Legal Definitions - No License Required (NLR)

No License Required (NLR) is a designation used in U.S. export regulations. It indicates that certain goods, software, or technology can be shipped or transmitted from the United States to another country without needing a specific export license from the U.S. government.

Most items exported from the U.S. fall under the NLR category. This typically applies in two main situations:

• When the item is not listed on a government control list (like the Commerce Control List), meaning it's not considered sensitive or restricted.
• When the item is listed on a control list, but it's being exported to a country for which the U.S. government does not require a license for that particular item.

Here are some examples to illustrate how NLR applies:

• Example 1: Standard Consumer Goods

  Imagine a U.S. company that manufactures everyday kitchen appliances, such as toasters and blenders. They receive an order from a retail chain in Mexico. When preparing to ship these appliances, the company determines that these standard consumer products are not on any U.S. government control list and are not considered sensitive technology. Therefore, they can export these goods under the No License Required (NLR) designation.

  This illustrates NLR because the items are common consumer products that do not appear on any list of controlled or restricted goods, making them eligible for export without a special government permit.

• Example 2: General-Purpose Software Distribution

  A U.S.-based software developer creates a new productivity application for businesses, designed for general office use. They want to offer this software for download to customers worldwide, including in countries like France and Australia. Since this software is widely available, not custom-designed for military or sensitive applications, and does not contain advanced encryption beyond standard commercial levels, it typically qualifies for export under the No License Required (NLR) designation for most destinations.

  This example demonstrates NLR because the software is a general commercial product, not subject to specific export controls due to its nature or intended use, allowing for its distribution without an individual export license.

• Example 3: Controlled Item to a Permitted Destination

  Consider a U.S. manufacturer that produces specialized industrial sensors used in environmental monitoring. While these sensors might have technical specifications that place them on the Commerce Control List (CCL) due to their precision, the manufacturer receives an order from a research institution in Canada. For this specific type of sensor and destination (Canada being a close trading partner), U.S. regulations might indicate that no individual export license is required. In this case, the export would proceed under the No License Required (NLR) designation.

  This scenario highlights NLR because even though the item is technically listed on a control list, the specific destination (Canada) and the nature of the transaction mean that the U.S. government has determined that a license is not necessary for this particular export.