Frequently Asked Questions

EAR99 is a designation on the BIS’ CCL. It acknowledges that an item is not on the CCL, but still subject to the EAR. EAR99 items can usually be exported without license, unless they are being exported to a sanctioned/embargoed country (such as Iran or North Korea), or a restricted/denied party.

Denied Party Screening is the process of identifying whether or not any parties involved in a transaction can be found on watch lists maintained by multiple U.S. government and international agencies. It helps to ensure organizations are not conducting business with a debarred party—be it an individual or a business entity.

Depending on the methodology or screening solution used (e.g., Descartes Visual Compliance™), screening for denied parties can also help to ensure organizations are not unlawfully doing business with someone located in a sanctioned or embargoed country.

To get your sanctions compliance right, check out this resource with tips on how the best denied party screening software solutions are set up.

OFAC sanction list search (also referred to as OFAC screening, OFAC checking, OFAC search, and OFAC scrubbing) is the process of identifying whether or not any entity or party you are engaged in a financial transaction with can be found on watch lists maintained by the Office of Foreign Assets Control (OFAC), a division of U.S. Department of the Treasury. This helps organizations ensure they do not do business with a sanctioned entity, individual, or business.

OFAC sanctions list searches can also extend to identifying sanctions and embargoes placed on nations and geographic and political jurisdictions, further allowing organizations to be confident they are not engaging in transactions with parties facing trade restrictions.

Exports do not necessarily have to involve the physical transfer of goods or information out of the country. If, for example, controlled information is transmitted or exposed to a foreign national via electronic means, it counts as a “deemed export”, even if said foreign national resides in the United States. Any organization can fall foul of deemed export violations, with educational institutions and research facilities known to be at high risk for such violations—inadvertent or otherwise.

Any organization doing business in the United States, or with American citizens or organizations, has a legal obligation to meet American export compliance requirements, regardless of whether or not they are based in the U.S. Any transactions conducted in the U.S. dollar, or routed and processed through American financial institutions, come under the purview of OFAC. Additionally, organizations may also be bound by the export compliance regulations of the countries they are based out of and do business in.

Should your organization determine that your exports are covered by either the EAR or ITAR, you must either apply for the appropriate license, determine whether they come under the purview of an exemption (ITAR) or determine if it is possible to get an exception (EAR).

If an item is covered by the CCL or USML, and your organization cannot get a license, exception, or exemption, you will be unable to legally export said item.

In the United States, there are three primary U.S. government bodies that regulate exports:

Additionally, other countries and international organizations, such as the European Union, have their own departments enforcing export controls aligned with their policies and goals.

If an item falls under the EAR or ITAR, a license is needed in order to export. Licenses are limited by time, value, or number of exports, and must be renewed upon expiry.

For items under the EAR, there are multiple categories of license exceptions. Should your organization’s goods qualify for these, you may not need an export license. The exceptions apply to limited cases, including public domain information, fundamental research, and educational information. If the items are on the CCL, and designated EAR99 (see below), they may not require a license unless they are being exported to an embargoed country or a restricted party.

For items on the USML, there are countries that may be exempt from needing licenses. Broad USML exemptions are largely blocked by the United States government in consideration of national security. However, there have been exemptions made for scientific research, and smaller scale exemptions arising from treaties in the past.