This is the first of two articles I would like to share with you about how to apply for a Replacement EAR/ITAR Licence.
One advice: Do not be afraid!
EAR licences are (as you probably know) concern of the Bureau of Industry and Security (http://www.bis.doc.gov)
You must know, this article is only for apply for a Replacement licence. Foreign Companies can not apply for an Export Licence. A Foreign Country can do other stuffs. For instead, according to the BIS:
“As a foreign entity you can not apply for an export license, that must be done by someone in the United States. However, you can apply for a Company PIN number under SNAP-R and you can submit a re-export license application.
You also can do a request in order to classify a component (to know which Ear Classification it has)
Imaging you are a supplier, you’ve bought diodes from USA, and they are EAR. You are in Germany, the manufacturer (USA) applies for the licence. BIS approves it and you receive the components (always ask for a copy of the licence even if the manufacturer doesn’t have the obligation). Finally, you sell and send them to the Prime.
The Prime one day, after they’ve received the component, tells you that they have changed something in the flow-chart…
Some changes to an issued export license are considered “non-material changes” that don’t require the submission of a Replacement license (Refer to Part 750.7(c) of the Export Administration Regulations)
For example: a change in consignee’s address, as long as the new address is located in the same country is considered a non-material change. However, a change in the actual consignee would require submission of a Replacement license.
The license holder would need to apply for the Replacement license.
Note: recent changes in SNAP-R and also reviewed Part 748 of the EAR.
Only the exporter can request a replacement license. Note: a replacement license application will be reviewed the same as a regular license application. It will still require referrals to the other agencies and the processing time will be about the same.
Before, it was the client who has the responsibility to apply for a modified licence. But now it’s the exporter. But, who, the manufacturer or the supplier?
An advice, if the manufacturer agrees to do it without cost or for a very low cost, let him do it. But if he’s asking a lot of money do it by yourself!
Here the theory according to the BIS:
“The reason for the requested license change and the current license number should be entered into the Additional Information block on the application or in a cover letter”
And now, I will tell you the practice:
Important: you should review the de minimis rules under Part 743.4 of the EAR and determine the de minimis content of all the subassemblies prior to submitting the re-export application. Referencing the approved license number on your application may help expedite.
In particular: Part 748.4 provides instructions on submitting a re-export license; Part 748.5 explains the different Parties to the Transaction the can be on an application (note: only include the parties that apply to intended transaction); and Supplement No. 1 to Part 748 gives you block-by-block guidance as to the type of information we are looking for on the license application)
You have to apply for a Company IDE Number (CIN) under SNAP-R and you can submit a re-export license application in the web site. IT’S THE ONLY WAY.
Go here -> https://snapr.bis.doc.gov/snapr
Click on New SNAP-R User
Fill the form:
You will receive a confirmation link in your submitted e-mail. You have to click on it and in less than a week, you should have your CIN number.
For any questions, contact the BIS. You can find them here:
I recommend you to read all the Law. So you can know which is a First Party, a Third Party. Duties, regulations, ecc. Please, read it (specially the references I wrote you).
E- Regulation: Electronic Code of Federal Regulation – Title 15 (Commerce and Foreign Trade)
When you receive your CIN and chose your password. You can access SNAP-R here:
The “?” symbol is a great help. Click on it and it will help you step by step. It’s the manual.
Use the manual and the common sense. I could write you a guide step by step, but it will be useless, because the manual is utterly good, take it easy, read well and baby steps. I promise you, it’s not complicated to fill. And if you have some doubt you can contact directly to the BIS, SNAP-R section.
Use the Licence you want to replace as a guide. Just change what you have to change and use the rest of your previous licence.
Anyway, a couple of stuff you may know:
– You will need Old Documentation (End User Undertaking, DSP-5, flow chart, original PO, data sheet, the licence you want to modify) and New Documentation (new EUS, new DSP-5) and it always help a letter explaining motivation of the replacement. BIS-711 document is a kind of End User Undertaking. Given the nature of the replacement, I’ve always used the EUS as BIS-711
– First Party is referring to the person who fills the form according to the Company which is the one asking for the licence. SO if your CEO is the one register, he is First Party. If you are a consultant doing this for a Company, you are a Third Party; and both, you and the Company need CIN numbers.
Use the STELA (once you get an acknowledgement, you will received a provisional reference, “DXXXXXX” or “ZYYYYYY”.
– Acknowledgement in a couple of days, you will receive a message like this:
– Approval conditions: in couple of weeks,
You will receive a message asking you to accept (if the conditions are acceptable for you) the conditions.
– Final approval (or denied) in another couple days.
The day after or in a couple of days, you will receive the approval licence! Now without the Z reference. You will have now a Dxxxxx reference!
From the beginning to the end, it should take 2 to 4 weeks. In this particular case, it takes me 14 days, two weeks.
The most complicated part is to obtain the user documentation, like the EUS, or the DSP-5, ecc. We will talk about it in further articles.
For now, it’s all! Good luck! You can find this article in Pdf format in the right side of the blog.