Frequently Asked Questions
1. What does ITAR controlled mean?
ITAR stands for the International Traffic in Arms Regulations (ITAR) and it is the government requirements for the control of defense data and hardware leaving the USA. The US Munitions List (Part 121 of the ITAR) governs what articles must have a defense export license with some being classified as Significant Military Equipment (SME). SME’s require another document called a DSP-83 which brings everyone into agreement that the exported item will not be transferred or used outside the end use statement.
2. Is support from Excelerate for export work expensive?
We don't think so. Honestly though, it is less expensive then you think and if you want success in the international marketplace, especially in the defense industry, then our support is well worth it. We will help you evaluate the options - for free - and discuss a plan based on your individual product base, capabilities, structure, and situation. Let us discuss with you your specific situation, answer your specific questions, or help with sightseeing ideas for a given area - we have been just about everywhere.
3. Does exporting require a lawyer?
To prepare and submit a license or agreement application to DTC - NO. For representation if you have violated the ITAR or EAR and the U.S. Government is knocking at your door - YES. A lawyer can read and understand the ITAR just as you or I but there is no need for a lawyer to submit, process, execute or work under an ITAR or EAR license or agreement. There is also no need for a lawyer as it pertains to a volintary disclosure for a potential violation of the ITAR or EAR. A lawyer is absolutely necessary when you are contacted by the U.S. Government and charged with a violation. Experienced legal counsel is required during this situation and we can provide names of competent lawyers that specialize in this area. For general ITAR exporting it is much more important to have an organization like Excelerate who understands the technology as well as the requirements of the ITAR and EAR.
4. Can I be a cleared facility and do international defense exports?
Absolutely yes – just follow the rules and get the approvals. As a consultant, we work with your company, and make the company Facility Security Officer (FSO) comfortable with the process as well. FSO’s jobs are to protect the company and the nation so they have the right and responsibility to be concerned about foreign national defense exports and visitors. We can help with that entire process.
5. How long does a defense license take to process?
This is the winner for the most asked question and the standard reply is that the license will take a minimum of one month for non-staffed applications and a minimum of two months for staffed applications. Most Excelerate applications are staffed since the majority of our licenses processed are Significant Military Equipment and high tech in nature. You can see the actual U.S. processing averages for Defense Trade Controls at the following website: http://www.pmddtc.state.gov/metrics/index.html
6. Which countries are the most difficult to obtain an export license?
This is a common but difficult question to answer since it all depends on what you are exporting and who the end user is and what the end use will be. Just give us a call and we can help answer that question. Of course the embargoed countries listed on the government website are an obvious no.
7. Is defense export licensing difficult to do?
By itself no, but it is truly experienced based with a significant learning curve. Also there are many positive benefits to breaking your international business out separately if you operate a cleared facility. We advise companies, that if they plan to do a high volume of defense exporting it may be advantageous to have someone within their organization learn the ins/outs of defense exporting. If not, then let us do it for you. We have many levels of involvement that can occur, from submitting the export license and brokering the sale to simply writing the license/agreements for your DDTC registration. Remember though that we are technically based which makes a huge difference in communicating the export technology for approval and working any issues that may occur along the way.
8. How can Excelerate help me?
Easy answer – we are international business experts with an emphasis in the defense market so any company looking to do international high tech business can benefit from our expertise. Defense licensing, commerce exports, business cultures, brokering, development support, international marketing and contacts...just to name a few. Our business focus is for small to medium size companies since they typically do not have the staff necessary to manage the export process. With that said though we have also supported groups and divisions from large companies. Often we end up partnering on technical projects for the international market or expanding their business to other countries as well. Easiest thing is just give us a call and let’s talk about your current situation. We definitely have a proven track record of success.
9. What is the difference between a defense export license and an agreement?
A defense export license basically cover items like hardware, software, and data and consist of a few different types – permanent export, temporary export, temporary import, etc. Agreements cover assistance to a foreign nation on a given defense subject and fall into two categories – Technical Assistance Agreement (TAA) and Manufacturing License Agreements (MLA). Give us a call if there are still questions on this subject.
10. Does Defense Trade Controls worry about the import of defense articles?
Not really – this is controlled by U.S. Customs, so if they approve the article for import you have satisfied the requirements. Defense Trade Controls gets involved when you want to export that article back to the original provider or to somewhere else.
11. I am not sure if an export license from Directorate Defense Trade Controls is needed – what do I do?
A Commodity Jurisdiction Request (CJR) can be submitted to determine if a defense export license is required. Basically, articles that are defense related or will be used for defense purposes are “ITAR controlled” and will require a license. It is always easier and safer to get the license for a defense export rather than suffer the penalties – which can be severe.
12. Which organizations control commerce and defense trades?
The US Commerce Department regulates non-defense related exports governed by the Export Administration Regulations (EAR). The US State Department – Directorate Defense Trade Controls (DDTC) regulates defense related exports governed by the International Traffic in Arms Regulations (ITAR). Commerce Department export website: http://www.export.gov/ | Defense Trade Controls website: http://www.pmddtc.state.gov/
13. When does an item subject to the export control jurisdiction of the Commerce Department require an export license?
An item may be licensable if it has been assigned a specific Export Commodity Control Number (ECCN) by the Commerce Department and is dependent upon an item's technical characteristics, destination country, end-user, and the intended end-use.
14. What is the difference between EAR99 and NLR?
EAR99 is a classification for an item. It indicates that a particular item is subject to the Export Administration Regulations (EAR), but not listed with a specific Export Control Classification Number (ECCN) on the Commerce Control List (CCL). While the classification describes the item, the authorization for shipment of that item may change, depending on the transaction. NLR is the designator of a transaction that stands for the "No License Required" authorization. NLR may be used for either EAR99 items, or items on the CCL that do not require a license for the destination in question, provided no General Prohibitions apply.