What is the purpose of an export license?

The purpose of an export license is to authorize the shipping of goods to a foreign destination. When a business wants to sell and ship products to another country, it often must secure an export license from the government to ensure that the export complies with national and international laws and regulations. This licensing process helps ensure that the goods being exported are not prohibited or restricted and that they meet the necessary legal and regulatory requirements for exportation. It is a crucial step that verifies that the transaction aligns with national security and foreign policy interests, avoiding potential legal issues that could arise from unauthorized exports. Hence, obtaining an export license is essential for legal compliance and facilitating international trade.