Did you ever stop and paid attention to something in your surroundings, thinking it was something new or unique, only to find out it’s something you see every day. Once I see it, it feels like everything is there.
Exporting is a particular example of this. You will see the term n.e.s everywhere. You’ll start to see it everywhere.
Anthony Cambas, a former U.S. Customs official and Manager of International Trade at the University of Mississippi, spoke to us about the importance of n.e.s. It’s not something that exporters should ignore, but rather they need to pay close attention to.
What is N.E.S.?
N.e.s is “not otherwise specified”. It can be used for many purposes and not just refer to export compliance. The definition does not convey the technical aspects and nuances of the abbreviation when it is used for export compliance purposes. Cambas states that exporters need to be clear about the context they are using it and for what purpose.
N.E.S. is an important component of our society
Cambas states that n.e.s. Cambas says that export compliance is very important because it plays an essential role in determining the Export Control Number (ECCN). It is often overlooked by exporters, who don’t know its importance and have never had to deal with Customs and Border Protection or any other enforcement agency–until it happens.
If n.e.s. is not used properly, exporters may incorrectly classify their products using the wrong ECCN number or determine that their products are an EAR99. Exporters could incorrectly classify their products with the wrong ECCN number or determine that their products are EAR99 or require a license to export. An incorrect product classification could lead to a piece of incorrect electronic export information being filed through AESDirect. This can result in a misidentification of which agency has jurisdiction, an inability to determine if an export licence is required, misused license exceptions, etc.
Exporters may experience delays in clearing exports from C.B.P. or other partner agencies and could be fined and penalized. Export activities are less sustainable and more profitable.
When is N.E.S. Used?
This term is used when the item is included in different ECCN numbers on Commodity Control List. This could indicate that other ECCN numbers may also apply to a particular controlled item, technology, or activity. To my knowledge, it is not used to cover an overarching concept.
Important note: Exporters will encounter “not elsewhere specified/included” when looking at Harmonized System (H.S.), classification using the Schedule B or Harmonized Tariff Schedule of United States. This concept is similar but entirely different and is governed under the H.S. classification General Rules of Interpretation.
What is N.E.S.? What is the CCL?
It can be found in the written parameters and definitions of various ECCN numbers, part of the U.S. CCL. Export Administration Regulations (E.A.R.).
What exporters should know about N.E.S.?
Exporters need to be aware that the term n.e.s. It cannot be ignored and must be considered to determine the correct ECCN number. The E.A.R. outlines the steps to determine ECCN numbers. This includes the product or service itself and its components and parts. It is also important to consider how it is being used.
Find out more about N.E.S.?
You can find a lot of information online on n.e.s. This includes explanations by practitioners and experts, the code of federal regulations and official guidance from government agencies. Understanding and understanding the above requires experience, knowledge and training. BIS officials, lawyers, consultants, customs brokers, freight forwarders and other experts are valuable resources.