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【ECC】Guidance on De Minimis Rules and identification of US-origin Controlled Content
2018-08-06

Guidance on De Minimis Rules and identification of US-origin Controlled Content

 

 

Guidance on De Minimis Rules

Here is the brief Guidance on De Minimis Rules (US-origin content De Minimis & US-origin controlled content De Minimis) and identification of US-origin Controlled Content. For detailed description on De Minimis Rules, please refer to EAR §734.4 DE MINIMIS U.S. CONTENT and SUPPLEMENT NO. 2 TO PART 734 - GUIDELINES FOR DE MINIMIS RULES of the EAR.

 

To simplify the procedure, Suppliers may conduct the 1. US-origin content De Minimis first, Put all the US origin content in the calculation. If the result exceed the 25%, then should conduct the 2. US-origin controlled content De Minimis, identification of US-origin Controlled Content is list below.

 

Please notice that

Note 1  If non-US origin product incorporate 5E002, 600series( ECCN like XY6XX) , 9X515, there is no De Minimis level for them. The product must be item subject to EAR no mater the percentage of the content in the product. For more details please refer to EAR.

 

Note 2  the following rules are applicable ONLY when non-US origin product is made to countries other than Cuba, Iran, N. Korea, Sudan, Syria and Crimea.

 

Note 3  All the information, evidence and documentation relating to the US origin content, De Minimis Rules and calculation Result must be applicable when ZTE require for them.

 

1. US-origin content De Minimis.

To determine the percentage value of U.S-origin content incorporated in, commingled with, or ‘bundled’ with the non-US origin produced item, divide the total value of the U.S.-origin content by the non-US origin item value, then multiply the resulting number times 100. 

 

2. US-origin controlled content De Minimis

To determine the percentage value of U.S-origin controlled content incorporated in, commingled with, or ‘bundled’ with the non-US origin produced item, divide the total value of the U.S.-origin controlled content by the non-US origin item value, then multiply the resulting number times 100. 

 

Identification of US-origin Controlled Content

All item designed, developed, researched, produced, manufactured and etc in the US are US origin.

 

Identification of US-origin Controlled Content

1. Control reasons of ECCN are not under CB1, CB2, CB3, NP1, NS1, NS2, MT1, RS1, RS2 or CC1, CC3. Those items are Not US-origin controlled Content. ( cross reference with Commerce Country Chart and CCL), Otherwise if any of the control reason falls under CB1, CB2, CB3, NP1, NS1, NS2, MT1, RS1, RS2 or CC1, CC3, It is US-origin controlled Content.

 

2.  ZTE has identify these ECCN are Not US-origin controlled Content. 0A998, 0A999, 0D999, 1A995, 1A999, 1B999, 1C990, 1C992, 1C995, 1C996, 1C997, 1C998, 1C999, 1D993, 1D999, 1E994, 1E998, 2A991, 2A992, 2A993, 2A994, 2A999, 2B991, 2B992, 2B993, 2B996, 2B997, 2B998, 2B999, 2D991, 2D992, 2D993, 2D994, 2E991, 2E993, 2E994, 3A991, 3A992, 3A999, 3B991, 3B992, 3C992, 3D991, 3E991, 4A994, 4D993, 4D994, 4E992, 4E993, 5A991, 5B991, 5C991, 5D991, 5E991, 5A992, 5D992, 5E992, 6A991, 6A992, 6A993, 6A994, 6A995, 6A996, 6A997, 6A999, 6B995, 6C992, 6C994, 6D992, 6E992, 7A994, 7B994, 7D994, 7E994, 8A992, 8D992, 8D999, 8E992, 9A990, 9A991, 9A992, 9B990, 9B991, 9D990, 9D991, 9E990, 9E991, 9E993, EAR99.

 

3. For those ECCN are not listed above , it is US-origin controlled Content.

 

For more information, Please refer to EAR on BIS https://bis.doc.gov/, or SCC website “【合规·出口管制】美国出口管制条例介绍以及下载【COMPLIANCE · EXPORT CONTROL】Introduction to EAR and Export Administration Regulation Downloadable Files(From BIS website)” https://supply.zte.com.cn/UI/Web/Application/kxscm/kxsup_manager/Portal/article.aspx?aid=1283

 

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