HOST: What are the countries where you're not allowed to ship?
Do you always need an export license
to export to an embargoed or sanctioned country?
These are all questions you may have
when exporting your commercial item.
Hello, my name is Clariebel,
and I work for the Bureau of Industry and Security
at the U.S. Department of Commerce.
The following clip is an example
of the type of call our agency often receives from exporters.
I hope that it provides some clarification
about exports to embargoed and sanctioned countries.
Let's get started.
[telephone rings]
COUNSELOR: Hello, this is Douglas with Exporter Counseling speaking.
How may I help you?
CALLER: Hi, Doug. It's Darrell calling again.
I feel like we're getting to be good friends with all of this export control talk!
As you remember, I've classified my product as EAR99
and I'm planning to ship it
under the designation "No License Required."
We spoke about prohibited end-use and end-users
and the importance of screening the transaction.
Now I'd like to learn more
about sanctioned and embargoed countries.
Right now I'm just exporting to the UK,
but that may change as our international business expands.
Our exports are growing, and we're hiring more people.
COUNSELOR: Yes, I remember that we discussed
that, in general, items that are designated as EAR99
can be exported to almost all destinations without a license
under the designation "No License Required," or NLR.
But a license could be required
if your item is going to an embargoed or sanctioned country,
a prohibited end user,
or is intended for a prohibited end use.
CALLER: That's right.
So I'd like to be sure I know the countries where I can't export my EAR99 item.
Can you give me a list of people and places that I should avoid?
COUNSELOR: Well, it's not as simple as a list of countries to avoid
for exporting your commercial item.
While there is a small group of countries
that are under some form of embargo or sanction,
the restrictions imposed under these sanctions
vary for each country.
CALLER: So what are these countries,
and how should I know the restrictions for each one?
COUNSELOR: Well, Cuba, Iran and Northern Sudan
are subject to comprehensive trade embargoes,
meaning virtually all exports require a license to these destinations.
Syria and North Korea, on the other hand, are sanctioned,
and most exports require a license
with limited exceptions relating to food and medicine.
Rwanda and Iraq are subject
to limited arms embargoes
that create license requirements
for certain items
on the Commerce Control List,
such as military parachutes.
CALLER: I can see whether or not a license is needed
depends on the country.
COUNSELOR: Yes, it's important to be aware
that the embargo and sanctions policy for each destination is different.
In some instances, both BIS
and the Treasury Department's Office of Foreign Assets Control--
also referred to as OFAC--
share jurisdiction for administering the embargo or sanction.
CALLER: So exports are limited, but not completely restricted.
COUNSELOR: That's correct.
The export control policies for these countries vary.
In some cases, you can send items to a sanctioned or embargoed country
without a license.
For example, you can send food items to Syria without a license.
In some instances, a license may be approved to these destinations
under limited circumstances
such as commercial communication devices to Cuba.
Part 746 of the Export Administration Regulations
describes Embargoes and Other Special Controls.
If you go to the BIS website again
and click on Export Administration Regulations link,
you will find Part 746.
CALLER: I see.
So if I want to export to one of these countries,
I should read Part 746
to find out if my export can be permitted.
Is that it?
COUNSELOR: And you should also review possible requirements under OFAC--
the Office of Foreign Assets Control
at the Department of Treasury.
OFAC administers and enforces economic and trade sanctions
against targeted foreign countries.
OFAC regulations may apply
in addition to BIS regulations
requiring export licenses for various transactions.
The result can mean that in some situations
you must obtain authorization from both BIS and OFAC
before proceeding with the transaction.
You can get to OFAC's website from the BIS homepage
by going to the "Additional Resources" link.
CALLER: Okay, now I believe I have a better understanding
of embargoes and sanctions and how they impact my exports,
where to look, and more importantly, where to go for assistance,
which in some cases could be both BIS and OFAC!
COUNSELOR: That's right.
When in doubt, please contact us.
CALLER: Thanks for all your help.
So, only a handful of countries have comprehensive restrictions.
The world is my oyster.
HOST: I hope this scenario gives you a better understanding
of sanctions and embargoes
and how this impacts export license requirements
for commercial items.
It's important to be aware that the embargo and sanctions policy
for each destination is different.
In some instances,
both BIS and the Treasury Department's Office of Foreign Assets Control,
also referred to as OFAC,
share jurisdiction for administering the embargo or sanction.
Thank you and have a great day.