The statement "NLR must not be used when the GBS license exception is applicable" is:

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The statement is true because the use of the No License Required (NLR) option is specifically restricted in situations where the General License Exception (GBS) applies. The GBS license exception is designated for certain transactions that meet specific criteria outlined under Export Administration Regulations (EAR). When the GBS license exception is applicable, it suggests that a license is necessary for the transaction to comply with legal export requirements.

Using NLR in scenarios where GBS is applicable could lead to non-compliance with EAR, as GBS provides specific terms and conditions under which exports may occur legally. This distinction is crucial for exporters to ensure they are following the correct procedures for export classifications and remain compliant with governmental regulations. Hence, the overlap in these scenarios creates a clear guideline that NLR should not be utilized when the GBS is in effect.

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