Export Control Overview
John R. Murphy
Business Development Manager
Sartomer Company
October 4, 2004
Boston, MA
The U.S. Department of Commerce
through the Bureau of Industry
and Security (BIS) controls the
export of most commercial items
(products, services and technical
data) by means of the Export
Administration Regulations (EAR)
www.gpo.gov/bis
Other agencies regulate more
specialized exports, e.g., the U.S.
Department of State has authority
over defense articles and services
Majority of U.S. commercial exports
do not require a license and are
exported under the designation “No
License Required” (NLR)
Most BIS regulated items which
require an export license are termed
“dual-use” having both commercial
and military or proliferation
applications. Example: Hydroxylterminated polybutadiene resins
which are used in the binders of
solid rocket propellants as well as in
commercial elastomer applications
What is an export?
Any item that is sent from the U.S. to a
foreign destination, regardless of the
means of transport. “Items” Include
commodities, software or technology and
technical information
The release of regulated technology to a
foreign national in the U.S. is deemed an
export under the EAR
When is a export license required?
What are you exporting?
Where are you exporting?
Who will receive the item?
What is the use of the item?
What are you exporting?
Does the item have a specific
Export Control Classification
Number (ECCN)? The ECCN is
an alpha-numeric code that
describes the item and shows the
controls placed on that item. All
ECCN’s are listed in the
Commerce Control List (CCL)
Commerce Control List Categories
0 = Nuclear Materials, Facilities & Equipment
1 = Materials, Chemicals, etc.
2 = Materials Processing
3 = Electronics
4 = Computers
5 = Telecommunications & Information Security
6 = Sensors and Lasers
7 = Navigation and Avionics
8 = Marine
9 = Propulsion Systems, Space Vehicles and
Related Equipment
The Commerce Control List is
Subdivided into Product Groups
A.
B.
C.
D.
E.
Systems, Equipment and Components
Test, Inspection and Production Equipment
Materials
Software
Technology
Classifying Your Item
Proper classification is essential to
determining licensing requirements
under the EAR. You may classify the
item on your own, check with the
manufacturer, or request the BIS to
determine the ECCN.
First determine the proper CCL category
then the applicable product group.
Example: Hydroxyl-terminated
Polybutadiene (HTPB) Resin
Chemical => Category 1
Material => Product Group C
Searching the Commerce Control List you find:
1C111 Propellants and constituent chemicals for
propellants
Reason for Control:
Missile Technology (Country Chart Column 1)
Anti-Terrorism (Country Chart Column 1)
And as a subsection:
b.2 Hydroxyl-terminated polybutadiene
(HTPB), other than that controlled by U.S.
Munitions List
HTPB with OH functionality of 2.28, hydroxyl
value of < 0.77 meq/g and viscosity @ 30°C
of < 47 poise is controlled under the
International Traffic in Arms Regulations
(ITAR) by the U.S. Department of State
Where are you exporting?
Restrictions vary from country to country.
The most restricted destinations are the
embargoed countries and those designated
as supporting terrorist activities.
Once the item is classified, the next step is to
determine the need for an export license
based on the “reasons for control” and the
country of ultimate destination.
Supplement No. 1 to Part 738 of the EAR
Commerce Country Chart
Reason for Control
Countries
CB CB CB
1 2 3
Canada
X
X X
X X X
X X
Chile
China
Colombia
NS NS
1 2
X X
X X
X X
CB = Chemical & Biological Weapons
NS = National Security
MT = Missile Technology
AT = Anti -Terrorism
MT
1
X
X
X
AT
1
What if the “item” contains HTPB
as part of the formulation?
“Rule of Thumb” 1: If the HTPB can be
easily separated or if the item can be
used as is in the manufacture of a
propellant, then a license is required.
Examples: HTPB combined with filler,
that can be removed by filtration, or a
small amount of plasticizer
“Rule of Thumb” 2: If the HTPB cannot
be extracted and the item can not be
used as is in a propellant or if the
hydroxyl groups have been reacted,
then a license is not required.
Examples: Reaction of the HTPB to
form a polyurethane, a prepolymer or if
it is incorporated into a liquid formulation
not suitable for binder applications.
Note: Only the BIS can determine if
the export of a formulated item
containing HTPB in its original form
requires a license.
A request to the BIS for an Advisory
Opinion (see Part 748.3 of the EAR) is
the proper method to ensure that a
license is not required in cases of
uncertainty.
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 require a
license based on the ECCN and
Commerce Country Chart.
What will be the use of the item?
Some end-uses are prohibited while
others may require a license. For
example, you may not export to
certain entities involved in the
proliferation of weapons of mass
destruction and the missiles that
deliver them, without specific
authorization, regardless of your item
Applying for an Export License
If a license is required, the exporter
must prepare Form BIS-748P,
“Multipurpose Application Form” and
submit it to the BIS for review and
approval (Part 748 of the EAR).
Applications may be submitted on-line
via the Simplified Network Application
Process (SNAP) or by mail.
Additional Support Requirement
Prior to submission of the license
application it is necessary to obtain a
signed copy of Form BIS-711,
Statement by Ultimate Consignee
and Purchaser.
www.bxa.doc.gov/licensing/bis711.pdf
Form BIS-711
This document provides information
regarding the end user, application
and agreement to not improperly
reexport the item. The form is not
submitted to the BIS, but is retained
in the applicant’s files.
Export License Status Tracking
Using the number printed on the
license application, the BIS
automated System for Tracking
Export License Applications
(STELA) can used to determine
licensing status at 202-482-2752
Export Licenses
Export licenses from the BIS are
valid for a period of two years.
Multiple shipments to the parties
listed on the license may be
made during that time until the
total volume permitted under the
license is shipped.