ITSAppUsesNonExemptEncryption export compliance while internal testing?

Basically <key>ITSAppUsesNonExemptEncryption</key><false/> stands for a Boolean value equal to NO.

Update by @JosepH: This value means that the app uses no encryption, or only exempt encryption. If your app uses encryption and is not exempt, you must set this value to YES/true.

It seems debatable sometimes when an app is considered to use encryption.

According to WWDC2015 Distribution Whats New

Setting "ITSAppUsesNonExemptEncryption" to "NO" in info.plist works fine. if no cryptographic content in your app.

I had got this pop up During selecting build for internal testing i didn't included "ITSAppUsesNonExemptEncryption" key in my info.plist but still worked for me.

Even i successfully uploaded new application didn't included "ITSEncryptionExportComplianceCode" and "ITSAppUsesNonExemptEncryption" keys.

Also Apple Doc.

Important: If your app requires that you provide additional documents for the encryption review, your app won’t have the Ready for Sale status on the store until Export Compliance has reviewed and approved your documents. The app can’t be distributed for prerelease testing until Export Compliance has reviewed and approved it.

If your app is not using encryption and you don’t want to have to answer these questions at the time of submission, you can provide export compliance information with your build. You can also provide new or updated documentation via iTunes Connect to receive the appropriate key string value to include with your build before uploading it to iTunes Connect.

To add export compliance documentation in iTunes Connect:

Go to the Encryption section under Features. Click the plus sign next to the appropriate platform section. Answer the questions appropriately. Attach the file when prompted. Click Save. Your documents will then be sent for review immediately and the status of your document will show in Compliance Review. A key value will also be generated automatically that you can include in your Info.plist file. For more information on including the key value with your build, see the Resources and Help section Trade Compliance.

You can upload a build without an export compliance key. If you include a key, it can indicate that you do not need export compliance documentation; this requires no approval. If you include a key that references a specific export compliance document, that document must be approved; it cannot be in In Review or Rejected.

You can review your answers at any time by clicking the document file name and selecting More Information. If you need to update your documentation or change any of the answers to the questions, you will need to repeat the steps above to add a new document that corresponds with your changes.

Add this key in plist file...Everything will be alright..

<key>ITSAppUsesNonExemptEncryption</key>  
<false/>

Just paste before </dict></plist>

Apple has simplified our building process, so you don't need to click on the same checkbox every time. You can streamline your iTC flow by compiling this flag into the app.

This is still the case as of 2019.