The first step when complying with export licensing regulations is to determine the appropriate license for your product. Products exported from the US require general or a validated export licenses depending on the product where it is going the end use, and the final user. The general license permits exportation of certain products that are not subject to EAR control with nothing more than a declaration of the type of product its value and its destination. The validated license, issued only on formal applications is a specific document authorizing exportation within specific limitations designated under the EAR.
The responsibilities of determining if a license is required rests with the exporter the steps necessary to determine the type of license required and /or if an item can be shaped are as follows:
The exporter is responsible for selecting the proper classification number as the Export Control Classification Number (ECCN) for the item to be exported. The ECCN leads to description in the Commerce Control List (CCL) which indicates the exportability status of the item.
The exporter must decide from the CCL if the items have end use restriction for example use in nuclear, chemical and biological weapons. The exporter must also determine if the product has a dual use, that is, if it can be used in both commercial and restricted applications.
The exporter is responsible for determining the ultimate end customer and ultimate end uses of the product, regardless of the initial buyer. This step includes carefully screening end users and end users of the product to determine if the final destination of the product is to an unapproved user or for an unapproved use. US laws require firms to avoid shipments if the firm knowledge that customers will use its products for illegal purposes or resell the product to unauthorized end users.
To illustrate suppose you are an exporter of shotguns and you are beginning the process of fulfilling orders from Argentina (20 inch barrel shotguns) Australia ( 23 inch and 26 barrels) and Sudan (26 inch barrels). The first step is to determine the proper Export Control Classification Number (ECCN) for the commodity to be exported. Each ECCN consists of five characters that identify its category, product group, type of control, and country group level. There are three general ways to determine a product’s ECCN:
1) If you the exporter of the product but not is manufacturer you can contact the manufacture or developer to see if that firm already has an ECCN.
2) Compare the general characteristics of the product to the Commerce Control List and find the most appropriate product category. Once the category is identified you go through the entire category and identify the appropriate ECCN by determining the product’s particular functions.
3) Request a classification from the BIS. The request must include the end use, end user and /or destination. The BIS will advise you whether a license is required or likely to be granted for a particular transaction. This type of request is known as an advisory opinion. An advisory opinion does not bind the BIS to issuing a license in the future since government may change before a license is actually ranted.
Illustration of Commerce Control List Requirements for ECCN 0A984
Shotguns barrel length 18 inches or over buckshot shot gun shells except equipment used exclusively to treat or tranquilize animals and except arms designed solely for signals flare or saluting use and parts n.e.s.
CC= Crime Control
FC = Firearms Convention
UN = Un sanctions
Reason for control: CC, FC, UN
FC applies to fire arms
FC Column, CC Column 1
CC1 applies to shotguns with a barrel length greater than or equal to 18in. but less than 24 in. or buckshot shotgun shells controlled by this entry regardless of end user.
CC Column 2
CC2 applies to shotguns with a barrel length greater than or equal to 24 in. regardless of end user.
CC Columns 3
CCS applies to shotguns with a barrel length greater than or equal to 24 in if for sale or resale to police or law enforcement
Rwanda, Serbia and Montenegro
UN applies to UN sanctions that ban shipments of all firearms regardless of type to countries.
List of Items Controlled
Unit: $ value
Related Controls: this entry does not control shotguns with a barrel length of less than 18 inches. These items are subject to the export licensing authority of the department of State.