What you need to know about export commodity control numbers

By Thomas Cook, American River International, LTD.

Export compliance is a serious responsibility, and knowledge of the EAR (Export Administration Regulations) is a primary area of focus. One slice of the EAR pertains to Export Commodity Control Numbers (ECCNs).

The Bureau of Industry and Security (BIS) offers substantial assistance in understanding the application of the EAR through promotional literature and their Web site (www.bis.doc.gov), from which much of this information was obtained.

The BIS has jurisdiction over the export and re-export of “dual-use” items (i.e., commodities, technology and software that have both military and civilian applications), and is responsible for advancing the national security, foreign policy, non-proliferation and economic interests of the United States.

Virtually all exports from the United States require some type of export authorization.

These fall into three broad categories:

Export Licenses, which require Commerce Department written authorization prior to shipment; License Exceptions, which do not require Commerce Department written authorization; and No License Required (NLR), for exports for which no license is required.

In order to ascertain whether an export license is required, a license exception is available, or no license is required, exporters first must classify the item(s) to be exported by determining the Export Control Classification Number (ECCN). Once the ECCN has been identified, the exporter can determine why BIS controls the product, which countries require an export license, and which license exceptions may apply.

An ECCN categorizes items based on the type of commodity, technology or software and their technical parameters. It is an alphanumeric designation (i.e., 1A984 or 4A001) used in the Commerce Control List (CCL) to identify items for export control purposes.
An ECCN is different from a Schedule B number, which is used by the Census Bureau to collect trade statistics. It is also different from the Harmonized Tariff System Nomenclature, which is used to determine import duties.

There are three recognized ways to determine an ECCN on the Commerce Control List (CCL):

Go to the source: Contact the manufacturer, producer or developer to see if they have a current classification number for the item. If the item has been exported in the past, they may know the ECCN.

Self-Classify: In order to classify your item against the Commerce Control List (CCL), you should begin with a review of the general characteristics of your item. This will usually guide you to the appropriate category on the CCL.

The CCL is divided up into 10 major categories. The first number of the ECCN indicates what the category is (i.e. 1 = materials, chemicals, “microorganisms” and toxins; or 4=computers). Each of the 10 categories is divided into five groups: A: Systems, Equipment and Components; B: Test, Inspection and Production Equipment; C: Materials; D: Software and E: Technology. This is the second digit of the ECCN.

Once the appropriate category and product group are identified, you should match the particular characteristics and functions of your item to a specific ECCN. If the ECCN contains a list under the “Items” heading, you should review the list to determine within which subparagraph(s) your item is identified.

At the end of each category, there is a designation of EAR99. EAR99 serves as a “basket” for items subject to the EAR that are not elsewhere controlled by any category in the CCL. If you are unable to find a specific listing for your item, and it is subject to the EAR, then it will fall in the heading “EAR99.” If this is where your product falls, then no license is required under most circumstances and you would indicate the designation NLR (No License Required) on your Shipper’s Export Declaration (SED). There are important limitations on the use of EAR99 which are described in General Prohibitions 4-10 of the EAR Part 736.

Official Request to BIS: If the first two procedures are non-conclusive, you may request an official classification from BIS using the electronic licensing system, SNAP-R (Simplified Network Application Process Redesign), or using the Multipurpose Application Form BIS-748P. The quickest way to request an ECCN is electronically through SNAP-R. You must obtain a PIN number prior to submitting an electronic request. For further information regarding SNAP-R and PINs, visit our Web site at www.bis.doc.gov or contact the Outreach and Educational Services Division at (202) 482-4811.

Form BIS-748P may be obtained by contacting BIS’ Form Request Service at (202) 482-3332. You may also fax your request for forms to (202) 219-9179. Please include your name, address, telephone number and specify which forms are needed. Exporters and their freight forwarders must exercise due diligence and reasonable care in their supply chain. Knowing the basics of ECCN application, as
put out by their regulations and explained in the promotional literature outlined above, is very important to being compliant and secure.

In This Issue

News, Trends & Analysis
New Items

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Supply Chain
Public-private partnerships:
Inviting others to the table

Keeping your cargo cool

Compliance Corner: What you need to know about export commodity control numbers

Supply Chain product review
Communication technologies

Features
Gateway at a glance – Latin America

U.S. domestic shipping looks ahead

Ports & infrastructure
East Coast ports and terminals moving dirt, doing deals

Port Product Review
Refrigeration technologies

Commentary
Difficult times create opportunities

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Final Say