Does My Shipment Require an Export License?
One of the biggest hurdles an exporter faces is to determine if the product they are shipping requires a license. As the exporter, it is your responsibility to know your customer – the party to whom you are selling your product!
Supplement 3 to Part 732 of the Export Administration Regulations (EAR) is a “Know Your Customer” guide from the Bureau of Industry & Security (BIS). BIS advises there are certain red flags that should be considered in a transaction.
It is not as simple as handing a shipment over to your forwarder to take care of everything. Only you know your product best. Again, you must do your due diligence by having a dialogue with your buyer: What is the end-use of the product being shipped; who is the end-user? What is the ultimate country of destination? Am I meeting all requirements of the EAR?
There are 5 factors that determine your obligations under Section 732.1(3)(b) of the Export Administration Regulations (EAR):
- What is it?
- Where is it going?
- Who will receive it?
- What will they do with it?
- What else do they do?
If you have any questions about whether your shipment requires a license to legally export it or you have encountered a red flag, we recommend you contact the Office of Export Enforcement at 1-800-424-2980 or the Officer of Exporter Services at 202-482-4532. Section 748.3 of the EAR also provides instructions on classifications requests and advisory opinions.
Please feel free to contact your local C J representative for more details.