Key Escrow Rule

[John Young <jya@pipeline.com>]

The Federal Register of December 13, 1996 has published

"Licensing of Key Escrow Encryption Equipment and Software"

This parallels the draft regulations for encryption export 
provided by Steptoe & Johnson on December 11 but sets 
provisions specifically for key escrow products.

We've put it at:

   http://jya.com/ke121396.htm  (39 kb)

Here are excerpts from the opening:

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    This interim final rule amends the Export Administration 
Regulations (EAR) by imposing national security controls on Key escrow 
information security (encryption) equipment and software transferred 
from the U.S. Munitions List to the Commerce Control List following a 
commodity jurisdiction determination by the Department of State.

    This interim final rule also amends the EAR to exclude key escrow 
items from the de minimis provisions for items exported from abroad and 
to exclude key escrow encryption software from mass market eligibility. 
Further, key escrow encryption software is subject to the EAR even when 
made publicly available. ...

    Once transferred, key escrow encryption items will be controlled 
for national security reasons. A license will be required from the 
Department of Commerce to all destinations, except Canada. This is an 
initial step in liberalizing the treatment of encryption exports.

    The Bureau of Export Administration is preparing regulations to 
further implement the Administration's encryption policies, which will 
be published in the Federal Register in the near future. ...