Navigating Export Compliance: Business Integrity in a Global Marketplace

By Georges Neuenschwander, SBTDC International Business Counselor

Export compliance isn’t just a set of rules; it’s a powerful safeguard for protecting your company’s integrity, reputation, and future on the international stage.

In a global marketplace where cross-border regulations constantly evolve, staying compliant is more challenging—and more important—than ever. Whether you’re managing logistics, handling documentation, or overseeing partnerships, every step in the export process is an opportunity to reinforce your commitment to responsible and lawful trade.

When Do You Need an Export License?

Did you know that all products exported from the USA are subject to the Export Administration Regulations (EAR)? Most products can ship under EAR99, which is a classification meaning that no Export License is required from the Bureau of Industry and Security (BIS). However, any product could be subject to an Export License either from BIS or other U.S. Agencies. To determine if your product requires a special Export License, you should first check if the product type has an Export Commodity Control Number (ECCN). The BIS website has an alphabetical list to help you with this task. The BIS website also has easy-to-navigate information on the Commerce Control List (CCL) and Country Chart.

Export License Case Study: Body Armor

Suppose you are the exporter of record for bullet proof vests (body armor). You will find that this product has an ECCN of 1A005. You then need to go to the Commerce Control List and read the entire entry, to make sure that your product is defined properly and that there are no exceptions. There, you will find out that body armor is tested and classified by the National Institute of Justice (NIJ), a lab that determines what caliber of ammunition it can withstand. If it is classified as NIJ III and lower, it is regulated by the EAR. 

You must then check the Country Chart to see if an Export License is required for the country where you want to export the product. If the product is classified as NIJ IV, then it is subject to International Traffic in Arms Regulations (ITAR) and will require an Export License from the U.S. State Department to any country. As you can see, it is always important to look at the specifics of each product as similar products may or may not have restrictions and in some cases may only have restrictions to specific countries. 

Upcoming Export Compliance Workshop in Charlotte

If you need assistance with export compliance, we highly recommend attending our upcoming workshop in Charlotte.

The SBTDC International Business team is proud to sponsor and support the Export Compliance Workshop in Charlotte, NC on December 4^th and 5^th. Throughout this workshop, we’ll dive into the complexities of export regulations, examine case studies, and empower you with tools and strategies for navigating compliance challenges. 

Our goal? To not only help you understand these regulations but to foster a culture of proactive compliance that upholds both business success and ethical standards. Let’s embark on this journey together and equip ourselves with the insights and skills needed to thrive in today’s global business landscape.