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Simple English definitions for legal terms
Export Control Classification Number (ECCN)
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A quick definition of Export Control Classification Number (ECCN):
Export Control Classification Number (ECCN) is a code used to determine if goods being exported outside of the United States need a license and to what extent they can be exported. It is made up of a number, letter, and three letters that indicate the purpose for regulating the item. The ECCN helps both the Bureau of Industry and Security (BIS) and companies determine if exports fall under the Export Administration Regulations (EAR). If an export does not fall under the CCL, it will be given the code EAR99. The ECCN is important for regulating the type, use, and receiving party of the goods being exported.
A more thorough explanation:
Definition: Export Control Classification Number (ECCN) is a code used by the Bureau of Industry and Security (BIS) to determine if goods set for export outside of the United States fall under the Export Administration Regulations (EAR). The ECCN helps both the BIS and companies determine if exports need a license and to what extent the products can be exported. The Commerce Control List (CCL) contains the instructions for determining ECCN numbers.
An ECCN contains a number for the category of the item, followed by a letter indicating the group, and finally three letters that indicate the purpose for regulating the item such as 4A001. The ECCN number along with the country chart allows someone to determine whether the exports require a license based upon the type, use, and receiving party of the goods. If an export does not fall under the CCL, it will be given the code EAR99. Typically, EAR99 codes mean no license will be needed unless the product will be going to a specially regulated entity or use.
For example, if a company wants to export a computer to a foreign country, they would need to determine the ECCN for that computer. If the ECCN is 4A003, then a license would be required to export the computer to that country. However, if the ECCN is EAR99, then no license would be needed unless the computer is going to a specially regulated entity or use.
The ten categories of the ECCN are:
- Nuclear Materials, Facilities and Equipment and Miscellaneous
- Materials, Chemicals, “Microorganisms,” and Toxins
- Materials Processing
- Electronics
- Computers
- Telecommunications and Information Security
- Lasers and Sensors
- Navigation and Avionics
- Marine
- Propulsion Systems, Space Vehicles and Related Equipment
The five categories of the ECCN are:
- Equipment, Assemblies and Components
- Test, Inspection and Production Equipment
- Materials
- Software
- Technology
If an entity has difficulty finding the correct ECCN of an export, they can submit a Commodity Classification Request for the BIS to help determine the ECCN.
Overall, the ECCN is an important tool for regulating exports and ensuring that sensitive goods do not fall into the wrong hands.