DSP-5, DSP-71, DSP-63, and ITAR
Export Compliance Policy: Types of Export Authorization
Exports by companies of military hardware, technical data, and defense services can be authorized from the U.S. Dept. of State in one of three ways:
DSP-5, DSP-71, DSP-63, and ITAR
License - This is the most common form of authorization that companies receive from the State Department. Licenses are granted after an application is made and has gone through an approval process. Exports made against a license apply only to specific parts or shipments and only for specific dollar or quantity amounts. Licenses must be accounted for very carefully to prevent mistakes. Export part values reported to the DoS must always reflect the part value noted on the original license. Often, part values listed on export invoices differ from the part values listed on a DoS license. In addition, licenses may include specific provisions that carefully spell out additional export rules that companies must abide by.
DSP-5, DSP-71, DSP-63, and ITAR
Agreements - Agreements are similar to licenses except that they are more flexible in the amount of product or information that may be exchanged with a foreign entity. Agreements come in the form of a Manufacturer's License Agreement (MLA) or a Technical Assistance Agreement (TAA). Agreements are drafted when a large amount of data or hardware must be exchanged with a foreign entity for a specific product or program. As the names imply, agreements can be used to allow manufacturing of U.S. designed products overseas, or to provide general technical assistance to a foreign party working with a specific product or program. Because the creation and approval processes for an agreement can be very lengthy, companies uses them only when other methods are unsuitable.
DSP-5, DSP-71, DSP-63, and ITAR
Exemptions - Exemptions from the licensing requirements of the U.S. State Department apply to specific circumstances outlined in the International Traffic in Arms Regulations (ITAR). Exemptions have their own record-keeping requirements and only apply only to specific circumstances. They do, however, preclude the use of a License or Agreement. Exemptions help to simplify routine exports in certain cases and can be very convenient, but their use is closely monitored by the State Department. Use of an exemption to export an otherwise licensable article is a violation of the law.
a division of
Aug 21, 2008 14:50:55
|
