Export License - Explained
What is an Export License?
Written by J. Mance Gordon
Updated at April 21st, 2024
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What is an Export License?
An export license is the authorization issued to exporters by a host country to carry on import-expert activities with individuals from other countries. US export regulations define export as any goods or services sent to foreign countries, individuals, association of individuals and companies.
Export Compliance Requirements
The Export Administration Regulations (EAR) set standards and rules that must be met to send goods to a foreign country. It also applies to re-exporting. Re-export is when goods and services are exported to another country and then subsequently exported to other countries. Its the responsibility of the producer to ensure that it complies with these regulations. The Bureau of Industry and Security (BIS) is the branch of US Department of Commerce which is tasked to implement the Export Administration Regulations (EAR). The BIS and related authorities require exporters to obtain and export license. Followings are the criteria for license:
- Product technical description - What commodity is being exporting? Does it comply with EAR?
- Product destination - Countries where they are sending commodities cannot be blacklisted by US government
- End use - What is the ultimate use of the product? I cannot be an illegal purpose.
- End user - Who is end user? They cannot have been blacklisted.
The BIS and EAR does not cover all export items. To determine whether enterprises need any license to export goods and services, following factors must be considered: