International Trade Law News

Published by Jacobson Burton Kelley PLLC

The Directorate of Defense Trade Controls (DDTC) has posted on its Web site (www.pmdtc.org) a document containing guidance for export license applications for products subject to the ITAR destined for Operation Iraqi Freedom and Operation Enduring Freedom in Afghanistan.

In addition to providing specific licensing instructions for license applications submitted via hard copy and by D-Trade and EllieNet, the guidance contains specific instructions regarding the supporting documents that must be submitted with the license applications. Specifically, the guidance requests exporters to:

--Include a complete copy of the contract or purchase order applicable to the proposed export and the contract number assigned by the U.S. Army Project and Contracting Office (PCO). For exports to coalition partners, a letter should be included from the partner government confirming the transaction and that it is in support of OIF or OEF.

--Include a copy of product specifications/descriptive literature that details the commodities requested for export.

The guidance issued by DDTC notes that "for the time being, the applicant need not supply a DSP-83 (Nontransfer and Use Certificate) for cases where the Iraqi Interim Government (IIG) is the proposed end-user." In order to satisfy the requirements of the Arms Export Control Act and International Traffic in Arms Regulations (ITAR), however, DDTC notes that the IIG has supplied the U.S. with blanket end-use assurances, which will be used for the near future, without an accompanying DSP-83, for approved exports to the IIG. However, for all exports to the IIG, the license application must have a cover letter explaining that the DSP-83 has not been submitted based on this understanding.

DSP-83s are still required for Significant Military Equipment (SME) exports to the Interim Government of Afghanistan and for exports to "private" end-users in Iraq (e.g., international organizations and private contractors).

The guidance concludes by noting that companies should pay "keen attention" to the brokering requirements under Part 129 of the ITAR and that such brokering activities may not begin until the appropriate approvals on registration and licensing are in place.

Labels: DDTC