The De Minimis Rules Assistant automatically determines whether a non-U.S. made item, which is located outside the U.S., is subject to the Export Administration Regulation (EAR).
The tool evaluates provided information against a checklist to identify and verify the key eligibility and compliance requirements of the direct product rules and the de minimis rules and to determine which licenses, if any, are required with regard to export from abroad or re-export.
It streamlines the applicability assessment including the sequential analysis of the U.S.-origin content threshold (currently 25%) while maintaining a full audit trail to satisfy the strict transparency requirements of the U.S. Department of Commerce, Bureau of Industry and Security (BIS).
The tool replaces the need to manually assess individual export items against the EAR eligibility and compliance requirements, which is an otherwise onerous and time-consuming task. The open architecture of the tool allows it to be adjusted to cover every instance of a company’s bespoke export policies. Its modular logic can easily be edited to accommodate tightening export control laws and changes regarding the U.S.-origin content thresholds inherent in the de minimis rules.
A key focus for U.S. export control in recent years has been the assessment and prosecution of non-U.S. made export items which are located outside the U.S. that incorporate U.S.-origin commodities and/or technology. As stated by the de minimis rules and direct product rules outlined §734.4 and Supplement No.2 to part 734 of the EAR, parties may not be subject to the EAR’s strict export control laws if the U.S.-origin content makes up less than 25% of the total value of the non-U.S. item. It has therefore become increasingly important for companies that trade these items to assess their components against the de minimis rules and direct product rules to ensure compliance with the EAR and to apply for the respective export licenses where needed.
With BRYTER, companies can build an automated De Minimis Rules Assistant which determines whether an item is subject to the laws outlined in the EAR or whether it satisfies the criteria outlined in the de minimis rules or direct product rules. The tool guides the user through a series of questions regarding the origin, make up and characteristics of the item. The inputs trigger underlying logic that determines whether the item falls within the scope of the EAR and which license requirements its export or re-export would need to fulfill. As a final output, the user receives a full report of the assessment and receives guidance relating to any necessary next steps. Due to the open architecture of the BRYTER platform, our compliance process automation tool’s modular logic can easily be amended to ensure its compliance with changing legal requirements and de minimis thresholds.
Automated & Standardized
The De Minimis Rules Assistant allows companies to assess export items against the EAR’s inherent de minimis rules and direct product rules through a standardized process. This ensures a consistent approach and documentation.
The De Minimis Rules Assistant is available 24/7 and streamlines an otherwise time-consuming assessment to ensure faster execution.
Centralized audit trail
As part of the tool, the results of the de minimis rules and direct product rules assessment are tracked and documented in a centralized audit trail. This allows users to document and produce proof of compliant behavior as and when needed for BIS.
The De Minimis Rules Assistant can easily be integrated into an existing IT infrastructure so that results can for example be written back into existing databases.
As every application built on BRYTER is customizable. The De Minimis Rules Assistant may accommodate a company’s unique policies.
How it works
Go through Q&A
Through a customizable and user-friendly questionnaire, all relevant information such as the origin, characteristics and make-up of the item are gathered from the user. The inputs then determine which logic is applied to provide an assessment.
A full assessment report including the applicability of the EAR along with any license requirements is generated based on the provided information. A full audit trail is maintained to document and provide proof of any assessments and their results.
The open architecture of the BRYTER platform allows the application to be updated continuously in the background, ensuring that the results are always in-line with the latest regulations of the EAR.