What Are License Exceptions?
License exceptions are regulatory provisions that authorize exports that would otherwise require a license, provided specific conditions are met. They are found in Part 740 of the EAR. Using a license exception instead of obtaining a license offers faster processing, lower administrative burden, and greater operational flexibility.
However, license exceptions are not blanket authorizations. Each exception has specific eligibility criteria, conditions, and limitations that must be strictly observed. Misuse of a license exception is a violation of the EAR.
Key License Exceptions
License Exception TMP (§740.9) authorizes temporary exports and reexports of items for servicing, exhibitions, demonstrations, and testing, subject to return within specified timeframes. License Exception STA (§740.20) authorizes exports to Country Group A:5 destinations for certain ECCNs, subject to end-user and end-use conditions. License Exception GOV (§740.11) authorizes exports for government agencies and personnel. License Exception ENC (§740.17) covers encryption items.
Other frequently used exceptions include RPL (servicing and replacement of parts and equipment), BAG (baggage, personal effects), TSR (technology and software under restriction), and APR (additional permissive reexports).
Using License Exceptions Correctly
Before claiming a license exception, verify that your item's ECCN allows that specific exception — not all exceptions are available for all ECCNs. The ECCN entry on the CCL lists available license exceptions. Also verify that your specific transaction meets all conditions of the exception, including destination restrictions, end-user limitations, and any reporting or notification requirements.
Maintain records documenting your eligibility analysis for each license exception use. This documentation should show which exception was claimed, why the item and transaction qualified, and any required notifications or reports.