What is Export Control?
Export Control regulations are federal laws that prohibit the unlicensed export of certain commodities or information for reasons of national security or protections of trade. Export controls usually arise for one or more of the following reasons:
- The nature of the export has actual or potential military applications or economic protection issues;
- Government concerns about the destination country, organization, or individual, and
- Government concerns about the declared or suspected end use or the end user of the export
The International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR) are two important United States export control laws that affect the manufacturing, sales and distribution of technology. The United States Government controls access to specific types of technology and the associated data. Ultimately, its goal is to prevent the disclosure or transfer of sensitive information to foreign nationals.
ITAR contains a United States Munitions List (USML) of restricted articles and services. EAR contains a Commerce Control List (CCL) of regulated commercial items, including those items that have both commercial and military applications.
To be ITAR or EAR compliant, a manufacturer or exporter whose articles or services appear on the USML or CCL lists must register with the U.S. State Department’s Directorate of Defense Trade Controls (DDTC). ITAR and EAR compliance can be problematic for any organization conducting business internationally because the data related to a specific type of technology may need to be transferred over the Internet or stored locally outside the United States. As a result, it is the responsibility of the manufacturer or exporter to take the necessary steps to certify that they are in compliance with the regulations or they could potentially face substantial fines.
Sovana Global Logistics, LLC is registered with the DDTC and have extensive experience shipping licensed freight. Our staff acts as a “Second Set of Eyes” for our clients on all international shipments. All operations personnel have successfully completed Export Control training and will review all inventory for potential licensable goods prior to shipment.
For those customers who are new to Export Controls, below are some helpful links to get you started on the right path to Export Compliance:
- http://www.bis.doc.gov/policiesandregulations/ear/index.htm : The Bureau of Industry and Security’s downloadable PDF version of the Export Administration Regulations (EAR)
- http://pmddtc.state.gov/ : To get registered with the DDTC for the filing of licenses and shipment of ITAR related articles
- http://pmddtc.state.gov/regulations_laws/itar_official.html : The U.S. Department of State’s official version of the International Traffic in Arms Regulations (ITAR)
- http://www.bis.doc.gov/licensing/index.htm : The Bureau of Industry and Security’s home portal to links such as Commodity Classifications, Licensing and Export Control Basics