Thursday, May 2, 2019

ECCN classification and export compliance: ways to do this more effectively

Many US exporters and organizations involved in international trade are aware of how important it is to comply with US federal regulations on the export of goods and technology.

However, achieving compliance is not easy and smooth. Due to the lack of formal procedures elaborated through several steps of a successful program, organizations may immediately find themselves not complying with regulations. Since this is a national security issue, no one can withdraw from written plans and guidelines and hand over compliance to fate. After all, export control regulations are designed to protect national security interests.

What is ECCN and why is it important?

The ECCN [ie export control classification number] must be assigned to goods, software and technology prior to export and transfer. The ECCN for any given product is listed under a specific category of the Business Control List [CCL] and can vary depending on the function, characteristics and technical parameters of the product. In addition, the ECCN classification helps determine if a product or technology requires an export license or if there are any license exceptions. Each category contains various items on the CCL, but items not listed on the CCL receive an ECCN of "EAR99".

Traditional ECCN assay

How to determine ECCN? Then, the main three methods are:

1. Determine the source. You can ask the manufacturer, developer or manufacturer for the ECCN of the project. Since ECCN may change, you should ensure that you have the current ECCN.

2. Classify yourself. To do this, you need to have an in-depth understanding of the project's features, content, and features. In addition, you must be familiar with the format and structure of the CCL.

3. Send a request to the BIS. With the help of a CIN or company identification number and a PIN or PIN, you can send a formal categorization request to the Department of Commerce - Industry and Security [BIS].

Next, you need to know if the export of the product/technology requires an export license. The ECCN you identified is the key to the next step.

ECCN assay

Technology has traditionally changed the way the world works, especially through automation, speed and accuracy.

It's worth noting that trade compliance consultants make life easier for companies and organizations. In fact, the development of ECCN and HTS classification software has quickly tracked the performance of these companies.

In order to determine control, people need to first classify goods, technologies or software according to EAR and ITAR regulations. Therefore, software that implements this process in a fast and efficient manner is very useful.

Recently, software vendors have introduced Web-based solutions for companies with limited budgets and the inability to hire consultants or experts. With the support of this web-based software, exporters and importers can easily identify items after answering a certain number of questions. Not only that, but the classification results are also stored for record retention purposes. Users of the software will access detailed transaction content or information in the form of definitions, tax rates, special notes, country charts, licensing requirements and exceptions.

Overall, web-based solutions can motivate organizations to help them increase efficiency with minimal volatility. Therefore, companies will not delay search, communication, classification, etc. indefinitely.





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