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Simple English definitions for legal terms
commodity classification request
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A quick definition of commodity classification request:
A commodity classification request is when a company wants to export goods from the United States to other countries and needs to know if they need a special license to do so. They ask the Bureau of Industry and Security (BIS) to help them figure out what category their product falls under. BIS is in charge of making sure that certain items that could be used for military or dangerous purposes don't get exported without permission. To find out if a license is needed, the company needs to know what category their product falls under. They can either figure it out themselves or ask BIS to help them. To ask for help, they need to fill out an application and give BIS information about their product. This helps the company make sure they are following the rules when exporting their product.
A more thorough explanation:
A commodity classification request is when a company wants to export goods from the United States to other countries. They need to ask the Bureau of Industry and Security (BIS) to determine the Export Control Classification Number (ECCN) of their products. This number is important because it helps to identify if the product has any military or proliferation application.
The BIS is responsible for enforcing the Export Administration Regulations (EAR) that regulate the export and re-export of many commercial items. To determine if a license is required to export an item, the item must first be classified to determine if it is on the Commerce Control List (CCL). Self-classification is an acceptable means of classifying the item. However, it is also possible to request an official commodity classification from BIS.
For example, if a company wants to export a new type of computer software that can be used for military purposes, they need to request a commodity classification from BIS. The company needs to submit an application and technical specifications of the software to BIS. BIS will provide an accurate classification of the commodity so that the company can ensure compliance with the export laws set forth by BIS.
Another example is if a company wants to export a new type of chemical that can be used for making explosives. They need to request a commodity classification from BIS to determine if the chemical is on the Commerce Control List. If it is, the company needs to obtain a license before exporting the chemical.
In summary, a commodity classification request is an important step for companies that want to export goods from the United States. It helps to ensure compliance with the export laws set forth by BIS and prevents the export of items that can be used for military or proliferation purposes.