The Encryption Order

 

​1.  Law Governing the Control of Commodities and Services - 1957 (5717) Order Regarding the Engagement in Encryption Items - 1974 (5734).

2. Declaration Regarding the Control of Commodities and Services (Engagement in Encryption Items) - 1974 (5734).

3.  Declaration Governing the Control of Commodities and Services (Engagement in Encryption Items) (Amendment) - 1998 (5758).

 

 

 

1. Law Governing the Control of Commodities and Services - 1957 (5717)

Order Regarding the Engagement in Encryption Item- 1974 (5734).

In this Order -
"Encryption items", "encryption", "export", "engagement in encryption items", "modification" and "integration" as per their meaning in the Declaration Regarding the Control of Commodities and Services (Engagement in Encryption Items - 1998 (5735)(3);
"Free Means" means an encryption item for which the Director-General granted a General License, or for which he/she, of his/her own initiative, has publicly notified tat it is free as per provisions of Section 2b;
"The Director" means the Director-General of the Ministry of Defense;
"Type of User" means a financial institution, government agency or a corporation, institution or organization of another type which has gained the Director’s approval;
"License" means each of the following: a General License, Restricted License and Special License;
"General License" means a license under this Order for all forms of engagement in encryption items, other than the modification and integration of a certain encryption item;
"Restricted License" means a license under this Order which is restricted to forms of engagement in encryption items, certain encryption items or destination countries, according to the type of user of the encryption item or other criterion;
"Special License" means a license under this Order for a certain form of engagement, including some transaction in some encryption items; ​
​1.Definitions

(a) No one shall engage in encryption items unless he/she has been licensed to do so by the Director and according to the terms of license.

(b) A Restricted License or Special License shall be effective for one year or for another term as specified therein.

(c) A General License shall be of unlimited duration, except for the engagement in production, in respect of which renewal of license is required three years from the date of its award.

(e) The Director may renew a license which has expired. ​

2.​License to Engage in Encryption Items

(a) A license application shall be submitted to the Director on a form that he/she has so stipulated for this purpose.

(b) The applicant shall furnish a correct, complete response to each question on the form and provide correct, accurate details. ​

3.​License Application

(c) Notwithstanding the aforementioned in Section 2(a), a license shall not be required to engage in encryption items of the form specified hereunder:

(1) Purchase, use, possession, transfer from one location to another or from one person to another, distribution, sale, negotiations for export or export of free means.

(2) Purchase, use or possession of encryption items, if the sale or transfer of encryption items to that person was done under license; ​

License exemption

(d) Should the Director award a General License covering a certain encryption item, he/she shall publicly declare the said encryption item a free means; The Director is entitled to make such publication even if a license application for that encryption item was not submitted.

​(e) Notice under this Section shall be published in the Official Gazette, although the Director may order that it be published elsewhere.

Notice of Free Means

(a) If a license application was submitted as per this Order, the Director is entitled:

(1) To gain access, personally or by means of his/her authorized designee, to any location where the engagement in encryption items, by definition, is taking place or is about to take place.

(2) To scrutinize, personally or by means of his/her authorized designee, the encryption items, encryption-related records, and the circumstances whereby the engagement in encryption-related records, by definition, is taking place or will be taking place in the future.

(3) To demand that the license applicant furnish him with additional details that he/she regards as necessary concerning the said application.

(b) The applicant shall enable the Director to exercise his/her powers under this Section. ​

4.​Access, Powers to Demand Scrutiny of Details
The Director is entitled to grant , refuse to grant, stipulate conditions for, suspend or revoke a license, as he/she may deem fit. ​5.​Granting and Revoking a License
The Director is entitled to exercise his/her powers under Section 4, even after the license has already been granted. ​6.​Director Powers After Granting License

(a) License award and renewal shall be subject to an annual fee of NIS ________.

(b) The fee will be payable to the Head of Income and Expenses at the Finance Department, IMOD Compound, Tel-Aviv. ​

7.​Fees
Someone engaged in encryption items shall not give nor disclose any information on said engagement therein, unless it is to the Director designee, as stipulated in the license or after the expiration thereof. ​8.​Confidentiality
This Order does not derogate from any other duly passed law, or from any other legislation, but rather supplements them. ​9.​Abidance by Law
The Director is the executive authority for purposes of this Order and is entitled to give any directive necessary for the execution thereof.​10.​Executive Authority

(a) The Director shall appoint an Advisory Committee comprised of at least five members for granting licenses to exercise his/her powers under this Order.

(b) The Advisory Committee's members shall include a public representative.

(c) The Advisory Committee is entitled to appoint sub-committees, from among and not from among its members, for such matters as it may prescribe.

(d) The Director may delegate to the Advisory Committee or to a sub-committee any of his/her powers under this Order, except for the power to award, deny, revoke or suspend a license. ​

10a.​Advisory Committee
This Order shall become effective on 1 January 1975 (18 Tevet 5735). ​11​Effective Date
This order shall be entitled "Control of Commodities and Services (Engagement in Encryption Items) - 1974 (5734). ​12​Name
Shimon Peres
Minister of Defense ​
5 September 1974
(18 Elul 5734) ​

 

 

2. Declaration Regarding the Control of Commodities and Services (Engagement in Encryption Items) -1974 (5734)

By virtue of the power vested in me under Sections 4 of the Control of Commodities and Services Law -1957 (5717) (1), I hereby declare as follows:

In this Declaration -

"Information" means telegraph signals, teleprinter signals, signals originating from a computerized system, words, including written letters, speech, pictures or drawings of any kind being transferred or designated for transfer from one location to another by means of electrical, electronic or other connection;

"Encryption Item" means any device, mechanical, electro-mechanical or electronic instrument or any part thereof, or any model of a device or instrument or any part of said model, that is or can be operated semi-automatically or manually, including secret writing that is or can be activated by writing or printing and that cause or are intended to cause total or partial scrambling of data for any period of time by someone who has or does not have an encryption key;

"Encryption Method" means a method employed for the actual or potential use of encryption items.

"Encryption Key" means an instrument, device, entry, recording on magnetic media, hole-punch on a tape or card, or anything programmed in the memory of a computerized system or of other electronic device that is used or intended for use to encrypt data by some encryption method, or to decrypt data that were encrypted by the same encryption method;

"Encryption-related record" means an figure, drawing, photograph, transparency, slide, equipment, recording on magnetic media, hole-punch on a tape or card, or anything programmed in the memory of a computerized system or of other electronic device, or any other way of describing an encryption method, encryption key, a part thereof or their attributes or performance capabilities, whether they exist or not;

"Engagement in Encryption Items" means the engagement in the development, production, possession, use, import, transfer, handling from one location to another or from one person to another, distribution, sale or purchase of encryption items, encryption key, or record relating to encryption or or addressing them otherwise. ​
1.​Definitions
The engagement in encryption items is hereby declared a controlled service. ​2.​Declaration Regarding Controlled Service
This Declaration shall be entitled "Declaration Regarding the Control of Commodities and Services (Engagement in Encryption Items) - 1974 (5734)". ​3.​
Shimon Peres
Minister of Defense ​
5 September 1974
(18 Elul 5734) ​

 

 

3. Declaration Governing the Control of Commodities and Services (Engagement in Encryption Items) (Amendment) - 1998 (5758)

By virtue of the power vested in me under Sections 4 of the Control of Commodities and Services Law -1957 (5717)(1), and with the knowledge of the Knesset Economics Committee, I hereby declare as follows:

Section 1 of the Declaration Regarding the Control of Commodities and Services (Engagement in Encryption Means) - 1974 (5735)(2) will be replaced by:n this Declaration -

Definitions

​In this Declaration -

"Encryption Item" means an encryption tool, encryption key, encryption-related record or encryption method;

"Encryption Tool" means software or device, including a series, part or model thereof that cause or are intended to cause encryption or decryption, including whether or not the encryption or decryption are done by means of another device or software;

"Software" is as per its definition in the Computer Law - 1995 (5755)(3), including designated for use in an auxiliary computing device;

"Device" means an electro-mechanical or electronic device that can be operated automatically, semi-automatically or manually, including an secret writing that can be activated by writing or typing ;

 

"Encryption" means -

(a) Scrambling of data, entirely or in part, by modifying the data or how it is transferred, using mathematical equations or algorithms, whether by means of a key or not, and in such a way as to enable it to be used to recover the original data or a part thereof;

(b) Commonality of the encryption keys:

 

"Data" means anything that can be represented in a digitized system by means of electrical signals.

"Commonality of Encryption Keys" means a process that enables several entities to agree on the same encryption key.

"Decryption" means a procedure that enables or facilitates, entirely or in part, an unscrambling of data that were otherwise incomprehensible as aforestated in Section (1) of the "Encryption" definition, whether by using an encryption key or not.

"Encryption-Related Record" means any form of description, including an entry, drawing, photograph, recording on magnetic media or anything programmed in the memory of a computerized system or another electronic device, of an encryption tool, of an encryption method, of an encryption key, or a part thereof or of their attributes or of their performance capability, whether they exist or not;

"Encryption Method" means an approach, plan, equation or algorithm for encrypting or decrypting;

"Encryption Key" means data that are used in the encryption method for encrypting or decrypting, and which are subject to change;

"Engagement in Encryption Items" means the development, production, modification, integration, purchase, use, possession, transfer, handling from one location to another or from one person to another, import, distribution, sale or negotiations to export or export of encryption items;

"Modification" means the process of creating encryption items, that begins with an existing encryption item and culminates in another encryption item, including conversion, derivative action, performance improvement, addition or deletion of attributes, irrespective of whether the new item is referred to by the same name as the encryption item from which the process began, or otherwise;

"Integration" means the process of creating encryption items that begins with one or more existing encryption products and culminates in one encryption item, irrespective of whether or not the new item is referred to by the same name of one of the items from which the process of its creation began, or otherwise;

"Export" includes the export of know-how that relates to the engagement in encryption items.

"Export of Know-How" includes the export of know-how to an Israeli corporation that is controlled by someone who is not a resident of Israel, whether the export is being executed by way of furnishing data, training, exercise or otherwise;

 

"Negotiations" means mutual discussion between two sides of a transaction, including preliminary contacts to promote the transaction, irrespective of whether or not:

(1)  The said negotiations culminated in a contract to execute the transaction;

(2) Monetary consideration is being received for conducting the negotiations;

(3) The negotiations are being made in writing, verbally or by any other mode of communication:"

1.​Replacement of Section 1
Item 16 of the supplement to the Declaration Regarding the Control of Commodities and Services (Weapons and Defense Know-How) - 1987 (5747) (4) - will be deleted. ​2.​Amendment of Declaration Regarding Weapons
This declaration shall become effective 30 days from the date of publication thereof.​3.​Effective Date
Itzhak Mordechay
Minister of Defense ​
23 July 1998
(29 Tammuz 5758) ​