Export Administration Regulations (EAR)

Export Administration Regulations (EAR) govern the export and re-export of dual-use items, goods, technology, and software that have both civilian and military applications. Managed by the U.S. Department of Commerce’s Bureau of Industry and Security (BIS), EAR ensures that sensitive technologies do not fall into the hands of unauthorized foreign entities, protecting national security and economic interests.

What Is EAR Data?

EAR-controlled data can include product designs, technical specifications, source code, research data, and software that appears on the Commerce Control List (CCL). Even seemingly non-sensitive information may be restricted if it can be repurposed for military, surveillance, or advanced industrial use.

Who Does EAR Apply To?

EAR applies to a wide range of organizations, not just defense contractors. Any business that develops, stores, shares, or exports controlled technology may fall under its scope.

For defense contractors, EAR compliance is, however, critical when working with advanced technologies, encryption software, aerospace components, or cybersecurity tools that could be misused if exported improperly. Companies must obtain the necessary export licenses, classify their products under the Commerce Control List (CCL), and implement robust access controls to prevent unauthorized data sharing.

EAR vs ITAR: What’s the Difference?

While EAR and ITAR are both U.S. export control regulations, they apply to different types of data and industries.

• EAR covers dual-use items with both civilian and military applications
• ITAR applies strictly to defense articles and services listed on the U.S. Munitions List
• EAR is administered by the Department of Commerce, while ITAR is managed by the Department of State
• Many organizations fall under both, depending on the type of data they handle

What Does EAR Mean for Defense Contractors?

For defense contractors and suppliers, EAR compliance often intersects with cybersecurity, access control, and data governance. Controlled technical data must be protected from unauthorized access, including access by foreign nationals, subcontractors, or cloud service providers.

This means organizations must understand not only what data is controlled, but who can access it, where it is stored, and how it is shared.

Failure to comply with EAR can result in severe penalties, including substantial fines, loss of export privileges, and reputational damage. To mitigate risks, defense contractors must establish comprehensive export compliance programs, conduct regular audits, and ensure employees are trained on export control laws to avoid inadvertent violations.

Common EAR Compliance Challenges

Organizations commonly struggle with:

• Identifying which data falls under EAR
• Tracking who has access to controlled technical information
• Managing cloud storage and file sharing securely
• Preventing accidental “deemed exports” through internal access
• Maintaining compliance across suppliers and partners

These challenges are especially pronounced in distributed or hybrid work environments.

FAQs: Export Administration Regulations (EAR)