How to Export Raw Materials: U.S. Compliance Guide

To export raw materials legally from the United States, you do four things in order: classify the commodity, confirm whether an export license is required, screen every party to the deal, and file Electronic Export Information (EEI) before the shipment leaves. Everything else — pricing, logistics, buyer relationships — is commercial. These four steps are where the legal exposure lives, and getting any of them wrong is what triggers penalties, holds, and seizures.

Step 1: Classify the Commodity

Every export starts with two numbers. The Schedule B number (a 10-digit U.S. Census classification) identifies the commodity for export-statistics and filing purposes, and the Export Control Classification Number (ECCN) tells you whether the item is controlled for national-security or foreign-policy reasons.

Most raw materials are not on the Commerce Control List and fall under the catch-all designation EAR99 — items subject to the Export Administration Regulations (EAR) but not specifically controlled. EAR99 is not a free pass. An EAR99 commodity still needs a license if it is going to an embargoed or sanctioned destination, to a party on a restricted-party list, or for a prohibited end use. Classification is the step that tells you which bucket you are in, so it is never optional.

Step 2: Confirm Whether a License Is Required

Raw materials draw extra scrutiny because some are subject to short supply controls under Part 754 of the EAR. The Bureau of Industry and Security (BIS) requires a license — to every destination, including Canada — for exports of unprocessed western red cedar, crude oil, and certain petroleum products. If you trade in those commodities, a license is the starting assumption, not the exception.

Other raw materials route through different agencies entirely. Agricultural commodities, plants, and animal products can require USDA/APHIS permits or phytosanitary certificates; certain minerals and chemicals fall under other licensing regimes. The practical rule: confirm the controlling agency for your specific commodity before you assume the export is unrestricted.

Step 3: Screen Every Party to the Transaction

The most common compliance failure is not the classification — it is shipping a perfectly ordinary EAR99 commodity to the wrong party. Before you ship, screen the buyer, the end user, the freight forwarder, and any intermediary against the Consolidated Screening List, which combines the restricted-party lists maintained by the Departments of Commerce, State, and Treasury. A match on the BIS Entity List or an OFAC sanctions list means the deal stops until you resolve it, license it, or walk away.

Screen at order time and again before shipment. Parties get added to these lists continuously, and a clean screen from three weeks ago is not a defense.

Step 4: File Electronic Export Information (EEI)

For most commercial shipments, you (or your agent) must file EEI through the Automated Export System (AES) before the goods leave the country. Filing is generally required when the value of the commodity under a single Schedule B number exceeds $2,500, or whenever an export license is required regardless of value. Shipments to Canada are usually exempt unless a license applies. The filer receives an Internal Transaction Number (ITN) that proves the EEI was accepted — that number travels with the shipping documents.

Decide up front who files. In a routed export transaction the foreign buyer’s U.S. agent may handle it; in a standard transaction the U.S. Principal Party in Interest (usually the seller) is responsible. Write that allocation into the contract so nobody assumes the other side filed.

Build the Compliance Steps Into the Contract

The export contract is where the legal steps become enforceable obligations rather than good intentions. A sound raw-materials sales contract names the commodity and grade, sets the quantity and quality specifications, fixes the Incoterms rule (which determines who bears cost and risk at each leg), states the payment mechanism — a confirmed letter of credit is common for new cross-border buyers — and allocates who files EEI and obtains any required licenses. It should also include a clause requiring both parties to comply with U.S. export-control and sanctions laws, so a counterparty’s later misconduct does not become your breach.

Frequently Asked Questions

Do I need an export license to ship raw materials?

Usually not — most raw materials are EAR99 and need no license to most destinations. But you must still check three things: whether the commodity is under short supply controls (like crude oil or western red cedar, which need a license everywhere), whether the destination is embargoed or sanctioned, and whether any party is on a restricted-party list.

What is the difference between a Schedule B number and an ECCN?

The Schedule B number classifies your commodity for export filing and statistics. The ECCN tells you whether the item is controlled under the Export Administration Regulations. You may need both: the Schedule B for your EEI filing and the ECCN (or an EAR99 determination) to decide whether a license is required.

When do I have to file EEI?

File EEI in AES when the value under a single Schedule B number exceeds $2,500, or whenever an export license is required regardless of value. Most shipments to Canada are exempt unless a license applies.

Who is responsible for export compliance — me or my freight forwarder?

The exporter of record carries the legal responsibility, even when a forwarder files on your behalf. A forwarder is your agent, not your insurer. Define the responsibilities in writing and keep records of your classifications, screenings, and filings.

Raw-materials exports turn on getting the classification, licensing, screening, and filing right before anything moves. Reidel Law Firm prepares flat-fee Import/Export Compliance Memos that map these steps to your specific commodity and destinations, with direct access to the attorney handling your matter — get a flat-fee import/export compliance memo before your next shipment.