De Minimis Guidelines


De minimis Rules Guidelines - as modified on 9/18/15

(§ 734.4 and Supplement No. 2 to part 734 of the EAR)


  • •    IF ...
    •   Foreign-made commodity incorporates controlled U.S.-origin commodities
    •   Foreign-made commodity is 'bundled' with controlled U.S.-origin software,
    •   Foreign-made software is commingled with controlled U.S.-origin software, or
    •   Foreign-made technology is commingled with controlled U.S.-origin technology,

    •   THEN... the Foreign-made item is subject to the EAR if the U.S.-origin controlled content exceeds:
    •   “600 s eries” & 9 x5 1 5 .a - .x items: 0% to Country Group D:5, 25% to all other destinations.
    • “600 s e ries” & 9x515 .y items: 0 % to China or Country Groups E:1 or E:2, unlimited to all other destinations.
    •   Non- “600 series” &  non-9x515 items: 10 %  to Country Group E:1, 25 %  to all other  destinations.
    Non- “600 series” & non-9x515 AT only: 10 % to Country Group E:1, unlimited to all other destinations.
    •  E A R 9 9 : 10 % to N. Korea and Syria (except food and medicines), unlimited to all other destinations.

    •  “Controlled content” = US-origin items that require a license or LE to the ultimate destination of the foreign product.
    •   EAR99 items are considered “controlled content” for certain sanctioned countries.
    •   Fair Market Value of the “controlled content” is needed to calculate de minimis  percentage

    •  Content that you don’t have to count:
    License Exception GBS or items that do not require a license to the ultimate destination of the foreign product (NLR designated items).

     •   Content that is not eligible for de minimis treatment
    • U.S.-origin “600 series” & 9x515 content when the foreign-made items are destined to Country Group  D:5 of Supp. No. 1 to Part 740.
    •   Certain 9E003 technology
    •   Certain U.S. origin components of high performance computers
    •  Encryption 5E002, and encryption commodities and software that don't meet the eligibility criteria in § 734.4(b)
    •   QRS 11 if in commercial standby instrument system or commercial aircraft w/such system
    •  Foreign made military commodities that incorporate cameras classified under ECCN 6A003.b.4.b

  • •   U.S. items are 'incorporated' when all of the following conditions are met:
    •   They are essential to the functioning of the foreign  equipment,
    •   They are customarily included in the sale of foreign-made items, and
    •   They are reexported with the foreign produced  item.

    •    Bundling
    •  Software that is configured for a specific commodity, but is not necessarily physically integrated into the commodity.
    • Eligible software is software that is listed on the Commerce Control List (CCL) and is controlled for anti-terrorism (AT) reasons or software that is designated EAR99 (subject to the EAR, but not listed on the CCL).

    •    One-time report required for technology
    •   Percentage of U.S. content by  value
    •   Description of your calculations
    •   Values, assumptions, methodologies
    •   Export price of U.S.  content
    •   Description and fair market value of the foreign  technology

    •    If over the de minimis limit ...
    •    Classify the foreign product (self-classification vs BIS  classification)
    •    Determine License Requirements
    •    Determine License Exception  eligibility
    •    Obtain any necessary  authorization