BIS Clarifies Foreign-Direct Product Rules

Posted by Kelsay Calvaruso on 2/18/22 5:00 PM

On February 3, 2022, the U.S. Bureau of Industry and Security (BIS) issued a Final Rule “clarifying, reorganizing, and making minor corrections to the provisions of the foreign-direct product (FDP) rules.” These rules are now consolidated in part 734 of the Export Administration Regulations (EAR).

This Final Rule also clarifies the applicability of the FDP rules and removes “U.S.” from the heading of §736.2(b)(3) of the EAR to specify that the rule is not limited to software and technology of U.S. origin.

This change became effective February 3, 2022.

The BIS Final Rule is accessible here.

Topics: BIS, Export, EAR

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