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c. License Exception ENC: 740.17(b)(2)

Items described in 740.17(b)(2) require a classification request to be eligible for license exception ENC, as well as semi-annual sales reporting. See here for the semi-annual sales reporting requirements.

Items described in 740.17(b)(2) include: 

  • 'Network infrastructure' items as described in 740.17(b)(2)(i)(A).
  • Encryption source code that is not publicly available.
  • Commodities, software, and components that have been designed, modified, adapted or customized for "government end-user(s)".
  • Certain customized items, including:
  • Items that are designed, modified, adapted, or customized for "government end-users"; or
  • Items where the encryption functionality is designed or modified for a particular customer or can be easily changed by the user.
  • Commodities and software for quantum cryptography.
  • Commodities and software that provide penetration capabilities that are capable of attacking, denying, disrupting or otherwise impairing the use of cyber infrastructure or networks.
  • Public safety/first responder radio (P25 or TETRA).
  • Items described in 5A002.d and e., and related software.
  • Cryptanalytic items under 5A004.
  • "Open Cryptographic Interface" items.
  • Encryption technology classified under ECCN 5E002. 

After an encryption classification has been submitted, all items under 740.17(b)(2), except cryptanalytic items, may be immediately exported to countries listed in Supplement No. 3 to Part 740.  Cryptanalytic items may be immediately exported only to non-"government end-users" in the Supplement 3 countries. 

There is a 30-day wait while the encryption classification is pending before exports of (b)(2) items may be made outside of the countries listed in Supplement No. 3 to Part 740. 

The authorization for items under 740.17(b)(2) at the end of the 30-day wait vary depending on the product. The table below summarizes the different authorizations available: 

 

Item description 

740.17 subsection 

End-user authorization 

(b)(2)(i)(A) 

All Supp. 3 end-users, 

"Less-sensitive government end-users", and non-gov end-users outside the Supp. 3 countries except E:1 and E:2 

  

Encryption source code, customized items, quantum crypto, network penetration tools, public safety radios, ultra- wideband and spread- spectrum items 

(b)(2)(i)(B)-(H) 

All Supp. 3 end-users and non-gov end-users outside the Supp. 3 countries except E:1 and E:2 

Cryptanalytic commodities and software 

(b)(2)(ii) 

All non-gov end-users except E:1 and E:2 

"Open Cryptographic Interface (OCI) items (including OCI technology) 

(b)(2)(iii) 

All Supp. 3 end-users 

Cryptanalytic technology 

Note to paragraph (b)(2 introductory text) 

All non-gov end-users in the Supp. 3 countries 

Technology for "non- standard cryptography" 

(b)(2)(iv)(A) 

All Supp. 3 end-users 

'Other' technology 

(b)(2)(iv)(B) 

All Supp. 3 end-users and non-gov end-users outside of D:1, E:1, and E:2 

 

Submission requirements

  1. Classification request (submit Supp. 6, Part 742 in SNAPR)
  2. Semi-Annual Sales Report by email (see 740.17(e))