Export license

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Export license
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Export license is a document that government issues in order to authorize the export of certain goods into the specific destination. There are some cases in which a special kind of export license is required by law for the goods to be transported. This is usually when a validated export license is needed. Although it is not always the case and mostly, a general export license is enough to be an exporter[1][2][3].

Types of export license

There are a few types of export licenses we may obtain. The required type of license may depend on the destination country or the kind of product are you exporting. As an example, we may use types of export license which were previously used in the United States, and yet they might still appear to this day[4]:

  • General export license is granted by the government to every exporter and allows them to export particular types of products to most countries in the world. There is no particular application required to work under the general license. A freight forwarder is the one that determines whether a general license is enough for a certain product.
  • Validated export license is a type of license granted individually for each case. It is always issued for the particular product, to a particular exporter, and to a particular destination country. In most of the cases license is valid for the next two years. For instance, a validated export license is needed for different kinds of electronics.

Currently though, there are two categories of product exported[5]:

  • NLR which is abbreviation for no license required.
  • Validated export license required.

License exceptions

Under specified circumstances and exporter may be authorized to export certain goods which usually need a license to be exported or reexported. This is called license exception. There are few factors that affect whether particular case of export is covered by an exception which are the type of the item, country to which it is shipped to, who is going to use it and what for[6].

Footnotes

  1. Hinkelman E.G., (2008)
  2. Cherukonda N., (2014)
  3. International management for business executives handbook volume 1 export-import and trade, (2013)
  4. Wolf J. S., Romeo J. B., (1993)
  5. Capela J.J., (2012)
  6. International management for business executives handbook volume 1 export-import and trade, (2013)

References

Author: Kacper Klimek