International Trade Blog

There are many reasons the U.S. government has decided some goods should require a second look before they can be exported to certain countries.

In my previous article I explained what these various reasons for control are as they appear in the Commerce Department’s Export Administration Regulations (EAR). And I explained why exporters would need to apply for an export license from the U.S. government based on the particular Reason for Control and the destination country.

Even if one or more reasons might apply to a product going to a specific country, the EAR also provides exceptions to the export license requirement.

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In a previous article I explained the export license determination process for exports of dual-use items controlled by the U.S. Department of Commerce under the Export Administration Regulations (EAR).

We walked through how exporters must first find the correct Export Control Classification Numbers (ECCNs) of their products and then determine if an export license is required based on what reasons for control apply to the export and whether or not any license exceptions are available.

Today’s article gives a summary of each EAR reason for control.

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In a previous blog post, I discussed what I had learned by attending a seminar cosponsored by the Bureau of Industry and Security (BIS) and the Minnesota Trade Office. I described how to find an item’s Export Control Classification Number (ECCN) on the Commerce Control List (CCL).

In today’s blog post, I will describe the next step in the process: How to use the Commerce Country Chart to determine if an export license is required based on the reasons for control.

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Does my product require an export license? That's a question you should ask before every export.

In order to find the answer, you first need to answer two preliminary questions:

• What is the Export Control Classification Number (ECCN) of the product?
• What is the destination country?

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If you have multiple people responsible for various aspects of your company's exports, it's important that everyone is on the same page when it comes to export compliance, procedures and documentation. Unfortunately, I talk with too many people who admit that their company lacks a formal set of export procedures.

Without a formal set of procedures—what many companies call an Export Management and Compliance Program—your company is at an increased risk of shipping delays, problems getting paid, and significant financial penalties for export compliance violations.

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You just bought a car from a U.S. dealership and want to sell it to a foreign buyer in Canada. You’re vaguely aware of a rule stating that exporting used vehicles out of the U.S. requires specific documentation. But this is just something you’re putting up on Craig’s List. And you just bought the car, so of course it’s not used—right?

This is where things get tricky. When it comes to U.S. export regulations, what is considered a used vehicle is broader than you might expect.

According to Customs and Border Protection (CBP), a used vehicle is defined as “any self-propelled vehicle the equitable or legal title to which has been transferred by a manufacturer, distributor, or dealer to an ultimate purchaser.”

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When I talk with exporters, I'm amazed at how many people are using outdated versions of export forms or are unaware of changes to regulations that directly impact their international shipments.

Too many companies rely on the same templates and rules that they were using 10 years ago. It's a recipe for disaster.

Fortunately, there's a better way.

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In an increasingly globalized world, international organizations play an important role in importing and exporting. Their functions include maintaining standards to ensure safety, helping developing countries achieve economic security, and establishing norms regarding how countries make trade agreements and resolve conflicts.

Whether you’re new to international trade or a seasoned veteran, understanding the part that these organizations play is key to clear communication and compliance with both import and export regulations.

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Nothing slows down your export shipments, or worse yet, getting paid for your export shipments, more than mistakes on your documents.

Inconsistencies between documents, incorrect shipment payment terms, improper product classifications, or many other potential errors can occur when each of the export documents are created manually.

Fortunately, there's a better way.

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Shipping products seems simple, right? You simply package the product and send it to your customer. But did you know there are different types of shipment?

Depending on the size of your shipment, it may be considered parcel, less-than-load (LTL), or a full truckload (FTL) shipment. Your shipment may be too small for certain carriers, or conversely, if you have a large shipment, you may have to rely on a carrier certified to be able to ship large containers. There are also unique considerations depending on the mode of transport—whether you’re shipping via air, sea, road, or rail.

The wide variety of terms that relate to the process of moving goods through a supply chain can seem overwhelming. But understanding the different types of shipment and related terms is crucial to ensure your goods get shipped on-time, within compliance, and in good shape.

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