[Code of Federal Regulations]
[Title 15, Volume 2]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 15CFR758.3]

[Page 445-446]
 
                  TITLE 15--COMMERCE AND FOREIGN TRADE
 
  CHAPTER VII--BUREAU OF INDUSTRY AND SECURITY, DEPARTMENT OF COMMERCE
 
PART 758_EXPORT CLEARANCE REQUIREMENTS--Table of Contents
 
Sec.  758.3  Responsibilities of parties to the transaction.

    All parties that participate in transactions subject to the EAR must 
comply with the EAR. Parties are free to structure transactions as they 
wish, and to delegate functions and tasks as they deem necessary, as 
long as the transaction complies with the EAR. However, acting through a 
forwarding or other agent, or delegating or redelegating authority, does 
not in and of itself relieve anyone of responsibility for compliance 
with the EAR.
    (a) Export transactions. The U.S. principal party in interest is the 
exporter, except in certain routed transactions. The exporter must 
determine licensing authority (License, License Exception, or NLR), and 
obtain the appropriate license or other authorization. The exporter may 
hire forwarding or other agents to perform various tasks, but

[[Page 446]]

doing so does not necessarily relieve the exporter of compliance 
responsibilities.
    (b) Routed export transactions. All provisions of the EAR, including 
the end-use and end-user controls found in part 744 of the EAR, and the 
General Prohibitions found in part 736 of the EAR, apply to routed 
export transactions. The U.S. principal party in interest is the 
exporter and must determine licensing authority (License, License 
Exception, or NLR), and obtain the appropriate license or other 
authorization, unless the U.S. principal party in interest obtains from 
the foreign principal party in interest a writing wherein the foreign 
principal party in interest expressly assumes responsibility for 
determining licensing requirements and obtaining license authority, 
making the U.S. agent of the foreign principal party in interest the 
exporter for EAR purposes. One writing may cover multiple transactions 
between the same principals. See Sec.  748.4(a)(3) of the EAR.

    Note to paragraph (b):
    For statistical purposes, the Foreign Trade Statistics Regulations 
(15 CFR part 30) have a different definition of ``exporter'' from the 
Export Administration Regulations. Under the FTSR the ``exporter'' will 
always be the U.S. principal party in interest. For purposes of 
licensing responsibility under the EAR, the U.S. agent of the foreign 
principal party in interest may be the ``exporter'' in a routed 
transaction.

    (c) Information sharing requirements. In routed export transactions 
where the foreign principal party in interest assumes responsibility for 
determining and obtaining licensing authority, the U.S. principal party 
in interest must, upon request, provide the foreign principal party in 
interest and its forwarding or other agent with the correct Export 
Control Classification Number (ECCN), or with sufficient technical 
information to determine classification. In addition, the U.S. principal 
party in interest must provide the foreign principal party in interest 
or the foreign principal's agent any information that it knows will 
affect the determination of license authority, see Sec.  758.1(g) of the 
EAR.
    (d) Power of attorney or other written authorization. In routed 
export transactions, a forwarding or other agent that represents the 
foreign principal party in interest, or who applies for a license on 
behalf of the foreign principal party in interest, must obtain a power 
of attorney or other written authorization from the foreign principal 
party in interest to act on its behalf. See Sec.  748.4(b)(2) and Sec.  
758.1(h) of the EAR.

[65 FR 42572, July 10, 2000]