One of the key elements in export compliance is the ECCN, or Export Control Classification Number. In order to determine if a license is needed for your exports it is first necessary to determine the ECCN for your commodity. As noted in previous posts, many exporters automatically enter EAR99 and NLR on shipping documents. This is a mistake unless you have done due diligence on your products.

Violations of the Export Administration Regulations, 15 C.F.R. Parts 730-774 (EAR) may be subject to both criminal and administrative penalties. Under the Export Control Reform Act of 2018 (50 U.S.C. §§ 4801-4852) (ECRA), criminal penalties can include up to 20 years of imprisonment and up to $1 million in fines per violation, or both. Violators may also be subject to the denial of their export privileges.

EAR99 indicates that a commodity is subject to Export Administration Regulations but is not specifically listed on the Commodity Control List (CCL). NLR states that no license is required.

ECCN can be determined by consulting with manufacturers of products, filing a classification request with BIS (Bureau of Industry and Security), or self classifying.

Don’t guess; confirm your ECCN. Here are a couple of easy to use resources:

https://www.bis.doc.gov/index.php/documents/regulations-docs/13-commerce-control-list-index/file

https://www.bis.doc.gov/index.php/export-control-classification-interactive-tool

Contact mitch@adhoclogistics.com for assistance.