Exports are goods or services produced in one country and sold in another country in exchange for goods and services, foreign exchange or settlement of debt. Maintaining compliance when exporting requires an understanding of all regulations in every country in which a company does business, as well as making sure that compliance does not slow down the good of movements.
How to determine if a commerce export license is needed?
License requirements are dependent upon an item's technical characteristics, the destination, the end-user, and the end-use. The exporter must determine whether the export requires a license or not before the movement of goods or exchange of services takes place. When making the determination if a license is needed, an exporter should consider the following:
- What is being exported?
- Where is it being exported to?
- Who will receive the item or service that is being exported?
- What will be the main use of the item?
Five Processes to Remember when Exporting:
Exporting goods and services can be a complex matter depending on the number of goods, the destination country, and the regulations that must be met. When exporting, there are five main processes every exporter should remember. These are listed below and a full version of this can be found on the Export Compliance tip sheet.
- Perform denied party screening before money changes hands
- Obtain an End Use Certificate
- Apply for an export license and file export declaration in a timely manner
- Utilize Incoterms
- Know the required documents
|
