HOST: Do you know your Export Control Classification Number, or ECCN?
If you ship items abroad. you may encounter this question
at some point in the process of your export transaction.
You may ask: Does my product have an ECCN?
What is it used for?
Where do I find the ECCN?
And why won't my freight forwarder ship my package without one?
And what does EAR99 mean?
These are all questions you may have.
Hi, my name is Clariebel,
and I work for the Bureau of Industry and Security
at the U.S. Department of Commerce.
The following clip is a sample
of the type of calls our agency often receives from exporters.
I hope it will offer some basic information about ECCNs and EAR99
and help you get started in reviewing your transaction.
Let's begin.
[telephone rings]
COUNSELOR: Hello, Exporter Counseling.
This is Douglas speaking. How may I assist you?
CALLER: Hi. I just spoke to my freight forwarder,
and they're telling me
that I need to give them some sort of ECC number
to ship my package.
I've never done this before. Can you help me?
COUNSELOR: Sure.
Your forwarder probably is looking
for what's called an Export Control Classification Number,
commonly referred to as an ECCN.
ECCNs are found on the Commerce Control List,
which is a part of the Export Administration Regulations.
Are you exporting commercial items,
or is this item designed for military use?
CALLER: It's a commercial item. Why are you asking that?
COUNSELOR: Here at the U.S. Department of Commerce,
we regulate the export and reexport of most commercial items.
This includes products such as clothing, building materials,
circuit boards, automotive parts, and retail software packages.
Defense articles, on the other hand, and services
are under the jurisdiction
of the Department of State's Directorate of Defense Trade Controls.
We want to be sure you're speaking with the right agency.
CALLER: I've been in the export business for almost 20 years,
and I've never been asked this information before.
I thought the freight forwarder was supposed to take care of all of this.
Isn't that what I pay them for?
COUNSELOR: Well, as the exporter, you are responsible for providing
the correct export control information to your forwarder.
Your forwarder asks for this information,
and that's just to ensure
that you know the correct authorization for your export.
The forwarder needs this information
to file complete and correct shipping documentation
in the Automated Export System record.
CALLER: I see.
Does every commercial product have an ECCN?
COUNSELOR: Well, no. In fact, about 90% of exports by value
are shipments of items that are not on the Commerce Control List.
The vast majority of the exports subject to Commerce jurisdiction
are of items designated as EAR99.
CALLER: What does EAR99 mean?
COUNSELOR: EAR99 is a basket category designated to cover most commercial items
that are exported out of the United States.
If your item is not described in an ECCN on the Commerce Control List,
then it is designated as EAR99.
EAR99 items generally consist of low-technology consumer goods--
things like clothing, jewelry, artwork, and household goods.
Those are EAR99.
In most instances, EAR99 items can be exported
to almost all destinations
without an export license from the Department of Commerce.
There are some exceptions.
CALLER: So my item will be specifically described in a particular ECCN
or it will be EAR99?
COUNSELOR: That's correct.
CALLER: It sounds like I've got an EAR99 item.
Then it's smooth sailing from here.
COUNSELOR: Well, that's one way to look at it.
In general, if you determine that your item is EAR99,
you may proceed with your shipment,
provided that the export is not going to an embargoed country,
a prohibited end-user, or for a prohibited end-use.
Screening the transactions for these end-user and end-use based reasons
is an important part of your due diligence as an exporter.
CALLER: Okay, that makes sense.
Now, I already have my product's Schedule B number.
Will that tell me if my product has an ECCN or is EAR99?
COUNSELOR: Well, it's good you have your Schedule B number,
but it's not going to help us here,
as Schedule B numbers do not correspond to ECCNs.
The two systems were developed for different purposes.
CALLER: What are they used for?
COUNSELOR: Well, Schedule B numbers are used to collect statistical data
on exports from the United States,
whereas ECCNs are used to determine
Department of Commerce export licensing requirements.
ECCNs indicate an item's reason for control
such as national security, missile technology,
nuclear non-proliferation, crime control
and anti-terrorism, just to name a few.
CALLER: Well, I can see why they call it
Export Control Classification Number!
I can see that this export control business is pretty important to know about.
COUNSELOR: Yes, in fact, without knowing
the correct ECCN or EAR99 designation for your product,
and without properly screening your transaction,
you and your forwarder could export in violation of U.S. export laws.
CALLER: That's the last thing I want to happen.
I want to get this right.
Now, tell me what I need to do to get this shipment out ASAP!
COUNSELOR: Well, the first step is to classify the item
according to the specific technical characteristics
described under the ECCN entries on the Commerce Control List.
If it is described on the list, it will have an ECCN.
Otherwise it will be EAR99.
Once you have your ECCN
or determine that your item
is not on the Commerce Control List and falls into the EAR99 designation,
we can help you determine if an export license is required
to send your item to a particular destination.
CALLER: I'm looking forward to getting started.
Let me get my product's spec sheets, and I'll call you back.
COUNSELOR: Great. Just to go over what we covered--
Commercial items are under the jurisdiction of the U.S. Department of Commerce.
We maintain the Commerce Control List,
which identifies items by Export Control Classification Numbers, or ECCN.
If your item is not on the Commerce Control List
and does not have an ECCN,
it is classified as EAR99.
EAR99 items generally consist of low-technology consumer goods
and only require a license in certain situations.
These include if your proposed export of an EAR99 item
is to an embargoed country,
to an end-user of concern
or in support of a prohibited end-use,
in which case you may be required
to obtain a license.
I look forward to helping you further.
Just ask for Douglas when you call back.
CALLER: Wow, I didn't realize that the government could be so helpful.
HOST: I hope this scenario helped to explain the difference
between ECCNs and EAR99
and the importance of not only determining your product's classification,
but also screening the transaction
for end-user, end-use and other prohibited activities.
My colleagues and I at the Bureau of Industry and Security
are here to assist you.
If you have further questions
or need additional guidance along the way, please call us.
Thank you and have a great day.