Export Controls: Classifying Your Item

Summary

The video script outlines the process for determining the export control classification number (ECCN) for products subject to the Export Administration Regulations. It explains that ECCNs are found in the Commerce Control List and provides three methods for obtaining an ECCN: self-classification, asking the manufacturer, or submitting a request to the Bureau of Industry and Security. The script also details how to self-classify by understanding the structure of an ECCN and using the Commerce Control List, and mentions the availability of a decision tree tool on the Bureau's website. It advises on what to do if self-classification is not successful and highlights the importance of knowing the ECCN for export license requirements.

Takeaways

• 📦 Determine the classification of the item you want to export by identifying the proper Export Control Classification Number (ECCN).
• 🔍 The ECCN is essential for navigating the Export Administration Regulations (EAR).
• 📋 HTS code and Schedule B number do not help in determining the ECCN.
• 🌐 All ECCNs are found in the Commerce Control List on the Bureau of Industry and Security (BIS) website.
• 🔧 There are three ways to determine the ECCN: self-classify, ask the manufacturer, or submit a classification request to BIS.
• 🔍 Understand the structure of an ECCN and the technical parameters of your item before starting the self-classification process.
• 🔡 An ECCN is a 5-character alphanumeric code, with the first character representing one of the ten categories in the Commerce Control List.
• 🛠 If your items are not specifically described in the Commerce Control List, they likely fall into the basket category called EAR99.
• 🌲 BIS has a decision tree tool on its website to assist with self-classifying items.
• 📄 The commodity classification process takes on average two to four weeks, and you can include up to six line items per request.

Q & A

What are the Export Administration Regulations (EAR)?

The Export Administration Regulations are a set of rules that govern the export of goods and technologies from the United States. They are designed to ensure that exports do not pose a risk to national security or foreign policy interests.

What is an Export Control Classification Number (ECCN)?

An ECCN is a five-character alphanumeric code used to classify items for export control purposes under the EAR. It helps determine the regulatory requirements for exporting a specific item.

Why can't an ECCN be determined based on the Harmonized Tariff Schedule (HTS) code or Schedule B number?

The HTS code and Schedule B number are used for customs purposes and do not provide the necessary technical details required for export control classification under the EAR.

Where can I find the Commerce Control List (CCL)?

The CCL can be found on the Bureau of Industry and Security (BIS) website by navigating to the 'Regulations' section from the menu bar and selecting 'Export Administration Regulations'.

What are the three methods to determine an ECCN for an item?

The three methods to determine an ECCN are self-classification, asking the manufacturer, or submitting a classification request to the BIS.

What does the first character of an ECCN represent?

The first character of an ECCN is a number from 0 to 9, representing one of the 10 broad categories in the CCL.

What does the second character of an ECCN signify?

The second character is a letter from A to E, indicating the type of item or product group within the category.

What is the 'EA r99' category in the CCL?

The 'EA r99' category is a basket category for items that are subject to the EAR but not specifically described in the CCL. Many consumer goods are designated as EA r99.

What is the purpose of the BIS decision tree tool?

The BIS decision tree tool assists exporters in self-classifying their items by guiding them through the process of determining the correct ECCN.

How long does the commodity classification process with BIS take on average?

The commodity classification process with BIS takes on average two to four weeks.

What is a SNAP-R account, and why is it needed for submitting a classification request to BIS?

A SNAP-R account is an online system used for submitting license applications and other requests to BIS, including commodity classification requests.

Outlines

00:00

📚 Understanding Export Control Classification Numbers (ECCNs)

This paragraph explains the process of determining the export control classification number (ECCN) for products subject to the Export Administration Regulations (EAR). It clarifies that while the Harmonized Tariff Schedule (HTS) code and Schedule B number are essential for import purposes, they do not help in identifying an ECCN. The speaker guides the audience to the Bureau of Industry and Security (BIS) website to find the Commerce Control List (CCL) and suggests three methods for determining the ECCN: self-classification, asking the manufacturer, or submitting a classification request to BIS. The structure of an ECCN is also explained, highlighting its 5-character alphanumeric code that includes a category number, a letter indicating the type of item, and sequential characters for different items within the category and product group. An example of classifying diesel engines for export to Mexico is provided, illustrating the step-by-step approach to finding the correct ECCN in the CCL.

05:00

🛂 Navigating the ECCN Determination and Export Licensing Process

The second paragraph delves into the intricacies of the ECCN determination process, offering insights into self-classification and the use of BIS's decision tree tool for assistance. It also discusses the option of contacting the manufacturer for their knowledge on the ECCN, especially if they have prior export experience. The paragraph further explains the process of submitting an online classification request to BIS through the SNAP-R system, which is also used for license applications. The average time frame for the commodity classification process is mentioned as two to four weeks, with the possibility of including up to six line items per request at no cost. The speaker encourages viewers to watch a QuickStart guide for further steps on export controls and reassures that the Office of Exporter Services at BIS is available for any additional questions, emphasizing support for a successful exporting experience.

Keywords

💡Export Administration Regulations (EAR)

The Export Administration Regulations (EAR) are a set of rules that govern the export of commodities and technologies from the United States. In the video, EAR is central as it dictates the process for determining the classification of items for export. It is mentioned as the foundational framework within which the classification of export items must be determined.

💡Export Control Classification Number (ECCN)

An ECCN is a five-character alphanumeric code used to classify items for export under the EAR. It is described as the 'Rosetta Stone' for EAR, indicating its crucial role in the export process. The script explains that understanding an item's ECCN simplifies the rest of the export compliance process.

💡Harmonized Tariff Schedule (HTS) code

The HTS code is an internationally standardized system of names and numbers to classify traded products. The script mentions that while knowing the HTS code is important, it cannot be used to determine an ECCN, highlighting the distinction between trade classification and export control classification.

💡Schedule B number

A Schedule B number is used by the U.S. government to classify goods for export statistical purposes. Similar to the HTS code, the script points out that a Schedule B number does not help in determining an ECCN, underlining the need for specific export control classification.

💡Commerce Control List (CCL)

The CCL is a catalog of items subject to the EAR and is used to determine the ECCN. The script instructs viewers to find their ECCN within the CCL, which is available on the Bureau of Industry and Security (BIS) website, emphasizing its importance in the self-classification process.

💡Self-classification

Self-classification is the process where an exporter determines the ECCN of their item based on the CCL. The script provides guidance on how to self-classify, including understanding the structure of an ECCN and reviewing the item's technical parameters, as part of the export compliance process.

💡Bureau of Industry and Security (BIS)

BIS is an agency within the U.S. Department of Commerce that is responsible for enforcing the EAR. The script mentions BIS as the authority where one can submit a classification request if they are unable to self-classify or if the manufacturer is unhelpful.

💡EA r99

EA r99 is a 'catch-all' category on the CCL for items that are subject to the EAR but not specifically described elsewhere. The script uses EA r99 as an example to illustrate how items that do not fit into specific ECCN categories are classified.

💡Decision Tree Tool

The Decision Tree Tool is a resource provided by BIS to assist exporters in self-classifying their items. The script suggests using this tool on the BIS website to help navigate the classification process, especially when self-classification is challenging.

💡Snap-R account

A Snap-R account is necessary to submit classification requests and license applications to BIS. The script mentions this as a requirement for submitting an online request to BIS for classification help, indicating its importance in the formal request process.

💡License requirement

The script touches on the necessity to determine if an export license is required once the ECCN is known. This is a critical step in the export process, as it ensures compliance with the EAR and is mentioned as the next step after classification.

Highlights

Understanding the Export Administration Regulations (EAR) is crucial for classifying items for export.

Export Control Classification Numbers (ECCNs) are essential for identifying the regulatory status of exported items.

HTS codes and Schedule B numbers are not sufficient to determine an ECCN.

The Commerce Control List (CCL) is the primary resource for finding ECCNs.

Three methods exist for determining an ECCN: self-classification, asking the manufacturer, or submitting a request to the Bureau of Industry and Security (BIS).

Self-classification requires understanding the structure of an ECCN and the technical parameters of the item.

ECCNs are 5-character alphanumeric codes with each character representing specific product categories and groups.

Items not specifically described in the CCL may fall under the 'EAR99' category.

An example of classifying diesel engines for farm equipment involves determining the appropriate category and product group.

Reviewing the entire ECCN entry is necessary to ensure the item fits the parameters described.

If items are not controlled under a specific ECCN, they may be designated as 'EAR99'.

The BIS provides a decision tree tool on its website to assist with self-classification.

Manufacturers or producers may have knowledge of the ECCN if they have previously exported the item.

Submitting an online request to BIS for classification requires a SNAP-R account and is typically processed within two to four weeks.

Once the ECCN is known, determining export license requirements is the next step in the export process.

The BIS Office of Exporter Services is available for further assistance with export classification and regulations.

Transcripts

I've determined my products are subject

to the export administration regulations

know what the next step is to determine

the classification of the item you want

to export by classification I mean

identifying a proper export control

classification number or ECC n it's like

the Rosetta Stone for the export

administration regulations once you know

the classification the rest is simple

well simpler I know my HTS code and

Schedule B number does that help

unfortunately it's not possible to

determine an ECC n based on the HTS code

or Schedule B number so how do I get my

ECC in all ECC ends are found in the

Commerce control list which is available

on the Bureau of Industry and security

website by hovering the mouse over

regulations from the blue menu bar and

selecting export administration

regulations from the drop down menu

there are three ways to determine the

export control classification number you

can self classify ask the manufacturer

or submit a classification request to

the Bureau of Industry and security

before starting the self classification

process one needs to understand the

structure of an EC CN and the technical

parameters of the item as most ECC ons

are based on technical descriptions it

also helps you review the instructions

in part 738 of the EA are to learn how

to use the Commerce control list and

read ECC on entries an EC CN is a 5

character alphanumeric code the first

character is a number from 0 through 9

this number stands for one of the 10

broad categories in the Commerce control

list the second character is a letter a

through e that indicates the type of

item or product group consider the 3rd

4th and 5th characters as a sequential

listing of different items within the

category and product group if your items

are subject to the export administration

regulations but not specifically

described on the Commerce control list

it likely falls into a basket category

called EA r99

a lot of consumer goods are designated

EA r99 maybe it would be helpful if we

walk through an exemplar to well I have

a couple of diesel engines for farm

equipment that I'd like to send to

Mexico perfect the first step is

determine which of the 10 categories you

think the diesel engine would fall under

any ideas hmm not a clue that's

understandable let's take a look at the

categories category 9 covers propulsion

that ought to be a good start now that

we have a category we need to determine

the product group the engine would seem

to fit in the end item and equipment

grouping so it's likely to be in product

group a

now we can start reviewing ECC n entries

at the beginning of 9a of the Commerce

control list

here we go nine eight nine nine zero

diesel engines

well my engines are far below the

performance standards listed in a B or C

that's a great point in reviewing ECC

ends you must read through the entire

entry if the ECC n contains a list of

items controlled broken down into sub

paragraphs it's important to read

through these sub paragraph to determine

if your item fits the parameters of the

ECC n in this case we're looking at

subparagraphs A B and C since your

engines do not meet the technical

specifications under these sub

paragraphs that means your engines are

not controlled under ECC n9a nine nine

zero continue to check the remainder of

category 9a and any other applicable

categories and product groups if your

items are subject to the export

administration regulations but not

described in the Commerce control list

then they would be designated EA r99

makes sense I also have this cool

optical sight I want to send to my uncle

in Canada on first glance I don't see

any categories that look right if the

optical sight is subject to the e AR

then take a look at category zero that

includes miscellaneous items too looks

like it would be in product group a here

it is zero a nine eight seven well done

now you know the basics of how to self

classify an item the Bureau of Industry

and security has a decision tree tool on

its website to assist with self

classifying items by clicking on the

export or portal link from the homepage

on the exporter portal select decision

tree tools CCL order of review is the

first option on the list

the second way to get the e CCN is to

contact the manufacturer or producer of

the item if the manufacturer has

exported in the past they might know

that you CCN some companies have even

made their classifications available on

their websites what if I'm going nowhere

with self classifying or the

manufacturer has no idea you can always

submit an online request to the Bureau

of Industry and security to classify the

item for you to do this you will need a

snap our account this is the same system

used for submitting license applications

how long does that take the commodity

classification process takes on average

two to four weeks you can include up to

six line items per request and there is

no fee for a classification request once

you know your EC CN you're ready to

determine if you have an export license

requirement to export your products I

recommend watching expert controls a

QuickStart guide for those steps as

always the Bureau of Industry and

security office of exporter Services is

here to help please feel free to contact

us if you have any further questions

thank you and happy exporting

[Music]