**As of January 12, 2022, the effective date for the interim final rule published October 21, 2021, at 86 FR 58205, is delayed to March 7, 2022.
Tightened Controls on Cyber Security Items
On October 20th, BIS released an interim rule which enhanced controls on certain Cyber Security items that can be used for malicious cyber activities.
While allowing certain exclusions, restricted end users targeted by this interim final rule would include a ‘government end user,’ as defined in § 740.22 of the EAR, of countries of concern for national security reasons or those subject to an arms embargo. Furthermore, the License Exception ACE would impose an end-use restriction in circumstances where the exporter, re-exporter, or transferor knows or has reason to know at the time of export, reexport, or transfer (in-country), including a deemed export or reexport, that the ‘cybersecurity item’ will be used to affect the confidentiality, integrity or availability of information or information systems, without authorization by the owner, operator or administrator of the information system (including the information and processes within such systems).
License Exception ACE would allow the export, reexport and transfer (in-country) of ‘cybersecurity items’ to most destinations, while retaining a license requirement for exports to countries of national security or weapons of mass destruction concern. In addition, countries subject to a U.S. arms embargo will require a license.
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