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.