Federal Register - March 29, 2021
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Source: Federal Register
Federal Register / Vol. 86, No. 58 / Monday, March 29, 2021 / Rules and Regulations summary, this rule makes the following changes: 1 Eliminates the email notification requirement for publicly available encryption source code and beta test encryption software, except for publicly available encryption source code and beta test encryption software implementing non-standard cryptography; 2 eliminates the selfclassification reporting requirement for certain mass market encryption products under 740.17b1; and 3
allows self-classification reporting for ECCN 5A992.c or 5D992.c components of mass market products and their executable software. This rule moves mass market components, executable software, toolsets, and toolkits out of 740.17b3i and into b1. Of those four items, only mass market components and executable software are subject to selfclassification reporting. Mass market toolsets and toolkits are not subject to self-classification reporting.
This rule does not change any of the License Exception ENC requirements for any non-mass market encryption item, or for any encryption item mass market or not that implements nonstandard cryptography.
734.4 De Minimis This rule revises the title of paragraph b and the introductory paragraph b1
to accommodate the addition of digital forensics items digital investigative tools. This rule also revises paragraph b1i by replacing notification requirement of with criteria specified in, because of the change that is simultaneously being made to the notification requirement provisions in 742.15b of the EAR.
734.17 Export of Encryption Source Code and Object Code Software This rule revises paragraph b2 by replacing notification requirements for with additional requirements in the second sentence and notification requirements in the last sentence with additional requirements, because of this rules removal of the notification requirement set forth in 742.15b of the EAR for the majority of publicly available software. The reference to 742.15b remains in light of the other requirements that this provision contains, including notification requirements that remain in effect for a small percentage of certain publicly available software.
740.9 Temporary Imports, Exports, Reexports, and Transfers In-Country TMP
This rule revises paragraph c8, regarding the notification requirement
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associated with beta test encryption software eligible under License Exception TMP, by narrowing the scope of the requirement to apply only to beta test encryption software implementing non-standard cryptography, as that term is defined in part 772 of the EAR.
740.13 Technology and Software Unrestricted TSU
This rule revises paragraph d2, regarding mass market software exclusions, by correcting citation references. In a rule published on September 20, 2016 81 FR 64657, EAR
requirements for mass market encryption software were updated and moved from 742.15b to 740.17b.
However, BIS inadvertently did not update the citations in paragraph d2
at that time and is consequently correcting that oversight in this rule.
740.17 Encryption Commodities, Software and Technology ENC
This rule revises the title of introductory paragraph b, from Classification request or selfclassification report to Classification request or self-classification because self-classification reports are required for some, but not all, items that exporters can self-classify. Introductory paragraph b is also revised by adding the word certain to the first sentence to indicate that as a consequence of changes made in this rule, not all products described in paragraph b1
that are self-classified require a selfclassification report. Paragraph b3 is revised by removing a reference to b3i in the last sentence, because b3i no longer applies to any mass market component, toolset or toolkit as a consequence of the revisions made in this rule. This rule adds the term Nonmass market to the title of paragraph b3i. It also revises the sentence in this paragraph to read in this manner:
Specified components classified under ECCN 5A002.a and equivalent or related software classified under ECCN 5D002
that do not meet the criteria set forth in Note 3 to Category 5Part 2 of the CCL
the mass market note and are not described by paragraph b2 or b3ii of this section, as follows:.
These changes eliminate mandatory submission of a classification request to BIS for the review of ECCN 5A992.c components and ECCN 5D992.c executable software of mass market products, except for non-standard cryptography. With the elimination of this classification request requirement, the eligible mass market components and executable software now default to b1 status and consequently may be self-classified and
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annually reported to BIS and the ENC
Encryption Request Coordinator, Ft.
Meade, MD via email to crypt-supp8@
bis.doc.gov and enc@nsa.gov, respectively. In addition, a reference to paragraph b3ii is added to the end of this sentence in paragraph b3i in order to avoid confusion related to non-standard cryptography, as the paragraph b3ii requirement to submit a classification request for nonstandard cryptography remains. In summary, BIS is making the following changes to the License Exception ENC
requirements for items formerly described in 740.17b3i prior to this rule:
a Mass market chips, chipsets, electronic assemblies and field programmable logic devices, and their qualifying executable software, that are not described in paragraph b2 of License Exception ENC are now authorized under 740.17b1 instead of 740.17b3iA. These items can now be self-classified and require a selfclassification report. BIS anticipates that most cryptographic libraries and modules will remain in 740.17b3iB, because paragraph b of Category 5Part 2 Note 3
Cryptography Note excludes items whose primary function is information security.
b Mass market development kits toolsets and toolkits that are standalone products e.g., are not components or executable software of another mass market product are also now authorized under 740.17b1. These items can now be self-classified under ECCN 5A992c or 5D992.c, and self-classification reporting is not required.
There is no change in the status of or requirements relating to items described in 740.17b3ii, iii, or iv.
Revisions to 740.17e Reporting Requirements Paragraph e3, self-classification reporting, is revised by adding after the reference to commodities, software, and components in the second sentence and components exported or reexported meeting the criteria specified in paragraph b1 of this section. It also adds a sentence immediately thereafter that explains that the reporting requirement applies to mass market encryption components and executable software that meet the criteria of the Cryptography NoteNote 3 to Category 5Part 2 of the CCL
mass market note and are classified under ECCN 5A992.c or 5D992.c following self-classification, provided these items are not further described by paragraph b2 or b3 of Section
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