10:18 Gene Christiansen, the longtime and more than a little grandfatherly BIS engineer may well be the only guy who can tell a joke with the punchline "EAR99" and actually get a laugh.
10:22 The first of what I expect will be for than a few helpful tips from Christiansen -- classification isn't just about finding a spot for your product on the Commerce Control List. Don't exclude the other possibilities -- specifically, that the item is publicly available or that it is not subject to BIS jurisdiction (i.e. it's on the US Munitions List rather than the CCL).
10:29 If you take a published textbook, extract from it and modify it in some way, the resulting text is not necessarily publicly available. According to Christiansen, even just highlighting the pertinent piece could be construed as a modification which removes something from public availability.
10:33 Element One of a Classification System: Determine if Items are Publicly Available
10:37 Denzil Tice of DDTC: Commodity jurisdiction determination is the first step in trade compliance. It’s also an ongoing effort, since the ITAR captures not just items designed for a military use, but items modified or adapted for one.
10:43 Only about 300 CJs issued by State each year.
10:54 CJ Tips: Remember that you’re writing for two audiences. First, the non-technical reviewers and second the technical people. Be up front and limit the background and flag-waiving. Do your research. Don’t assume State understands the item up for CJ. Fully explain any government funding, including what type. MilSpec/MilStd does not necessarily mean subject to the ITAR, but you should explain fully. If your marketing materials or website indicate a predominantly military application, explain why that differs from your CJ request.
10:56 Element Two of a Classification System: Review for Jurisdiction
11:00 ECCNs change – don’t assume that the classification you made years ago is still accurate today.
11:03 Most software and technology controls are tied to related hardware, though a relative handful are standalone controls.
11:17 Tips when you ask BIS to classify your product: Limit your request to six items. Resolve public availability and jurisdiction before you come to Commerce. Provide information and backup consistent with the technical parameters of the CCL, even if those aren’t necessarily the most common in your industry. Be consistent with the descriptions on your website or, if not, then explain.
11:21 When processing a classification, BIS will assemble the data, review their database for precedents, if jurisdiction is unclear refer to State for 48 hour review, then move forward with the review.
11:24 Q: Can you elaborate on MilStd? If an item is designed to a military standard, but for a commercial application, is it still under the EAR? A: Yes. There are military specifications for chocolate chips and dog cookies. That doesn’t mean they’re subject to the ITAR.
11:28 Q: Can a reexporter trust the exporter/manufacturer with classifications? A: Usually, but if much time passed between the export and the reexport it could be that the ECCN changed.
11:30 Q: How long does it take to process a CJ? A: About 160 days right now. Items are getting more complex even though we’re not seeing a huge increase in numbers of requests.
11:35 Q: What about other agencies’ jurisdiction? NRC? Interior? A: Don’t mean to exclude them, they’re just pretty rare.