US Export Control Acronyms Explained: A Practical Guide

In practice:

• EAR – broader, economic/strategic orientation, more flexible licensing
• ITAR – narrower, defense‑focused, generally stricter and politically sensitive

ECCN, CCL, EAR99: Classifying Your Items

What Is an ECCN?

An ECCN (Export Control Classification Number) is a five‑character code that classifies items under the EAR. Example structure:

• Digit 1 – Category (e.g. 3 = Electronics, 5 = Telecommunications & Information Security)
• Digit 2 – Product group (A = Equipment, D = Software, E = Technology)
• Digits 3–5 – Technical reasons for control (e.g. performance thresholds)

Each ECCN appears on the CCL (Commerce Control List). The CCL tells you:

• Which technical features trigger control
• Which destinations, end uses and end users require a license

What Does EAR99 Mean?

EAR99 covers items subject to the EAR but not listed on the CCL with a specific ECCN. Many standard commercial items fall here.

• EAR99 does not mean “no rules”
• Embargoes, sanctions and “bad” end users can still require a license or even prohibit exports

For management: having a documented ECCN/EAR99 process is often the difference between “we were careful” and “we were negligent” in the eyes of regulators and insurers.

ITAR Building Blocks: USML, DSP‑5 and Technical Data

USML and Defense Articles

The USML (United States Munitions List) defines what counts as an ITAR‑controlled “defense article”. Categories range from firearms and military electronics to space systems and specific software and technical data.

If your product or service is ITAR‑controlled:

• Transferring drawings or CAD files to a non‑US person can be an export
• Remote access from outside the US can be a deemed export
• Re‑exports and re‑transfers by foreign partners are also regulated

Licensing Example: DSP‑5

One frequently cited acronym is DSP‑5 – a common license form for permanent export of unclassified defense articles and related technical data.

For mid‑sized engineering companies entering US defense supply chains, the key take‑away is simple: ITAR licensing takes time and precision. Contract negotiations and delivery schedules need to reflect that reality from day one.

Embargoes, Sanctions And “Bad Lists”: OFAC, SDN, FCPA

OFAC and SDNs

OFAC is the Office of Foreign Assets Control of the US Treasury. It administers US economic and trade sanctions.

Central in practice is the SDN List – Specially Designated Nationals and Blocked Persons List. Dealings with SDNs are heavily restricted or prohibited, even for non‑US companies in many situations (for example if US dollar payments or US banks are involved).

FCPA and Anti‑Corruption

The FCPA – Foreign Corrupt Practices Act – is not an export control law in the narrow sense but often appears in compliance discussions. It prohibits bribery of foreign officials and requires adequate accounting controls. For global M&A and US market entry, FCPA risk and export control risk frequently overlap in the same projects and counterparties.

End Use, End User, Destination: EPCI, ECRA, EAR Part 744

EPCI and Sensitive End Uses

EPCI – Enhanced Proliferation Control Initiative – refers to controls on certain exports where items might contribute to weapons of mass destruction programs. Technically, many of these controls sit in EAR Part 744, which deals with end‑use and end‑user based restrictions.

For exporters this means: even if your item is EAR99, delivering to the “wrong” project (e.g. certain nuclear or missile programs) may still be prohibited.

ECRA: The Statutory Backbone

ECRA – the Export Control Reform Act of 2018 – is the US law that authorizes and frames the EAR. It underpins the expansion of controls on “emerging and foundational technologies” such as advanced AI‑related chips and certain manufacturing equipment.

Strategically, this is where many high‑tech European and Asian companies suddenly find themselves under US export control scrutiny, even if they never saw themselves as part of “defense”.

Deemed Exports, Re‑Exports and US Person Concepts

What Is a Deemed Export?

Under the EAR and ITAR, a deemed export occurs when controlled technology is “released” to a foreign person within the US – or sometimes via remote access. For example:

• Non‑US engineers in a US facility viewing controlled technical data
• Remote access to US servers from a foreign subsidiary

This concept is often underestimated in global R&D and shared IT environments.

Re‑Exports and Re‑Transfers

Re‑export (EAR) and re‑transfer (ITAR) describe when a non‑US entity further passes on US‑controlled items or data. Many foreign companies discover US control obligations only when they try to ship US‑origin content onwards to a third country customer.

Result: exports stall, customers become impatient, and management realizes that there is no simple “we are outside the US, so US rules do not apply” position.

Building a Practical Export Control Framework

From Acronyms to Processes

For management and legal/compliance teams, the question is not to memorize every acronym but to build a lean framework that addresses the core risks:

• Classification – ECCN/EAR99 or ITAR/USML status for key products and technologies
• Screening – system‑based checks of customers, intermediaries and banks against SDN and other lists
• End‑use/end‑user controls – basic documentation of red‑flag analysis and approvals
• Contractual safeguards – export control clauses in distribution, licensing and M&A agreements
• Training – targeted briefings for sales, engineering and logistics

Done correctly, this reduces personal liability exposure for management, stabilizes cross‑border delivery chains and – for many – is a precondition for entering sensitive US markets, including defense‑related segments.

How LANA AP.MA Supports US Market Entry and Global Transactions

LANA AP.MA International Legal Services, headquartered in Frankfurt am Main with further offices in Basel and Taipei, focuses on the intersection of US market entry (including defense environments) and global M&A/transactions.

Founded in 2021 and led by Dr. Stephan Ebner, LANA AP.MA combines legal and economic advisory for mid‑sized and larger international companies. A rare element is Western legal qualification combined with bar admission in Taiwan – particularly valuable for Europe‑Asia‑US structures and supply chains.

Selected elements of the approach:

• US market entry and defense‑related setups with ring‑fencing of the European parent where appropriate
• Integration of export control and sanctions aspects into M&A due diligence, SPA drafting and post‑closing integration
• Use of owned media (WordPress blog, newsletter, YouTube interviews) as education and credibility assets, not as legal advice

You can learn more about LANA AP.MA’s services via lanaapma.com, the Swiss site lanaapma.ch and, for selected sectors, lanaapmaentertainment.com.

Key Take‑Aways on US Export Control Acronyms

US export control acronyms like EAR, ITAR, ECCN, EAR99, USML, OFAC and SDN stand for integrated systems that shape what your company may export, discuss or service – and under which liability risks. For internationally active businesses, especially those targeting the US market or global M&A, a structured understanding of these terms is essential. They are not just vocabulary; they are core elements of strategic risk management and compliant growth.

German Article can be found here: German Article.