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Thompson Hine LLP, a full-service business law firm with approximately 400 lawyers in 11 offices, was ranked number 1 in the category “Most innovative North American law firms: New working models” by The Financial Times and was 1 of 7 firms shortlisted for The American Lawyer’s inaugural Legal Services Innovation Award. The firm has been recognized by the National Law Journal as a Legal Technology Trailblazer and featured by Bloomberg for its innovative service delivery models, which drive accuracy and predictability. The firm’s commitment to innovation is embodied in Thompson Hine SmartPaTHTM – a smarter way to work – predictable, efficient and aligned with client goals. For more information, please visit ThompsonHine.com and ThompsonHine.com/SmartPaTH.

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<p>Effective on March 25, 2020, the U.S. Department of State&rsquo;s Directorate of Defense Trade Controls (DDTC) <a href="https://www.trumpandtrade.com/wp-content/uploads/sites/783/2020/01/State-Dept-Federal-Register-Notice-ITAR-December-2019.pdf" target="_blank" rel="noopener noreferrer">interim final rule</a> amended the &ldquo;Encryption Rule&rdquo; under the International Traffic in Arms Regulations (ITAR) (22 C.F.R. &sect; 120.54) with definitions more clearly explaining activities that are not considered to be exports, reexports, retransfers or temporary imports of secured and unclassified technical data. A summary of the proposal was provided in a previous <a href="https://www.trumpandtrade.com/2020/01/state-department-adds-itar-definitions-in-interim-final-rule-for-activities-that-are-not-exports-reexports-retransfers-or-temporary-imports/">Trump and Trade post on January 3, 2020</a> and the DDTC issued a <a href="https://www.pmddtc.state.gov/sys_attachment.do?sysparm_referring_url=tear_off&amp;view=true&amp;sys_id=dd2ecd1adbcbc8105564ff1e0f9619f2" target="_blank" rel="noopener noreferrer">summary of the changes</a> on February 3, 2020.</p>
<p>On March 27, 2020, the DDTC issued <a href="https://www.pmddtc.state.gov/ddtc_public?id=ddtc_public_portal_faq_detail&amp;sys_id=8b09babddbbf80d07ede365e7c96192f" target="_blank" rel="noopener noreferrer">a new entry in its frequently asked questions (FAQ)</a> on the subject of providing access information to a foreign person under the Encryption Rule. Specifically, the FAQ address how users should reconcile technical data encrypted in accordance with section 120.54(a)(5) and not deemed an export, reexport or retransfer, with section 120.50(b) prohibiting regulated persons from providing access information to unauthorized foreign persons. The FAQ clarifies there would be a violation under section 120.54(b) if a &ldquo;regulated person&rdquo; provides access information to a foreign person who is able to &ldquo;access, view, or possess&rdquo; the encrypted technical data in an &ldquo;unencrypted form&rdquo; and is &ldquo;not authorized to have the technical data.&rdquo;</p>

core/freeform

SmarTrade

DDTC Issues New FAQ on Encryption Rule’s Provision of Access Information and Section 120.50(b)