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ARTICLE · 20 FEBRUARY 2009

Year End Review Of Export Control Issues

Baker Donelson
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A number of recent changes and proposed changes in the export control regulatory scheme have occurred recently. We have prepared an extensive summary of these recent developments, as year-end approaches.

United StatesInternational Law
Raymond Sullivan
Raymond Sullivan

1. Dual-Use Export Control Developments

1.1 Proposed License Exception ICT for Intra-company Transfers.

The Bureau of Industry and Security (BIS) issued a proposed amendment to the Export Administration Regulations (EAR) to create a new License Exception ICT for companies to export, re-export, or transport (in-country) dual-use products such as software and technologies to and among their "wholly-owned or controlled-in-fact" non- U.S. entities and foreign national employees. 73 Fed. Reg. 57554 (October 3, 2008). Industry has long sought a broad, unfettered License Exception like ENC for intracompany transfer of encryption source code and technology for use and product development. However, in the view of most exporters, the form of the proposed rule that resulted from interagency review is very cumbersome and a License Exemption in name only.

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