Wednesday, July 28, 2010

Clarification of Grace Period for Encryption Registration Requirement

(World Trade Interactive)

The Bureau of Industry and Security has issued a final rule clarifying the intent of the encryption registration requirements that appeared in a June 25 interim final rule June 25 interim final rule liberalizing export controls on encryption products.

According to BIS, the June 25 rule established an encryption registration requirement for authorization under provisions of license exception ENC and for transactions in connection with mass market encryption transactions. The rule specified that an encryption registration must be filed the first time a party submits an encryption classification request or performs an encryption self-classification on or after Aug. 24. The rule also stated that an encryption registration must be submitted in support of an encryption classification or in circumstances where a party is making a mass market encryption item eligible for export and re-export for the first time on or after Aug. 24. Read more here.