Foreign Direct Products of U.S. Technology

The Bureau of Industry and Security (BIS) clarifies the scope of the "direct product rule" set forth in the Export Administration Regulations (EAR). Under the EAR's "direct product rule," foreign- made items that are located outside of the United States; subject to national security controls under the EAR; the direct product of U.S.- origin software or technology that requires a written assurance as a supporting document for a license or as a pre-condition for use of License Exception Technology and Software, Restricted (TSR); and are being reexported to a destination in a country of national security concern or a terrorist supporting country, are subject to the EAR and require an export license or license exception. This rule also makes parallel revisions or clarifications to written assurances required under License Exception TSR (Technology and Software Restricted), information required on the license application for national security controlled technology, and the instructional steps in the EAR that provide guidance on how to apply the direct product rule.