EAR-02Edition 1.0 · November 2026
De Minimis
The US-content rule, decoded
A step-by-step method for non-US companies to decide whether the US content of a foreign-made item brings it under the EAR — destination by destination, at fair market value, on the record.
What this guide settles
- Origin before content: de minimis applies only to a foreign-made item — never to ITAR content or unmodified US parts
- Zero list before percentage: a §734.4(a) paragraph whose conditions are all met ends the percentage analysis — and it depends on the destination
- Only US content controlled for the destination counts, listed at the level it is incorporated — the kit, module or core
- Both terms at fair market price, per destination; below the threshold, the foreign direct product rules still apply
What you get
- The guide: explanations, method, conditions and limits
- Worked examples: one product calculated for three destinations, a commented real case and ten pitfalls
- Tools printed in the guide: four templates and a readiness check
- Sources with section references and their verification date
- Revisions included for 12 months
Printed tools: T1 · Content inventory and screening · T2 · Controlled content and valuation worksheet · T3 · Calculation record · T4 · Review triggers and change log · Readiness check
Contents
- Before you start: scope and limits
- Why de minimis is so often misread
- The rule in one page
- The words that decide the answer
- The method in six steps
- Templates T1 to T4
- Ten pitfalls
- Case study: counting the chip, pricing the ratio
- Readiness check
What it does not cover
- Foreign direct product rules, which can apply below the threshold
- Second incorporation in depth
- Encryption items and their §734.4(b) conditions in depth
Assumed knowledge. Knowing whether the item is foreign-made at all, how US-origin items are classified, and that a licence can still be required for EAR99 items.
Sample pages
Open an image for the full-size page.
Where it connects
US-Origin or Foreign-Made?
US-Origin or Foreign-Made? decides whether an item is foreign-made; De Minimis decides whether its US content brings it under the EAR.
EAR-03Foreign Direct Product Rules
De Minimis counts the US content inside a foreign-made item; Foreign Direct Product Rules looks at the technology, software and equipment behind it. Run both.
EAR-04Second Incorporation
De Minimis runs the calculation; Second Incorporation decides whether the US content inside a foreign component enters it.
EAR-08Encryption Controls
De Minimis runs the calculation; Encryption Controls gives the extra conditions for counting US encryption content.
Part of a collection
De Minimis is one of the eight guides of EAR: Scope, Licensing & Exceptions (Understand the Rules), available together at €390 instead of €89 each.