph (d) of this section,
License Exception ENC authorizes the export
and reexport of software and commodities and
components not listed in paragraph (b)(2) of this
section to either “government end-users” or non“government end-users” located in a country not
listed in Supplement No. 3 to this part or Country
Group E:1 of Supplement No. 1 to part 740 of
the EAR.
(4) Items excluded from review requirements.
(i) Short-range wireless encryption
functions. Commodities and software not
otherwise controlled in Category 5, but that are
classified under ECCN 5A002, 5B002 or 5D002
only because they incorporate components or
September 3, 2009

License Exceptions

software that provide short-range wireless
encryption functions (e.g., with a nominal
operating range not exceeding 100 meters
according to the manufacturer's specifications).
Commodities and software included in this
description include those designed to comply with
the Institute of Electrical and Electronic
Engineers (IEEE) 802.11 wireless LAN standard
(35 meters) for short-range use and those
designed to comply with the IEEE 802.15.1
standard that provide only the short-range
wireless encryption functionality, and would not
be classified under Category 5, part 1 of the CCL
(telecommunications) absent this encryption
functionality. Certain items excluded from
review by this paragraph may also be excluded
from review under paragraph (b)(4)(iii) of this
section (personal area networks) or paragraph
(b)(4)(iv) of this section (commodities and
software that provide "ancillary cryptography").
(ii) Foreign products developed with or
incorporating U.S.-origin encryption source
code, components, or toolkits. Foreign products
developed with or incorporating U.S.-origin
encryption source code, components or toolkits
that are subject to the EAR, provided that the
U.S.-origin encryption items have previously been
reviewed and authorized by BIS and the
cryptographic functionality has not been changed.
Such products include foreign-developed
products that are designed to operate with U.S.
products through a cryptographic interface.
(iii) Wireless "personal area network"
items. Wireless "personal area network" items
that implement only published or commercial
cryptographic standards and where the
cryptographic capability is limited to a nominal
operating range not exceeding 30 meters
according to the manufacturer's specifications.
See Nota Bene of the definition for “personal area
network” in §772.1 of the EAR.
(iv) “Ancillary cryptography.” Commodities
and software that perform “ancillary
cryptography.” See Nota Bene of definition of
Export Administration Regulations

Part 740-page 45

“ancillary cryptography” in §772.1 of the EAR.
NOTE to paragraph (b): A new product
review is required if a change is made to the
cryptographic functionality (e.g., algorithms) or
other technical characteristics affecting License
Exception ENC eligibility (e.g., encrypted
throughput) of the originally reviewed product.
However, a new product review is not required
when a change involves:
the subsequent
bundling, patches, upgrades or releases of a
product; name changes; or changes to a
previously reviewed encryption product where the
change is limited to updates of encryption
software components where the product is
otherwise unchanged.
(c) Reexport and transfer
U.S. or foreign distributors, resellers or other
entities who are not original manufacturers of
encryption commodities and software are
permitted to use License Exception ENC only in
instances where the export or reexport meets the
applicable terms and conditions of this section.
Transfers of encryption items listed in paragraph
(b)(2) of this section to “government end-users,”
or for government end-uses, within the same
country are prohibited, unless otherwise
authorized by license or license exception.
(d) Review request procedures
(1) Submission. To request review of your
encryption items under License Exception ENC,
you must submit to BIS and to the ENC
Encryption Request Coordinator form BIS-748P
(Multipurpose Application), or its electronic
equivalent in accordance with the instructions in
paragraph (r) of Supplement No. 2 to part 748
“Unique Application and Submission
Requirements” and the applicable information
described in paragraphs (a) through (e) of
Supplement No. 6 to part 742 of the EAR
(Guidelines for Submitting Review Requests for
Encryption Items). Failure to properly complete
these items may delay consideration of your
September 3, 2009

License Exceptions

review request.
(2) Action by BIS.
(i) Notification. Upon completion of its review,
BIS will send you written notice of the provisions
of this section, if any, under which your items
may be exported or reexported.
(ii) After 30 days. If BIS has not, within 30
days of registration of a complete review request
from you, informed you that your item is not
authorized for License Exception ENC, you may
export or reexport under the applicable provisions
of License Exception ENC.
(iii) Hold Without Action (HWA). BIS may
hold your review request without action if
necessary to obtain additional information or for
any other reason necessary to ensure an accurate
determination with respect to ENC eligibility.
Time on such “hold without action” status shall
not be counted towards fulfilling the 30 day
waiting period specified in this paragraph and in
paragraphs (b)(2) and (b)(3) of this section. BIS
may require you to supply additional relevant
technical information about your encryption
item(s) or information that pertains to their
eligibility for License Exception ENC at any
time, before or after the expiration of the 30 day
waiting period specified in this paragraph and in
paragraphs (b)(2) and (b)(3) of this section. If
you do not supply such information within 14
days after receiving a request for it from BIS, BIS
may return your review request(s) without action
or otherwise suspend or revoke your eligibility to
use License Exception ENC for that item(s). At
your request, BIS may grant you up to an
additional 14 days to provide the requested
information. Any request for such an additional
number of days must be made prior to the date by
which the information was otherwise due to be
provided to BIS, and may be approved if BIS
concludes that additional time is necessary.

Export Administration Regulations

Part 740-page 46

(e) Reporting requirements
(1) Semi-annual reporting requirement.
Semi-annual reporting is required for exports to
all destinations other than Canada, and for
reexports from Canada, under this license
exception.
Certain encryption items and
transactions are excluded from this reporting
requirement, see paragraph (e)(1)(iii) of this
section. For information about what must be
included in the report and submission
requirements, see paragraphs (e)(1)(i) and
(e)(1)(ii) of this section respectively.
(i) Information required. Exporters must
include for each item, the Commodity
Classification Automated Tracking System
(CCATS) number and the name of the item(s)
exported (or reexported from Canada), and the
following information in their reports:
(A) Distributors or resellers. For items
exported (or reexported from Canada) to a
distributor or other reseller, including subsidiaries
of U.S. firms, the name and address of the
distributor or reseller, the item and the quantity
exported or reexported and, if collected by the
exporter as part of the distribution process, the
end-user’s name and address;
(B) Individual consumers. For items
exported (or reexported from Canada) to
individual consumers through direct sale, the
name and address of the recipient, the item, and
the quantity exported; or
(C) Foreign manufacturers and products
that use encryption items. For exports (i.e.,
from the United States) or direct transfers (e.g.,
by a "U.S. subsidiary" located outside the United
States) of encryption components, source code,
general purpose toolkits, equipment controlled
under ECCN 5B002, technology, or items that
provide an “open cryptographic interface”
exported to a foreign developer or manufacturer
headquartered in a country not listed in
Supplement No. 3 to this part when intended for
September 3, 2009

License Exceptions

use in foreign products developed for commercial
sale, the names and addresses of the
manufacturers using these encryption items and,
if known, when the product is made available for
commercial sale, a non-proprietary technical
description of the foreign products for which
these encryption items are being used (e.g.,
brochures, other documentation, descriptions or
other identifiers of the final foreign product; the
algorithm and key lengths used; general
programming interfaces to the product, if known;
any standards or protocols that the foreign
product adheres to; and source code, if available).
(ii) Submission requirements. For exports
occurring between January 1 and June 30, a
report is due no later than August 1 of that year.
For exports occurring between July 1 and
December 31, a report is due no later than
February 1 the following year. These reports
must be provided in electronic form.
Recommended file formats for electronic
submission include spreadsheets, tabular text or
structured text. Exporters may request other
reporting arrangements with BIS to better reflect
their business models. Reports may be sent
electronically to BIS at crypt@bis.doc.gov and to
the ENC Encryption Request Coordinator at
enc@nsa.gov, or disks and CDs containing the
reports may be sent to the following addresses:
(A) Department of Commerce, Bureau of
Industry and Security, Office of National Security
and Technology Transfer Controls, 14th Street
and Pennsylvania Ave., N.W., Room 2705,
Washington, D.C. 20230, Attn: Encryption
Reports, and
(B) Attn: ENC Encryption Request
Coordinator, 9800 Savage Road, Suite 6940, Ft.
Meade, MD 20755-6000.
(iii) Exclusions from reporting requirement.
Reporting is not required for the following items
and transactions:
(A) Any encryption item exported (or
Export Administration Regulations

Part 740-page 47

reexported from Canada) under paragraph (a) of
this section;
(B) Encryption commodities or software
with a symmetric key length not exceeding 64
bits;
(C) Encryption commodities or software
authorized under paragraph (b)(3) of this section,
exported (or reexported from Canada) to
individual consumers;
(D) Encryption items exported (or
reexported from Canada) via free and anonymous
download;
(E) Encryption items from or to a U.S. bank,
financial institution or its subsidiaries, affiliates,
customers or contractors for banking or financial
operations;
(F) Items listed in paragraph (b)(4) of this
section, unless it is a foreign item described in
paragraph (b)(4)(ii) of this section that has
entered the United States;
(G) Foreign products developed by bundling
or compiling of source code;
(H) General purpose operating systems, or
desktop applications (e.g., e-mail, browsers,
games, word processing, data base, financial
applications or utilities) authorized under
paragraph (b)(3) of this section;
(I) Client Internet appliance and client
wireless LAN cards; or
(J) Other items as determined on a case-bycase basis.
(2) Reporting key length increases. Reporting
is required for commodities and software that,
after having been reviewed and authorized for
License Exception ENC by BIS, are modified
only to upgrade the key length used for
confidentiality or key exchange algorithms. Such
items may be exported or reexported under the
September 3, 2009

License Exceptions

Part 740-page 48

previously authorized provision of License
Exception ENC without further review.
(i) Information required.

horses before you submit a notification under this
license exception. See §748.3 of the EAR for
information on how to submit a commodity
classification request;

(A) A certification that no change to the
encryption functionality has been made other than
to upgrade the key length for confidentiality or
key exchange algorithms.

(3) The export or reexport is made pursuant to a
written contract, except for donations and
commercial samples which are not subject to this
contract requirement;

(B) The original Commodity Classification
Automated Tracking System (CCATS)
authorization number issued by BIS and the date
of issuance.

(4) The export or reexport is made within 12
months of the signing of the contract or within 12
months of notification that no objections were
raised (if no contract is required). In the case of
multiple partial shipments, all such shipments
must be made within the 12 months of the signing
of the contract or within 12 months of notification
that no objections were raised (if no contract is
required); and

(C) The new key length.
(ii) Submission requirements.
(A) The report must be received by BIS and
the ENC Encryption Request Coordinator before
the export or reexport of the upgraded product;
and
(B) The report is e-mailed
crypt@bis.doc.gov and enc@nsa.gov.

to

(5) You notify BIS prior to exporting or
reexporting according to the procedures set forth
in paragraph (c) of this section. If you intend to
engage in multiple shipments during the one-year
period after the signing of the contract, you need
only notify BIS prior to the first shipment.
(b) Restrictions

§740.18
AGRICULTURAL COMMODITIES (AGR)
(a) Eligibility requirements
License Exception AGR permits the export of
agricultural commodities to Cuba, as well as the
reexport of U.S. origin agricultural commodities
to Cuba, provided your transaction meets all of
the following criteria:
(1) The commodity meets the definition of
“agricultural commodities” in part 772 of the
EAR;
(2) The commodity is EAR99. You must have an
official commodity classification of EAR99 from
BIS for fertilizers, western red cedar and live
Export Administration Regulations

(1) No export or reexport to any individual or
entity designated as a Specially Designated
Terrorist or Foreign Terrorist Organization may
be made under License Exception AGR (see part
744 of the EAR).
(2) No export or reexport to or for use in
biological, chemical, nuclear warfare or missile
proliferation activities may be made under
License Exception AGR (see part 744 of the
EAR).
(3) No U.S.-owned or controlled foreign firm may
export from abroad to Cuba a foreign produced
agricultural commodity containing more than
10% U.S.-origin content. Such U.S.-owned or
controlled foreign firms require a specific license
from BIS as well as the Department of the
Treasury’s Office of Foreign Assets Control
September 3, 2009

License Exceptions

(OFAC). Transactions not subject to the EAR
(under 10% U.S.-origin content) require a license
from OFAC.
(c) Prior notification
(1) General requirement. You must notify BIS
prior to any export or reexport (or prior to the
first of multiple shipments) under License
Exception AGR.
(2) Procedures.
You must provide prior
notification of exports and reexports under
License Exception AGR by submitting a
completed application in accordance with
§ 748.1 of the EAR. The following blocks must
be completed, as appropriate: Blocks 1, 2, 3, 4, 5
(by marking box 5 “Other”), 14, 16, 17,18, 19, 21,
22 (a), (e), (f), (g), (h), (i), (j), 23, and 25
according to the instructions described in
Supplement No. 1 to part 748 of the EAR. If your
commodity is fertilizer, western red cedar or live
horses, you must confirm that BIS has previously
classified your commodity as EAR99 by placing
the Commodity Classification Automatic
Tracking System (CCATS) number in block
22(d). BIS will not initiate the registration of an
AGR notification unless the application is
complete.
(3) Action by BIS. Within two business days of
the registration of the AGR notification, BIS will
refer the notification for interagency review, or if
necessary return the notification without action
(e.g., if the information provided is incomplete).
Registration is defined as the point at which the
notification is entered into BIS's electronic
system.
(4) Review by other departments or agencies.
The Departments of Defense, State, and other
agencies, as appropriate, may review the AGR
notification. BIS must receive department or
agency objections within nine business days of
the referral. Unlike the provisions described in
§750.4(b) of the EAR, there are no provisions for
stopping the processing time of the AGR
Export Administration Regulations

Part 740-page 49

notification. If, within 11 business days after the
date of registration, any reviewing agency
provides a written objection that the recipient
may promote international terrorism or the
transaction raises nonproliferation concerns, you
may not use License Exception AGR. In such
cases, BIS will notify you that a license is
required for the export or reexport. BIS will then
process the AGR notification as a license
application in accordance with the provisions
described in §750.4 of the EAR, and the licensing
policies set forth in the EAR. At this time, BIS
may request additional information. When BIS
confirms that no agency has raised an objection
within eleven business days (as described in
paragraph (c)(5) of this section), you may proceed
with the transaction provided that you satisfy all
other requirements of License Exception AGR,
including the requirement to have a written
contract prior to any shipment (unless a donation
or commercial sample). (Note that the fact that
you have been advised that no agency has
objected to the transaction does not exempt you
from other licensing requirements under the EAR,
such as those based on knowledge of a prohibited
end-use or end-user as referenced in general
prohibition five (part 736 of the EAR) and set
forth in part 744 of the EAR.)
(5) Status of pending AGR notification
requests. You must contact BIS's System for
Tracking Export License Applications
(“STELA”) at (202) 482-2752 for status of your
pending AGR notification. (See §750.5 of the
EAR for procedures to access information on
STELA.) STELA will provide the date of
registration of the AGR notification. If no
department or agency objection is raised within
11 business days, STELA will, on the twelfth
business day following the date of registration,
provide you with confirmation of that fact. You
may not proceed with your shipment unless you
confirm with STELA that no objection has been
raised. BIS will subsequently issue written
confirmation to you. If an objection is raised,
STELA will indicate that a license is required.
The AGR notification will then be processed as a
September 3, 2009

License Exceptions

Part 740-page 50

license application. In addition, BIS may provide
notice of an objection by telephone, fax, courier
service, or other means.
(d) Donations
(1) Donations of agricultural commodities are
eligible for export and reexport to Cuba under
License Exception AGR, provided the transaction
meets the requirements and procedures of this
license exception (except the written contract
requirement).
(2) Donations of food items to non-governmental
organizations (NGOs) and individuals in Cuba
may also be eligible for License Exception GFT.
See §740.12 for eligibility requirements of gift
parcels and humanitarian donations under License
Exception GFT.

§740.19
CONSUMER COMMUNICATIONS
DEVICES (CCD)

(ECCN) 4A994.b that do not exceed an adjusted
peak performance of 0.02 weighted teraflops;
(2) Disk drives and solid state storage equipment
classified under ECCN 5A992 or designated
EAR99;
(3) Input/output control units (other than
industrial controllers designed for chemical
processing) designated EAR99;
(4) Graphics accelerators and
coprocessors designated EAR99;

graphics

(5) Monitors classified under ECCN 5A992 or
designated EAR99;
(6) Printers classified under ECCN 5A992 or
designated EAR99;
(7) Modems classified under ECCNs 5A991.b.2,
or 5A992 or designated EAR99;
(8) Network access controllers and
communications channel controllers classified
under ECCN 5A991.b.4 or designated EAR99;

(a) Authorization.
This License Exception authorizes the export or
reexport of commodities and software described
in paragraph (b) to Cuba subject to the conditions
in paragraphs (c) and (d) of this section. This
section does not authorize U.S.-owned or
-controlled entities in third countries to engage in
reexports of foreign produced commodities to
Cuba for which no license would be issued by the
Treasury Department pursuant to 31 CFR
515.559. Cuba is the only eligible destination
under this License Exception.
(b) Eligible Commodities and software.
Commodities and software eligible for export or
reexport under this section are:
(1) Computers designated EAR99 or classified
under Export Control Classification Number
Export Administration Regulations

(9) Keyboards, mice and similar devices
designated EAR99;
(10) Mobile phones, including cellular and
satellite telephones, personal digital assistants,
and subscriber information module (SIM) cards
and similar devices classified under ECCNs
5A992 or 5A991 or designated EAR99;
(11) Memory devices classified under ECCN
5A992 or designated EAR99;
(12) “Information security” equipment,
“software” (except “encryption source code”) and
peripherals classified under ECCNs 5A992 or
5D992 or designated EAR99;
(13) Digital cameras and memory cards classified
under ECCN 5A992 or designated EAR99;
September 3, 2009

License Exceptions

(14) Television and radio receivers classified
under ECCN 5A992 or designated EAR99;
(15) Recording devices classified under ECCN
5A992 or designated EAR99;
(16) Batteries, chargers, carrying cases and
accessories for the equipment described in this
paragraph that are designated EAR99; and
(17) “Software” (except “encryption source
code”) classified under ECCNs 4D994, 5D991 or
5D992 or designated EAR99 to be used for
equipment described in this paragraph (b).
(c) Donation Requirement.
This License Exception authorizes the export or
reexport of eligible commodities and software
that will be donated by the exporter or reexporter
to an eligible end-user or to eligible end-users
free of charge. The payment by an end-user of
any handling charges arising within the importing
country or any charges levied by the government
of the importing country shall not be considered a
charge for purposes of this paragraph.

Part 740-page 51

are not eligible end-users.
(2) Individuals. This License Exception may be
used to export eligible commodities and software
to and for the use of individuals other than the
following officials of the Cuban Government and
Cuban Communist Party:
(i) Ineligible Cuban Government Officials.
Ministers and vice-ministers; members of the
Council of State; members of the Council of
Ministers; members and employees of the
National Assembly of People's Power; members
of any provincial assembly; local sector chiefs of
the Committees for the Defense of the
Revolution; Director Generals and sub-Director
Generals and higher of all Cuban ministries and
state agencies; employees of the Ministry of the
Interior (MININT); employees of the Ministry of
Defense (MINFAR); secretaries and first
secretaries of the Confederation of Labor of Cuba
(CTC) and its component unions; chief editors,
editors and deputy editors of Cuban state-run
media organizations and programs, including
newspapers, television, and radio; or members
and employees of the Supreme Court (Tribuno
Supremo Nacional).

(d) Eligible End-users.
(1) Organizations. This License Exception may
be used to export or reexport eligible
commodities and software to and for the use of
independent non-governmental organizations.
The Cuban Government or the Cuban Communist
Party and organizations they administer or control

Export Administration Regulations

(ii) Ineligible Cuban Communist Party
Officials. Members of the Politburo; the Central
Committee; Department Heads of the Central
Committee; employees of the Central Committee;
and the secretaries and first secretaries of
provincial Party central committees.

September 3, 2009

License Exceptions

Supplement No. 1 to section 740.11--page 1

SUPPLEMENT NO. 1 TO §740.11 - ADDITIONAL RESTRICTIONS ON
USE OF LICENSE EXCEPTION GOV
(a) Items for official use within national
territory by agencies of a
Cooperating Government
License Exception GOV is available for all items
consigned to and for the official use of any
agency of a cooperating government within the
territory of any cooperating government, except:
(1) Items identified on the Commerce Control
List as controlled for national security (NS)
reasons under Export Control Classification
Numbers (ECCNs) as follows for export or
reexport to destinations other than Austria,
Belgium, Canada, Denmark, Finland, France,
Germany, Greece, Ireland, Italy, Luxembourg, the
Netherlands, Portugal, Spain, Sweden, or the
United Kingdom: 1C001, 5A001.b.5,
6A001.a.1.b.1 object detection and location
systems having a sound pressure level exceeding
210 dB (reference 1 µPa at 1 m) for equipment
with an operating frequency in the band from 30
Hz to 2 kHz inclusive, 6A001.a.2.a.1,
6A001.a.2.a.2, 6A001.a.2.a.3, 6A001.a.2.a.5,
6A001.a.2.6, 6A001.a.2.b, 6A001.a.2.e,
6A002.a.1.c, 6A008.l.3, 6B008, 8A001.b,
8A001.d, 8A002.o.3.b; and
(i) “Composite” structures or laminates
controlled by 1A002.a, consisting of an organic
“matrix” and made from materials controlled by
1C010.c or 1C010.d; and

(v) Processing equipment, specially designed
for real time application bottom or bay cable
systems controlled by 6A001.a.2.f ; and
(vi) “Software”, as follows:
(A) [RESERVED]
(B) Controlled by 5D001.a, specially
designed for the “development” or “production”
of equipment, functions or features controlled by
5A001.b.5; and
(C) Controlled by 6D001 for items
controlled by 6A008.l.3 or 6B008; and
(D) Controlled by 6D003.a; and
(E) Controlled by 7D003.a or 7D003.b; and
(F) Controlled by 8D001, specially designed
for the “development” or “production” of
equipment controlled by 8A001.b, 8A001.d, or
8A002.o.3.b;
(G) Controlled by 9D001, specially designed
or modified for the “development” of equipment
or “technology” controlled by 9A011, 9E003.a.1,
or 9E003.a.3.a; and
(H) Controlled by 9D002,specially designed
or modified for the “production” of equipment
controlled by 9A011;

(ii) [RESERVED]
(vii) “Technology”, as follows:
(iii) [RESERVED]
(iv) Processing equipment controlled by
6A001.a.2.c and specially designed for real time
application with towed acoustic hydrophone
arrays; and

(A) Controlled by 1E001 for items controlled
by 1A002.a as described by paragraph (a)(1)(i) of
this Supplement, or 1C001; and
(B) [RESERVED]
(C) Controlled by 5E001.a for the
“development” or “production” of digitally

Export Administration Regulations

September 3, 2009

License Exceptions

Supplement No. 1 to section 740.11--page 2

controlled radio receivers controlled by
5A001.b.5; or 5D001.a for “software” specially
designed for the “development” or “production”
of digitally controlled radio receivers controlled
by 5A001.b.5; and
(D) Controlled by 6E001 for the
“development” of equipment or “software” in
6A001.a.1.b.1, 6A001.a.2.a.1, 6A001.a.2.a.2,
6A001.a.2.a.3, 6A001.a.2.a.5, 6A001.a.2.a.6,
6A001.a.2.b, 6A001.a.2.c, 6A001.a.2.e,
6A001.a.2.f, 6A002.a.1.c, 6A008.l.3, 6B008,
6D001 (specially designed for the “production” or
“development” of equipment in 6A008.1.3 or
6B008), or 6D003.a as described in paragraph
(a)(1) of this Supplement; and
(E)
Controlled by 6E002 for the
“production” of equipment controlled by
6A001.a.1.b.1, 6A001.a.2.a.1, 6A001.a.2.a.2,
6A001.a.2.a.3, 6A001.a.2.a.5, 6A001.a.2.a.6,
6A001.a.2.b, 6A001.a.2.c, 6A001.a.2.e,
6A001.a.2.f, 6A002.a.1.c, 6A008.l.3, or 6B008,
as described in paragraph (a)(1) of this
Supplement; and
(F)
Controlled by 8E001 for items
controlled by 8A001.b, 8A002.o.3.b, or 8A001.d;
and
(G)
Controlled by 9E001 for
the
“development” of equipment or “software” in
9A011, 9D001 for the “development” of 9A011,
or 9D002 for the “production” of 9A011; and
(H) Controlled by 9E002 for
“production” of equipment in 9A011; and

the

(I) Controlled by 9E003.a.1; and

(3) Regional stability items controlled under
Export Control Classification Numbers (ECCNs)
6A002.a.1.c, 6E001 technology according to the
General Technology Note for the “development”
of equipment in 6A002.a.1.c, and 6E002
technology according to the General Technology
Note for the “production” of equipment in
6A002.a.1.c; or
(4) Encryption items controlled for EI reasons as
described in the Commerce Control List.
(b) Diplomatic and consular missions
of a cooperating government
License Exception GOV is available for all items
consigned to and for the official use of a
diplomatic or consular mission of a cooperating
government located in any country in Country
Group B (see Supplement No. 1 to part 740),
except:
(1) Items identified on the Commerce Control
List as controlled for national security (NS)
reasons under Export Control Classification
Numbers (ECCNs) as follows for export or
reexport to destinations other than Austria,
Belgium, Canada, Denmark, Finland, France,
Germany, Greece, Ireland, Italy, Luxembourg, the
Netherlands, Portugal, Spain, Sweden, or the
United Kingdom:
1C001, 5A001.b.5,
6A001.a.1.b.1 object detection and location
systems having a sound pressure level exceeding
210 dB (reference 1 µPa at 1 m) for equipment
with an operating frequency in the band from 30
Hz
to 2 kHz inclusive, 6A001.a.2.a.1,
6A001.a.2.a.2, 6A001.a.2.a.3, 6A001.a.2.a.5,
6A001.a.2.a.6, 6A001.a.2.b, 6A001.a.2.e,
6A002.a.1.c, 6A008.l.3, 6B008, 8A001.b,
8A001.d, 8A002.o.3.b; and

(J) Controlled by 9E003.a.3.a;
(2) Items identified on the Commerce Control
List as controlled for missile technology (MT),
chemical and biological warfare (CB), or nuclear
nonproliferation (NP) reasons;

(i) “Composite” structures or laminates
controlled by 1A002.a, having an organic
“matrix” and made from materials listed under
1C010.c or 1C010.d; and
(ii)

Export Administration Regulations

[RESERVED]
September 3, 2009

License Exceptions

(iii)

[RESERVED]

(iv) Processing equipment controlled by
6A001.a.2.c and specially designed for real time
application with towed acoustic hydrophone
arrays; and
(v) Processing equipment, specially designed
for real time application bottom or bay cable
systems controlled by 6A001.a.2.f ; and
(vi) “Software”, as follows:
(A) [RESERVED]
(B) Controlled by 5D001.a, specially
designed for the “development” or “production”
of equipment, functions or features controlled by
5A001.b.5; and
(C)
Controlled by 6D001 for items
controlled by 6A008.l.3 or 6B008; and
(D) Controlled by 6D003.a; and
(E) Controlled by 7D003.a or 7D003.b; and
(F) Controlled by 8D001, specially designed
for the “development” or “production” of
equipment controlled by 8A001.b, 8A001.d, or
8A002.o.3.b;
(G) Controlled by 9D001, specially designed
or modified for the “development” of equipment
or “technology” controlled by 9A011, 9E003.a.1,
or 9E003.a.3.a; and
(H) Controlled by 9D002,specially designed
or modified for the “production” of equipment
controlled by 9A011;
(vii) “Technology”, as follows:
(A)
Controlled by 1E001 for items
controlled by 1A002.a as described by paragraph
(a)(1)(i) of this Supplement, or 1C001; and
Export Administration Regulations

Supplement No. 1 to section 740.11--page 3

(B) [RESERVED]
(C) Controlled by 5E001.a for the
“development” or “production” of digitally
controlled radio receivers controlled by
5A001.b.5; or 5D001.a for “software” specially
designed for the “development” or “production”
of digitally controlled radio receivers controlled
by 5A001.b.5; and
(D)
Controlled by 6E001 for the
“development” of equipment or “software” in
6A001.a.1.b.1, 6A001.a.2.a.1, 6A001.a.2.a.2,
6A001.a.2.a.3, 6A001.a.2.a.5, 6A001.a.2.a.6,
6A001.a.2.b, 6A001.a.2.c, 6A001.a.2.e,
6A001.a.2.f, 6A002.a.1.c, 6A008.l.3, 6B008,
6D001 (specially designed for the “production” or
“development” of equipment in 6A008.1.3 or
6B008), or 6D003.a as described in paragraph
(a)(1) of this Supplement; and
(E) Controlled by 6E002 for the
“production” of equipment controlled by
6A001.a.1.b.1, 6A001.a.2.a.1, 6A001.a.2.a.2,
6A001.a.2.a.3,, 6A001.a.2.a.5, 6A001.a.2.a.6,
6A001.a.2.b, 6A001.a.2.c, 6A001.a.2.e,
6A001.a.2.f, 6A002.a.1.c, 6A008.l.3, or 6B008,
as described in paragraph (a)(1) of this
Supplement; and
(F) Controlled by 8E001 for items controlled
by 8A001.b, 8A002.o.3.b, or 8A001.d; and
(G) Controlled by 9E001 for items
controlled by 9D001; and
(H) Controlled by 9E002 for the production
of 9A011; and
(I) Controlled by 9E003.a.1; and
(J) Controlled by 9E003.a.3.a;
(2) Items identified on the Commerce Control
List as controlled for missile technology (MT),
chemical and biological warfare (CB), or nuclear
nonproliferation (NP) reasons;
September 3, 2009

License Exceptions

(3) Regional stability items controlled under
Export Control Classification Numbers (ECCNs)
6A002.a.1.c, 6E001 technology according to the
General Technology Note for the “development”
of equipment in 6A002.a.1.c, and 6E002
technology according to the General Technology

Export Administration Regulations

Supplement No. 1 to section 740.11--page 4

Note for the “production” of equipment in
6A002.a.1.c; or
(4) Encryption items controlled for EI reasons as
described in the Commerce Control List.

September 3, 2009

License Exceptions

Supplement No. 1 Part 740

SUPPLEMENT NO. 1 TO PART 740
Supplement No. 1 to part 740 is not formatted for this document. Please see file 740spir.

Export Administration Regulations

September 3, 2009

License Exceptions

Supplement No. 2 to part 740

SUPPLEMENT NO. 2 TO PART 740 - ITEMS THAT MAY BE DONATED TO MEET BASIC
HUMAN NEEDS UNDER THE HUMANITARIAN LICENSE EXCEPTION
(a) Health

(c) Clothes and Household Goods

Equipment for the Handicapped

Bedding

Hospital Supplies and Equipment

Clothes

Laboratory Supplies and Equipment

Cooking Utensils

Medical Supplies and Devices

Fabric

Medicine-Processing Equipment

Personal Hygiene Items

Medicines

Soap-Making Equipment

Vitamins

Weaving and Sewing Equipment

Water Resources Equipment

(d) Shelter

Food

Building Materials

Agricultural Materials and Machinery Suited to
Small-Scale Farming Operations

Hand Tools
(e) Education

Agricultural Research and Testing Equipment
Books
Fertilizers
Individual School Supplies
Fishing Equipment and Supplies Suited to
Small-Scale Fishing Operations
(b) Food

School Furniture
Special Education Supplies and Equipment for
the Handicapped

Insecticides
Pesticides

(f) Basic Support Equipment and Supplies
Necessary to Operate and Administer
the Donative Program

Seeds
Audio-Visual Aids for Training
Small-Scale Irrigation Equipment
Generators
Veterinary Medicines and Supplies
Office Supplies and Equipment

Export Administration Regulations

September 3, 2009

License Exceptions

Supplement No. 3 to part 740

SUPPLEMENT NO. 3 TO PART 740 - License Exception ENC Favorable Treatment Countries
Australia
Austria
Belgium
Bulgaria
Canada
Cyprus
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Iceland
Ireland
Italy
Japan
Latvia
Lithuania
Luxembourg
Malta
Netherlands
New Zealand
Norway
Poland
Portugal
Romania
Slovakia
Slovenia
Spain
Sweden
Switzerland
Turkey
United Kingdom

Export Administration Regulations

September 3, 2009