U.S. export controls do not stop at the U.S. border. A product made in Germany, Malaysia or Mexico can still be subject to the Export Administration Regulations (EAR) if it contains enough controlled U.S. content. The de minimis rules, in § 734.4, decide when.
The basic rule
A foreign-made item is not subject to the EAR by reason of U.S. content if the value of controlled U.S.-origin content is at or below the de minimis level:
- 25 percent for most destinations;
- 10 percent for destinations in Country Group E:1 and E:2 (the most restricted destinations).
Above the threshold, the foreign item is subject to the EAR and must be classified and licensed as if it were a U.S. export.
What counts as "controlled" content
Only U.S.-origin commodities, software and technology that would require a licence for export to the foreign item's destination count. If the U.S. content could have been sent there without a licence (NLR), it is excluded from the calculation. Classifying each U.S. input is therefore the first step — see how to find the ECCN for your product.
Zero de minimis
For some items there is no threshold at all: any amount of the U.S. content makes the foreign item subject to the EAR. Examples include certain 600 series and 9x515 content for arms-embargoed destinations, and certain high-end items identified in § 734.4. See 600 series ECCNs.
How to calculate
- List the U.S.-origin content in the foreign item.
- Classify each part and decide whether it would need a licence to the destination.
- Take the value of the controlled U.S. content (fair market value).
- Divide by the value of the foreign-made item (its sale price, or fair market value).
- Compare with the applicable threshold.
Supplement No. 2 to Part 734 gives guidelines, including one-time reporting for some calculations.
De minimis vs. the foreign direct product rules
De minimis looks at content. The foreign direct product rules (§ 734.9) look at how a foreign item was made — for example with U.S. technology or on U.S.-origin equipment. A foreign item can be subject to the EAR under either route. Recent rules for advanced semiconductors and certain end users rely heavily on the direct product rules.
Worked example
A German machine worth €100,000 contains a U.S. controller worth €20,000 that would need a licence to the destination, and U.S. EAR99 sensors worth €5,000. Controlled U.S. content is €20,000 — 20 percent. For most destinations that is below 25 percent: the machine is not subject to the EAR by reason of U.S. content. For an E:1 destination the threshold is 10 percent, so the machine would be subject to the EAR.
Frequently asked
Is software counted? Yes, U.S.-origin software incorporated in the item counts at its value.
Does the threshold apply to technology? Foreign technology commingled with U.S. technology has its own rules and may require a report.
In ECCN.help
The first input to a de minimis calculation is the classification of each U.S. part. The ECCN.help Classification Workflow classifies parts step by step, rule-based with no AI, and the licence check shows whether each would need a licence to the destination — which decides whether it counts.
ECCN.help provides research and assistance, not legal advice. Verify every result against the regulation.