Export Licensing
Post Summary
You need an export license if your product is controlled under ITAR or EAR, depending on its jurisdiction, classification, and destination.
ITAR licenses include DSP-5, DSP-73, and DSP-85 for defense-related items. EAR licenses cover dual-use items and are issued by BIS.
For ITAR items, register with DDTC and use DTrade. For EAR items, register with BIS and use SNAP-R.
An ECCN is a classification number under EAR that determines if an export license is required for your product.
Screen all parties against Denied Party lists and retain export records for at least five years.
CTP provides expert guidance on export licensing, classification, and compliance to ensure smooth international trade operations.
Do I need an export license?
Before you can determine whether you need an export license to ship your product abroad, you must first determine the jurisdiction of your product and its classification. A product’s jurisdiction tells you whether it’s controlled under the International Traffic in Arms Regulations (ITAR) or the Export Administration Regulations (EAR). Classification involves comparing an item’s technical specifications against the criteria of the U.S. Munitions List (USML) and the Commerce Control List (CCL). This is especially important during this period of Export Control Reform (ECR) as items are systematically moving from the USML to the CCL.
Once you know a product’s jurisdiction and classification, you can determine whether you need an export license. Generally, all exports under the ITAR require a license. For exports under the EAR, licensing requirements are driven by an item’s reason for control, the destination country, and parties to the transaction. However, certain license exemptions and exceptions may be available depending on the nature of your particular transaction.
What kind of export license do I need?
If your product is enumerated on the USML and controlled under the ITAR, it falls under the jurisdiction of the State Department’s Directorate of Defense Trade Controls (DDTC). There are a few different types of export licenses available from DDTC, depending on the nature of the product and the duration of the export:
- DSP-5 – Application for Permanent Export of Unclassified Defense Articles, Related Technical Data, and Defense Services;
- DSP-73 – Application for Temporary Export of Unclassified Defense Articles; or
- DSP-85 – Application for Permanent/Temporary Export of Classified Defense Articles and Related Classified Technical Data.
If your product is a dual-use item, or a military item that has transitioned from the USML to the CCL as a result of ECR, it is subject to the EAR and falls under the jurisdiction of the Commerce Department’s Bureau of Industry and Security (BIS). Unlike DDTC, there is only one export license application available with BIS.
How do I get started?
For most military items, follow these steps to apply for an export license from DDTC:
- Register with DDTC.
- Set up an account in DTrade, which is DDTC’s electronic export licensing system.
- Complete the appropriate export license application and submit the application online via DTrade.
For items subject to the EAR, follow these steps to apply for an export license from BIS:
- Register with BIS.
- Set up an account in SNAP-R, which is the electronic export licensing system used by BIS.
- Complete the export license application and submit the application online via SNAP-R.
What Else Should I Do?
Before you export any items, you should screen all parties to the transaction against the various “Denied Party” lists published by different U.S. Government agencies. Afterward, retain all records pertaining to the export for a period of at least five years from the date of the last event associated with the transaction (e.g., the export itself, the expiration of the license, etc.).
About CTP Compliance
For over twenty years, the engineers and regulatory experts at CTP have guided our customers past compliance headaches and hazards, enabling them to find or design solutions that are efficient and cost-effective. For details, contact Rick Phipps at 703-683-5806 or rphipps@ctp-inc.com.
- Several CTP staff members worked as legal and licensing experts at the Department of Commerce where they played integral roles in the development of the existing Commerce Control List (CCL) and Export Administration Regulations (EAR).
- Our experts have since maintained memberships in various Technical Advisory Committees (TACs) and industry expert groups, contributing to the evolution of the export control reform, particularly in recent years.
- Our experts also have extensive international experience, having delivered export control training worldwide on behalf of the U.S. government. In the process, CTP has worked in 88 countries and developed relationships with over 350 trade and border experts around the world, enabling us to tailor our compliance solutions to local languages and laws.
Need Assistance?
If you are unsure about the licensing process, CTP can guide you through the licensing process and answer any questions you may have about export control compliance. Contact Rick Phipps at rphipps@ctp-inc.com or (703) 683-5806.
Key Points
1. Do I need an export license for my product?
Determining whether you need an export license depends on your product’s jurisdiction and classification:
- Jurisdiction: Identifies whether your product is controlled under the International Traffic in Arms Regulations (ITAR) or the Export Administration Regulations (EAR).
- Classification: Involves comparing your product’s technical specifications against the U.S. Munitions List (USML) for ITAR or the Commerce Control List (CCL) for EAR.
Generally:
- ITAR-controlled items: Almost always require a license.
- EAR-controlled items: Licensing depends on the item’s reason for control, destination country, and parties involved. Some license exemptions or exceptions may apply.
2. What types of export licenses are available?
- ITAR Licenses (for defense-related items):
- DSP-5: Permanent export of unclassified defense articles, technical data, and services.
- DSP-73: Temporary export of unclassified defense articles.
- DSP-85: Permanent or temporary export of classified defense articles and data.
- EAR Licenses (for dual-use or transitioned military items):
- A single export license application is available through the Bureau of Industry and Security (BIS).
3. How do I apply for an export license?
- For ITAR-controlled items:
- NIB Register with the Directorate of Defense Trade Controls (DDTC).
- Set up an account in DTrade, DDTC’s electronic licensing system.
- Complete and submit the appropriate license application via DTrade.
- For EAR-controlled items:
- Register with BIS.
- Set up an account in SNAP-R, BIS’s electronic licensing system.
- Complete and submit the export license application via SNAP-R.
4. What is an ECCN, and why is it important?
An Export Control Classification Number (ECCN) is a five-character alphanumeric code under the EAR that determines if your product requires an export license.
- Items with an ECCN are listed on the Commerce Control List (CCL).
- If your item is not listed, it is designated as EAR99, meaning it typically does not require a license unless specific restrictions apply (e.g., destination, end-user, or end-use).
5. Why is export licensing compliance important?
Failure to comply with export licensing regulations can result in:
- Civil and criminal penalties.
- Fines.
- Revocation of export privileges.
- Reputational damage.
6. How can CTP Compliance assist with export licensing?
CTP Compliance offers expert guidance to help businesses:
- Determine jurisdiction and classification of products.
- Navigate ITAR and EAR licensing requirements.
- Ensure compliance with export regulations.
- Avoid penalties and streamline the licensing process.
For tailored assistance, contact Rick Phipps at rphipps@ctp-inc.com or (703) 683-5806.
