License Exception ENC

740.17(b)(2)

Items described in 740.17(b)(2) require a classification request to be eligible for license exception ENC, as well as semi-annual sales reporting. See here for the semi-annual sales reporting requirements.
Items described in 740.17(b)(2) include:
     –    'Network infrastructure' items as described in 740.17(b)(2)(i)(A).
     –    Encryption source code that is not publicly available.
     –    Commodities, software, and components that have been designed, modified, adapted or customized for "government end-user(s)".
     –    Certain customized items, including:
         •Items that are designed, modified, adapted, or customized for "government end-users"; or
         •Items where the encryption functionality is designed or modified for a particular customer or can be easily changed by the user.
    –    Commodities and software for quantum cryptography.
    –    Commodities and software that provide penetration capabilities that are capable of attacking, denying, disrupting or otherwise impairing the use of cyber infrastructure or networks.
    -    Public safety/first responder radio (P25 or TETRA).
    –    Items described in 5A002.d and e., and related software.
    –    Cryptanalytic items under 5A004.
    –    "Open Cryptographic Interface" items.
    –    Encryption technology classified under ECCN 5E002.

After an encryption classification has been submitted, all items under 740.17(b)(2), except cryptanalytic items, may be immediately exported to countries listed in Supplement No. 3 to Part 740.  Cryptanalytic items may be immediately exported only to non-"government end-users" in the Supplement 3 countries.

There is a 30-day wait while the encryption classification is pending before exports of (b)(2) items may be made outside of the countries listed in Supplement No. 3 to Part 740.

The authorization for items under 740.17(b)(2) at the end of the 30-day wait vary depending on the product. The table below summarizes the different authorizations available: