Export controls regulate the shipment of controlled goods, technology, and software to foreign countries or foreign persons — including foreign nationals working in the United States. Violations can result in criminal prosecution, massive fines, and loss of export privileges. For any business engaged in international trade, understanding export controls is essential.
The Export Administration Regulations (EAR)
The Bureau of Industry and Security (BIS) administers the Export Administration Regulations, which control "dual-use" items — products and technologies that have both civilian and military applications. Items are classified using the Commerce Control List, which assigns Export Control Classification Numbers (ECCNs) based on technical characteristics.
The CCL categorizes items by their performance level and intended use. Higher performance items face stricter controls. If an item isn't specifically listed on the CCL, it may be classified as "EAR99" — subject to the lowest level of controls, though catch-all restrictions can still apply.
The International Traffic in Arms Regulations (ITAR)
The State Department's Directorate of Defense Trade Controls (DDTC) administers ITAR, which controls defense articles and services on the US Munitions List (USML). ITAR controls are stricter than EAR and include not just the items themselves but related technical data and defense services. If you're dealing with anything that could have military applications — even tangentially — ITAR compliance needs to be part of your program.
Who Is Affected
Export controls apply to any person or organization that exports controlled items. An export includes sending items out of the US, transferring items to foreign nationals in the US (deemed exports), and sharing controlled technology through phone calls, emails, or presentations to foreign persons. If your employees include foreign nationals working with controlled technology, you may need ITAR or EAR compliance even without any actual cross-border shipment.