Traditional exports involve cross border movement of items, products or services. However, when it comes to technology and information – an export, or deemed export can occur without anything crossing any borders. A deemed export is the release of restricted or regulated information to a foreign national, even though that person is physically in the United States at the time of receiving the information.
Deemed exports are part of export control regulations.
Deemed exports can occur in various forms:
- When technological know-how is made available to a foreign national through application by someone familiar with it
- When information is made available to a foreign national in the form of technical documents, blueprints or other documentation and plans
- Verbal exchanges with foreign nationals
While every U.S company should be familiar with deemed exports, this concern is of particular concern to universities and multi-national high-tech companies. In such organizations, it is not uncommon for individuals of varying backgrounds and nationalities to work on projects and share research involving regulated information or technology. Impacted individuals could include engineers, researchers, students, interns and technical specialist. Even sharing information to a supply chain executive (i.e product information for HS Classification) of a foreign nationality may trigger deemed export controls. In order to safeguard against possible export control breaches, such organizations have to set clear guidelines and rules concerning the sharing data with un-authorized foreign nationals.
Some examples of deemed exports:
- Allowing a foreign national to view blue prints of a U.S missile guidance systems
- Allowing a foreign national to download U.S encryption software from a laptop
- Sending a foreign national U.S software using email
- Giving a foreign national access to a portal containing restricted information
- Conducting a facility tour for a foreign national
What kinds of technology or information is controlled by deemed exports?
- U.S origin technology or information
- U.S origin combined with foreign origin technology or information
- Technology or information with dual use in both military and non-military purposes
- Technology or information included on the CCL
- U.S proprietary technology or information
Note: If the technology is EAR99 or if it can be found on public domain, it would not be in scope of deemed export controls
What is a deemed re-export?
Deemed re-exports are the release of regulated U.S technology to foreign nationals who are physically outside of the U.S at the time of receiving the information or technology.