Export Administration Regulations (EAR) process

Research and Economic Development
MAY 28, 2013
John Jacobs
Classification Process
If EAR Applies, What Next?
The EAR Categorization Process
STEP 1: With the PI’s help, the Facility Security
Officer must classify the type of technology or
science being developed on the
Commerce Control List (CCL) by determining
the Export Control Classification Number (ECCN)
Commerce Control List
• Contains lists of items subject to licensing
authority of BIS
• Each entry has its own Export Control
Classification Number (ECCN)
• Five alpha-numeric characters example 3D
• Items listed in terms of technical parameters
ECCN Breakdown Example: 3D101
3 – Category
D – Product Group
1 – Reason for Control
0 – Relates to Reasons for Control
1 – Used for Numerical Ordering
Ten Categories In The CCL
(0 - 4)
• 0 - Nuclear Materials, Facilities & Equipment,
and Miscellaneous
• 1 - Materials, Chemicals, Microorganisms &
• 2 - Materials Processing
• 3 - Electronics Design, Development and
• 4 - Computers, are broken down into
Hardware and Software
Ten Categories In The CCL
(5 – 9)
5 - Telecommunications & Information Security
6 - Sensors and Lasers
7 - Navigation and Avionics
8 - Marine (ships & vessels)
9 – Aerospace and Propulsion Equipment
This represents the first number of the ECCN
Product Groups
A - Equipment, Assemblies & Components
B - Production, Test & Inspection Equipment
C - Materials (raw)
D - Software
E - Technology
• These are the only letters used within the
Finding The ECCN
• Review general characteristics
(technical parameters) of items to arrive at
Category and Product Group
• Match characteristics of item with ECCN and
• HINT: Check the CCL alphabetical index
General Prohibitions, Part 736
STEP 2: Check General Prohibitions,
there are 10
• Prohibit certain exports, re-exports, and other
conduct, without a license, license exception or
determination that no license is required
• General Prohibitions 1-10 apply to items having
a specific ECCN
• General Prohibitions 4-10 apply to items that
are EAR99 (not found on the CCL)
General Prohibitions 1-3
• Apply only if your item is classified
under an ECCN:
1. Export and re-export of controlled items to
listed countries
2. Re-export and export from abroad of
foreign-made items incorporating more than
a de minimis amount of controlled U.S. Content
3. Re-export and export from abroad of the
foreign produced direct product of
U.S. technology and software
General Prohibition Continued 4 - 7
Apply if your item is classified under a specific
ECCN or is “EAR 99”(items not found on the
CCL=usually no license required)
4. Engaging in actions prohibited by a denial order (check
denied persons/entities lists)
5. Export or re-export to prohibited end-uses or end users
(e.g., chemical and biological warfare)
6. Export or re-export to embargoed or special destinations
7. Support of proliferation activities
General Prohibitions Continued 8-10
8. In-transit shipments and items to be un-laden from
vessels or aircraft
9. Violation of any order, terms, and conditions
10. Proceeding with transactions with knowledge
that a violation has occurred or is about to occur
If Prohibitions don’t apply, look for Exceptions
License Or Exception?
STEP 3: Try to find the exception!
• Using the CCL, check for reasons for control: Look
at the “Reason for Control” section directly under
the category heading and License Requirements.
E.g.: Reason for control: NS, MT, AT
• Match specific controls to Country Chart column
• Look for an “X” in Commerce Country Chart
License Or Exception?
• If an “X” is present, look under the
“License Exceptions” category below the
“Control(s)” section
• If no license exception available, license must be
obtained (4-6 weeks to process)
Reasons For Control
• AT = Anti - Terrorism
• CB = Chemical & Biological
• CC = Crime Control
• CW = Chemical Weapons
• EI = Encryption Item
• FC = Firearms Control
• MT = Missile Technology
NP = Nuclear Proliferation
NS = National Security
RS = Regional Stability
SI = Significant Item
SS = Short Supply
UN = United Nations
SL = Surreptitious Listening
Common License Exceptions
LVS – Limited Value Shipments
o Pertains to Country Group B
o Identified by “LVS: $(value)” on the CCL
(e.g.: LVS: $5000)
• GBS – Group B Shipments
o Pertains to Country Group B
o Identified by “GBS: Yes” on the CCL
Common License Exceptions
• CIV – Civil End-Users
o Pertains to Country Group D-1
o Identified by “CIV: Yes” on the CCL
o National Security controlled items only
• TSR – Restricted Technology and Software
o Pertains to Country Group B
o Identified by “TSR: Yes” on the CCL
o National Security Controlled Items only
oWritten Assurance – Letter can be written stating software
will not be released to nationals of certain country
groups (e.g. D:1 and E:2)
Common License Exceptions
TMP - Temporary Exports and Re-exports
Tools of trade
Replacement parts
Exhibition and demo
Inspection and calibration
Assembly in Mexico
To US subsidiary, affiliate or facility in Country Group B
Beta test software
Return to US within 1 year
Deemed Export Exceptions
CIV: Civil End Use
o Applies to deemed exports for 3E001/3E002 technology
o Requires Foreign National Review (FNR)
• TSR: Technology/Software Under Restriction
o Applies to technology/software under national security only
for country group “B” nationals
o Requires Letter of Assurance
• APP – Computers
o Applies to deemed exports for 4D001/4E001 software
and technology. (FNR required)
Export Controls Officer [email protected]
Office Phone 704.687.1877

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