Title: EXPORT ADMINISTRATION REGULATIONS EAR CLASSIFICATION PROCESS
1EXPORT ADMINISTRATION REGULATIONS
(EAR)CLASSIFICATION PROCESS
2THE 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
3COMMERCE 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
4ECCN BREAKDOWNEXAMPLE 3D101
- 3 Category
- D Product Group
- 1 Reason for Control
- 0 Relates to Reasons for Control
- 1 Used for Numerical Ordering
5TEN 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
6TEN 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
7PRODUCT GROUPS
- A Equipment, Assemblies Components
- B Production, Test Inspection Equipment
- C Materials (raw)
- D Software
- E Technology
8I found the ECCN!
9FINDING 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
10GENERAL 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)
11GENERAL 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
12EAR 99-what???
13GENERAL 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
14GENERAL 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
15LICENSE 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
16LICENSE 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)
17REASON 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
18COMMON 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
19COMMON 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)
20COMMON 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
21DEEMED 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)
22CLASSIFICATION 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.
23CLASSIFICATION 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
24EXERCISE 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
25EXERCISE 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?
26Kay Ellis Oklahoma State University (405)
744-9995 kay.ellis_at_okstate.edu http//www.research
.okstate.edu