export license

Definition

An export license is a government-issued permission slip that allows a business to legally sell or ship certain goods, technology, or services to buyers in other countries. The U.S. government requires these licenses to control the flow of sensitive products that could affect national security, foreign policy, or the economy. Not every product needs one, but when one is required, you must have it in hand before the shipment leaves the country.

Example

If your company manufactures specialized encryption software and a customer in Germany wants to buy it, the U.S. government may require you to obtain an export license before you can legally send that software overseas.

Watch Out

Shipping goods without a required export license can result in serious federal criminal charges, heavy fines, and a ban from doing international business, so always check the rules before you ship anything abroad.

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This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.