EXPORT CONTROLS
EXPORT CONTROLS
Another area in which exporting differs from importing is the licensing required to control exports. The history of export controls in the United States is based on the presumption that all exported goods and technical documentation are subject to regulation by the government. This presumption is fundamentally different than most nations, which often presume the freedom to export unless there is an explicit statement of a need to control. Therefore, the public regulation of international sales in America is often more onerous than elsewhere.
The exercise of controls by the United States varies from nonexistent (as is the case with Canada) to total embargoes (as are the cases of North Korea, Cuba, and Vietnam). Several departments have legal authority to control exports. The Department of State licenses arms, ammunition, implements of war, technical data relating thereto, and certain classified information. The Department of Justice licenses narcotics and dangerous drugs. The Nuclear Regulatory Commission licenses nuclear materials. Other exceptions exist but, in general, the Department of Commerce's control system affects most exporters. The current law (Export Administration Act of 1979), as amended, is designed to promote the foreign policy of the United States, protect the national security, and protect the domestic economy from the excessive drain of scarce materials.
The law provides for you to use three basic types of export licenses. They are as follows:
1. General License authorizes export without application by the exporter. It usually applies to low-dollar and low-technology items. It does not require preapproval. All you need to do is place the symbol for General License on the documentation.
2. Qualified General License authorizes multiple exports to a specified purchaser. It is issued pursuant to an application by the exporter.
3. Validated License authorizes a specific export to a
specified country and purchaser. It is issued pursuant to an application by the exporter. Several types of validated export licenses exist: individual, project, periodic, distribution, time limit, and technical data. Each license is good for one total transaction and, in general, you have two years to complete the shipment.
Export controls are organized on the Commodity Control List (CCL) according to country or by item. Some, however, focus more generally, such as those that advance the human rights cause, or those prohibiting doing business with those who boycott for ethnic or political reasons.
With few exceptions, an exporter must complete a Shipper's Export Declaration (SED) (Commerce Form 7525-V) and deposit it with the exporting carrier regardless of whether a shipment is exported under a validated or a general license.
The vast majority of all exports do not require a validated export license and require only the appropriate general license notation on the SED. Once you determine that you require a validated license for a specific export, you should submit an application for a license to the Office of Export Administration (OEA), P.O. Box 273, Washington, D.C. 20044. An application consists of a completed Form ITA-622P, "Application for Export License," and the required supporting information. Figure 5-1 is the application form for an export license.
Within 10 days after the date OEA receives the application, the office will issue the license, deny it, send the application to the next step in the licensing process, or, if you have completed the application improperly or they need additional information, return the application without action. Once you receive the approved license, you should keep the validated license on file. All you submit is the SED; however, all information on the SED must conform with that found in the validated license.
To avoid export control violations and shipping delays, you should contact your local ITA District Office or the Exporter's Service Staff, Office of Export Administration, International Trade Administration for assistance.
Another area in which exporting differs from importing is the licensing required to control exports. The history of export controls in the United States is based on the presumption that all exported goods and technical documentation are subject to regulation by the government. This presumption is fundamentally different than most nations, which often presume the freedom to export unless there is an explicit statement of a need to control. Therefore, the public regulation of international sales in America is often more onerous than elsewhere.
The exercise of controls by the United States varies from nonexistent (as is the case with Canada) to total embargoes (as are the cases of North Korea, Cuba, and Vietnam). Several departments have legal authority to control exports. The Department of State licenses arms, ammunition, implements of war, technical data relating thereto, and certain classified information. The Department of Justice licenses narcotics and dangerous drugs. The Nuclear Regulatory Commission licenses nuclear materials. Other exceptions exist but, in general, the Department of Commerce's control system affects most exporters. The current law (Export Administration Act of 1979), as amended, is designed to promote the foreign policy of the United States, protect the national security, and protect the domestic economy from the excessive drain of scarce materials.
The law provides for you to use three basic types of export licenses. They are as follows:
1. General License authorizes export without application by the exporter. It usually applies to low-dollar and low-technology items. It does not require preapproval. All you need to do is place the symbol for General License on the documentation.
2. Qualified General License authorizes multiple exports to a specified purchaser. It is issued pursuant to an application by the exporter.
3. Validated License authorizes a specific export to a
specified country and purchaser. It is issued pursuant to an application by the exporter. Several types of validated export licenses exist: individual, project, periodic, distribution, time limit, and technical data. Each license is good for one total transaction and, in general, you have two years to complete the shipment.
Export controls are organized on the Commodity Control List (CCL) according to country or by item. Some, however, focus more generally, such as those that advance the human rights cause, or those prohibiting doing business with those who boycott for ethnic or political reasons.
With few exceptions, an exporter must complete a Shipper's Export Declaration (SED) (Commerce Form 7525-V) and deposit it with the exporting carrier regardless of whether a shipment is exported under a validated or a general license.
The vast majority of all exports do not require a validated export license and require only the appropriate general license notation on the SED. Once you determine that you require a validated license for a specific export, you should submit an application for a license to the Office of Export Administration (OEA), P.O. Box 273, Washington, D.C. 20044. An application consists of a completed Form ITA-622P, "Application for Export License," and the required supporting information. Figure 5-1 is the application form for an export license.
Within 10 days after the date OEA receives the application, the office will issue the license, deny it, send the application to the next step in the licensing process, or, if you have completed the application improperly or they need additional information, return the application without action. Once you receive the approved license, you should keep the validated license on file. All you submit is the SED; however, all information on the SED must conform with that found in the validated license.
To avoid export control violations and shipping delays, you should contact your local ITA District Office or the Exporter's Service Staff, Office of Export Administration, International Trade Administration for assistance.
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