Fundamentals of Market Selection for Exporters

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This is not a trick question, but it has many answers, including geographic, strategic, regulatory, and more.

• Which export control applies? EAR? ITAR? Something else?
• Where are my customers?
• Which export markets fit my current budget (including money, personnel, time)?

Export Administration Regulation (EAR) or International Traffic in Arms Regulations (ITAR)? 

Determining which of these export controls applies is an important first step in your international trade journey. 

Whatever the answer may be, the goal is the same: protect U.S. national security and foreign policy interests by preventing the unauthorized export of controlled or defense items to foreign persons.

ITAR rules regulate the export of defense articles and services. 

This may even include the exchange of sensitive information to a foreign person. The articles and services regulated under ITAR are identified in the United States Munitions List (USML). Every entity along the supply chain must be ITAR-compliant.

EAR rules regulate . . . everything else? 

EAR rules control commercial goods and dual-use items (used both for commercial and military purposes) that are not on the ITAR's USML or other export control lists. 

The Commerce Control List (CCL) is a list of regulated commercial items that includes 10 categories and five product groups. Each item that falls under the purview of the EAR is assigned an Export Control Classification Number (ECCN). Exporters and manufacturers are responsible for proper classification.

Reminder:  Additional federal agencies (e.g., FDA, USDA) may have a regulatory role.

Next, we'll look at steps to get started on Market Selection.