Do you know when to get a license for exporting goods?

1 What is an export license?

An export license is a document that authorizes you to export certain goods or services to a specific country or entity. It is issued by the government agency that regulates the export of those items, such as the Department of Commerce, the Department of State, or the Department of the Treasury. An export license may be required for various reasons, such as national security, foreign policy, trade sanctions, or anti-terrorism measures. An export license may also specify certain conditions or limitations on the export, such as quantity, value, end-user, or end-use.

2 How to find out if you need an export license?

The first step to finding out if you need an export license is to classify your product according to the Export Control Classification Number (ECCN) or the Schedule B Number. The ECCN is a five-digit code that identifies the level of export control for your product based on its technical characteristics and functions. The Schedule B Number is a ten-digit code that identifies the statistical category and subcategory of your product for customs purposes. You can find the ECCN and the Schedule B Number of your product by using the Commerce Control List (CCL) or the Census Bureau's Schedule B Search Engine.

The second step is to check the destination country and the end-user of your product. You can use the Country Chart in the Export Administration Regulations (EAR) or the Consolidated Screening List (CSL) to see if there are any restrictions or prohibitions on exporting your product to a certain country or entity. You can also use the EAR's Part 744 to see if there are any specific end-use or end-user controls that apply to your product.

The third step is to apply the relevant export license exceptions or exemptions, if any. The EAR provides several license exceptions that allow you to export certain products without a license, under certain conditions and requirements. For example, the License Exception No License Required (NLR) allows you to export most products that are not controlled for national security reasons, as long as they are not destined to an embargoed country or a prohibited end-user or end-use. You can find the list of license exceptions and their eligibility criteria in the EAR's Part 740.

3 How to apply for an export license?

If you determine that you need an export license for your product, you can apply for one online through the Simplified Network Application Process Redesign (SNAP-R) system. You will need to register with the Bureau of Industry and Security (BIS) and obtain a Company Identification Number (CIN) and an Authorization Code. You will also need to provide information about your product, its ECCN, its value, its destination, its end-user, and its end-use. You will also need to submit any supporting documents, such as technical specifications, end-user statements, or letters of explanation. The BIS will review your application and either approve, deny, or request additional information within a few weeks.

4 How to comply with export controls?

Besides obtaining an export license, you also need to comply with other export controls that may apply to your product. For example, you need to keep accurate and complete records of your export transactions, such as invoices, shipping documents, and license copies. You also need to report any changes or discrepancies in your export information, such as quantity, value, destination, or end-user. You also need to follow the export clearance procedures, such as filing the Electronic Export Information (EEI) through the Automated Export System (AES) or the Automated Commercial Environment (ACE). You also need to cooperate with any audits or inspections by the BIS or other agencies.

5 What are the consequences of violating export controls?

Violating export controls can have serious consequences for you and your business. You can face civil penalties of up to $300,000 per violation or twice the value of the transaction, whichever is greater. You can also face criminal penalties of up to $1 million per violation and up to 20 years of imprisonment. You can also lose your export privileges and be barred from future exports. You can also damage your reputation and credibility in the international market. Therefore, it is essential that you understand and follow the export licensing and controls for your products.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?