Export Compliance & Trade Controls
Analyze products, destinations, and end-users against US export control regulations (EAR, ITAR, OFAC sanctions). Generate classification recommendations, license requirements, and compliance checklists.
What It Does
When given a product description, destination country, and end-user details:
- ECCN Classification — Map product characteristics to likely Export Control Classification Numbers (Commerce Control List)
- Sanctions Screening — Check destination country and end-user against OFAC SDN list indicators, Entity List red flags, and denied parties patterns
- License Determination — Identify whether a license exception applies (e.g., TMP, TSR, ENC) or if a formal BIS license is needed
- Red Flag Checklist — Walk through the BIS "Know Your Customer" red flags for the transaction
- Documentation Pack — Generate: Shipper's Letter of Instruction template, End-Use Certificate template, Internal compliance memo
How to Use
Provide the agent with:
- Product: What you're exporting (software, hardware, technical data, services)
- Destination: Country and specific entity/address
- End-user: Company name, industry, known affiliations
- Value: Transaction value (for de minimis calculations)
Example prompt:
Run export compliance check:
Product: Cloud-based encryption software (AES-256, key management)
Destination: United Arab Emirates
End-user: Dubai National Bank
Value: $180,000/year
Classification Framework
EAR Categories (Commerce Control List)
| Category | Description | Common Items |
|---|
| ---------- | ------------- | -------------- |
| 0 | Nuclear & Misc | Nuclear equipment, materials |
| 1 | Materials | Chemicals, alloys, composites |
| 2 | Materials Processing | Machine tools, robots |
| 3 | Electronics | ICs, sensors, lasers |
| 4 | Computers | Hardware, software, crypto |
| 5 | Telecom & Infosec | Encryption, network gear |
| 6 | Sensors & Lasers | Cameras, radar, sonar |
| 7 | Navigation | GPS, INS, accelerometers |
| 8 | Marine | Vessels, submersibles |
| 9 | Aerospace | Aircraft, engines, UAVs |
Control Reasons
- NS (National Security), MT (Missile Technology), NP (Nuclear Nonproliferation)
- CB (Chemical/Biological), CC (Crime Control), RS (Regional Stability)
- AT (Anti-Terrorism), SS (Short Supply), UN (UN Sanctions)
License Exception Quick Reference
| Exception | Use Case |
|---|
| ----------- | ---------- |
| ENC | Mass-market encryption products |
| TMP | Temporary exports/reexports |
| TSR | Technology/software under restriction |
| GOV | US government agencies abroad |
| BAG | Personal baggage |
| RPL | Replacement parts (one-for-one) |
| CIV | Civil end-users (Country Group B) |
OFAC Sanctions Programs (Active)
- Comprehensive: Cuba, Iran, North Korea, Syria, Crimea/DNR/LNR
- Targeted: Russia, Belarus, Myanmar, Venezuela, Nicaragua, China (military), Ethiopia, Mali, others
- SDN List: 12,000+ designated persons/entities — screen every transaction
Red Flags (BIS "Know Your Customer" Guidance)
- Customer reluctant to provide end-use/end-user info
- Product inconsistent with buyer's line of business
- Unusual shipping routes or intermediary countries
- Customer willing to pay cash for expensive items
- Delivery to freight forwarder rather than end-user
- Evasive answers about whether item is for domestic use or export
- Order for items incompatible with technical level of destination country
- Customer has P.O. Box or residential address for commercial goods
- Abnormal packaging or marking requests
- Customer declines normal installation/training/maintenance
De Minimis Rule
US-origin controlled content below these thresholds may not require a license:
- 25% for most countries
- 10% for Country Group E:1 (terrorism-supporting) and E:2
- Calculate: (value of US-origin controlled content / total value) × 100
Output Format
═══ EXPORT COMPLIANCE ASSESSMENT ═══
PRODUCT CLASSIFICATION
Likely ECCN: [number]
Category: [description]
Control Reasons: [NS/MT/etc.]
DESTINATION ANALYSIS
Country: [name]
Country Group: [A:1, B, D:1, etc.]
Sanctions Programs: [if any]
Embargo Status: [comprehensive/targeted/none]
END-USER SCREENING
Entity List: [clear/match/possible match]
SDN List: [clear/match/possible match]
Red Flags Triggered: [list any]
LICENSE DETERMINATION
License Required: [yes/no/likely]
Applicable Exceptions: [if any]
Recommended Action: [proceed/investigate/halt]
DOCUMENTATION NEEDED
□ Shipper's Letter of Instruction
□ End-Use Certificate
□ Compliance Memo
□ [additional as needed]
═══════════════════════════════════
Industries That Need This
- Software companies selling internationally (especially encryption, AI/ML, cybersecurity)
- Hardware manufacturers with dual-use components
- Defense contractors and subcontractors
- Universities with international research collaborations
- Logistics and freight forwarding companies
- Any company doing business with sanctioned countries
Regulatory References
- Export Administration Regulations (EAR): 15 CFR Parts 730-774
- International Traffic in Arms Regulations (ITAR): 22 CFR Parts 120-130
- OFAC Sanctions: 31 CFR Part 500
- Commerce Control List: Supplement No. 1 to Part 774
- Country Chart: Supplement No. 1 to Part 738
- Entity List: Supplement No. 4 to Part 744
Built by AfrexAI — AI context packs for business operations.