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.