Dutycalc Data Systems was founded in 1988 as a software and consulting company that designs, develops and implements management support systems for the import, export and brokerage communities. Our primary area of focus is Duty Drawback and the implementation of our fully automated Drawback System.
Monday, 29 November 2021 / Published in Drawback, drawback service, drawback software, export tax
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The export business can be tricky because some products require you to have an export license and some do not. Export compliance is a monster in itself but you must know the rules and regulations if you plan on keeping your export business afloat. Today we are going to highlight some of the main things you have to know regarding an export license.
To begin, understand that in most cases you will not need an export license. About 95 percent of all items exported from the U.S. do not require an export license. Only a small percentage of all U.S. export transactions require licenses from the government. That being said just because your product might be among the 95 percent that does not require a license that does not mean that you can sell in anywhere and to anyone. It is up to you, the exporter to determine whether the product requires a license and to research the end use of the product. You must perform your due diligence regarding every product and every transaction.
On the flip side, there are some products that do require an export license and are subject to the Export Administration Regulations (EAR) administered by the Bureau of Industry and Security (BIS). The first step is knowing your item’s Export Control Classification Number (ECCN). These are found on the Commerce Control List (CCL) and identify reasons for control which indicate licensing requirements to certain destinations. If you find out that your product does require an export license you can apply for one through the Simplified Network Application Process Redesign. There is no fee associated with submitting a license application or a commodity classification request to BIS.
There is a lot to understand before doing business overseas so take the time to learn it all before deciding to enter the industry. For any questions regarding the import and export industry please reach out to us here at Duty Calc, we are here to help!