BIS license exception

A BIS license exception is a provision in the U.S. Export Administration Regulations (EAR) that lets exporters ship items that would otherwise need an individually approved export license from the Bureau of Industry and Security, provided they meet defined conditions. The exceptions are codified in 15 C.F.R. Part 740 and apply to items on the Commerce Control List (CCL) that BIS regulates for reasons such as national security, foreign policy, anti-terrorism, or short-supply controls.

Each exception has a short code and a narrow scope. Commonly cited ones include:

• LVS (Limited Value Shipments) — small-dollar consignments below a per-item threshold.
• GBS (Shipments to Country Group B) — certain national-security-controlled items to friendly destinations.
• TMP (Temporary Imports, Exports, Reexports) — tools of trade, exhibitions, inspection.
• RPL (Servicing and Replacement of Parts and Equipment).
• GOV (Governments, International Organizations) — including IAEA and ITER shipments.
• TSU (Technology and Software Unrestricted) — operation technology, sales technology, and publicly available software.
• ENC (Encryption Commodities, Software, and Technology) — heavily used by the tech sector for mass-market crypto products.
• STA (Strategic Trade Authorization) — added in 2011 for trusted partners, generally requiring a consignee statement.

Exceptions are not available for all items or destinations. They are typically barred for embargoed countries listed in EAR §746 (e.g., Cuba, Iran, North Korea, Syria, and the Russia/Belarus controls expanded after February 2022), and many are unavailable when the end-user appears on the Entity List or for items controlled for missile technology or chemical/biological weapons reasons. Exporters must self-determine eligibility, cite the exception symbol on shipping documents, and keep records for five years. Misuse can trigger civil penalties under the Export Control Reform Act of 2018 or criminal liability under IEEPA.