Federal Ban on Export Control License Fees: Businesses to Get 30-Day Refund on Past Payments

If you’re running a business that exports goods—especially dual-use technology like advanced electronics or software—this bill is about to save you some money and headaches. The BIS License Fee Prohibition Act essentially slams the door shut on the federal government charging any money to get or keep a license under the Export Control Reform Act of 2018. We’re talking about fees, revenue-sharing, or any other payment required just to get the government’s permission to ship your product overseas.

The Cost of Permission Slips

The core of the bill is simple: License fees are prohibited. This isn't just about stopping future charges; it’s a mandate to clean up past practices. The bill specifies that any money collected for these export licenses—whether before or after the Act’s enactment—cannot be spent by the government. Instead, that money must be returned to the license holder. This is big news for companies that have paid these administrative costs over the last few years.

For example, if you’re a mid-sized manufacturing firm that paid $10,000 in various fees over the last year just to process your export licenses, the Secretary of Commerce is now required to pay that full amount back to you. The bill sets a tight deadline for this: 30 days after the Act becomes law. That’s a quick turnaround for the government, and it means an unexpected boost to the bottom line for affected businesses.

Why the Change? Blame the Constitution

This isn't just a random act of generosity; the bill is rooted in a constitutional argument. The Congressional findings section points directly to Article 1, Section 9 of the Constitution, which explicitly prohibits taxes or duties on articles exported from any state. Essentially, Congress is reinforcing the long-held view that requiring a fee for an export license is functionally the same as an unconstitutional export tax. This bill makes that position crystal clear, stating that the prohibition does not allow the government to suddenly start charging new export fees on things like semiconductors, either.

For the small-business owner or the startup dealing in high-tech goods, this means a reduction in compliance costs. Exporting is complicated enough without having to budget for mandatory government fees just to submit the paperwork. This clarity and the mandated refund offer immediate financial relief and certainty.

Who Feels the Pinch (and the Benefit)?

The clear winners here are the businesses that rely on these export licenses. They get a reduction in future operating costs and a mandatory refund for past payments. The groups that feel the impact are the federal agencies, specifically those under the Department of Commerce, that might have relied on these fees to fund their operations. They will now have to find alternative funding for those administrative tasks, leading to a short-term budget adjustment. However, for the average person, this bill reinforces a key constitutional protection and makes it cheaper and easier for American businesses to compete globally, which, in theory, is good for everyone.