Page 15 - Akerman | 2016 Guide to Doing Business in Florida

cases, Canada, all exports from the U.S. should undergo a review to determine if they are
subject to an export “license.” An export license is an authorization which allows the export of
particular goods, commodities, or technical information, software, or defense articles.
Depending on the article in question, export authority from the U.S. Department of Commerce
may be sought for dual-use items, or the Department of State, DDTC, for defense articles.
There are additional federal regulatory agencies with jurisdiction over exports that warrant further
review. Two basic types of licenses exist, general licenses and individual validated licenses or
specific licenses.

There are many types of general licenses. These are authorizations which are generally
available and for which it is not necessary to submit a formal application. They cover all exports
which are not subject to a validated license requirement. Most exports can be made under
one of these general classifications.

In contrast, individual validated licenses are required for those items for which the U.S.
specifically controls the export for reasons of national security, foreign policy or short supply. If
the export of a specific product to a specific destination is subject to an individual validated
license requirement, it is necessary to apply for and obtain such a license from the Office of
Export Administration (an office within the U.S. Department of Commerce) prior to the export.
Certain commodities cannot be exported to any country without an individual validated license,
while certain other commodities may require a validated license only for shipment to specified
countries. The export of items with military applications and high technology items are subject
to stringent regulation.

For purposes of the U.S. export control regulations, an export of technical information occurs
when the information is disclosed to a foreign national even if such disclosure occurs in the
U.S. Thus, if disclosure of information is subject to a validated license requirement, the
disclosure may not be made to a foreign national without first obtaining the necessary validated
license, whether or not the disclosure is to occur outside the U.S.

Additionally, the U.S. Department of Treasury, Office of Foreign Assets Control, maintain
sanctions programs for certain countries for all financial transactions.
Finally, with regards to the importation of goods, various U.S. federal agencies have
overlapping jurisdiction for the importation and entry into the U.S. market of products. The U.S.
Customs and Border Protection police U.S. borders and enforce laws of not only Customs
(classification, valuation, country of origin, and other priority trade programs), but also the Food
and Drug Administration, Environmental Protection Agency, the Consumer Product Safety
Commission, and many other federal agencies have jurisdiction to regulate and approve or
license the importation and entry into market over several products.

1.1.7 Foreign Trade Zones
Foreign trade zones are areas in or adjacent to ports of entry which are treated as outside the
customs territory of the U.S. In order to expedite and encourage trade, goods admitted into a
foreign trade zone are generally not subject to the customs laws of the U.S. until the goods are
ready to be imported into the U.S. or exported. These foreign trade zones are isolated,
enclosed and policed areas which contain facilities for the handling, storing, manufacturing,
exhibiting and reshipment of merchandise. Foreign trade zones are created pursuant to the
Foreign Trade Zones Act (19 U.S.C. §§ 81a-u) and are operated as public utilities under the
supervision of the Foreign Trade Zones Board. Under the Foreign Trade Zones Act, the Board

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