COMMERCIAL ENCRYPTION EXPORT CONTROLS
-- Licensing Guidance --
| T o obtain an authorization to export commercial encryption items, you will have to submit either a classification request or a license application, depending on the type of encryption and the end users. In both cases, you must use a BXA Form 748P, the Multipurpose Application Form. The documents below provide guidance on how to apply for eligibility to export under a license exception or for an export license.

Classification Requests

Applying for License Exception TSU for Mass Market Software

Applying for License Exception ENC

Applying for License Exception KMI

Licenses

Applying for an Encryption Licensing Arrangement (ELA)

Applying for an Individual License

License Exception Charts

The following charts will help you understand which license exceptions may be used to export encryption items. Note that you may only use License Exceptions TSU, KMI or ENC if your product has undergone a one-time review by the U.S. Government.

Chart 1 - Encryption License Exception Chart - identifies all license exceptions that are applicable to encryption items.

Chart 2 - License Exceptions Affected by the Policy Update - summarizes the License Exceptions that were created or modified by the December 31, 1998 encryption policy update regulation.

|  | ------------------------------- What is the difference between a classification request and an export license application? For encryption, a classification request is used to determine eligibility to use License Exceptions TSU, ENC, or KMI. These classification requests, which are also called "one-time reviews," should be submitted using BXA Form 748P, and should include technical information about the product. The classification and license exception eligibility you receive as a result of the review may be used by you, or by anyone else who would like to export the product. The guidance above provides details on submitting this type of classification request. Due to the confidentiality requirements of Section 12(c) of the Export Administration Act, the Bureau of Export Administration does not provide a list of products that have received license exception eligibility. You should contact the manufacturer for information regarding license exception eligibility for specific products.

An export license grants the authority to carry out an export transaction or transactions not authorized under a license exception. As with a classification request, you use BXA Form 748P to apply. Unlike a classification request, you must also include information about consignees, end users, and end uses. Only you (or your authorized reseller in the case of encryption licensing arrangements) may use the license you receive from BXA. The guidance above provides details on applying for an export license.

Which type of application should you submit?

Submit a classification request if you want to receive eligibility to export a 56-bit DES or equivalent product under License Exceptions TSU or ENC. TSU is for 56-bit mass marketed software, and ENC is for 56-bit non mass marketed software, or any type of 56-bit hardware (mass marketed or non mass marketed). You should also submit a classification request if you want to receive eligibility to export greater than 56-bit encryption under License Exception ENC for export to banks, financial institutions, health/medical companies, or online merchants. If your product is "key recovery" according to the criteria in Supplement 4 to Part 742 of the Export Administration Regulations, you should submit a classification request for eligibility under License Exception KMI. Review the guidance information above before you submit your classification request. For details regarding License Exceptions TSU, ENC, and KMI, review Part 740 of the Export Administration Regulations.

Submit a license application if your transaction does not fall within the scope of License Exceptions TSU, ENC, or KMI. You may not fall within the scope of these license exceptions because of the type of product or the proposed end use or end user for the product. For example, if your product is greater than 56-bits and your proposed end user is a telecommunications service provider or a pharmaceutical company, you should request an export license. If you would like to export a 128-bit product to a bank in a country that is not eligible to receive strong encryption under ENC, you will also have to request an export license. There are many other examples of transactions that require a license. Carefully review the requirements of each license exception. If your transaction does not meet every requirement for product, end user, and end use, you should request an export license.