Export Compliance Alphabet Soup

When the ECCN (Export Control Classification Number) comes up on export documents many shippers automatically enter EAR 99. For license questions NLR (No License Required) is often used as a default entry. While these may be the correct entries, it is a good business practice to check and confirm.   Logistics providers can offer expertise in these areas but the exporter bears primary responsibility for compliance.

As part of any Export Management Program, exporters need to make sure they are using correct commodity classifications and license exceptions. Your commodities may be listed on the  CCL (Commerce Control List) in which case EAR 99 is not valid.  If you are automatically using NLR and EAR 99 you may be at risk.  According to EAR part 732 “For items subject to EAR but not listed in CCL the proper classification is EAR 99. EAR 99 is a basket for items not specified under CCL and appears at the end of each Category on the CCL.”

Licensing is a function of both the ECCN and country of ultimate destination. If you determine that your commodity is listed on the CCL the next step is checking license requirements. Here is some info from the BIS (Bureau of Industry and Security) website:

Country Guidance

The country of ultimate destination is a key factor in determining license requirements administered by the Bureau of Industry and Security (BIS) pursuant to the Export Administration Regulations (EAR). BIS maintains the Commerce Country Chart to use in conjunction with other portions of the EAR to determine whether a license is required.  Please review Part 732 of the EAR for additional information on how to use the EAR, including the Commerce Country Chart.

For immediate assistance with exports contact mitch@adhoclogistics.com .

Getting Started on Export Compliance

“Export 101” training videos are available to help exporters understand the rules governing the export process and to promote awareness by the Department of Commerce. These videos include four BIS-specific export control training videos. These videos are brought to you by the Census Bureau’s Foreign Trade Division and the International Trade Administration. Please visit the Bureau of Census Foreign Trade Division website to watch the entire series of Export 101 videos or go direct to the BIS-specific training videos:

Exporting Commercial Items: ECCNs and EAR99

The Commerce Control List and Self-Classification

Exporting EAR99 Items

Embargoes and Sanctions

Return to BIS Training Room Main Page

https://www.bis.doc.gov/index.php/compliance-a-training/export-administration-regulations-training/online-training-room?id=284