Export License

An export license is a government authorization to export a specific item to a specific destination, end user or end use when the law controls that export. Most US exports need no license. Whether one does depends on what the item is, where it is going, who will receive it and what it will be used for.

Which agency controls what

• Commerce Department, Bureau of Industry and Security (BIS): commercial and dual-use items under the Export Administration Regulations (EAR), 15 CFR parts 730 to 774. Controlled items are listed on the Commerce Control List (CCL) in part 774, each under an Export Control Classification Number (ECCN)
• State Department, Directorate of Defense Trade Controls (DDTC): defense articles and defense services under the International Traffic in Arms Regulations (ITAR), 22 CFR parts 120 to 130
• Treasury Department, Office of Foreign Assets Control (OFAC): sanctions programs against certain countries, regimes and listed persons, which reach imports and financial dealings as well as exports (31 CFR chapter V)

How the EAR decision works

• Classify the item: find its ECCN on the CCL. An item subject to the EAR but not listed on the CCL is EAR99, the basket classification
• Check the destination: the Country Chart in part 738 shows which ECCNs need a license to which countries
• Check the parties and the use: depending on the destination, end user or end use, even an EAR99 item may need a license
• Outcome: a license from BIS (applied for through its SNAP-R system), a license exception, or No License Required (NLR)

Who is responsible

Under 15 CFR 732.3 the exporter, reexporter or transferor is responsible for classifying the items correctly, and a wrong classification does not remove the obligation to get a license when one is required. You can classify the item yourself or ask BIS for a classification. A forwarder or carrier moving the goods does not make that determination for you.

Where it shows on the export paperwork

• The Electronic Export Information filed in the Automated Export System (AES) carries a license code, which reports a license, a license exception or NLR, plus the ECCN or EAR99. An EEI filing is required whenever an export license applies, whatever the value
• For items on the CCL, the Destination Control Statement must be part of the commercial invoice (15 CFR 758.6); it is not required for EAR99 items or for shipments under License Exception BAG or GFT

India: SCOMET controls

India controls exports of dual-use items, munitions and nuclear-related items, including software and technology, through its SCOMET list (Special Chemicals, Organisms, Materials, Equipment and Technologies), notified as Appendix 3 to Schedule 2 of the ITC(HS) classification. Exporting a SCOMET item is either prohibited or allowed only under an authorization unless it is specifically exempted. The Directorate General of Foreign Trade (DGFT) authorizes most categories; nuclear items (Category 0) are authorized by the Department of Atomic Energy, and most munitions list items (Category 6) by the Department of Defence Production.

On US exports to India

For USA-to-India shipments, settle the classification (ECCN or EAR99) and any license before booking, because the EEI, filed before export, must report it. The Schedule B finder gives the commodity number the EEI also needs.