Title 15 of the Code of Federal Regulations (CFR) includes Export Administration Regulations (EAR). They are found in sections 730-774 of 15 CFR. These regulations are created and implemented by the Department of Commerce (DOC), Bureau of Industry and Security (BIS) and regulate the export of goods as well as related technology identified on the Commodity Control List (CCL). In addition, the EAR implements anti-boycott law and other provisions.
Structure of the EAR
The EAR are organized in a structured and logical manner. Trade professionals should familiarize themselves with the titles and introductory sections of the parts of the EAR including:
STEPS FOR USING THE EAR
SCOPE OF THE EXPORT ADMINISTRATION REGULATIONS
COMMERCE CONTROL LIST OVERVIEW AND THE COUNTRY CHART
CONTROL POLICY CCL BASED CONTROLS
CONTROL POLICY: END-USER AND END-USE BASED
CHEMICAL WEAPONS CONVENTION REQUIREMENTS
EMBARGOES AND OTHER SPECIAL CONTROLS
SPECIAL IRAQ RECONSTRUCTION LICENSE
APPLICATIONS (CLASSIFICATION, ADVISORY, AND LICENSE) AND DOCUMENTATION
APPLICATION PROCESSING, ISSUANCE, AND DENIAL
SPECIAL COMPREHENSIVE LICENSE
SHORT SUPPLY CONTROLS
EXPORT CLEARANCE REQUIREMENTS
RESTRICTIVE TRADE PRACTICES OR BOYCOTTS
ENFORCEMENT AND PROTECTIVE MEASURES
ADMINISTRATIVE ENFORCEMENT PROCEEDINGS
FOREIGN AVAILABILITY DETERMINATION PROCEDURES AND CRITERIA
DEFINITIONS OF TERMS
THE COMMERCE CONTROL LIST
Part 732 of EAR provides guidance about whether or not a transaction is subject to the EAR and whether it requires a license. Some of the reasons for which a license may be required are described below:
- If an item is on the CCL and the Country Chart in Part 738 of the EAR indicates that a license is required for that country
- Based on the end-use or end-user in a transaction, primarily for proliferation reasons
- Any exports to embargoed destinations
When Do i Need an Export License?
Determining if an export license is required can be one of the more complex questions in trade compliance. Although most products to not require a license, non-compliance can have substantial negative impacts on a business. In addition, several U.S. agencies are involved in licensure adding to complexity. The EAR are very detailed and contain lengthy technical descriptions. They can be intimidating, but they allow trade professionals to ascertain the appropriate control status. The detailed listings of technical parameters in the CCL establish precise, objective criteria. Much of which is derived from multilaterally adopted lists.Visiting the CBP or BIS websites is not adequate to demonstrate reasonable care. In general, a fully documented compliance plan, an expert review of items and a sound global trade content database are needed to help determine if an export license is needed.
What is EAR99?
An EAR99 is a type of classification. In general, it means that an item is subject to the Export Administration Regulations (EAR) but does not have a specific Export Control Classification Number (ECCN) on the CCL. However, some EAR99 items may still require a license or further due diligence on behalf of the shipper. Exports of an EAR99 item to a denied party, embargoed country, an end-user of concern or in support of a prohibited end-use may require an export license.
Proper Denied Party Screening (DPS) is required to determine if an EAR99 product needs a license as well as other factors. Again, the right trade content technology can help enable compliance.
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