Some goods fall under the Export Administration Regulations (EAR), but they aren't listed in the US Munitions List (USML) or the Commodity Control List (CCL). Moreover, an exporter doesn't even require a license for shipping such items in most situations. These goods are classified as EAR99.
What does EAR99 stand for?
The products that don't require a license to export from the US or re-export worldwide are classified as EAR99. This category typically includes low-tech consumer products and services. Even though such goods may not require a license, the authorities must ensure that an EAR99 product isn't exported to an embargoed country, shipped to a prohibited user, or used for illegal purposes. These products fall under the supervision of the US Department of Commerce.
EAR99 regulations
Here are some regulations for EAR99 products:-
-They can usually be exported to other countries without any hassles, provided that their end-use is not prohibited.
- If the proposed export of the product is to a country that the US has banned, then the exporter might be required to obtain a license.
- The Export Control Classification Number (ECCN) is assigned to different products based on their tangibility, performance characteristics, technical parameters, and end-use. Since EAR99 products aren't listed in the CCL, they aren't assigned an ECCN.
Why use EAR99?
There are three essential reasons why exporters can consider using EAR99 marked products:-
1. Less regulation
The EAR99 classification vouches that the item is harmless and suitable for consumer use. Since EAR99 marked products don’t fall under the CCL, they are usually subjected to fewer regulations than other products.
2. No license required
Exporters don't need a license for exporting most EAR99 products. This helps save time and resources since applying for an export license can take longer and involve multiple charges.
However, exporters should remember that even EAR99 products are subjected to several routine screenings before exporting.
3. Faster shipping
Once an EAR99 marked product clears the mandatory screening, they usually don't undergo constant supervision. So, there are no regulatory halts in the shipping process, resulting in faster shipping that streamlines export.
EAR99 licensing requirements & exceptions
As mentioned above, EAR99 marked products usually don't require an export license. However, given below are certain exceptions.
- If the product is being exported to an embargoed country.
- If the product is being shipped to a dangerous/prohibited end-user.
- The final use of the product is illegal.
EAR99 products and item lists
Products classified as EAR99 usually include low-tech consumer goods and services. These items aren't limited to also comprise the following:-
- Packaged food
- Stationery items
- Household goods
- Daily-use electronics
- Clothing items
- Footwear
How to find the EAR99 number?
EAR99 products aren't assigned a specific number. But knowing how to check whether a product falls under the EAR99 category is essential. Here is how you can find your product's EAR99 number:-
Step 1: You first need to determine your product's category. For this, go through the product details and determine whether your product falls into any of the categories listed in the CCL.
Step 2: Check the CCL thoroughly to find out if your product is listed in it or not. If it isn't, then the product is classified as EAR99.
For example, an exporter plans to ship several clothing items from the US. To ensure that their products are categorized as EAR99, they must make the products suitable for consumer use. They will then have to check the CCL and confirm that the product isn't listed. Finally, they must ensure that the products aren't exported to a country restricted by the US and aren't used for illegal purposes.
When does EAR99 apply?
EAR99 applies to products that come under the jurisdiction of the Bureau of Industry and Security BIS but aren't listed in the CCL. Such products are granted a No License Required (NLR) status.
A product applies for EAR99 if it meets the following conditions:-
- The item isn't subjected to International Traffic in Arms Regulation (ITAR).
- The article isn't subject to any other federal agency’s export regulation.
- The article isn't listed on the CCL.
EAR99 vs ITAR vs ECCN vs NLR
Since these terms are quite often used in the context of regulated products, understanding in detail about them will help avoid confusion.
EAR99
We’ve already covered EAR99 in detail above.
ITAR
International Traffic in Arms Regulation covers export regulations of the following items:-
- Defense articles
- Heavy military equipment
- Significant defense equipment
- Defense services
- Technological data and software
All products regulated under the ITAR are listed in the USML.
ECCN
Export Control Classification Number (ECCN) is a five-character alphanumeric code provided on the CCL. This code is divided into 10 broad categories, each of which is further classified into five sub-groups. The first character of the ECCN identifies the broad type to which the product belongs, while the second determines the sub-group.
We've also mentioned details on ECCN in the EAR99 regulations section above.
NLR
EAR99 products are generally shipped under the No License Required (NLR) category. However, this status isn't granted to EAR99 products if they are being exported to an embargoed country or for a prohibited end-use. If such a situation arises, the exporter will need a license despite their product belonging to the EAR99 category.
FAQs on EAR99
Is the export of EAR99 items controlled?
Yes, EAR99 items are regulated by the BIS. But, they don't have a specific ECCN on the CCL and don’t require an export license in most situations.
Is EAR99 for dual use?
It depends from item to item. If an item is a dual-use product but isn't categorized under the CCL, it is classified as EAR99.
Is EAR99 different from an ECCN?
Yes, both the terms are different. EAR99 products come under the regulation of BIS but aren't listed in the CCL, so they don't have a specific ECCN. ECCNs are assigned to only those products that aren't categorized as EAR99.
How do I know if my product is EAR99?
You need to check if the product is listed under any of the 10 categories of the CCL. If not, then it can be classified as an EAR99 product.
Why is ECCN required?
ECCNs help businesses determine whether an export license is required to export goods from the US to other parts of the world. This number also lets the government know if they need to provide any unique control before shipping a particular product.
