Export controls limit what can leave a country, often related to national security or military defense. They also limit exports of scarce goods or to embargoed destinations. Governments use export controls to set boundaries for business-to-business exports, and to limit exports of goods of national importance, such as food during shortages. Most export laws in the US and Western Europe concern military exports, and restrict the types of military technology that can cross borders. Countries also limit trade to embargoed or restricted countries, and establish bans through export controls. All exports, no matter how small, are subject to controls, but as long as activities stay within bounds, problems are unlikely to occur.
Export controls are national laws through which a government limits the kinds of things that can and cannot leave the country. Most export controls concern goods related to national security or military defense. The checks may also concern goods considered scarce or destined for specific destinations subject to embargo or restrictions.
In international trade, exports, like imports, play an important role. Exports are sometimes directly subsidized by and between governments. More frequently, individual companies arrange exports as business-to-business transactions. Government-mandated export controls set the boundaries and conditions under which these types of exports can occur.
At their core, export controls concern goods of national importance. If a country needs a certain amount of grain to feed its people, for example, or a certain amount of oil to fuel its cars, export controls will limit the percentage of these commodities that can be exported. Temporary or limited export controls may also be implemented to compensate for periods of famine or shortage. If a large swath of crops is destroyed by natural disasters or disease, export controls can drastically reduce the amount that can be exported, even if heavy exporting is, in good years, the norm.
Most export laws in the United States and Western Europe pertain to military exports. These countries impose strict restrictions on the types of military technology – both weapons and strategy – that can cross borders. National security largely depends on strictly maintained military strategies and advantages. Therefore, most governments don’t want their secrets shared, even with friendly countries. Most export controls permit some military trade, but only under certain carefully prescribed circumstances.
Governments also routinely reduce exports to embargoed or otherwise trade-restricted countries. Nations participating in world forums such as the United Nations and the World Trade Organization usually come to agreements with each other regarding the fair terms of international trade. Countries that refuse to play by established rules or engage in widely condemned activities such as terrorism or human rights violations often find their trade options limited.
Whether a country chooses to limit trade to a so-called “blacklisted” destination is a matter of national choice. The export of goods to Cuba, for example, is embargoed in the United States, but not in most of Europe. North Korea and Iran are also examples of countries to which trade is restricted or prohibited in some places but not in others. Countries establish and enforce these bans through export controls.
Export controls typically apply to all exports, no matter how small or irregular. A company that exports computers is just as subject to controls as an individual who brings clothes to a host family abroad. However, being subject to controls does not mean that any action is necessary. The controls act as parameters, and as long as the activities stay within bounds, problems are unlikely to occur.
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