Estimated reading time: 3 minutes

Fresh PCB Concepts: Understanding Your Export-controlled PCBs

There’s a lot of confusion in the industry about how to handle and manage export-controlled PCBs. Navigating this landscape can be daunting, but understanding the key regulations and restrictions is crucial for compliance and efficient production.

With U.S. factories reaching capacity in many areas, many people don’t realize they can export PCBs controlled by Export Administration Regulations (EAR), and in many cases, International Traffic in Arms Regulations (ITAR). They should be aware there is rigorous compliance in place and that the U.S. government sanctions these exports. Here's what you need to know:

Introduction to Export Controls
EAR and ITAR regulations primarily governed export controls. Each has rules that need to be understood and adhered to when dealing with PCBs.

Export Administration Regulations
EAR covers dual-use items—commercial and potential military applications. Under EAR, authorities control various goods based on their potential use in certain geographic regions. Some items can be freely exported to most countries, but they face restrictions in embargoed nations, such as Cuba, Russia, and North Korea.

To comply with EAR, it’s essential for the OEM to correctly classify their PCBs and communicate this classification to their suppliers. The classification process involves interpreting the five-digit alphanumeric Export Control Classification Number (ECCN) which specifies the control status of an item. The OEM determines this classification, and the suppliers are then provided with the ECCN. Once the ECCN is known, the manufacturer can determine where the item can exported.

International Traffic in Arms Regulations
ITAR primarily deals with items designed for military use, such as munitions and their supporting infrastructure. These are subject to more stringent controls than most EAR-restricted items and generally must remain within the United States unless proper legal channels and licensing are followed. However, there are provisions for exporting data for production at the bare board level, provided the appropriate licenses are obtained.

ITAR-controlled items require careful handling. Specific parts may be subject to additional distribution statements that require prior approval before export. Even if an item is ITAR-controlled, further steps may be necessary before exporting it overseas. This process ensures that critical military technologies do not fall into the wrong hands.

Distinguishing Between EAR and ITAR
Understanding the distinctions between EAR and ITAR is essential for compliance. While ITAR is more stringent, certain items under EAR can also be heavily restricted. For example, components critical to U.S. security, such as those related to aerospace propulsion systems, may fall under stricter EAR controls. It's a common misconception that all sensitive items fall under ITAR. Therefore, it’s vital to understand the specific regulations applicable to your PCBs.

Ensuring Compliance and Leveraging Expertise
Compliance with export controls requires detailed knowledge and meticulous attention to regulations. Working with a PCB fabricator experienced in export compliance can be invaluable in ensuring that your PCBs are classified correctly and that all necessary licenses are obtained. This partnership helps avoid legal pitfalls and provides access to higher-capability fabricators, exotic materials, and faster turnaround times.

Leveraging the expertise of a knowledgeable fabricator can also help address capacity issues. Many U.S. fabrication shops are at full capacity, so being able to produce PCBs overseas in compliance with all regulations can provide much-needed flexibility and efficiency in production timelines.

At NCAB Group, we use an internal process to export ITAR-controlled PCBs to several manufacturing partners. This activity is empowered by licensing issued by the U.S. Department of State Directorate of Defense Trade Controls. Our robust export control measures include multiple export licenses, rigorous data handling protocols, and ongoing efforts to obtain additional authorizations. Doing so ensures we meet all regulatory requirements while delivering superior products to our customers.

Meeting the Demands
Export controls on PCBs are complex but manageable by understanding the nuances of EAR and ITAR, correctly classifying your items, and working with experienced suppliers to streamline the process and ensure compliance. Businesses involved in the production and distribution of these essential components need to stay informed and be proactive when handling export-controlled PCBs.

Jeffrey Beauchamp is USA director of technology and engineering at NCAB Group.