U.S. Export Authorizations for U.S. Practitioners

Course Summary:

This training—designed for members of your export compliance team—aligns with the Tier 4 requirements outlined in Element 5 of the DDTC ITAR Compliance Program Guidelines.

This export practitioner-level course examines the authorization types available for exports and imports of regulated hardware, technical information, software, and services under both direct commercial sales and Foreign Military Sales programs. This course also addresses the permanent and temporary nature of transactions. The course provides an overview of these areas in relation to the relevant U.S. compliance regimes, including the Export Administration Regulations (EAR), the International Traffic in Arms Regulations (ITAR), and Office of Foreign Assets Control (OFAC)-administered sanctions and embargoes.

The training provides detailed guidance for implementing the appropriate authorization for transactions that may involve multiple authorization types, as well as different regulations, depending on the activity. This course also discusses which business functions may have the relevant information required to determine authorization needs, such as program management, contracts, business development, procurement, and logistics.

Users will receive a Certificate of Completion from the Schar School of Policy and Government at George Mason University upon successfully finishing this course.

Course Outline:

Introduction to U.S. Export Authorizations for U.S. Practitioners

 Overview of Key Definitions

An Introduction to Activities Regulated by the U.S. 

Overview of End-Use and End-User Considerations 

• Red Flags Indicators
• Restricted/Denied Party Screening

Types of Items and Activities Regulated by the U.S.

• Deemed Exports and Reexports

Jurisdiction and Classification Overview

Authorizations

ITAR Authorizations

• ITAR Licenses
  – DSP-5 License for Unclassified Permanent Exports (Deemed Export/Foreign Person Employment Licenses, Technical Data Licenses, Limited Defense Services Licenses, Offshore Procurement Licenses, DSP-61 License for the Temporary Import of Unclassified Defense Articles, DSP-73 Licenses for the Temporary Export of Unclassified Defense Articles, DSP-85 License for Classified Transactions, & Open General Licenses)
• Overview of Part 124 Agreements
  – Part 124 Agreements (Technical Assistance Agreements, Manufacturing License Agreements, & Warehouse and Distribution Agreements)
• Determining Value of Part 124 Agreements
• Use of Foreign-Person Contract Employees
• Important Points About Agreements and Their Provisions
  – Sublicensing
  – Dual and Third-Country Nationals in Agreements
  – Exporting Hardware Under Agreements
• Reconsideration of Provisos
• U.S. Persons Employed Abroad
• Exemptions: ITAR §120.15
  – Overview of ITAR License Exemptions
  – TEMPORARY IMPORT LICENSE EXEMPTIONS
  – ITAR §123.4: Temporary Import Exemptions for Return and Repair
  – ITAR §123.4(b): Imports for Incorporation Into Other Articles
  – Mechanics of Using the Temporary Import Exemptions
  – ITAR §123.9(e): Reexports to Various Authorized Countries and Organizations
  – Exemptions of General Applicability: ITAR §123.16
  – ITAR §123.16(b)(1): Exemption for Unclassified Defense Articles in Furtherance of an Agreement
  – ITAR §123.16(b)(2): Components and Parts Less Than $500Components/Parts Less Than $500
  – ITAR §123.16(b)(4): Exports of Models and Mock-Ups
  – ITAR §123.16(b)(5): Exports to Public Exhibitions and Trade Shows
  – ITAR §123.16(b)(9): Temporary Exports to U.S. Subsidiaries Overseas
  – ITAR §123.19: Canadian and Mexican Border Shipments
  – DEFENSE SERVICES EXEMPTIONS
  – ITAR §124.2(a): Basic Operations and Maintenance Training
  – ITAR §124.2(c) Maintenance Exemption
  – ITAR §126.4: Transfers By or For the U.S. Government
  – TECHNICAL DATA EXEMPTIONS
  – ITAR §124.3: Exports of Technical Data in Furtherance of an Agreement
  – ITAR §120.15(f): Certification Requirements for Exemptions
  – ITAR §125.4(b)(1): Technical Data Pursuant to a Written Request of the Department of Defense
  – ITAR §125.4(b)(3): Technical Data in Furtherance of a U.S. Government Contract
  – ITAR §125.4(b)(4): Technical Data Previously Authorized for Export
  – ITAR §125.4(b)(5): Technical Data for Basic Operations and Maintenance
  – ITAR §125.4(b)(7): Technical Data Being Returned to the Original Source of Import
  – ITAR §125.4(b)(8): Unclassified Tech Data Related to Classified Tech Data Approved for Export
  – ITAR §125.4(b)(9): Exemption for Technical Data for Use Only by U.S. Persons
  – ITAR §125.4(b)(10): Technical Data to Employees of Institutions of Higher Learning
  – ITAR §125.4(b)(13): Technical Data Approved for Public Release
  – ITAR §125.4(c): Tech Data and Defense Services Involving Responses to U.S. Department of Defense Bid Proposals
  – ITAR §126.18: Exemptions Regarding Dual and Third-Country Nationals
  – ITAR §125.5: Exemptions for Plant Visits
  – PART 126 EXEMPTIONS
• Part 126 Exemptions
  – An Overview of the Canadian Exemptions
  – ITAR §126.6(a): Transfers by the Department of Defense
  – ITAR §126.6(c): Foreign Military Sales Exemption
  – An Overview of the AUKUS Exemption
  – Special Comprehensive Export Authorizations for NATO, Australia, Japan, and Sweden

EAR Authorizations

• EAR Licenses
• Determining EAR License Requirements
• Support Documentation Requirements for EAR Licenses
  – Statement by Ultimate Consignee and Purchaser
  – Firearms Convention Import Certificate
  – PRC End-User Statement
  – Hong Kong Import License
  – Hong Kong Export License
• Validated End-User
• EAR License Exceptions
  – EAR §740.9 Temporary Imports, Exports, Reexports, and Transfers (In-Country) (TMP)
  – EAR §740.10 License Exception Servicing and Replacement of Parts and Equipment (RPL)
  – EAR §740.11 Governments, International Organizations, International Inspections Under the Chemical Weapons Convention, and the International Space Station (GOV)
  – EAR §740.20 License Exception Strategic Trade Authorization (STA)
• NLR
• Paragraph (x) of the USML
• EAR99

Submission Portals

• Department of State Submission Portals
• Department of Commerce Submission Portals
• Tips for Submission

Managing Your Authorization

• Review of Approved Authorization
• Complying with License Provisos and Limitations and License Conditions
  – Questions Regarding ITAR Provisos
• Effective Monitoring of Authorizations
• Tracking of Activities
• Amending ITAR Authorizations
  – DSP Amendments
  – Part 124 Agreement Amendments
• Amending EAR Authorizations
• Best Practices for Authorization Management
  – Authorization Compliance Plans

Recordkeeping

•  ITAR Recordkeeping Requirements
• Introduction to ITAR Recordkeeping and Reporting
• ITAR Exemption Recordkeeping
  – Certification Requirements for Exemptions
• Reports Required by the ITAR
• Reporting on Exports of ITAR Technical Data and Defense Services
• Post-Approval Activities for Part 124 Agreements
• Part 130 Requirements
• Summary of the Congressional Certification Requirement
  – Dollar Thresholds for Certain Transactions
  – Congressional Certification Process and Timelines
  – Renotifications to Congress
• EAR Recordkeeping Requirements
• Destination Control Statements

Export Clearance Overview

•  Tracking
• Decrementation Under the ITAR
  – ITAR Recordkeeping
• Decrementation Under the EAR
  – EAR Recordkeeping

Potential Violations

•  Identifying and Disclosing Potential Violations
• Identifying When a Disclosure Should be Made

Compliance and Enforcement Actions

Conclusion