Deemed Exports

Beginning Feb. 20, companies will have to certify that they are in compliance with a rule that requires an employer to obtain an export license for making available controlled technology, data and knowledge to non-U.S. workers, Inside U.S. Trade reports today:

The new rule for so-called "deemed exports" will require a company to certify on its formal visa request that it is in compliance with the license requirements. The U.S. Citizenship and Immigration Services (CIS) requires Form I-129, a petition for a non-immigrant worker, for foreign workers using H-1B, H-1B1 Chile/Singapore, L-1 and O-1A visas.

Licenses are required if these non-U.S. employees work with information and technology controlled under the International Traffic in Arms Regulations (ITAR) or the Export Administration Regulations (EAR).

The new form requires that a company declare that either an export license is not required for the non-U.S. employee or it is required and will be obtained before controlled data or technology is released to a non-U.S. worker.

Last April, the Pentagon published a new rule in the Federal Register that would amend the Defense Federal Acquisition Regulation Supplement (DFARS) "to address requirements for complying with export control laws and regulations when performing DOD contracts. The rule recognizes contractor responsibilities to comply with existing Department of Commerce and Department of State regulations and prescribes a contract clause to address those responsibilities."