Washington - The U.S. Department of Commerce Bureau of Export Administration (BXA) will tomorrow publish a final encryption rule that permits most encryption products to be exported to the 15 nations of the European Union as well as Australia, Japan, New Zealand, Norway, Switzerland, Czech Republic, Poland, and Hungary. The new regulation implements policy updates announced by the Administration on July 17, 2000, and tracks with recent regulations adopted by the European Union, thus assuring continued competitiveness of U.S. industry in international markets.
"The President and the Vice President have provided the leadership to create a balanced, market-driven approach for shipping these products overseas. This important step recognizes the rapid growth in the commercial encryption sector while protecting national security interests," said Commerce Under Secretary for Export Administration William A. Reinsch.
Under the new regulation, U.S. companies can export under license exception most encryption products to any end-user in the 23 countries noted above including the worldwide offices of firms and organizations headquartered in these nations. U.S. companies can ship their products to these nations immediately after they have submitted a commodity classification to BXA, rather than waiting for the review to be completed. The regulation streamlines and reduces post-export reporting requirements for many products containing or preloaded with encryption, including personal computers, laptops, handheld devices, network appliances, and short-range wireless technologies.
Today's action and other steps announced recently, like the proposed Advanced Encryption Standard, (more information on the AES) represent significant progress toward creating a more secure digital economy. The Administration's balanced approach allows U.S. industry to maintain its leadership, protects national security and law enforcement interests, and promotes e-commerce and privacy.
Restrictions on exports to terrorist-supporting states, their nationals and other sanctioned entities are not changed by the new rules.
In April of 2002 the Bureau of Export Administration (BXA)
changed its name to the Bureau of Industry and Security(BIS). For historical
purposes we have not changed the references to BXA in the legacy documents
found in the Archived Press and Public Information.