De minimis Regulation

Updates to the Bureau of Industry and Security (BIS) Entity List prohibits the export, reexport, and retransfer of all U.S.-origin items subject to Export Administration Regulations (EAR) to entities on that list. Under the de minimis rule (15 CFR §734.4), foreign-made products that incorporate more than a set percentage of controlled U.S.-origin content by value may be subject to export controls to selected entities.  Additional license requirements will be imposed on items subject to EAR to selected entities on the list. As well, limitations on most license exceptions will be applied to these items. BIS offers the De minimis and Direct Product Rules Decision Tool “to help determine if a non-U.S.-made item located outside the United States is subject to [EAR].” As well, EAR features guidelines for de minimis rules (15 CFR Appendix Supplement No. 2 to Part 734)