The answers can be found in the readings, and the links in the attached files. I want you to take your time and utilize the resources available to you for this these questions. Answer in complete sent
Along with the pages contained in this module, make sure you read through these links (printing can be helpful so you can use as a resource):
https://www.ecfr.gov/cgi-bin/text-idx?mc=true&node=se15.2.734_13&rgn=div8#b/2
https://www.ecfr.gov/cgi-bin/text-idx?mc=true&node=se15.2.736_12&rgn=div8
CCL country chart https://www.ecfr.gov/cgi-bin/text-idx?c=ecfr&SID=2a578d2f4eb9cabb6487e2cc8137d665&rgn=div9&view=text&node=15:2.1.3.4.24.0.1.5.27&idno=15
The CCL
The CCL
Product Based Export Controls are Found in the Commerce Control List
The Commerce Control List contains much, though not all, of the information needed to determine if an item that is subject to the EAR is controlled (i.e., will require an export license). For some items subject to the EAR, the ECCN may also refer the user to another section of the EAR for further information as part of the determination whether a transaction party affects application of the control.
For items not subject to the EAR (i.e., items whose export is subject to control by a different USG agency), the CCL will not provide conclusive information as to a requirement for an export license, though it may contain notes under the otherwise applicable ECCN to indicate control by the other agency. For example, the CCL contains ECCNs that describe "defense articles" which require a license application to the Department or State,DDTC
The Commerce Control List (CCL) is published in the EAR as 15 CFR 774, Supplement1. (Links to an external site.) (Links to an external site.)Links to an external site.
Although the CCL is included in the paper version of the EAR, because the CCL is subject to change on short notice in the Federal Register, we recommend always accessing it on-line to help assure the information is current. This also has the advantage of being able to use the browser search ("find") feature to quickly locate information by key word (CTRL+f on a PC or ALT+f on a MAC), though care must be taken here to avoid misclassification. It is very important also to make sure your "finds" are in the correct category and product group. Finally, with Internet access, it costs nothing, whereas the paper publication is expensive.
15 CFR 738 (Links to an external site.) (Links to an external site.)Links to an external site. provides an explanation of the organization of the CCL, its relationship to the Commerce Country Chart (found in reading and resources) and provides step-by-step instructions on how to use the CCL to determine if an export license is required.
To more easily follow the CCL process, you should print out 15 CFR 738 and 15 CFR 774 Supplement 1 so you can refer to them as you read.
Locating the ECCN
Determining the CCL Category
There is no index of product names or descriptions for items within the CCL, so one has to understand and follow the organization of the CCL to determine if a particular product or material is addressed in the CCL.
As you can see from 15 CFR 738.2 (Links to an external site.) (Links to an external site.)Links to an external site., the CCL is organized into ten (10) numbered categories which broadly describe the type of commodity or product. This number forms the first character in the ECCN, as follows:
0—Nuclear Materials, Facilities and Equipment and Miscellaneous
1—Materials, Chemicals, "Microorganisms," and Toxin
2—Materials Processing
3—Electronics
4—Computers
5—Telecommunications and Information Security
6—Lasers and Sensors
7—Navigation and Avionics
8—Marine
9—Propulsion Systems, Space Vehicles and Related Equipment
The first step in determining if a particular product or material is listed in the CCL is to identify this number from the product characteristics.
Let's consider some examples of products, as might be described in a catalog or on a commercial invoice:
"Personal computer" – This is clearly Category 4, since it is a "computer" which is a specifically-named category.
"Bicycle helmet" – By process of elimination, you can determine that this must be Category 1 since it clearly would not fall under any other description.
"Police helmet" – By process of elimination, you can also determine that this must be Category 1 since it clearly would not fall under any other description.
"Weather radar" – Since "radar" does not appear on the category list, it is necessary to read further into the listings of the possible categories radar might belong. Categories 3 and 6 would appear to be possible categories for weather radar, and perhaps even Category 7 if the radar were of the type installed in aircraft.
How to proceed?
Finding the correct CCL category for "weather radar" will require careful attention. Let's begin with a simple word search.
Go to the on-line CCL (15 CFR 774 Supplement 1 (Links to an external site.) (Links to an external site.)Links to an external site.) and use your browser "find" feature (Ctrl+F) to search for "weather radar."
You will find "weather radar" appearing under one ECCN in Category 6, but only in a sentence that tells you that the particular ECCN does not apply. You then search for "radar" and find instances of this word under ECCNs in Categories 1, 3, 6 and 7.
| A word search of the CCL is an aid to finding a product listing, but is never conclusive. There will often be considerable attention to technical detail required. Remember, the CCL is mostly concerned with highly-technical items that the U.S. regulates the export of for national security or other specialized reasons. The vast majority of products exported from the U.S. are not specifically described anywhere in the CCL because their export is not controlled other than to countries against which the U.S. has trade sanctions, and so fall under the "catch all" ECCNs found at the end of each CCL chapter. |
Determining the Group within the Category
Each of these numbered CCL category sections is broken into the following five (5) groups further indicating the function of the product within the category: The second character in the ECCN indicates the group, as follows:
A—Equipment, Assemblies and Components
B—Test, Inspection and Production Equipment
C—Materials
D—Software
E—Technology
The second step in determining if a particular product or material is listed in the CCL is to identify this letter based on the product characteristics.
Let's consider some examples of products, as might be described in a product catalog or commercial invoice:
"Truck transmission" – This is a "component" of a truck, so "A" would be the second letter of possible ECCN
"Computer operating system" – This is software, so "D" would be the second letter of possible ECCN
"Engineering drawings" – Since drawings comprise information about an item, rather than the actual item depicted in the drawing, this falls under "technology," so "E" would be the second letter of the possible ECCN
"Chemical processing pump" – This item would be used in "Production Equipment," and so falls under "B."
Reasons for Control
The third character in the ECCN is a digit that indicates the primary reason for control of the particular commodity or product:
0—National Security reasons
1—Missile Technology reasons
2—Nuclear Nonproliferation reasons
3—Chemical & Biological Weapons reasons
9—Anti-terrorism, Crime Control, Regional Stability, Short Supply, UN Sanctions, etc. reasons
From these high-level EAA export control objectives more specific reasons for control have been specified in the EAR for use in the Commerce Control List (CCL). Under the ECCN for an item, one or more reasons for control are listed using codes shown below. The current (as of September '08) reasons for control, by code, are:
AT – Anti-Terrorism
CB– Chemical & Biological Weapons
CC– Crime Control
CW– Chemical Weapons Convention
EI – Encryption Items
FC– Firearms Convention
MT– Missile Technology
NP – Nuclear Nonproliferation
NS– National Security
RS– Regional Stability
SI– Significant Items
SS– Short Supply
UN– United Nations Embargo
SL– Surreptitious Listening
If an export license is deemed necessary, there are many steps that must be followed. The application will require many support documents to verify the products export legality.
The purpose of a support document is to provide evidence that the prospective consignee and end user is legitimate and committed to compliance with U.S. export requirements. Under certain circumstances, an import certificate may also be required from the consignee's government to verify the legitimacy of the consignee and confirm that the shipment will be allowed entry into the country. In a few circumstances for defense articles subject to the ITAR, a full import certificate/delivery verification procedure will be required. This phrase, abbreviated as "IC/DV procedure", describes a double procedure requirement used between certain cooperating governments to help assure that the export, subsequent import and use of sensitive controlled items is legitimate, and carried out in accord with an export license authorizing the export. The procedure begins with an import certificate issued by the destination government at the request of the importer through the export prior to shipment for used as a support document for his supplier's export license application. Once the export license is issued by the country from which the export is to be made, and actual shipment has been accomplished, in order to complete the process, a delivery verification certificate must be issued by the destination country customs authority to confirm that the subject shipment was, in fact, delivered to the particular consignee or end user authorized in the export license.
When a support document will be needed for a U.S. export license application, the U.S. exporter should request the prospective foreign buyer/consignee to obtain it as soon as possible after the prospective export transaction has been agreed upon as it must be submitted together with the export application.
Note: The requirement for a "support document," when applicable, is in addition to a commercial document (for example, a sales contract, purchase order issued by the foreign buyer) documenting the "real" pending transaction. Commercial documents must always be submitted with an export license application along with product information (in the form of a sales brochure or written technical specifications), if such information is not already on file at the BIS from the particular applicant covering the particular product(s).
Types of support documents
There are several types of support documents. The applicable ECCN listing may state the type of support document needed within the framework of the EAR, 15 CFR 748.9. Otherwise, refer directly to 15 CFR 748.9 to determine the requirement based on the destination country and reason for control. When required, a support documents will consist of one of the following:
Statement by ultimate consignee and purchaser —(See 15 CFR 748.9 (Links to an external site.)Links to an external site.; and, for a description of the form and exceptions, see 15 CFR 748.11 (Links to an external site.)Links to an external site..) This is the most commonly required supporting document, and is a U.S. form that requires completion by the foreign buyer and/or ultimate consignee (the destination government does not become involved). The PDF version of the blank form is available at BIS 711 Statement by Ultimate Consignee and Purchaser (Links to an external site.)Links to an external site. and a field-by-field description of the required information is available at 15 CFR 748, Supplement 3. (Links to an external site.)Links to an external site.
People's Republic of China (PRC) End User statement (See 15 CFR 748.9; and, for a description of the form and exceptions, see 15 CFR 748.10. (Links to an external site.)Links to an external site.) When required, the end-user of the product or material to be exported in China must provide obtain this document from the Chinese government as specified in the EAR (above), and then provide this document to the prospective U.S Exporter in support of the prospective export license application.
Import certificate —(See 15 CFR 748.9 and 15 CFR 748.10.) This is a form issued by certain countries listed under 15 CFR 748.9(b)(2). When required by BIS, this document is used in lieu of an end-user certificate.
Import certificate/delivery verification procedure For exports subject to the ITAR, the full IC/DV procedure may apply, with an import certificate (IC) required from the destination country as a condition of issuance of a DOS export license, as well as delivery verification (DV) following export. Refer to 22 CFR 123.14. This procedure is no longer used for DOC license applications.
Firearms Convention Import Certification - This supporting document is required for exports consisting of firearms and related commodities, regardless of value, that are destined for member countries of the Organization of American States (OAS). Refer to 15 CFR 748.12.
Refer also to Supplement 2 (Links to an external site.)Links to an external site.—Unique Application and Submission Requirements, and 15 CFR 748, Supplement 5 (Links to an external site.)Links to an external site. for a list of Validated End Users (VEUs).
