Export Controls: Product Determination

Product determination in relation to export controlled goods refers to the process of identifying and classifying a product to determine whether it is subject to export controls and regulations. This determination is conducted against the control lists of the jurisdiction(s) which the goods will be traded e.g. for the UK it would be the UK Strategic Export Control Lists. It should also be noted that due to the extraterritorial nature of US Export Control Regulations, it may be that goods and services fall under both your national and US Jurisdictions. Therefore, they would need to be determined and codified against both national and US regulations. It is essential to have a clear understanding of export controls to ensure compliance with regulations and avoid any legal or financial penalties.

Original Equipment Manufacturers (OEMs) can classify their products by referring to and using export control classification list. This ensures that their products are codified with applicable export control regulations and are managed and exported in an appropriate manner. Self-codification can be a complex process, as it involves understanding the relevant regulations and determining the appropriate classification for each product. However, it is an important step in ensuring that products are exported legally.

If you are buying a product for incorporation into a higher assembly or to ‘pass through’ your company, then you may need to seek advice and a declaration from the supplier of the OEM. It is advisable for you to receive this declaration formally and signed off by the relevant authorised person issuing the determination. Like wise if you are the OEM you may be requested to provide a determination and codification statement for your products if your customers are exporting.

It is important to record the export determination against your products for future reference and as evidence of determination taking place. It is best practice for products to be determined and codified at the design phase of manufacture. Design engineers can either be specifically trained in determination and codification or work with export specialists to conduct this activity. The process of product determination and codification should be formally written into your Business Management System as and where appropriate.

At Ceterus Consultants we deliver consultancy in Business Management, Quality Assurance and Export Controls. Our services and rates are tailored to customers requirements.