BIS Issues Q&A on Proposed Rule to Establish License Exception Intra-Company Transfer
The Bureau of Industry and Security has issued a question and answer document on its proposed rule to establish a new license exception entitled "Intra-Company Transfer" (ICT) to allow an approved parent company and its approved wholly-owned or controlled in fact entities to export, reexport, or transfer (in-country) many items on the Commerce Control List (CCL) among themselves for internal company use without individual export licenses.
(BIS has proposed that eligibility for License Exception ICT be restricted to approved eligible applicants and those Export Control Classification Numbers (ECCNs) that are authorized by BIS. Exports, reexports, and in-country transfers for any purpose other than internal company use would not be authorized.
Comments on the proposed rule were due November 17, 2008. See ITT's Online Archives or 10/06/08 news, 08100630, for complete BP summary of the proposed rule.)
Questions on Proposed License Exception ICT
In its Q&A document, BIS answers the following questions:
What is the duration of an ICT authorization?
Does the country restriction in Supplement No. 4 to 15 CFR Part 740 apply to the parent company's wholly-owned or controlled in fact entities?
If a parent company that is not the ultimate parent company will be the eligible applicant under 15 CFR 740.19(b)(1), must the ultimate parent company be incorporated or have its principal place of business in certain countries?
Does ICT only apply to technology?
What items may be eligible to be exported, reexported, or transferred (in-country) under ICT?
Do individual non-U.S. national employees receiving technology or source code need to be listed in the ICT authorization request?
Are parent companies required to list ECCN subparagraphs in the ICT authorization request?
Can any commodity, software, or technology described in an ECCN that is listed in the ICT authorization request be exported, reexported, or transferred (in-country) under ICT, once the applicant receives authorization?
Are all elements of the ICT control plan mandatory?
Are parent companies required to address all examples that are listed under the mandatory elements for the ICT control plan?
How long will it take the U.S. Government to review an ICT authorization request?
What information must be submitted to BIS in the annual report for foreign national employees, as described in note 2 to 15 CFR 740.19(b)(3)(ii), who receive technology or source code under ICT?
Should foreign national employees, as described in note 2 to 15 CFR 740.19(b)(3)(ii), be included in the annual reporting requirement even if they have not received technology or source code under ICT?
How does ICT differ from the Special Comprehensive License (SCL)?
(See ITT's Online Archives or 10/23/08 news, 08102325, for BP summary of BIS' announcement of an October 27, 2008 meeting on the proposed rule.)
BIS Q&A document (posted 11/17/08) available at http://www.bis.doc.gov/policiesandregulations/ictquestionsandanswers.htm