PART 732—STEPS FOR USING THE EAR (Match)

Part 734 = Scope of the EAR Part 736 = General prohibitions Part 740 = License Exceptions Other requirements = Export clearance, record-keeping, and license applications

Supplement no. 1 to part 732 = Contains a flow chart of logical steps in the EAR Part 732.1(a)(1) = Describes suggested steps for determining applicability of various EAR provisions Part 732.1(a)(2) = Describes organization, relationship, and order of considering EAR provisions Part 732.1(a)(3) = Provides an overview of steps for certain EAR requirements

Export clearance = Clearing your export with the U.S. Customs Service Record-keeping = Keeping records related to export activities License applications = Completing and documenting applications for export licenses Investigation measures = Enforcement measures under federal law

<p>Determining applicability of EAR provisions = Following suggested steps in part 732.1(a)(1) Understanding organization of EAR = Considering relationship among EAR provisions in part 732.1(a)(2) Providing an overview of certain EAR requirements = General information in part 732.1(a)(3) Avoiding misinterpretation of federal law = Clarifying that this part does not affect other enforcement measures</p> Signup and view all the answers

<p>Export and reexport of controlled items to listed countries = General Prohibition One Reexport and export from abroad of foreign-made items incorporating more than a de minimis amount of controlled U.S. content = General Prohibition Two Reexport and export from abroad of the foreign-produced direct product of U.S. technology and software = General Prohibition Three Engaging in actions prohibited by a denial order = General Prohibition Four</p> Signup and view all the answers

<p>Export or reexport to prohibited end uses or end users = General Prohibition Five Export or reexport to embargoed destinations = General Prohibition Six Support of proliferation activities = General Prohibition Seven In-transit shipments and items to be unladen from vessels and aircraft = General Prohibition Eight</p> Signup and view all the answers

<p>Violation of any orders, terms, or conditions = General Prohibition Nine Proceeding with transactions with knowledge that a violation has occurred or is about to occur = General Prohibition Ten Export or reexport to listed countries = General Prohibition One Reexport and export from abroad of the foreign-produced direct product of U.S. technology and software = General Prohibition Three</p> Signup and view all the answers

<p>What an item is, for export control purposes, depends on its classification on the Commerce Control List = (1) What is it? Determines licensing requirements based on the country of ultimate destination for an export or reexport = (2) Where is it going? Determines if the ultimate end-user is a bad end-user = (3) Who will receive it? Ensures that conduct related to proliferation projects does not prevent dealing with someone = (5) What else do they do?</p> Signup and view all the answers

<p>Brief summary of the ten general prohibitions found in part 736 of the EAR = (1) Brief summary of the ten general prohibitions Determines if any actions are prohibited by a denial order = (4) What will they do with it? Supports proliferation activities related to U.S. person involvement = (7) U.S. Person Proliferation Activity Violation of any orders, terms, or conditions = (9) Orders, Terms and Conditions</p> Signup and view all the answers

<p>EAR = Export Administration Regulations ECCN = Export Control Classification Number U.S. person = Individuals who are citizens or permanent residents of the United States De minimis level = Threshold for the percentage of U.S.-origin controlled items in a foreign-made item</p> Signup and view all the answers

<p>Step 3 = Determining reexport of U.S.-origin items Step 4 = Assessing foreign-made items incorporating controlled U.S.-origin items Step 6 = Applying the direct product rule to foreign items made from U.S. technology Step 7 = Considering general prohibitions and other requirements for foreign-made items</p> Signup and view all the answers

<p>§734.7(c) = Reference to controlled software or technology for firearm production ECCN 5D002 = Classification for encryption software on the Commerce Control List 0A501 = Controlled classification for firearm frame or receiver production General Prohibition Seven = Prohibition concerning proliferation activity of U.S. persons</p> Signup and view all the answers

<p>Publicly available technology/software = Outside the scope of the EAR, can proceed with export if not a U.S. person subject to General Prohibition Seven Technology/software not publicly available = Requires proceeding to Step 7 concerning general prohibitions if exporting from the United States Foreign-made item below de minimis level = Not subject to the EAR, move on to consider foreign-produced direct product rule Foreign-made item exceeding de minimis level = Subject to the EAR, requires consideration of general prohibitions and other requirements</p> Signup and view all the answers

<p>Supplement no. 1 to part 734 of the EAR = Contains practical examples of publicly available technology/software exempt from EAR control Supplement no. 2 to part 734 of the EAR = Guidance for determining if foreign-made items incorporate controlled U.S.-origin items above de minimis level</p> Signup and view all the answers

<p>Step 1 = Determining items subject to exclusive jurisdiction of another Federal agency Step 2 = Identifying publicly available technology and software Step 12 = Controls on activities for all countries except Cuba, Iran, North Korea, and Syria Step 20 = Determining availability of License Exception to overcome license requirement</p> Signup and view all the answers

<p>General Prohibitions One, Two, and Three = Export and reexport controls General Prohibitions Four through Ten = Various restrictions on activities related to EAR License Exceptions = Ways to exempt from license requirements under certain conditions Country Chart = Tool used to determine if a license is required for a destination</p> Signup and view all the answers

<p>Skipping Steps 7 through 11 = Applies to countries like Cuba, Iran, North Korea, and Syria Skipping License Exceptions = When none of the ten general prohibitions apply Applying for a license = Reviewing requirements in part 748 of the EAR Checking License Exception availability = Determining if export requires a license and if exceptions are applicable</p> Signup and view all the answers

<p>Filing Shipper’s Export Declarations = Steps 26 through 28 for exports from the United States Reviewing Scope of the EAR = Steps 1 through 6 to understand the jurisdiction of items Applying for a license application = Reviewing requirements suggested by Step 26 Compliance with regulations of other agencies = If item is under exclusive jurisdiction of another Federal agency</p> Signup and view all the answers

<p>Embargoed destinations = Countries subject to comprehensive embargo like Cuba, Iran, North Korea, and Syria Short supply controls = License Exceptions specified in part 754 of the EAR License Exceptions for prohibited activities = Not generally available to overcome General Prohibitions Four through Ten Destination Control Statements = Required for export control documents along with Shipper’s Export Declarations</p> Signup and view all the answers

<p>General Prohibition Five (End-Use and End-User) = Prohibits certain end-uses and end-users under the EAR License Exception TSU = Allows overcoming General Prohibition Five under specific conditions General Prohibition Six (Embargo) = Restricts exports to embargoed countries General Prohibition Seven ('U.S. person' activities) = Prohibits specific activities by U.S. persons under the EAR</p> Signup and view all the answers

<p>Cuba, Iran, Iraq, North Korea, Syria = Consider parts 742 and 746 of the EAR Destinations subject to limited sanctions under UN arms embargoes = Subject to General Prohibition Six (Embargo) Russian and Belarusian industry sector sanctions = Refer to section 746.5 of the EAR Crimea region of Ukraine and covered regions of Ukraine = See section 746.6 for applicable sanctions</p> Signup and view all the answers

<p>Activities not limited to exports, reexports, or transfers (in-country) = Prohibited under General Prohibition Seven Making exports contrary to part 746 of the EAR without a license = Prohibited unless specific conditions are met Using a license exception from part 740 to overcome General Prohibition Six = Not allowed unless authorized in part 746 of the EAR Applicable prohibitions and exceptions to short supply controls = Contained in part 754 of the EAR</p> Signup and view all the answers

<p>Step 10 = Determining if foreign-made items incorporating US-origin items exceed de minimis levels Step 11 = Determining if foreign-produced items located outside the US are subject to the EAR Step 12 = Checking if any party involved in the transaction is denied export privileges Step 13 = Considering prohibited end-uses and end-users</p> Signup and view all the answers

<p>De minimis rules = Criteria to determine if US-controlled content in foreign-made items exceeds acceptable levels Direct product rule = Determines if foreign-produced items derived from US technology/software are subject to the EAR License Exceptions = Specific authorizations that can override General Prohibition Four (Denial Orders) Prohibited end-uses = Activities or purposes that are restricted under the EAR</p> Signup and view all the answers

<p>Foreign item meets conditions = Subject to the EAR and may require a license for export or transfer Foreign item does not meet conditions = Not subject to the EAR and does not require a license for export or transfer Direct product is a result of US-origin technology/software = May be subject to the EAR under specific conditions Direct product is not derived from US technology/software = Not automatically subject to the EAR</p> Signup and view all the answers

<p>US-origin encryption software controlled for 'EI' reasons = Not eligible for de minimis treatment and retains US-origin abroad Foreign-made tech commingled with US-origin tech = Subject to the EAR if US-origin content exceeds de minimis levels Software engineered abroad based on US-origin tech = Subject to the EAR if designed for plant/equipment operations using US-origin software/tech Foreign-produced direct product of US technology/software = May require a license for export depending on meeting General Prohibition Three</p> Signup and view all the answers

<p>U.S.-origin commodities, software, or technology = Subject to the EAR unless controlled for export exclusively by another U.S. Federal agency or unless publicly available Foreign-origin commodities, software, or technology falling under General Prohibition Two or Three = Subject to the EAR unless controlled for export exclusively by another U.S. Federal agency or unless publicly available Items subject to temporary CCL controls = Classified under the ECCN 0Y521 series while a determination is being made Items not listed on the CCL = Proper classification is EAR99</p> Signup and view all the answers

<p>General Prohibition One = Exports and Reexports General Prohibition Two = Parts and Components Reexports General Prohibition Three = Foreign-Produced Direct Product Reexports General Prohibition Four through Ten = Prohibitions on certain activities not allowed without BIS authorization</p> Signup and view all the answers

<p>Step 7: Classification = Responsible for correctly classifying items in a transaction Step 8: Country of ultimate destination = Determine the country of ultimate destination Requesting classification assistance from BIS = Right to request applicable classification from BIS Items not specified under any CCL entry = Proper classification is EAR99</p> Signup and view all the answers

<p>Items captured by General Prohibition Three = Subject to the EAR and may require a license for export from abroad or reexport Items not captured by General Prohibition Three = Determine if subject to the EAR and potentially skip remaining steps Steps regarding all general prohibitions, license exceptions, and requirements = Consider after determining if item is captured by General Prohibition Three Items outside the U.S. subject to the EAR = U.S.-origin items unless controlled exclusively by another U.S. Federal agency or publicly available</p> Signup and view all the answers

<p>Exporter, reexporter, transferor = Responsible for correctly classifying items in a transaction BIS = Has a duty to provide applicable classification upon request Failure to classify an item correctly = Does not relieve person of obligation to obtain a license if required by EAR Submitting a classification request to BIS = May be involved in correctly classifying items in a transaction</p> Signup and view all the answers

<p>License Requirements = Information within the ECCN used in combination with the Country Chart to determine if a license is required Country Chart = Chart used to identify if a license is required for specific destinations based on ECCN and country ECCN = Export Control Classification Number indicating the reason for control of items General Prohibitions = Categories of exports and reexports that may require a license based on specific criteria</p> Signup and view all the answers

<p>General Prohibition One = License requirement for Exports and Reexports in the Form Received General Prohibition Two = License requirement for Parts and Components Reexports General Prohibition Three = License requirement for Foreign-Produced Direct Product Reexports License Exception = Condition where a license is not required under specific criteria</p> Signup and view all the answers

<p>Step 9 = Determining the reason for control and consulting the Country Chart for license requirements Step 12-18 = Determining additional limits described in General Prohibition Two and Three Step 10-11 = Skipped when exporting from the United States, proceeding directly to Step 12 Step 1-8 = Steps not explicitly mentioned but part of the export control process</p> Signup and view all the answers

<p>Cuba, Iran, North Korea, Syria = Countries where the Country Chart does not apply and provisions are reviewed in part 746 of the EAR Iraq, Russia = Countries where the Country Chart provides for certain license requirements and additional requirements are in part 746 of the EAR United States, Canada, Mexico = Countries not specifically mentioned in special controls provisions under EAR China, India, Brazil = Countries subject to specific export control regulations</p> Signup and view all the answers

<p>National Security = Reason for control applicable to ECCNs like 6A007 for security purposes Missile Technology = Reason for control applicable to certain items based on technology capabilities Anti-terrorism = Reason for control related to preventing terrorism activities Short Supply Controls = Self-contained controls in part 754 of the EAR regarding items in high demand</p> Signup and view all the answers

<p>'X' marked in relevant columns on Country Chart = Indicates a license is required under General Prohibitions One, Two, or Three No 'X' in relevant columns on Country Chart = Indicates a license is not required under CCL and Country Chart Item controlled for short supply reasons = Not governed by the Country Chart and requires specific considerations under part 754 of the EAR Item not on CCL but subject to EAR = 'EAR99' classification for items not identified on CCL</p> Signup and view all the answers

<p>Skip Step 10 and Step 11 when exporting from the US = Proceed directly to Step 12 in paragraph (g) of this section Consult §738.4 of the EAR for using Country Chart = Guidance on utilizing the Country Chart to determine license requirements under various scenarios Review provisions at part 746 of EAR for specific countries = Identify special controls provisions applicable to Cuba, Iran, North Korea, Syria, Iraq, and Russia Check ECCNs without a Country Chart column identifier = Determine licensing requirements directly from ECCN information</p> Signup and view all the answers

<p>6A007 ECCN = 'National Security', 'Missile Technology', 'Anti-terrorism' reasons for control 5B002 ECCN = 'Short Supply Controls' reason specified for items within this ECCN 3C001 ECCN = 'Anti-terrorism' reason identified as a basis for control under this ECCN 9D004 ECCN = 'Missile Technology' reason indicated as a controlling factor</p> Signup and view all the answers

<p>Horizontal Axis Column Identifier = Used to locate destination countries, h Vertical Axis Reason(s) for Control Column Identifier = Identifies specific reasons that may require a license, r Cell Marked 'X' = Indicates requirement of a license under General Prohibitions, x Cell without 'X' = Indicates no requirement of a license based on CCL and Country Chart, -</p> Signup and view all the answers

<p>Items subject to short supply controls = Items governed by self-contained controls in part 754 of EAR Items classified as EAR99 = Items subject to EAR but not listed on CCL Parts and Components Reexports = License requirement under General Prohibition Two Foreign-Produced Direct Product Reexports = License requirement under General Prohibition Three</p> Signup and view all the answers