Overview of ODTC Licensing Process
March 21, 2002
The following tips were obtained from a recently conducted
ODTC seminar on licensing.
Smoothing the Application Process
- Train marketing personnel to understand the types of transactions
that will require ODTC licensing, the documents that will be required from the
foreign party for those transactions, and to obtain those documents as part of
the sales agreement. For example, the end-user statement could be included in
the letter of intent or the contract, and the end-user certificate (DSP-83)
completed at the time the contract is signed.
- A complete understanding of the entire transaction related to the
item being licensed and of the parties eases the difficulty in answering
questions related to identifying the foreign end-user, foreign consignee and
end-use of the item being licensed.
- Do not leave blanks on the application form. Where relevant,
stating “NONE” or “Not Applicable” prevents guesswork on the part of the
Department as to the reason the entry is left blank, and a possible return of
the form without action.
- Attach a copy of any and all documentation that supports the
application. If applying for a renewal on an expiring license, attach a copy of
that license. If applying for a new license on an item for which a license has
been issued in the past, include a copy of the old license. Letters of
explanation also should be attached to explain any anomalies or questions that
may develop in the review process. Certification that a renewal request is for
an identical DSP-85 (license for the export or import of classified articles or
technical data) increases the likelihood of the request being approved without
staffing to other departments.
- It is permissible and encouraged to provide the names of as many
contacts within the government (other than the ODTC) who are familiar with the
product being licensed and the relevant program.
- Provide the name of all persons, within the company or outside
counsel, who could provide information should a question arise during the
licensing process.
- Prepare applications for multiple countries according to the
geographic bureaus of the Department of State. Using one license for exports to
countries in different regions means that the same application has to circulate
among the different bureaus. Submitting different applications allows for
simultaneous review by the respective bureaus.
The License as a Customs Declaration Document
- It is permissible to provide the names and addresses of all
possible U.S. consignors or freight forwarders the potential licensee may use (e.g.,
“all DHS sites in Dallas, Texas”); and to include the name of a foreign
intermediate consignee even if unsure at the time of the request whether this
will be needed. U.S. Customs will delay a shipment that has a freight forwarder
who is not included on the license.
- Monitor a current license for the type and number of commodities,
the value that may be exported and age of the license. If any of these expires,
the license is invalid.
- If a DSP-73 license expires for a temporary import of unclassified
defense articles, bring the item(s) back immediately as “U.S. goods returned.”
Under this approach, it is possible to mitigate or avoid penalties, which is not
an option should the item(s) remain overseas indefinitely under an expired
license.