Legal Definitions - commodity classification request

A commodity classification request is a formal application submitted by a company or individual in the United States to the Bureau of Industry and Security (BIS), a U.S. government agency. The purpose of this request is to obtain an official determination of the specific category, known as the Export Control Classification Number (ECCN), for a particular product, software, or technology they intend to export internationally. This ECCN places the item on the Commerce Control List (CCL).

The primary reason for making such a request is to ensure compliance with U.S. export laws, specifically the Export Administration Regulations (EAR). These regulations govern the export and re-export of many commercial items that also have potential military applications or could contribute to the proliferation of weapons (often referred to as "dual-use" items). By receiving an official ECCN from BIS, exporters can accurately determine whether their item requires a special license before it can be shipped to certain countries, thereby avoiding legal penalties. While companies can sometimes classify their own products, a commodity classification request provides an authoritative government determination. The process typically involves submitting a detailed application along with comprehensive technical specifications of the item to BIS for review.

Here are some examples of when a commodity classification request might be made:

• A U.S.-based company develops cutting-edge drone technology designed primarily for agricultural surveying. However, due to the drones' advanced navigation systems and payload capacity, they could potentially be adapted for military or surveillance purposes. Before accepting large international orders, the company submits a commodity classification request to BIS. They provide detailed technical specifications of the drone, including its flight capabilities, sensor types, and software. This request helps them obtain an official Export Control Classification Number (ECCN), which will clarify whether they need specific export licenses for certain countries under the Export Administration Regulations (EAR).

• An American manufacturer produces specialized industrial pumps used in various commercial sectors, such as oil and gas processing. One particular model, however, is highly durable and capable of handling corrosive materials at extreme pressures, making it potentially useful in sensitive chemical production facilities. To ensure they comply with U.S. export laws, especially when selling to new international markets, the manufacturer files a commodity classification request with BIS. They include blueprints and performance data for the pump to receive an official ECCN, which will guide their licensing decisions for exports.

• A software development firm creates sophisticated data analytics software that can process vast amounts of information quickly. While primarily marketed for financial analysis, the software's powerful algorithms could also be applied to intelligence gathering or other sensitive national security functions. Before licensing their software to clients in several foreign nations, the firm submits a commodity classification request to BIS. By providing detailed descriptions of the software's functionalities and technical specifications, they aim to receive an official ECCN, which will inform them of any necessary export licenses or restrictions under the Commerce Control List (CCL).