BUYUSA.GOV -- U.S. Commercial Service

Downtown Los Angeles

Frequently Asked Questions

Planet Earth

1. I want to export my "U.S. made" product(s)... where do I start?
The best place to start is at your nearest U.S. Export Assistance Center. Otherwise, the U.S. Department of Commerce's Trade Information Center is your next stop for information about all federal export assistance programs, information on the nuts and bolts of exporting, export financing, and country and regional market information. Contact them to receive personal export assistance from a trade specialist Monday through Friday 8:30 a.m. until 5:30 p.m. eastern time. Call 1-800-USA-TRADE (872-8723).

2. How do I know if I need to get an export license from the Department of Commerce?
The Department of Commerce, Bureau of Industry and Security (BIS) is the primary licensing agency for dual use exports (commercial items which could have military applications). Other departments and agencies have regulatory jurisdiction over certain types of exports and reexports. For example, the State Department licenses the export defense articles and services

Of those exports and reexports subject to BIS' Export Administration Regulations (EAR), a relatively small percentage require the submission of a license application to the Department of Commerce. License requirements are dependent upon an item's technical characteristics, the destination, the end-use, and the end-user, and other activities of the end-user. You will need the following five facts to determine your obligations under the EAR: What is the item you intend to export or reexport; Where is it going; Who will receive it; What will they do with it; and, What other activities are they involved in? Export control guidance is available at: http://www.bis.doc.gov/Licensing/exportingbasics.htm.

The first step in determining your license requirements under the EAR is to classify your product by determining its Export Control Classification Number (ECCN) on the Commerce Control List (CCL).

3. When do I fill out a Shipper's Export Declaration?
When a shipment is over $2,500 or when an export license is required (regardless of value), a SED is necessary. This includes shipments by US post, as well as shipments to or through the Virgin Islands and Puerto Rico. This information is used by the Foreign Trade Division of the US Census Bureau to track US export statistics (import data is collected by US Customs). The only country that does not need a SED is Canada. If your product requires an export license, you are now required to submit your SED electronically through the Automated Export System (AES). It might be a good idea to start filing your SED electronically now, as it saves us and you money, and will be required for all shipments in the near future.

4. When is NAFTA certificate necessary?
A NAFTA certificate is never necessary, but if your product has a reduced tariff under NAFTA, it is in your interest to go through the NAFTA certification process. Since we have MFN trading status with both Mexico and Canada, your tariff rate might already be 0%, without having to go through NAFTA certification. If your products are used by other US manufacturers who export to Canada and Mexico, they may request that you certify your goods so that they can in turn get preferential tariff treatment under NAFTA.

5. What's the difference between a Schedule B and HTS number?
All import and export codes used by the U.S. are based on the worldwide Harmonized Tariff System (HTS). The HTS assigns 6-digit codes (known as the HS number) for general categories that are used worldwide. These 6-digit codes are broken down by Chapter (2 digits), Heading (4 digits) and Sub-heading (6 digits). Countries that use the HTS are then allowed to further define their commodities at a more detailed level, usually 8-10 digits, but still using the universal 6-digit number to start with. The United States uses this system as a foundation for determining both Schedule B numbers and the Harmonized Tariff Schedule of the United States (HTSUS), which are nearly identical. The Schedule B number (reported on your SED) is used by Department of Commerce's Foreign Trade Statistics office to generate export statistics. The HTSUS number is used by U.S. Customs in the import process.