Export Administration Regulations
What Are Export Administration Regulations?
Export Administration Regulations (EAR) control the export of commodities determined to be dual-use. Dual-use items refer to commodities and technologies that normally are used for civilian purposes but may also be used for military purposes. The specific regulations can be found in 15 CFR §730.
The EAR are administered and enforced by the Bureau of Industry and Security (BIS). Items controlled under the EAR are listed in the Commerce Control List (CCL), and identified by a unique Export Control Classification Number (ECCN). Prohibition of export or requirements for licensing are based on the classification of the item, the destination of export, the end user, and the end use of the item.
Export as defined by the EAR extends beyond the shipment of a commodity to a foreign country. Under the EAR an export can include a “deemed export” which is defined as the transfer of protected technology or information to a foreign destination or release of protected technology or information to a foreign person in the United States.
Other Federal Export Controls
The EAR is not the only set of regulations for export. The International Traffic in Arms Regulations (ITAR) control defense articles specifically designed for military end-use. These items are categorized in the United States Munitions List (USML). The ITAR is administered by the Directorate of Defense Trade Controls (DDTC). Other export controls include:
Export Control Classification For EAR
Once the Export Control Classification has been defined a determination can be made as to whether or not authorization is required. The following criteria in the transaction must be documented and reviewed:
- What is the export control classification of the article (item) or technology (documents, photos, technical data)?
- What is the final destination of the exported item?
- Who is the end-user or recipient of the technology transfer?
- What is the actual end-use of the item to be exported?
Screening all parties involved in the export process is very important. This includes parties involved in export, reexport, or in country transfer of goods. As a preliminary measure all parties should be vetted through the Consolidated Screening List. For the EAR this list includes the Denied Persons List, Unverified List, Entity List, and the Military End User List.
Export Compliance Program Requirements for EAR
- A top down commitment from company leadership to ensure provision of adequate program resources.
- A risk assessment process that identifies organizational vulnerabilities and develops mitigations.
- Documented procedures for export authorization that include determination of jurisdiction, classification, license determination and screening.
- Record keeping protocols in accordance with Part 752 of the Export Administration Regulations.
- Adequate training of individuals in the organization appropriate to their level of activity in the program.
- Auditing that regularly checks for level of effectiveness and inconsistencies of performance. This includes internal and external auditing.
- Procedures for corrective actions in the event of an export violation.
Export Compliance Consulting at CVG Strategy
CVG Strategy, LLC is recognized the world over as the premier provider of customized export compliance programs. This includes ITAR and Export Administration Regulations (EAR). We also can provide assistance with the Canadian Goods Program.
Our ITAR compliance consultants work with businesses of all sizes. We have the compliance and training programs to fit your exact needs. We even serve as an outsourced Export Compliance Officer for some clients, who don’t have the bandwidth to dedicate to the function but need it done on a part-time basis.
CVG Strategy’s ITAR Training Basics provides interesting and informative education that is targeted at improving export compliance programs.
We have provided top level training to business professionals for over a decade. Our classes can help you understand the basics workings of the International Traffic in Arms Regulations (ITAR) and Export Administration Regulations (EAR).