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What are Deemed Exports? Watch Our Video

clarkespositolaw

Updated: Jun 9, 2022

Transferring regulated technology or computer code to a foreign person in the United States is considered a Deemed Export. Deemed exports are regulated by the Bureau of Industry and Security (BIS) under the Department of Commerce. Deemed exports are typically utilized by universities, high technology research and development institutions, bio-chemical firms, medical organizations and companies in the computer sector.



Regulated Technology


BIS does not regulate technology or software that arises from fundamental research that is meant to be published. This research is often simply defined as scientific research that is shared with the respective community. If a researcher decides to privatize the technology or software related to their findings in any way, sharing this product with a foreign individual will likely prompt BIS regulation. BIS offers a list of 5 transaction activities that are not considered exports, reexports or transfers specifically regarding deemed exports.


Licenses


The process of obtaining a license for a deemed export is slightly different than that of a regular good. Before releasing the technology or software an exporter must file a special form known as the BIS-748P. Additionally, the exporter must include a letter explaining the use of the technology or software and a resumé of the individual who will be receiving the deemed export.


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