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DOC/BIS RIN: 0694-AE25 Publication ID: Fall 2008 
Title: License Exception ENC: Expansion of Scope of Countries and End-Use; Revision of Review Request Requirements; and Clarifications 
Abstract: The Bureau of Industry and Security (BIS) is revising the Export Administration Regulations (EAR) to expand the country scope of License Exception ENC, as well as the end-use scope. In addition, this rule revises License Exception ENC by removing text that is no longer necessary and by making some revisions for clarification of understanding. These revisions are made in response to requests from industry and do not pose a national security risk to the United States. The revisions in this rule expand the end-use from only development to development and manufacturing of foreign products for private sector end-users. In addition, it expands the country scope from a select number of countries to all countries, with the exception of the terrorist supporting countries. The national security of the United States is maintained by making all foreign-produced or developed items that contain controlled U.S.-origin items subject to the EAR, as well as all foreign-produced or developed items produced from controlled U.S.-origin technology or source code. This rule also revises the waiting period after the submission of a review request to BIS for transactions for other types of end-uses to end-users. In addition, this rule expands the country scope for the export or reexport of certain listed encryption commodities and software under License Exception ENC to non-government end-users. The country scope is expanded from a certain number of countries eligible for License Exception ENC to any country, except terrorist supporting countries. This rule will provide industry greater flexibility to manufacture and develop encryption products abroad, as well as, reduce the number of license applications submitted to BIS, while maintaining the national security of the United States. 
Agency: Department of Commerce(DOC)  Priority: Substantive, Nonsignificant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: No  Unfunded Mandates: No 
CFR Citation: 15 CFR 740   
Legal Authority: 22 USC 7201    50 USC 1701 et seq    50 USC app 2401 et seq    EO 13222    EO 13026   
Legal Deadline:  None
Timetable:
Action Date FR Cite
Final Action   11/00/2008    
Regulatory Flexibility Analysis Required: No  Government Levels Affected: None 
Small Entities Affected: No  Federalism: No 
Included in the Regulatory Plan: No 
RIN Data Printed in the FR: No 
Agency Contact:
Sharron Cook
Policy Analyst
Department of Commerce
Bureau of Industry and Security
2096/MS 2705, 14th Street and Pennsylvania Avenue NW,
Washington, DC 20230
Phone:202 482-2440
Email: sharron.cook@bis.doc.gov