EXPORT CONTROLS& LICENSING
A detailed overview of the export control and licensing frameworks governing SORC's brokerage and advisory activities, including FMS, DCS, DSP-5, TAA, and SNAP-R processes.
The transfer of defence articles, services, and dual-use technology across international borders is governed by a complex web of national and multilateral export control regimes. SORC maintains a comprehensive export compliance programme that addresses every applicable framework — from US ITAR and EAR to Canadian EIPA, UK ECO, and the EU Dual-Use Regulation.
FMS vs. DIRECT COMMERCIAL SALES
SORC advises allied government clients on the relative merits of the two primary channels for acquiring US-origin defence articles and services.
Foreign Military Sales
Government-to-Government
Under the FMS programme (22 USC § 2761), the US Government acts as the contracting agent between the purchasing government and the US defence industry. SORC assists clients in preparing Letters of Request (LOR), navigating the Letter of Offer and Acceptance (LOA) process, and managing delivery, training, and sustainment under the FMS case. FMS provides price transparency, US Government quality assurance, and access to classified systems not available through commercial channels.
Direct Commercial Sales
Commercial Channel
DCS involves a direct contractual relationship between the foreign buyer and a US manufacturer or exporter, licensed under ITAR (DSP-5 export licence) or EAR (BIS licence). DCS can offer faster delivery timelines and greater flexibility in contract terms. SORC facilitates DCS transactions by identifying qualified US exporters, managing the licence application process, and ensuring end-use certificate compliance throughout.
KEY LICENCES & AUTHORISATIONS
Permanent Export Licence (ITAR)
The DSP-5 is the standard ITAR export licence for the permanent export of unclassified defence articles and services on the US Munitions List (USML). Issued by the Directorate of Defense Trade Controls (DDTC). Required for most DCS transactions involving USML items. SORC assists clients and counterpart exporters in preparing DSP-5 applications, including end-use statements and supporting documentation.
Technical Assistance Agreement (ITAR)
A TAA is required under ITAR for the export of defence services and technical data, including training, engineering support, and technology transfer. TAAs define the scope of permitted activities, authorised parties, and applicable safeguards. SORC advises on TAA structuring and compliance obligations for technology transfer and licensed production programmes.
Manufacturing Licence Agreement (ITAR)
An MLA authorises a foreign person to manufacture USML defence articles abroad, typically under a licensed production arrangement. Required for offset and industrial participation programmes involving US-origin technology. SORC facilitates MLA negotiations between OEMs and allied defence industry partners.
Commerce Export Licence (EAR)
Dual-use items on the Commerce Control List (CCL) requiring a licence are processed through the BIS SNAP-R system. SORC assists in ECCN classification, licence determination, and application preparation for dual-use transactions, including items subject to Regional Stability (RS), Anti-Terrorism (AT), and National Security (NS) controls.
UK Standard/Open General Export Licence
UK-origin controlled items require either a Standard Individual Export Licence (SIEL) or may qualify under an Open General Export Licence (OGEL) administered by the Export Control Joint Unit (ECJU). SORC ensures UK ECO compliance for transactions involving UK-origin defence articles and dual-use goods.
HOW WE MANAGE EXPORT COMPLIANCE
Classification
Every item or service is classified against the USML (ITAR), CCL (EAR), UK Military List, and EU Dual-Use List to determine applicable controls and licensing requirements.
Counterparty Screening
All clients, suppliers, end-users, and intermediaries are screened against the US CSL, OFAC SDN, UN sanctions list, EU consolidated list, and UK OFSI register before engagement.
Licence Determination
Based on classification and destination, SORC determines whether a licence is required, whether a licence exception applies, or whether the transaction is EAR99 / outside scope.
Application & Documentation
Licence applications are prepared with full supporting documentation: end-use certificates, import certificates, technical specifications, and counterparty declarations.
Transaction Monitoring
Post-licence issuance, SORC monitors transaction execution to ensure compliance with licence conditions, including retransfer restrictions, re-export controls, and reporting obligations.
Record Retention
All export records are retained for a minimum of five years in compliance with ITAR (22 CFR 122.5), EAR (15 CFR 762), and Canadian EIPA requirements.
Export Control Enquiries
For licensing questions, classification requests, or to discuss a specific transaction's export control requirements, contact the firm directly.
[email protected]