2.11 Import/Export Compliance

Cross-border movement of electronics is subject to strict regulatory oversight. Incorrect classification leads to customs seizures and fines. This chapter defines the requirements for HS Codes and Dual-Use screening.

2.1111.1 Import/ExportHarmonized ComplianceSystem (HS) Codes

• HS Codes:Requirement: CorrectlyEvery classifyingpart componentsnumber in the Item Master must have an assigned HS Code (e.g., 8542.31 for customs to avoid fines and delays.processors).
• Validation: Codes must be reviewed annually against tariff updates.

2.11.2 Dual-Use Goods:Goods (Civilian/Military)

• Screening: ScreeningComponents forcapable military/civilianof usemilitary restrictions.application (e.g., high-grade FPGAs, encryption chips) require End-User Statements (EUS).
• Restriction: Shipping controlled items to embargoed nations is a criminal offense. Compliance checks are mandatory before shipment.

Final Checklist

Compliance Domain	Mandate	Risk
Classification	HS Code on all Commercial Invoices	Customs Delay / Fines
Valuation	Declare true transaction value	Tax Evasion Penalties
Export Control	Screen against Dual-Use lists	Criminal Liability