From your excerpt: "This deemed export rule does not apply to persons lawfully admitted for permanent residence in the United States and does not apply to persons who are protected individuals under the Immigration and Naturalization Act (8 U.S.C. 1324b(a)(3))."
They should have just asked for proof of permanent residence or citizenship and informed the customer that this is US export law.
They should have just asked for proof of permanent residence or citizenship and informed the customer that this is US export law.