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January 7, 2016

DDTC: Exporters No Longer Required to Deposit Licenses with CBP

On December 21, 2015, the U.S. Department of State’s Directorate of Defense Trade Controls (DDTC) announced that exporters are no longer required to deposit permanent export licenses with U.S. Customs and Border Protection (CBP) prior to filing in the Automated Export System (AES) or the Automated Commercial Environment (ACE). In preparation for the full implementation of ACE, DDTC is sending registration and licensing data to CBP daily. DDTC stated that because CBP will be able to access this information through ACE, there is no longer a need for exporters to make such deposits.

The waiver remains effect until DDTC officially removes the requirement from part 123 of the International Traffic in Arms Regulations (ITAR).