[Code of Federal Regulations]
[Title 15, Volume 2]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 15CFR734.4]

[Page 213-214]
 
                  TITLE 15--COMMERCE AND FOREIGN TRADE
 
  CHAPTER VII--BUREAU OF EXPORT ADMINISTRATION, DEPARTMENT OF COMMERCE
 
PART 734--SCOPE OF THE EXPORT ADMINISTRATION REGULATIONS--Table of Contents
 
Sec. 734.4  De minimis U.S. content.

    (a) There is no de minimis level for the export from a foreign 
country of a foreign-made computer exceeding 28,000 MTOPS containing 
U.S.-origin controlled semiconductors (other than memory circuits) 
classified under ECCN 3A001 or high speed interconnect devices (ECCN 
4A003.g) to Computer Tier 3 and 4 countries described in Sec. 742.12 of 
the EAR.
    (b) There is no de minimis level for items controlled for EI reasons 
under ECCNs 5A002, 5D002 and 5E002 absent written authorization from 
BXA. Exporters may, as part of a classification request, ask that 
software controlled under ECCN 5D002 and eligible for export under the 
``retail'' or ``source code'' provisions of license exception ENC, and 
parts and components controlled under ECCN 5A002, be made eligible for 
de minimis treatment. The review of de minimis eligibility will take 
into account national security interests.
    (c) Except as provided in paragraph (a) of this section for certain 
computers, the following reexports are not subject to the EAR when made 
to either an embargoed country listed in part 746 of the EAR or to a 
terrorist-supporting country as described in part 742 of the EAR:
    (1) Reexports of a foreign-made commodity incorporating controlled 
U.S.-origin commodities valued at 10% or less of the total value of the 
foreign-made commodity;
    (2) Reexports of foreign-made software incorporating controlled 
U.S.-origin software valued at 10% or less of the total value of the 
foreign-made software; or
    (3) Reexports of foreign technology commingled with or drawn from 
controlled U.S.-origin technology valued at 10% or less of the total 
value of the foreign technology.
    (d) Except as provided in paragraph (a) of this section for certain 
computers, for all other countries not included in paragraph (b) of this 
section the following reexports are not subject to the EAR:
    (1) Reexports of a foreign-made commodity incorporating controlled 
U.S.-origin commodities valued at 25% or less of the total value of the 
foreign-made commodity;
    (2) Reexports of foreign-made software incorporating controlled 
U.S.-origin software valued at 25% or less of the total value of the 
foreign-made software; or
    (3) Reexports of foreign technology commingled with or drawn from 
controlled U.S.-origin technology valued at 25% or less of the total 
value of the foreign technology.
    (e) For purposes of determining de minimis levels, technology and 
source code used to design or produce foreign-made commodities or 
software are not considered to be incorporated into such

[[Page 214]]

foreign-made commodities or software. Commodities subject only to short 
supply controls are not included in calculating U.S. content.
    (f) You are responsible for making the necessary calculations to 
determine whether the de minimis provisions apply to your situation. See 
Supplement No. 2 to part 734 for guidance regarding calculation of U.S. 
controlled content.
    (g) See Sec. 770.3 of the EAR for principles that apply to 
commingled U.S.-origin technology and software.
    (h) Notwithstanding the provisions of paragraphs (c) and (d) of this 
section, U.S.-origin technology controlled by ECCN 9E003a.1 through 
a.12, and .f, and related controls, and encryption software controlled 
for ``EI'' reasons under ECCN 5D002 or encryption technology controlled 
for ``EI'' reasons under ECCN 5E002 do not lose their U.S.-origin when 
redrawn, used, consulted, or otherwise commingled abroad in any respect 
with other software or technology of any other origin. Therefore, any 
subsequent or similar software or technology prepared or engineered 
abroad for the design, construction, operation, or maintenance of any 
plant or equipment, or part thereof, which is based on or uses any such 
U.S.-origin software or technology is subject to the EAR.

[61 FR 12746, Mar. 25, 1996, as amended at 61 FR 54543, Oct. 21, 1996; 
61 FR 65464, Dec. 13, 1996; 61 FR 68578, Dec. 30, 1996; 62 FR 25456, May 
9, 1997; 63 FR 50520, Sept. 22, 1998; 64 FR 13339, Mar. 18, 1999; 64 FR 
42011, Aug. 3, 1999; 65 FR 2496, Jan. 14, 2000; 65 FR 60854, Oct. 13, 
2000; 65 FR 62604, Oct. 19, 2000]