What is Export Administration Regulations (EAR)?

What is Export Administration Regulations (EAR)?

EAR covers the commercial component of product and data import and export. It applies to dual-use items, which are available both for commercial sales and government use, like Aerospace and Propulsion data or Information Security. Items subject to EAR are enumerated on the Commercial Control List (CCL) in a few categories of products or services. The legislation seeks to control access to specific types of technology and the associated data. Its goal is to prevent the disclosure or transfer of sensitive information to a foreign national. 

Penalties for EAR Compliance Violations

Export control laws provide for substantial penalties. Failure to comply with EAR can result in civil fines and criminal penalties with fines per violation. 

  • Civil fines up to $250,000 per violation
  • Criminal fines of up to $1 million and/or 20 years imprisonment per violation

Examples of Items subject to EAR

  • Navigation and Avionics
  • Aerospace and Propulsion
  • Information Security
  • Telecommunications
  • Materials Processing
 

Source: o365_data_guidance_and_encryption_instructions.pdf (nasa.gov)

How is compliance achieved? 

To be ITAR or EAR compliant, a manufacturer or exporter whose articles or services appear on the USML or CCL lists must register with the U.S. State Department’s Directorate of Defense Trade Controls (DDTC). ITAR and EAR compliance can be problematic for a global corporation because the data related to a specific type of technology may need to be transferred over the Internet or stored locally outside the United States to make business processes flow smoothly. It is the responsibility of the manufacturer or exporter to take the necessary steps to certify that they are in compliance with the regulations. 

What is the difference between ITAR and EAR? 

Both are export regulations. ITAR is for defense goods and services whereas EAR is for commercial goods and services. 

ITAR [22 CFR 120-130]EAR [15 CFR 730-774]

Covers military items or defense articles.

Regulates goods and technology designed to kill or defend against death in a military setting.

Includes space related technology because of application to missile technology.

Includes technical data related to defense articles and services.

Strict regulatory licensing – does not address commercial or research objectives.

Regulates items designed for commercial purpose which could have military applications such as computers or software. 

Covers both the goods and the technology.

Licensing addresses competing interests and foreign availability. 

Combines commercial and research objectives with national security.

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