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The Least Controlled Classification Under ITAR, What is EAR99? Is it the least controlled classification under ITAR? Read on to find out. Unlike other controlled foreign-produced items, EAR99 doesn’t require a license for export from the United States or worldwide re-export. It also falls under the de minimis rule. Here are some things to consider before submitting an EAR99 license request. If you are shipping a ear99 item to Russia, read the regulations and follow the guidelines carefully.
EAR99 is the least controlled classification under ITAR
If you’re looking for the least controlled classification under ITAR, you have come to the right place. EAR99 is a classification that allows for the free flow of items to many countries. These products are not restricted, but they must be classified appropriately. In general, items classified as EAR99 can be exported without a license. However, careful due diligence is required to ensure that the item will not be shipped to a prohibited country, end user, or use.
The EAR applies to items that originated in the US and items that are produced in a foreign country with controlled US-origin content. The law also applies to certain activities carried out by US persons. A violation of the EAR can result in significant civil and criminal penalties. In recent years, US government agencies have been stepping up enforcement of the export control laws, imposing steep fines and consequences for violations.
It does not require a license to export from the US
During the licensing process, applicants must obtain documentary evidence that the proposed export is not in violation of the EAR. This duty does not apply only to License Exceptions affected by EAR language. For example, an applicant for a license must verify that the customer represents the product accurately. Misrepresentations of material facts are prohibited during the licensing process and throughout all export control documents. An exporter can rely on representations made by a customer and repeat them in an export document, but if these representations are not accurate, they are likely to trigger red flags.
Under the EAR, a person who reexports an item from a foreign country must complete Step 3 at SS 732.3(c) of this part, in addition to any steps that are related to the scope of the EAR. The reexporter must also determine whether the item is U.S. origin. If the answer is yes, then the reexporter can skip Step 3 and move directly to Step 7 at SS 732.3(b).
It does not require a license to re-export worldwide
There are specific items that need an export license, such as certain pharmaceuticals and weapons, but most consumer items do not fall into this category. For example, some electronics are EAR99-designated, and you don’t need a license to re-export these items around the world. Those items, however, must also be designated as a dual-use item under BXA.
There are certain exceptions to the de minimis license, such as items destined for Russia and Belarus. Some items on the EAR99 list cannot be exported to these countries or transferred within them. However, you can export some items to Russia without a license, if they are not designated as EAR99-designated. These include certain consumer electronics, encryption devices, and software for internet-based personal communications.
It is subject to the de minimis rule for controlled foreign-produced items
The EAR includes specific restrictions on goods that are produced or exported in other countries. Some items, such as food and medicines, are designated as EAR99, which means they must have a license to export. Others, such as aircraft, are subject to a de minimis rule for controlled foreign-produced items. This policy applies to a broad variety of products. Those affected by the rule include aircraft that contain at least 95 percent U.S. content.
The new Russia/Belarus FDP rules have become effective on March 2. Under these new rules, companies must screen all exports against a new list of entities and analyze all foreign-produced items shipped from these countries. The new scope of the de minimis rule for EAR99 items requires complex analysis. Here is an example:
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