ITAR COMPLIANCE TRAINING

DDTC Getting Started

The Directorate of Defense Trade Controls (DDTC) and the Defense Trade Function

Contents:

  1. Does Defense Export Controls Apply to Me? A Quick Action Checklist
  2. Rationale for Regulating Defense Exports
  3. DDTC – The Offices that Administer the Defense Export Regulations
  4. Authority for Control of Arms Exports
  5. U.S. Government Regulatory Measures
  6. End-Use/End-User Monitoring
  7. Other Compliance Mechanisms
  8. D-Trade – Conducting Your Defense Trade Business Electronically
  9. To Learn More

Does Defense Export Controls Apply to Me? A Quick Action Checklist.

Rationale for Regulating Defense Exports

The U.S. Government views the sale, export, and re-transfer of defense articles and defense services as an integral part of safeguarding U.S. national security and furthering U.S. foreign policy objectives. Authorizations to transfer defense articles and provide defense services, if applied judiciously, can help meet the legitimate needs of friendly countries, deter aggression, foster regional stability, and promote the peaceful resolution of disputes. The U.S., however, is cognizant of the potentially adverse consequences of indiscriminate arms transfers and, therefore, strictly regulates exports and re-exports of defense items and technologies to protect its national interests and those interests in peace and security of the broader international community.

DDTC – The Offices that Administer the Defense Export Regulations

The Directorate of Defense Trade Controls (DDTC), Bureau of Political-Military Affairs, in accordance with 22 U.S.C. 2778-2780 of the Arms Export Control Act (AECA) and the International Traffic in Arms Regulations (ITAR) (22 CFR Parts 120-130), is charged with controlling the export and temporary import of defense articles and defense services covered by the United States Munitions List (USML). To learn more about DDTC, please visit its Web site (www.pmddtc.state.gov).

Authority for Control of Arms Exports

The AECA provides the authority to control the export of defense articles and defense services. The AECA charges the President to exercise this authority, which has been delegated to the Secretary of State. The AECA is available through the DDTC Web site.

The ITAR implements the AECA. These regulations are frequently updated and revised to reflect change in the international political and security climate, as well as technological development. The ITAR may be accessed on the DDTC Web site.

In accordance with Executive Order 11958, the State Department, with the concurrence of the Department of Defense, determines what commodities are covered by the USML. Guidance on the commodity jurisdiction (CJ) function is available on the DDTC Web site.

In addition to seeking technical support and national security assessments from the Department of Defense, the State Department relies on extensive interagency cooperation and coordination to perform the arms export control function. It:

U.S. Government Regulatory Measures

For the U.S., licensing and compliance are two sides of the same coin, and there is constant interaction between the two functions.

I. Registration

II. Licensing

To learn more about licensing, and to view the various licensing forms, please visit the D-Trade Info Center and the “Licensing” page on DDTC’s Web site.

End-Use/End-User Monitoring

End-Use checks are key to the State Department’s effort to prevent illegal defense exports and technology transfers.

End-use checks (known under the program name “Blue Lantern”) enlist the help of U.S. diplomatic posts, the cooperation of U.S. Customs and Border Protection, and, most importantly, foreign governments in the conduct of pre-license checks and post-shipment verifications of defense exports.

End-Use monitoring reports are available on DDTC’s Web site.

Other Compliance Mechanisms

The U.S. Government spends considerable effort trying to prevent violations, via participation in industry conferences, Internet postings, and publication of regulations.

When a problem arises, the Department of State has broad authority to take action (i.e., suspend, deny, or revoke license approvals). Working with law enforcement agencies, it can prosecute criminally (possible prison sentences and fines) and independently can take civil action (e.g., fines and denial of export privileges).

Remedial assistance/attention is also offered. The State Department works with companies to develop effective export compliance programs. DDTC makes available a guideline describing the basic elements of a compliance program via its Web site.

D-Trade – Conducting Your Defense Trade Business Electronically

Effective January 15, 2004, DDTC, through the use of the D-Trade electronic licensing system, is prepared to receive and adjudicate fully electronic defense export authorization requests properly submitted by any U.S. person who is a defense trade registrant and wishes to permanently export unclassified defense articles via the Form DSP-5, temporarily import unclassified defense articles via the Form DSP-61, or temporarily export unclassified defense articles via the Form DSP-73. Based on envisioned expansion of electronic processing capabilities, DDTC anticipates, with few exceptions, most export licensing submissions via D-Trade in the near future.

For more information on D-Trade, consult the D-Trade Information Center, accessed through the DDTC home page. There you will find links to more background information on electronic licensing.

To Learn More

The DDTC Web site has more information that may be useful to you. The homepage has a comprehensive listing of links to information that can assist you in your defense exporting endeavors; in addition, consult “New Items and Announcements” for the latest updates.

If you have any questions about any aspect of the defense export process, please contact the DDTC Response Team.