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Who has jurisdiction over your exports?Have you ever started something in haste and realized—once it was too late—that the first steps were the most crucial to get correct?
I certainly have (a few times, in fact). I bet you can think of some instances when you’ve done the same thing. From following instructions while putting together a piece of furniture to skipping a step in order to save time while cooking, these mistakes are often inconsequential or small in our daily lives. There may not be any real harm done.
However, in exporting, the opposite is true. The first step in the export compliance process is an integral part of the beginning of your journey, and it can determine if things go smoothly. Conversely, a misstep could very well lead to severe fines, loss of export privileges, and even land you in jail.
So what is that first step? It’s determining who has jurisdiction over your exports.
Before you dive deep into the Commerce Department’s Export Administration Regulations (EAR) or the State Department’s International Traffic in Arms Regulations (ITAR), you should know which set of regulations you need to be concerned with and which agency’s guidelines you must follow. What you determine about jurisdiction will set the stage for the actions you can and can’t take, and it will determine whether or you will or will not face any export restrictions or licensing requirements.
Here’s how to get started:
1. Check ITAR first to see if your product is on the U.S. Munitions List (USML).
The Directorate of Defense Trade Controls (DDTC) has a decision tool that can help exporters identify the steps they need to follow when reviewing the U.S. Munitions List (USML). This decision tool will help you classify items that are subject to the ITAR. You can check the USML online.
If your item or product is on the USML, the State Department has jurisdiction over your export. Your company must be registered with the State Department, and you must apply for an export license through the State Department.
2. Check EAR to see if your product is on the Commerce Control List (CCL).
If you don’t see your product on the USML, then it may be under the jurisdiction of the U.S. Department of Commerce, Bureau of Industry & Security’s EAR; these items require EAR classification prior to export.
EAR classification is the exercise of understanding where an item or technology falls in the Commerce Control List (CCL). The CCL describes 'dual-use' items (those items that may be considered for commercial or military use.) A classification will determine whether an export license is required based on the destination of the item or technology. It is important to note that items for purchase off-the-shelf, directly from a manufacturer, or by any other commercial means may be controlled under the EAR. Likewise, imported items (notwithstanding foreign origin) could likewise be subject to EAR restrictions upon export out of the country. (CUNY)
Here are some key steps you must take:
Look first within the new 600 series entry under the specific category for your products. These are items that used to be on the USML but were moved to the CCL as part of the export reform efforts.
Next, look at spacecraft-related items or what the USML refers to as the 9x515 ECCNs, where the x represents the five product groups: A - E.
If your item is not described in the 600 series codes or the 9x515 ECCNs, determine whether it falls within the catch-all paragraph of these classifications as parts, components, accessories or attachments specially designed for items in that specific ECCN.
If your product is not listed in the two above, look in the CCL for dual-use items.
You can use the BIS’s interactive export control classification tool, the CCL Order of Review, to help you classify items that are subject to the EAR.
3. If your product is not on any of these lists, it’s EAR99.
Items subject to the EAR that are not elsewhere specified in this CCL Category or in any other category in the CCL are designated by the number EAR99. These products can still be controlled because of end use, end user and destination controls.
Getting Help With Determining Jurisdiction
It’s important to remember that self-classification is an important responsibility that you can’t take lightly. If you have any questions or doubts, you should apply for a commodity jurisdiction request.
Commodity jurisdiction requests are processed by DDTC. To submit a request, fill out the commodity jurisdiction form on the DDTC website. You can also find contact information and answers to common questions there.
You Can’t Afford a Misstep
From the Gil Rosen Law blog:
Making mistakes can be very costly for a business and is likely to result in criminal offenses. Unless a business is absolutely certain of its determinations, the business would be advised to submit an application to DDTC to determine the jurisdiction of the item. This kind of application is known as a commodity jurisdiction and DDTC has stated that seeking and receiving a commodity jurisdiction determination is the only way to obtain legal certainty of the jurisdictional status of an item and thereby reduces the risk of civil and criminal penalties for noncompliance.
Determining who has jurisdiction over your goods is the first—and one of the most important—steps you can take in your export journey. Even if you think jurisdiction is obvious, it could be very dangerous to make an assumption and be wrong.
Like all good compliance programs, your process for determining jurisdiction should be reviewed and your decision making should be documented. This demonstrates your due diligence, so if you do something wrong, if you can prove you made an effort to try to comply with the regulations.
| Product Model | Inside Diameter | Outside Diameter | Thickness |
| CRV20XLL/3AS NTN | 12.7 | 31.75 | 20.6 |
| CRV18XLL/3AS NTN | 11.112 | 28.575 | 17.6 |