1. BIS Eliminates Reporting Requirements for Certain Encryption Items
Effective March 29, 2021, BIS eliminated or reduced reporting requirements for certain encryption items. For encryption source code and beta test software that is made publicly available, companies will no longer have to notify BIS unless the cryptography used is “non-standard.” Only source code that implements proprietary or unpublished encryption must be reported to the U.S. government before release from control under the Export Administration regulations. Additionally, most “mass market” encryption products will no longer be subject to annual reporting requirements. Certain mass-market items that previously required a formal classification request to BIS before they could be exported now can be exported after self-classification but remain subject to annual reporting requirements. This action may significantly reduce the reporting obligation for software companies that produce and export these encryption items.