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E-Commerce

Why Should You Care about the Export Administration Regulations Requirements?

You will not find the term“E-Commerce” within the Export Administration Regulations (EAR); however, commerce transacted electronically may be subject to the EAR, the same as transactions that are not electronically facilitated.

The EAR apply to the conduct of business communication and transactions over networks and through computers and with the non-electronic buying and selling of goods and services and the transfer of funds. Your export (or deemed export)/reexport (or deemed reexport)/transfer transactions and other services may be subject to the EAR. Some transactions and activities specific to the E-Commerce environment where you should determine if you are subject to the EAR include:

Orders processed using the internet with tangible delivery of goods;
Intangible downloads and releases of technology and software.
The various services performed during transactions; and
Transfer of funds to certain entities and prohibited activities.

What Should You Do First?

Determine whether your transactions and/or activities are subject to the EAR.

Link to Export Control Basics

What is An Export?
Any item that is sent from the United States to a foreign destination is an export. “Items” include commodities, software or technology, such as clothing, building materials, circuit boards, automotive parts, blue prints, design plans, retail software packages and technical information. How an item is transported outside of the United States does not matter in determining export license requirements. For example, an item can be sent by regular mail or hand-carried on an airplane. A set of schematics can be sent via facsimile to a foreign destination, software can be uploaded to or downloaded from an Internet site, or technology can be transmitted via e-mail or during a telephone conversation. Regardless of the method used for the transfer, the transaction is considered an export for export control purposes. An item is also considered an export even if it is leaving the United States temporarily, if it is leaving the United States but is not for sale, (e.g. a gift) or if it is going to a wholly-owned U.S. subsidiary in a foreign country. Even a foreign-origin item exported from the United States, transmitted or transhipped through the United States, or being returned from the United States to its foreign country of origin is considered an export. Finally, release of technology or source code subject to the EAR to a foreign national in the United States is “deemed” to be an export to the home country of the foreign national under the EAR.

Link to Export Control Basics

What is An Export?

Any item that is sent from the United States to a foreign destination is an export. “Items” include commodities, software or technology, such as clothing, building materials, circuit boards, automotive parts, blue prints, design plans, retail software packages and technical information.

How an item is transported outside of the United States does not matter in determining export license requirements. For example, an item can be sent by regular mail or hand-carried on an airplane. A set of schematics can be sent via facsimile to a foreign destination, software can be uploaded to or downloaded from an Internet site, or technology can be transmitted via e-mail or during a telephone conversation. Regardless of the method used for the transfer, the transaction is considered an export for export control purposes. An item is also considered an export even if it is leaving the United States temporarily, if it is leaving the United States but is not for sale, (e.g. a gift) or if it is going to a wholly-owned U.S. subsidiary in a foreign country. Even a foreign-origin item exported from the United States, transmitted or transhipped through the United States, or being returned from the United States to its foreign country of origin is considered an export. Finally, release of technology or source code subject to the EAR to a foreign national in the United States is “deemed” to be an export to the home country of the foreign national under the EAR.

Whom May You Contact to Ask E-Commerce Related Questions?

In May 2003, a BIS E-Commerce Working Group was established to develop and distribute compliance guidelines for exporters/reexporters. The Working Group consists of members from the Office of Exporter Services, Office of Export Enforcement, Office of Enforcement Analysis, Office of National Security and Technology Transfer Controls, and the Chief Counsel’s Office. The objectives of the BIS E-Commerce Working Group are:

To serve as the BIS point of contact for all BIS E-Commerce questions to ensure BIS communicates consistent responses;
To establish the BIS E-Commerce FAQ’s as a method to communicate guidance; and
To develop comprehensive guidelines and share best practices.

What is the BIS Process for Responding to E-Commerce Questions?

You may send a question to the BIS E-Commerce Working Group mail box. A response will be drafted and cleared by BIS. Generally, you may expect a reply within thirty days. If this will not be the case, you will be contacted by a member of the Working Group and informed of the next steps that will be taken to ensure you receive a response.

You may send your questions via e-mail through the following option:
E-Mail the E-Commerce Working Group

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