Published by Norka M. Schell
Part 1 of 10
BACKGROUND
The restriction by one country of its trade with another has been an instrument of policy throughout history. For a long time, such restrictions were imposed only episodically, in times of conflict or strained relations.
The forebear of the principal United States export control legislation was the 1949 Export Control Act. Export Control regulations are federal laws that prohibit the unlicensed export of certain commodities or information for reasons of national security or protection of trade. These two concerns we soon reflected in the establishment by NATO allies of a mechanism, which came to be known as CoCom (for Coordinating Committee) designed to prevent diversion to the East of resources for the reconstruction of Europa and counter the perceived Soviet military threat.
The year after the enactment of the Export Control Act, President Truman made use of the 1917 Trading With the Enemy Act (TWEA) in cutting off trade with China and North Korea at the time of the 1950 entrance of Chinese forces into Korean conflict. This set a pattern that has continued: using the successors to the Export Control Act as authority for export control regimes to screen and selectively license certain export; using TWEA and the related 1977 International Emergency Economic Powers Act (IEEPA) as authority for broader trade and financial restrictions, including comprehensive export embargoes, against specific countries.
WHY ARE CERTAIN EXPORTS CONTROLLED?
WHAT IS AN EXPORT?
An export is any oral, written, electronic or visual disclosure, shipment, transfer or transmission of commodities, technology, information, technical data, assistance or software codes to:
WHO CONTROLS EXPORTS FROM THE UNITED STATES?
The Bureau of Export Administration (BXA) of the United States Department of Commerce controls exports from the United Stated of a wide range of products, materials technology and software. These controls are contained in the Export Administration Regulation (EARs).
WHAT IS SUBJECT TO THE EARS?
The involvement of the U.S. -origin content or technology can make some foreign-origin items "subject to the EAR."
This universe is significantly narrowed by several exclusions in the EARs, including:
That which is subject to the EARs may require a license for export or reexport. There is usually a lengthy processing time period of currently three months. Denial is possible and aapproval may contain restrictions.
License requirements are dependent upon an item's technical characteristics, the destination, the end-user, and the end-use. An exporter must determine whether s/he requires a license. When making that determination s/he should consider what, where, who, and what.
WHAT IS BEING EXPORTING?
A key in determining whether an export license is needed from the Department of Commerce is knowing whether the item you intend to export has a specific Export Control Classification Number (ECCN). The ECCN is an alpha-numeric code, e.g., 3A001, that describes the item and indicates licensing requirements.All ECCNs are listed in the Commerce Control List (CCL) which is available on the Government Printing Office website. The CCL is divided in to ten broad categories and each category is further subdivided into five product groups.
WHERE IS IT BEING EXPORTED TO?
Exports to embargoed countries and those designated as supporting terrorist activities such as Cuba, Iran, North Korea, North Sudan, and Syria are more restricted. However restrictions varies from country to country.
WHO WILL RECEIVE THE ITEM?
Certain individuals and organizations are prohibited from receiving U.S. exports and others may only receive goods if they have been licensed, even items that do not normally require a license based on the ECCN and Commerce Country Chart or based on an EAR99 designation.
WHAT WILL THE ITEM BE USED FOR?
A relative small percentage of total U.S. exports require a license, while some end-uses are prohibited.
Next week I will write about the "prohibitions."
_____________________
The information extacted from Authors
Cecil Hunt - Export Controls, 639 International Trade for the Nonspecialist, Second Edition by Paul H. Vishny
Bureau of Industry and Security U. S. Department of Commerce website last visited on May 27, 2011
The University of Tennessee website
Part 1 of 10
BACKGROUND
The restriction by one country of its trade with another has been an instrument of policy throughout history. For a long time, such restrictions were imposed only episodically, in times of conflict or strained relations.
The forebear of the principal United States export control legislation was the 1949 Export Control Act. Export Control regulations are federal laws that prohibit the unlicensed export of certain commodities or information for reasons of national security or protection of trade. These two concerns we soon reflected in the establishment by NATO allies of a mechanism, which came to be known as CoCom (for Coordinating Committee) designed to prevent diversion to the East of resources for the reconstruction of Europa and counter the perceived Soviet military threat.
The year after the enactment of the Export Control Act, President Truman made use of the 1917 Trading With the Enemy Act (TWEA) in cutting off trade with China and North Korea at the time of the 1950 entrance of Chinese forces into Korean conflict. This set a pattern that has continued: using the successors to the Export Control Act as authority for export control regimes to screen and selectively license certain export; using TWEA and the related 1977 International Emergency Economic Powers Act (IEEPA) as authority for broader trade and financial restrictions, including comprehensive export embargoes, against specific countries.
WHY ARE CERTAIN EXPORTS CONTROLLED?
- National Security
- Proliferation of chemical and biological
- Nuclear Nonproliferation
- Missile Technology
- Anti-Terrorism (Cuba, Iran, North Korea, Lybia, Suddan and Syria)
- Crime Control
- High Performance Computer
- Regional Stability
- Short Supply
- U.N. Sanctions
WHAT IS AN EXPORT?
An export is any oral, written, electronic or visual disclosure, shipment, transfer or transmission of commodities, technology, information, technical data, assistance or software codes to:
- Anyone outside the United States including a U. S. citizen
- A non-U.S. individual wherever they are (deemed export)
- A foreign embassy or affiliate
WHO CONTROLS EXPORTS FROM THE UNITED STATES?
The Bureau of Export Administration (BXA) of the United States Department of Commerce controls exports from the United Stated of a wide range of products, materials technology and software. These controls are contained in the Export Administration Regulation (EARs).
WHAT IS SUBJECT TO THE EARS?
The involvement of the U.S. -origin content or technology can make some foreign-origin items "subject to the EAR."
This universe is significantly narrowed by several exclusions in the EARs, including:
- Items that are exclusively controlled for export or reexport by specified agencies of the United States Government
- Publications, informational material and "publicly available techonology and software
- Foreign made items having U.S. -origin content that is below de minimis levels specified in the EARs.
That which is subject to the EARs may require a license for export or reexport. There is usually a lengthy processing time period of currently three months. Denial is possible and aapproval may contain restrictions.
License requirements are dependent upon an item's technical characteristics, the destination, the end-user, and the end-use. An exporter must determine whether s/he requires a license. When making that determination s/he should consider what, where, who, and what.
WHAT IS BEING EXPORTING?
A key in determining whether an export license is needed from the Department of Commerce is knowing whether the item you intend to export has a specific Export Control Classification Number (ECCN). The ECCN is an alpha-numeric code, e.g., 3A001, that describes the item and indicates licensing requirements.All ECCNs are listed in the Commerce Control List (CCL) which is available on the Government Printing Office website. The CCL is divided in to ten broad categories and each category is further subdivided into five product groups.
- A. Systems, Equipment and Components
- B. Test, Inspection and Production Equipment
- C. Material
- D. Software
- E. Technology
WHERE IS IT BEING EXPORTED TO?
Exports to embargoed countries and those designated as supporting terrorist activities such as Cuba, Iran, North Korea, North Sudan, and Syria are more restricted. However restrictions varies from country to country.
WHO WILL RECEIVE THE ITEM?
Certain individuals and organizations are prohibited from receiving U.S. exports and others may only receive goods if they have been licensed, even items that do not normally require a license based on the ECCN and Commerce Country Chart or based on an EAR99 designation.
WHAT WILL THE ITEM BE USED FOR?
A relative small percentage of total U.S. exports require a license, while some end-uses are prohibited.
Next week I will write about the "prohibitions."
_____________________
The information extacted from Authors
Cecil Hunt - Export Controls, 639 International Trade for the Nonspecialist, Second Edition by Paul H. Vishny
Bureau of Industry and Security U. S. Department of Commerce website last visited on May 27, 2011
The University of Tennessee website
No comments:
Post a Comment