The export process has spread its wings across countries. Unlike the earlier times, most of the traders export their products to countries crossing the international borders. Export is not confined within the same nation or continent. Today many companies located in the U.S. reach out to the most of the foreign destinations and export their products easily. This naturally increases the risk of potential violations of laws and regulations. Exporters should always be aware of their trade partners and end-users of their items. Without a proper export screening, no U.S. person or company should attempt an export of good/software/technology, or disclosure of a technical data to a foreign person. In this article, you will better understand the importance of export control classification number for each of the exportable product, software and technology.
What Do You Understand By ECCN and Its Importance:
The Export Control Classification Number (ECCN) is an alphanumeric designation of the product or technology that is being exported. This number is used by the U.S. government to identify the exported item for the export control purposes. The ECCN helps in categorizing the products and technology depending upon their nature, feature and type. After the identification of ECCN, you have to know the reasons for the control of the items like which of the product transactions need an export license based on the destination and which license exceptions can apply to the case. The process of exporting products or technical data from the U.S. is subject to EAR, ITAR or other agency export control regulations and would require an export license. Unless the export transaction qualifies for the “no license required” treatment, the license is necessary to be obtained from the respective licensing agency. The ECCN number has five core characters that denote the technology level involved in the design and manufacture of that item as well as the applicable reason for controls. The ECCN number should be obtained and thoroughly analyzed before the export process. Export control of the conventional defence objects as well as dual-use items and related technologies are regulated and enforced by the WA members.
The WA or Wassenaar Arrangement has 41 member states. Each of the participating state has its own export classification dual-use list; in the U.S. it is the Commerce Control List (CCL). CCL categories include nuclear materials, equipments, electronics, material processing, computers, telecommunication and information security, marine sectors, lasers and sensors, propulsion systems and more. The ECCN that is assigned to each of the product, software, material and technology helps the exporter to recognize whether the export license is necessary for the destination country, intermediate consignees and the receiving end-users.
If The Item Is Listed Not Under CCL:
If the export item is not under the jurisdiction of U.S Department of Commerce and is not listed under the Commerce Control List, it is denoted as the EAR99 –provided that the item is not under jurisdiction of another agency under another set of regulations, such as ITAR-. Many of the commercial products today are classified with EAR99 and they do not need a license for export. However, if you are planning to export EAR99 classified product, software or technical data to a sanctioned country or to a sanctioned end-user/customer, the exporters would be required to obtain an export license.
The export control restrictions are directly related to the features and functionalities of the products, materials, software and technology. As such, it is a very important step to assign the ECCN to each of the items. This process is known as export control classification process.