BIS De Minimis

 

“De Minimis” is short for the Latin phrase “de minimis non curat lex”, which translates to, “the law does not concern itself with trifles”.

What this mean as it relates to Bureau of Industry and Security (“BIS”) and the Export Administration Regulations (“EAR”):

U.S. Goods and Technology subject to the EAR are still under the controls of the EAR after it has been exported from the U.S. For example, if a U.S. company exports a completed semi-automatic firearm (ECCN 0A501.a) expressly for a German individual in Germany, but if later on that individual decides to sell that same firearm to another party in Poland, that re-transfer must be given BIS’s authorization prior to the re-transfer taking place or the German may lose their privileges to receive future imports from U.S.

However, for Goods and Technology that are being exported for the purpose of being incorporated into a higher-assembly of a Foreign-made commodity, these controls may no longer be appliable— These are the “De Minimis” provisions of the EAR, and to qualify there several factors that must be brought into consideration:

  • What ECCN the U.S.-origin commodity/technology falls under.

  • What the U.S.-origin commodity/technology will be incorporated into.

  • Where the Foreign-made commodity will be re-transferred to.

  • Who will receive the U.S.-origin commodity/technology.

  • What is the comprise the monetary value of the U.S.-origin commodities or incorporated technology within the foreign-made commodity.

NOTE: When it comes to determining the percentage of the value of U.S.-origin commodities/technology within a foreign-made commodity there are rules to how this must be calculated, and in some cases, there is mandatory reporting.

DTGruelle can help with assessing De Minimis eligibility. We will thoroughly examine the U.S.-origin commodity / technology, the business arrangement at hand, and how the scope of the project fits within BIS’s De Minimis regulations. Further, DTGruelle will assist with fact-finding, compiling documentation for the required record keeping aspect to De Minimis, and conduct 3rd party reporting to BIS, when mandatory.