Since the terrorist attacks on the United States in September of 2001, the federal government has placed an even heavier emphasis on regulating exports. In this highly regulated international trade environment, corporations and individuals do not want to be caught in a position of non-compliance with U.S. Export Controls.

The Bureau of Industry and Security (BIS) is the governmental agency that is responsible for implementing and enforcing the Export Administration Regulations (EAR), which control most exports and potential re-exports of commercial merchandise. BIS does not regulate every classification of commercial merchandise to be exported; other government agencies have specific regulations that apply to various classes of commercial and non-commercial merchandise depending upon the nature of the merchandise in question.

Most merchandise that is exported from the United States does not require an export license and is permitted to be exported under the designation NLR—no license required. However, there are some select classes of merchandise that do require an export license.

Export License Determination

How can you determine if you need an export license? Look at the technical characteristics of the merchandise in question, the destination of the merchandise, the end user, and the intended end use of the merchandise being exported.

What are the characteristics of the merchandise?

You should be certain to classify the merchandise being exported in accordance with the Commerce Control List utilizing the Export Control Classification Number. In most instances, it is this first step that will determine if an export license is required.

Where is the merchandise being exported?

You should be certain that the merchandise is being exported to a foreign nation that is not currently under a trade embargo or considered a state sponsor of terrorism, e.g. Cuba, Iran and North Korea.

Who will receive the merchandise?

You should be certain that the merchandise is being exported to corporations or individuals who are not prohibited from receiving exports from the United States. In addition, certain corporations and individuals may require you to obtain an export permit even if an export permit is not normally required.

Consult the following resources in order to help make a determination:

• Debarred List—Corporations and individuals who have been denied privileges to participate directly or indirectly in the exportation of merchandise related to defense in which a license is required under the International Traffic in Arms Regulations (ITAR).
• Denied Persons List—Corporations and individuals who have been denied export privileges.
• Specially Designated Nationals List—Corporations and individuals appearing on this listing may be denied export privileges under the direction of the Department of Treasury, Office of Foreign Assets Control (OFAC).
• Unverified List—Corporations and individuals may appear on this list if BIS is unable to verify the end use of the merchandise as indicated by the exporter.

What is the intended end use of the merchandise?

You should be certain of the intended end use of the exported merchandise by the corporation or individuals to whom the merchandise was exported. The intended end use may require that an export permit be obtained prior to exportation.

Export License Applications

If you have determined that you need an export license, you may submit an application for a license through the online Simplified Network Application Process Redesign (SNAP-R), or by completing and submitting a paper application, Form BIS-748P, Multipurpose Application Form, which you can order from the BIS website.

To prevent lengthy delays in obtaining approval of your export license, you must completely fill out the application with the following information:

• Details related to the character of the merchandise being exported,
• Details related to the recipient foreign nation,
• Details related to the end user to whom the merchandise is being exported, and
• Details related to the intended end use of the merchandise being exported.

You should avoid providing incomplete or vague answers on the application or your export license will be delayed or rejected.

Export License Assistance

You will find help with the export licensing process by contacting a BIS export counselor at (202) 482-4811 in Washington, D.C., or (949) 660-0144 on the West Coast. In addition to providing export counselors, BIS also hosts informational seminars in various cities across the nation. You’ll find an updated list of seminars at the BIS website.

In addition to maintaining compliance with U.S. export licensing requirements, you should continually consult the EAR for the most up-to-date information pertaining to U.S. Export Controls and other applicable export licensing requirements since they can and do change.