Export License Management Software

Since the start of 2016, Fabrication Project Management has been a leader in the field of Export License Management Software. We take pride in offering innovative solutions to all manner of export licensing requirements. Our software offers thorough and robust management and control capabilities, enabling businesses to easily organize data pertaining to their customers and sellers, products and services sold in support of import/export compliance efforts.

In this guide, we review the aspects of Export License Management Software, software license management software, what license do i need to export, and what is export licensing.

Export License Management Software

When you sell goods or services overseas, you have to follow U.S. government regulations on exports and imports. For example, if you’re exporting a product out of the United States, it has to be manufactured according to certain safety standards that differ from those in place at home. If the item is being resold or used as part of another product that’s ultimately exported outside the U.S., there may be additional regulations to consider. For example:

Has your company considered exporting goods or services? If so, here are some things you should know about this complex subject before embarking on an export project:

What Is Export License Management Software?

Export license management software is a program that helps companies manage their export license compliance. It’s used to track, manage and visualize export licenses in one location. This gives you access to all the information you need in one place so that you can better understand your exports and your risk of non-compliance.

Who Needs Export License Management Software?

Whether you’re a manufacturer, distributor, or international shipper, if your company is exporting goods or services to foreign countries then you need export license management software.

Export License Management Software helps companies stay in compliance with United States export regulations. With the help of this software, companies can easily and accurately track their export licenses and identify any gaps in coverage as well as plan for future exports so that they are never caught off guard by surprise requirements from the U.S. Department of Commerce, U.S. Customs & Border Protection (CBP), or U.S./International Harmonized Tariff Schedule (HTS).

Export License Management Features

Export license management software helps you stay compliant with government regulations. The software can help you track licenses, renewals, and expirations so that you are always up-to-date on all licensing requirements. You can use it to search for license information and determine if your products have the correct licenses for export to another country.

Common Export License Management Integrations

Export license management software is a versatile tool that can be integrated with a wide range of other applications. Some of the most common integrations involve:

  • E-commerce platforms, such as Magento and Shopify
  • Accounting software, like Quickbooks or Sage Intacct
  • Shipping management systems, such as FedEx Airbill or UPS Worldship

Benefits of using export license management software

  • Reduce the time spent on export license management: With export license management software, you can automate all of the tasks that go into obtaining and managing your export licenses. This reduces the amount of time you have to spend manually processing orders and makes sure that they’re done correctly every time.
  • Reduce risk of missing a deadline: If your business needs an export license, there are certain deadlines by which they must be applied for in order to avoid penalties or fines from government agencies like U.S Customs and Border Protection (CBP). Export licensing software helps you keep track of these deadlines so that you never miss them again!

Navigating the transition to a paperless system

Whether you’re looking to start your own export management program, or if you’re in the process of moving to a paperless system, there are several important considerations that should be taken into account.

  • What is a paperless system?

A paperless system is any software program used by an organization and its employees to manage information. This can include not only export license data but also other relevant documents such as invoices, purchase orders and shipping notices for example.

  • How do I implement a paperless system?

To ensure that your company has made the transition from manual processes to digital ones smoothly, it’s crucial that every member of staff understands how they fit into this new workflow. You should create detailed training materials which will help them navigate their role within this new environment without having to rely on others’ knowledge of how things work.

Export license management software makes managing your compliance with U.S. government regulations much easier.

Export license management software helps you manage your compliance with U.S. government regulations, making it easier to track your progress through each step of the export licensing process and get help from your team when needed.

If you’re new to exporting and are having trouble keeping up with all of the required procedures and paperwork, export license management software may be able to help you out by providing an easy way for everyone involved in the process (from buyers and sellers, to executives) to stay on top of their commitments at every stage in the process.

software license management software

Software licensing management is the process of tracking and documenting software used in a company. This licensing process allows software vendors to track, evaluate and guarantee how software is being handled and to boost revenue by assuring that users are using licenses appropriately and on the correct terms. Software licensing management is often part of a larger software asset management (SAM) strategy.

There are a wide variety of licensing options on the market today. Your software license management strategy will largely depend on the type of licenses being used. From hardware keys to software licenses, cloud licensing and hybrid solutions, each type requires its own analysis and system in place.

Every piece of software, no matter what it is, comes with a license. The license states what can and can’t be done with said software, under what conditions it can be used, who can use it, for how long, and more. Abiding to each license is essential. Tracking license use according to user or service, maintaining registration fees, complying with licensing terms, and most importantly: determining relevance for each license is critical to remaining efficient and not wasting company cash.

In order to accurately track and understand software license use, companies turn to software license management (SLM). The licensing process is important both for software developers and sellers as well as the companies who use them.

The History of Software License Management

License management dates back to the 1980s when floating licenses became popular. Originally, companies would buy licenses that could only be used on one computer. This was frustrating and often not practical, as companies weren’t interested in buying multiple (very expensive) licenses. Commercial management systems allowed customers to be able to use licenses on multiple machines (and sellers to track how the licenses were being used, albeit not as easy as today!).

In the 1990s various companies joined the software licensing management solution game, centered largely around hardware dongles. ISVs (Independent Software Vendors) started using and understanding the importance of software licensing management during this time. Throughout the decade, license management became more complex and sophisticated, allowing companies to adjust and refine as necessary and as per product type.

Today, a wide variety of license types are available, allowing companies to increase revenue and customer satisfaction and become more efficient in their work and gain business insights. Hardware dongles are becoming less and less relevant while cloud is becoming the go-to word in the tech and software industry. This is part of the reason why a software license management process is critical for enterprises.

Today, software vendors and users understand that software licensing management solutions boost business and are a vital part of success.

Benefits of Software License Management

Any software creator, from startup to large enterprise, must adopt a software licensing management system in order to ensure that their software is being used how and where it is intended to be. Software users must adopt license management practices in order to maximize software use and to make sure they are abiding by the terms and conditions of each license.

The benefits are vast and the consequences are dire if the proper software license management system isn’t set up.

Reduce costs, increase profits

Most companies have a wide range of software and licenses in use every day. But, do you really know what is being used, when, why, and by whom? A license management system allows companies to have a clear view and understanding of the licenses and entitlements that they own and how they are being used within the company.

Using software license management software, companies are able to understand where resources are being wasted, therefore wasting company cash. Companies may discover that certain licenses aren’t being used at all, being used improperly or by the wrong people or only certain aspects of a license are being used! Software licensing management tools allow for reallocation, if relevant, to other team members or reevaluation of certain parts of a license agreement, thereby reducing costs and ultimately increasing profits.

Software Compliance

Software license management helps companies make sure they are complying with license agreements. With so much software being used across large companies, it is critical to make sure that all users are using the software as intended and as allowed by the software vendor. In the case of a software audit, this information can keep companies safe from non-compliance issues including fines and threats.

Consequences of Bad License Management

Bad license management can have detrimental effects on a company. Besides losing money and resources by improperly managing software licenses, the biggest risk of not properly managing your licenses is the legal risk of breaking license contracts.

Each software license comes with an end-user license agreement (EULA). If a company is subject to software audit, misuse may expose them to potential fines of thousands or millions of dollars.

This is the main reason that software license management tools are essential for any business of any size. By doing internal audits regularly, any software misuse can be detected on time and remedied properly.

Software License Management Best Practices

In order to get the most out of your licensing software, we’ve gathered some of the license management best practices.

Software License Management Solutions

Software licensing management solutions are the ultimate way for any business, from a small start-up to a global enterprise to track and optimize software use. In order to do this process efficiently and correctly, the proper software is critical.

Sentinel RMS gives software and technology vendors control over, and insight into, how their applications are used. RMS offers enterprise-grade on-premises software license enforcement and cloud-connected benefits.

With the right tools in place, every step of the software license management process can be easily automated in a transparent and end-user-friendly way. The adoption of an SLM system enables companies to automate time-consuming, manual tasks, eliminate human error and ensure they comply fully with their EULAs

what license do i need to export

The U.S. government regulates the goods being exported from the country. This is why they require that shippers of certain goods obtain export licenses. In this article, we talk about export licenses, what it is, and how to know if you require one.

What is an export license?

An export license is a document that states that the holder of the license has been approved to export a certain quantity of goods from their country. It’s different from an import license, which allows you to bring those same types of goods into your own country.

Export licenses are important because they keep track of how much stuff is moving out of a country and make sure governments know where it’s going and who is sending/receiving it. This helps them regulate trade between countries effectively.

Types of export license

Open Licenses (General)

Here, there are no restrictions on the number of items exported or exact dollar values. However, a specific commodity identifier must be used in order to avoid having to fill out another license later when an import license is required for one of the imported products.

Specific Licenses (Single)

This license only allows the export of specific types of items, so there is less risk in mislabeling them according to federal regulations.

Individual Validated License (IVL)

This is an export license for multiple exports of either low or high-tech defense articles to “close allies” over a 6-month period. The exporter must go through an extensive approval process before it can be issued, so there’s more risk involved with mislabeling according to federal regulations.

Multilateral Validated License (MVL)

This is an export license for multiple exports to “immediate threats” over a 6-month period.

Who needs an export license?

Export licensing distinguishes between the different types of exports; for example: civilian or military. There are some products that would not typically require an export license when being shipped domestically, but when they are being sent across international borders then they become subject to restrictions by that country’s government regarding the type of product being exported.

Export licenses are needed by any business or company that exports goods produced in the U.S. They are also necessary when one country’s government has signed onto an international agreement with another nation that requires them to obtain specific documentation before sending out military products.

Countries usually have these requirements because they want to know more about what types of products and technologies other countries possess and if they can pose a threat if those same items end up falling into the wrong hands (e.g., terrorists).

Sometimes, multiple licenses may need to be filled out depending on how much information is requested from the exporting country. In many places, including the USA, only two kinds of people require an export license: Organizations with military ties and individuals who want to sell things internationally as part of their jobs (army contractors).

The arms industry follows pretty strict guidelines on who can buy what weapons around the world to try and prevent conflict escalation between countries. They do this by restricting arms sales to “end-user” counties (countries where they will actually be used). This way it’s very easy to see which countries are arming themselves with which types of weapons and how much they’re spending.

Export licenses are also required if you work for an organization that’s developing weapon systems. This is because many weapons fall under International Trafficking in Arms Regulations (ITAR), which is a set of rules and restrictions created by the government about exporting military technology and sensitive information. These include:

What are dual-use items?

Dual-use items are products with both commercial and military applications. When creating an export license, the goods may be listed as dual-use items. This means that there is no guarantee about how it will be used outside of your country.

There are always license requirements to send defense articles out of the country, even temporarily (to another US city for repairs). If you do need to send them, they should be sent through either the Department of State or the Department of Commerce, depending on what it is.

If you’re interested in exporting items that are not controlled by ITAR, you should check with your local Bureau of Industry and Security (BIS) to see if there’s anything else you would need an export license for (individuals will also need an Export Control Classification Number (ECCN)). Some non-ITAR items include:

What is an ECCN?

An ECCN is a 5 digit number that the Department of Commerce gives to goods and technology that it wants to control. An ECCN will list what types of goods or technologies it applies to and may also tell you about country restrictions, such as whether it’s allowed out of the US without an export license.

How to find your ECCN

If you have an Export Control Classification Number (ECCN), there are many places you can go online to look up your specific classification. The best place for this information is through BIS because they’re updated regularly. If you want something more comprehensive, check out the Department of State website.

To find your number, first, visit www.bis.doc.gov, then click on the “ECCN Search” button in the middle of the page. You can also try http://www.export.gov/FAR for more detailed information about your product and if you need an export license to move it internationally.

How to apply for an export license

A license can be applied for online through BIS, or you can file a paper application. The advantage to a paper application is that it allows you to explain why your item needs to leave the country and how it will be used by the end-user. A paper application may allow you to have more control over shipping dates/destinations, but this varies from case to case.

All forms are fillable PDFs, so they’re very easy to complete on your computer. If you do need help understanding some of the questions, check out http://www.bis.doc.gov/index.php/forms for more information about each form type and what items they apply to.

what is export licensing

Under the export regulations, exports are both actual shipments of a commodity out of the country and so-called “deemed exports.” A deemed export is the transfer, release or disclosure to foreign persons in the United States of “technical data” (a term used by the International Traffic in Arms Regulations (ITAR)) or “technology” (a term used by the Export Administration Regulations (EAR)) about controlled commodities. A deemed export is considered to be an export to the home country of the foreign person. Accordingly, for all controlled commodities, a license or license exception is required prior to the transfer of “technology” or “technical data” about the controlled commodity to foreign persons inside the U.S.

See the UC Export Control Policy for more detailed information and links to the regulations.

You can be. The export control regulations provide that both the institution and the individual can be held liable. Note that these regulations apply to you in all circumstances, regardless of whether the activity is conducted as part of your University responsibilities.

The Arms Export Controls Act (AECA) and the International Traffic in Arms Regulations (ITAR) provide that willful violations of the defense controls can be fined up to $1,000,000 per violation, or ten years of imprisonment, or both. In addition, the Secretary of State may assess civil penalties, which may not exceed $500,000 per violation. The civil penalties may be imposed either in addition to, or in lieu of, any other liability or penalty.

Similar to the ITAR, violations of the Export Administration Regulations (EAR) are subject to both criminal and administrative penalties. Fines for export violations, including anti-boycott violations, can reach up to $1,000,000 per violation in criminal cases, and $250,000 per violation in most administrative cases. In addition, criminal violators may be sentenced to prison time up to 20 years and administrative penalties may include the denial of export privileges.

For violations under the Office of Foreign Assets Control, potential penalties vary depending on the country and material involved. An exporter may be subject to a maximum civil penalty of $250,000 per violation under the regulations.

In all of the above cases, voluntary self-disclosures, if made appropriately, can mitigate the seriousness of the penalty. Penalties apply to each individual violation, which means that if a violation relates to more than one controlled material or item, or occurs on more than one occasion, each item or incident may trigger a penalty. Contact your campus local Export Control Officer(s) immediately if you think you have made a mistake and violated export controls; they can help assess how best to remedy the situation.

C. When would an export control license be required for a foreign national to participate in University activities?

There are three principal exclusions from the export regulations:

Thus, generally speaking, the export control regulations permit U.S. universities to allow foreign nationals (e.g., students, faculty, academic appointees, and non-employee participants in University programs) to participate in fundamental research projects without securing a license, provided there are no controls on publication or access restrictions. We may also share with foreign nationals in the U.S. or abroad ” ‘technology’ or ‘software’ that arises during, or results from, fundamental research and is intended to be published.” This carve-out is known as the Fundamental Research Exclusion, or the FRE. The export control regulations also permit U.S. universities to release information by instruction (see 2 above), also without securing a license.

However, it is important to note that even in the conduct of fundamental research and instruction, an export control license may be required if the project involves a Non-Disclosure Agreement (NDA) covering the exchange of export-controlled information, access to export-controlled technology, a non-research function (e.g., a service agreement) where there is access to export-controlled technology, or access to ITAR-controlled equipment.

The University maintains an open fundamental research environment by observing the freedom to publish and disseminate research results and practicing nondiscrimination and open access to University classrooms, libraries, laboratories, and specialized research facilities, without regard to citizenship. In order to maintain the FRE, the University may not accept such restrictions in a research award, and in addition, no University employee can consent (in a written or verbal side agreement or arrangement) or otherwise engage in behavior that restricts publication or the participation of foreign nationals.

Note that even in the conduct of fundamental research, an export control license may be required if the project involves: an NDA covering the exchange of export-controlled information, access to export-controlled technology, a non-research function (e.g., a service agreement) where there is access to export-controlled technology, or access to ITAR-controlled equipment.

[The Bureau of Industry and Security within the Department of Commerce provides additional information on fundamental research in their FAQs.]

These phrases refer to technical information beyond general and basic marketing materials about a controlled commodity. They do not refer to the controlled equipment/commodity itself, or to the type of information contained in publicly available user manuals. Rather, broadly speaking, the terms “technology” and “technical data” mean specificinformation necessary for the development, production, or use of a commodity, and usually takes the form of blueprints, drawings, photographs, plans, diagrams, models, formulae, tables, engineering specifications, and documentation. The U.S. government regulates the transfer of technology or technical data to foreign nationals in the U.S. (i.e., a deemed export). You may need a license prior to sharing export-controlled technology or technical data.

See the UC Export Control Policy for more detailed information and links to the regulations.

Generally, technology or technical data that is publicly available does not require a license to export. Such technology may become publicly available through three ways:

Information is “published” when it becomes generally accessible to the interested public in any form, including: (1) publication in periodicals, books, print, electronic, or other media available for general distribution (including websites that provide free uncontrolled access) or to a community of persons interested in the subject matter, such as those in a scientific or engineering discipline, either free or at a price that does not exceed the cost of reproduction and distribution; (2) information readily available at libraries open to the public or at university libraries; (3) patents and published patent applications available at any patent office; or (4) information released at an open conference, meeting, seminar, trade show, or other open gathering held in the U.S. (ITAR) or anywhere (EAR).

Note 1: Prepublication review by a sponsor of university research solely to ensure that the publication does not compromise patent rights or inadvertently divulge proprietary information that the sponsor has furnished to the researchers does not change the status of the research as fundamental research, so long as the review causes no more than a temporary delay in publication of the research results. However, if the sponsor will consider as part of its prepublication review whether it wants to withhold publication of the research results, then the research would no longer qualify as “fundamental”. As used in the export regulations, it is the actual and intended openness of research results that primarily determines whether the research counts as “fundamental” and not subject to the export regulations. University-based research is not considered “fundamental research” if the university or its researchers accept (at the request, for example, of an industrial sponsor) restrictions on publication of scientific and technical information resulting from the project.

Note 2: A conference or gathering is “open” if all technically qualified members of the public are eligible to attend and attendees are permitted to take notes or otherwise make a personal record of the proceedings and presentations. A conference is considered open notwithstanding a registration fee reasonably related to cost, and there may be a limit on actual attendance as long as the selection is either ‘first come’ or involves selection based on relevant scientific or technical competence.

Note 3: Some information, even if publicly available, may still be restricted depending on with whom you are sharing the information or for what purpose. For example, providing export-controlled information to a foreign military may be a defense service, which would require an export control license. In addition, certain end uses, such as research on biological weapons, or end users, such as those named on restricted lists, may also require an export control license.

G. What kinds of controls in a government-sponsored research project would compromise the fundamental research exemption?

If the U.S. Government funds research and specific controls are agreed on to protect information resulting from the research, then the information resulting from the project will not be considered fundamental research. Examples of “specific controls” include requirements for prepublication review by the Government, with right to withhold permission for publication; restrictions on prepublication dissemination of information to non-U.S. citizens or other categories of persons; or restrictions on participation of non-U.S. citizens or other categories of persons in the research.

H. Is a “deemed export” license required in order for Foreign Nationals to use non-ITAR-controlled equipment in research projects, classes, and teaching labs on campus?

No, actual use of non-ITAR equipment by a foreign national in the U.S. is not controlled by the export regulations. [All ITAR-restricted equipment is controlled for access and may require special handling or licensing for foreign national access.] Indeed, inside the United States, any person (including foreign nationals) may purchase export-controlled commodities, and the “deemed” export rule only applies to technical information about the controlled commodity. As such, while the use of non-ITAR equipment inside the U.S. is not controlled, the transfer of technical information relating to the use (i.e., operation, installation, maintenance, repair, overhaul and refurbishing) of the equipment may be controlled in certain circumstances.

For example, if an equipment manufacturer provided to the University some confidential, proprietary information about the design or manufacture of the equipment, then the University might need a “deemed” export license to provide such proprietary information to a foreign national, especially if shipment of the item to the home country of the foreign national would require an export license. In sum, the export regulations allow, without securing a license, foreign students, researchers and visitors to use (and receive information about how to use) non-ITAR-controlled equipment while conducting fundamental research on U.S. university campuses or while studying at the institution, as long as the technical information about the controlled equipment qualifies as “in the public domain” or “publicly available.”

The International Traffic in Arms Regulations (ITAR) and Export Administration Regulations (EAR) regulations control certain exports of both actual shipments of a commodity out of the country and the transfer, release or disclosure to foreign persons in the United States of “technical data” or “technology” about controlled commodities (“deemed exports”). Though everyone is required to comply with federal export control regulations, those in non-science, non-engineering disciplines are less likely to come across commodities or technical data or technology about controlled commodities that may fall on the U.S. Munitions List, Commerce Control List, or some other export control list.

In addition, U.S. sanction regulations under the Treasury Department’s Office of Foreign Assets Control (OFAC) restrict the following, with limited exceptions:

Your local Export Control Officer can assist you in identifying countries or entities that are on these restricted lists and how those regulations/sanctions may intersect with your proposed activities.

J. I’ve created a new technology that exists on an export control list. Can the University issue a technology transfer license?

Yes, however, there may be some limitations in whom we can license to, and U.S. government approvals may be needed. The government may require an export control license for certain countries, end users, end uses, and/or entities. The researcher, the technology transfer licensing officer, and the local Export Control Officer work closely together to review the new technology and determine what controls may apply to maintain compliance with the export control regulations prior to entering into any non-disclosure agreements, technology transfer licenses, and other interactions or arrangements.

The Fundamental Research Exclusion (FRE) only applies to technology or software that arises during, or results from, fundamental research and that is intended to be published. Thus, information received under a Non-Disclosure Agreement (NDA) is subject to the export control regulations.

In most cases, only the institutional representative (usually the Sponsored Research Office) should sign an NDA. In addition, the NDA should specify if the information to be shared is export-controlled. Consult with your local Export Control Officer for review. Your ECO will help you determine if any licenses or technology control plans are necessary, and whether there may be broader impacts to your research.

L. I’m giving a webinar / web conference on my research to be shared internationally. What do I need to know?

Information that is published or generally accessible to the public (for example, through a conference or webinar) is considered in the public domain or publicly available and not subject to export control regulations. However, you should assure that the webinar is indeed open to the public, such that all technically qualified members of the public are eligible to attend, and that attendees are permitted to take notes or otherwise make a personal record (not necessarily a recording) of the proceedings and presentations. A registration fee may be charged if it is reasonably related to the cost of putting on the conference, and reflects an intention that all interested and technically qualified persons be able to attend. However, you may limit actual attendance, as long as attendees either are the first who have applied or are selected on the basis of relevant scientific or technical competence, experience, or responsibility. Evaluation is case-specific; thus, it is recommended that you contact your campus Export Control Officer to review your circumstances.

No, generally this is not a concern, as long as your research is not subject to restricted publication or access. However, please contact your Export Control Officer if the information you intend to release is encryption software.

The Export Administration Regulations (EAR) distinguish source code from object code. For instance, under 15 C.F.R. § 734.13, the definition of Deemed Exports is “Releasing or otherwise transferring ‘technology’ or source code (but not object code) to a foreign person in the United States.”

Source code is generally understood to mean programming statements that are created by a programmer using a human-readable programming language with a text editor or a visual programming tool and then saved in a file which is later processed to run. Object code generally refers to the output, a compiled or interpreted file, which is produced when the Source Code is compiled or processed with a compiler (e.g. C, C# [to byte code], C++ or Java [to byte code]) or interpreter (e.g. a JavaScript, PHP, Powershell or Python.) The object code file contains a sequence of machine-readable instructions that is processed by the operating environment (runtime) on a computer. Operating system or application software is often in the form of compiled object code.

Notwithstanding the above, please contact your local Export Control Officer if your software has encryption features or uses encryption functions as there may be reporting requirements to the U.S. government.

The lists of controlled items and technology are extensive. The lists are dependent on the regulatory framework that describes them.

Below are some broad categories that contain items which may be controlled. Contact your local Export Control Officer for a more in-depth review to see if a license or license exception is required before export.

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