What is an Export License and do all U.S. exports require one?

An export license grants permission to conduct a certain type of export transaction. It is issued by the appropriate licensing agency after a careful review of the facts surrounding the given export transaction.

Not all exports require a license. In fact, a relatively small percentage of all U.S. export transactions require licenses from the U.S. government.

How do I know if my product requires a License?

Licensing determinations are made on individual transactions, not just the product. However, the characteristics of your product will determine if you need a license for a particular transaction.

The Bureau of Industry and Security (BIS) of the U.S. Department of Commerce is responsible for licensing products that are “dual-use,” or have both commercial and military or proliferation applications. The first step to establishing whether a dual-use product requires a license is to find the product’s Export Control Classification Number (ECCN) on the Commerce Control List (CCL).

BIS’s Office of Exporter Services in Washington, DC, (202-482-4811) or in Newport Beach, CA, (949-660-0144), can guide you through this process.

Once the ECCN number is determined, the specialists at BIS can also help you navigate the Export Administration Regulations (EAR) to find out whether you must apply for a license and how to submit the requisite application. An excellent explanation of how to understand the Export Administration Regulations is available on the BIS Web site.

If you discover that your product does not fall into one of the specific categories listed in the EAR, EAR99 is a designation for dual-use goods that are covered by the EAR but are not specifically listed on the Commerce Control List. EAR99 items can be shipped without a license to most destinations under most circumstances. In fact, the majority of commercial exports from the United States fall into this category. Exporters of most consumer goods, for instance, may find their product listed under EAR 99.

Other U.S. Government agencies regulate certain specialized articles. For instance,

Export of defense articles Directorate of Defense Trade Controls at the U.S. Department of State.

Licensing of the export of nuclear materials and equipment is the responsibility of the Nuclear Regulatory Commission.

The Office of Imports and Exports, under the Office of Fossil Energy, in the Department of Energy, regulates the export of natural gas and electric power.

The Department of Energy’s Office of Export Control Policy and Cooperation authorizes the use of nuclear technology and technical data for nuclear power, as well as special nuclear materials.

The U.S. Drug Enforcement Administration regulates the export of controlled substances and precursor chemicals.

For the relevant contact information regarding export controls issues at any of these agencies, call the Trade Information Center at (800) USA-TRADE.

What if my product does not fall into any of the categories mentioned above or is EAR 99?

Two other elements of your transaction still must be considered, the item’s destination and the recipient’s intended end-use of the item.

The Office of Foreign Assets Control (OFAC) at the U.S. Department of Treasury enforces economic sanctions based on U.S. foreign policy and national security goals, which are set forth by Congress.

In the case of a few countries, like Iran, Libya, Cuba and Sudan, the United States maintains comprehensive trade sanctions, which means that the export of most goods to these countries is prohibited. However, licensing programs for the exportation of agricultural goods, medicine, and medical products are in place for Iran, Libya, Cuba, and Sudan.

OFAC licenses exports of allowable products to Iran, Libya, and Sudan, while BIS licenses exports of products to Cuba. Limited sanctions programs are in place against other countries, or groups within those countries.

Detailed information on these sanctions is available on the OFAC Web site and BIS website. U.S. sanctions programs change frequently, so exporters should monitor U.S. sites on a daily basis.

For questions regarding U.S. sanctions programs, contact OFAC at (800) 540-6322.