Commodity Jurisdiction

Commodity Jurisdiction is a process by which the United States Department of State determines whether a particular item requires an export or import license. The process involves determining whether the item is a defense article or service, and if so, it is subject to the International Traffic in Arms Regulations (ITAR). If the item is not a defense article or service, then the Department of Commerce, through the Export Administration Regulations (EAR), will make the determination.

The determination of commodity jurisdiction is important for several reasons:

Commodity jurisdiction ensures that companies are in compliance with the applicable export control regulations. By correctly identifying whether an item is subject to ITAR or EAR, companies can properly apply for the appropriate licenses and comply with the necessary regulations.
Failure to obtain the appropriate licenses for items that are subject to ITAR or EAR can result in significant penalties. Commodity jurisdiction helps companies avoid these penalties by ensuring that they comply with the applicable regulations.
National Security

Commodity jurisdiction is important for national security purposes. The US government controls the export of certain items, technologies, and services that could be used to harm national security interests if they fall into the wrong hands. By correctly identifying items that are subject to ITAR and EAR, the US government can control their export and ensure that they are not used for nefarious purposes.

Companies that engage in the export of items, technologies, or services should seek expert guidance to ensure that they correctly identify whether their products fall under ITAR or EAR and Globaleyes is here to help.