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There are export rules in place which mean that some types of goods can only be legally sold overseas by licensed exporters. These products are listed on the commerce control list, and given an ECCN classification by the Department of Commerce. If you’re exporting, you’ll need to check if your goods have an ECCN to see if you need a license.
An ECCN — Export Control Classification Number — is used to identify items which may be subject to export control.
Most commercially-exported products are designated EAR99 — meaning exporters usually don’t need any special license to sell overseas. However, there are also a range of goods — such as chemicals, electronics and computers — which may be on the Commerce Control List (CCL), meaning exporters are subject to licensing rules.
You can check if you need a license to export your goods by looking for an export control classification number. If the Department of Commerce has issued an ECCN, you need to take some time to look at the export rules, and get yourself the appropriate license before you can proceed.
Paying overseas invoices — or receiving a payment from a customer based outside of the US — can be expensive. Not only do you have administration fees to consider, you may also find you’re given a poor exchange rate by your bank or service provider, pushing prices up further.
With Wise Business, you don’t need to worry about high bank fees or unfair exchange rates. Instead, you can simply and securely send money all over the world using the mid-market exchange rate. Payments are often quicker than regular international wire transfers, and there’s only a low upfront fee to pay.
If you need to receive payments, you can do so from the US, UK, euro area, Australia and New Zealand. Get yourself a debit card, and you can also make ATM withdrawals and spend your money easily wherever you are in the world.
ECCNs are 5 character alphanumeric codes, for example 3A001:
Commerce Control List Categories | Commerce Control List Categories | ||
---|---|---|---|
0 | Animal & Animal Products | 7 | Raw Hides, Skins, Leather, & Furs |
1 | Vegetable Products | 8 | Wood & Wood Products |
2 | Animal or Vegetable Fats and Oils | 9 | Pulp of Wood or of Other Fibrous Material |
3 | Prepared Foodstuffs | 10 | Textiles |
4 | Mineral Products | 11 | Footwear / Headgear |
5 | Chemicals & Allied Industries | 12 | Stone / Glass |
6 | Plastics / Rubbers | 13 | Natural or Cultured Pearls |
Here’s what to do if you need an ECCN for your planned export. You have a few different options, including:
Get the best possible exchange rate when paying for imports in foreign currencies.
If you’re new to importing, the different terminology used can be confusing. As well as ECCN numbers, you may have heard of Schedule B numbers. Schedule B numbers are codes produced by the US Census Bureau to track trade statistics, measuring the volume and value of exports out of the country, for example.