U.S. Export Compliance: Clear Every 'X'

Arne Mielken
6 minutes ago
4 min read

Finding one US export license exception solves all your compliance problems? Think again. You must overcome every 'X' in the chart. Learn how here.

The "One and Done" Fallacy in US Export Controls

If you deal with items subject to the US Export Administration Regulations (EAR), you know the feeling of relief when you find a License Exception that seems to apply to your shipment. It feels like a "Get Out of Jail Free" card, allowing you to bypass the lengthy process of applying for a formal export license from the Bureau of Industry and Security (BIS).

But here is the critical insight that many exporters miss: A License Exception is not a blanket authorization.

Just because you meet the criteria for an exception doesn't mean it covers the specific reasons your item is controlled for your specific destination. Failing to understand this nuance is a leading cause of export violations.

The Rule: You Must Unlock Every Door

When determining licensing requirements, you use two tools in tandem:

The ECCN entry on the Commerce Control List (which tells you the "Reasons for Control").
The Commerce Country Chart (which tells you if those reasons apply to your destination).

Think of every "X" on the Country Chart as a locked door standing between your goods and their destination.

If your item’s ECCN lists three distinct reasons for control—say, National Security (NS), Missile Technology (MT), and Anti-Terrorism (AT)—and the Country Chart shows an "X" under all three columns for your destination country, you face three locked doors.

To ship without a license, you need a License Exception that acts as a master key to unlock all three doors simultaneously. If your exception only unlocks the NS and AT doors, but the MT door remains bolted, you cannot ship. You must apply for a license.

Furthermore, you generally cannot "mix and match" exceptions for a single item in a single transaction. You can’t use Exception A for the first "X" and Exception B for the second. You need one solution for the whole problem.

Real-World Analysis: A UK to Belgium Shipment

Let’s analyze a concrete example to see how this works in practice.

The Scenario: A company in the United Kingdom is re-exporting a US-origin military aircraft part, classified under ECCN 9A610.x, to a customer in Belgium.

Step 1: Identify the Reasons for Control

First, we look at the ECCN entry for 9A610 in the Commerce Control List. It lists the following controls:

NS1 (National Security Column 1)
RS1 (Regional Stability Column 1)
AT1 (Anti-Terrorism Column 1)
UN (United Nations Embargo)

Step 2: Check the Country Chart for Belgium

Next, we look at the row for Belgium in the Commerce Country Chart to see which of those controls result in an "X".

Control Reason	Belgium Status in Chart	The "Locked Door"
NS1	X	Yes
RS1	X	Yes
AT1	(No X)	No
UN	(No X)	No

The Compliance Challenge: To ship to Belgium without a license, we must find one License Exception that overcomes both the NS1 control AND the RS1 control.

Step 3: Analyzing Available License Exceptions

Now we look at EAR Part 740 to see which exceptions might apply to 9A610.x and if they can "unlock" both doors.

LVS (Shipments of Limited Value): The entry for 9A610 says "LVS: N/A". We cannot use this exception at all.
RPL (Servicing and Replacement of Parts): This might apply if we are replacing a worn-out part on an aircraft that was previously lawfully exported to Belgium. However, RPL has strict provisions and generally cannot be used if the new part upgrades the aircraft's capability.
TMP (Temporary Imports, Exports, and Reexports): Could we use this? Perhaps, if the part is going to Belgium for a trade show and will be returned to the UK. But if this is a permanent sale, TMP is off the table.
STA (Strategic Trade Authorization): This is the most likely candidate for allies like Belgium. But does it work for both "X"s?
- Does STA overcome NS1? Yes, for destinations in Country Group A:5 (Belgium is in A:5).
- Does STA overcome RS1? Yes, for destinations in Country Group A:5.

The Verdict: Because License Exception STA is authorized to overcome both the NS1 "X" and the RS1 "X" for Belgium, you may use it for this transaction (provided you meet all the other paperwork and consignee statement requirements of STA).

What if the destination was different?

Imagine the same shipment going to a country outside of NATO. If the Country Chart showed an "X" for NS1, RS1, and perhaps Missile Technology (MT1), License Exception STA would likely fail, because STA generally cannot be used to overcome Missile Technology controls.

In that case, despite having an exception that works for two out of three reasons, the third "locked door" (MT1) means you must apply for an export license.

Summary

Don't just look for a license exception; look for the right one. Always map the ECCN controls against the destination's "X"s on the Country Chart.

How We Can Help You Stay Compliant

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Free 1-Hour Consultation: Get a second pair of eyes on your compliance strategy. Book your session at www.customsmanager.org and select "Book Expert Call."
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