Who must be preapproved for SCL?

Who must be preapproved for SCL?

• A. the license holder and all foreign consignees
• B. the license holder only
• C. consignees only
• D. BIS licensing staff

Answer: (A)

Preapproval for SCL requires screening and approval of every party involved in the license transaction, meaning both the license holder and every foreign consignee. This ensures end-use controls and destination restrictions can be enforced across the entire chain, and that each recipient is bound to comply with the license terms. Without vetting all consignees, a foreign recipient could introduce risk or noncompliance after the license is issued. This approach maintains accountability and traceability from the license holder to each downstream recipient. BIS staff handle the approval process; they are not the ones who must be preapproved to participate.

Preapproval for SCL requires screening and approval of every party involved in the license transaction, meaning both the license holder and every foreign consignee. This ensures end-use controls and destination restrictions can be enforced across the entire chain, and that each recipient is bound to comply with the license terms. Without vetting all consignees, a foreign recipient could introduce risk or noncompliance after the license is issued. This approach maintains accountability and traceability from the license holder to each downstream recipient. BIS staff handle the approval process; they are not the ones who must be preapproved to participate.