Glossary

BIS's official classification ruling — counsel submits an item description via SNAP-R and BIS returns a binding ECCN determination.

List of dual-use items subject to EAR controls, organized into ten categories and five product groups, each item designated by an ECCN.

DDTC's official mechanism for resolving whether an item is subject to the ITAR (USML) or the EAR. Used when jurisdiction is uncertain.

Residual designation for EAR-subject items not specified by any ECCN on the CCL; generally exportable without a license unless destination, end-use, or end-user restrictions apply.

Five-character alphanumeric designation on the Commerce Control List that identifies an item's regulatory category, product group, and reasons for control.

EAR extraterritorial rule — foreign-produced items that are the direct product of U.S.-origin technology or software, or produced by a plant or major component that is itself such a direct product, become EAR-subject when destined for specified end uses / end users / destinations.

EAR designation for shipments that do not require a license — generally because the destination is not controlled for any reason for control applicable to the ECCN, or the item is EAR99 to a non-embargoed destination.

Voting interest acquired by a foreign government, or the right to acquire one — including the 25% / 49% combined-voting-interest thresholds under § 800.244 — that triggers a mandatory declaration when paired with any TID prong.

One of the three TID prongs. Ten enumerated categories (financial, geolocation, biometric, health, communications, federal identifiers, security-clearance, insurance, genetic, nonpublic electronic communications) subject to U.S.-person quantity thresholds.

Shorthand for the three prongs (critical technology, critical infrastructure, sensitive personal data) that, when present, make a U.S. business a TID U.S. business and bring non-controlling investments within CFIUS jurisdiction.

Twenty-one categories of defense articles and services controlled under the ITAR; jurisdiction is determined by reference to the USML before the EAR.

OFAC interpretive rule — any entity owned 50% or more, in the aggregate, directly or indirectly, by one or more SDNs is itself blocked even if not separately listed.

The U.S. person knows in fact that the foreign target engages in the covered activity. The most defensible basis for Outbound Investment Rule liability.

The power, direct or indirect, whether or not exercised, to determine, direct, or decide important matters affecting an entity — through ownership, voting rights, contractual arrangements, or otherwise.

Lookup table at Supplement No. 1 to Part 738 — destination countries × reasons for control. An 'X' at the intersection means a license is required for that reason-for-control ECCN to that destination.

Foreign jurisdictions subject to the Outbound Investment Rule — currently the People's Republic of China (CN), Hong Kong (HK), and Macau (MO).

A transaction by or with a foreign person that results in foreign control of a U.S. business. Control is presumed at voting interest ≥ 50% and may exist below 50% via negative-control governance or approval rights.

A non-controlling investment by a foreign person in a TID U.S. business that affords the foreign person any one of: access to material nonpublic technical information, board / observer rights, or involvement in substantive decisionmaking.

A transaction within CFIUS jurisdiction — either a covered control transaction under § 800.210 or a covered investment under § 800.211, or covered real estate under Part 802.

Twenty-eight enumerated infrastructure subsectors (energy, telecommunications, financial services, transportation, defense industrial base, et al.) in which a covered investment activity triggers TID jurisdiction.

Items controlled under enumerated regimes — including the USML, certain ECCNs (notably § 1758 emerging-and-foundational tech), Nuclear Regulatory Commission controls, select agents, and items controlled under the EAR for national security, missile technology, nuclear, or chemical/biological reasons.

Release of EAR-controlled technology or source code to a foreign person inside the United States is 'deemed' an export to that person's most-recent country of citizenship or permanent residency.

Foreign state listed at § 800.218 — currently Australia, Canada, New Zealand, and the United Kingdom — whose nationals may qualify as excepted investors when § 800.219 criteria are met.

A foreign person from an excepted foreign state who satisfies the minimum-excepted-ownership requirement and is not subject to disqualifying conduct. Excludes the transaction from § 800.211 covered-investment treatment but does not affect § 800.210 covered-control jurisdiction.

Change in end use or end user of an EAR-subject item within the same foreign country. Subject to its own EAR licensing analysis.

Under the Outbound Investment Rule, the U.S. person is liable only if they have actual knowledge, or reason to know, that the foreign target engages in a covered activity. Counsel judgment — not inferred by this tool.

Short-form CFIUS filing required when a foreign government has a substantial interest in a covered investment in a TID U.S. business, or when a covered investment involves critical technology requiring a license to the foreign person's jurisdiction. 30-day declaration window; 30-day CFIUS review.

Under the Outbound Investment Rule, a transaction with a foreign target engaged in covered semiconductor or AI activities listed at § 850.403 — subject to a post-closing notification requirement.

Under the Outbound Investment Rule, a transaction with a foreign target engaged in covered semiconductor, quantum, or AI activities listed at § 850.224 — barred outright absent an exemption.

Actual shipment or transmission of an EAR-subject item from one foreign country to another, including by release to a national of a third country in the second country.

Constructive-knowledge standard under § 850.104 — the U.S. person 'should have known' the foreign target engaged in covered activity. The most contestable knowledge basis; diligence record must be supportable.

The policy bases — listed in each ECCN — that require a license. NS, MT, NP, CB, RS, FC, AT, CC, SI, EI. Cross-referenced against the Country Chart for destination-specific licensing.

A U.S. business that produces, designs, tests, manufactures, fabricates, or develops one or more critical technologies; owns, operates, manufactures, supplies, or services critical infrastructure; or maintains or collects sensitive personal data of U.S. citizens.

Long-form CFIUS filing made by the transaction parties. 45-day review followed by an optional 45-day investigation and, if escalated, a 15-day Presidential decision. Confers a safe-harbor letter upon clearance.

Reason for control — items controlled to restrict exports to countries designated as supporting acts of international terrorism.

Reason for control — items controlled per the Australia Group to limit proliferation of chemical and biological weapons.

Reason for control — items that may be used to commit human-rights abuses, including certain law-enforcement and surveillance equipment.

Reason for control — items controlled per the Inter-American Firearms Convention.

Reason for control — items controlled per the Missile Technology Control Regime (MTCR) Annex.

Reason for control — items controlled to limit the spread of nuclear weapons capability per the Nuclear Suppliers Group.

Reason for control on the CCL — items controlled to limit transfer of items significant to U.S. national security.

Reason for control — items whose export may contribute to regional instability if released to certain destinations.

Reason for control — items of significant proliferation concern not otherwise controlled.

BIS list of foreign persons subject to specific license requirements for the export, re-export, and in-country transfer of EAR-subject items. Most listings impose a presumption of denial.

Statute that expanded CFIUS jurisdiction to cover non-controlling investments in TID U.S. businesses and certain real-estate transactions.

A written commitment from the transaction parties — typically lighter-touch than an NSA — addressing one or more national-security concerns identified during CFIUS review.

BIS list of foreign parties identified as 'military end users' for the purposes of § 744.21. Listed parties are subject to license requirements for items listed in Supplement No. 2 to Part 744.

Negotiated mitigation agreement between CFIUS and the transaction parties imposing security controls, board composition restrictions, supply-chain conditions, or other obligations as a condition of CFIUS clearance.

OFAC's principal sanctions list. U.S. persons are prohibited from dealing with SDNs and any entity 50% or more owned, directly or indirectly, by one or more SDNs.

DoD annual list, under § 1260H of the FY 2021 NDAA, of 'Chinese military companies' operating directly or indirectly in the United States. Carries reputational and procurement consequences and frequently anchors investment-screening risk.

FY 2019 NDAA § 889 prohibition on federal agencies and contractors procuring or using covered telecommunications or video-surveillance equipment from Huawei, ZTE, Hytera, Hikvision, Dahua, or their subsidiaries.

Commerce Department bureau that administers the EAR, maintains the Commerce Control List, and issues export licenses.

Inter-agency committee that reviews foreign investments in U.S. businesses for national-security risk and authorizes mitigation or blocking.

State Department directorate that administers the ITAR and issues commodity jurisdiction determinations and export authorizations.

Commerce Department regulations governing the export, re-export, and in-country transfer of dual-use items.

State Department regulations governing the export of defense articles, defense services, and related technical data.

Treasury office that administers and enforces U.S. economic and trade sanctions against targeted foreign jurisdictions, regimes, and individuals.