Statement by the Press Secretary: Administration Updates: Encryption Export Policy (7/17/00)
                              THE WHITE HOUSE

                       Office of the Press Secretary
                          (Camp David, Maryland)

For Immediate Release                                         July 17, 2000


                          Administration Updates

                         Encryption Export Policy

Today, the Administration is updating its policy for encryption exports to
the European Union and other key trading partners, thus assuring continued
competitiveness of U.S. industry in international markets.

Under the new policy, U.S. companies can export under license exception
(i.e., without a license) any encryption product to any end user in the 15
nations of the European Union as well as Australia, Norway, Czech Republic,
Hungary, Poland, Japan, New Zealand and Switzerland.  Previous distinctions
between government and non-government end users are removed for these
countries.  Further, U.S. exporters will be permitted to ship their
products to these nations immediately after they have submitted a commodity
classification request for their product to the Department of Commerce.
Exporters no longer have to wait for a completed technical review or incur
a 30-day delay to ship their encryption products to customers in these

These updates track with recent regulations adopted by the European Union
that ease encryption exports to the same countries.  Consistent with the
Administration?s January 2000 commitment, U.S. companies can continue to
compete effectively in these markets.

The steps announced today continue our policy to serve the full range of
national interests:  promote electronic commerce, support law enforcement
and national security, protect privacy, and maintain U.S. industry
leadership in security technologies.

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