21 July 2000
Source: http://207.96.11.93/Encryption/July2KProposedRegSum.html


Bureau of Export Administration
Department of Commerce

IMPORTANT NOTE -- Exporters should continue to follow the current regulations until they are revised. See Commercial Encryption Export Controls: http://207.96.11.93/Encryption/Default.htm

ENCRYPTION FACT SHEET

Administration Considers Further Liberalization to Encryption Export Policy

On July 17, 2000, the Administration announced further updates to its encryption policy implemented on January 14, 2000. The major components of these proposed changes are as follows:

Exports to the European Union (EU) plus an additional eight countries: U.S. exporters will be able to export and reexport all encryption items, except cryptanalytic products and their related technology, immediately to EU member states, Australia, Czech Republic, Hungary, Japan, New Zealand, Norway, Poland and Switzerland without a license (i.e., under a license exception). This policy change is consistent with the Administration's promise in the update in January to ensure U.S. exporters would not disadvantaged by the EU's "license-free" zone.

Release of Products Incorporating Short-Range Technologies: Products that incorporate components providing cryptographic functionality limited to short-range radio-link wireless technology will be exported freely, without a technical review or reporting requirements. These are consumer products, for example, audio devices, cameras and videos, computer accessories, hand held devices, mobile phones and consumer appliances (e.g., refrigerators) that communicate with each other and over the Internet.

Exports of Open Cryptographic Interfaces: U.S. products that use an open cryptographic interface (OCI) will be permitted to be exported to the EU+8 under license exception and without review of the foreign product. Further, U.S. exporters may enable, e.g., "digitally sign", foreign products developed for any country under license exception and without review of that product.

Releasing Certain Products from U.S. Content Requirements: The update will allow BXA to make certain encryption commodities and software (e.g., browsers, operating systems and similar products) eligible for de minimis treatment when incorporated into foreign-made products.

Global Exports of Encryption Source Code: Proprietary encryption source code, which is not considered publicly available, may now be exported under a license exception. Exporters must submit to the Bureau of Export Administration a copy of the source code, or for public source code -- its Internet location -- by the time of export. This further liberalizes the Administration's treatment of encryption source code. Additionally, the draft clarifies that object code compiled from source code that is considered publicly available is treated the same as the source code.