What percentage of controlled US content allows a foreign-made product to not be subject to EAR when shipped to a Country Group E:1?

In the context of the Export Administration Regulations (EAR), controlled US content plays a significant role in determining whether a foreign-made product is subject to these regulations when exported to certain countries, including those categorized as Country Group E:1.

When examining the threshold for controlled US content, the rule states that if the US content in a foreign product is 10% or less, then that product is typically not subject to the EAR. This means that a foreign product can incorporate a certain amount of US components or technology without triggering the regulatory requirements imposed by the EAR. By setting this threshold at 10%, the regulations allow flexibility for the integration of US-made items in foreign products while still maintaining a level of oversight.

Thus, if a product has 10% or less US-controlled content, it can be shipped to E:1 countries without being subject to EAR requirements. This framework helps to facilitate trade while balancing national security concerns related to the export of sensitive technologies. The answer highlights an important regulatory measure that applies specifically to the context of exporting to countries with potential risks related to US-controlled technologies.