Second Incorporation

What this guide settles

• Second incorporation is a BIS practice, not a rule written in the EAR — applied case by case, on the facts
• It applies only once a first incorporation has produced a distinct, completed foreign product
• An arm’s-length purchase or separate sale points to a discrete product; your role in its design, manufacture or parts points away
• It never covers ITAR, applicable zero de minimis, US-origin “600 series” or see-through content, and it must never be engineered

What you get

• The guide: explanations, method, conditions and limits
• Worked examples: the discrete-product test, the BIS advisory opinion commented 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 · Component tiering sheet · T2 · Discrete-product assessment · T3 · Second incorporation record · T4 · Review triggers and change log · Readiness check

Contents

1. Before you start: scope and limits
2. Why second incorporation matters
3. The rule in one page
4. The discrete-product test
5. The method in six steps
6. Templates T1 to T4
7. Ten pitfalls
8. Case study: the avionics question
9. Readiness check

What it does not cover

• The de minimis calculation itself
• Foreign direct product rules
• ITAR components

Assumed knowledge. Knowing how a de minimis calculation works, whether your product is foreign-made, and that foreign direct product rules are a separate route.

Sample pages

Open an image for the full-size page.

Where it connects

Part of a collection

Second Incorporation is one of the eight guides of EAR: Scope, Licensing & Exceptions (Understand the Rules), available together at €390 instead of €89 each.