Crypto Source Code And Foreign Nationals

Many companies routinely apply for, and receive, export licenses to cover foreign nationals working on encryption source code and object code in U.S. facilities. Based on our research, this practice may be unnecessary; we have concluded that export licenses are not required to provide encryption source code and object code to foreign nationals in the United States.

If you are currently applying for licenses to allow foreign employees access to encryption source or object code, it may be possible to end the practice. Circumstances may differ, however, so it is important to make that determination based on your company's position (for example, the analysis is different if the relevant source code is subject to non-encryption Commerce Department export restrictions). In addition, although we were able to obtain some informal conformation of our view from an Administration official familiar with the issue, there are some modest ambiguities in the applicable regulations. Especially