Export license

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.

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:

• 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:

• 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.

Examples of Export license

• Export license for Military Equipment: This type of license is usually required for the export of military equipment such as ammunition, explosives, and firearms. In the United States, the Bureau of Industry and Security (BIS) is responsible for issuing such licenses.
• Export license for Dual-Use Goods: Dual-use goods are items which can be used both for civilian and military purposes. Such goods are usually subject to international export control regulations. In the United States, the Department of Commerce (DOC) is responsible for issuing export licenses for dual-use goods.
• Export license for Controlled Substances: This type of license is usually required for the export of certain controlled substances such as drugs or chemicals. In the United States, the Drug Enforcement Administration (DEA) is responsible for issuing such licenses.
• Export license for Wildlife Products: This type of license is usually required for the export of certain species of animals or plants. In the United States, the Fish and Wildlife Service (FWS) is responsible for issuing such licenses.
• Export license for Cultural Objects: This type of license is usually required for the export of certain cultural objects such as art, antiques, or archaeological artifacts. In the United States, the Department of State (DOS) is responsible for issuing such licenses.

Advantages of Export license

Export licenses provide many advantages for businesses who wish to export goods and services to other countries. Here are some of the main advantages of export licenses:

• Export licenses can help to ensure that goods and services are exported in a legal and compliant manner, ensuring that all necessary regulations and conditions are met.
• Export licenses can help to protect the rights of the exporter, ensuring that they are not taken advantage of by foreign buyers.
• Export licenses can help to protect the local market by preventing foreign businesses from undercutting local businesses on price or quality.
• Export licenses can help to ensure that products are of a certain quality, as they can require that products meet certain standards or quality certification.
• Export licenses can help to protect intellectual property rights, as they can specify how and where a product can be sold.
• Export licenses can help to reduce the risk of fraud, as they can help to verify the authenticity of the goods being exported.

Limitations of Export license

Export licenses are essential documents for exporters, but they have some limitations. The following are some of them:

• Export licenses can be complex and time consuming to apply for, which can be a barrier to exporters who need to move goods quickly.
• Export licenses are often subject to changes in regulations, meaning that exporters must constantly stay up-to-date with the most current rules.
• Export license fees can be expensive, and often vary from country to country.
• Export licenses can require a lot of paperwork, especially in cases where goods are being shipped to sensitive countries.
• Export licenses also cannot guarantee that goods will be accepted in the destination country, as the importing country may impose additional regulations or restrictions.

Other approaches related to Export license

Export license is an important document for any exporter, as it is required to authorize the export of goods into the specific destination. Other approaches related to export license include:

• Obtaining necessary export documents - In addition to the export license, there are other documents that need to be obtained in order to export goods, such as export permits, certificates of origin and export declarations.
• Complying with international export regulations - In order to export goods, exporters must comply with international export regulations, such as the International Trade Regulations and the World Trade Organization's rules.
• Understanding Export restrictions - Exporters must understand and comply with the restrictions imposed on certain goods, such as restrictions on the export of certain technology and dual-use items.
• Keeping track of shipments - Exporters must keep track of their shipments and ensure that they are delivered on time and without any issues.

In conclusion, export license is a critical document for any exporter as it is required to authorize the export of goods into specific destinations. Other important approaches related to export license include obtaining necessary export documents, complying with international export regulations, understanding export restrictions, and keeping track of shipments.

Footnotes

Export license — recommended articles

CMR convention — Export declaration — Import declaration — Certificate of origin — Shipping terms — Certificate of free sale — Shipping note — Occupancy permit — Mercantile law

References

• Capela J. J., (2012), Import / export kit for dummies, John Wiley & Sons, Chichester
• Cherukonda N., (2014), Exporting basics: government resources and used equipment, Trafford Publishing, Bloomington, p. 20
• Hinkelman E.G., (2008), Dictionary of international trade 8th edition, World Trade Press, Traverse City, p. 70
• International management for business executives handbook volume 1 export-import and trade, (2013), International Business Publications, Washington, p. 108, 138
• Wolf J. S., Romeo J. B., (1993) Start thinking export!, DIANE Publishing, Darby, p.50-51

Author: Kacper Klimek