Certain terminology used in international trade can get quite confusing. Over the past 25 years, BCA has been asked to clarify this topic on numerous locations, so we thought that we would write a blog about it.
A Deemed Export is any release of technology or source code, subject to the Export Administration Regulations (EAR), to a foreign national in the United States. Such release is deemed to be an export to the home country or countries of the foreign national.
Note that the release of any item to any party with knowledge a violation is about to occur is prohibited by 15 CFR Subsection 734.2(b)(2)(ii) EAR and 22 CFR Subsection 127.1 International Traffic in Arms Regulations (ITAR).
The transfer of anything to a “FOREIGN PERSON” or a foreign destination by any means, anywhere, anytime, or a transfer to a “U.S. PERSON” with knowledge that the item will be further transferred to a “FOREIGN PERSON” is considered a Deemed Export.
For example, if a design drawing containing controlled technology is received by a Foreign National within the U.S., or the technical data is exported from the U.S. by verbal, fax, email or hand-carried means, a deemed export has taken place and may require an export license.