Selling your products overseas can be a smart way to grow. It opens up new markets, brings in more revenue, and helps your business reach a wider audience. But while the rewards are real, so are the risks. Exporting isn’t as simple as boxing up your products and printing a shipping label. Miss a requirement, and you could face delays, fines, or worse.
That’s why a pre-export compliance checklist matters. It helps you stay ahead of the rules, organize what needs to get done, and avoid problems before they start. In this article, you’ll get a clear breakdown of what to check before you ship anything out of the country.
Understand Your Legal Responsibilities (and When to Get Help)
Before you start preparing shipments for international delivery, you need to understand the laws that apply to your business. Exporting isn’t just about forms and shipping labels. Depending on what you’re selling and where it’s going, you may need to follow detailed U.S. export rules from agencies like the Bureau of Industry and Security (BIS), the Office of Foreign Assets Control (OFAC), and the U.S. Census Bureau.
This is where many small businesses run into trouble. Terms like Export Control Classification Number (ECCN), EAR99, or “deemed export” aren’t exactly everyday language. And guessing your way through them isn’t a safe bet. When the rules start getting technical, that’s a good time to look into export compliance consulting. These services help businesses stay on track with the law and avoid expensive missteps.
Whether you get help or manage things in-house, the key is to stay ahead of the process. Don’t wait until an order comes in to find out whether your product is restricted or needs a license.
Check If Your Product Needs an Export License
One of the first questions to ask is whether you need a license to export your product. Not every item requires one, but some do—especially if your product has potential military or dual-use applications, or if it’s headed to a country with trade restrictions.
Here’s what you’ll want to do:
- Classify your productusing the Commerce Control List (CCL).
- Determine the ECCNor confirm if it’s designated as EAR99 (most consumer goods fall under EAR99 and typically don’t need a license).
- Check the destination countryagainst the Commerce Country Chart to see if a license is required for your product.
- Screen the customer and end-useto make sure you’re not doing business with prohibited entities or sending items that could be misused.
You can research all of this yourself through the BIS website, but again, this is a task many small business owners choose to outsource to consultants, especially when the stakes are high.
Confirm the Destination Country’s Import Rules
Just because you’re cleared to ship a product from the U.S. doesn’t mean it’s automatically allowed in the destination country. Every country has its own import regulations, tariffs, and product standards. If you’re not careful, your shipment might get held up at customs—or even rejected altogether.
Before shipping, make sure you:
- Understand what paperwork the destination country requires.
- Know the applicable taxes, duties, and tariffs.
- Check labeling and packaging standards (some countries have strict requirements).
- Look up any import bans or restrictions.
Contacting a freight forwarder or a local customs broker in the destination country can give you clarity. These experts often know the ins and outs of what’s acceptable and what isn’t.
Register with the Automated Export System (AES)
If your shipment requires a license or is valued at more than $2,500 per item, you’ll likely need to file through the Automated Export System (AES). This system collects export data, also known as Electronic Export Information (EEI), which the U.S. government uses to monitor and enforce trade laws.
You can file directly through the AES, or your freight forwarder can do it for you. But remember, even if you delegate this step, you’re still legally responsible for the accuracy of the information.
Make sure the following info is accurate and available:
- Description of goods
- Harmonized System (HS) codes
- Value of the items
- Destination and consignee
- License information (if applicable)
Screen All Parties Involved
Before finalizing a shipment, take a moment to check everyone involved in the transaction. This includes the buyer, consignee, freight forwarder, and any third parties. The U.S. government maintains several lists of restricted or denied parties that you are legally prohibited from doing business with.
These lists include:
- The Consolidated Screening List (CSL)
- The Specially Designated Nationals (SDN) List
- The Entity List and Unverified List from BIS
Use online screening tools or software to quickly search these databases. Doing this helps protect your business from unintentionally violating sanctions or export laws.
Keep Accurate Records
Recordkeeping might not be the most exciting part of exporting, but it’s essential. Federal regulations require exporters to keep detailed records for at least five years after the date of export. If there’s ever an audit or investigation, these records prove that you followed all the necessary steps.
At minimum, hold onto:
- Commercial invoices
- Shipping documents
- Export licenses or license exceptions
- AES filings and confirmations
- Email communications or contracts with overseas buyers
Using a document management system can help keep everything organized, especially if you plan to export regularly.
Don’t Forget About Insurance
International shipping comes with more risk than domestic deliveries. From customs delays to lost cargo, a lot can go wrong between your warehouse and your customer’s doorstep. Getting the right insurance coverage helps protect your investment.
Make sure you understand what’s covered by your shipping carrier and where their liability ends. In some cases, it’s worth paying a little more for all-risk cargo insurance. It gives you peace of mind and can save you money if things go sideways.
Exporting can be a game-changer for small businesses—but only if it’s done right. Cutting corners on compliance might save time in the short run, but it can expose your business to serious legal trouble or costly delays. By following this pre-export checklist and seeking out help when you need it, you’ll be better prepared to navigate international trade with confidence.
Remember, every product and country is different, so don’t assume the same rules apply across the board. When in doubt, ask questions, verify your information, and stay informed. That extra effort up front can save you a lot of headaches later on.
