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How much does an export license cost? This is important information to know before starting an export business. While the idea of exporting products can be exciting, the reality of these costs are daunting. However, with the right information and resources, exporters can easily navigate these expenses.
According to the Bureau of Industry and Security (BIS), exporters will not be charged a fee for an application. However, this isn’t true for all agencies. The price of an export license can vary based on whom a business is obtaining the document from, the type of application, the commodity, end-use, and the destination country.
Before sending goods to another country, take the time to understand how much an export license costs and the various factors that can affect the price.
Businesses are often concerned about how much money they’ll spend on an export license when sending goods to customers overseas. There are a number of different types of fees that have to be paid when exporters obtain this document.
Additionally, export license prices can fluctuate based on different factors. We’ll explain what types of fees that businesses can expect to run into and what causes the cost of an export license in the USA to go up or down.
There are several types of fees that businesses could encounter when obtaining an export license. Each can be divided into three main categories. We’ve separated fees and the corresponding cost, from the smallest amount to the highest.
| Type of Fee | Cost |
| Application Fees | $20-$500 |
| Processing Fees | $50-$1,000 |
| Licensing Fees | $100-$2,500 |
Provided by the Code of Federal Regulations (CFR)
Application fees are charged when a business submits an application for an export business license. The cost can vary between $20 to $500 depending on the type of document being requested. For example, the BIS charges $200 for a standard export license application for commercial goods.
Processing fees are charged for reviewing the application and processing the license. Businesses can expect $50 to $1,000 depending on the type of product and destination country. Licensing payments are charged when the document is issued. This type of fee can range from $100 to $2,500 depending on the type of product and destination country.
It's crucial for businesses to do their research and understand the fees involved before applying for an export permit to avoid any surprises or unexpected costs.
There are several factors that can influence the amount of an export license. Understanding these elements is crucial for businesses looking to export their products profitably.
Some factors that can influence the price of an export license include the:
The type of product being exported can have a significant impact on the cost of an export license. For example, a product that is considered a dual-use item, may require additional documentation and security measures.
Exporters might have to pay more for a license depending on the country they send their goods. Some countries have trade restrictions that can increase the licensing fees and other documentation requirements.
Export license costs can vary based on the government agency that issues the paperwork. Different agencies have varying fee structures and requirements for obtaining this document.
How quickly a business needs an export license can also impact costs. Some agencies may charge an additional fee for expedited processing of the license application, while others may offer a reduced charge for longer processing times.
Additional certifications or requirements may be necessary to obtain the license. The type of product and the country it’s sent to might necessitate other types of paperwork. For example, if the item being exported contains certain chemicals, additional certifications or documentation is required. This can cause the total cost of a license to rise.
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An export license is a legal document issued by a government agency that authorizes a business or individual to export specific products to a certain country.
These documents are required to ensure that the goods being exported do not pose a threat to the following:
Different government agencies will issue export licenses for the products they regulate. Therefore, businesses are responsible for obtaining their license from the correct federal agency.
Exporters that need a license to send their goods to another nation will likely need to complete additional requirements.
The requirements vary depending on:
Businesses should understand each factor to better prepare themselves for additional responsibilities after obtaining this document.
In most cases, shipments sent to other countries won’t need an export license. However, specific types of products are subject to export regulations and require this document to be exported legally.
Some products that require an export license include:
Military and dual-use goods are products that have both commercial and military applications. Licenses are strictly required for commodities that fit in this category.
Some countries have regulations related to the export of agricultural products. These products require a license to ensure that they comply with all regulations related to food safety and animal welfare.
Customs authorities in other countries have restrictions on the export of artifacts and antiques to prevent the illegal trade of cultural heritage items. Items in this category need documentation to ensure that they are legally exported.
Hazardous materials require a license to ensure that they are safely transported and do not pose a risk to public safety or the environment. Firearms and ammunition also depend on this type of paperwork to ensure they haven’t been illegally exported and won’t contribute to the illicit trade of firearms.
Businesses should also be aware that some products may be subject to multiple licensing requirements. This can happen when items are subject to the regulations of two different federal agencies.
The agency that issues a license will vary based on the goods being exported and the country receiving the items. Knowing which agency has jurisdiction over the product being shipped internationally is crucial for businesses that need to obtain this document.
Exporters may need to acquire an export license from the following:
The BIS is responsible for issuing most commercial and dual-use export licenses in the United States. Dual-use items are products that can be used for both commercial and military applications. DDTC is responsible for issuing licenses for defense articles and services. Defense articles include weapons and other items designed for military use.
OFAC enforces economic and trade sanctions against countries and individuals posing a threat to national security. ITA is responsible for promoting trade opportunities in the United States and helping businesses navigate the complexities of exporting.
Businesses will need to determine the agency issuing their license to ensure they obtain the correct one.
Businesses may also need to obtain certain documents and certifications to export their products legally after obtaining their export license.
Some documents include:
A commercial invoice is a document that provides information about the products being exported.
This includes:
Commercial invoices are required for customs clearance and to calculate duties and taxes. A certificate of origin is required when an exporter applies for a reduced or removed tariff under a Free Trade Agreement (FTA). This document provides information that proves the exported commodities originated from a certain country.
An ECCN is a code with five characters that identifies the product being exported and the level of control required for that product. This code is used to determine export license requirements and to ensure that the exported product complies with applicable regulations.
End-user statements are documents that identify who will receive the exported product and the intended use of the item(s). An exporter must provide this document to ensure that the exported goods aren’t used for any illegal or unauthorized purposes.
Certifications are another document that business might need to acquire after obtaining their export license.
This includes:
These certifications ensure that the exported product complies with all regulations and laws related to its production and use.
Knowing how to get an export business license is very important. Fortunately, senders of international commodities only have to follow a few simple steps to get this document. Business can also apply for a license online or in-person.
Obtaining an export license can be confusing for even the most experienced exporters. Having a step-by-step process will help businesses can obtain their document.
The steps to obtain an export license:
By following this step-by-step process, businesses can obtain an export license quickly and easily, while also avoiding penalties or legal issues.
Many agencies responsible for issuing export licenses offer online applications. These types of forms require businesses to provide all the necessary information and upload any required documents.
Some advantages of using online export license application form:
It's still crucial for exporters to research the required documents and certifications to comply with all regulations and laws related. By using online applications to obtain a license, businesses can acquire their document more efficiently.
Some businesses prefer exporters to submit their applications in-person. This will require a business to schedule an appointment and bring all the necessary information and documents to the agency's office.
These are some advantages of using in-person applications to obtain an export license:
It's essential that businesses determine the best method for submitting their export license application based on their specific needs and preferences.
At Cargo Export USA, we can help you get the license you need for your shipment of international goods. Our consultants can help businesses navigate the complex process of exporting their products and ensure that they comply with regulations. Schedule a personalized, 1-on-1 consulting session and get the answers you need today.
We can also help you with some other important services:
Don't let the complexities of exporting your products hold you back. Contact us today at (866) 301-0635 for any questions you might have. You can also get your risk-free quote and take the first step towards exporting your products legally and successfully.
