Includes the U.S. government export controls that companies need to abide by when exporting to this country.
The United States imposes export controls to protect national security interests and promote foreign policy objectives related to dual-use goods and less-sensitive military items through implementation of the Export Administration Regulations (EAR) (15 CFR Parts 730–774). In coordination with the EU, the U.S. Department of Commerce significantly strengthened the export-control regime for products, services, and technology destined for Russia as a result of Russia’s invasion of Ukraine. These measures also apply to Belarus because of that government’s material support to the invasion. In general, these measures target Russia’s defense, aerospace, maritime, and oil industries. Included within their scope are restrictions on exports of electronics, computers, telecommunications products and services, information security products and services, lasers and sensors, semiconductors and semiconductor manufacturing equipment, and luxury goods. The U.S. Department of Commerce encourages U.S. exporters to familiarize themselves with the new requirements to minimize the risk that they do business with an entity attempting to circumvent these measures. The Bureau of Industry and Security (BIS) is responsible for the EAR and has published the measures adopted in response to Russia’s illegal invasion.
BIS is comprised of two entities: Export Administration (EA), which is responsible for processing license applications, counseling exporters, and drafting and publishing changes to the EAR; and Export Enforcement (EE), which is responsible for compliance monitoring and enforcement of the EAR. BIS works closely with U.S. embassies, foreign governments, industry, and trade associations to ensure that exports from the United States are secure and items subject to the EAR comply with the regulations. BIS officials conduct site visits, known as end-use checks (EUCs), globally with end-users, consignees, and/or other parties to transactions involving items subject to the EAR to verify compliance.
An EUC is an on-site verification of a non-U.S. party to a transaction to determine whether the party is a reliable recipient of items subject to the EAR. EUCs are conducted as part of BIS’s licensing process, as well as its compliance program, to determine if items were exported with a valid BIS authorization or otherwise consistent with the EAR. Specifically, an EUC verifies the bona fides of transactions subject to the EAR, to include confirming the legitimacy and reliability of the end use and end user; monitoring compliance with license conditions; and ensuring items are used, re-exported, or transferred (in-country) in accordance with the EAR. These checks might be completed before the export of items pursuant to a BIS export license in the form of a pre-license check (PLC) or following an export from the United States during a post-shipment verification (PSV), regardless of whether a BIS license was required.
BIS officials rely on EUCs to safeguard items subject to the EAR from diversion to unauthorized end uses/users and destinations. The verification of a foreign party’s reliability facilitates future trade, including pursuant to BIS license reviews. If BIS is unable to verify the reliability of the company or is prevented from accomplishing an EUC, the company may receive, for example, more regulatory scrutiny during license application reviews or be designated on BIS’s Unverified List or Entity List, as applicable.
BIS has developed a list of “red flags,” or warning signs, and compiled “Know Your Customer” guidance intended to aid exporters in identifying possible violations of the EAR. Both of these resources are publicly available, and their dissemination to industry members is highly encouraged to help promote EAR compliance.
BIS also provides a variety of training sessions to U.S. exporters throughout the year. These sessions range from one- to two-day seminars that focus on the basics of exporting to coverage of more advanced, industry-specific topics. Interested parties can check a list of upcoming seminars and webinars or reference BIS-provided online training. BIS’s export control officers (ECOs) located at U.S. embassies and consulates in seven overseas locations also conduct outreach to raise awareness of re-export control requirements with foreign business communities.
BIS and the EAR regulate transactions involving the export of “dual-use” and less-sensitive military items (commodities, software, and technology) as well as some U.S.-person activities. For advice and regulatory requirements on items under the export control jurisdiction of other U.S. Government agencies, exporters should consult those agencies. For example, the U.S. Department of State’s Directorate of Defense Trade Controls has authority over the defense articles and services that are not subject to the EAR. A list of other agencies involved in export control can be found on the BIS website and in Supplement No. 3 to Part 730 of the EAR.
The EAR is available on the BIS website and on the e-CFR (Electronic Code of Federal Regulations) and is updated as needed. The Consolidated Screening List (CSL) is a list of parties for which the United States Government maintains restrictions on certain exports, reexports or transfers of items. The CSL consolidates 11 export screening lists of the Departments of Commerce, State, and the Treasury into a single data feed as an aid to industry in conducting electronic screens of parties to regulated transactions. Exporters should determine the export requirements specific to their proposed transaction by classifying their items before export, reviewing the EAR’s requirements specific to the item(s) and the proposed end use and end user, and consulting the CSL to determine if any parties to the transaction may be subject to specific license requirements.
Assistance is available from BIS by calling one of the following numbers:
- (202) 482-4811 - Outreach and Educational Services Division (Washington, DC - Monday-Friday, 8:30 a.m.-5:00 p.m. ET)
- (949) 660-0144 - Western Regional Office (Irvine, CA - Monday-Friday, 8:00 a.m.-5:00 p.m. PT)
- (408) 998-8806 - Northern California branch (San Jose, CA - Monday-Friday, 8:00 a.m.-5:00 p.m. PT)
You may also e-mail your inquiry to the Export Counseling Division of the Office of Exporter Services at ECDOEXS@bis.doc.gov.