Cloud Computing, End-Use Controls and Technology Transfers: Navigating the Grey Areas of 734.20/734.18 Exemptions and Beyond

May 16, 2024 9:45am

Tansie Taylor Iwafuchi
Senior Manager, Export Controls, Global Trade Compliance
Microsoft

Thoth V. Weeda
Compliance Counsel
Bentley Systems

The definition of “export” in the EAR and ITAR both include the concept of releasing technical data or technology to a foreign person in the U.S. as part of the definition of a “deemed export”, or the transfer of ownership or control of a technology to a foreign person. Interesting changes are proposed – §734.18 and 734.20 – to the EAR, and – §120.52 – to the ITAR, which would deal with transfers of technology and use of encryption. What’s behind these rules, what are the limitations, and how is industry is managing these exceptions?