INTERNATIONAL TRADE LAW
How to Comply with BIS Export Control Regulations
To comply with BIS regulations, classify your item, screen every party and destination, get any required license, and keep records — all under the Export Administration Regulations. The Bureau of Industry and Security (BIS), part of the U.S. Department of Commerce, administers those rules for “dual-use” goods, software, and technology — items with both commercial and potential military or proliferation uses. Getting the sequence right is what keeps a routine shipment from becoming an enforcement case.
What BIS Actually Regulates
BIS runs the Export Administration Regulations (EAR), codified at 15 CFR Parts 730–774, under the permanent authority of the Export Control Reform Act of 2018. The EAR covers dual-use and less-sensitive military items. It does not cover everything: defense articles and services on the U.S. Munitions List are controlled by the State Department under the ITAR, a separate regime. Confusing the two is one of the most common — and costly — exporter mistakes, so the first question is always which agency’s rules apply. (See what BIS is and does and how to handle genuine defense articles.)
If you are unsure whether your item is EAR or ITAR, you can file a commodity jurisdiction request to get an official answer before you ship.
The Five Steps to Compliance
Every compliant export follows the same disciplined routine. Skipping a step is where violations come from.
| Step | What you do | Why it matters |
|---|---|---|
| 1. Classify | Find your item’s ECCN on the Commerce Control List, or confirm it is EAR99 | Classification drives every other decision |
| 2. Screen | Check all parties against the Entity List, Denied Persons List, and other restricted-party lists | Dealing with a listed party is prohibited |
| 3. Determine licensing | Match ECCN + destination against the Country Chart to see if a license is needed | Most violations are unlicensed exports |
| 4. Document | Record classification, screening, licenses, and end-use statements | Records prove diligence in an audit |
| 5. Train and audit | Keep staff current and review the program regularly | Controls only work if people follow them |
Step 1 — Classify the item
The starting point is the Export Control Classification Number (ECCN). You determine it by matching your product’s technical characteristics against the categories on the Commerce Control List. If no entry fits, the item is designated EAR99 — subject to the EAR but generally exportable to most destinations without a license. Most consumer goods are EAR99; controlled technology rarely is.
Step 2 — Screen the parties and destination
Classification tells you what the item is; screening tells you who you can send it to. Run every customer, intermediary, and end user against the U.S. government’s restricted-party lists — chiefly the Entity List, the Denied Persons List, and the Unverified List — and check the destination for embargoes or restrictions. A correct ECCN does not authorize a shipment to a prohibited party.
Step 3 — Determine whether you need a license
With the ECCN and destination in hand, use the Commerce Country Chart to see whether the reasons for control (national security, anti-terrorism, and so on) require a license for that destination. Sometimes a License Exception applies; sometimes you need an outright license. When in doubt, treat the shipment as requiring authorization until you confirm otherwise.
Step 4 and Step 5 — Document, train, and audit
Keep records of the analysis behind each export — classification, screening results, license numbers, and end-use representations. BIS expects them, and they are your best defense in an audit. Most companies that ship regularly formalize all of this in a written export compliance program and train staff against it.
What Non-Compliance Costs
The penalties are real and recently were made stiffer. For administrative violations of the EAR, BIS can impose a civil penalty of up to the greater of roughly $374,474 per violation (the 2025 inflation-adjusted figure, carried into 2026, and updated annually) or twice the value of the transaction. Willful criminal violations carry fines of up to $1 million per violation and up to 20 years of imprisonment under the Export Control Reform Act. BIS can also deny a company’s export privileges outright — often the most damaging outcome, because it cuts off access to U.S.-origin goods and technology entirely.
Frequently Asked Questions
What is the difference between BIS and ITAR? BIS administers the EAR for dual-use items at the Commerce Department. The ITAR is a separate regime for defense articles, administered by the State Department. Many items fall under the EAR, but some genuinely defense-related goods are ITAR-controlled.
What is an ECCN? An Export Control Classification Number identifies where your item sits on the Commerce Control List. It determines whether a license is needed for a given destination. If no ECCN applies, the item is EAR99.
Do I always need a license to export? No. Many items are EAR99 or qualify for a License Exception and need no license for most destinations. You still must classify, screen, and document — a license requirement is only one possible outcome of that analysis.
What happens if I discover a past violation? You can file a voluntary self-disclosure with BIS. Doing so is a significant mitigating factor; a deliberate decision to stay silent on a serious violation can make things worse.
Not sure whether your product needs a BIS license? Reidel Law Firm prepares flat-fee Import/Export Compliance Memos that classify your item, check the destination and parties, and tell you exactly what BIS requires — with direct access to the trade attorney handling your matter. Get a flat-fee compliance memo →
