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Export Q&A

Q: What is Digi’s Export Registration Number (“ERN”) issued by U.S. Bureau of Industry and Security (“BIS”)?
A: Digi’s ERN is R100311
Q: What is a CCATS?
A: CCATS – Commodity Classification Automated Tracking System. The CCATS is the number assigned by the BIS to the documentation of a product’s formal review and classification against the CCL (Commerce Control List).
Q: What is considered controlled technology?
A: Controlled technology is subject to national security, foreign policy and anti-terrorism laws and regulations. Each of us is responsible for safeguarding Digi design, development and production technology (“controlled technology”) to prevent unauthorized access by countries that have not ratified global weapons nonproliferation treaties. Employees may not electronically, verbally or physically transfer controlled technology to individuals in these countries unless they obtain written authorization from the Export Compliance Officer. (Note: Non-Disclosure Agreements do not constitute “written authorization”)

Digi Controlled Technology
The EAR provides that the release of technology or software to a foreign national is an export. A foreign national is anyone who is not a U.S. citizen, U.S. permanent resident alien, or a lawfully admitted refugee. Exports occur in everyday disclosure of information to a foreign national via consultation, training, company visits and conversations through email, fax and telephone.
Q: What is a “deemed export?”
A: A deemed export release in the United States is a release of technology or source code that is subject to the EAR to a foreign national. Such release is “deemed” to be an export to the home country or countries of the foreign national.

Release of technology includes access by the following means:
  • Visual inspection (such as reading technical specifications, plans, blueprints, etc.)
  • Oral exchange of technology, including when technology is made available by practice or application under the guidance of person with knowledge of the technology
  • Posting information on a website or FTP site for downloading

Technology includes:
  • Specific information related to all stages prior to serial production, such as design, design research, design analyses, design concepts, assembly and testing of prototypes, pilot production schemes, design data, process of transforming design data into a product, configuration design, integration design and layouts.
  • Specific information related to all production stages such as product engineering, manufacture, integration, assembly (mounting), inspection, testing and quality assurance.
  • Specific information related to an item’s operation, installation (including onsite installation), maintenance (checking), repair, overhaul and refurbishing.

Deemed export exemptions
Any foreign national is subject to the deemed export rule except:
  • A foreign national that has been granted U.S. citizenship
  • A foreign national that has been granted permanent residence status (i.e., a green card holder)
  • A foreign national that has been granted status as a “protected individual” (political refugees and political asylum holders) under U.S. law

Designated Country Group List

D:1 Country Group: Albania, Armenia, Azerbaijan, Belarus, Burma, Cambodia, China, Georgia, Iraq, Kazakhstan, Kyrgyzstan, Laos, Libya, Macau, Moldova, Mongolia, Russia, Tajikistan, Turkmenistan, Ukraine, Uzbekistan, Vietnam

E:1 Country Group: Cuba, Iran, North Korea, Sudan, Syria

An individual from Cuba requires a license for employment even if restricted access is not required.

Q: What does “Denied Persons” mean?
A: Digi products cannot be sold, exported or re-exported to any person or entity designated as prohibited or restricted by an agency of the U.S. government. Exports to countries, organizations or persons listed on the Specially Designated Nationals List, the Debarred Parties, Entity and other governmental lists are prohibited. Please review the attached link to the prohibited U.S. government lists: http://www.bis.doc.gov/ComplianceAndEnforcement/ListsToCheck.htm
Q: What is an ECCN – Export Control Classification Number?
A: The ECCN categorizes items based on the type of commodity, technology or software and their technical parameters. It is an alphanumeric designation (i.e., 5A992 or 5A002) used in the Commerce Control List (CCL) to identify items for export control purposes.
Q: What are the Embargoed Countries?
A: Cuba, Iran, North Korea, Sudan, Syria. Digi products may not be exported or re-exported, either directly or indirectly, to any country embargoed by the U.S., or is considered by the U.S. as a supporter of international terrorism, without proper authorization from the U.S. government.
Q: What does Encryption Status refer to?
A: Digi’s products containing encryption greater than 64-bits have undergone a one-time review by the United States Government and have been classified by the BIS with an encryption status of either Restricted, Unrestricted or Mass-Market (15 CFR Part 740.17).
Q: What does the Enhanced Proliferation Control Initiative have to do with purchasing Digi products?
A: Digi products may not be used directly or indirectly in the design, development, fabrication or use of nuclear, chemical or biological weapons or missile technology without U.S. government authorization.
Q: What is an Export License?
A: An authorization for exports which are not eligible for a license exception and require Commerce Department written authorization prior to shipment.
Q: What is the Harmonized Commodity Description and Coding System (HS) Number?
A: The HS Number is an internationally standardized system of numbers used to classify products for tariff determination.
Q: What are License Exceptions?
A: An authorization described in Part 740 of the EAR that allows you to export or re-export, under stated conditions, products subject to the EAR that otherwise would require a license (unless otherwise indicated, these License Exceptions are not applicable to exports under the licensing jurisdiction of agencies other than the Commerce Department).
Q: What does it mean if a product is classified as Mass Market?
A: The U.S. government regulations allow mass market encryption products containing strong encryption to be exported under 5A992 or 5D992, NLR after a 30-day review. Mass Market products are eligible for export with NLR (No License Required) to most end-users (including government end-users) in all countries except the embargoed countries that are designated by the U.S. as supporters of international terrorism: Cuba, Iran, North Korea, Sudan and Syria. Mass Market products are eligible for de minimus treatment. (ECCNs: 5A992, 5D992 with encryption note Mass Market) Commodities, Software or Components (chips, some toolkits, some software modules).
Q: What is the difference between “Restricted” and “Unrestricted” products?
A: Restricted - Restricted encryption solutions and products may be delivered to a wide variety of end-users and destinations without having to apply for an individual export license as they are eligible for export under license exception ENC (15 CFR Part 740.17(b)(2)). (ECCNs: 5A002, 5D002, with Encryption Note: Restricted).

Unrestricted - Unrestricted products are eligible for export to most end-users (including government end-users) in all countries except the five embargoed countries: Cuba, Iran, North Korea, Sudan and Syria, as they are eligible for export under license exception ENC (15 CFR Part 740.17(b)(3)). (ECCNs: 5A002, 5D002, with encryption note Unrestricted) Commodities, Software or Components (chips, some toolkits, some software modules).

Additional Resources

For further information on the EAR, visit the BIS website or contact its offices directly at one of the numbers provided below:

*BIS Home Page: http://www.bis.doc.gov
*BIS Office of Exporter Services (Washington, DC): 202-482-4811

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