Explaining ECCN for International Shipping

Glossary of Terms:

If shipping and logistics seem overwhelming and complicated, THEY ARE! So is the tax code. That’s why you have an accountant do your taxes. Sure you can file your own taxes but you don’t because you want to make sure you get it right; that you pay what you have to, save when you can and get whatever refunds you have coming to you. Below we try to make one part less complicated.

The ECCN is a five character identifier issued by the Department of Commerce (DoC) for certain items set to be exported. If the item has an ECCN, an export license issued by the appropriate government agency, usually the DoC is required. An export license is a government document that grants permission to conduct a specific export transaction. Not every product set to be exported from the US has an ECCN.

One can search on the DoC website to see if the product is on the Commerce Control List (CCL). The CCL will list categories and subcategories of the products requiring a license. The CCL is there to make sure the exporter/shipper stays in compliance with the law. The law is different for different countries and the goods being shipped there. In addition to being in compliance with the law, being stringent with this process also ensures that there are no costly delays with your shipment. 

One must also check to see if the item being exported falls under the jurisdiction of the Bureau of Industry Security (BIS). If it does and is not listed on the CCL it is classified EAR99. Most exports are classified EAR99. However, it is the exporter’s obligation to further determine if the final destination of the product is not embargoed, sanctioned, a party of concern or has a prohibited end use. In that case an export license is required. 

International shipping is not something you should be doing on your own. Sure, you can but you shouldn’t because you want to save money, streamline the process and be 100% in compliance with all laws and regulations. At the SPL Group we specialize in International shipping. Our team of experts will walk you through the process and save you on your costs. Contact us for a free analysis. 

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