What are ITAR Licenses?

There are 4 main types of ITAR Licenses. However, it is worth noting that the type of license required depends on the kind of transaction a contractor seeks to engage in, and can either be; 

Classified Export or Temporary Import License (DSP 85)

While most of the defense articles and services under ITAR are predominantly unclassified, some of them are classified. Therefore, entities dealing with classified defense services and articles must have DSP 85 license to engage in transactions subject to ITAR. This license is a one-size-fits-all for permanent exports, temporary imports, and temporary exports of classified ITAR items and activities. However, only one kind of transaction can be made per form. This is a significant deviation from the unclassified licensing forms where unique applications are used for every transaction type.   

To obtain a DSP 85 license, the applicant must register with the DDTC and complete an application on DECCS portal. They also must submit all the supporting documents, such as purchase orders and end-use/user statements, among others. Applicants should carefully fill in the details because, unlike in other Licenses, DSP 85 doesn’t have a specific amendment form. Where amendments are required, the applicant has to submit a new DSP 85 application and an accompanying transmittal letter explaining it. If stuck, an applicant can refer to DDTC guidance or contextual help within the DECCS licensing application. After the DSP 85 license application is submitted, the government typically requires 60 to 120 days to make a decision. This time frame is necessary for the thorough evaluation of the application. However, you should note that actual processing times may vary.  

Temporary Export License (DSP 73)  

This ITAR license is used for temporarily exporting unclassified defense articles. Persons or entities can use a DSP 73 license for:  

• Demonstrating the material processing of a defense article  
• Repairs to a defense article  
• Exhibiting a defense article at a public trade show  
• Evaluating the form or fit of a defense article; and  
• Showcasing defense items.  

However, any DSP 73 license application should clearly identify why a temporary export is required and also describe what roles each party to the transaction plays. Such information may be provided in an explanation letter or Block 23. Additionally, brochures and technical data on the defense articles requested must be provided. Generally, an application for a DSP-73 license must be limited to a single geographical region. Therefore, all parties listed on the application must be located in the region specified. DSP 73 license applications should be tailored to the transaction requested. Thus, any deviation needs to be explained in a transmittal letter. Since DSP 73 doesn’t allow for the export of technical data, a separate DSP 5 permit must be obtained if demonstration/marketing to identified end-users will exceed information on the public domain and release technical data. 

Temporary Importation License (DSP 61)

Any person or organization must apply for and obtain a DSP 61 license before temporarily importing an unclassified defense article into the US. This ITAR License can also be used for unclassified defense articles transiting to a third country via the US. However, there must be documentation verifying the purchase and the intended end-use, price, and user. A DSP-61 license is also required when US goods previously sold to a foreign person but being returned to the US for improvement, upgrades, repairs, or any form of modification.    

You’ll also need a DSP-61 license to temporarily import defense articles manufactured abroad into the US for exhibitions, demonstrations, or trade shows. However, this license application must be backed by documents from the US entity accountable for the defense articles, and documents from the US party who requested the demonstration. A DSP 61 license is also required for transactions relating to military exercises at US bases or ranges. However, the license application should be backed by documents from the foreign government, clearly identifying their participation in the exercise. The application should also specify the name of the military exercise. Any exceptions to this, must be detailed in an explanatory letter outlining the circumstances.    

Either way, the importer of record must first register with the DDTC before submitting a license application request. Additionally, the application must be signed by the importing company’s ITAR-empowered official. The holder of a DSP-61 license must keep it active. They should return it to the DDTC once all items are back in their origin country, the license expires or is no longer needed. All entries or exits of articles must occur within the license’s validity period. Initial DSP 61 applications require supporting documents. To ammend or update a DSP-61 License, you should complete and submit form DSP-62.  

Permanent Export License (DSP 5) 

This is a Permanent Export license. Any person planning to permanently export an unclassified defense item on the USML must first obtain a DSP 5 license. Items exported under this license are not expected to return to the United States. Organizations or persons can also use a DSP 5 ITAR license for the purposes of exporting unclassified technical data for the sale of software, marketing activities, and offshore procurement. Any organization dealing with ITAR-controlled activities wants to employ a foreign national, they also should obtain a DSP 5 license. Additionally, a contractor may, under limited circumstances, use a DSP 5 license to perform limited unclassified defense services. However, this is on an exception basis.   

Several requirements must be fulfilled before a company applies for a DSP 5 license. First, it must be registered with the DDTC in line with the ITAR. Second, the ITAR Empowered Official must append their signature to the DSP 5 license application. The applicant must then pay the application fee and submit the supporting documentation. License processing may take 2 months at a minimum, with either of the following three outcomes: Approval, Denial, or Return Without Action (RWA). A DSP 5 license is valid for 4 years. The applicant must maintain the export license during this period and return it to the DDTC when the authorized value has been shipped, the license has expired, no further shipments are to be made, or the DDTC has requested.