What is the EAR?

by | Oct 1, 2025 | Compliance, EAR

A Summary of the Export Administration Regulations (EAR) Administered by the U.S. Department of Commerce

What is the EAR? What do I need to do to comply? What are the consequences of noncompliance? Where can I get help?
What is the EAR

What is the EAR?

The Export Administration Regulations (EAR) are U.S. government regulations that control the export, reexport, and transfer of commercial and dual-use items, software, and technology.

The EAR is administered by the U.S. Department of Commerce through the Bureau of Industry and Security (BIS) and is designed to protect U.S. national security, foreign policy interests, and economic competitiveness while still supporting legitimate international trade.

The International Traffic in Arms Regulations (ITAR) takes precedence over the EAR. If your product, software, or technology is not controlled under the International Traffic in Arms Regulations (ITAR), it is likely subject to the EAR.

Why the EAR Exists

The Export Administration Regulations (EAR) were first established in the 1940s and are the foundation of modern U.S. export controls.

Unlike ITAR, which is narrowly focused on defense articles and services, the EAR was designed to regulate commercial trade that could impact U.S. national security, foreign policy, regional stability, or economic interests.

The EAR exists to ensure that U.S.-origin items, software, and technology are not diverted to prohibited destinations, end users, or end uses—while still allowing legitimate international trade to proceed.

The Export Administration Regulations (EAR) are U.S. government regulations that control the export, reexport, and transfer of commercial and dual-use items, software, and technology.

Why the EAR Is Important

Although the EAR is generally less restrictive than the ITAR, it still imposes serious compliance obligations. These controls apply broadly across commercial trade, reflecting the fact that risk depends on the destination, end user, and end use—not just the nature of the item itself.

Violations of the EAR can result in civil and criminal penalties, denial of export privileges, and reputational damage. These risks apply not only to physical shipments, but also to the release of controlled software or technology, including system access, file sharing, cloud storage, and collaborative work with foreign persons.

Like the ITAR, EAR controls can apply inside the United States, making compliance relevant to engineering, IT, R&D, and operations—not just export or logistics teams.

Because multiple export control regimes exist, determining which regulations apply is a critical first step.

When the EAR Applies

Export classification under the EAR only begins after ITAR has been ruled out.

If an item, software, or technology is not listed on the United States Munitions List (USML) and is not otherwise controlled under ITAR (including certain “specially designed”* parts, components, technical data, or defense services), it then falls under the EAR.

This step-by-step approach is critical. Assuming an item is EAR-controlled without first confirming ITAR does not apply can result in following the wrong regulations and creating compliance gaps.

Learn more about the ITAR.

The International Traffic in Arms Regulations (ITAR) takes precedence over the EAR. If your product, software, or technology is not controlled under the International Traffic in Arms Regulations (ITAR), it is likely subject to the EAR.

The Structure of the EAR

The EAR is organized around the Commerce Control List (CCL), found in 15 CFR Part 774.

Items on the CCL are assigned an Export Control Classification Number (ECCN), which identifies:

  • The type of item, software, or technology
  • The specific reasons for control (such as national security or anti-terrorism)
  • Whether an export license is required based on destination, end user, and end use

Items that are subject to the EAR but not listed on the CCL are designated as EAR99. While many EAR99 items do not require a license, they are still subject to restrictions related to sanctioned countries, prohibited end uses, and restricted parties.

EAR and Compliance Programs

Companies subject to the EAR are expected by the U.S. government to maintain a written Export Compliance Program appropriate to their risk profile and export activities.

A documented compliance program provides employees with clear, step-by-step procedures for determining classifications, evaluating licensing requirements, screening transactions, controlling exports and technology releases, and maintaining required records. Written procedures help ensure consistency across departments and demonstrate due diligence and good-faith compliance if transactions are reviewed by regulators.

Key Takeaway

The EAR governs most commercial and dual-use exports from the United States—but only after ITAR has been carefully ruled out.

Understanding how the EAR works, how items are classified, and how export controls extend beyond shipments is essential for managing risk and maintaining compliant international operations.

*“Specially Designed” is a defined concept under both ITAR and the EAR, with different criteria and exclusions in each regulation. As a result, parts, components, accessories, or attachments that are developed for use in a controlled item may themselves become subject to export controls under a “Specially Designed” analysis, even if they are not separately enumerated. The regulatory definitions and exclusions are set out in ITAR §120.41 and EAR §772.

S Massie Consulting supports companies with ITAR and EAR compliance through written compliance programs, internal procedures, and tailored employee training—helping organizations apply the rules consistently so you can say "yes" with confidence.

Contact us to schedule a consultation or compliance review.

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About Sarah Massie

President
S Massie Consulting LLC

Sarah Massie is a globally recognized export compliance expert, trusted consultant, and national speaker with over 20 years of international trade experience.

 

About S Massie Consulting

S Massie Consulting specializes in U.S. export compliance, helping businesses mitigate risks and expand globally. We empower you with the knowledge, skills, and strategies necessary to jumpstart your export compliance program so your company can thrive in the global marketplace.

We provide expert guidance and peace of mind through accurate export classification, customized EAR/ITAR compliance programs, and employee compliance training to simplify regulations and protect companies from costly fines, penalties, or even jail time.

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Praise from Susan Calvin

Operations Manager
AeroLEDs

Sarah Massie has been a pleasure to work with both professionally and personally. AeroLEDs began working with Sarah in 2016 when she led the State of Idaho’s efforts to help our company and others expand their sales internationally through attending international trade shows. She is not only knowledgeable about Export Compliance laws, but she made an extra effort to research questions I had when she did not immediately have the answer.

… [I] strongly recommend Sarah Massie for all your export compliance requirements.”

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