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Certain Defense Export Licenses No Longer Have to be Returned

Friday, November 04, 2011
Sandler, Travis & Rosenberg Trade Report

The State Department has issued a final rule that, effective Nov. 4, amends the International Traffic in Arms Regulations to reflect changes in the requirements for the return of licenses. Specifically, applicants with DSP-5 licenses that have been issued electronically by State’s Directorate of Defense Trade Controls and decremented electronically by U.S. Customs and Border Protection through the Automated Export System no longer need to return them to DDTC when they expire, including when the total authorized value or quantity has been shipped.

All other DSP-5 licenses, including those issued electronically but decremented physically in one or more instances, must still be returned to DDTC. In addition, all DSP-61, DSP-73 and DSP-85 licenses and DSP-94 authorizations must be returned because they are not decremented electronically, even if an Electronic Export Information is filed via AES.

This rule also adds provisions specifying that (a) licenses issued but not used by the applicant do not need to be returned to DDTC and (b) licenses that have been revoked by DDTC are considered expired.

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