De Minimis U.S. Content in Foreign Made Items

The Department of Commerce is revising the provisions of the Export Administration Regulations (EAR) that pertain to foreign-made items that incorporate controlled U.S.-origin items, i.e., the EAR's "de minimis" rules. This rule amends the EAR to change the de minimis calculation for foreign produced hardware that is bundled with U.S.- origin software. This rule also clarifies the definition of `incorporate' as it is applied to the de minimis rules and to the medical statement of understanding. This rule also removes the requirement to submit a one-time report to the Bureau of Industry and Security for foreign-made software that incorporates U.S.-origin software. In addition, this rule revises the "Steps for Using the EAR" and General Prohibition Two with regard to the de minimis rules in order to reduce redundancies in the EAR and harmonize the provisions with other revisions made by this rule.