We are creating a software for documentation purposes. Licensing method uses an encryption software that has US export laws listed in license agreement. Question: Can we sell our software to countries where its prohibited to export that encryption software(User will not have access to encryption software as its inbuilt into the application)?
I guess that's a question for your state department.
It's unlikely that you're going to be able to sell the software with the encryption included to countries on your encryption (or whatever they call it) embargo list.
You may have to sell them an version with lesser encryption.