License and Exception Determination Process

The following is a summary of the major steps indicated in the Export Administration Regulations (EAR) §732 to determine the licenses and available exceptions:

1. Applicability of General Prohibitions One, Two, or Three. Determines whether any of these prohibitions apply. If any prohibitions apply, then review the License Exceptions in §740 of the EAR to consider if a license is required.
2. Applicability of General Prohibitions Four to Ten:
   1. Applicability of General Prohibitions Four, Seven, Eight, Nine or Ten: If the export or reexport is subject to any of these prohibitions, there are no License Exceptions.
   2. Applicability of General Prohibitions Five (End-Use End-User): Determines whether the prohibition applies to:
      • Ineligible Entities. A list of entities is included in Supplement No. 4 to this part 744 of the EAR (Entity List). These entities are ineligible to receive any items subject to the EAR without a license to the extent specified in the supplement.
        • Applicability of License Exceptions. No License Exceptions are available for exports and reexports to listed entities of specified items, except License Exceptions for items listed in §740.2(a)(5) of the EAR destined to specific entities.
   3. Applicability of General Prohibitions Six: If the export or reexport is subject to General Prohibition Six (embargoes), consult part 746 of the EAR for applicable License Exceptions.
3. Applicability of License Exceptions for General Prohibitions One, Two, or Three: If no general prohibition Four to Ten applies to the export or reexport, then review the License Exceptions in §740 of the EAR.
   1. Applicability of Restriction on Exception. If any License Exception is applicable, determine whether any of the restrictions in §740.2 of the EAR applies to the export or reexport.
      • If any of these restrictions apply, there are no License Exceptions available, and either a license should be obtained or the exporter must refrain from the export or reexport.
      • If none of the restrictions in §740.2 of the EAR apply, then review each of the License Exceptions to determine whether any apply.

The following graphic depicts the Export Control Decision Tree as indicated in the EAR §732 that supports the previous License and Exception Determination steps: