US Licensing
OFAC
OFAC has the authority to issue specific and general licences. The Bureau of Industry and Security (BIS) has the authority to issue export licences. The Directorate of Defense Trade Controls (DDTC) is responsible for licences for the export, reexport, retransfer, or temporary import of defence articles/services, including technical data.
A specific licence is a written document issued by OFAC to one or more particular persons or entities, authorizing a particular transaction in response to a written license application. A general licence authorizes a particular type of transaction for a class of persons without the need to apply for a license.
The activities permitted by general licences generally include humanitarian activities such as donating food, clothing, or medicine, however the scope of the exceptions will vary from one regime to another, depending on the policy aims of the regime.
Pursuant to both specific licences and general licences, OFAC may require reports and statements from the licensee.
Applying for an OFAC licence
OFAC licensing procedure is set out in 31 CFR 501.801.
OFAC’s licence application portal is used to submit requests for licences or interpretative guidance and submit reports required by some licences. Users do not have to register for an account to apply for licences or guidance. However, registering for an account allows applicants to:
- save and return to applications in progress
- view a list of their applications and associated case statuses in one dashboard
- save frequently used contacts
- replicate applications
OFAC Specific Licences Guidance
- OFAC FAQs: how do I apply for a license to get my money unblocked
- OFAC Basics Episode 3: Applying for a License to Release Blocked Funds
BIS Export Licences
Export licences can be obtained from BIS via the SNAP-R online portal, after registering for a SNAP-R account. SNAP-R allows users to submit BIS export license applications, commodity classification requests, reexport license applications, and license exception AGR notifications via the Internet.
Applicants can track the status of requests submitted to BIS through the System for Tracking Export License Applications (STELA).
- BIS licensing guidance: general page
- BIS licensing guidance: how to submit an export license application
The EAR also includes numerous License Exceptions, found in EAR Part 740.
DDTC
DDTC Registration
Any person who engages in the United States in the business of manufacturing, exporting, or temporarily importing defense articles, or furnishing defense services, is required to register with DDTC under 22 C.F.R. Part 122.2. In addition, any person who engages in brokering activities subject to the ITAR must register with DDTC under 22 C.F.R. Part 129.3. Registration is a precondition for being able to obtain an export license or other authorization from DDTC, or to use an available ITAR License Exemption.
To register, Applicants must first create an account in DDTC’s Defense Export Control and Compliance System (DECCS). Once a DECCS account is created, an Applicant can use DECCS to complete and submit the ITAR registration application.
DDTC Licences
Licences for the export, reexport, retransfer, or temporary import of defence articles/services, including technical data, can be obtained from the DDTC. Applicants can also obtain comprehensive Agreements to provide technical data and defence services to a foreign person.
These licences are governed by the International Traffic in Arms Regulations (ITAR), 22 C.F.R. Parts 120-130.
Generally, any person or company who intends to export or temporarily import a defence article, defense service or technical data must obtain prior approval from DDTC. Exporters may submit to DDTC a commodity jurisdiction request to obtain an official determination regarding whether a commodity or service is covered by the US Munitions List, and therefore is subject to the ITAR, or is subject to other export control regulations such as the EAR.
DDTC Commodity Jurisdiction Overview
Applicants should use DECCS to submit license applications for:
- Exporting, reexporting, and retransferring defence articles and technical data.
- Temporarily importing defence articles and technical data.
- Brokering:
- Foreign defence articles and defence services as described on the U.S. Munitions List (USML) or the U.S. Munitions Import List
- U.S.-origin defence articles or defence services as described in section 129.4(a)(2) of the ITAR
DDTC Licensing Guidance Overview
DDTC Agreements
An agreement approved by DDTC is the primary mechanism for authorizing a U.S. person to furnish defense services and/or disclose technical data to a foreign person, manufacture defense articles abroad, or establish a distribution point abroad for defense articles of U.S. origin for subsequent distribution to foreign persons. The scope of an agreement may encompass a range of licensable activities to include exports, reexports, retransfers and temporary imports but the furnishing of a defense service, transfer of manufacturing know-how or production rights, or the establishment of a distribution point abroad is what distinguishes an “agreement” from other forms of authorizations issued by DDTC.
In exceptional cases involving activities of limited scope and duration, DDTC may consider approving the provision of limited defense services under a DSP-5 in accordance with §124.1(a)
There are three types of agreements:
- manufacturing license agreements, for manufacturing defence articles abroad
- technical assistance agreements, for furnishing defence services or disclosing technical data to foreign persons
- distribution agreements, for warehouse or distribution point abroad for defence articles, or
Agreements must be approved by DDTC, and may not enter into force until executed by all parties to the agreement.
OFAC General Licences
General licences applicable to different sanctions regimes can be found in the Code of Federal Regulations or as separate documents on the OFAC website. Relevant general licenses are available via the links to sanctions programs and have also been reproduced in full below. Expired GLs can be found via OFAC’s Archive of Expired General Licenses
- Syria-Related Sanctions (Executive Order 13894 of 2019)