EAR §734.9 controls foreign-produced items located outside the United States that are subject to the EAR when they are a “direct product” of specified “technology” or “software,” or are produced by a plant or ‘major component’ of a plant that itself is a “direct product” of specified “technology” or “software.”
There are several different “Foreign-Direct Product (FDP) Rules” which includes the National Security FDP Rule, the 9×515 FDP Rule, the 600 Series FDP Rule, the Entity List FDP Rule, and the Russia/Belarus Military End User FDP Rule.
It is important when any non-U.S. company is exporting/transferring items that incorporate, or are the direct product of U.S. technology or software, that the Foreign Direct Product Rule guidelines be reviewed. The rules, in particular the Entity List and Russian/Belarus Military End User Rules, are constantly updated.
Please contact our firm should you have any question on the Foreign Direct Product Rule.
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