BIS Clarifies De Minimis Content Requirements

On June 4, 2010, Bureau of Industry and Security (BIS) issued a final rule in Federal Register that clarifies language concerning the de minimis provisions in the Export Administration Regulations (EAR). 

The EAR generally do not apply to items that were made and are located outside the U.S. and that contain only a "de minimis" level of U.S-origin content. The procedures for calculating whether an item exceeds the de minimis threshold note that the calculation is appropriate only for items that are made outside the U.S. and are not currently in the U.S. 

Effective June 4, 2010, the rule removes EAR provision in §734.3(b)(4), which outlines a category of items not subject to the EAR ("foreign made items that have less than the de minimis percentage of controlled U.S. content"), because the provision could be erroneously read as applying the de minimis exclusion to foreign made items that are located in the U.S. 

In addition, the final rule provides technical corrections to the EAR involving certain performance criteria of turning machines and the rule also removes obsolete cross references, removes and reserves two regulatory provisions, corrects a typographical error, and removes an unnecessary reporting requirement.