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The Virtual Wall

IP.com Disclosure Number: IPCOM000218590D
Publication Date: 2012-Jun-05
Document File: 8 page(s) / 484K

Publishing Venue

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This is the abbreviated version, containing approximately 18% of the total text.

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The Virtual Wall

   by Rock R. Kaiser
The M. W. Kellogg Company Three GreenwayPlaza Houston, Texas 77046-0395

With the sale of the first piece of the Berlin Wall in New York, technology-basedcompanies have begun to realize the expansive potential of the Eastern Bloc market. Although the threat of Western technologybeing used against the United States or one of its allies has diminished in recent months and the the export regulations are constantly being liberalized, there are still limitationson the sale of DEC's latest VAXtechnology to Eastern Bloc countries. However, it is possible to sell DEC hardware to some East Bloc nations, if the proper procedures are followed. Following are guidelinesand insightswhich could be helpful in putting U. S. Export Regulations into DEC terms.

U.S.Export Regulations

The first step in the application process for a validated license is obtaining a subscription to the United States Export Administration Regulations (EAR) which currently costs about $90 and entitles the user to a full year of updates, issued periodically by the U.S. Government Printing Office (GPO) in Washington D.C. The next step is realizing that the regulations are almost impossible to comprehend, but that understanding them is imperative to a successful license application. The U.S. Department of Commerce (DOC), the U. S. governmental entity responsible for implementing and enforcing the export regulations, can help clarify the regulationsto the exporter and should be utilized if questions arise. When discussing a licensing application with the DOC, keep in mind they are on the side of the exporter, who must be completely honest and open about his intentions. It may be convenient to overlook a piece of software pre-installed on the system before export, because that piece of softwaremay be denied or requires additional paperwork; or to be vague about the end-use of the exported system. Omission of this information limits the usefulness of the DOC and subjects the exporter to severecriminaland financial penalties.


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Below is a condensed review of the regulations as they apply to digital computer systems. The following details apply only to systemsbeing exported for civilian end-users, and not to systems being exported for military or intelligence-gatheringpurposes or nuclear end-uses.

Section 776 of the Export Regulations entitled "Special Commodity Policies and Provisions," and subsection776.10 covers "Electronic Computers and Related Equipment." This subsection defines the support documentation, which must be submitted, in addition to the license application (GPO Form BXA-699P). For export to an Eastern Bloc nation, two forms are usually required to accompany the license application. The first form is the "Statement by Ultimate Consignee and Purchaser" (GPO Form BXA-629P). The second is the "Digital Computer System Parameters" (GPO Form BXA-6031P). These forms are described in detail below.

Statement bv Ultimate Consigne...