Not all export classifications are the same. Do you understand which export classification is needed for your international shipment, export of technology, or deemed export transactions?
Here are 4 key points about U.S. export classification numbers that will help you figure out which number is relevant – and when. We explain the difference between these export numbers, what these export classification numbers stand for, the government regulations in which they are rooted, and when you need to use them.
Department of Commerce has Two Different Export Numbers
While both export classification numbers, Export Control Classification Numbers (ECCNs) and Schedule B Numbers, stem from the U.S. Department of Commerce regulations, they are driven by two different agencies with the Commerce Department: BIS and the Census Bureau, respectively. BISadministers the Export Administration Regulations or EAR.
ECCN vs Schedule B Export Classification
Export Control Classification Numbers (ECCNs) are used to identify items that are subject to export controls under the EAR. These items may include goods, software, and technology that have a potential military or strategic use. ECCNs are used to determine whether a license is required for the export of a particular item.
Schedule B Numbers, on the other hand, are used to classify goods for export purposes. These numbers are used by the Census Bureau to collect data on U.S. exports. Schedule B numbers are used to determine the statistical reporting requirements for exports and do not indicate whether a license is required for the export of a particular item.
Export classification numbers are rooted in U.S. government regulations that are designed to protect national security and economic interests. The EAR, administered by BIS, regulates the export of dual-use items, which are items that have both civilian and military use. The Census Bureau administers the Foreign Trade Regulations (FTR), which require exporters to report certain information about their exports, including the Schedule B number.
When to Use Them?
It is important to use the correct export classification number for your international shipment, export of technology, or deemed export transactions. Failure to use the correct number can result in fines, penalties, and even criminal charges. If you are unsure which number to use, you should consult with an export compliance specialist or the relevant government agency.
In conclusion, understanding the difference between ECCNs and Schedule B numbers, the government regulations in which they are rooted, and when to use them is essential for any business involved in international trade. By using the correct number, you can ensure compliance with U.S. export regulations and avoid costly penalties.