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Fact Sheet: Guidelines for Preparing Encryption License Applications

This article was edited and reviewed by FindLaw Attorney Writers | Last reviewed March 26, 2008

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The U.S. Department of Commerce
Bureau of Export Administration

Fact Sheet:
Guidelines for Preparing
Encryption License Applications

For all license applications (i.e.technology transfers, hardware and/or software development, manufacturing arrangements, or resale/transfer of encryption items), the following information (if not included on the completed BXA Form 748P) will facilitate an expeditious review by the agencies:

  • Identify the class of end user such as U.S. wholly-owned or controlled entity (50% or greater ownership), bank, financial institution or government agency. If the ultimate consignee is a financial institution, identify if the end user is lawfully obligated to maintain records of the data secured with the exported encryption item and, if so, identify the laws/regulations mandating the recordkeeping.

  • Identify and describe the encryption items to be exported, to include the cryptographic capabilities (i.e., encryption algorithms and key lengths) of each encryption item.

  • Describe in detail the intended end use of each encryption item.

In addition to above:

A. If your application involves only technology transfers, hardware and/or software development, or manufacturing arrangements, the following information will facilitate an expeditious review by the agencies:

  • Identify and describe any products to be developed with the exported encryption items, to include the cryptographic capabilities (i.e., encryption algorithms and key lengths) of each developed product. Identify the envisioned class of end user (i.e., U.S. subsidiaries, banks/financial institutions, or governments) for each developed product and identify, if possible, whether the product will support recovery of plain text.

  • Identify the form in which the export will be executed (i.e., via magnetic media, hard copy technical drawings or documentation).

  • Explain the manufacturing/development process.

  • Explain the disposition of: 1) the encryption items subject to this license application; and 2) the finished products (e.g., "returned to the U.S.", "for resale in a specific country", or "sold as part of an encryption licensing arrangement (ELA)". If sold as part of an ELA, the license may be subject to semi-annual reporting requirements.
B. If your application involves only the resale/transfer of encryption items only, the following information will facilitate an expeditious review by the agencies:
  • Identify, by license number, any previous licenses received for the same or similar encryption item. If similar, identify the differences in the cryptographic functionality and, if applicable, the differences in the intended end use of the encryption item as opposed to a previously approved license.

  • If applicable, describe any technical safeguards that prevent the encryption items from being used for purposes other than the stated end use. If possible, describe how the encryption item will support recovery of plain text.

Please see our fact sheet for additional information on license applications involving the "deemed export" of encryption technology by foreign nationals or call Bernie Kritzer at (202) 482-0894.

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