Understanding the Deemed Export License: A Comprehensive Guide

Q: Who needs a deemed export license?

Any organization or individual sharing sensitive technology with foreign nationals may need a deemed export license.

Q: How do I apply for a deemed export license?

You can apply by submitting a license application to the Bureau of Industry and Security (BIS) under the EAR.

Q: What are the consequences of not obtaining a license?

Failure to obtain a deemed export license can lead to fines, loss of export privileges, and potential criminal charges.

Definition & Meaning

A deemed export license is a type of export control license required in the United States when technology or software is shared with foreign nationals within the country. This includes transferring technical data or source code to individuals who are not U.S. citizens or permanent residents. The U.S. Department of Commerce's Bureau of Industry and Security (BIS) oversees these regulations to protect national security interests. The need for a license depends on the nature of the technology and the relationship between the U.S. and the foreign national's country.

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Legal Use & context

Deemed export licenses are primarily used in the context of export control law, which is significant in various sectors, including technology, defense, and research. Organizations that deal with sensitive technologies must ensure compliance with the Export Administration Regulations (EAR). Users can manage some aspects of this process themselves with the right legal templates, such as those offered by US Legal Forms, but complex situations may require professional legal assistance.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

Example 1: A university researcher shares a software program related to advanced robotics with a visiting scholar from a foreign country. This transfer may require a deemed export license if the software is classified as sensitive technology.

Example 2: A tech company provides training on its proprietary software to a foreign employee in the U.S. If the software includes export-controlled technology, the company must obtain a deemed export license. (hypothetical example)

Relevant laws & statutes

The primary regulation governing deemed exports is the Export Administration Regulations (EAR), administered by the Bureau of Industry and Security (BIS). Specific sections of the EAR outline the licensing requirements and procedures for deemed exports.

Common misunderstandings

Many believe that only physical exports require a license; however, sharing technology with foreign nationals in the U.S. also necessitates compliance.
Some assume that all technologies require a deemed export license, but only those classified as sensitive or related to defense articles do.
It is a common misconception that deemed export licenses are only relevant to large corporations; in reality, small businesses and academic institutions may also need them.

What to do if this term applies to you

If you believe you need a deemed export license, start by assessing the technology or software you plan to share. Consult the EAR to determine if your technology is classified as sensitive. Consider using US Legal Forms for templates that can guide you through the application process. If your situation is complex, it's advisable to seek assistance from a legal professional with expertise in export control laws.

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Quick facts

Attribute	Details
Governing Body	Bureau of Industry and Security (BIS)
Regulations	Export Administration Regulations (EAR)
Potential Penalties	Fines, loss of export privileges, and criminal charges
Application Process	Submit a license application to BIS

Key takeaways

Frequently asked questions

What is a deemed export license?

A deemed export license is required when technology or software is shared with foreign nationals in the U.S.