FAQs for the Manage License/Agreement Types Screen
Here is a list of frequently asked questions for the Manage License/Agreement Types screen.
What is an agreement and why is it necessary?
As described in §124.1 issued by the Department of State, an agreement is defined as an approval that is issued by the Defense Trade Controls Licensing (DTCL) for the following defense-related exports:
- Export of defense-related articles and services by a U.S. person to a foreign person;
- Manufacture of defense articles abroad;
- Establishment of a distribution point abroad for defense articles of U.S. origin for subsequent distribution to foreign persons.
The export or temporary import of defense articles, such as technical data or hardware, may be addressed in the scope of an agreement as well. However, the provision of a defense service, transfer of manufacturing know-how or production rights, or establishment of a distribution point abroad is what distinguishes an “Agreement” from other forms of authorizations issued by DTCL.
What are the activities that frequently require agreements?
- Supporting Direct Commercial Sales to Foreign Parties
- Providing Overseas Maintenance or Training Support
- Technical Studies, Evaluations, Demonstrations or Consultations with Foreign Parties
- Release of Manufacturing Data or Rights
- Efforts to Import Technology from Abroad
- Supporting a Foreign Military Sales Case (Beyond scope of LOA)
- Supporting U.S. government-Sponsored Foreign Contracts
What are the examples of the ITAR license/agreement types that can be used in this screen?
Here are examples of the license/agreement types that you can use in this screen:
- TAA: An agreement for the performance of a defense service(s) and/or the disclosure of technical data, as opposed to an agreement granting a right or license to manufacture defense articles. Assembly of defense articles is included, provided production rights or manufacturing know-how are not conveyed. Should such rights be transferred, a Manufacturing License Agreement would be required.
- MLA: An agreement whereby a U.S. person grants a foreign person an authorization to manufacture defense articles and involves or contemplates:
- The export of technical data or defense articles or the performance of a defense service; or
- The use by the foreign person of technical data or defense articles previously exported by the U.S. person.
- WDA: An agreement to establish a warehouse or distribution point abroad for defense articles to be exported from the United States for subsequent distribution to entities in an approved sales territory.
- DSP-5: A license type for the permanent export of unclassified defense articles, services, and technical data.
- DSP-61: A license type that is used for the temporary import and subsequent export of unclassified defense articles into the United States. U.S. goods that were sold abroad that are being returned to the United States for overhaul, repair, or an upgrade, would require this license if not exempt under 22CFR 123.4(a). Foreign-manufactured defense articles for trade shows and demonstrations would also require this license type.
- DSP-73: An application and license for the temporary export of unclassified defense articles. This license can be used for specific end-users and public trade shows. However, if demonstrations or marketing information will exceed public domain information, a DSP-5 will also be required. Technical data is not authorized under a DSP-73.
- DSP-85: A license type that is used the export or temporary import of classified defense articles and related classified technical data.
- Technical Assist Agreement (TAA): An agreement that covers the performance of defense services or disclosure of technical data. Unlike a DSP-5, discussions regarding the technical data may be held. A TAA is required for the training of foreign military forces in the use of defense articles. However, manufacturing "know how" is not permitted and authorization to manufacture U.S. defense articles by a foreign person is not granted.