How to Export Products from the US: A Legal Guide

Exporting from the US comes down to three legal questions: what you are shipping, where it is going, and who is receiving it. Get those right and the rest is logistics. Get them wrong and you risk seized shipments, denied-party liability, and civil or criminal penalties. This guide walks the compliance steps every US exporter should run before a product leaves the country.

Most exports are straightforward. According to USA.gov, only about 5% of US exports actually require a special export license — roughly 95% of goods ship without one. The work is proving your shipment is in that 95%, and documenting it.

The export process at a glance

Step 1: Classify your product

Classification is the foundation of every export decision. The first question is jurisdiction. Items built specifically for military use sit on the U.S. Munitions List (USML) and are controlled by the State Department’s Directorate of Defense Trade Controls (DDTC) under the International Traffic in Arms Regulations (ITAR). Commercial and “dual-use” items — goods with both civilian and potential military or proliferation applications — fall under the Commerce Department’s Bureau of Industry and Security (BIS) and the Export Administration Regulations (EAR).

Under the EAR, your item either matches an Export Control Classification Number (ECCN) on the Commerce Control List or it does not. ECCNs are five-character codes (for example, 3A001) organized into ten categories covering electronics, computers, telecommunications, lasers, and more. If no ECCN describes your item, it is designated EAR99 — a catch-all for most everyday commercial goods. EAR99 items generally ship without a license, but not always: an EAR99 product still cannot go to an embargoed country, a restricted party, or a prohibited end use.

If you are unsure whether an item is ITAR or EAR, you can file a Commodity Jurisdiction request with DDTC for a formal answer. For a deeper walkthrough of assigning codes, see our step-by-step guide to classifying your goods for export.

Step 2: Screen the destination and the parties

Classification tells you what you have; screening tells you whether you can ship it where you want. Three checks matter:

• Destination. BIS publishes a Commerce Country Chart. Cross-reference your ECCN’s reasons for control (national security, anti-terrorism, and so on) against the destination country to see whether a license is required.
• Parties. Screen the buyer, the freight forwarder, and any intermediary against restricted-party lists — including the BIS Entity List and the Treasury Department’s Office of Foreign Assets Control (OFAC) list of Specially Designated Nationals. Dealing with a listed party can trigger liability even for an otherwise license-free item.
• End use and end user. A benign product can still require a license, or be prohibited outright, if it is headed for a weapons program, a military end user in certain countries, or another controlled use.

Step 3: File your Electronic Export Information

For most commercial shipments, you must file Electronic Export Information (EEI) through the Automated Export System (AES), which runs inside Customs and Border Protection’s Automated Commercial Environment (ACE). The standard trigger is value: if goods classified under a single Schedule B number, shipped from one exporter to one buyer, exceed $2,500, EEI filing is generally required. A successful filing returns an Internal Transaction Number (ITN) that travels with your shipment.

Lower-value shipments below that threshold are often exempt — but the threshold drops to zero whenever the item requires a license, regardless of value. When in doubt, file.

Step 4: Get your documents right

Even a license-free export needs clean paperwork to clear foreign customs. Core documents usually include a commercial invoice, a packing list, a bill of lading or air waybill, and — depending on the market — a certificate of origin. Two document categories deserve their own attention because the rules come from the destination country, not the US:

• Country-of-origin marking. How and where you mark origin is set by the importing country. See country-of-origin marking rules for exporters.
• Product certification. Many markets require conformity marks or testing before goods can be sold. See product certification for exporters.

Common mistakes

The errors that cause the most trouble are predictable: assuming “EAR99” means “no rules,” skipping party screening because the buyer “seems fine,” missing an AES filing, and overlooking that releasing technical data to a foreign national at home can itself be an export — a deemed export. A short compliance routine, applied every time, prevents nearly all of them.

FAQ

Do I need an export license to ship from the US? Usually not — roughly 95% of US exports ship license-free. You need a license mainly when your item is controlled for its destination, the buyer is a restricted party, or the end use is prohibited.

What is the difference between ITAR and EAR? ITAR (administered by the State Department’s DDTC) controls defense articles on the U.S. Munitions List. The EAR (administered by Commerce’s BIS) controls commercial and dual-use items on the Commerce Control List.

When do I have to file Electronic Export Information? Generally when goods under one Schedule B number exceed $2,500, or whenever the shipment requires a license at any value. Filing is done through AES in ACE.

What happens if I get export compliance wrong? Consequences range from held or seized shipments to substantial civil penalties and, in serious cases, criminal charges. Classification and screening are the controls that keep you out of that territory.

Exporting from the US? Reidel Law Firm prepares flat-fee Import/Export Compliance Memos covering product classification, licensing and screening review, and documentation — with direct access to the trade attorney handling your matter. Request a compliance memo →