Export License and Regulations

Export Documents

• An export license is an express authorization by a country's government to export a specific product before it is shipped.
• Types of products that may need an export license include national treasures, antiques, works of art, products controlled for political or military purposes, and scarce natural resources.

U.S. Export Controls

• The U.S. export control policies focus on three elements to determine if an export needs a license: the type of product exported, the person or entity purchasing the product, and the ultimate country of destination.
• The Bureau of Industry and Security maintains a Commerce Control List, which assigns an Export Control Classification Number (ECCN) to products of concern to the U.S.
• Products that may be potentially dangerous or have "dual use" require a license, while those classified as EAR99 do not.
• Even if a product is classified as EAR99, exporters still need to determine if the purchaser is on one of several lists, including the Entity List, Unverified List, Specially Designated Nationals and Blocked Persons List, and Denied Persons List.
• The U.S. government considers some countries "friendly" and others "unfriendly," with total embargos on countries like Cuba, Iran, North Korea, Sudan, and Syria, and limits on what can be shipped to other countries.

Destination Control Statement

• A Destination Control Statement is required for products that have obtained a Validated Export License, stating that the merchandise is licensed for ultimate destination to a specific country and that diversion contrary to U.S. law is prohibited.

Export Electronic Information

• The Export Electronic Information (EEI) declaration is a data-collection process used to tabulate what products are exported from the U.S. and to which countries they are exported, required for shipments worth $2,500 or more per item.

End-Use Certificate

• An End-Use Certificate is a document required by some exporting countries for sensitive exports, such as ammunition, to ensure that the product is used for acceptable purposes.

Export Taxes and Quotas

• Some countries require exporters to pay an export tax on certain commodities, and export quotas are limits set by the exporting country's government on the quantity of a specific commodity that can be exported in a given year.

Import Documents

• A Certificate of Origin is a document provided by the exporter's chamber of commerce that attests that the goods originated from the country in which the exporter is located.
• A Certificate of Manufacture is a document provided by the exporter's chamber of commerce that attests that the goods were manufactured in the country in which the exporter is located.

Bill of Lading

• A Bill of Lading is a receipt for the goods, and there are two alternatives when the carrier receives the goods: a clean bill of lading if the goods are received in good condition, or a soiled bill of lading with an annotation of any issues.

Letters of Credit and Shipments

• A Bill of Lading can be negotiable or straight, depending on whether the consignee is left blank or specified.
• Letters of credit always call for a clean bill of lading.

Packing List and Manifest

• A Packing List is a document prepared by the exporter that lists out what a shipment contains in great detail.
• A Manifest is a document generated by the shipping company that lists all cargo onboard the transportation vehicle.

Shipper's Letter of Instruction

• A Letter of Instruction is a document in which the shipper spells out how it wants the carrier to handle the goods while they are in transit, including specifications for temperature, feeding, and stowing.

Dangerous Goods

• Shipments of dangerous goods are regulated by international codes and regulations, requiring additional documents and specific stowing instructions.

Electronic Data Interchange (EDI)

• Electronic Data Interchange (EDI) is the electronic exchange of documents from computer to computer, used for trade-related transactions.

This quiz covers the basics of export licenses, including what types of products require a license, destination control statements, and shipper's export declarations.