e. License Exception ENC: 740.17(b)(1)

If an item or transaction does not fall under any of the above provisions (740.17(a), (b)(2), or (b)(3) then it falls under 740.17(b)(1). 

Items described in 740.17(b)(1) do not require a classification submission to BIS to be eligible for license exception ENC or NLR status for mass market items. They may be self-classified by the exporter. 

If an exporter chooses to self-classify an item under 740.17(b)(1), they must submit an annual self-classification report.  However, if the item is submitted for a classification request with BIS and the classification request has been issued, that item does not need to be included on the Annual Self-Classification Report.