Facebooktwittergoogle_plusredditpinterestlinkedinmail

ITAR Export License Lawyers and Consultants Helping Companies to Avoid the Most Costly Legal Mistakes With DSP 5 License Requirements. Serving All STATES and Overseas Clients.

When it comes to hiring foreign employees in the international export and import industry, the Directorate of Defense Trade Controls (DDTC) has a long-standing policy about trade compliance to ITAR DSP-5 Licensing Requirements for Foreign Employees authorize the access to technical data by a foreign person employee of a U.S. person on a DSP 5 export license through an exception to the requirement for a technical assistance agreement (TAA) in accordance with 22 CFR 124.1(a) of a U.S. person on a DSP-5 export license through an exception to the requirement for a technical assistance agreement (TAA) in accordance with 22 CFR 124.1(a).

Watson & Associates, LLC provides detailed analysis and legal guidance to companies throughout the United States and overseas with an eye for reducing costly fines and liability. With the business’ bottom line in our focus, we guide top executives and decision makers away from the costly landmines awaiting companies in the import and export industry.

DSP-5 Export License Consulting Services

With law offices in Washington, DC and Colorado, Watson & Associates ITAR consultants  and lawyers help domestic and foreign employers comply with export and import license regulations by:

  • Addressing problems with data control DSP-5 export license applications
  • U.S. Munitions List commodity coverage (USML, 22 CFR 121)
  • Making sure that applicants qualify under all of the eligibility conditions listed in the basic certification statement (22 CFR § 126.13),
  • Helping employers comply with relevant ITAR regulations
  • Guidance in hiring foreign employees and meeting federal guidelines
  • Consulting and legal services for export import data requirements

Call ITAR export license lawyers today for a FREE initial consultation at 1-866-601-5518.

  Wayne White ITAR consultant export control lawyer

ITAR consultants and import export control lawyers and EAR certification consultants:  ITAR Attorney Wayne White     Wojciech Kornacki

When hiring foreign workers abroad, DDTC had previously required a TAA in addition to the DSP 5 license to authorize foreign employees working for ITAR employers to transfer certain levels of technical data and defense services.

A foreign employee access authorization must be obtained for all foreign persons who require access to ITAR-controlled defense articles and technical data in the performance of their job responsibilities.

DDTC then decided that this extra foreign employee licensing requirement was redundant. Now companies must fulfill the trade compliance licensing requirement of a foreign person employed by a U.S. person through the use of a DSP 5 license to cover all levels of requested technical data and defense services.

Export Import Data – Using the DSP 5 Export License

The DSP 5 export license authorizes foreign employees working for companies in the international export and import business to transfer technical export import data and perform defense services to the employee(s) on their products. The DSP-5 export license authorizes the foreign employee to perform defense services on behalf of the international import and export company. These are all additional considerations when validating or applying for you import license.

Employees do not have to reside in the United States: Many company business strategies allow them to hire foreign employees to perform work in the import-export business. When using the DSP-5 export license request to hire foreign employees, the foreign worker does not have to live in the United States. So long as the employee is paid, hired, insured and ultimate control by the US company, they are considered a foreign employee for ITAR purposes.

  • If you currently are not in compliance with this export control law, then you want to consult with an ITAR consultant or lawyer to discuss ITAR requirements for voluntary disclosures.
  • If your foreign employees have access to ITAR-controlled defense articles and/or technical data without DDTC authorization and DSP 5 license, that is a violation and must be reported in accordance with 22 CFR 127.12.

US employer is responsible:  When it comes to export control compliance, employers in the international export and import business are totally liable to make sure that all foreign employees comply with U.S. export laws regardless of where the employee currently resides.

  • DDTC recommends that only one DSP 5 license be obtained for each foreign person employee to cover all activities.
  • If a foreign employee does not require access to ITAR-controlled defense articles or technical data, the ITAR employer must ensure internal controls are in place to prevent unauthorized access.

Export Trade Compliance – ITAR DSP 5 License of Foreign Employees

The “foreign person,” once authorized by the DDTC, no longer requires additional authorization to work so long as the work performed is strictly within the scope of the approved DSP 5 license and trade compliance regs.  They can contact with your suppliers, engineering partners, and developers in the United States or abroad, so long as his or her presence as a “foreign person” is noted to the counterparty.

FAQs as Published by DDTC

The following are a few relevant questions and answers as published on the DDTC Website. You should consult with import export lawyer of consultant for your specific situation.

When is a foreign person considered an employee?

When hiring foreign workers abroad, a foreign person is considered an employee when the foreign person is a full-time regular employee, directly paid, insured, hired/fired and/or promoted exclusively by the U.S. person. The employee, however, need not LIVE in the U.S. to be employed by the U.S. person. The U.S. person is liable to ensure all foreign person employees are compliant with U.S. export laws regardless of residence.

Can multiple foreign employees be covered under one authorization?

Yes. Multiple foreign person employees can be covered under one authorization so long as they are all of the same nationality working on the same program/commodity, i.e., all French nationals working on the same radar program.

What if the foreign person’s place of birth is different from the country he/she now resides in and holds citizenship from?This would bring into question the issue of dual nationality and whether the individual had ties to his country of birth which would indicate a degree of loyalty and allegiance to that country. The license would be considered on the basis that it could be an export to both countries.

Normally, this does not present a problem unless the country of birth is prescribed under 22 CFR 126.1 in which case we have to secure additional information to confirm the lack of significant ties to the country of birth.

If residing overseas, is the foreign person employee considered a broker?If truly employed by the U.S. person, the foreign person is NOT considered a broker when performing the U.S. person’s business (must be within the scope of the employment authorization) since he/she is a company employee.

Get a Free Initial Consultation

If you are a US international export import company that needs help with ITAR voluntary disclosures, DSP 5 licenses, trade compliance or legal advice with regard to hiring foreign employees, call the export control consultants and  import license lawyers at Watson & Associates, LLC. We offer a Free Initial Consultation. Call 1-866-601-5518.