Code of Federal Regulations (CFR) — The United States Code of Federal Regulations (CFR) is the codification of the general and permanent rules and regulations published in the Federal Register by the executive departments and agencies of the Federal Government.
Commerce Control List (CCL) – A list of items under the export control jurisdiction of the Bureau of Industry and Security, U.S. Department of Commerce. The CCL is found in Supplement 1 to part 774 of the EAR.
Commerce Control List (CCL) Category – The CCL is divided into ten categories: (0) Nuclear Materials, Facilities and Equipment, and Miscellaneous; (1) Materials, Chemicals, Microorganisms, and Toxins; (2) Materials Processing; (3) Electronics Design, Development and Production; (4) Computers; (5) Telecommunications and Information Security; (6) Sensors and Lasers; (7) Navigation and Avionics; (8) Marine; (9) Propulsion Systems, Space Vehicles, and Related Equipment.
Commerce Control List (CCL) Group – The CCL is divided into 10 categories. Each category is subdivided into five groups, designated by the letters A through E: (A) Equipment, assemblies, and components; (B) Test, inspection and production equipment; (C) Materials; (D) Software; and (E) Technology.
Controlled country – A list of countries designated controlled for national security purposes found in Country Group D:1, including: Albania, Armenia, Azerbaijan, Belarus, Cambodia, Cuba, the People’s Republic of China, Georgia, Iraq, Kazakstan, Kyrgyzstan, Laos, Macau, Moldova, Mongolia, North Korea, Russia, Tajikstan, Turkmenistan, Ukraine, Uzbekistan, and Vietnam. All of the controlled countries except Cuba are listed in Country Group D:1 of the EAR. Cuba is listed in Country Group E:2.
Development – Development is related to all stages prior to serial production, such as: design, design research, design analyses, design concepts, assembly and testing of prototypes, pilot production schemes, design data, process of transforming design data into a product, configuration design, integration design, and layouts.
Defense Article – Any item or technical data designated on the USML, 22 C.F.R. Pt. 121.1, as well as technical data recorded and stored in any physical form, models, mockups or other items that reveal “technical data” directly relating to items on the USML.
Defense Service – The furnishing of assistance (including training) to foreign persons, whether in the United States or abroad, in the design, development, engineering, repair, maintenance, modification, operation, demilitarization, destruction, processing or use of defense articles or the furnishing to foreign persons of any technical data controlled by the ITAR.
Deemed exports – The release of technology or software source code to a “foreign national” (defined below) in the United States. Such a release is deemed to be an export to the country of which the foreign national is a citizen.
Denied Persons List – A list of specific persons that have been denied export privileges, in whole or in part. The full text of each order denying export privileges is published in the Federal Register. The Denied Persons List can be viewed at http://www.bis.doc.gov/dpl/default.shtm
Dual-use – Items that have both commercial and military or proliferation applications. While this term is used informally to describe items that are subject to the EAR, purely commercial items are also subject to the EAR (see §734.2(a) of the EAR).
Educational Information Exclusion
EAR: Release of information by instruction in catalog courses and associated teaching laboratories of academic institutions is not subject to EAR.
ITAR: Information concerning general scientific, mathematical, or engineering principles commonly taught in schools, colleges and universities is not controlled by ITAR.
Embargo – An embargo is the prohibition of commerce and trade with a certain country, in order to isolate it and to put its government into a difficult internal situation, given that the effects of the embargo are often able to make its economy suffer from the initiative.
Empowered Official – a U.S. person who: (1) is directly employed by the applicant or a subsidiary in a position having authority for policy or management within the applicant organization; and (2) Is legally empowered in writing by the applicant to sign license applications or other requests for approval on behalf of the applicant; and (3) Understands the provisions and requirements of the various export control statutes and regulations, and the criminal liability, civil liability and administrative penalties for violating the Arms Export Control Act and the International Traffic in Arms Regulations; and (4) Has the independent authority to: (i) Enquire into any aspect of a proposed export or temporary import by the applicant, and (ii) Verify the legality of the transaction and the accuracy of the information to be submitted; and (iii) Refuse to sign any license application or other request for approval without prejudice or other adverse recourse. (22 C.F.R.§ 120.25)
End-use – A detailed description of how the ultimate consignee intends to use the commodities being exported.
End-user – The person abroad that receives and ultimately uses the exported or reexported items. The end-user is not a forwarding agent or intermediary, but may be the purchaser or ultimate consignee.
Export – The actual shipment or transmission of items subject to export controls (i.e., the EAR or the ITAR) out of the United States, or the “release” of technology or software (including source code) to a foreign national in, or outside of, the United States. (A release of technology or source code to a foreign national in the United States is considered a “deemed export.”)
Export Administration Regulations – The Export Administration Regulations (EAR), Title 15, sections 730-774 of the Code of Federal Regulations (CFR), means the regulations promulgated and implemented by the Department of Commerce that regulate the export of goods and related technology identified on the Commodity Control List (CCL).
Export control – The set of laws, policies, and regulations that govern the export of sensitive items for a country or company.
Export Control Classification Number (ECCN) – Identifies items on the Commerce Control List that are subject to the export licensing authority of the Bureau of Industry and Security.
Exporter – The person who has authority of a principal party in interest to determine and control the sending of items out of the country.
Export license – The approval documentation issued by an export agency authority authorizing the recipient to proceed with the export, reexport, or other regulated activity as specified on the application.
Foreign Entity – A foreign entity is any corporation, business or other entity that is not incorporated to do business in the U.S. This includes international organizations, foreign governments, or any agency of a foreign government.
Foreign National – means any person other than a U.S. citizen, a lawful permanent resident of the United States (i.e., a “greencard” holder), or a “protected individual” as defined in 8 U.S.C. § 1324b(a)(3) (e.g., refugees or persons seeking asylum).
Foreign Person Work Visa – Foreign person work visa petitions requiring the export certification include H-1B, H-1B1, L01, and O-1A visa petitions.
Forwarding agent – This is the person in the country of origin who is authorized by a principle party in interest to perform the services required to facilitate the export of the items from the country of origin. This may include air couriers or carriers. In routed export transactions, the forwarding agent and the exporter may be the same for compliance purposes under the EAR.
Fundamental Research – (EAR and ITAR) means basic or applied research in science and engineering performed or conducted at an accredited institution of higher learning in the United States where the resulting information is ordinarily published and shared broadly in the scientific community. Fundamental research is distinguished from research that results in information that is restricted for proprietary reasons or national security reasons (EAR) or pursuant to specific U.S. government access and dissemination controls (ITAR).
Good – Any article, natural or man-made substance, material, supply, or manufactured product, including inspection and test equipment, and excluding technology.
Intermediate consignee – The person that acts as an agent for a principal party in interest for the purpose of effecting delivery of items to the ultimate consignee.
International Trafficking in Arms Regulations (ITAR) – The International Traffic in Arms Regulations (ITAR), 22 CFR §§ 120-130, means the regulations promulgated and implemented by the Department of State that control the export of articles, services, and related technical data that are inherently military in nature, as determined by the State Department. These “defense articles,” “defense services,” and related “technical data” are listed on the Munitions List (USML), 22 CFR § 121. Even some articles and technologies that are not readily identifiable as inherently military in nature—for example, research satellites—are included on the USML.
Knowledge – Knowledge, and variants such as “reason to know” or “reason to believe,” includes not only positive knowledge that the circumstance exists or is substantially certain to occur, but also an awareness of a high probability of its existence or future occurrence. Such awareness is inferred from evidence of the conscious disregard of facts known to a person and also is inferred from a person’s willful avoidance of facts.
Munitions List – articles, services and related technical data designated as defense articles and defense services pursuant to the Arms Export Control Act.
Production – All production stages, such as: product engineering, manufacture, integration, assembly (mounting), inspection, testing, and quality assurance.
Public Domain – (ITAR; 22 CFR § 120.11) means information that is published and that is generally accessible or available to the public:
- through sales at newsstands and bookstores;
- through subscriptions which are available without restriction to any individual who desires to obtain or purchase the published information;
- through second class mailing privileges granted by the U.S. government;
- at libraries open to the public or from which the public can obtain documents;
- through patents available at any patent office;
- through unlimited distribution at a conference, meeting, seminar, trade show, or exhibition, generally accessible to the public, in the United States;
- through public release (i.e., unlimited distribution) in any form (e.g., not necessarily in published form) after approval by the cognizant U.S. government department or agency;
- through fundamental research in science and engineering at accredited institutions of higher learning in the U.S. where the resulting information is ordinarily published and shared broadly in the scientific community.
Purchaser – The person abroad who has entered into a transaction to purchase an item for delivery to the ultimate consignee. In most cases, the purchaser is not a bank, forwarding agent, or intermediary. The purchaser and ultimate consignee may be the same entity.
Release – Technology or software is “released” for export through: (i) visual inspection by foreign nationals of U.S.-origin equipment, facilities or documentation; (ii) oral or written exchanges of information in the United States or abroad; or (iii) the application to situations abroad of personal knowledge or technical experience acquired in the United States.
Reexport – an actual shipment or transmission of items subject to export regulations from one foreign country to another foreign country. For the purposes of the U.S. EAR, the export or reexport of items subject to the EAR that will transit through a country or countries to a new country, or are intended for reexport to the new country, are deemed to be exports to the new country.
Specially Designated National (SDN) – a list of individuals and companies owned or controlled by, or acting for or on behalf of, targeted countries, published by the Office of Foreign Assets Control (OFAC). It also lists individuals, groups, and entities, such as terrorists and narcotics traffickers designated under programs that are not country-specific. Collectively, such individuals and companies are called “Specially Designated Nationals” or “SDNs.” Their assets are blocked and U.S. persons are generally prohibited from dealing with them.
Technical Assistance – may take forms such as instruction, skills training, working knowledge, and consulting services. Technical assistance may involve the transfer of “technical data.”
Technical data – includes information “required for” the design, development, production, manufacture, assembly, operation, repair, testing, maintenance, or modification of defense articles. It may take forms such as blueprints, plans, diagrams, models, formulae, tables, engineering designs and specifications, manuals and instructions written or recorded on other media or devices such as disk, tape, and read-only memories.
Technology – means specific information necessary for the “development,” “production,” or “use” of a product. The information takes the form of “technical data” or “technical assistance.” Information that is generally accessible or available to the public is not “technology” subject to the EAR.
Trade Sanctions – Trade sanctions are trade penalties imposed by one or more countries on one or more other countries. Typically the sanctions take the form of import tariffs (duties), licensing schemes or other administrative hurdles. They tend to arise in the context of an unresolved trade or policy dispute, such as a disagreement about the fairness of some policy affecting international trade (imports or exports).
Ultimate consignee – The principal party in interest located abroad who receives the exported or reexported items. The ultimate consignee is not a forwarding agent or other intermediary, but may be the end-user.
U.S. person – Any individual who is a citizen of the United States, a permanent resident alien of the United States, or any person physically located in the United States. Any juridical person (corporation, association, etc.), including foreign branches, organized under the laws of the United States or any jurisdiction within the United States.
Use – Operation, installation (including on-site installation), maintenance (including checking), repair, overhaul and/or refurbishing.