DDTC Announces New Document Guidance for DSP-73 and DSP-61 Applications Submitted on/after April 15th
The State Department's Directorate of Defense Trade Controls has issued guidance announcing that effective April 15, 2008, any DSP-73 and DSP-61 license application submissions not meeting the guidance's supporting documentation requirements will be subject to "Return Without Action." DDTC adds that it encourages industry to implement this new guidance prior to the effective date.
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DDTC to No Longer Accept Stand-Alone License Applications
In order to facilitate its review of DSP-73 and DSP-61 license applications and to ensure compliance with the Arms Export Control Act (AECA) and the International Traffic in Arms Regulations (ITAR), DDTC will no longer accept stand-alone license applications for the DSP-73 and DSP-61.
Effective April 15, 2008, DSP-73 and DSP-61 license applications must include documentation supporting the requested transaction.
Supporting Documentation Requirements for Form DSP-73
The following are the supporting documentation requirements for Form DSP-73 - Application/License for Temporary Export of Unclassified Defense Articles.
License applications. All DSP-73 license applications must be supported by a transmittal letter from the applicant explaining (i) the need for the temporary export and (ii) describing the role of each party to the license. This letter must be included even if all information is included in the body of the license application.
(DDTC adds that a DSP-73 application must be limited to one end-use or purpose (e.g., demonstration/marketing to government end-users or public trade shows). To facilitate review of a DSP-73 application, DDTC strongly recommends that an application be limited to a geographic region (e.g., Europe, Middle East, South America, etc.).)
License application replacements and renewals. For replacements and renewals of license applications, the transmittal letter must explain the need for the continued export activity. The license application submission must be accompanied by a complete copy of the precedent license. The transmittal letter must identify the current disposition of the subject defense articles. The renewal license application must be received 60 days prior to expiration to ensure sufficient time for review by DDTC.
Supporting Documentation Requirements for Form DSP-61
The following are the supporting documentation requirements for Form DSP-61 - Application/License for Temporary Import of Unclassified Defense Articles.
Return to country of origin (22 CFR 123.3(a)(1)). For overhaul/repair and modification/upgrade transactions, the application must be supported by a request from the foreign owner of the defense articles. In addition, the license application must be accompanied by a transmittal letter explaining why the temporary import does not meet the relevant exemption in 22 CFR 123.4(a) and as necessary, explaining fully the modification/upgrade to be performed.
For transactions relating to the temporary import of foreign-manufactured defense articles for trade shows and demonstration, the license application must be supported by documentation from the U.S. entity responsible for the defense articles while in the U.S. and/or trade show registration documentation from the foreign party. For transactions relating to demonstration, the license application must also be supported by documentation from the U.S. party requesting the demonstration.
For transactions relating to military exercises at U.S. bases/ranges, the license application must be supported by documentation from the foreign government identifying the participation of the foreign country in the exercise. The license application must clearly identify the defense articles to be imported and must specifically identify the name of the military exercise. These application types should be submitted by a foreign embassy on behalf of its military. Any exception must be explained in a transmittal letter describing the circumstances.
Transit to a third country/transshipment requests (22 CFR 123.3(a)(2)). For transshipment licenses involving non-U.S. origin defense articles, the documentation must represent the transaction between the two foreign entities (Blocks 16 and 24) and must include the same information that a DSP-5 requires. The license applicant and the U.S. entity identified in Block 21 should only be acting as a freight forwarder. If not, the role of the U.S. parties must be explained in a transmittal letter.
For licenses involving the transshipment of U.S. origin defense articles, the application must be supported by an approved General Correspondence (GC) letter for retransfer of the defense articles to the new end-user pursuant to 22 CFR 123.9. A copy of the GC approval letter and the DSP-83, if applicable, must be submitted with the license application.
License application replacements and renewals. The transmittal letter must explain the need for the continued activity. The application submission must be accompanied by a complete copy of theprecedent license. The transmittal letter must identify the current disposition of the subject defense articles. The renewal license application must be received 60 days prior to expiration to ensure sufficient time for review by DDTC.
Additional Requirements for Transactions "In Furtherance" of an Agreement
For transactions "in furtherance" of a technical assistance or manufacturing license agreement, all DSP-73 and DSP-61 license applications must satisfy the additionalrequirements identified in Section 9.4 of the Guidelines for Preparing Agreements (see link below.)
(See ITT's Online Archives or 01/25/08 news, 08012525, for BP summary of DDTC's plan to upgrade to a new version of D-Trade by March 31, 2008, which among other things, would enable the use of new forms for amending DSP-73 and DSP-61.)
DDTC guidance (updated 03/13/08) available at http://www.pmddtc.state.gov/license_applications_requirements.htm
Guidelines for Preparing Agreements (which is currently undergoing review and modification, with a new edition expected), Section 9.4 (dated October 2003) available at http://www.pmddtc.state.gov/docs/AG_Section_9.4_Replacement.doc