I am currently using AESManaged encryption for my silverlight application. Does AESManaged encryption have a severe trade compliance issue in Bureau of Industry and Security in terms of shipping the application internationally?
I am tempted to say that
AESManaged is a class provided by the framework, i.e. you do not ship it: it is already shipped. Then whatever compliance issue may exist is to be handled (and has been handled) by Microsoft, not you.
(I am not entitled in any way to give legal advice, so do not take my word for it.)
If your software provides encryption, then you have to go to BIS, even if you're using a third-party framework that was approved by BIS, including Windows APIs.
This is what Apple's Mac App Store requires, even though Mac developers are using Mac OS X built-in encryption approved by BIS; so I trust Apple's lawyers here.