Using a license at the port

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1. Any port, unless the license says otherwise

Under the Export Administration Regulations (EAR), a license from the Bureau of Industry and Security (BIS) authorizes exports from any U.S. port of export unless the license states otherwise (15 CFR 758.4(a)). Items that leave at one port, cross adjacent foreign territory and reenter the United States at another port before going abroad are treated as exported from the last U.S. port.

2. Shipments against an expiring license

An item needing a license that has not left the final U.S. port of export by midnight of the license expiration date may not be exported under that license, with two exceptions (15 CFR 758.4(b)). One is an extension granted by BIS (15 CFR 758.4(b)(1)). The other covers items that, before midnight on the expiration date, were laden aboard the vessel (15 CFR 758.4(b)(2)(i)).

The second exception also covers items on a pier ready for loading, not for storage, and booked for a vessel at the pier ready for loading (15 CFR 758.4(b)(2)(ii)). It also covers items whose vessel was expected at the pier for loading before expiry but was delayed by exceptional and unforeseen circumstances (15 CFR 758.4(b)(2)(iii)). In that case BIS or the U.S. Customs Service must judge that requiring a license extension would cause undue hardship.

3. Reshipping undelivered items

Carrier failures have a remedy (15 CFR 758.4(c)). If the consignee does not receive a licensed export because the carrier failed to deliver it, the exporter may reship the same or an identical item. It goes to the same consignee and destination under the same license, within its quantity and value limits (15 CFR 758.4(c)). Reshipment to anyone else is a new export that needs a new license. Before reshipping, the exporter sends BIS’s Operations Division satisfactory evidence of the original export and the delivery failure, with an explanation.

4. Why documents must conform

The conformity rules aim to prevent licensed items from being diverted in transit or afterward (15 CFR 758.5(a)). They also set the duties of the parties when items are unloaded in a country other than that of the ultimate consignee or end user on the license. When BIS issues a license, related export control documents, such as the Electronic Export Information filing, the bill of lading or the air waybill, must be consistent with it (15 CFR 758.5(b)).

5. Bills of lading and ports of unloading

Bills of lading and air waybills must point to the right country (15 CFR 758.5(c)(1)). No one may issue one providing for delivery of licensed items to a foreign port outside the country of an intermediate consignee, ultimate consignee or end user named on the license and the filing (15 CFR 758.5(c)(1)). Optional ports of unloading for licensed items are allowed only if all of them are in the country of ultimate destination or are included on the license and the filing (15 CFR 758.5(c)(2)(i)). For items needing no license, optional ports may be named if they are in countries to which the items could also go without a license (15 CFR 758.5(c)(2)(ii)).

No one may deliver items to a country other than that of an intermediate consignee, ultimate consignee or end user named on the BIS license and EEI filing without prior written BIS authorization (15 CFR 758.5(d)). The exception is reasons beyond the carrier’s control, such as acts of God, perils of the sea, damage to the carrier, strikes, war, political disturbances or insurrection.

6. Unscheduled unloading

If items are unloaded in a country to which they could go without a license, no notice to BIS is needed (15 CFR 758.5(e)(1)). Anyone disposing of them must still comply with any license exception and the rest of the EAR. If a license would be needed for that country, no one may deliver the items or enter them into its commerce without prior written BIS approval (15 CFR 758.5(e)(2)(i)). The carrier may have to place them in custody, under bond or another guaranty.

The carrier tells the exporter and BIS in time for the exporter to report within 10 days of the unscheduled unloading. The exporter’s report, by mail, fax or email, includes the manifest of the diverted cargo, the place of unloading and why it was necessary. It also proposes a disposition of the items and asks BIS to authorize it (15 CFR 758.5(e)(2)(i)). Reports go to BIS’s Office of Exporter Services (15 CFR 758.5(e)(2)(ii)).

7. The destination control statement

When Commerce Control List items are shipped in tangible form, the exporter must include a destination control statement as an integral part of the commercial invoice (15 CFR 758.6(a)). That does not apply to shipments under License Exception BAG for baggage or GFT for gift parcels, or to EAR99 items. The required statement says the items are controlled by the U.S. Government and authorized for export only to the country of ultimate destination, for the identified ultimate consignee or end users (15 CFR 758.6(a)(1)).

It goes on to say that the items may not be resold, transferred or disposed of to any other country, or to any person other than the authorized ultimate consignee or end users. That applies to the items in original form or incorporated into other items, unless U.S. approval or other authorization under U.S. law is obtained. A note defines the country of ultimate destination as the country named on the commercial invoice where the ultimate consignee or end user will receive the items as an export (15 CFR 758.6, note 2 to paragraph (a)). The other notes explain that authorized includes NLR (no license required) designations, and that the reference to other authorization reflects license exceptions, NLR and the de minimis rules (15 CFR 758.6, notes 1 and 3 to paragraph (a)).

The invoice also shows the Export Control Classification Number (ECCN) for any 9x515 or 600 series items (15 CFR 758.6(a)(2)). The same applies to the listed 3A090 and 4A090 items and to the .z items in the listed ECCNs (15 CFR 758.6(a)(2)). For the ECCNs with a .z paragraph, the requirement applies only to commodities under that paragraph. Items under 3A090 are identified as .a, .b or .c. Filing requirements are covered in when EEI filing is required.

Key terms

Port of export	The U.S. port from which items finally leave.
Expiring license rule	The midnight deadline for departure under a license.
Conformity of documents	The rule that export documents match the license.
Unscheduled unloading	Unloading in a country other than that of the ultimate consignee or end user on the license.
Destination control statement	The required statement on the commercial invoice.

Every statement above links to the document behind it. The full source list for this piece is on the sources page.

This page describes public United States government programs for general information. It is not legal, regulatory or procurement advice, and it does not address the facts of any particular case.

How Sentfore supports this

Port timing decides whether a licensed shipment leaves on schedule. Sentfore works at the delivery end of defense programs in difficult environments, providing secure movement, protective security, facilities and life support. Requirements can be sent through the contact page.