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):

  1. What is it?
  2. Where is it going?
  3. Who will receive it?
  4. What will they do with it?
  5. 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.   

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