Do I Need an Export License?

The four questions that decide it

What are you shipping?

Some items are controlled because of their technical characteristics or potential dual civilian and military use. Classification of the item is the starting point.

Where is it going?

Destination matters enormously. Some countries are subject to comprehensive sanctions or targeted restrictions.

Who is receiving it?

Specific companies, organizations and individuals are restricted regardless of what is being shipped or where they are located.

What will it be used for?

Certain end uses are prohibited even when the item itself is not otherwise controlled.

If any one of these raises a flag, stop and get professional guidance before shipping.

How to work through it in practice

1. 1

   Classify the item

   Establish what the product is technically, not just commercially. For controlled and dual-use goods, this means determining the applicable control classification, which is a different exercise from HS classification.

2. 2

   Check the destination

   Review whether the destination country is subject to sanctions or restrictions relevant to your product category.

3. 3

   Screen the parties

   Screen the buyer, the consignee, the end user and any intermediaries against the U.S. government's consolidated screening list. Do this for every transaction, not once per customer.

4. 4

   Consider the end use

   Ask what the goods will be used for and note anything inconsistent — unusual quantities, refusal to disclose end use, requests to route through third countries, or a buyer whose business does not match the product.

5. 5

   Document your conclusion

   Whatever you determine, write down the basis for the decision and keep it. Compliance is judged on process and records as much as on outcome.

Where to verify officially

Licensing is a legal determination that United Exports cannot make for you, and nothing on this platform constitutes a license, an authorization or legal advice.

• The Bureau of Industry and Security within the U.S. Department of Commerce administers the Export Administration Regulations covering commercial and dual-use items.
• The Directorate of Defense Trade Controls within the U.S. Department of State administers the International Traffic in Arms Regulations covering defense articles and services.
• The Office of Foreign Assets Control within the U.S. Department of the Treasury administers sanctions programs.
• The federal Consolidated Screening List brings restricted-party lists from multiple agencies into one search.
• A licensed customs broker or an export compliance attorney is the right professional when the answer is not clearly negative.

Warning signs worth pausing on

• A buyer who is evasive about who the end user is or where goods will ultimately go.
• An order whose quantity or specification does not fit the buyer's stated business.
• A request to ship to an address unrelated to the buyer, or to relabel or under-declare goods.
• Willingness to pay a premium to avoid normal documentation.
• Routing that makes no commercial sense for the destination given.