10/15/2009 – BIS publishes Final Rule on Encryption Simplification

The Bureau of Industry and Security (BIS) published the interim final rule entitled ”Encryption Simplification” on October 3, 2008 (73 FR 57495). This rule finalizes that rule, corrects errors published in the October 3, 2008 interim final rule, and resolves inconsistencies in that rule identified by the public.

This rule is effective October 15, 2009.

BIS published the interim final rule entitled ”Encryption Simplification” on October 3, 2008 (73 FR 57495). This rule removed section 744.9 of the EAR, which set forth requirements for authorization from BIS for U.S. persons to provide technical assistance (including training) to foreign persons with the intent to aid a foreign person in the development or manufacture outside the United States of encryption commodities or software that, if of U.S.- origin, would be ”EI” controlled under ECCNs 5A002 or 5D002.

Section 744.9 was added to the EAR in 1996 when jurisdiction over dual-use encryption items was transferred from the Department of State to the Department of Commerce. However, other parts of the EAR that referred to section 744.9 were inadvertently not removed. Therefore, this rule removes these references in § 730.5(d), § 734.5(c), § 736.2(b)(7)(ii), and § 744.1(a)(1). In addition, other corrections are made to harmonize with revisions made in the ”Encryption Simplification” rule published on October 3, 2008. Some of the revisions in this rule are the results of requests for clarification from the public on the October 3 encryption simplification rule.

For a full summary of the Federal Register Notice, you can access the link below:

http://www.bis.doc.gov/news/2009/fr_10152009.pdf