DDTC Posts Important Updates

Starting October 19, 2009, the DDTC will allow all U.S. applicants to submit Technical Assistance and Manufacturing License Agreements electronically via the D-Trade 2 application. Before getting too excited, the DTC strongly encourages the trade to review the new Guidelines for Preparing Electronic Agreements prior to submitting and electronic agreement. The requirements are complex and a thorough understanding is important to reduce the chances of rejection. Both paper and electronic submissions of agreement proposals will continue to be accepted; however, DDTC anticipates making the submission of electronic agreement applications mandatory for all applicants by Fall 2010.

In addition to this news, the DDTC posted information related to Licensing of Foreign Persons Employed by a U.S. Person and changes to DSP Amendments. Effective immediately, the DDTC will no longer process DSP amendments for value or quantity changes and a replacement license must be obtained

Bureau of Census & Department of Defense

For the past few weeks we have introduced government agencies that regulate exports. Last week we introduced the S. Department of State – Directorate of Defense Controls. This week’s spotlight is on the Bureau of Census and Department of Defense.

Bureau of Census
As part of the Department of Commerce, the U.S. Census Bureau's Foreign Trade Division (FTD) is responsible for collection, processing and disseminating statistical data related to the United States’ trade (imports and exports) with foreign countries. In addition, Census issues the regulations for export reporting, oversees the Automated Export System (AES) and provides free filing access for the required information through AESDirect. Census does not issue licenses or “authorizations to ship product.”

A wide variety of trade statistics and information about the export regulations, AES and AESDirect, is available on the Census Bureau’s website. The data collected by the Census Bureau is considered confidential; therefore, it is illegal for information from individuals to be released. Data based on the items that are traded instead of the companies or individuals doing the trading is available. The information collected via AES is provided to BIS and DDTC for export control purposes.


Department of Defense
The Department of Defense (DoD) has oversight of the Army, Navy, Air Force, Marine Corps, as well as non-combat agencies such as the National Security Agency and the Defense Intelligence Agency The mission of the DoD is to provide military forces to deter war and to protect the security of the U.S. Working with the Department of Homeland Security, the DoD seeks to fight terrorism. To that end, the DoD reviews a certain percentage of export licenses issued by the Department of State. A key objective of the agency is to prevent certain technologies from falling into the wrong hands.

The U.S. Department of State – Directorate of Defense Controls

For the last few weeks, we have introduced you to some of the government agencies responsible for regulating exports. Last week we discussed the Bureau of Industry & Security. This week, we will introduce you to the U.S. Department of State, Directorate of Defense Controls (DDTC).

To protect national security, the U.S. Department of State, Directorate of Defense Controls (DDTC) is responsible for controlling export of defense articles and services under the United States Munitions List (USML). The DDTC controls and monitors various types of military related items, such as weapons of mass destruction, and various chemical and biological agents.

The Arms Export Control Act (AECA) provides the authority to control the export of defense articles and defense services. Promulgated under the authority of the AECA, these controls are found in the International Traffic in Arms Regulations (ITAR), which include the United States Munitions List, 22 CFR parts 120 through 130.

The USML generally consists of items specially designed or modified for military use; however, some items with non-military applications have been designated as ITAR controlled items. An “article” or “service” is subject to ITAR if (a) it is specifically designed, developed, configured, adapted or modified for a military application; and (b) does not have a predominant civil application; and (c) does not have performance equivalent to an article or service used for civil application. Defense articles and services are listed on the USML, 22 CFR 121.

All U.S. parties that manufacture or export defense articles, furnish defense services, or U.S. and foreign persons engaged in arms brokering are required to register with the State Department. Registration along with payment of a fee is required to obtain export licensing approval. Department of State approval of a license application is required prior to the export of defense articles or defense services. The DDTC is also responsible for providing information on commodity jurisdiction, which determines the export licensing authority between the Department of Commerce and Department of State. The State Department monitors the end use and end users of articles to prevent illegal exports of defense articles and technology transfers. The DDTC has the authority to approve permanent and temporary export and temporary import of “defense articles, defense services and technical data."

Next week, we will explore the Bureau of Census and Department of Defense.