Once Licensed, Twice Why?

The Directorate of Defense Trade Controls (DDTC) posted its Updated Guidelines for Licensing of Foreign Persons and handy FAQ to redefine those processes US companies must implement to permit foreign person employees to engage ITAR-controlled technical data and defense services. The basic employer/employee authorization is embodied in a DSP-05 which will be valid for the lesser of four years or the expiration of the employee's authorized stay in the US. Notable additional aspects include:
1) The employing US company has an obligation to inform other US parties of the foreign person employee's status before the foreign person employee interacts with other US parties on ITAR-controlled technologies;
2) Other US parties must obtain separate DSP-05 authorizations prior to disclosing technical data to the foreign national employee;
3) The foreign person employee must be named on all Technical Assistance Agreements (TAAs) to which the foreign person employee provides support;
4) The foreign person employee must be named as a foreign consignee on all foreign marketing DSP-05s the foreign person employee supports, and the marketing license application should reference the case number of the employment DSP-05 license;
5) For transfer of classified technical data and defense services to foreign person employees, type up a DSP-85. A DSP-83 will be required to support the DSP-85, and DDTC may require a foreign government to execute the DSP-83;
6) DSP-83s will also be required for the transfer of manufacturing know-how pertaining to Significant Military Equipment (SME) to foreign person employees.

DDTC will no longer require a separate TAA to support the employment of foreign person.

Projections show that if DDTC moves forward with its plan to assess a per-instance fee for submissions, the current simplification of the foreign person employee authorization process could single-handedly fully-fund DDTC within twelve weeks of full scale implementation.