Understanding the Purpose of License Types

The Dual-Use Regulation defines four types of licenses for the export and the intra-Union transfer of dual-use items:

• Individual export licenses
• Global export licenses
• National general export licenses
• Union general export licenses

The set of license types provided in delivery Customizing for Germany as a Member State largely corresponds to this structure (SAP Global Trade Services, edition for SAP HANA→Compliance Management→Legal Controls→Licenses→Define Import- and Export License Types).

These license types should be regarded as samples that need adjustment to the legal requirements of the individual Member States. They can however be used as copy templates for customer-specific license types.

License types in SAP GTS thus represent the categories of licenses as defined in the legislation whereas licenses are the individual forms of these categories.

According to the EAR, the classification of an item under an ECCN does not automatically result in a license requirement for export or reexport. Rather, the exporter or reexporter has to check the CCL to find out which of the reasons for control defined in the EAR apply to the ECCN and whether these control regimes are relevant for the country of destination.

In fact, many exports of dual-use items do not require a license (designation No License Required, abbreviated to NLR). In these cases, the exporter has to report a license code in the Electronic Export Information (EEI) certifying that no license is required for the export.

If an export does require a license, the exporter has to check whether a license exception applies. License exceptions are defined in Part 740 of the EAR. A license might not be required, for example, if a shipment of dual-use items does not exceed a specific value (Shipments of Limited Value, abbreviated to LVS). If there is no license exception available for the export, the Bureau of Industry and Security (BIS) may issue a license on application.

Delivery Customizing for the EAR contains four samples for license types that can be used as copy templates. Customer-specific adjustments will be necessary to use the copies for legal control in the United States.