All You Need to Know About ECCN Number Its Code Format and Steps To Find It If you’re wondering what is ECCN used for, you’re at the right place. An ECCN is only native to the US. It is a five-character alphanumeric code that the United States uses to determine if an export license is needed. This number is used mainly to characterize products on the basis of commodity, technology, or software. ECCN is a term often confused by exporters in the United States. An ECCN or Export Control Classification Number is the primary basis for the government to determine whether something requires more regulation when it is being imported. For example, if you’re an import-export trader, there is less regulation behind importing a tennis ball than there is behind medication and other such products.
It is easy to understand the overall ECCN meaning when the code is broken down. However, when applying for an ECCN, it is imperative to do it properly, either on your own or by enlisting the help of a trade data company that
specializes in trade policy. If applied improperly, the ECCN can end up costing you a lot of money, and your products might even be seized by the government for misclassification.
Frequently Asked Questions Regarding ECCNs: 1. How Is ECCN Different From A Schedule B Export? To start with, you must first understand what is ECCN and what is schedule B. An ECCN number is based on the type of product that is to be exported and under what classification it falls under. A Schedule B number only consists of physical goods as a classifying factor. Schedule B is also mainly used by the Bureau of the census for the purpose of collecting Trade Statistics.
2. How Is ECCN Different From A HTS Code? While they are similar, they are both representative codes for commodities. However, a commodity is only an ECCN code if it is not listed on the Commerce Control List.
3. How To Determine Your ECCN Code? This is where an ECCN meaning gets tricky; the first step is to check with the Department of Commerce if your product has a pre-existing ECCN code already. The code is divided first into 10 categories that comprise what product category the commodity falls into. The categories are then further divided into five commodity groups. The 10 categories are as follows. 1. Nuclear materials, equipment, facilities 2. Materials, Microorganisms, Chemicals, Toxins 3. Materials Processing 4. Electronics 5. Computers 6. Telecommunications and Information Security 7. Sensors and Lasers
8. Navigation and Avionics 9. Marine 10.Propulsion Systems, Space Vehicles, and Related Equipment
The 5 product groups are as follows. 1. Systems, Equipment and Components 2. Test, Inspection and Production Equipment 3. Material 4. Software 5. Technology
The Export Control Classification Number is broken up into three parts, the first being a number corresponding with a category. The second is a letter corresponding with a product group, and the third is a three-digit number which is assigned by the Department of Commerce for every item. For example, the product with the code 8B001 will be inspection equipment that is used in the sea. This process is highly complicated to the layperson, which is why you should go with a company that has plenty of experience with export and import procedures like a trade data solutions company to help you out.
What To Do If Your Item Is Not On The List? There are rare occasions when your item may not be on the list of commerce. It is infrequent but it does happen and when this occurs, it is designated as EAR99. These are the types of products that do not need a license to be exported.
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