By: Nidaal Jubran
Only a small percentage of U.S. exports require a license from a licensing agency. One of these agencies is the State Department, specifically the Directorate of Defense Trade Controls, deals primarily with military items and weapons.
- If your shipment(s) require a DDTC license, make sure you complete the application process and obtain any official paperwork.
- If you do not know if your shipment requires a DDTC license, contact the agency by calling 202-663-1282.
- If you already have a license, you need to know a few key pieces before submitting future licensed shipments:
- the license balance
- the license renewal/expiration dates
- any pending or accepted amendments
As you continue to file shipments against your DDTC license, your license will become ‘decremented’ with each additional filing. This simply means that your license balance will decrease by the value of each accepted shipment. When the license balance is fully exhausted, an informational message will be sent stating:
176 DDTC LIC NOW EXHAUSTED: <License Type/Number>
At this time, your company must apply for an amendment to add more value onto the license or apply for a new license.
Caution: We understand that informational messages like this may fly under the radar, particularly for high-volume exporters. At the AES Branch, we stress the importance of addressing fatal error messages and compliance alerts when they arise. However, companies must take notice of these informational messages as well. Understanding messages like this when they arise may save you:
- fees and penalties
- or other enforcement action.
License Registration Renewal vs. License Number Renewal
|License Registration Renewal||License Number Renewal|
|· DDTC Licenses are registered directly to the USPPI, and must be renewed every year.· The fee is $2,500 per registrant, and this must be done up to, but not exceeding, 60 days prior to the next date of export.||· The License number itself will expire after four years, and the renewal fee is variable.· Remember that the registration and license number may have different expiration dates, and if you receive a fatal error related to the license, check the dates first to determine if either needs to be removed.|