The EAR controls the export of “dual-use” items, which are items that have civilian uses, but which may also have a military or other strategic application. Common, real-life examples from UAF include certain chemicals, microorganisms, and toxins as well as laboratory equipment like analyzers, lasers, and field equipment like infrared cameras and some unmanned aerial vehicles. These items are classified on the Commerce Control List (CCL). The CCL is a “positive list”; in other words, if an item is NOT listed on the CCL, then, generally, the EAR does not apply. The EAR also controls the export of purely commercial commodities in support of U.S. trade and embargo policies. Purely commercial items are classified as “EAR99” and have very few export restrictions. 

Many activities are not subject to the EAR. Activities subject to the exclusive authority of another agency, e.g. the export of a defense article that is controlled under the ITAR, are not subject to the EAR. The EAR also lists additional exclusions including published information, information resulting from fundamental research, educational information, and the export or reexport of items with less than de minimis U.S. content (when applicable). It is important to understand the definitions and limitations of each exclusion to correctly evaluate its applicability to specific activities.

The CCL is at 15 CFR 774. Items on the CCL are assigned an export control classification number (ECCN) using category and product groups. There are 10 categories, numbered 0 – 9, and five product groups, labeled A- E, within each category. The category and product group generally describe the item, and the remaining three digits of the ECCN relate to the item specifications. In general, ECCN’s with lower numbers for the last three digits are controlled to more destinations than those with higher numbers.

The Office of Foreign Asset Controls (OFAC) administers and enforces economic and trade sanctions based on U.S. foreign policy and national security interests. Many of the sanctions are based on the United Nations and other international mandates. Sanctions are country/program-specific and are subject to frequent change based on the changing geopolitical landscape. In addition to foreign countries and regimes, OFAC imposes sanctions on individuals, such as people the U.S. government deems to be terrorists and narcotics traffickers. The implementing regulations for the OFAC sanctions are found in 31 CFR 500-599, the Foreign Asset Control Regulations.

The OFAC sanctions broadly prohibit most transactions between a U.S. person and persons or entities in an embargoed country or who have been declared specially designated nationals (SDNs). The prohibition generally includes importation and exportation of goods and services as well as related financial transactions or engaging in business activities with SDNs. Activity-based sanctions programs are implemented through the designation of individuals engaging in the banned activities as SDNs.