An export license is an authorization required to export specified goods, software, technology or services under defined conditions. The requirement can depend on classification, destination, end user, end use and applicable sanctions or controls.
What determines whether a license is needed?
- Export-control or product classification
- Destination and transit countries
- End user and beneficial ownership
- Stated and reasonably known end use
- Technical content or performance
- Available exceptions or general authorizations
How should the review work?
- Classify the item and controlled technology.
- Screen parties, destinations and end use.
- Determine the applicable rule and licensing authority.
- Assess exceptions with documented eligibility.
- Apply before shipment or controlled release where required.
- Monitor conditions, quantity and validity after approval.
License vs. customs declaration
The license grants permission under an export-control regime. The customs declaration reports the shipment for export processing. A declaration does not replace a required license, and a license does not complete customs formalities.
What should the license record show?
Record the authorized parties, items, quantities, values, destinations, end use, conditions, issue and expiry dates, shipments used against the authorization and remaining balance.
What can create a violation?
Shipping before approval, using the wrong classification, exceeding quantity or value, changing the end user, releasing controlled technology remotely or relying on an inapplicable exception can all create risk.
