What are Export Administration Regulations (EAR)?
The Export Administration Regulations (EAR) are regulations issued by the Bureau of Industry and Security. Bureau of Industry and Security is supervised by US Commerce Department. The EAR applies when exporting something from the USA to another country or re-exporting the thing from one foreign country to another foreign country. The Export Administration Regulations (EAR) defines re-export as the export of commodities from first foreign country to another foreign country and then subsequent export to other countries.
EAR Application
The EAR applies to the following categories:
- All commodities trading in United States and commodities that transit through United States.
- All US-made item located anywhere in the world.
- All foreign-made commodities that are produced with US origin
- Technology or commodities produced with the US origin technology or software located outside USA.
Exceptions to EAR Application
The Export Administration Regulation (EAR) is not applicable to the following:
- Commodities controlled by certain agencies and the US government. Export and re-export commodities for national security of foreign policy are exempted from EAR.
- Treasury Department and OFAC controled and regulated embargo transactions with certain countries.
- EAR is not applicable to commodities regulated by US National Regulatory Commission (NRC). NRC regulates the export and re-export of commodities related to nuclear assets.
- Commodities regulated by Department of Energy are exempted from EAR. DOE controls the export and re-export items related to special nuclear assets.
- Military assets that are regulated by Department of Defense and Department of State Foreign Military Sales are not subject to EAR. The sales, lease or any loan made by DOD and FMS are not subject to EAR but rather they are subject to regulations of Arms Export Control Act