# ITAR Licensing Guide — 22 CFR Parts 123–125

## License Types at a Glance

| License / Agreement | CFR Reference | Purpose | Typical Use |
|--------------------|---------------|---------|-------------|
| DSP-5 | 22 CFR § 123.1 | Permanent export of defense articles | Hardware sale/transfer to foreign end-user |
| DSP-73 | 22 CFR § 123.5 | Temporary export | Trade shows, testing, repair abroad |
| DSP-94 | 22 CFR § 123.6 | Temporary import | Foreign defense article entering US temporarily |
| DSP-61 | 22 CFR § 123.9 | Import license | Permanent import from certain countries |
| Technical Assistance Agreement (TAA) | 22 CFR § 124.1 | Export of technical data / defense services | Engineering support, training, design assistance |
| Manufacturing License Agreement (MLA) | 22 CFR § 124.2 | Licensed foreign manufacture | Overseas production of US defense articles |
| Warehouse/Distribution Agreement | 22 CFR § 124.14 | Stocking items abroad for resale | Distributor model |

---

## DSP-5 (Permanent Export License)

### When Required
Any export of USML hardware not covered by an exemption.

### Application Requirements
Submit via DDTC's D-Trade portal:
- **Block 1**: Applicant (DDTC registration number)
- **Block 2**: Country of ultimate destination
- **Block 3**: Foreign end-user name and address
- **Block 4**: Description of articles (USML category, quantity, value)
- **Block 5**: End-use statement (intended use, no re-export without US government approval)
- **Supporting docs**: Purchase order, end-user certificate, import certificate if required by destination country

### Processing Times
- Standard: 30–60 days
- Significant Military Equipment (SME): may require Congressional notification (22 USC § 2776) for sales ≥$14M

### License Conditions (common)
- Items may not be re-exported without prior DDTC authorisation
- End-user restrictions apply
- US government access rights for audits
- 4-year validity; extendable

---

## DSP-73 (Temporary Export)

### When Required
Hardware leaving the US temporarily (not for resale/transfer to foreign ownership).

### Key Requirements
- Describe items precisely; document serial numbers
- State duration and purpose (e.g., "air show display," "field test," "repair and return")
- Items must return to the US by the license expiry date
- License conditions prohibit use in combat, operational deployment

---

## Technical Assistance Agreement (TAA)

### Purpose
Authorises the export of **technical data** and/or **defense services** to specific foreign persons/entities. Required even for oral disclosure of ITAR-controlled technical data to a foreign national.

### Required TAA Clauses (22 CFR § 124.9)
1. **Scope of agreement**: Precise description of technical data / defense services
2. **Parties**: US licensor + all foreign licensees, authorised sub-licensees
3. **Retransfer prohibition**: No further disclosure/transfer without prior written DDTC approval
4. **US government rights**: US government may review all records; terminate agreement
5. **Record-keeping**: 5-year retention
6. **Audit rights**: US licensor right to audit foreign licensee compliance
7. **Term**: Normally 5 years; must renew before expiry
8. **Security classification handling** (if applicable)

### Amendment Requirements
Any change to scope, parties, or authorised countries requires a formal amendment approved by DDTC.

### Common TAA Uses
- Sharing engineering drawings with foreign manufacturer
- Providing maintenance training to foreign military
- Technical support under FMS (Foreign Military Sales) cases
- Joint development programmes with foreign partners

---

## Manufacturing License Agreement (MLA)

### Purpose
Allows a foreign person to manufacture a defense article under US licence — typically for local production under an FMS programme or commercial arrangement.

### Key Differences from TAA
| Feature | TAA | MLA |
|---------|-----|-----|
| What is transferred | Technical data / services | Manufacturing rights + technical data |
| Foreign party produces? | No | Yes |
| Sub-licensing allowed? | Conditional | Usually yes, with restrictions |
| Offset programs | Not typical | Common |

### Required MLA Clauses
- Licence to manufacture (specific quantities, articles, versions)
- Quality assurance provisions
- US government rights (inspection, audit, terminate)
- Retransfer and re-export controls
- Royalty / fee structure
- End-of-programme disposition of tooling and data

---

## ITAR Exemptions (Selected)

Certain transfers do not require a licence if all conditions are met. **Exemptions are NOT blanket authorisations — verify conditions every time.**

### Key Exemptions (22 CFR Part 123–126)

| Exemption | CFR Reference | Conditions |
|-----------|--------------|-----------|
| US government | § 126.4 | Export by/for US Dept of Defense, State, etc. with government orders |
| Canada exemption | § 126.5 | Certain unclassified hardware to Canada only; does not apply to all categories |
| Australian/UK exemption | § 126.7 | Limited scope for certain Gov-to-Gov and industry-to-industry transfers; requires eligibility verification |
| Intra-company | § 125.4(b)(9) | Technical data to wholly owned US subsidiary abroad; limited scope |
| Beta test software | § 125.4(b)(10) | Unclassified software for beta testing by foreign person; narrow conditions |
| Beta hardware | § 123.16 | Temporary export of unclassified hardware for demonstration; strict limits |

**Australia, UK, Canada Defence Trade Cooperation Treaties**: Provide streamlined licensing for covered defence articles between treaty partners; not a blanket exemption.

---

## Foreign Military Sales (FMS) vs Direct Commercial Sales (DCS)

| Aspect | FMS | DCS |
|--------|-----|-----|
| Contract party | US Government (DSCA) | US company directly |
| ITAR licence | Not required (US Gov exemption) | DSP-5 / TAA required |
| End-use assurance | US Government provides | US company responsible |
| Price | Government + administrative fees | Market rate |
| Delivery risk | US Government manages | US company manages |

---

## Record-Keeping Requirements (22 CFR § 122.5)

All ITAR registrants must maintain for **5 years**:
- All export/import licences and shipping documents
- All TAA/MLA agreements and associated records
- End-user certificates and purchase orders
- Records of all disclosures of technical data
- Commodity Jurisdiction requests and determinations
- Voluntary disclosure records

Records must be available for inspection by DDTC, US Customs, DoD, or other US government agencies.