This article from Noble Network will introduce you to the necessary licenses that US exporters must follow in order to comply with US laws.

EXPORT REGULATIONS

Although export licensing is a necessary element of the US export process, it is one of the most widely misunderstood aspects of the US government export rules. The export license system may appear complicated at first, but it is usually a simple process. However, exporters should keep in mind that violations of the US Export Administration Regulations (EAR) can result in both civil and criminal penalties. The Bureau of Export Administration (BXA) of the United States Department of Commerce is in charge of export controls. When in doubt about how to comply with export restrictions, contact US Department of Commerce authorities or professional advisers for guidance.

Subscriptions to the EAR publications are available from the Superintendent of Documents, United States Government Printing Office, Washington, DC 20401; phone 202-275-2091. Subscription forms are available at local US Commerce Department district offices or via the Office of Export Licensing, Exporter Counseling Division, U.S. Department of Commerce, Room 1099D, Washington, DC 20230; phone 202-482-4811.

                                                   

TYPES OF LICENSES

Export License

The United States controls the export and reexport of commodities and technical data for reasons of national security, foreign policy, or scarcity by issuing two types of export permits: (1) general licenses, and (2) individually validated licenses (IVLs). There are also specific licenses that are employed if particular conditions, such as distribution, project, and service provision, are met. All items exported from the United States require an export license, except US territories and possessions and, in most situations, Canada. The export license procedure can involve several US government entities.

 

General License

A general license is a broad grant of authorization by the government to all exporters for specific product categories. Individual exporters are not required to apply for general licenses because such authorization is already provided under the EAR; they simply need to be aware that such authorization is available.

 

Individually Validated License

If a general license is not available, an IVL is a special grant of permission from the government to a specific US exporter to export a specific product to a specific location. Licenses are provided on an individual basis for either a single transaction or a series of transactions within a set time frame. An exporter must apply for an IVL with the Department of Commerce. Munitions are an exception, as they require a Department of State application and license. The EAR has a list of other exceptions.

In our future newsletter on this subject, we will describe how to determine which license to use, how to acquire an ILV, when to submit a shipper’s export declaration to customs, and what record keeping procedures to follow when shipping.