Export Q&A

Q: What is considered controlled technology?

A: Technology may be controlled for national security, foreign policy and anti-terrorism reasons. 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 or are otherwise restricted. 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
Information relating to the development, production or use of Digi’s products may qualify as export-controlled technology. The EAR provides that the release of technology or software to a foreign national, whether in the United States or abroad, 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/asylee. Exports may occur in everyday disclosure of information to a foreign national via consultation, training, company visits and conversations through email, fax and telephone.

Designated Country Group List

The following countries (the D:1 Country Group) are subject to expanded National Security restrictions. Digi’s transactions with them may require additional review: Armenia, Azerbaijan, Belarus, Burma, Cambodia, China, Georgia, Iraq, Kazakhstan, Kyrgyzstan, Laos, Libya, Macau, Moldova, Mongolia, North Korea, Russia, Tajikistan, Turkmenistan, Ukraine, Uzbekistan, Venezuela, Vietnam

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

E:2 Country Group: Cuba

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

Q: What does Encryption Status refer to?

A: “Encryption status” refers to the type of authorization required to export or reexport products that have encryption capability. Certain of Digi’s products have been excluded from encryption controls because their primary functions or encryption strength (56-bit or less) are not among those subject to restrictions. Those that qualify as “mass market” items may be exported to all destinations except the E:1 and E:2 country groups, following a BIS review or self-classification by Digi. Certain additional Digi products are authorized for export and reexport under license exception ENC, which may restrict them from shipment to certain countries or end-users.

Q: What does it mean if a product is classified as Mass Market?

A: The U.S. government regulations allow most mass market encryption products to be exported under 5A992 or 5D992, NLR after self-classification. Certain products (chips, chipsets, electronic assemblies and field programmable logic devices, cryptographic libraries, modules, development kits and toolkits) require BIS review; depending upon the destination country, they may be exported immediately after a review request is submitted or 30 days after. Mass Market products are eligible for export with NLR (No License Required) authorization to most end-users (including government end-users) in all countries except those embargoed or designated by the U.S. as supporters of international terrorism: Cuba, Iran, North Korea, Sudan and Syria. Mass Market products are eligible for de minimis treatment. (ECCNs: 5A992, 5D992 with encryption note Mass Market) Commodities, Software or Components (chips, some toolkits, some software modules).