If foreign made items incorporate controlled US items or technology, it is important to consider de minimis rules and guidelines to determine if these items are under the control of the Export Administration Regulations. De minimis is the maximum percentage (based on value) of U.S. controlled items a non-U.S. made commodity may contain before it is determined to be controlled under the EAR.
For non-600/9×515, non-“see-through carve out” items, the de minimis is 10% to Group E:1 countries (near total restrictions). For .a-.x 600/9×515, or “see-through carve out” items, except to arms embargoed D:5 countries, non 600/9×515, non-“see-through carve out” items, except to E:1 countries (countries with near total restrictions), 0A919 commodities, except to arms embargoed D:5 countries, the de minimis is 25%. De minimis does not apply to .y items or items controlled for AT purposes except to E:1 countries, Cuba, the Crimea Region of Ukraine and China (exception for .y only).
There are several destination and origin based exceptions that apply. See https://bis.doc.gov/index.php/documents/pdfs/1382-de-minimis-guidance/file for full rules and regulations. See https://www.bis.doc.gov/index.php/documents/regulation-docs/2255-supplement-no-1-to-part-740-country-groups-1/file for country groups.
“See-through carve out” items which are always considered controlled content for purposes of the de minimis rule:
USML Category VIII (h)(3)-(5), (7), (14), (17) or (19) when incorporated into a 9A610 military aircraft
USML Category XV (e) when incorporated into an item subject to the EAR
USML Category XIX(d) when incorporated into a 9A610 military aircraft
Please contact us if you have any questions.
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