The Directorate of Defense Trade Controls (DDTC) of the U.S. Department of State has issued a new proposed rule under the International Traffic in Arms Regulations (ITAR) to ease the burden with respect to the return of certain expired or exhausted DSP–5s.
While DDTC is accepting comments on the new proposed rule until August 29, 2011, it likely will issue a final rule shortly thereafter. Specifically, the proposed change would mean DSP–5 licenses that have been issued electronically by DDTC and decremented electronically by U.S. Customs and Border Protection (CBP) through the Automated Export System (AES) no longer need to be returned to DDTC. According to DDTC, the return of these licenses is redundant and unnecessary as all of the export information already has been captured and saved electronically.
But it must be noted that all other DSP–5 licenses that do not meet the criteria as described above must still be returned. DDTC also will continue to require the return of all DSP–61, DSP–73, and DSP–85 licenses, and DSP–94 authorizations, as these licenses and authorizations are not decremented electronically, even if an Electronic Export Information is filed via AES.
To read more on the proposed rule, especially how to submit any comments by the August 29th deadline, please see the July 14, 2011 Federal Register notice.
Questions about Export Control Law?
Contact Gregory C. Dorris, Pepper Hamilton LLP