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:

Item Description

740.17 Subsection

End-User Authorization

Submission Requirements

'Network Infrastructure' items

(b)(2)(i)(A)

All Supp. 3 end-users,

"Less-sensitive government end-users", and non-gov end-users outside the Supp. 3 countries except E:1 and E:2

 

 

  1. Classification request (submit Supp. 6, Part 742 in SNAPR)

  2. Semi-Annual Sales Report by email (see 740.17(e))

 

Encryption source code, customized items, quantum crypto, network penetration tools, public safety radios, ultra- wideband and spread- spectrum items

(b)(2)(i)(B)-(H)

All Supp. 3 end-users and non-gov end-users outside the Supp. 3 countries except E:1 and E:2

Cryptanalytic commodities and software

(b)(2)(ii)

All non-gov end-users except E:1 and E:2

"Open Cryptographic Interface (OCI) items (including OCI technology)

(b)(2)(iii)

All Supp. 3 end-users

Cryptanalytic technology

Note to paragraph (b)(2 introductory text)

All non-gov end-users in the Supp. 3 countries

Technology for "non- standard cryptography"

(b)(2)(iv)(A)

All Supp. 3 end-users

'Other' technology

(b)(2)(iv)(B)

All Supp. 3 end-users and non-gov end-users outside of D:1, E:1, and E:2

   
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