Controlled Commodities

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Controlled Commodities

• How to find out if the item is export controlled

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Law and Regulations
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Commerce Control List (CCL), 15CFR Part 774

• Category 0 - Nuclear Materials, Facilities and
  Equipment and Misc.
• Category 1 - Materials, Chemicals, Microorganisms
  and Toxins
• Category 2 - Materials Processing
• Category 3 - Electronics
• Category 4 - Computers

• Category 5 - Telecommunications and Information
  Security
• Category 6 - Lasers and Sensors
• Category 7 - Navigation and Avionics
• Category 8 - Marine
• Category 9 - Propulsion Systems, Space Vehicles
  and Related Equipment

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Commerce Control List (CCL)

• Within each category, items are arranged by
  group. Each category contains the same five
  groups. Each Group is identified by the letters
  A through E, as follows
• A-Equipment, Assemblies and Components
• B-Test, Inspection and Production Equipment
• C-Materials
• D-Software
• E-Technology (Specific information necessary for
  the development, production, or use of a
  product, including technical data or technical
  assistance. Technical data may take forms
  such as blueprints, plans, diagrams, models,
  formulae, tables, engineering designs and
  specifications, manuals and instructions.)

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Examples of Items Covered by Category 3 -
Electronics

• GROUP Systems, Equipment, and Components
• General purpose integrated circuits
  microprocessor microcircuits, micro-computer
  microcircuits, and microcontroller microcircuits,
  having any of the following
• manufactured from a compound semiconductor and
  operating at a clock frequency exceeding 40MHz
  or
• storage integrated circuits manufactured from a
  compound semiconductor or
• digital-to-analogue converters with a resolution
  of 12 bit or more, and a settling time of less
  than 10 ns
• Microwave integrated circuits or modules having
  all of the following containing monolithic
  integrated circuits having one or more active
  circuit elements, and operating at frequencies
  above 3GHz
• Voice print identification and analysis equipment
  and parts

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Examples of Items Covered by Category 3 -
Electronics

• GROUP Test, Inspection and Production
  Equipment
• Equipment for the manufacturing of semiconductor
  devices or materials and specially designed
  components and accessories therefor
• Stored program controlled equipment designed
  for epitaxial growth capable of producing a layer
  thickness uniform to less than 2.5 across a
  distance of 75 nm or more
• Molecular beam epitaxial growth equipment using
  gas or solid sources
• Stored program controlled equipment design for
  ion implantation, having any of the following
• A beam energy (accelerating voltage) exceeding
  1MeV or
• Being specially designed and optimized to operate
  at a beam energy (accelerating voltage) of less
  than 2keV or
• Direct write capability or
• Being capable of high energy oxygen implant into
  a heated semiconductor material substrate

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Examples of Items Covered by Category 3 -
Electronics

• GROUP Materials
• Hetero-epitaxial materials consisting of a
  substrate having stacked epitaxially grown
  multiple layers of any of the following
• Silicon
• Germanium
• Silicon Carbide, or
• III/V compounds of gallium or indium
• Resist material and substrates coated with
  controlled resists
• Positive resists designed for semiconductor
  lithography specially adjusted for use at
  wavelengths below 350 nm
• All resists designed for use with electron or ion
  beams with a sensitivity of 0.01 ucoulomb/mm2 or
  better
• All resists designed for use with X-rays, with a
  sensitivity of 2.5mJ/mm2 or better
• All resists optimized for surface imaging
  technologies, including silylated resists.

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Examples of Items Covered by Category 3 -
Electronics

• GROUP Software
• Software specially designed for the development
  or production of equipment controlled by
  3A001.b to 3A002.g or 3B (except 3B991 or 3B992)
• Software specially designed for the use of
  stored program controlled equipment controlled
  by 3B (except 3B991 992)
• Computer-aided-design (CAD) software , having all
  of the following
• Designed for the development of semiconductor
  devices or integrated circuits, and
• Designed to perform or use any of the folllowing
• Design rules or circuit verification rules
• Simulation of the physically laid out circuits
  or
• Lithographic processing simulators for design.

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Examples of Items Covered by Category 3 -
Electronics

• GROUP Technology
• Technology for the development or
  production of equipment or materials controlled
  by 3A (except 3A292, 3A980, 3A981, 3A991 or
  3A992), 3B (except 3B991 or 3B992) or 3C
• Technology for the development or
  production of microprocessor microcircuits,
  microcomputer microcircuits and microcontroller
  microcircuits having a composite theoretical
  performance (CTP) of 530 million theoretical
  operations per second (MTOPS) or more and an
  arithmetic logic unit with an access width of 32
  bits or more
• Technology for the use of equipment or
  software controlled by 3A001.a.1 or .2, 3A101,
  or 3D101
• Technology for the development of software
  controlled by 3D101

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Examples of Items Covered by Category 1
Materials, Chem, Microorganisms, Toxins

• Category Example
• Systems, Equip, Chemical Agents, including tear
  gas containing 1
• Components or less of CS or CN, except
  containers net wt lt20grm
• Test, Inspection, Electrolytic cells for
  fluorine production with a
• Prod Equip production capacity gt250 g of
  fluorine per hour
• Materials Chemical Precursors for toxic chemical
  agents
• (1C350) (ExamplesBenzilic acid sodium
  bifluoride)
• Human pathogens, zoonoses, and toxins
  (1C351)
• (Examples Rickettsia rickettsii, Chlamydia
  psittaci) Animal pathogens (1C352
  (Examplegoat pox virus) Plant pathogens
  (1C354) (Example Puccinia graminis)
• Software Software for process control that is
  specifically
• configured to control or initiate production
  of chemicals controlled by 1C350
• Technology Technical data for the development of
  production of any of the above items

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Commerce Control List how to use

• Once you find the commodity on the CCL, note the
  ECCN number check the reason for control at
  the beginning of each entry, under License
  Requirements
• CB Chemical Biological Weapons
• NP Nuclear Non-Proliferation
• NS National Security
• MT Missile Technology
• RS Regional Stablity
• FC Firearms Control
• CC Crime Control
• AT Anti-Terrorism
• Check the country list at EAR Part 738,
  Supplement 1
• Determine whether country to which item will be
  shipped has check (X) under the applicable
  reason for control column
• If no (X), ship item as NLR (No License
  Required). See EAR Parts 758 and 762 for export
  clearance procedures and recordkeeping
  requirements for NLRs.

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Commerce Control List how to use

• If box is checked for the country under the
  applicable reason for control column, then a
  license may be required.
• Check License Exceptions heading that appears
  after the License Requirements section for the
  ECCN. See EAR Part 740 for all license
  exceptions. Some commonly used ones are
• LVS Limited Value Shipment (Part 740.3)
• CIV Civil End-Users (Part 740.5)
• TSR Technology Software under Restriction
  (Part 740.6)
• CTP Computers (Part 740.7)
• TMP Temporary Imports, Exports, Reexports
  (Part 740.9) (See Tools of Trade for personal use
  abroad, at 740.9(a)(2)(i) and Beta Software at
  740.9(c))
• TSU Technology and Software Unrestricted (Part
  740.13)(See publicly available encryption
  source/object code at 740.13(e) and(f))
• BAG Baggage (Part 740.14)
• ENC Encryption Commodities and Software (Part
  740.17)
• If no license exception applicable, apply for
  license using BIS-748P, MultiPurpose Appl.

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Commerce Control List how to use

• Note Many ECCNs have more than one reason for
  control. Each reason must be checked on the
  country chart before concluding No License
  Required (NLR)
• Note Each license exception has specific
  criteria that must be met to qualify for the
  license exception. Also, many license exceptions
  require special record-keeping and some require
  notification to the government of use of the
  license exception. See especially the
  notification requirements described in EAR Part
  742.15(b)(1) and (b)(2) for certain encryption
  items controlled under ECCNs 5A992, 5D992, and
  5E992.
• A good explanation of the structure of the CCL,
  how to read the ECCNs, and how to determine if an
  export license is required is found in Part 738.
  A good diagram of the process is found in Part
  732, Supplements 1 2

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Commerce Control List how to use

• Note In addition to checking the Reason for
  Control/Country Chart, as well as the License
  Exceptions, there are General Prohibitions
  listed in EAR Part 736. Whether the shipment
  will be subject to one of these prohibitions
  depends upon 1) the ECCN classification of the
  item 2) the destination 3)the end-user 4) the
  end-use and 5) conduct. Prohibitions 4-10 are
• Denial Order issued under EAR Part 766
• Export to prohibited end-uses or end-users under
  EAR Part 744
• Export to embargoed destination described in EAR
  Part 746
• Support of Proliferation Activities described in
  EAR Part 744
• Intransit Shipments through specified countries
  listed in EAR Part 736(b)(8)(ii)
• Violation of terms and conditions of an exception
  or license
• Proceeding with knowledge that a violation has or
  is about to occur

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Commerce Control List how to use

• If the commodity does not appear on the CCL, then
  the item is shipped under category EAR99, NLR
  (unless Prohibitions 4 through 10 apply).
• If you have trouble locating the Section of the
  CCL that includes the commodity you are looking
  for, try the alphabetical listing of all items on
  the CCL found at EAR Part 774, Supplement 1, and
  then work backwards to the ECCN
• Search for items by both the common name and
  scientific name. Consult with the faculty
  member. If you conclude the item is not included
  in the CCL, write a note to the file documenting
  the search conducted.
• If you arent sure, you can contact the BIS
  regional office in San Jose [phone], or
  request a Commodity Classification (See Part
  748.3)

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U.S. Munitions List (USML)

• I - Firearms
• II - Artillery Projectors
• III - Ammunition
• IV - Launch Vehicles, etc...
• V - Explosives, Propellants, Incendiary Agents
  and Their Constituents
• VI - Vessels of War and Special Naval Equipment
• VII - Tanks and Military Vehicles
• VIII - Aircraft and Associated Equipment
• IX - Military Training Equipment
• X - Protective Personnel Equipment
• XI - Military Electronics
• XII - Fire Control, Range Finder, Optical and
  Guidance and Control Equipment

• XIII - Auxiliary Military Equipment
• XIV - Toxicological Agents and Equipment and
  Radiological Equipment
• XV - Spacecraft Systems and Associated Equipment
• XVI - Nuclear Weapons Design and Related
  Equipment
• XVII - Classified Articles, Technical Data and
  Defense Services Not Otherwise Enumerated
• XVIII - Reserved
• XIX - Reserved
• XX - Submersible Vessels, Oceanographic and
  Associated Equipment
• XXI - Miscellaneous Articles

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U.S. Munitions List (USML)

• The list of items controlled under ITAR is more
  straightforward and is only 40 pages long. There
  are no subdivisions within categories.
• Some of the items listed are broadly defined,
  such as those included in Category XV, Spacecraft
  Systems and Associated Equipment
• a) Spacecraft, including . . scientific
  satellites, research satellites, etc.
• b) Ground control stations for telemetry,
  tracking and control of spacecraft or satellites
• c) All specifically designed or modified systems,
  components, parts, accessories, attachments, and
  associated equipment for articles in this
  category
• Many of the other broad category items are
  qualified with the phrase specifically designed
  or modified for military application
• There is no country chart or categories of
  license exception if the article is on the
  list, you will need to secure a license for
  permanent or temporary export or temporary import
  of the item.

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Take Home Messages
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Dos and Donts

• Do NOT Ship Any Item Outside the U.S. without
  first checking the ITAR and EAR Lists to
  determine if the item is controlled (This
  includes Outgoing MTAs, Software Licenses, and
  any Agreement Deliverables)
• Secure License Approval or verify license
  exception PRIOR to Shipment for all controlled
  items
• Make sure that technical data about export
  controlled commodities qualifies as public
  domain (ITAR term) or publicly available (EAR
  term), so that a license for shipment of
  technical data out of the U.S. or the deemed
  export to a foreign national in the U.S. is not
  required.
• Qualify software as publicly available, or
  otherwise secure licenses prior to shipment if
  the software is on CCL or USML

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Is the Item Export Controlled?

• EAR List at http//www.access.gpo.gov/bis/ear/ea
  r_data.html See Part 774, Categories 0 through
  9 Also see the Alphabetical Listing
• ITAR List at http//www.pmdtc.org/docs/ITAR/22cfr
  121_Part_121.pdf
• For EAR Items 1)Check the reason for control
  2)Check country chart at Part 738, Supplement 1
  3)Determine if license required in the column for
  the country where item to be shipped 4)
  Determine if any license exceptions apply 5) If
  license required, apply using BIS Form 748P
• For EAR Item, if no check in control column for
  country, then ship under NLR (no license
  required) If item being shipped is not on
  Commodity Control List, then ship EAR99 (exempt)
• For ITAR Item, if on list, contact UCOP license
  will be required because there is no EAR
  equivalent country chart

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Questions?