Products and Export Regulations
When you export your products you need to be very clear about where your products originate from, and unfortunately the answer may not always be as cut and dried as you might think. It really is quite rare in todays world for a product to come entirely from one place – it is often the case that materials come from various countries.
In this article we are coming from a U.S. perspective – needless to say, this concept applies to companies producing products in all countries, so check the regulations in your local market to be sure what regulations you need to take into consideration!
1. If a product is in the United States, it is subject to U.S. export regulations. Hence, if you are doing business in the U.S., are creating a product in the U.S., or have a product from another country within the U.S. that product is subject to U.S. regulations.
2. If a specific items originates in the U.S. (regardless of the country it is in) it is subject to U.S. regulations too. Why is this important? If you can’t ship a good that originated in the U.S. from the U.S. to Country X. Then you can not ship it from Country Y, to Country X either. The same rule applies when it comes to licensing.
3. Foreign-made items that incorporate more than de minimis amounts (more than 25%) of controlled U.S. content are subject to U.S. regulations as well.
4. Foreign-made items utilising U.S. technology (blueprints, manufacturing technologies etc.)
Of course there are various other specific scenarios in which products may be subject to U.S. regulations. For more information on this topic you can refer to the EAR, which is issued by the United States Department of Commerce, Bureau of Industry and Security (BIS) under laws relating to the control of certain exports, reexports, and activities.
For a digital copy, click here.