INFORMATION ON EXPORTING
Samuel Shapiro and Company, Inc. truly cares about their customers concerns and needs.
With all of the changes and recent enforcement actions in the U.S. regarding exports, we
have put together a guide to help exporters understand their responsibilities in today’s
environment. The exporter has many responsibilities under U.S. Government
We want exporters to understand that the Foreign Trade Regulations (FTR) places primary responsibility for compliance of the Electronic Export Information (EEI) or
Shippers Export Declaration (SED) as commonly referred to, and the Automated Export
System (AES) requirements on the exporter (U.S. principal party in interest). Acting
through forwarding or other agent or delegating or re-delegating authority does not in and
of itself relieve anyone of their compliance responsibility.
It is the exporter’s obligation to check the parties to your transaction (including freight
forwarders, intermediate consignees, and the ultimate consignee) against the most recent
"Excluded Parties Lists" There are currently several “lists” that must be checked for each
and every export transaction. We have provided a link to the Bureau of Industry and
Security (BIS) website which contains links to each of these lists for your convenience
In June 2007, the Department of Justice, National Security Division, appointed Steven W.
Pelak, an 18-year veteran federal prosecutor, to serve as the Justice Department's
first-ever National Export Control Coordinator (NECC) to improve the investigation and
prosecution of illegal exports . Mr. Pelak is also responsible for ensuring full coordination
between the Justice Department and the many other U.S. law enforcement, licensing and
intelligence agencies that play a role in export enforcement. With this appointment, audits
by the Foreign Trade Division of the U.S. Census Bureau, and the dedication of more and
more resources focused on export enforcement over the past few years really shows how
important Export control enforcement has become to the U.S. Government.
It is essential for exporters to review their operations to be sure they adhere to all export
regulations. With various Government agencies doing audits on exporters, such as the
Foreign Trade Division of the U.S. Census Bureau, the Bureau of Industry and Security,
Office of Foreign Assets Control, and the State Department, exporters should look at their
internal controls now to be certain they are compliant with all of the export regulations that
govern their products. Please be sure you are prepared and ready for an export audit! If
not, please contact email@example.com for further information and assistance with your compliance program.
SOME QUESTIONS TO CONSIDER WHEN EXPORTING
(Links provided to various sites for your convenience)
A. Commodity type(s)? What is the intended use of the commodity? HTS or
Schedule B Number(s) for commodity?
When exporting commodities from the United States (or releasing technology or source
code to a foreign national in the United States), under U.S. law it is the responsibility of the
exporter to classify the item(s) and to determine if an export license is required from any
United States Government agency.
Link to the Harmonized Tariff Schedule: http://www.usitc.gov/tata/hts/bychapter/index.htm
Link to the Schedule B:
Schedule B Search Engine:
B. Are any of your commodities listed under the Commerce Control List
If your commodity does come under the CCL, the exporter must provide the Export
Commodity Classification Number (ECCN), you must know if a license is required to your
export destination, or if an exception can be used for each transaction.
Please refer to Part 774 (CCL) of the Export Administration Regulations:
Alphabetical Listing for the Commerce Control List:
Please refer to the Bureau of Industry and Security (BIS) Website for more information
concerning ECCN numbers, licenses, and exceptions.
There is also a list of Frequently Asked Questions from BIS which may assist you in
determining whether your item or transaction requires some type of license, along with a
list of FAQ’s regarding BIS licenses that can be found at the links below:
BIS has also added an online training room to their website with easy to use
training modules. We highly recommend these to our exporters. This can be
accessed on the BIS website at:
http://www.bis.doc.gov/seminarsandtraining/seminar-training.htm If you need assistance from BIS in determining your ECCN number, you can contact them
via email at: https://www.bis.doc.gov/Forms/AskaCounselor.html
For counseling assistance by phone, you may contact one of the BIS counselors at
202-482-4811 for Washington, DC or 949-660-0144 for California.
* Please note-phone and email assistance is not binding, it is used for guidance purposes
If you need to obtain a binding classification ruling from the BIS, please contact
C. Do any of your commodities fall within the International Traffic In Arms
Regulations (ITAR)? Is your commodity referenced on the U.S. Munitions
If your commodity does come under the ITAR, the exporter must provide the license
number, or an ITAR exemption number for each transaction. Your company must also
be registered with the United States Department of State, Directorate of Defense Trade
Additional information will be necessary in order to transmit the required Automated
Export System (AES) information.
Please refer to the U.S. Census Bureau Website for complete detailed AES information
required on these transactions:
Please refer to the U.S. Department of State web site for more information regarding the
ITAR and the United States munitions list and getting started with Defense Trade.
D. What countries do you export to?
The Office of Foreign Assets Control lists the sanctions and embargoes the U.S. has
imposed on certain countries. The exporter must be aware of these country controls.
The U.S. Department of State also has a list of embargoed countries:
E. What is the end use of your product?
This is a question that concerns the U.S. Government for security, national defense, and
anti-terrorism reasons. Some end-uses are prohibited while others may require a license.
For example, you may not export to certain entities involved in the proliferation of weapons
of mass destruction (e.g., nuclear, biological, chemical) and the missiles to deliver them,
without specific authorization, no matter what your item is. For more information on
prohibited end- uses, please refer to Part 744 of the Export Administration Regulations.
F. Are you shipping to the Middle East? Do you adhere to the antiboycott
Exporters must be aware of the antiboycott laws that were adopted to encourage, and in
specified cases, require U.S. firms to refuse to participate in foreign boycotts that the
United States does not sanction. They have the effect of preventing U.S. firms from being
used to implement foreign policies of other nations which run counter to U.S. foreign
Additional information on antiboycott laws and practices can be found on the BIS website
Recent Examples of Boycott requests can be found on the BIS website:
These types of requests or problematic language are often included in letters of credit.
Shapiro has a letter of credit expert on staff to assist you with these needs. U.S.
companies continue to report receiving requests to engage in activities that further or
support the boycott of Israel. U.S. companies may receive similar requests in the future.
Compliance with such requests may be prohibited by the Export Administration
Regulations, and reportable to the Commerce Department. If you have questions, please
call (202) 482-2381 and ask for the Duty Officer or you may Email BIS at
G. Have you checked the current “Red Flag” indicators provided by BIS for things
to look for in an export transaction?
Use this as a check list to help identify possible violations of the Export Administration
H. Do you really know your customer?
Use the “Know Your Customer Guidance” provided by the BIS
BIS has issued the following guidance on how individuals and firms should act under this
knowledge standard. This guidance does not change or revise the EAR.
I. Are your commodities considered to be Hazardous for shipping purposes?
Each mode of shipping has specific hazmat regulations. The Federal Aviation
Administration has been especially persistent in checking commodities and tracking it
back to the exporter to see if the exporter’s staff has updated hazmat training. All modes of
transportation have increased inspection of hazardous materials.
Air Transportation (http://www.iata.org/whatwedo/cargo/dangerous_goods/index.htm)
Ocean Transportation: http://www.imo.org/Safety/mainframe.asp?topic_id=158
Land Transportation: http://www.phmsa.dot.gov/hazmat
Rail Transportation http://hazmat.dot.gov/regs/ntsb/rail/ntsb_rail.htm
J. Do you understand your role as an exporter under the Foreign Trade
Regulations? Is your company the USPPI in a routed export transaction?
As an exporter or a company that sells goods and services to foreign entities, you need to understand your role and the role of the forwarder in the export transaction. Take a look at
the Frequently Asked Questions from the Foreign Trade Regulations on the Census
website regarding the USPPI, and the required information on the Shippers Export
Declaration at: http://www.census.gov/foreign-trade/faq/reg/index.html
LINKS TO U.S. REGULATIONS COVERING EXPORT
The Export Administration Regulations:
The Foreign Trade Regulations:
The International Traffic in Arms Regulations:
CFR 19: http://www.access.gpo.gov/nara/cfr/waisidx_08/19cfrv2_08.html
If you don’t understand all of the information above and feel you need one on one
consultation, please contact firstname.lastname@example.org. Thank you.
**This document is intended to highlight some of the major responsibilities exporter’s have
under U.S. Government regulations. This is not all inclusive and depending on your commodity, the exporter may have responsibilities under other U.S. Government
agencies, such as FDA, USDA, NRC, DEA, DOJ, etc. Prior to exporting, please be sure to
check with any agency that may have jurisdiction over your commodity. This document
does not include Foreign Country of Export information. Laws vary depending on your
country of export. **
All transactions and services are subject to and governed by our Terms and Conditions of
Service, as may be amended, including a limitation of liability limited to a maximum of
$50/entry or shipment. A copy may also be found on our website, www.shapiro.com, and
is available by request at no charge. EKG 01/07/09