DSP-73 and DSP-61 License Applications – Supporting Documentation Requirements

Effective April 15, 2008, any submission not meeting these requirements is subject to Return Without Action. However, DDTC encourages industry to implement this new guidance prior to April 1, 2008.

In order to facilitate review of DSP-73 and DSP-61 license applications and to ensure compliance with the AECA and ITAR, DDTC is implementing new guidance for the supporting documentation requirements for these license types. DDTC will not accept stand-alone license applications for the DSP-73 and DSP-61. These license applications must include documentation supporting the requested transaction. The new requirements are identified below.

For transactions “in furtherance” of an agreement, all DSP-73 and DSP-61 license applications must satisfy the additional requirements identified in Section 9.4 of the “Guidelines for Preparing Agreements.”

DSP-73 – Temporary Export License Applications
Transmittal Letter: All DSP-73 license applications must be supported by a transmittal letter from the applicant explaining the need for the temporary export and 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.

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, we strongly recommend that an application be limited to a geographic region (e.g., Europe, Middle East, South America , etc.).

Replacement/Renewal 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.

DSP-61 – Temporary Import License Applications
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.