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Figuring out how to get an export license can be difficult for new exporters. You have your product, you’ve got foreign buyers, but ask yourself, “Do I need an export license to ship internationally?”. It’s not always obvious if your particular goods require one, and you don’t want to run the risk of non-compliance with U.S. export regulations.
The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) requires an export license for businesses seeking to trade controlled goods internationally. To get an export license in the U.S., you’ll need to identify whether your product falls under the Export Control Classification Numbers (ECCN) or is otherwise controlled.
This article is your guide through the complexities of export licenses, from why you might need one to how to acquire it. We’re here to answer the question, ‘Do I need a license to export from the USA?’.
What is an export license in the first place? In the United States, licenses aren’t actually required for the vast majority of exported goods. However, making assumptions about whether you need a license can be risky.
If you do need an export license, you would most often apply for it through the agency in charge of regulating the product. While this process can take a while, the good news is that you’re likely to be approved. Consider the following statistics from the BIS.
| Total License Applications | 38,203 |
| Licenses Approved | 32,996 |
| Licenses Denied | 415 |
There are a few factors that can reveal whether an export license is needed, such as
Out of these three considerations, the one most likely to come up is the type of commodity. These only account for approximately five percent of U.S. exports per year: however, it’s important to know how to determine if your merchandise falls into that small percentage.
Most exports that require a license are controlled commodities. These are products that may pose a danger to individuals or entire nations (including the U.S.) if not strictly regulated. The ability to identify these goods is essential for exporters who plan on dealing with potentially dangerous merchandise.
The most fool-proof way to find out if your export is designated as a controlled commodity is by finding out if it has an ECCN.
Understanding which goods are controlled is crucial for determining whether you need an export license. The U.S. Department of Commerce plays a significant role in this, especially through the BIS.
Every controlled item has a code known as an ECCN. This code is five digits long, and is used to identify the nature of the product and the regulations surrounding its export. To find this code, you can consult the Commerce Control List (CCL) or talk to the manufacturer of the item. It’s also possible to request an official ECCN from the BIS.
In addition to licensing specific exports, trade is limited or outright banned with certain countries. For instance, while a licensed fire arms exporter could send their goods to Canada (with proper authorization), the same cannot be said for Cuba and Venezuela. This is due to embargoes or concerns about weapons finding their way into groups unfriendly to the U.S.
Under special circumstances, licenses may be granted to otherwise sanctioned nations for a limited variety of goods.
This includes nations like:
Remember: as an exporter, it’s your responsibility to perform due diligence and determine whether your goods need a license based on their ECCN or destination. Being in compliance is not just a good practice—it’s the law.
Learn more about ECCNs in our dedicated article found here.
After answering the question of whether or not the license is needed, it’s time to take the steps to apply for one. Filing the required paperwork is just one part. You must also know which government organization issues the license or licenses you need.
Let’s review some of the documents you’ll need to submit, along with some licensing bodies you may need to deal with.
Before you can export certain goods, you must ensure that you have all the necessary paperwork and credentials in place. Being qualified to export is more than just filling out a form; it’s about meeting a variety of regulations and standards.
To start the process, there are several key documents you’ll need to have on hand, such as:
Other documents and paperwork may be required depending on which government entity issues licenses for your controlled goods. You can get these forms from the governing agency’s official site.
The government agency you end up dealing with may also require you to have certain qualifications. For example, no matter how accurate your paperwork is, not just anyone can export guns or missile materials.
Understanding which U.S. agency is responsible for your type of goods is crucial for obtaining the correct license.
This table lists some common controlled items and the governing bodies that authorize licenses for exporting them.
| Commodity | Licensing Body |
| Chemicals | Chemical and Biological Controls Division |
| Aerospace Technology | Federal Aviation Administration |
| Advanced Electronics | Bureau of Alcohol Tobacco and Firearms |
| Arms and Ammunition | Bureau of Industry and Security |
| Medical Equipment | Center for Devices and Radiological Health |
| Military and Defense Equipment | Bureau of Industry and Security |
| Nuclear Materials | United States Nuclear Regulatory Commission |
Source: bis.doc.gov
By ensuring you meet all the requirements set by these governing bodies, you take a big step toward a smooth export process.
After you meet the needed requirements, it’s time to start completing the final steps. Let’s take a look at a typical application process and the qualifications you might need prior to applying.
The application process for an export license in the U.S. can be completed in just six steps at this point.
Bear in mind that different commodities have different licensing procedures and requirements. Some may require additional security clearances or more in-depth documentation. However, these steps are the ones you’ll be most likely to follow.
Careful completion of these steps will have you well on your way to exporting goods legally and successfully.
You’ve submitted your export license applications, and now you’re wondering when you’ll receive your license. If the approval process isn’t delayed, you could receive it within a few days to several months. This varies depending on the licensing agency in question and a few other variables.
Delays in approval can occur due to the following reasons.
Some steps you can take to avoid delays are:
By being aware of what could slow you down and taking steps to prevent those delays, you increase your chances of receiving your export license as quickly as possible.
If you need an export license, you may also need end-user certificates from your international buyer. These certificates are used to ensure that items such as weapons and ammunition are not re-sold. These documents play an important role in securing export transactions.
The BIS defines an end-user certificate as a document issued by the recipient of a controlled exported product, certifying that overseas buyers take responsibility for their shipments and will not sell or transfer them without U.S. government approval.
End-user certificates play an important role in national security and preventing fraudulent export transactions in the following ways.
Understanding the importance of end-user certificates and making sure to obtain them will let you avoid potential hassles. This simple document is a small but vital part of the export process.
While you won’t need an export license for most transactions, knowing how to find out if you’re dealing with a controlled commodity is a crucial facet of the export business. That’s a business that we just happen to specialize in.
At Cargo Export USA, you’ll find experienced export experts who can give you the tools needed to succeed in this challenging undertaking. Our services include:
Don’t play guessing games with your export business. Call today at (866)-301-0635 or contact our export specialists online. We’re standing by to put our expertise to work for your export business.
