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A Brief Description Of The ECCN Number And Its Importance

ECCN stands for Export Control Classification Number. It is a key used in the Commerce Control List (CCL) for determining the products for regulating the process of exporting goods or certain military products.

The ECCN number is a five-character alpha-number designation that categorizes the products based on their nature, i.e. type of software, commodity or technology, and respective technical parameters.

This article will give you a brief description of the ECCN code, why it is essential for your import/export business and how to determine the ECCN for your product. 

Are The ECCN Code And Schedule B Number The Same?

The ECCN number and the Schedule B number are different from each other. The Bureau of Census uses the Schedule B number to collect the statistics of trade. 

The ECCN code is also different from the HTS code (Harmonized Tariff System), which is usually used to analyze the import duties.

What Is The Commerce Control List?

The CCL or the Commerce Control List identifies the products regulated by the Bureau of Industry and Security (BIS) of the commerce department. To be able to determine the ECCN of a product, you must review the CCL properly.

The first digit of the ECCN number specifies the category of the product as defined by the CCL. The second digit is the category of the product. The final numbers of the ECCN code are given by the Commerce Control List and are based on the functions and the specific characteristics of the product.

How To Determine Your ECCN?

Here's how you can do the ECCN number lookup in three easy steps:

Step 1: First, you will have to contain the producer, manufacturer or developer of the product. However, one thing that you must never forget is that the ECCN codes change with time. Therefore, it is a must that you keep on reviewing the code to ensure its accuracy.

Step 2: The next step is to self classify your product. To do so, you must have an exact understanding of your product. In addition, you must be familiar with various intricacies, like the format, of the CCL.

Step 3: The third and last step is to officially request classification from BIS. This will happen after acquiring your Company Identification Number (CIN) through the electronic application processing system known as SNAP-R.

With the help of the steps mentioned earlier, you will be able to do the ECCN number lookup efficiently.

What Is The Importance Of ECCN Number?

If you have an import/export business, you must take the export controls seriously to avoid any casualties in the future. Most of the counties have a sort of export control policy, legislation and enforcement systems.

ECCN codes are meant to meet the concerns related to the development of mass destruction along with national and collective security. If you make a mistake in classifying, then it may have severe consequences for your business. Therefore, it is a must that you are careful enough while doing any paperwork.

If any company fails to make an appropriate license, then there is a high possibility that the company faces the risk of getting fined or, in some cases, even prison time. Therefore, there comes a restriction for future exports, which can be dangerous for companies that rely entirely on trade.

These classifications may change with time. And because of which you must keep on reviewing them and stay up to date with the changes associated with CCL. Significantly when these updates can affect the classification of your product.

What Are The Categories Of The ECCN Number?

Here are the ten categories into which the ECCN numbers are divided:

  1. Nuclear materials, facilities, equipment
  2. Materials, chemicals, toxins and microorganisms
  3. Materials Processing
  4. Electronics
  5. Computers
  6. Telecommunications
  7. Information Security
  8. Sensors and lasers
  9. Navigation and avionics
  10. Marine
  11. Aerospace and Propulsion

These categories will allow you to determine whether the trade controls will authorize the products that you wish to export or import or not. The classes, as mentioned earlier, are then divided into five sub-groups.

  1. Software
  2. Material
  3. Technology
  4. Test, inspection and product equipment
  5. Systems, equipment and components

What Are The Other Things That You Must Consider?

There are several things that you must consider before getting into the trading business or doing trade. The first thing is that you must be sure that the company or the person you will be selling your product is not among the denied parties lists. This issue can prevent the transaction from happening even if you have an export licence.

You must consider that some organizations or individuals are prevented from receiving U.S. exports. Others might only accept the goods only if they are licensed and even for some products that usually don't require any licence based on the ECCN and CCL. Therefore, you must get to know more about the lists of such individuals and organizations.

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