You probably already know what exporters do since you’re reading this article. Many people believe that an exporter is someone or a company that sells to foreign governments, companies, and individuals.
Did you know that exporters do not only transfer physical goods?
If you transfer knowledge, you can be an exporter even if it is not your intention. This is known as a deemed import.
Let’s take a look at what a deemed exported is. This is how deemed exports are defined by the Export Administration Regulations (EAR).
A release of technology or source code in the United States to a foreign individual is considered an export to that person’s country of citizenship or permanent residence.
We need to define certain terms in the EAR to comprehend the implications of this definition fully.
Part 734.15 states that technology and software are “released.”
(1) A visual or other inspection of items by a foreign individual that reveals “technology”, or source code subject the EAR to a Foreign Person; or
(2) Written or oral exchanges with foreign persons of “technology” in the United States and abroad.
Part 772 describes technology as “Information necessary to the ‘development’, ‘production’, ‘use’, ‘use, ‘operation, maintenance, repair or overhaul (or any other terms specified on the CCL in ECCNs that control ‘technology”) of an item.”
A deemed export is when technology that has been controlled is made available for inspection by foreign nationals. This includes technical specifications, plans and blueprints via electronic media, even simple visual inspection, when technology can be exchanged orally, and when technology can be used under the supervision of people who know the technology.
Exporters don’t need to cross any border. You don’t even need to get out of your home to be an exporter. These are just a few examples of the many benefits:
Colleges and Universities
The major group of exporters is institutions of higher education. A transfer could be as simple as giving someone a tour of a controlled technology laboratory or teaching them how to use it.
Commerce and business
Notable organizations that use deemed export licences include biochemical firms, medical and computer sectors, and technology research and development institutes.
You have probably visited Twitter, Facebook, or read at least one blog in the past 10 minutes. This is a good indicator of how powerful the internet’s information flow is. It’s why it’s called the internet.
The internet is not an information conduit that only routes information from one place to another. You should be cautious about sharing (transferring, disclosing) restricted information.
Many people find that working internationally is inevitable because of the global market. It is illegal to transfer a computer containing controlled information. It is important to know what files you have, what you are presenting and what you can discuss with others when you travel for business.
Regulations and rules for export
It is important to realize that even the smallest exposure of technology or information to a foreign national by a company can be considered an export and could cause it to violate U.S. Export Regulations. This could result in employees being sent to prison and criminal penalties.
Deemed exports require special attention because they are complex. There is no single solution that will work for all exports. If you have any questions, however, the Deemed exports section of the Bureau of Industry and Security has a lot of information.