Yesterday, the State Department's Directorate of Defense Trade Controls (DDTC) announced on its website that licenses to export ITAR-controlled goods from the US on a permanent basis (e.g., DSP-5s) no longer have to be lodged (i.e., deposited) with US Customs (CBP). This policy is effective immediately.
The lodging of the hard copy of export licenses with CBP at the port of exit is an antiquated and problematic process that frequently results in export delays and penalties, since the license must be lodged before the EEI filing is made. This is a welcome development for US exporters of ITAR-controlled items.
DDTC’s announcement is below:
Rule Waiver for Exporters to Deposit Permanent Export Licenses with CBP
In anticipation of the implementation of the U.S. Customs and Border Protection (CBP) Automated Commercial Environment (ACE), DDTC is electronically sending CBP registration and licensing data on a daily basis. Since CBP port officials will have access to the DDTC registration and licensing data through ACE, there is no longer a need for exporters to deposit permanent export licenses with CBP prior to filing in ACE.
Effective immediately, the Deputy Assistant Secretary for Defense Trade Controls is exercising the authority under 22 CFR 126.3 to waive the requirement under 22 CFR 123.22(a)(1) for exporters to deposit permanent export licenses with CBP prior to filing in the Automated Export System (AES) or ACE. This exemption will remain in effect until DDTC amends the language of 22 CFR 123.22(a)(1) to remove the requirement.
We anticipate that DDTC will issue a final rule amending the ITAR to implement this change early next year.