So your company has a new overseas customer that requires several low value shipments this year. But when you check the Commerce Control List you discover this new business will require an export license. What do you do? You should first check to see if the “LVS” license exception applies.
LVS is for single shipments of limited value to Country Group B destinations. The details are found at 15 CFR Part 740.3, but here are the basics:
Let’s say you are exporting computer equipment classified as Export Control Classification Number (“ECCN”) 4A004, which has an LVS exception of up to $5,000. LVS will allow you to ship the equipment without an export license so long as (1) the net value does not exceed $5,000 and (2) you are shipping to a Country Group B destination. This includes almost all countries. See Supplement No. 1 to Part 740 for the entire Country Group B list.
Here are a few wrinkles you should know about:
For example, if an $8,000 order includes commodities controlled under two different ECCNs, each with an LVS limit of $5,000, you can ship so long as neither commodity alone exceeds $5,000 in value.
That’s the LVS exception in a nutshell. Obviously, it can be a real life-saver if your company does only limited amounts of business with a specific customer each year.
For additional information contact Mark Hamilton.
September 09, 2019
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