15 CFR 734 True False 2
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Questions and Answers

Foreign-produced items located outside the United States are not subject to the EAR.

False

Foreign-produced items must be a direct product of specified technology or software to be subject to the EAR.

True

Not all transactions involving foreign-produced items subject to the EAR require a license.

True

A major component of a plant refers to essential personnel involved in production activities.

<p>False</p> Signup and view all the answers

A foreign-produced item is subject to the EAR only if it meets the product scope in paragraph (b)(1) of the section.

<p>False</p> Signup and view all the answers

The National Security FDP rule does not consider the country scope when determining if a foreign-produced item is subject to the EAR.

<p>False</p> Signup and view all the answers

A foreign-produced item meets the product scope of paragraph (f)(1)(i) if it is the direct product of non-U.S.-origin technology or software.

<p>False</p> Signup and view all the answers

For a foreign-produced item to meet the product scope of paragraph (f)(1)(i), it must be identified in supplement no. 6 to part 746 of the EAR or designated EAR99.

<p>True</p> Signup and view all the answers

A foreign-produced item can meet the product scope of paragraph (f)(1)(ii) if it is produced by any plant located in the United States.

<p>False</p> Signup and view all the answers

To meet the destination scope of paragraph (f)(2), there must be 'knowledge' that the foreign-produced item is destined to any country except Russia or Belarus.

<p>False</p> Signup and view all the answers

A foreign-produced item is subject to the EAR if it meets only the product scope in paragraph (g)(1) of this section.

<p>False</p> Signup and view all the answers

For a foreign-produced item to meet the product scope of paragraph (g)(1)(i), it must be a direct product of technology or software specified in any ECCN in category A of the CCL.

<p>False</p> Signup and view all the answers

A foreign-produced item meets the end-user scope of paragraph (g)(2) if there is 'knowledge' that it will be incorporated into or used in the production or development of any part designated EAR99.

<p>False</p> Signup and view all the answers

The product scope applies if a foreign-produced item meets both conditions of paragraph (g)(1)(i) and (ii) of this section.

<p>False</p> Signup and view all the answers

To meet the end-user scope of paragraph (g)(2), there must be 'knowledge' that activities involving footnote 3 designated entities are taking place.

<p>True</p> Signup and view all the answers

A foreign-produced item can meet the product scope of paragraph (g)(1)(ii) if it is produced by a plant located inside the United States.

<p>False</p> Signup and view all the answers

A foreign-produced item is considered the 'direct product' of U.S.-origin 'technology' or 'software' if it meets both conditions specified in the 600 series ECCN.

<p>True</p> Signup and view all the answers

Foreign-produced items must meet two conditions to be considered the 'direct product' of a complete plant or a major component of a plant.

<p>True</p> Signup and view all the answers

A foreign-produced item can be subject to the EAR if it does not meet the product scope and end-user scope in either Entity List FDP rule footnote 1 provision.

<p>False</p> Signup and view all the answers

The product scope Entity List FDP rule applies only if a foreign-produced item meets the conditions of paragraph (e)(1)(i)(A) of this section.

<p>False</p> Signup and view all the answers

A foreign-produced item is subject to the EAR if it is produced by a plant or major component of a plant located outside the United States, regardless of where the plant was made.

<p>True</p> Signup and view all the answers

The country scope of the '600 series' FDP rule includes all countries listed in Country Group E:1, E:2, and E:3.

<p>False</p> Signup and view all the answers

A foreign-produced item is considered the 'direct product' of U.S.-origin 'technology' if it is specified in ECCN 5D001, 5D991, or 5E991 of the CCL.

<p>False</p> Signup and view all the answers

A foreign-produced wafer is excluded from being considered a foreign-produced item under the Entity List FDP rule.

<p>False</p> Signup and view all the answers

Activities involving designated entities are not included in determining the end-user scope of the Entity List FDP rule: Footnote 1.

<p>False</p> Signup and view all the answers

A foreign-produced item subject to the EAR must meet both the product scope and end-user scope in paragraph (e)(1) of this section.

<p>True</p> Signup and view all the answers

A foreign-produced item is subject to the EAR if it meets the product scope in paragraph (e)(2)(i) and the end-user scope in paragraph (e)(2)(ii).

<p>True</p> Signup and view all the answers

A foreign-produced item is subject to the EAR if it is a direct product of technology or software specified in ECCN 1D001, 1D991, 1E001, 1E002, 1E003, 1E991, 2D001, 2D993, 2D994, 2E001, 2E992, 2E993, 3D001, 3D002, 3D991, 3E001, 3E002, or 3E991.

<p>False</p> Signup and view all the answers

A foreign-produced item is subject to the EAR if it is a product of a plant or major component that is a direct product of U.S.-origin technology or software specified in ECCN 1D001, 1D991, 1E001, 1E002, 1E003, 1E991, 2D001, 2D993, 2D994, 2E001, 2E992, 2E993, 3D001, 3D991, 3E001, 3E002.

<p>True</p> Signup and view all the answers

The end-user scope of the Entity List FDP rule applies when a foreign-produced item will be incorporated into the production of any equipment ordered by an entity with a footnote 4 designation in the license requirement column.

<p>False</p> Signup and view all the answers

The Entity List FDP rule applies only to entities with a footnote 1 designation.

<p>False</p> Signup and view all the answers

In the Russia/Belarus FDP rule, a foreign-produced item is subject to the EAR if it meets the destination scope in paragraph (f)(2) of this section.

<p>True</p> Signup and view all the answers

The product scope of the Russia/Belarus FDP rule applies only if a foreign-produced item meets paragraph (f)(1)(i) of this section.

<p>False</p> Signup and view all the answers

Any entity with a footnote 4 designation can be involved as an end-user in a transaction related to a foreign-produced item.

<p>True</p> Signup and view all the answers

The Entity List FDP rule does not specify any particular ECCNs for direct products of technology or software.

<p>False</p> Signup and view all the answers

Knowledge about activities involving footnote 4 designated entities triggers the end-user scope of the Entity List FDP rule.

<p>True</p> Signup and view all the answers

A reexport under the EAR excludes releasing or transferring technology or source code to a foreign person of a country other than the foreign country where the release or transfer takes place.

<p>True</p> Signup and view all the answers

Transferring a spacecraft subject to the EAR that provides space-based logistics, assembly, or servicing of any spacecraft is eligible for reexport under License Exception STA.

<p>False</p> Signup and view all the answers

Releasing technology or source code to a foreign person of another country is always considered a deemed reexport to the most recent country of citizenship or permanent residency.

<p>True</p> Signup and view all the answers

A release of technology or software through oral exchanges with a foreign person is not considered a release under the EAR.

<p>False</p> Signup and view all the answers

A Transfer (in-country) under the EAR refers to a change in end use or end user of an item within the same foreign country.

<p>True</p> Signup and view all the answers

In-country transfer and Transfer (in-country) have different meanings under the EAR regulations.

<p>False</p> Signup and view all the answers

A foreign-produced item meets the product scope of National Security FDP rule if it is the direct product of U.S.-origin technology that requires a written assurance for a license.

<p>True</p> Signup and view all the answers

According to the 9x515 FDP rule, a foreign-produced item is subject to the EAR if it meets both the product and country scope.

<p>True</p> Signup and view all the answers

A foreign-produced item meets the product scope of 9x515 FDP rule if it is the direct product of U.S.-origin technology specified in ECCN 9D515 or 9E515.

<p>True</p> Signup and view all the answers

The destination country for a foreign-produced item under the 9x515 FDP rule must be listed in Country Group D:1, E:1, or E:2.

<p>False</p> Signup and view all the answers

The '600 series' FDP rule includes ECCN 0A919 because it includes the direct product of 600 series technology or software.

<p>True</p> Signup and view all the answers

A foreign-produced item is subject to the EAR under the National Security FDP rule if it meets both the product and country scope requirements.

<p>False</p> Signup and view all the answers

For a foreign-produced item to meet the product scope of National Security FDP rule, it must be a direct product of a complete plant.

<p>False</p> Signup and view all the answers

Under the 9x515 FDP rule, a foreign-produced item must be specified in a 9x515 ECCN to meet the product scope requirements.

<p>True</p> Signup and view all the answers

A foreign-produced item meets the country scope of National Security FDP rule if its destination is listed in Country Group D:1, E:1, or E:2.

<p>True</p> Signup and view all the answers

The '600 series' FDP rule applies to foreign-produced items that meet both the product and country scope requirements.

<p>False</p> Signup and view all the answers

A foreign-produced item is subject to the EAR if it meets both the product scope and the country and end-use scope as outlined in paragraph (i) of this section.

<p>True</p> Signup and view all the answers

The model certificate provided by BIS is a mandatory requirement under the EAR for exporters, reexporters, and transferors.

<p>False</p> Signup and view all the answers

If an exporter has not obtained a written certification from a supplier, no due diligence is required to determine if the item meets the scope in paragraph (h).

<p>False</p> Signup and view all the answers

A foreign-produced item is considered subject to the EAR if it is a direct product of technology or software listed under ECCN 3D001, 3D991, 3E001, or 3E002 of the CCL.

<p>True</p> Signup and view all the answers

The country and end-use scope in paragraph (i)(2) of this section includes use in the design, operation, and maintenance of supercomputers located only in the United States.

<p>False</p> Signup and view all the answers

The model certificate provided by BIS must be signed by any employee of the certifying company, regardless of their designation.

<p>False</p> Signup and view all the answers

According to the EAR, a foreign-produced item that is a direct product of technology or software specified in ECCN 4E992 would not be subject to EAR.

<p>False</p> Signup and view all the answers

Failure to obtain a certification means that exporters do not need to conduct any due diligence regarding the applicability of EAR to an item.

<p>False</p> Signup and view all the answers

A foreign-produced item is subject to EAR only if it meets either paragraph (i)(1)(i) or (ii) of this section, not both.

<p>False</p> Signup and view all the answers

An item being provided may be certified as subject to EAR based on paragraph (h)(2)(i) or (ii) without any written documentation from a supplier.

<p>False</p> Signup and view all the answers

A foreign-produced item subject to the EAR must meet the product scope outlined in paragraph (h)(1) of this section.

<p>True</p> Signup and view all the answers

A foreign-produced item incorporated into 'equipment' purchased by a Footnote 3 designated entity is not subject to the EAR.

<p>False</p> Signup and view all the answers

If a foreign-produced item is the 'direct product' of specified technology, it meets the product scope of the advanced computing FDP rule.

<p>True</p> Signup and view all the answers

A foreign-produced item destined to the PRC for incorporation into equipment not designated EAR99 meets the destination scope of paragraph (h)(2) of this section.

<p>True</p> Signup and view all the answers

Foreign-produced items with ECCN 4A090 are not considered products that meet the destination or end use scope of paragraph (h)(2) of this section.

<p>False</p> Signup and view all the answers

Entities listed on the Entity List with a footnote 3 designation are always considered military end users for paragraph (g).

<p>False</p> Signup and view all the answers

A foreign-produced item that is a 'product of a complete plant' meets both the product and destination scopes under the advanced computing FDP rule.

<p>True</p> Signup and view all the answers

Technology developed by entities headquartered in non-PRC countries for integrated circuit production is not covered under the advanced computing FDP rule.

<p>False</p> Signup and view all the answers

A foreign-produced item integrated into equipment that will be used by an end-user designated in footnote 3 is not subject to the EAR.

<p>False</p> Signup and view all the answers

All transactions involving foreign-produced items that are subject to the EAR require a license according to paragraph (h)(3).

<p>False</p> Signup and view all the answers

A patent application being sent to a foreign country before six months after filing in the U.S. is not subject to the EAR.

<p>True</p> Signup and view all the answers

An actual shipment out of the United States is not considered an export according to the EAR.

<p>False</p> Signup and view all the answers

Conducting investigations outside the United States falls under the purview of BIS officials authorized by the Export Control Reform Act of 2018.

<p>True</p> Signup and view all the answers

Releasing source code to a foreign person in the U.S. is not considered a deemed export according to the EAR.

<p>False</p> Signup and view all the answers

Compliance with foreign laws and regulations relieves one from the responsibility of complying with U.S. laws and regulations.

<p>False</p> Signup and view all the answers

Exporting a spacecraft subject to the EAR that provides space-based logistics does not require a license under License Exception STA.

<p>False</p> Signup and view all the answers

A person in the U.S. transferring control of a spacecraft subject to the EAR to a person in Country Group D:5 needs a license for the transfer.

<p>True</p> Signup and view all the answers

Releasing 'technology' or source code to a foreign person in the U.S. is not considered an export.

<p>False</p> Signup and view all the answers

Deemed exports do not include transferring by a person in the U.S. of control or ownership of spacecraft subject to the EAR to another country.

<p>False</p> Signup and view all the answers

Transferring an item through certain countries listed in the EAR to a specified destination does not trigger an export according to EAR regulations.

<p>False</p> Signup and view all the answers

Study Notes

Export Control Reform Act of 2018

  • Authorizes the Secretary of Commerce to undertake activities outside the United States
  • Includes conducting investigations, requiring and obtaining information from persons, and conducting pre-license checks and post-shipment verifications

BIS Activities Conducted Outside the United States

  • BIS officials will act with due care in the jurisdiction of a foreign nation
  • BIS officials will consult and coordinate with the appropriate U.S. Government agencies and act in a manner consistent with the United States' international commitments and agreements

Effect on Foreign Laws and Regulations

  • Compliance with EAR does not relieve one of the responsibility to comply with applicable foreign laws and regulations
  • Compliance with foreign laws and regulations does not relieve one of the responsibility to comply with U.S. laws and regulations, including the EAR

Export

  • An export can be an actual shipment or transmission out of the United States
  • An export can also be the release of technology or source code to a foreign person in the United States (deemed export)
  • An export can also be the transfer of registration, control, or ownership of a spacecraft subject to the EAR

Reexport

  • A reexport can be the shipment or transmission of an item from one foreign country to another
  • A reexport can also be the release of technology or source code to a foreign person in a foreign country

Foreign-Direct Product (FDP) Rules

  • FDP rules apply to foreign-produced items that are the direct product of specified technology or software
  • FDP rules also apply to foreign-produced items produced by a plant or major component of a plant that itself is a direct product of specified technology or software

National Security FDP Rule

  • Applies to foreign-produced items that are the direct product of U.S.-origin technology or software
  • Applies to foreign-produced items destined to countries in Country Group D:1, E:1, or E:2

9x515 FDP Rule

  • Applies to foreign-produced items that are the direct product of 9x515 technology or software
  • Applies to foreign-produced items destined to countries in Country Group D:5, E:1, or E:2

600 Series FDP Rule

  • Applies to foreign-produced items that are the direct product of 600 series technology or software
  • Applies to foreign-produced items destined to countries in Country Group D:1, D:3, D:4, D:5, E:1, or E:2

Entity List FDP Rule

  • Applies to foreign-produced items that are the direct product of technology or software specified in ECCN 3D001, 3D991, and others
  • Applies to foreign-produced items that are produced by a plant or major component of a plant that is a direct product of specified technology or software
  • Applies to foreign-produced items that will be incorporated into, or used in the production or development of, any part, component, or equipment produced, purchased, or ordered by an entity with a footnote 1 or 4 designation in the Entity List

Russia/Belarus FDP Rule

  • Applies to foreign-produced items that are the direct product of specified technology or software
  • Applies to foreign-produced items destined to Russia or Belarus

Definitions

  • Major component: essential equipment that is essential to the production of an item, including testing equipment

  • Direct product: an item that is directly produced by specified technology or software### Foreign Direct Product (FDP) Rules

  • Two types of FDP rules: Russia/Belarus FDP rule and Advanced Computing FDP rule

  • Russia/Belarus FDP rule applies to foreign-produced items that meet both product scope and destination scope

Product Scope of Russia/Belarus FDP Rule

  • Meets both conditions:
    • Foreign-produced item is the "direct product" of U.S.-origin "technology" or "software" subject to the EAR, specified in any ECCN in product groups D or E of the CCL
    • Foreign-produced item is identified in supplement no. 6 to part 746 of the EAR or is not designated EAR99

Destination Scope of Russia/Belarus FDP Rule

  • Meets condition:
    • There is "knowledge" that the foreign-produced item is destined to Russia or Belarus or will be incorporated into or used in the "production" or "development" of any "part," "component," or "equipment" not designated EAR99 and produced in or destined to Russia or Belarus

Russia/Belarus-Military End User FDP Rule

  • Foreign-produced item is subject to the EAR if it meets both product scope and end-user scope
  • Product scope applies if foreign-produced item meets conditions of either:
    • "Direct product" of "technology" or "software" subject to the EAR, specified in any ECCN in product groups D or E in any categories of the CCL
    • "Direct product" of a complete plant or 'major component' of a plant that is located outside the United States, when the plant or 'major component' of a plant, whether made in the United States or a foreign country, itself is a "direct product" of U.S.-origin "technology" or "software" subject to the EAR that is specified in any ECCN in product groups D or E in any categories of the CCL

End-User Scope of Russia/Belarus-Military End User FDP Rule

  • Meets condition:
    • There is "knowledge" that the foreign-produced item will be incorporated into or used in the "production" or "development" of any "part," "component," or "equipment" produced, purchased, or ordered by any entity with a footnote 3 designation in the license requirement column of the Entity List in supplement no. 4 to part 744 of the EAR

Advanced Computing FDP Rule

  • Foreign-produced item is subject to the EAR if it meets both product scope and destination scope
  • Product scope applies if foreign-produced item meets conditions of either:
    • "Direct product" of "technology" or "software" subject to the EAR and specified in ECCN 3D001, 3D991, 3E001, 3E002, 3E003, 3E991, 4D001, 4D090, 4D993, 4D994, 4E001, 4E992, 4E993, 5D001, 5D002, 5D991, 5E001, 5E991, or 5E002 of the CCL
    • Produced by any complete plant or 'major component' of a plant that is located outside the United States, when the plant or 'major component' of a plant, whether made in the United States or a foreign country, itself is a "direct product" of U.S.-origin "technology" or "software" subject to the EAR that is specified in ECCN 3D001, 3D991, 3E001, 3E002, 3E003, 3E991, 4D001, 4D090, 4D993, 4D994, 4E001, 4E992, 4E993, 5D001, 5D991, 5E001, 5E991, or 5E002 of the CCL

Destination Scope of Advanced Computing FDP Rule

  • Meets condition:
    • There is "knowledge" that the foreign-produced item is destined to the PRC or will be incorporated into any "part," "component," "computer," or "equipment" not designated EAR99 that is destined to the PRC

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Learn about the regulations under the Export Administration Regulations (EAR) that govern foreign-produced items located outside the United States. Explore how items become subject to the EAR through being a direct product of specified technology or software, or produced by a plant that is a direct product of specified technology or software.

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