Glossary

BAFA is the abbreviation for the Federal Office for Economic Affairs and Export Control in the Federal Republic of Germany. BAFA is a superior federal authority subordinated to the Federal Ministry for Economic Affairs and Energy. The Federal Office of Economics and Export Control also performs tasks for other federal ministries and is based in Eschborn near Frankfurt am Main, Germany.

The broad range of tasks of the BAFA span across the sectors foreign trade, promotion of economic development and of SMEs, energy, and auditor’s oversight. In the relevant context here, BAFA performs important foreign trade tasks in the area of export controls. One of the focal points is checking whether the exports of goods are subject to license requirements and deciding on licensing applications. 

The Federal Office of Economics and Export Control also monitors and implements embargoes and coordinates supra-regional export control bodies, such as, for example, the Chemical Weapons Convention or the Nuclear Suppliers Group. On behalf of the EU, the BAFA is also helping third countries to develop their own export control systems. 

You can find more information and tasks of the BAFA across all areas directly on the website of the Federal Office for Economic Affairs and Export Control. 

Observing foreign trade prohibitions and license requirements efficiently with software from AEB for export controls

A Border Control Post (BCP) is a place where animals, plants, and their products coming into the UK from the EU and other third countries via seaports or airports are checked. These inspections are carried out to ensure that regulations are complied with and animal, plant, and public health are protected. It is the importer’s/exporter’s responsibility to make sure that their goods come into the country via the appropriate BCP as they are equipped and approved to process different commodities. Typically, the relevant BCP must be notified of the goods’ arrival by the importer. Until the end of June 2021, physical checks on all high-risk live animals and plants will be done at the point of destination or other approved premises. As from July 2021, checks will take place at UK BCPs. To find the BCP relevant for your commodities, refer here.

In the context of US export controls, BIS is the abbreviation for the US government body Bureau of Industry and Security. The BIS is part of the US Department of Commerce. The Bureau of Industry and Security administers the Export Administration Regulations (EAR) – the US export control law for the export, reexport, and transit (in country) of US products (commodities, software, and technologies) that are subject to the jurisdiction of the US EAR.

It is the BIS’ mission to ensure an effective export control and treaty compliance system and promote continued US strategic technology leadership. In addition, the Bureau of Industry and Security is also tasked with enforcing anti-boycott laws and coordinating with US agencies and other countries on matters around export controls, non-proliferation of weapons of mass destruction, and strategic trade. 

Outside of the Bureau of Industry and Security, other US government agencies regulate more specialized exports such as defense articles and services, which are subject to the authority of the US Department of State’s Directorate of Defense Trade Controls. You can find a list of other agencies involved in US export controls on the BIS website or in Supplement No. 3 to Part 730 of the EAR. 

EAR99, CCL, CCC, ECCN: Expert tips and checklists for export controls under US EAR

Covering all jurisdictions efficiently with Export Controls software from AEB

Customs Declaration Service (CDS) is the UK government’s new electronic system for handling customs declaration processes. CDS is replacing the Customs Handling of Import and Export Freight (CHIEF) system, which is closing down on March 31, 2023. 

HMRC is implementing the system transition from CHIEF to CDS in several stages – with final deadlines for import declarations in September 2022 and for export declarations in March 2023. 

You can learn more about it in this article or on the UK government website. 

The seller delivers the goods on board the vessel. The risk of loss of or damage to the goods passes when the goods are on board the vessel. The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination.

In the context of EU export controls, CFSP stands for the EU’s Common Foreign and Security Policy. In line with the CFSP, the EU applies restrictive measures (sanctions) to implement UN Security Council Resolutions or sanction decision of the EU, or to further the objectives of the CFSP. These objectives include promoting international peace and security, preventing conflicts, defending the principles of international law, and supporting democracy, the rule of law, and human rights. 

The term “CFSP list” is commonly used to refer to the EU’s Consolidated Financial Sanctions Party List. It is the consolidated list of persons, groups, and entities subject to EU financial sanctions. The CFSP list is managed by the EU’s Directorate-General for Financial Stability, Financial Services and Capital Markets Union (DG FISMA) and regularly updated. This consolidated list of persons, groups, and entities subject to EU financial sanctions (CFSP list) reflects the officially adopted texts of financial sanctions published in the Official Journal of the EU. 

CFSP list and more: Secure sanctions list screening with the AEB software Compliance Screening

Which sanctions lists are available in the AEB software Compliance Screening?

Customs Handling of Import and Export Freight (CHIEF) is the UK government’s old electronic system to handle customs declaration processes. It has already been replaced by CDS for import declarations and the transition for export declarations is underway. CHIEF supports the National Export System (NES) by providing an electronic gateway for making customs declarations. Companies that wish to import or export to/from the UK should now register for CDS and contact HMRC accordingly. 

The seller delivers the goods on board the vessel. The risk of loss of or damage to the goods passes when the goods are on board the vessel. The seller must also obtain minimum insurance cover against the buyer’s risk of loss of or damage to the goods during the carriage.

CIP means that the seller delivers the goods – and transfers the risk – to the buyer by handing them over to the carrier or another person nominated by the seller at an agreed place. The seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination. It is similar to CPT with the exception that the seller is required to obtain minimum insurance for the goods while in transit. 

CIP requires the seller to declare for export. However, the seller has no obligation to clear the goods for import or transit.

In the context of US export controls, CCL is the abbreviation for the Commerce Control List. The CCL is maintained by the US Department of Commerce’s Bureau of Industry and Security (BIS). The Commerce Control List is contained in Supplement No. 1 to Part 774 of the US Export Administration Regulations (EAR). 

The Commerce Control List includes items (commodities, software, and technologies) that are subject to the EAR.

Items that are listed on the CCL are organized according to alpha-numeric designations called Export Control Classification Numbers (ECCNs). Items subject to the EAR that are not listed on the CCL are designated as EAR99. 

“Subject to the EAR” is a technical term that is defined in §734.2 of the EAR. It describes those items and activities over which BIS exercises regulatory jurisdiction under the EAR.

EAR99, CCL, CCC, ECCN: Expert tips and checklists for export controls under US EAR

Shipping controlled items efficiently with the Export Controls software from AEB

In the context of US export controls, the abbreviation CCC stands for Commerce Country Chart. The CCC is maintained by the US Department of Commerce’s Bureau of Industry and Security (BIS). The Commerce Country Chart is contained in Supplement No. 1 to Part 738 of the US Export Administration Regulations (EAR). Please review Part 732 of the EAR for additional information on how to use the EAR, including the Commerce Country Chart. 

In combination with a specific ECCN from the Commerce Control List, which contains corresponding information in the "Reasons for Control" section, the Commerce Country Chart helps to decide whether a license is required for shipping an item with that ECCN to a specific destination country.

EAR99, CCL, CCC, ECCN: Expert tips and checklists for export controls under US EAR

Covering all jurisdictions and embargoes efficiently with Export Controls software from AEB

Commodity codes classify goods for import and export. Knowing the correct commodity code for goods is required for filling in declarations and other paperwork. Commodity codes also define the duty and VAT rates you’ll be charged for your goods. Beside that they tell you if you can apply for preferential duty rating, or if your products are subject to any restrictions. The Trade Tariff Tool can be used to find commodity codes. As from January 1, 2021, the UK Global Tariff will apply to imports to the UK.

Community System Providers (CSP’s) operate inventory management systems which are directly connected with hundreds of carriers, transit sheds, and freight forwarders. They record and track the movement of goods within ports and airports. To submit customs declarations in the UK, companies need a badge of the relevant CSP. The data they specify in their declarations is verified with the help of the relevant CSP system and then forwarded to HMRC's electronic customs system. AEB works with the CSP badges from Pentant and MCP. The badge required will depend upon the ports where your goods will be imported. AEB will be happy to coordinate the setup of your Pentant badge. For MCP, you will need to provide your own badge details.

There are certain goods whose export is subject to a system of export licensing requirements. They are called controlled goods and they include:

• military items
• dual-use items (items with both civil and military uses)
• firearms
• items that can be used for torture or capital punishment

There is a limited range of goods that require import licences as their import is controlled. Import licensing requirements can be in place against imports from specific countries or from any country. The full list of goods classified as controlled by the UK Government can be found in the ANNEX C of this document.

CPT means that the seller delivers the goods to the carrier or another person nominated by the seller at an agreed place. The seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination. 

CPT requires the seller to declare for export. However, the seller has no obligation to clear the goods for import or transit.

Customs brokers (or customs agents) are specialised in submitting export and import declarations and clearing goods through customs. They offer their services in dealing with customs to companies that do not want or cannot do this themselves. They can either act in the company’s name (direct representative) or for companies’ in their own name (indirect representative).

Customs clearance is the process of moving goods through customs. It will become mandatory for all goods entering or leaving the UK as from January 1, 2021 allowing the customs authorities to monitor the goods that are coming into (imports) or leaving the UK (exports). The payment of duties and correct documentation for the import/export are also part of the customs clearance process.

A customs declaration is an official document in which you specify details about the goods you export from the UK or import into the UK. As from January 1, 2021, you will also need to submit customs declarations for goods you export to (export declaration) or import from (import declaration) EU countries.

When importing goods into the UK after January 1, 2021, the importer will have to pay customs duties as laid out in the new UK Global Tariff. To find out the amount payable, the imported goods need to be classified correctly, their origin must be stated, and the customs value of the goods must be determined. If you are eligible and want to defer the payment of duties, you will need a duty deferment account.