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November 19, 2006 

BIS Imposes Licensing Requirement on Exports of Surreptitious Listening Devices

The Bureau of Industry and Security (BIS) has published a final rule in the November 20, 2006 Federal Register imposing new export and reexport controls on surreptitious listening devices and related software and technology. Surreptitious listening devices include a number of spy-like gadgets, such as microphones disguised as wristwatches, cufflinks and cigarette packs.

BIS's final rule, which is effective immediately, amends the Export Administration Regulations (EAR) by imposing new "SL" foreign policy controls on devices primarily useful for the "surreptitious interception of wire, oral, or electronic communications" and related software and technology. The rule states that BIS is taking this action "in order to prevent the unlawful interception of oral, wire, or electronic communications by terrorists and others who may put the information gained through intercepted communications to an unlawful use; to promote the protection of privacy of oral, wire, or electronic communications; and to protect against threats of terrorism around the world."

This rule amends the EAR by imposing a license requirement to all destinations on items classified under Export Control Classification Number (ECCN) 5A980. The rule also creates two new ECCNs, 5D980 and 5E980, to cover software and technology associated with listening devices classified as 5A980.

BIS has indicated that it will generally approve applications for the export and reexport of items classified under 5A980, 5D980, or 5E980 to all destinations, except for destinations for which a license is required for anti-terrorism (AT) reasons (currently, Cuba, Iran, North Korea, Sudan and Syria), by "providers of wire or electronic communication service acting in the normal course of business; or officers, agents, or employees of, or persons under contract with, the United States, a State, or a political subdivision thereof in the normal course of activities of any of the governmental entities listed." License applications from other parties will generally be denied.

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