How do I know if my item is subject to the EAR?
You should review the Commerce Control List (CCL) and any applicable parts of the EAR to determine whether an item or activity is subject to the EAR.
What is de minimis calculation?
To calculate the de minimis percentage you divide the dollar value of the U.S.-origin controlled content by the dollar value of the non-U.S.-made item and then multiply by 100. You may not use a discounted value that is given to special customers.
What is the foreign direct product rule?
In short, the Huawei FDPR enlarged the range of US technology and software whose use outside the United States would subject foreign-produced items to US regulatory control, and required licensing for the provision of such items to Huawei, or for transactions involving such items to which Huawei is a party.
What is the difference between EAR and ITAR?
International Traffic In Arms (ITAR): Regulates the sale, distribution, and manufacturing of defense-related items. The Export Administration Regulations (EAR): Regulates dual-use items not covered by ITAR, but still applies to some defense-related items.
Is software subject to EAR?
Publicly available encryption object code “software” classified under ECCN 5D002 is not subject to the EAR when the corresponding source code meets the criteria specified in § 742.15(b) of the EAR.
How do ears become compliant?
To be ITAR or EAR compliant, a manufacturer or exporter whose articles or services appear on the USML or CCL lists must register with the U.S. State Department’s Directorate of Defense Trade Controls (DDTC).
What does the IRS consider de minimis?
In general, a de minimis benefit is one for which, considering its value and the frequency with which it is provided, is so small as to make accounting for it unreasonable or impractical.
What is US origin technology?
An “export” of U.S. origin technology or technical data can occur even in the United States simply by disclosing information or technology to a foreign national from a country other than the United States.