Export Compliance

Dear Arnie,

Betty Sue is right, you always want to make sure you have all of your t’s crossed and your I’s dotted before you export. Following export compliance is crucial to maintaining a consistent export output.

The Export Administration Regulations, EAR, is the regulation you will want to comply with when exporting your camera. 

Determining the Export Control Classification Number (ECCN) for your product is one of the most important steps for exporting. The ECCN is a 6 digit alpha-number that tell us what the product is and why it is controlled. 

The ECCN along with the country, end-use and end-user will help you determine if a license is required to export your product.

After reviewing your specifications and consulting the Commerce Control List, (CCL) we have determined that your camera is controlled under EAR99. EAR99 is used to control items that are not found in the Commerce Control List and is generally used for low-level technology products and will not usually require a license.

But wait a minute; don’t get too excited just yet….there are still other steps you need to take even when exporting EAR99 products. Export compliance for your camera business is just getting started.

Embargoes and Sanctioned Countries

Now that you know your products is controlled under EAR99 you still have to determine if you are exporting to an embargoed or sanctioned country, to a prohibited end-use or a prohibited end-user. Betty Sue calls this-checking the “Bad Guy Lists”.

The list of embargoed and sanctioned countries can change so the best source is to check Supplement Number 1 to Part 740 to find a list of the Country Groups and review Country Group E. If you are shipping to any of the countries found on this list, give us a call and we can go from there.

Anytime you export the camera you should verify that the parties involved in the transaction are not considered parties of concern on the “Bad Guy Lists”. 

The Department of Commerce provides a great resource that allows you to check your parties at https://apps.export.gov/csl-search#/csl-search. 

If the companies you are doing business with come up in one of these list you should place your transaction on hold until you verify if the party you are doing business with is the same party that comes up on the list. 

Double Check Documents

There are several lists this resource checks and depending on the list it could mean that the export is prohibited, a license would be required or there is a red flag associated with this company. 

Be sure to document that you have performed this screening as part of your due diligence process by printing a copy of the results for your records.

Lastly, you have to ask yourself if the end-use is prohibited. Start out by going through the General Prohibitions (Part 736 of the EAR), the General Prohibitions will walk you through some of the things we just talked about and will refer you to Part 744 of the EAR to determine if your product is going to a prohibited end-use. 

Some of the prohibited end-uses include if your camera will be used for nuclear activities or for missile technology end-use but Part 744 will give you more details on this and other prohibited end-uses.

Conclusion

Now that we know your camera is going to France to Vogue Magazine for use in fashion shoots and we have screened all the parties involved, we can safely say that your camera does not need a license to export. 

Following export compliance for cameras and any product for that matter is a staple of exporting. We covered a bit but there is more to learn.

You can learn more about export compliance and much more as you grow your business by checking out our WORKBOOK & TRAINING so you can solve the riddle of the exporter and grow successfully!