How to File an Encryption License Application

In most cases, your encryption item will be eligible for export under a license exception, so you should carefully review Sections 740 and 742.15 of the Export Administration Regulations (EAR) before you submit a license application. If your product and/or end-user do not qualify for a license exception, you must request an individual export license or Encryption Licensing Arrangement (ELA) for your transaction.

Section 742.15(a)(2) of the EAR describes ELAs. Unlike individual licenses, ELAs authorize unlimited quantities of encryption commodities and software to national or federal government bureaucratic agencies, and to state, provincial or local governments, in all destinations, except countries listed in Country Group E:1 of Supplement No. 1 to part 740. ELAs are typically valid for four years and may require post-export reporting or pre-shipment notification. Applicants seeking authorization for Encryption Licensing Arrangements must specify the sales territory and class of end-user on their license applications.

This guidance is designed to help you in applying for an individual license or an ELA to export certain encryption items not eligible for a license exception and should only be used in conjunction with the relevant portions of the EAR.

Step 1: Read the relevant portions of the EAR.
You should first review Sections 742.15 and 748 of the EAR. Section 742.15 describes the licensing policy for encryption items. Section 748 provides general guidance on applying for an export license.

Step 2: Fill in the on-line SNAP-R License Application Work Item form.
When applying for an individual license, follow the instructions below.

Block

Instructions

5

Mark the export or reexport box. This is extremely important. DO NOT mark classification request. If you do, the application will be returned to you.

18

This block MAY NOT be left blank. Follow the instructions that came with the application form.

19

Follow the instructions that came with the application form for this block.

21

Describe the intended end use of the encryption item(s).

22(a)

The ECCN for encryption hardware is 5A002. The ECCN for encryption software is 5D002. The ECCN for encryption technology is 5E002.

22(j)

Provide a brief technical description including the basic purpose of the item and the type of encryption used in the product or technology (e.g., 128-bit RC4 for secure e-mail, 2048 RSA for key exchange). Please DO NOT type "See letter of explanation" or "See brochure". The information identified in this block is entered directly into the BIS computer system, and will be printed on the license issued by BIS. A brief technical description is essential.

24

Identify, by number, any previous licenses or classifications received for the same or similar encryption item.

When applying for an ELA, follow the instructions below.

Block

Instructions

5

Mark export or reexport box. This is extremely important. DO NOT mark classification request. If you do, the application will be returned to you.

9

Indicate the phrase "Encryption Licensing Arrangement" in this block.

17

Indicate "various" to denote several intermediate consignees (if applicable).

18

Indicate "various" to denote several ultimate consignees (if applicable).

19

Indicate "various" to denote several end users (if applicable). Leave blank if you have indicated "various" in block 18, and the end users are the same as the ultimate consignees. When applying to export or reexport to government end users (as defined in Part 772) outside of the countries listed in Supplement 3 to Part 740, please provide a list of countries, specific end uses, and end users in the application.

21

Describe the intended end use of the encryption item(s).

22(a)

The ECCN for encryption hardware is 5A002. The ECCN for encryption software is 5D002. The ECCN for encryption technology is 5E002.

22(e)

Indicate "1" in this box, even though you are applying for unlimited quantities.

22(f)

Indicate "unlimited" in this box.

22(j)

Provide a brief technical description including the basic purpose of the item and the type of encryption used in the software (e.g., 128-bit RC4 for secure e-mail, 2048 RSA for key exchange). Please DO NOT type 'see letter of explanation' or 'see brochure'. The information identified in this block is entered directly into the BIS computer system, and will be printed on the license issued by BIS. A brief technical description is essential.

24

Indicate the sales territory in this block (listing specific countries, not regions) and the type of end users to whom the item(s) will be exported. You may indicate any additional pertinent information in this block, such as "the items will be returned to the United States or Canada for resale".

All other blocks or block portions appropriate for license applications should be completed in accordance with Part 748 of the EAR.

Step 3: Attach supporting documents.
Supporting documents, such as technical specifications, should accompany the form. The supporting documents should include information about the encryption used, including the name and key length of the algorithm(s) in the product. In addition, you should attach relevant information about the end-user(s). You should attach a brief letter of explanation which summarizes your proposed transaction to expedite the processing of your application.

   
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