Descartes Visual Compliance Resources Center
Throughout years of experience and with the help of a wide range of resources available, we compiled a database of information that can help organizations like yours better understand international compliance requirements.Request Information
EAR99 is a designation on the BIS’ CCL. It acknowledges that an item is not on the CCL, but still subject to the EAR. EAR99 items can usually be exported without license, unless they are being exported to a sanctioned/embargoed country (such as Iran or North Korea), or a restricted/denied party.
If an item falls under the EAR or ITAR, a license is needed in order to export. Licenses are limited by time, value, or number of exports, and must be renewed upon expiry.
For items under the EAR, there are multiple categories of license exceptions. Should your organization’s goods qualify for these, you may not need an export license. The exceptions apply to limited cases, including public domain information, fundamental research, and educational information. If the items are on the CCL, and designated EAR99 (see below), they may not require a license unless they are being exported to an embargoed country or a restricted party.
For items on the USML, there are countries that may be exempt from needing licenses. Broad USML exemptions are largely blocked by the United States government in consideration of national security. However, there have been exemptions made for scientific research, and smaller scale exemptions arising from treaties in the past.
Should your organization determine that your exports are covered by either the EAR or ITAR, you must either apply for the appropriate license, determine whether they come under the purview of an exemption (ITAR) or determine if it is possible to get an exception (EAR).
Organizations engaging in international trade and exports are responsible for complying with export regulations and controls. Companies are still subject to export controls and the laws governing them regardless of their awareness of them.
Having a solution in place that assists organizations with helping to determine export classifications, as well as managing licenses, where required, is a good step in the direction towards being export compliant.
The International Traffic in Arms Regulations (ITAR) is enforced by the United States government via the United States Munitions List (USML). Items on the USML are defense and military-related goods and technology, and require a license or an exemption in order to be lawfully exported.
The Export Administration Regulations (EAR) are administered by the Bureau of Industry and Security (BIS). The EAR controls goods and technology that have commercial applications, but may also have military uses (i.e., dual use goods). Technology and goods are controlled by the EAR for a variety of reasons, including anti-terrorism, national security, foreign policy, and nuclear proliferation. These goods similarly require licenses, or exceptions, to be lawfully exported.
In the United States, there are three primary U.S. government bodies that regulate exports:
- The Bureau of Industry and Security (BIS) regulates goods and technology that could potentially have dual-use military applications via the Export Administration Regulations (EAR). Items are regulated by the BIS through the Commerce Control List (CCL), which assigns an Export Control Classification Number (ECCN) to each item that appears on it;
- The Directorate of Defense Trade Control (DDTC) uses the International Traffic in Arms Regulation (ITAR) to control military goods and services that are listed on the United States Munitions List (USML), and
- The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) enforces economic and trade sanctions on specific countries and individuals.
Additionally, other countries and international organizations, such as the European Union, have their own departments enforcing export controls aligned with their policies and goals.
Governments around the world control exports for many reasons, including preventing controlled technology or dual-use goods from falling into the wrong hands. Exports are also regulated to advance foreign policy objectives, and to further economic and trade goals.
This varies from organization to organization. It depends on the location, or locations, in which a business operates, where they export, the nature of the products, technologies, and services, and the various parties involved with the transaction.
Some of the more common lists organizations screen against are:
- Export-related restricted, denied and blocked persons lists, such as the Department of Commerce Denied Persons, the Department of State Designated Terrorist Organizations, the Department of State Arms Export Control Act Debarred Parties, and the Weapons of Mass Destruction Trade Control Designations lists.
- Sanctions programs-related blocked persons lists, including the U.S. Treasury Department’s Specially Designated Nationals and Blocked Persons, Foreign Sanctions Evaders and Sectoral Sanctions Identifications Lists, and the United Nations Consolidated List.
- General Services Administration lists help organizations that have government contracts (i.e., SAM and EPLS) search multiple U.S. General Services Administration Lists of Parties to help identify those (e.g., suppliers and vendors) excluded from receiving Federal contracts.
- Law enforcement-related wanted persons lists, such as the FBI Ten Most Wanted Fugitives, FBI Most Wanted Terrorists, Department of Homeland Security Investigations Most Wanted, U.S. Immigration and Customs Enforcement and Removal Operations Most Wanted, and the U.S. Secret Service Most Wanted List, to name just a few.
- Politically Exposed Persons and Office of Inspector General Lists.
- International Terrorist, Blocked Person, Wanted, and Entity Lists, such as the European Union Consolidated List, Interpol Recently Wanted, OSFI Consolidated Lists, HM Treasury Consolidated List, and additional international lists from other countries, including Australia and Japan.
As mentioned already, organizations should pick the lists it screens against based on the specific needs of the business. This is an area in which Descartes Visual Compliance™ can assist.
The first step in most organizations’ export compliance program is typically Denied Party Screening, also known as Restricted Party Screening, among other names. Screening is the process of helping to ensure that organizations do not do business with any party on a government or international watch list.
People and entities on these watch lists face trade restrictions due to reasons ranging from terrorism, criminal activity, and money laundering, among others. Doing business with these entities can lead to criminal and civil penalties, large monetary fines, imprisonment, negative press coverage, a hit to an organization’s reputation, and a revocation of export privileges.
Our Denied Party Screening FAQ page goes into greater depth about denied party screening, and related obligations.