Bureau of Industry and Security
U.S. Department of Commerce
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Deemed Export Process Improvements and
Guidance on Renewals and Upgrades

Approximately thirty percent of the deemed export license applications processed by the Bureau of Industry and Security (BIS) are for renewals or for upgrades in the level of technology required for existing deemed export licenses. The frequency of license renewals has significantly increased primarily because of the greater scrutiny and time required for individuals to obtain permanent residency status or citizenship, which often exceeds the standard two-year validity period of an export license. These delays, combined with the rapid pace of technological advances, also have required exporters to seek upgrades in the technology licensed to enable them to continue to employ the foreign nationals for current products. In order to expedite the licensing process for deemed export license renewals and upgrades, the Bureau has implemented the following process improvements:

• Existing deemed export licenses that require renewal will receive an automatic six-month extension if a renewal license application and a written request for extension of the validity period of the existing license are submitted to BIS. (See section 750.7(g)(2) of the EAR for requirements for a request for extension.)
  
  
  • Both the license renewal application and a written request for extension must be received by BIS at least 45 days prior to the expiration of the existing license to receive the automatic six-month extension.
    
    
  • Requests for license extensions that are not submitted with a license renewal application will be processed in accordance with section 750.7(g)(2) of the EAR.
    
    
  • License renewal applications that are not submitted with a request for a license extension will be processed as expeditiously as possible.
    
    
  • Ensure all correspondence related to requests for extensions and/or license renewal applications includes the license number of the existing deemed export license.
    
    
• Future deemed export license validity periods will be tied to a foreign national’s visa expiration date if that expiration date extends beyond the standard two-year license validity period.
  
  
  • The H-1B work visa is typically valid for 36 months. A license applicant should note in its application the expiration date of a visa that is beyond the standard two-year validity period of a license, and request a matching, extended, validity period, in accordance with section 748.6(g) of the EAR.
    
    
  • Occasionally, deemed export licenses are issued while a visa application is still being processed;, or, a visa is renewed during the validity period of an existing license. Once a final determination has been made on an individual’s visa application or visa renewal, the exporter’s will receive favorable consideration on a written request to extend the existing deemed export license validity period to match the visa expiration date. Written requests for such extensions should include a copy of the foreign national’s visa and the license number of the existing deemed export license.
    
    
• For deemed export license applications that are solely for upgrades to technology already authorized in an existing license, the Bureau will expedite processing.
  
  
  • The exporter needs to state specifically that the application is for technology upgrade of an existing license and to specify what new technology levels are required.
    
    
  • The license number of the existing deemed export license must be included on the application and any associated correspondence.

A deemed export, as set forth in section 734.2 (b) of the EAR, is a “release of technology or software of items subject to the EAR to a foreign national in the United States.” Release of technology or software subject to the EAR in a foreign country is not a deemed export. BIS receives many export license applications for technology transfers to foreign countries that are incorrectly submitted as deemed export license requests, creating an unnecessary administrative burden on exporters and government agencies reviewing these applications, particularly when they are submitted as individual license applications for each employee of a foreign entity. A request for release of controlled technology in a foreign country should be submitted as a license application for export of technology to the foreign country, listing the foreign entity as the ultimate consignee. However, if a foreign entity wishes to disclose technology subject to the EAR to a foreign national of a third country (e.g., technology is subject to the EAR is to be released by a UK entity to a Chinese national employed at a facility in the UK), the deemed reexport licensing requirements set forth in section 734.2 (b)(5) of the EAR would apply.

Any questions on the deemed export licensing process may be submitted to Alex Lopes, Director, Deemed Export and Short Supply Division. Phone: (202) 482-4875; Fax: (202) 482-1373; or, by e-mail. Written requests for extension of the validity period of an existing license, whether submitted in concert with a license renewal application or to match a visa expiration date, may be submitted by e-mail to Director, Deemed Export and Short Supply Division or to the Bureau of Industry and Security address specified in the Export Administration Regulations (EAR) Part 748.2 (c), ATTN: Deemed Export License Extension.

 

This page updated 12/11/03

 

                          

 

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