US Export Licence Checklist: The BIS Steps for Exports and Reexports

The US Bureau of Industry and Security (BIS) sets out its licensing logic in 15 CFR Part 732: decide whether the item is subject to the EAR, classify it on the Commerce Control List, read the ECCN against the Country Chart (supplement no. 1 to part 738), work through the ten general prohibitions, and, if a licence is required, check for a License Exception under Part 740 before applying. Part 732 covers reexporters as well as US exporters, so the checklist also applies to US-origin goods held outside the United States. It follows the eCFR text displayed on 1 October 2026.

Start with the five facts BIS asks about

Section 732.1(b) names five types of facts that determine your obligations. Capture them in every transaction file:

1. What is it? Its classification on the Commerce Control List (part 774).
2. Where is it going? The country of ultimate destination.
3. Who will receive it? The end user cannot be a prohibited one (General Prohibition Four).
4. What will they do with it? The end use cannot be prohibited (General Prohibition Five, part 744).
5. What else do they do? Contracting, financing or freight forwarding in support of a proliferation project (§ 744.6) can bar you from dealing with a party.

Part 732 adds that licence requirements depend solely on classification, end use, end user, ultimate destination and the conduct of US persons.

Step group 1: is the item subject to the EAR?

Steps 1 to 6 decide scope. For exports from the United States only Steps 1 and 2 apply. For items already outside the US, such as stock held by a UK distributor, the reexport steps come into play:

If the item is not subject to the EAR, Part 732 says you have no obligations under it. For foreign-made items, the de minimis calculation follows supplement no. 2 to part 734; that supplement is not in this knowledge base, so check the eCFR for the method.

Step group 2: classification and the Country Chart

1. Step 7, classify the item on the CCL using the Order of Review (Supplement No. 4 to Part 774). You may do so without BIS's help; items not on the CCL are EAR99.
2. Step 8, identify the country of ultimate destination.
3. Step 9, match reasons for control to the Country Chart. The ECCN's “License Requirements” section gives the reasons for control and column identifiers; check for an “X” against your destination in each relevant column.

Limits to remember: the Chart does not apply to Cuba, Iran, North Korea and Syria (go to part 746); short supply items are governed by part 754; a small number of ECCNs set their own licence requirements (§ 738.3(a)). For Iraq and Russia, part 746 adds requirements on top of the Chart. Foreign-made items continue to Steps 10 and 11 (de minimis and the foreign-produced direct product rule); US exporters skip them.

Step group 3: the ten general prohibitions

General Prohibitions One to Three are product controls. Four to Ten restrict activities and, unless otherwise stated, apply to all items subject to the EAR, including EAR99:

• Four, Denial Orders: no License Exceptions; only a specific BIS authorisation, which Part 732 describes as rarely granted.
• Five, End-Use End-User: the licence requirements of part 744.
• Six, Embargo: Cuba, Iran, Iraq, North Korea, Syria, plus the Russia/Belarus and Ukraine-region measures in part 746.
• Seven, US Person Proliferation Activity: Part 732 states that all US persons are subject to it; the definition of “US person” is in § 772.1, which this knowledge base does not reproduce.
• Eight, In-Transit: for shippers and carriers.
• Nine, Orders, Terms and Conditions: every condition on a licence or exception must be met.
• Ten, Knowledge Violation to Occur: you may not proceed knowing a violation has occurred or is about to occur.

Step 19 closes the review. For a reexport or export from abroad, if none of the ten applies, no licence is required and you can skip the remaining steps. If one or more applies, continue.

Step group 4: License Exceptions, or a licence application

A License Exception (§ 740.1(a)) authorises an export or reexport, under stated conditions, of items that would otherwise need a licence under General Prohibitions One, Two, Three or Eight, or under the embargo rules of part 746. Note that § 732.4(a) lists Eight among the prohibitions without License Exceptions, so check the current text if in-transit rules are relevant. Exceptions bear three-letter symbols, and using one certifies that all its conditions are met.

1. Step 21: check the restrictions on all exceptions in § 740.2; if one applies, obtain a licence or do not proceed.
2. Step 22: review the exceptions, broadest first. Part 740 authorises reexports only where each exception expressly says so, and License Exception APR authorises reexports only.
3. Step 23: check country-group and short supply limits.
4. Step 24: meet every term and condition.
5. Step 25: with no exception available, obtain a licence or refrain.
6. Step 26: review part 748 before applying.

Step group 5: filing, documents and records

• Step 27, EEI in AES: for exports from the US, report the licence code, licence number, item description and ECCN where required. Part 732 notes that reexporters and firms exporting from abroad may skip Steps 27 to 29.
• Step 28, Destination Control Statement: required for US exports of CCL items; DCS requirements do not apply to reexports.
• Step 29, records: five years under part 762. Part 762 itself covers known reexports of items exported from the US and anyone, in the US or abroad, required to keep records under the EAR, so keep your file even when Steps 27 to 29 are skipped.

If you get stuck on a step, the US export basics knowledge base can answer questions such as “Which general prohibitions can a License Exception cover?” or “Once I know my ECCN, how do I check the destination?”, citing Part 732 and Part 740.

This checklist summarises US regulations and is not legal advice; UK export controls are not covered by this knowledge base. Always read the current 15 CFR Part 732 and the specific ECCN. The knowledge base links each answer to its source text.