How does export control reform in the United States affect overseas purchases?



    Over the past two years, online shoppers have been confronted with an unforeseen problem, namely that some items previously available for purchase suddenly appeared on the list of prohibited products. For example, clothing in camouflage colors or individual fishing gear. There were disputes on the network here and there about the reasons for such a change, but the truth, as always, was somewhere nearby and turned out to be quite banal - introducing amendments to the legislation.

    US authorities launched three-phase export control reform several years ago, which is designed to streamline all existing norms and create a single automated mechanism for controlling the export of goods abroad, which will allow the authorities to conduct regular inspections and keep abreast of the export market. In August 2015, reform entered the second phase, and federal authorities are urging exporters to also bring their procedures in line with the new requirements.

    What does this mean?

    90% of exported goods do not require licensing and are not subject to additional regulation. Only 10% of export turnover is covered by the Commerce Control List ( CCL ), and such products will be assigned ECCN ( Export Control Classification Number) This number indicates the characteristics of the product that make it possible to use it for military purposes, in nuclear energy, telecommunications and several other fundamentally important industries. Each exporter must check the processed goods for CCL compliance and establish a classification number (ECCN) if it was assigned by the manufacturer.
    Of course, when buying, for example, Levi's jeans or the next volume of “Game of Thrones” on the American Amazon or Ibei, you should not look in the description of the ECCN lot. But if you are planning to purchase equipment or electronics, it will always be useful to look at the manufacturer’s website and check the information on the availability of ECCNto avoid rare but still possible limitations. Or write to our support team, and we will be happy to clarify for you if possible the delivery of goods in advance, before its purchase. Immediately postpone the idea of ​​buying in the United States, say, a laser sight, camouflage uniforms or a hidden camera, even if you needed all these things only for the recently passed Halloween masquerade.

    Let us now return to goods that do not have an ECCN (collective number EAR99 ) and are not subject to the export control list. Does this mean that if the product is not regulated, it can be exported without hesitation? Not really.
    Before taking any investment outside the United States, the exporter must make sure that the shipment does not violate applicable embargoes or sanctions against the country of destination, that the recipient is not on the blacklist of persons who are denied export privileges, and, finally, that he does not have doubts about the possible misuse of the goods.
    If countries with embargoes can be counted on the fingers of one hand, at least a dozen government agencies share lists of banned persons .
    For each of the lists, it is necessary to check the recipient's data, manually or through Denied Party Screening systems .



    The same rule follows the “ Know your customer ” rule.”, Which encourages exporters to confirm customer data in order to be sure - the final recipient is exactly the person whose data is specified in the order, and this is a real person or legal entity.

    Do not forget about the rules of the International Air Transport Association ( IATA ) and the provisions of the Universal Postal Union ( UPU ). A prohibited investment in mail is, among others, any medications and medical equipment (including syringes, surgical needles, etc.), liquids over 1 liter (cumulatively per package), combustible substances (e.g. perfumes), any aerosols or goods under pressure (e.g. airbags), etc.

    Failure to comply with export control requirements, whether intentionally or unknowingly, entails serious consequences for both the exporter and the recipient.

    Our friends in MyUS seen this first hand in 2013 when the company's warehouse was raided by law enforcement and customs authorities. Few people know that the forwarder is still in litigation, trying to reduce the fine imposed on them in the amount of $ 48 million.
    In addition to astronomical fines, violations of export laws also threaten long-term prison sentences - up to 20 years for each violation detected . Just the other day, the Federal Court of New York pleaded guilty to three Russians accused of complicity inthe illegal export of microelectronics from the United States to Russia. Recall that in the United States, all sentences are summed up for each proven fact of a crime, which is why former procurement manager of Arc Electronics Alexander Posobilov faces up to 185 years in prison.

    Recipients of goods that were exported in violation may be blacklisted, lose their right to export goods from the United States and partner countries, lose existing foreign visas, or be denied a visa in the future. In extreme cases, recipients may also be held administratively and criminally liable in their country or extradited to the United States.

    How reforms touched LiteMF

    As you understand, such important events in export control affairs did not leave aside our service. The fact that our company is a major exporter to the Russian Federation also leaves its mark in the light of the aggravated geopolitical situation .

    As described in Supplement No. 3 to Part 732 of the EAR, whenever a person who is clearly not going to be using the item for its intended end use (eg, a freight forwarder) is listed as an export item's final destination, the exporter has an affirmative duty to inquire about the end use, end user, and ultimate destination of the item to ensure the transaction complies with the EAR.

    Recently, we managed to talk with representatives of the Bureau of Industry and Security ( BIS), The Federal Bureau of Investigation ( FBI ), and the Transportation Security Administration ( TSA ) . During the conversation, we received valuable recommendations on meeting the updated export control requirements, and it became clear that in the near future these organizations will conduct an audit of compliance with the export requirements of all market participants.
    In order for our clients and their parcels to avoid unwanted attention of the authorities during the export process, we are already striving to update our procedures and to maximize check incoming and outgoing parcels for compliance with export rules. And that means:
    • have at our disposal invoices for all goods in stock, including requesting and checking invoices for each independent purchase using the Mail Forwarding (MF) service;
    • view the contents of all receipts for the presence of a prohibited investment;
    • declare the contents in strict accordance with the actual parameters of the investment (name, description, price);
    • Confirm ownership of the account by the person in whose name, email and phone the profile is registered;
    • Confirm the actual addressees in whose name the parcels are sent.


    If your package was delayed a little in the warehouse last week, we’ll immediately answer - yes, this is due to the optimization of new verification procedures. This time, all goods in the warehouse passed the inspection at once, which suspended their packaging and dispatch.
    We thank you for your understanding and assure you: all procedures that will be gradually introduced to meet export and import requirements serve your interests. Agree, it is better to spend 15 minutes loading an invoice for an independent purchase by the MoF and find out about the restriction on the goods before sending, than to lose an international visa due to an export violation or to receive an administrative offense instead of buying an import (remember how overwhelmed last year on RuNet, the story with the Moto G smartphone? https://sites.google.com/site/darktermit/moto-g)
    To make the work of the warehouse even better, we put a lot of effort. However, changes, even the most positive ones, temporarily slow down the sending of packages.

    Happy shopping, friends, and safe!


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