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When wanting to expand your business overseas, there are a plethora of factors to consider. Two of these factors consist of Export Administration Regulations (EAR) and International Traffic in Arms Regulations. Both of these regulations are critical to wholesalers, distributors, contractors, and third-party suppliers who would like to promote and expand their products and services outside of the United States.
The Export Administration Regulations (EAR) are regulations concerning exports and their restrictions. These regulations restrict exporting to specific countries without licenses, exporting specific U.S technology, and more. Complying with EARs is essential in regard to protecting the United States' foreign policy, economic, and technical advancement goals.
The International Traffic in Arms Regulations (ITAR) regulates the selling and exporting of items stated within the United States Munitions List (USML). These restrictions are focused on defense and space-related technologies and data. All items on the United Munitions List should only be accessed by United States citizens and the ITAR helps keep this regulated.
The main difference between EARs and ITARs is that EARS regulates commercial items. These commercial items may be also used by the U.S government and military however they are also used in the commercial market. Whereas, ITARs solely focus on technology and data dedicated to de
fense and space use. With the correct license, you may still import certain technology in regards to the Export Administration Regulations; however, the technology mentioned in the ITARs is strictly prohibited for sale and distribution outside of the United States.
A good tool to use when assuring compliance with the above regulations is the Consolidated Screening List! This list consists of individuals and parties who are restricted by the United States government regarding their exporting and transferring of items. This allows federal contractors to verify that all parties involved in their international export transactions are also compliant with EARs and ITARs. By using the Consolidated Screening List, you can retrieve a list of individuals who are denied international exports, parties that are unverified or possess “red flags”, and parties that require a license for certain items. Overall, it is important for federal contractors to know who they are working with and make sure all parties within their transactions are in compliance.
Not only do we at Carroll International utilize tools such as the Consolidated Search List, but we also work closely with the North Carolina World Trade Association (NCWTA). The NWCTA recently opened its newest chapter, the Southeast chapter which includes Wilmington, Fayetteville, Greenville, and other surrounding areas. They assist businesses with understanding the importance of exporting and importing in global markets and provide support for businesses wanting to expand overseas. If you would to join NC World Trade Association, please register here: https://ncworldtrade.org/join
The Carroll International Team assists Original Equipment Manufacturers (OEMs) in marketing and selling their products to the federal government as well as America's allies overseas in the litigious world of federal and international trade. We first assist our partner OEMs by finding the demand for their products and services overseas. We then market and sell their products as a sales force multiplier. This allows our partner OEMs to eliminate the hassle of navigating through international exportation.
Overall, it is important for federal contractors to take the time to understand all of the regulations and requirements involved with international trade. Not only should your business be in compliance with regulations, but all parties involved in their transactions should also be in compliance. The NCWTA successfully helped Carroll International with our journey to international exportation and we highly recommend others to also utilize the resources they provide.