Export controls
The United States has a detailed system of export controls intended to protect scarce
RESOURCES, further U.S. foreign policy, and enhance national security. The controls are contained in the Export Administration Act (2001) as implemented by a host of regulations. Broadly speaking, all exports from the United States are controlled under two categories, those permitted with or without a license. These categories reflect country of destination and product-type analyses. The first step in ascertaining whether a license is needed is to examine the “Country Control List.” This list specifies which destination countries are license-free and which are not. For example, Libya, Iraq, Iran, Cuba, and North Korea are countries for which an export license is often required. Canada, Mexico, France, South Africa, and Japan are not ordinarily on the Country Control List. The second step is to examine the “Commerce Control List” to ascertain which products require a license for
EXPORTING. Supercomputers and military goods will almost always require licenses. Personal computers and most consumer goods will not. If a U.S. export is not on the Commerce Control List and the country of destination is not subject to licensing, the goods may be freely shipped subject to completion of a Shipper’s Export Declaration form. If the country or the
PRODUCT (or both) is on a control list, then a license from the U.S. Bureau of Export Administration is required. Obtaining such a license takes considerable time and expense. Violations of the Export Administration Act can incur very large company fines and penalties. Individual violators can be sentenced criminally. In extreme cases, the right of U.S. businesses to export can even be revoked. These sanctions are severe.