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EXPORT ADMINISTRATION REGULATIONS EAR CLASSIFICATION PROCESS

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... the type of technology or science being developed on the 'Commerce Control ... OSU is subcontractor on a non-military project that is funded by USAID. ... – PowerPoint PPT presentation

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Title: EXPORT ADMINISTRATION REGULATIONS EAR CLASSIFICATION PROCESS


1
EXPORT ADMINISTRATION REGULATIONS
(EAR)CLASSIFICATION PROCESS
2
THE EAR PROCESS IF EAR APPLIES, WHAT NEXT?
  • STEP 1 PI must classify the type of technology
    or science being developed on the Commerce
    Control List by determining the ECCN Export
    Control Classification Number
  • http//w3.access.gpo.gov/bis/ear/ear_data.html

3
COMMERCE CONTROL LIST
  • Contains lists of items subject to licensing
    authority of BIS
  • Each entry is called Export Control
    Classification Number (ECCN)
  • (Five alpha-numeric characters)
  • Items listed in terms of technical parameters

4
ECCN BREAKDOWNEXAMPLE 3D101
  • 3 Category
  • D Product Group
  • 1 Reason for Control
  • 0 Relates to Reasons for Control
  • 1 Used for Numerical Ordering

5
TEN CATEGORIES IN THE CCL (0 - 4)
  • 0. Nuclear Materials, Facilities Equipment
    Miscellaneous
  • 1. Materials, Chemicals, Microorganisms
    Toxins
  • 2. Materials Processing
  • 3. Electronics Design, Development and
    Production
  • 4. Computers

6
TEN CATEGORIES IN THE CCL(5 9)
  • 5. Telecommunications Information Security
  • 6. Sensors and Lasers
  • 7. Navigation and Avionics
  • 8. Marine (ships vessels)
  • 9. Propulsion Systems, Space Vehicles and
    Related Equipment

7
PRODUCT GROUPS
  • A Equipment, Assemblies Components
  • B Production, Test Inspection Equipment
  • C Materials (raw)
  • D Software
  • E Technology

8
I found the ECCN!
9
FINDING THE ECCN
  • Review general characteristics (technical
    parameters) of items to arrive at Category and
    Product Group
  • Match characteristics of item with ECCN and
    subparagraph
  • HINT Check the CCL alphabetical index

10
GENERAL PROHIBITIONS, PART 736
  • STEP 2 Check General Prohibitions
  • 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)

11
GENERAL PROHIBITIONS 1-3
  • Apply only if your item is classified under an
    ECCN
  • Export and re-export of controlled items to
    listed countries
  • Re-export and export from abroad of foreign-made
    items incorporating more than a de minimis amount
    of controlled U.S. Content
  • Re-export and export from abroad of the foreign
    produced direct product of U.S. technology and
    software

12
EAR 99-what???
13
GENERAL PROHIBITIONS 4-10
  • Apply if your item is classified under a
    specific ECCN or is EAR 99 (items not found on
    the CCL- usually no license required)
  • Engaging in actions prohibited by a denial order
    (check denied persons/entities lists)
  • Export or re-export to prohibited end-uses or end
    users (e.g., chemical and biological warfare)
  • Export or re-export to embargoed or special
    destinations
  • Support of proliferation activities

14
GENERAL PROHIBITIONS, Continued
  • Intransit shipments and items to be unladen from
    vessels or aircraft
  • Violation of any order, terms, and conditions
  • Proceeding with transactions with knowledge that
    a violation has occurred or is about to occur
  • If Prohibitions dont apply, look for Exceptions

15
LICENSE OR EXCEPTION UNDER EAR?
  • STEP 3 Try to find the exception!
  • Using the CCL check 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

16
LICENSE OR EXCEPTION UNDER EAR, Continued
  • 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)

17
REASON FOR CONTROL
  • AT Anti-Terrorism
  • CB Chemical Biological weapons
  • CC Crime Control
  • CWChemical Weapons Convention
  • EI Encryption Item
  • FCFirearms Control
  • MTMissile Technology
  • NPNuclear Proliferation
  • NSNational Security
  • RSRegional Stability
  • SISignificant Item
  • SSShort Supply
  • UNUnited Nations
  • XPComputers

18
COMMON LICENSE EXCEPTIONS
  • LVS Limited Value Shipments
  • Pertains to Country Group B
  • Identified by LVS (value) on the CCL (e.g.
    LVS 5000)
  • GBS Group B Shipments
  • Pertains to Country Group B
  • Identified by GBS Yes on the CCL
  • CIV Civil End-Users
  • Pertains to Country Group D-1
  • Identified by CIV Yes on the CCL
  • National Security controlled items only

19
COMMON LICENSE EXCEPTIONS,Continued
  • TSR Restricted Technology and Software
  • Pertains to Country Group B
  • Identified by TSR Yes on the CCL
  • National Security Controlled Items only
  • Written Assurance Letter can be written stating
    software will not be released to nationals of
    certain country groups (e.g. D1 and E2)

20
COMMON LICENSE EXCEPTIONS,Continued
  • 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

21
DEEMED EXPORT EXCEPTIONS
  • CIV Civil End Use
  • Applies to deemed exports for 3E001/3E002
    technology
  • Requires Foreign National Review (FNR)
  • TSR Technology/Software Under Restriction
  • Applies to technology/software under national
    security only for country group B nationals
  • Requires Letter of Assurance
  • APP Computers
  • Applies to deemed exports for 4D001/4E001
    software and technology. (FNR required)

22
CLASSIFICATION EXERCISE
  • Find the ECCN and Reasons for Control for
    the following items - Start at beginning of
    Category and Product Group and move forward.
    Match technical parameters/descriptive text.
  • Integrated circuits radiation hardened to
    withstand a total dose of 5x103 Gy (Si) or
    higher.
  • Field programmable logic devices with a toggle
    frequency of 150 Mhz.

23
CLASSIFICATION EXERCISE
  • You have a PI who is working on a project
    with a colleague who lives in the Peoples
    Republic of China. As part of the research, the
    PI must send his colleague 20 microprocessors
    manufactured from a compound semiconductor and
    operating at a clock frequency of 50 Mhz. Is a
    license necessary? If yes, is there an exception
    available?
  • First Find ECCN
  • Second Check Reasons for Control (license
    requirements)
  • Third Check Country Chart-look for X
  • Fourth If X, then a license is required
    unless----
  • Fifth Look for exception if none available,
    license IS REQUIRED

24
EXERCISE Part 1
  • OSU is subcontractor on a non-military project
    that is funded by USAID. The project will take
    place in Iraq and involves geographic mapping.
    Computers, software, and GPS units must be
    shipped to Iraq for the project and will not be
    returned to the U.S. Iraqi civilians as well as
    the PIs will be operating the equipment. The
    following items will be shipped
  • Dell computers ECCN 4A994
  • Windows Servers 2003 Standard Edition
  • ECCN 5D992.b.1
  • Trimble GPS units ECCN 7A994

25
EXERCISE Part 2
  • What are some of the issues?
  • What are the license requirements for each piece
    of equipment?
  • Are there any license exceptions?
  • Is a license required to ship?
  • If an Iraqi researcher (in the U.S.) was working
    with the development, production, or use of the
    technology associated with 7E994, would a deemed
    export license be required?

26
Kay Ellis Oklahoma State University (405)
744-9995 kay.ellis_at_okstate.edu http//www.research
.okstate.edu
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