Welcome to the LCS Blog. We're committed to provide our readers up-to-date Global Trade News.


Friday, June 4, 2010

Is Encryption Reform Coming?

The Commerce Department plans to introduce a rule within weeks will greatly reduce reporting and review requirements both for many forms of encryption software and hardware, although a significant category of mostly networking-related items will not benefit from the change, according to a Bureau of Industry and Security (BIS) official.

The rule will ease review and reporting requirements, ultimately resulting in as much as 85 percent of encryption items being free of both licenses and 30-day reviews, according to private-sector experts.

Encryption export control lawyers say the change constitutes a win for exporters because it eases the procedures for exporting and covers a significant number of items.

Additionally, because the rule creates yet another exemption category to the complex encryption regulations, some sources said that more still needs to be done to simplify the regulations which are considered the most opaque in the world of export controls.

Under the rule change, most of the items that are “ENC unrestricted” will also no longer be subject to the notification and review requirements.

Instead, companies exporting these “ENC unrestricted” products will have to register once with Commerce and then provide a yearly report to Commerce simply on which products it has self-classified as ENC unrestricted.

Other items known as “ENC restricted,” such as high speed routers, would still face the old requirements however. This includes network infrastructure, source code, and telecommunication switches which will still be subject to the old rules.

Stay tuned for updates!

0 comments:

Post a Comment