Encryption: License Exception ENC (740.17) Discussed in Depth 3.2.11
Price: $195.00
Item SKU: ELEEDD3211
Webinar
No other license exception requires pre-authorization to use, is more complex, produces more overhead, requires more record keeping or reporting, or is more difficult to apply. Yet if understood and applied correctly, License Exception ENC can actually simplify the exports and re-exports of encryption items, and reduce the potential for costly violations.
This license exception was introduced to the EAR in 1996 when encryption was moved from the United States Munitions List (USML) to the Commerce Control List (CCL). Since then it has gone through many changes, always with the intention of making the license exception easier to use, but not always living up to the intent. The latest change to ENC was made June 25, 2010, along with changes to the Category 5 Part 2 and to 742.15. These last changes to ENC, driven in large part by President Obama's mandate to the Commerce Department to improve the ability of U.S. companies to trade internationally, were probably the most ardent attempt yet to simplify the exception. Still, confusion persists. Exporters struggle with BIS's "negative list" approach to encryption.
Common exporter questions include, "Which encryption items qualify for 740.17.b.1 or better yet, which ones don't?" "How often do I have to submit an encryption registration?" "Do I have to share my ERN number with distributors or integrators?" "Can I have a product that qualifies for 740.17.b.2 AND 740.17.b.4 at the same time?" "Is a wireless access point considered an 'infrastructure product'?" "Do I still have to submit a semi-annual encryption report?" These are just some of the not-so-simple questions that companies who deal with encryption items must face every day.
During this presentation, we'll look at License Exception ENC and try to answer these questions and many more. We'll examine the process for qualifying "foreign-produced" encryption items that are exempt from filing requirements. We'll understand which items are eligible for 740.17.b.1 and the difference between 740.17.b.2 and b.3. We will look at the significance of 740.17.a.2 as it applies to foreign nationals in U.S. companies and their subsidiaries. We will also talk about the purpose of the ERN and encryption registration, and when you don't need to register.
Craig Ridgley joined MK Technology in September of 2010. He has over twelve years of consulting experience in import/export compliance, international trade, and supply chain management. He has developed and deployed successful trade compliance programs in thirteen countries spread across five continents. Craig also has eighteen years' experience in engineering management and engineering/manufacturing process, procedure, and standards development and implementation.
He was formerly the Principal
Trade Compliance Consultant for eXport
Compliance Partners and prior to that he was
with Symantec Corporation, Flextronics
International, and JP Morgan Chase
Vastera.