Do you really require an Export license?
Among all the considerations that needs to be taken into account one of the important ones is export control. It is often not the main focus at the early stages of a company, however, the impact it can have on your business can turn out to be a large hurdle especially in the space industry. Items, technology and information shipment or transfer, transmission or disclosure will require a license.
The US Export Control regulations are particularly important, why is that you ask? First, it is known to be among the most restrictive one and, second, it relies on extraterritoriality. This means that it applies to your business, if you use any type of American controlled items and technologies, regardless of the location, it will affect your business. Within the process of starting your own space company, in order to determine if you will require an export license you should consider the following key questions (WHAT, WHERE and TO WHOM) :
- What is being exported?
- Where is my item?
- Where is it going to be exported or disclosed?
- Who will receive it?
- What will be the end-use?
To help you understand how export control regulations applies to your operation, we have created an Export Control Flowchart (ECF). Going through the ECF, you can follow the decision steps below which indicate whether or not you require an export licence.
- Overview of U.S. Export Control System
- US Government Publishing Office
- International Traffic in Arms Regulations (ITAR)
- ITAR – Specially designed decision tool
- EAR- Export Control Classification Interactive Tool
- Commerce Control List Classification
- De minimis & Direct Product Rules Decision Tool
- De minimis Rules and Guidelines
- Strategic Trade Authorization (STA) Interactive Compliance Tool
- Guidance on Reexports
- Red flags and watch lists
- The shortlist of Country groups as defined by the Export Administration Regulations, Bureau of Industry and Security
Posted by Emeline De Antonio