By definition, an export is any item that is shipped from the United States to any foreign location, whether it is sent to an individual or an organization. By “shipped”, it is understood that said item may be sent by regular mail, air mail, or by ship, but also hand-carried on a plane by you or someone else. This also includes software and technology that is sent via e-mail or downloaded from a website. So, you can see that there are many different types of “exports”.
Now, in order to export a product, you’ll need to comply to Export Administration Regulations, which are enforced by The Bureau of Industry and Security of the US Department of Commerce.
Still, the question remains: do you need an export license? Luckily, the Bureau of Industry and Security requires export license application on a small percentage of US exports based on four criteria:
- End use
- End user
- Destination
- And the product’s technical characteristics
So, in order to determine whether you will require a license for your product, you will have to ask yourself these four questions:
- How will your product be used?
- Who will receive and use your product?
- Where is your product going?
- What are you exporting and what parts may be extracted from it?
The most important question is the first: what are you exporting? This is one of the factors that determines whether you’ll need a license. You’ll need to classify your product. And in order to do so, you’ll need to understand Export Control Classification Numbers (ECCN).
The Bureau’s Commerce Control List has a list of ECCNs. First, you’ll have to determine the category in which your product fits. Each category provides the first digit of the ECCN. For example, if your product falls into the category of “electronics”, your first digit is “3”. Next, you dig a little deeper into the category to find your product. If your product is listed in the CCL, you will see the export controls that are placed on your product. If it is not on the list, you’ll need to investigate bit further. Your product may be controlled by another federal agency.
But this is only the tip of the iceberg. If you wish to know more about export controls and the complicated regulations that govern this activity, Import Export Geeks has the export controls training for you. With Import Export Geek’s basic entry level course you’ll learn not only about US export control regulations, but also other essentials like Commodity Jurisdiction (who controls your product), Export Control Classification Numbers, license requirements and exceptions, just to name a few.
If you want to export products, you need to be informed about export control regulations. And there’s no better way to do this than to take export compliance training.
Don’t try to figure it all out on your own. Sign up for Import Export Geek’s export control training today.
Image Credit: waferboard on Flickr