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DDTC Issues FAQs on Exporting Defense Services

The Directorate of Defense Trade Controls on Feb. 19 issued two frequently asked questions that provide guidance on U.S. people exporting defense services abroad. The FAQs clarify guidance for exporters who “believe they may be currently furnishing defense services without authorization,” DDTC said.

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The first FAQ addresses whether U.S. exporters will be granted a “safe harbor” period if they request authorization for exports of defense services they are “currently performing without a license.” DDTC did not say whether exporters would be granted “safe harbor,” only saying the agency will “review the totality of the facts and circumstances” before making a decision. DDTC urged exporters to submit a voluntary disclosure if they are exporting without a required authorization, which could help the exporters’ case.

The second FAQ addresses situations in which a person’s employment for a foreign company qualifies as a defense services export. If an employee is working for a foreign company and is exporting defense services without authorization from DDTC, that employee may continue their employment “on a provisional basis” if they disclose their activities to DDTC along with a request for authorization.