Legal Definitions - Export Control Classification Number (ECCN)

An Export Control Classification Number (ECCN) is a specific alphanumeric code used by the U.S. government, specifically the Bureau of Industry and Security (BIS), to categorize items that are being exported from the United States. Its primary purpose is to help both the government and exporting companies determine whether a particular item requires an export license before it can be shipped to a foreign country.

The ECCN system is crucial for implementing the Export Administration Regulations (EAR), which control the export of certain commercial and "dual-use" items – goods, software, and technology that have both civilian and potential military applications. Each ECCN is found on the Commerce Control List (CCL) and provides detailed information about why an item is controlled, such as for national security, anti-terrorism, or missile technology reasons.

An ECCN typically consists of a number indicating the item's category (e.g., electronics, computers, navigation), followed by a letter specifying the product group (e.g., equipment, software, technology), and then three more characters that detail the specific reason for control. For items that are not listed on the CCL and are generally less sensitive, the code EAR99 is assigned. Most EAR99 items do not require an export license, unless they are destined for a sanctioned country, a prohibited end-user, or a restricted end-use.

By identifying the correct ECCN for an item and cross-referencing it with the destination country and the intended recipient, exporters can determine their licensing obligations and ensure compliance with U.S. export laws.

• Example 1: Exporting Advanced Robotics Components

  A U.S. company manufactures highly sophisticated robotic arms equipped with advanced sensors and artificial intelligence software, designed for precision manufacturing. They receive an order from a factory in a country that is not a close U.S. ally. To determine if they need an export license, the company must identify the correct ECCN for these robotic components and their embedded software. Given their advanced capabilities, these items would likely fall under a category like "Electronics" or "Computers" (e.g., 4AXXX or 5AXXX) on the Commerce Control List. The specific ECCN, combined with the destination country, would then indicate whether a license is required due to national security or technology transfer concerns.

• Example 2: Shipping Standard Office Supplies

  A small business in the U.S. wants to send a large shipment of common office supplies, such as paper, pens, and basic calculators, to a branch office located overseas. When classifying these items for export, the company would find that they are not specifically listed on the Commerce Control List as sensitive technologies or dual-use goods. Therefore, these everyday items would typically be designated with the code EAR99. This designation generally means that no specific export license is needed, allowing the company to ship the supplies without extensive regulatory hurdles, provided the destination country and recipient are not subject to U.S. sanctions or restrictions.

• Example 3: Exporting Specialized Satellite Communication Equipment

  A U.S. aerospace firm develops and produces highly specialized satellite communication transponders designed for secure, high-bandwidth data transmission. A foreign government agency expresses interest in purchasing these transponders for its national communication network. Before proceeding with the sale, the U.S. firm must determine the appropriate ECCN for this equipment. Due to its advanced nature and potential for strategic applications, it would likely be classified under a category such as "Telecommunications and Information Security" (e.g., 5AXXX). The specific ECCN would then guide the company in understanding the licensing requirements, which could be stringent given the sensitive nature of satellite communication technology and the potential end-user.