The United States restricts the export of a number of items that it deems potentially threatening to national security or its vital economic interests, including weapons, technology, technical data, and even technical assistance and training. Most restrictions apply to specific items that have actual or potential military applications or that the U.S. government believes could harm the economic interests of the country.

In addition to restricting the export of specific items or know-how, the rules also restrict exports to specific countries, organizations, and even individuals. U.S. exporters must first apply for a license before exporting products, technology, or know-how subject to restrictions, or to a restricted country, organization, or individual.

Which Items Are Subject to U.S. Export Restrictions?

U.S. export restrictions are complex and administered by numerous agencies. In addition, there are lengthy rules that vary depending on what the specific export item is, where it’s going, and for what purpose it will be used.

What’s Being Exported?

There is a long list of specific items that are subject to export controls and require a license. The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) classifies items that need an export license using Export Control Classification Numbers (ECCNs), which are listed on the Commerce Control List (CCL).

If the item is subject to export controls but is not listed on the CCL, it is classified as an EAR99 (Export Administration Regulation No. 99) export. EAR99 items do not require an export license. However, even ordinary consumer goods need an export license if they are going to an embargoed country or to certain organizations or individuals, or if they will be used for a prohibited purpose (see below).

Where Is It Being Exported?

In addition to the long list of items subject to export controls, there are many country-specific requirements, so exporters have to review both the ECCN and the Commerce Department’s Country Chart to ensure that the item can be exported and that it can be exported to the specific country, organization, or individual.

Who Receives the Export?

U.S. exporters are not allowed to ship anything to organizations on the U.S. government’s Consolidated Screening List.

What’s the End Use?

The United States also restricts exporting items that will be used for any purpose prohibited under U.S. law. These items may require a license or may not be allowed to be exported at all. Prohibited items are listed in the Export Administration Regulations.

For example, a piece of technology that normally has benign uses may be banned from export if the end use would violate U.S. law, such as conducting surveillance in a manner that would be illegal in the U.S. or would create the potential for human rights violations.

The U.S. also extends these rules to third parties using U.S. technology anywhere in the world. A non-U.S. company operating outside the U.S. would also need to apply for permission to use the technology in a third country and, if found to be violating U.S. export controls, could get cut off from access to U.S. technology.

U.S. Entities That Enforce Export Restrictions

As outlined, there is a wide range of laws that restrict exports of specific items from the U.S., and those laws are administrated by many federal agencies, depending on what is being exported and to where. These are the key federal agencies that manage export controls:

• The U.S. Commerce Department’s Bureau of Industry and Security (BIS) administers Export Administration Regulations (EAR). EAR applies to exports of commercial and dual-use goods, computer software, hardware, and certain encryption algorithms. The BIS also controls the export of weapons, including parts and components that a foreign military could use.
• The U.S. Export Administration (USEA) is part of the BIS and reviews license applications for exports, reexports, transfers, and “deemed exports” (technology transfers to foreign nationals in the U.S.) that are subject to EAR.
• The U.S. State Department’s Directorate of Defense Trade Controls (DDTC) administers International Traffic in Arms Regulations (ITAR). ITAR controls the export of weapons, military services, and even data that can be used for military purposes.
• The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) restricts the export of certain goods and services to specific countries. In particular, OFAC administers economic and trade sanctions. These sanctions may be far-reaching and restrict nearly all transactions with and exports to specific countries, organizations, or individuals.
• The U.S. Census Bureau’s Foreign Trade Division (FTD) manages rules on how information on exports is reported to the U.S. government. In particular, the division administers the Electronic Export Information (EEI) documents that most exporters have to submit to the U.S. government. The Census Bureau shares this export data with the BIS, the OFAC, the DDTC, U.S. Customs and Border Protection, and other regulatory and law enforcement agencies to ensure that exports comply with the wide array of U.S. export controls administered by these agencies.

Key U.S. Export Control Regulations

The federal agencies above administer a complex set of export controls. These are the key rules that these agencies administer that affect exports, technology transfer, and services provided to non-U.S. entities.

• International Traffic in Arms Regulations (ITAR) regulate the export (and even reexport) of a wide range of military items, including military services, technical data, and training for any foreign destination or foreign person (even if the person is in the U.S.). ITAR also limits transferring information on the design, development, assembly, production, operation, repair, testing, maintenance, or modification of a military product. This can include drawings, assembly instructions, and user manuals. ITAR further restricts military services, including any assistance such as supplying information on military equipment, training to use it, or even how to maintain it.
• Export Administration Regulations (EAR) regulate most items not subject to ITAR control. Unlike ITAR, however, EAR does not control services. Its controls apply to exports and reexports of U.S. technology and technical data, which means either data or technical assistance, and is quite broadly defined to include “specific information necessary for the ‘development’, ‘production’, or ‘use’ of a product.” This can include designs, models, formulas, tables, manuals, and even instructions written or recorded on any media. Any technology related to the development, production, or use of items that need an export license is subject to EAR.
• The Commerce Control List (CCL) lists the specific items controlled by EAR. If an item is not listed on the CCL, then it is designated as EAR99, which does not require an export license and mainly includes low-tech consumer goods.

Recent Developments

In the fall of 2022, the United States imposed the most sweeping export controls yet on China, targeting its access to advanced semiconductor technologies and aiming to limit its super-computing and artificial intelligence (AI) capabilities. The U.S. government also announced it is reconsiderating what “national security” is defined as in the context of export controls, leading to discussions with allies about expanding controls beyond traditional lists.

However, these controls could be ineffective unless other major semiconductor-producing nations also adopt them, which they have been reluctant to do so far. Some technology firms outside the U.S. could fill the void by continuing to do business with China, in particular those in Europe, South Korea, and Japan. But in early 2023, after some initial pushback, Japanese and Dutch authorities announced that they would join the U.S. in limiting what chip-making technologies could be exported to China, particularly from the Netherlands’ ASML (ASML) and Japan’s Nikon (NINOY), both companies having developed such technologies.

For the rest of 2023, the U.S. was poised to continue to use export controls to protect its national security, with a focus on semiconductors, advanced and quantum computing, artificial intelligence, biotechnology, clean energy, and human rights protections.

The Bottom Line

The U.S. government imposes numerous restrictions on the export of a wide range of items that it deems possibly threatening to national security or key U.S. economic interests. These mainly include items such as weapons and advanced technology, but can also include information such as technical data and even the providing of technical assistance or training to non-U.S. people.

Most U.S. export restrictions apply to specific items with actual or potential military use, but there are also many that the U.S. government believes could harm the country’s economic interests.