Approximately thirty percent of the deemed export license applications processed by the Bureau of Industry and Security (BIS) are for renewals or for upgrades in the level of technology required for existing deemed export licenses. The frequency of license renewals has significantly increased primarily because of the greater scrutiny and time required for individuals to obtain permanent residency status or citizenship, which often exceeds the standard two-year validity period of an export license. These delays, combined with the rapid pace of technological advances, also have required exporters to seek upgrades in the technology licensed to enable them to continue to employ the foreign nationals for current products. In order to expedite the licensing process for deemed export license renewals and upgrades, the Bureau has implemented the following process improvements:
A deemed export, as set forth in section 734.2 (b) of the EAR, is a “release of technology or software of items subject to the EAR to a foreign national in the United States.” Release of technology or software subject to the EAR in a foreign country is not a deemed export. BIS receives many export license applications for technology transfers to foreign countries that are incorrectly submitted as deemed export license requests, creating an unnecessary administrative burden on exporters and government agencies reviewing these applications, particularly when they are submitted as individual license applications for each employee of a foreign entity. A request for release of controlled technology in a foreign country should be submitted as a license application for export of technology to the foreign country, listing the foreign entity as the ultimate consignee. However, if a foreign entity wishes to disclose technology subject to the EAR to a foreign national of a third country (e.g., technology is subject to the EAR is to be released by a UK entity to a Chinese national employed at a facility in the UK), the deemed reexport licensing requirements set forth in section 734.2 (b)(5) of the EAR would apply.
Any questions on the deemed export licensing process may be submitted to Brian Baker, Director, Deemed Exports and Electronics Division. Phone: (202) 482-5534; Fax: (202) 482-1373; or, by e-mail. Written requests for extension of the validity period of an existing license, whether submitted in concert with a license renewal application or to match a visa expiration date, may be submitted by e-mail to Director, Deemed Exports and Electronics Division or to the Bureau of Industry and Security address specified in the Export Administration Regulations (EAR) Part 748.2 (c), ATTN: Deemed Export License Extension.
This page updated 12/11/03