The Meaning of Export Controls-Part 1

Export Administration Regulations (EAR)

If you work in the international trade industry or if you are considering it, the export administration regulations are something you need to know. These regulations apply to all goods being exported out of the United States.

These goods must be regulated for the country’s security and the safety of the country they are being shipped to. There needs to be tight control over these goods and covers everything including large shipments to mail delivery.

Let’s take a closer look at what the EAR is and why we need them.

What is the EAR?

The Export Administration Regulations cover anything and everything that is considered an ‘export’. This means anything being moved outside of the country. Anything going on a ship, an airplane, a car or transport truck all fall under the regulations.

Also, any item leaving the US even temporarily or if it is being returned to a foreign country from the US is considered export.  Exportations do not necessarily need to be physical products. Even technology, data, and information that is released to a foreign national located in the U.S. or abroad is also classified as an export.

This means anything you are sending outside of the country, no matter how big or small is considered export. The stereo you sold online and Grandma’s birthday card you mailed to Singapore all are subject to these laws.

Export Control License

This license is for those wishing to export goods to a different country. While you certainly don’t need one to send Grandma her birthday card, the organization who actually sends it does.

Whether you need an export license will largely depend on what you are exporting. Mainly, it comes down to what the person who is receiving the goods is planning on using it for. Finding out their intended use of the product, such as building weapons or chemical substances.

You also need to ensure that the goods are not to be reshipped to another country. The goods sent to one country may be fine but having them sent on to a different country could be very problematic.

International Traffic in Arms Regulations (ITAR)

This is an organization for regulating the transport of arms or anything deemed to be a weapon. This included technology, parts and other information regarding defense and military weapons.

While both the EAR and the ITAR control and oversee the laws regarding exports of goods and technology, the ITAR focuses on weaponry, in all forms, including technology and the EAR has a much broader scope for exports.

The legislation controls access to specific types of technology and similar information. Its purpose is to prevent the disclosure or transfer of sensitive information to a foreign national. Both have control of regulated commercial items, including those items that have both commercial and military uses.

Ongoing Regulations

As our needs for security changes, so do the regulations. These need to be continually updated to include new and potentially dangerous goods or information. Many of these updates surround new technologies being developed.

It’s difficult to keep ahead of new technology. They seem to move at a faster pace than most organizations can keep up with. Anything considered dangerous or a threat must be examined and regulated accordingly.

Not only the technologies change but the way they are transferred and sent to foreign countries is continually evolving. These become more difficult to track and regulate, as sending things electronically are much harder to monitor.

Know Your Regulations

Whether you are a one-person-band of exporting or work for a major corporation, it is vital you stay on top of all the latest laws and regulations. Every time there is a breach of regulation the regulations may need to change.

There are plenty of resources available to educate yourself and avoid problems. Understanding the responsibility that comes with your export license will save you time and money.

We have a wide variety of courses to offer; seminars, webinars, on-demand, and private sessions are available. Feel free to contact us for more information or to enroll for any of our classes. We have first-hand knowledge and trained, experienced professionals to help you get the best education and help you get started in the right direction.