|
In the US, dual-use goods
goods subject to Chapter 738 of the Export
Administration Regulations (EAR), entitled
Commerce Control List (CCL), paragraphs
contain a classification number called Export
Control Classification Number (ECCN):
Commerce Control List Overview and the Country Chart
Table of Contents
§ 738.1 INTRODUCTION
§ 738.2 COMMERCE CONTROI, LIST CCL) STRUCTURE
§ 738.3 COMMERCE COUNTRY CHART
STRUCTURE
§ 738.4 DETERMINING WHETHER
A
LICENSE IS REQUIRED
SUPPLEMENT NO. 1 TO
PART
738
COMMERCE COUNTRY
CHART 1
§ 738.1 INTRODUCTION
(a) Commerce
Control
List scope
(1) In this part, references to the EAR are
references to 15 CFR chapter VII, subchapter C.
The Bureau of Industry and Security (BIS)
maintains the Commerce Control List (CCL)
within the Export Administration Regalations
(EAR), which includes items (i.e., commodities,
software, and technology) subject to the export
licensing authority of BIS. The CCL does not
include those items exclusively controlled for
export or reexport by another department or
agency of the U-.S. Government. In instances
where agencies, other than the Department of
Commerce administer controls over related
items, entries in the CCL contain a refèrence to
these controls.
(2) The CCL is contained in Supplement No. 1
to part 774 of the EAR. Supplernent No. 2 to
part 774 of the EAR contains the General
Technology and Software Notes relevant to
entries contained in the CCL.
(3) Items that warrant control for export or
reexport but currently are not permanently
classiji'ed on the
COE Items subject to
temporary CCL controls are classified under the
ECCN 0Y521 series (i.e., 0A521, 0B521,
0C521, 0D521, and 0E521) pursuant to §
742.6(a)(7) of the EAR while a determination is
made as to whether classification under a revîsed
or new ECCN, or an EAR99 designation, is
appropriate.
(b) Commerce
Country
Chart scope
BIS also maintains the Commerce Country
Chart. The Commerce Country Chart, located in
Supplement No. 1 to part 738, contains licensing
requirements based on destination and Reason
for Control. In combination with the CCL, the
Commerce Country Chart allows you to,
determine whether a license is required for items
on the CCL to any country in the world.
§ 738.2 COMMERCE CONTROL LIST
(CCL) STRUCTURE
(a) Categories
The CCL is divided into 10 categories,
numbered as follows:
0-Nuclear Materials, Facilities and Equipment
and Miscellancous
1 -Materials, Chemicals, "Microorganisms," and
Toxins
2-Materials Processing
3-Electronics
4-Computers
5-Telecommunications and Information Security
6-Lasers and Sensors
7-Navigation and Avionics
8-Marine
9-Acrospace and Propulsion
(b) Groups
Within each category, items are arranged by
group. Each category contains the saine five
groups. Each Group is identified by the letters
A through E, as follows :
A-Equipment, Assemblies and Components
B-Test, Inspection and Production Equipment
C-Materials
D-Software
E-Technology
(c)
Order of review
The CCL includes a Supplement No. 4 to, part
774 - Commerce Control List Order of Review.
This supplement establishes the steps (Le., the
order of review) that should bc followed in
classifying items that are "subject to the EAR-"
(d) Entries
(1) Composition of au entry. Within each
group, individual items are identified by an
Export Control Classification Number (ECCN).
Each number consists of a set of digits and a
letter. The first digit identifies the general
category within which the entry falls (e.g.,
3A001). The letter immediately following this
first digit identifies under which of the five
groups the item is listed, (e.g., 3A001). The
second digit différentiates individual entries by
identifying the type of controls associated with
the items contained in the entry (c.g., 3A001).
Listed below are the Reasons for Control
associated with this second digit.
0:
National Security reasons (including Dual Use
and Wassenaar Arrangement Munitions
List) and Items on the NSG Dual Use
Annex and Trigger List
1:
Mîssile Technology reasons
2: Nuclear Nonproliferation reasons
3: Chemical & Biological Weapons reasons
5:
Items warranting national security or
foreign policy controls at the determination
of the Department of Commerce.
6: "600 series" controls items because they are
items on the Wassenaar Arrangement
Munitions List (WAML) or formerly on
the U.S. Munitions List (USML).
9: Anti-terrorism, Crime Control, Regional
Stability, Short Supply, UN Sanctions, etc.
(i) Since Reasons for Control are not mutually
exclusive, numbers are assigned in order of
precedence. As an example, if an item is
controlled for both National Security and
Missile Technology reasons, the entry's third
digit will bc a "0". If the item is controlled only
for Missile Technology the third digit will be
(ii) The numbers in either the second or third
digit (e.g., 3A001) serve to differentiate between
multilateral and unilateral entries. An entry with
the number "9" as the second digit, identifies the
entire entry as controlled for a unilateral concerri
(e.g., 2B991 for anti-terrorisrn reasons). If the
number "9" appears as the third digit, the item is
controlled for unilateral purposes based on a
prolifération concern (e.g., 2A290 is controlled
for unilateral purposes based on nuclear
nonprolifération concerns).
(iii) The last digit withîn each entry (e.g.,
3A001) is used for the sequential numbering of
ECCNs to différentiate between entries on the
CCL.
(iv) Last two characters in a "600 series"
ECCN. The last two characters of each "600
series" ECCN generally track the Wassenaar
Arrangement Munitions List (WAML)
categories for the types of items at issue. The
WAML ML21 ("software") and MI,22
("technology") are, however, included in D
("software") and E ("technology") CCL product
groups to remain consistent with the structure of
the CCL.
(2) Reading an ECCN. An ECCN is made up
of four sections, the "I-leading," "License
Requirenients," "License Exceptions," and "List
of Items Controlled" sections. A brief
description of each section and its use follows:
(i) Heading. A description of the items
controlled is provided next to each ECCN. In
certain ECCNs, the description is a summary
and will direct you to "see List of Items
Controlled" for a complete list of items
classified under those respective ECCNs. The
"Items" paragraph in the List of Items
Controlled section will describe all of the items
that the ECCN controls for the portions of the
heading that precede the "see List of Items
Controlled" phrase. Portions of the heading that
follow the phrase are complete descriptions of
the items controlled by that portion of the
heading. If "see List of Items Controlled"
appears at the end of the heading, the "Items"
paragraph in the List of Items Controlled section
is the exclusive, complete list of the items the
ECCN controls.
(ii) License Requirements. This section
contains a separate line identifying all possible
Reasons for Control in order of precedence, and
two columns entitled "Control(s)" and "Country
Charr.
(A) The "Controls" - header identifies all
applicable Reasons for Control, in order of
restrictiveness, and to what extent each applies
(e.g., to the entire entry or only to certain
subparagraphs). Those requiring licenses for a
larger number of countries and/or items are
listed first. As you read down the list, the
number of countries and/or items requiring a
license declines. Since Reasons for Control are
not mutually exclusive, items controlled within a
particular ECCN inay be controlled for more
than one reason. The following is a list of all
possible Reasons for Control:
AT Anti-Terrorism
CB Chemical & Biological Weapons
CC Crime Control
CW Chemical Weapons Convention
El Encryption Items
FC Firearms Convention
MT Missile Technology
NS National Security
NP Nuclear Nonproliferation
RS Regional Stability
SS Short Supply
UN United Nations Embargo
SI Significant Items
SL Surreptitious Listening
(B) The "Country Chart" header identifies,
for each applicable Reason for Control, a
column name and number (e.g., CB Column 1).
These column identifiers are used to direct you
from the CCL to the appropriate column
identîfying the countries requiring a license.
Consult part 742 of the EAR for an in-depth
discussion of the licensing requirenients and
policies applicable to each Country Chart
column.
(iii) License Exceptions. This section
provides a brief eligibility statement for each
ECCN-driven License Exception that may be
applicable to your transaction, and should be
consulted only AFTER you have determined a
license is required based on an analysis of the
entry and the Country Chart. The brief
eligibility statement in this section is provided to
assist you in deciding which ECCN-driven
License Exception related to your particular item
and destination you should explore prior to
submittîng an application. The terra "Yes"
(followed in some instances by the scope of
Yes) appears next to each available ECCNdriven License Exception. Soine ECCNs have
License Exception STA exclusion paragraphs.
These paragraphs identify items for which the
Lîcense Exception STA provisions in
§ 740.20(c)(2) of the EAR may not be used, but
do not otherwise affect License Exception STA
availability. The terni "NIK' will be noted for
Lîcense Exceptions that are not available within
a particular entry. In sortie "600 series" ECCNs,
the STA license exception paragraph or a note to
the License Exceptions section contains
additional information on the availability of
License Exception STA for that ECCN. If one
or more License Exceptions appear to apply to
your transaction, you must consult part 740 of
the EAR to review the conditions and
restrictions applicable to each available License
Exception. The list of License Exceptions
contained within each ECCN is not an allexclusive list. Other License Exceptions, not
based on particular ECCNs, may bc available.
Consult part 740 of the EAR to determine
eligibility for non-ECCN-driven License
Exceptions.
(iv) List
of Items Controlled
(A) Related définitions. This header
identifies, where appropriate, definitions or
parameters that apply to all items controlled by
the entry. The information provided in this
section is unique to the entry, and hence not
listed in the definitions contained in part 772 of
the EAR.
(B) Related controls. If another U.S.
government agency or department bas export
licensing authority over items related to those
controlled by an entry, a statement is included
identifying the agency or department along with
the applicable regulatory cite. An additional
cross-refèrence may bc included in instances
where the scope of controls differs between a
CCL entry and îts corresponding entry on list
maintained by the European Union. This
information is provided to assist readers who, use
both lists.
(C) Items. This paragraph describes the
relationship between the "items" paragraph and
ECCN headings and will assist your
understanding as you classify items on the CCL.
When the heading contains the phrase "sec List
of Items Controlled," the portion of the heading
preceding that phrase is only a summary of the
items controlled by the ECCN and the "items"
paragraph contains an exclusive list of items
described in the heading. Paragraphs
(d)(2)(iv)(C)(1), (2) and (3) of this section
provide examples of the thme différent uses of
the phrase "(sec List of Items Contrelled)" in
ECCN headings. Each heading on the CCL uses
one of these threc structures. Understanding the
relationship between the heading and the
&4ite11is1~ paragraph is important when classifying
items that are "subject to the EAR7' on the CCL.
(1) "(Sec List of Items Controlled)" is at
the end of the ECCN heading. An example of
an ECCN where all of the heading text precedes
the phrase "(sec List of Items Controlled)" îs
ECCN 8A002 Marine systems, equipment,
"parts" and "components," as follows (sec List
of Items Controlled). ECCNs 1A001, 3A001,
6A001, 7A004 and 9AO12 are other examples
where all of the heading text precedes the phrase
"(sec List of Items Controlled)." In thesc types
of headings, the items paragraplis must bc
reviewed to determine whether your item is
contained within the heading and classified
under that ECCN.
(2) "(Sec List of Items Controlled)" is in
the middle of the ECCN heading. If the phrase
"(sec List of Items Controlled)" appears in the
middle of the ECCN heading, then all portions
of the heading that follow the phrase "(sec List
of Items Controlled)" will list items controlled in
addition to the list in the "items" paragraph. An
example of such a heading is ECCN 2B992
Non-"numerically controlled" machine t00ls for
generating optical quality surfaces, (sec List of
Items Controlled) and "specially designed"
"parts" and "components" therefor. Under the
ECCN 2B992 example, the "îtems" paragraph
must be reviewed to determine whether your
item is contained within the first part of the
heading ("non-'numerically controlled' machine
t00ls for generating optical quality surfaces')
and classified under 2B992. The second part of
the ECCN 2B999 headîng ("and 'specially
designed' 'parts' and 'components' therefor)
contains the exclusive list described in the
heading. ECCNs 1A006, 3B992, 4A001, 6A006
and 7A001 are other examples where the phrase
"(see List of Items Controlled)" appears in the
middle of the ECCN heading.
(3) ECCNs that do not use the phrase
"(see List of Items controlled)." When all items
classified in the ECCN are listed in the heading,
a sentence is generally included in the "items"
paragraph to direct you to the heading. An
example of such a heading is ECCN 4E980
"Technology" for the "development,"
"productioW' or "use" of commodifies controlled
by 4A980. ECCNs 0A982, 5DI01, 8D001 and
9A002 are other examples where the heading is
the exclusive description of the items classified
under those respective ECCNs.
§ 738.3 COMMERCE COUNTRY
CHARTSTRUCTURE
(a) Scope
The Commerce Country Chart allows you to
determine the Commerce Control List (CCL)
export and reexport license requirements for
most items listed on the CCL. Such license
requirements are based on the Reasons for
Control listed in the Export Control
Classification Number (ECCN) that applies to
the item. Some ECCNs, however, impose
license requirements either without refèrence to
a reason for control code that is listed on the
Commerce Country Chart, or in addition to such
a refèrence. Those ECCNs may state their
license requirements in full in their "Reasons for
Control" sections or they may refer the reader to
another provision of the EAR for license
requirement information. In addition, sorne
ECCNs do not impose license requirements, but
refer the reader to the regulations of another
government agency that may impose license
requirements on the items described in that
ECCN.
(1) ECCNs 0A983, 5A001.f.1, 5A980, 5D001
(for 5A001.f.1, or for 5E001.a (for 5A001.f.l
or for 5D001.a (for 5A0011.1»), 5D980,
5E001.a (for 5A001.f.1, or for 5D00l.a (for
5A001.f.1))) and 5E980. A license is required
for all destinations for items controlled under
these entries. For items controlled by 0A983,
5E001.a (for 5A001.f.1, or for 5D001a (for
5A001.f.1» and 5E980, no license exceptions
apply. For items controlled by 5A0011.1,
5A980, 5D001 (for 5A001.f.1 or for 5E001.a
(for 5A001.f;1, or for 5D001a (for 5A001.f.1)))
and 5D980, License Exception GOV may apply
if your item is consîgned to and for the official
use of an agency of the U.S. Government (sec §
740.2(a)(3). If your item is controlled by
0A983, 5A001.f.1, 5A980, 5D001 (for
5A00I.f.1 or for 5E001.a (for 5A001.f.1, or for
5D001a (for 5A001.f.l), 5D980, 5E001.a (for
5A001.f.l, or for 5D001a (for 5A001.f.1» or
5E980 you should proceed directly to Part 748
of the EA-R for license application instructions
and §§ 742.11 or 742.13 of the EAR for
information on the lîcensing policy relevant to
these types of applications.
(2) [RESERVED]
(b) Countries
The first column of the Country Chart lists
countries in alphabetical order. There are a
number of destinations that are not listed in the
Country Chart contained in Supplement No. 1 to
part 738. If your destination is not listed on the
Country Chart and such destination is a territory,
possession, dependency or department of a
country included on the Country Chart, the EAR
accords your destination the same licensing
treatment as the country of which it is a territory,
possession, dependency or department. For
example, if your destination is the Cayman
Islands, a dependent territory of the United
Kingdom, refer to, the United Kingdom on the
Country Chart for licensing requirements. In
addition, if your destination is Liechtenstein,
which serves as one territory with Switzerland
for purposes of the EAR, refer to Switzerland on
the Country Chart for licensing requirements.
(c)
Colamns
Stretching out to the right are horizontal headers
identifying the various Reasons for Control.
Under each Reason for Control header are
diagonal column identifiers capping individual
colurrins. Each column identifier consists of the
two letter Reason for Control and a column
number (e.g., CB Column 1). The column
identifiers correspond to, those listed in the
"Country Charf' header within the "License
Requîrements" section of each ECCN.
(d)
Cells
The symbol "X" is used to denote licensing
requirements on the Country Chart. If an "X"
appears in a particular cell, transactions subject
to that particular Reason for Control/Destînation
combination require a license. There is a direct
correlation between the number of "X"s
applicable to your transaction and the number of
licensing reviews your application will undergo.
§ 738.4 DETERMINING WHETHIER A
LICENSE IS REQUIRED
(a) Using the CCL and the Country Chart
(1) Overview. Once you have determined that
your item is classified under a specific ECCN,
you must use information contained in the
"License Requirements" section of that ECCN
in corabination with the Country Chart to decide
whether a license is required. Note that not all
license requirements set forth under the "License
Requirements" section of an ECCN refer you to
the Commerce Country Chart, but in some cases
this section will contain refèrences to a specific
section in the EAR for license requirements. In
such cases, this section would not apply.
(2) License decision making process. The
following decision making process must bc
followed in order to determine whether a license
is required to export or reexport a particular item
to a specific destination:
(ii) Review the Country Chart. With each of
the applicable Country Chart Column identifiers
noted, turn to the Country Chart (Supplement
No. 1 to part 738). Locate the correct Country
Chart column identifier on the diagonal
headings, and determine whether an "X" is
marked in the cell next to the country in question
for each Country Chart column identified in the
applicable ECCN. If your item is subject to
more than one reason for control, repeat this step
using each unique Country Chart column
identifier.
(A) If yes, a license application must bc
submitted based on the particular reason for
control and destination, unless a License
Exception applies. If "Yes" is noted next to any
of the listed License Exceptions, you should
consult part 740 of the EAR to determine
whether you can use any of the available ECCNdriven License Exceptions to, effect your
shipment, rather than applying for a license.
Each affirmative license requirement must be
overcome by a License Exception. If you are
unable to qualify for a License Exception based
on each license requirement noted on the
Country Chart, you must apply for a license.
Note that other License Exceptions, not related
to the CCL, may also apply to your transaction
(See part 740 of the EAR).
(B) If no, a license is not required based on
the particular Reason for Control and
destination. Provided that General Prohibitions
Four through Ten do not apply to your proposed
transaction and the License Requirement section
does not refer you to any other part of the EAR
to determine license requirements. For example,
any applicable encryption classification
requirements described in § 740.17(b) of the
EAR must bc met for certain mass market
encryption items to affect your shipment using
the symbol "NLR." Proceed to parts 758 and
762 of the EAR for information on export
clearance procedures and recordkeeping
requirements. Note that although you may stop
after determining a license is required based on
the first Reason for Control, it is best to work
through each applicable Reason for Control. A
full analysis of every~ possible licensing
requirement based on each applicable Reason
for Control is required to determine the most
advantageous License Exception available for
your particular transaction and, if a license îs
required, ascertain the scope of review
conducted by BIS on your license application.
(1) Scope. The following sample entry and
related analysis is provided to illustrate the type
of thought process you must complete in order
to determine whether a license is required to
export or reexport a particular item to a specific
destination using the CCL in combination with
the Country Chart.
(2) Sample CCL entry.
2A000: Entry heading.
License requirements
Reason for Control: NS, NP, AT
|
|
Country chart
(See Supp. No. 1 to
part 738).
|
|
|
|
|
|
|
|
|
|
(3) Sample analysis. After consulting the
CCL, I determine my item, valued at $10,000, is
classified under ECCN 2A000.a. 1 read that the
entire entry is controlled for national security,
and anti-terrorism reasons. Since my item is
classified under paragraph a, and not b, 1
understand that though nuclear nonprolifération
controls apply to a portion of the entry, they do
not apply to my item. 1 note that the appropriate
Country Chart column identifiers are NS
Column 2 and AT Column 1. Tuming to the
Country Chart, 1 locate my specific destination,
India, and see that an 'W appears in the NS
Column 2 cell for India, but not in the AT
Column 1 cell. 1 understand that a license is
required, unless my transaction qualifies for a
License Exception. From the License Exception
LVS value listed in the entry, I know
immedîately that my proposed transaction
exceeds the value limitation associated with
LVS. Noting that License Exception GBS is
"Yes" for this entry, 1 turn to part 740 of the
EAR to review the provisions related to use of
GBS.
|
