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Foreign Company Requirements for Receipt of U.S. Export Controlled Commodities/Technical Data

A common question asked is what are the responsibilities for foreign parties who are in receipt of U.S. export controlled commodities and technical data. The U.S. exporter needs to know these requirements to not only assist their foreign customers with their compliance to U.S. export laws and regulation, but also for the U.S. exporter to ensure they are not culpable in any export violations by the foreign parties that might occur as a result of receipt of incorrect or missing information.  Restrictions on U.S. export controlled commodities or technical data may involve the foreign company’s use, resale, distribution, return to the U.S. or other disposition of the U.S. export controlled commodities and technical data.

 

The most important action to be taken by the U.S. exporter/shipper is to clearly and properly note the classification and licensing authority, if applicable, on the Commercial Invoice, or other transmittal documents (email, fax cover sheet, etc.),  for all export shipments.  Also, any technical data should be marked with the proper export classification and/or the correct U.S. export control warning statement. U.S. companies should have statements in their terms and conditions of sale that reference U.S. export control requirements and foreign party requirements. While there are few restrictions for U.S. non-licensable commodities/technical data (ECCN EAR99 items), foreign parties are restricted from transferring U.S. commodities/technical data to U.S. sanctioned/boycotted companies and countries for both licensable and non-licensable items.

 

Foreign parties should maintain documentation to validate their proper use and disposition of U.S. commodities and technical data. This documentation should include maintenance of records of the use or shipment of U.S. commodities to other parties, copies of shipping documents (to include any statements the foreign party is required to place on their invoices based on agreement or license approvals), records of the disposal of the items or return of items to the U.S.

 

In addition, a foreign company owned by a U.S. company has additional U.S. export compliance requirements for the use, sale and/or disposition of U.S. commodities and technical data including transactions involving U.S. restricted/sanctioned companies and countries.

 

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