Explaining Export Rules - ITAR vs EAR

In this episode of Sourced by Cofactr, Ed demystifies one of the most misunderstood areas of electronics manufacturing and global trade: the difference between ITAR and the Export Administration Regulations (EAR). What often sounds like an intimidating legal issue is, in reality, a set of practical rules that can affect everyday engineering, procurement, and supplier collaboration. Through relatable analogies and real-world examples, Ed explains why export compliance extends far beyond shipping products across borders, revealing how something as simple as sharing a CAD file, granting cloud access, or inviting the wrong participant to a design review can constitute an export under U.S. law. From there, the episode explores how organizations can navigate export controls without becoming legal experts. Ed breaks down the distinctions between ITAR, EAR, ECCNs, and EAR99 classifications while explaining concepts like deemed exports, sanctioned parties, and the hidden compliance risks that emerge during quoting, engineering collaboration, and cloud-based product development. Along the way, he demonstrates why export compliance is fundamentally about controlling technical knowledge—not just physical products—and why modern manufacturers must build compliance into their daily workflows as engineering teams, global supply chains, and AI-driven collaboration become increasingly interconnected.