ECCN Classification and Export Compliance: Ways to Do It More Efficiently
Many of the US exporters and organizations involved in international trade are aware of the importance of following US federal regulations regarding exports of goods and technology.
However, achieving compliance is not that easy and straightforward. In the absence of formal procedures that are carefully crafted with the various steps of a successful program, organizations can immediately find themselves in breach of regulations. Since it is about national security, no one can simply walk away from the program and the written guidelines and leave compliance to fate. After all, export control regulations were developed for the protection of national security interests.
What is an ECCN and why is it important?
The ECCN (ie Export Control Classification Number) must be assigned to products, software and technology prior to export and transfer. The ECCN for any given product is listed in specific categories of the Trade Control List (CCL) and may vary depending on the functionality, characteristics and technical parameters of the product. In addition, the ECCN classification helps to identify if the product or technology requires an export license or if there are any license exceptions. Each of the categories covers multiple items in the CCL, but items not listed in the CCL receive an ECCN of “EAR99”.
Conventional methods of ECCN determination
How to determine the ECCN? Well the three main methods are:
1. Identify the source. You can ask the manufacturer, developer or producer for the ECCN of the item. Since the ECCN is subject to change, you should make sure you have the current one.
2. Sorting it out on your own. For that, you will need a deep technical understanding of the article’s features, content, and functionality. Also, you should be familiar with the format and structure of the CCL.
3. Submit a request to BIS. With the help of the CIN or company identification number and PIN or personal identification number, you can submit an official classification request to the Department of Commerce – Bureau of Industry and Security (BIS).
As a next step, you will need to know whether exporting the product / technology requires an export license or not. The ECCN you determined is the key to the next step.
ECCN determination methods
Technology has literally transformed the way the world works, especially through automation, speed, and precision.
In particular, business compliance consultants have made life easier for businesses and organizations. In fact, the development of software for the ECCN and HTS classification has accelerated the performance of these companies.
To determine controls, it will first be necessary to classify the product, technology or software according to the EAR and ITAR regulations. Therefore, software that enables this procedure quickly and efficiently is of great help.
Recently, software vendors have introduced web-based solutions for companies that have a limited budget and cannot hire a consultant or an expert. Powered by such web-based software, exporters and importers can easily identify items after answering a certain number of questions. Not only that, the ranking results are stored for record retention purposes. Users of the software will access information or commercial content prepared in the form of definitions, tariff rates, special notes, country charts, license requirements and exceptions, etc.
In general, web-based solutions strengthen the performance of an organization, helping it increase its efficiency with unusual fluctuations. As a result, companies will not experience indefinite delays in searches, communications, rankings, etc.
