ITAR-EAR consulting services

Services Offered

ECR 2020 Training - The new Export Control Reform is now here

Back on October 15, 2013, the ECR began taking effect with the USML categories for Aircraft and Engines. Most parts and components, and even entire aircraft and engine systems, have now moved their licensing jurisdiction from the State Department to the Commerce Department, from the USML to the CCL. This continued with vessels of war, ground vehicles, submersibles and the other others. At this point in 2021, all of the USML categories have been rewritten, including the I, II, and III firearms categories. But the devil is always in the details, and determining which of your items made the transition can be difficult. And what happens afterwards, will you still have licensing issues? Will they be easier or more complex? What about the brokering redefinition, does that affect your operations? What is your company liability in all of these changes, do you have greater exposure?

DDTC Registration

Registration is required of all companies who manufacture defense articles, whether they are actively selling abroad or not. The State Department charges $2250 for the first year of registration, and then they have a tiered fee structure for subsequent years. During the COVID-19 crisis, DDTC is temporarily reducing that registration fee to $500.

We will explain which registration category applies to you, help you fill out the forms correctly, and even get your registration package directly to State.

DECCS Electronic Licensing System

State Department requires the use of their electronic licensing system, DECCS, for submitting licenses. DECCS registration is a separate process from DDTC registration. There are several steps involved in these registrations, and we're here to help you.

We will walk you through the entire process and make it painless for you.

Delivery Verification Certificates / International Import Certificates

DVCs (Form BIS-647-P) and IICs (Form BIS-645P/ATF-4522/DSP-53) are less common than they used to be, but the need still arises. These are not really required by the USG export rules, but when foreign governments require them for certain exports, the USG cooperates. We perform the A-to-Z of securing these forms, and getting them singed by the USG.

Commerce Department Licenses

Most goods not covered by the International Traffic in Arms Regulation (ITAR) are governed by the Export Administration Regulation (EAR). The Commerce Department leads on this and provides for export licenses, or for exceptions thereto. The Commerce Department does not charge a fee to register or to submit a license. If we determine that your export requires a Commerce license then we will walk you through registering for their electronic licensing system (SNAP-R), fill out the application, submit and track the status daily.

Classify Your Products

USML Category

In order file for a license with the State Department, one must first determine where your product fits under the U.S. Munitions List. Sometimes this is straightforward, and other times it can be quite tricky. We will work with you to make sure you correctly categorize your export.

ECCN Determination

Your export may not fall under the State Department's ITAR, but instead be under the jurisdiction of the Commerce Department. Determining the Export Control Classification Number (ECCN) is a first step in the Commerce Department export licensing process. We can help you "self-determine" the ECCN for your product. In some cases there will be too much uncertainty to self-determine, in which case we would fill in the correct form to ask the Commerce Department's technical staff to make the determination.

Schedule B / HTS Codes

The Census Bureau and the International Trade Commission, respectively, manage the Schedule-B and the U.S. Harmonized Tariff Schedule (HTS) tables. The HTS is an internationally-agreed upon system that assigns a 6-digit number to each product that is traded internationally to insure uniformity amongst customs officials around the world. Each country can assign an additional 4-digit code; the resulting 10-digit code is the Schedule-B number. Knowing your product's Schedule-B (or in some cases its USHTS) code is needed to make the appropriate export document filing in the Automated Export System. As with ECCNs and USML categories, sometimes determining the correct Schedule-B or USHTS number is not so easy. We can help you with this determination as well.

State Department Licenses

Once it is determined that your products fall under the ITAR, and you are ready to export or import, we will create the appropriate license application making sure you have all the necessary documents and information to help State process your application as quickly as possible. Our services also include walking you through the submission process and daily status tracking of your application. There are many types of licenses and other filings depending on the situation. Below is a summary of some of them:

Permanent Export License (DSP-5)

The most common license granted under the ITAR is the DSP-5. It is used for the permanent export of hardware in the U.S. Munitions List, for technical data regarding that hardware, and for marketing purposes (a "hunting license"). It is also used in many cases to cover employment of a foreign national, or "non-U.S. Person," by a U.S. company.

Temporary Export License (DSP-73)

The State Department recognizes the need for temporary exports of U.S. Munitions List items. The DSP-73 form is the vehicle-of-choice here. This can be used for some equipment repairs, and for hardware demonstrations abroad. It's also useful for exhibiting at trade shows. Care must be taken regarding the information imparted to non-U.S. Persons, since by definition the transfer of data is a permanent export. It's hard to take back knowledge.

Temporary Import License (DSP-61)

Permanent imports generally are not regulated by the State Department. However, temporary imports of defense articles are explicitly covered by the ITAR. The form-license used here is the DSP-61. There is also a frequently-used ITAR exemption to import certain U.S.-origin items for repair. In the case of both the DSP-61 and the ITAR exemption, the item must come into the U.S. with the proper paperwork and entries for Customs purposes, or else you end up the proud possessor of a defense article for which you will need to secure a DSP-5 license in order to send it back overseas. Moreover, many cases like this are technically ITAR violations.

Modify an Existing License

Some license entries, like freight forwarders, can be changed; others, such as item quantities or end-user, cannot. DTC has incorporated new licenses into the D-Trade system that are used to modify current licenses. These are the DSP-6 to modify the DSP-5, the DSP-62 to modify the DSP-61 and the DSP-74 to modify the DSP-73. Though these form licenses resist modification in any significant way, State Department “Agreements” by contrast are nearly infinitely amendable.

State Department Agreements (TAA, MLA, WDA)

Certain transactions involving exports cannot be captured adequately by form licenses. For such situations, the ITAR recognizes a category of export license called "Agreements." We will assist you in creating the correct Agreement, first by determining which type of Agreement is called for, then by drafting the needed documents. Frequently these require associated form-licenses be obtained. There are three types of Agreements summarized below:

Technical Assistance Agreement

The primary purpose of a TAA is to request authorization to transfer technical data or provide defense services from a U.S. person to a foreign person. The transfer of hardware may fall within the scope of the agreement but that is not the primary purpose of an agreement. An agreement may be necessary for marketing products, importing foreign technology, engineering studies or evaluations, providing maintenance or other type training and various types of support with foreign contracts. To determine if an agreement is needed one must closely analyze the technical data and defense services contemplated for transfer from a U.S. person to a foreign person, regardless of location, and then apply to DDTC for the agreement. A TAA can include assembly of defense articles, provided production rights or manufacturing know-how are not conveyed. A Manufacturing License Agreement would be needed to transfer such rights.

Manufacturing License Agreement

An agreement (e.g., contract) whereby a U.S. person grants a foreign person an authorization to manufacture defense articles abroad and which involves or contemplates: (a) The export of technical data (as defined in §120.10) or defense articles or the performance of a defense service; or (b) The use by the foreign person of technical data or defense articles previously exported by the U.S. person. What primarily distinguishes a TAA from an MLA is that the latter is required when the disclosures to the foreign party(its) includes "manufacturing know-how."

Warehousing & Distribution Agreement

An agreement (e.g., a contract) to establish a warehouse or distribution point abroad for defense articles exported from the United States for subsequent distribution to entities in an approved sales territory.

Compliance

Compliance Audits

We will meet with you to discuss and review your current practices, procedures and physical facilities. We will provide a report of findings, make suggestions for improvements and work with you to implement recommended changes. This is often done in conjunction with on-site training.

Compliance Manuals

Training

Customized On-Site Training

We will discuss your company's specific situation and tailor training to your needs. On-site training is often paired with a compliance audit. See the Training page for more details.