State Dept Eliminates Return of Certain Electronic Expired DSP-5s
The State Department has issued a final rule, effective November 4, 2011, that amends 22 CFR 123.22(c) of the International Traffic in Arms Regulations (ITAR) to no longer require the return of certain expired electronic DSP-5 licenses. State believes that this change will reduce the administrative burden on applicants.
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
Expired DSP-5s Electronically Issued/Decremented no Longer Need Returning
With this change, applicants with DSP-5 licenses that have been issued electronically by the Directorate of Defense Trade Controls (DDTC) and decremented electronically by the U.S. Customs and Border Protection (CBP) through the Automated Export System (AES) are no longer required to return them to DDTC when they expire, to include when the total authorized value or quantity has been shipped.
According to the State Department, the return of these licenses is redundant and unnecessary as all of the export information has been saved electronically.
Other DSP-5s and all DSP-61s, DSP-73s, & DSP-85sMust Still Be Returned
However, if a DSP-5 license issued electronically is decremented physically in one or more instance the license must be returned to DDTC.
In addition, all other DSP-5 licenses that do not meet the criteria described above, and all DSP-61, DSP-73, and DSP-85 licenses, and DSP-94 authorizations, must be returned by the applicant, or the government agency with which the license or authorization was filed, to DDTC, as these licenses and authorizations are not decremented electronically, even if an Electronic Export Information is filed via AES.
(See ITT’s Online Archives 11071509 for summary of the proposed rule.)
State Dept. contact - Nicholas Memos (202) 663-2829
(FR Pub 11/04/11, Public Notice 7674)