EAR Overview

Export Administration Regulations

What is EAR?

The Export Administration Regulations (EAR) are federal regulations that control the export and re-export of most commercial items, including dual-use items that have both civilian and military applications. EAR is administered by the Bureau of Industry and Security (BIS) within the U.S. Department of Commerce.

EAR applies to U.S. companies and individuals who export, re-export, or transfer items, software, or technology that are subject to export controls. The regulations are designed to protect national security, foreign policy, and economic interests while facilitating legitimate trade.

Key EAR Concepts

Dual-Use Items

Items that have both civilian and military applications, including software, technology, and equipment that could be used for weapons development or other restricted purposes.

Export Control Classification

The process of determining the Export Control Classification Number (ECCN) for items, which determines the level of export control and licensing requirements.

Country Chart and End-Use Controls

Restrictions based on destination country and intended end-use, including restrictions on certain end-users and end-uses that pose national security concerns.

De Minimis Rule

The percentage of U.S.-origin content in foreign-made items that determines whether the item is subject to EAR controls when re-exported.

Export Control Classification Number (ECCN)

ECCN Categories

Category 0: Nuclear Materials

Nuclear materials, facilities, and equipment

Category 1: Materials, Chemicals

Materials, chemicals, microorganisms, and toxins

Category 2: Materials Processing

Materials processing, equipment, and related technology

Category 3: Electronics

Electronics, computers, telecommunications, and information security

Category 4: Computers

Computers, telecommunications, and information security

Category 5: Telecommunications

Telecommunications and information security

Category 6: Sensors and Lasers

Sensors and lasers

Category 7: Navigation and Avionics

Navigation and avionics

Category 8: Marine

Marine technology

Category 9: Propulsion Systems

Propulsion systems, space vehicles, and related equipment

Licensing Requirements

License Exceptions

  • TMP - Temporary imports, exports, and re-exports
  • RPL - Servicing and replacement parts
  • GOV - Government and international organization end-uses
  • GFT - Gift parcels and humanitarian donations
  • BAG - Baggage and personal effects

License Types

  • Individual validated licenses
  • Special comprehensive licenses
  • Project licenses
  • Technology licenses
  • Service licenses

EAR Compliance Requirements

Export Control Compliance Program

  • Written export control policies and procedures
  • Designated export control officer
  • Regular training and awareness programs
  • Internal audit and monitoring procedures
  • Record keeping and documentation requirements

Screening and Due Diligence

  • End-user and end-use screening
  • Denied party list screening
  • Red flag identification and investigation
  • Know your customer (KYC) procedures

Record Keeping and Reporting

  • Export transaction records (5-year retention)
  • License application and approval documentation
  • Screening and due diligence records
  • Training and compliance program documentation

Penalties and Enforcement

Criminal Penalties

  • Up to $1 million per violation
  • Up to 20 years in prison
  • Criminal forfeiture of assets

Administrative Penalties

  • Up to $300,000 per violation
  • Denial of export privileges
  • Suspension or revocation of licenses

EAR Compliance Implementation

1

Risk Assessment

Assess current export activities and identify potential compliance risks and gaps.

2

Policy Development

Develop comprehensive export control policies and procedures tailored to your business.

3

Training and Awareness

Implement training programs for all personnel involved in export activities.

4

System Implementation

Implement screening systems, record keeping, and monitoring procedures.

5

Ongoing Compliance

Maintain compliance through regular audits, training, and program updates.

Benefits of EAR Compliance

  • Legal compliance and risk mitigation
  • Enhanced business reputation and credibility
  • Access to global markets and opportunities
  • Reduced risk of penalties and enforcement actions
  • Improved supply chain security and due diligence

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