Temporary licenses and special conveyances

← All Insights

1. Two departments share the border

Movements of defense articles into the United States are split between two departments. "The Department of State regulates the temporary import of defense articles" (22 CFR 123.2). Permanent imports are regulated by the Bureau of Alcohol, Tobacco, Firearms and Explosives in the Department of Justice, under the Attorney General (22 CFR 123.2).

That split shapes the temporary licenses described here. The standard application forms, including the permanent export license, are covered in export licenses and customs clearance. This piece covers the licenses for articles that are meant to come back, or pass through, and the special rules for aircraft, vessels and satellites.

2. The temporary import license

A license from the Directorate of Defense Trade Controls, Form DSP-61, is required for the temporary import and later export of unclassified defense articles, unless an exemption applies. It covers two situations: articles to be returned directly to the country they were shipped from, and articles in transit to a third country (22 CFR 123.3(a)). A bond may be required (22 CFR 123.3(b)).

The license cannot be stretched into something else. "A DSP-61 will not be approved to support permanent import requirements" (22 CFR 123.3(c)). If a foreign exporter needs documentation for a permanent import, the American importer must go to the Bureau of Alcohol, Tobacco, Firearms and Explosives instead.

3. The temporary export license

The counterpart for outbound movements is Form DSP-73, for unclassified defense articles. Its conditions are strict. "Such licenses are valid only if the article will be exported for a period of less than 4 years and will be returned to the United States and transfer of title will not occur during the period of temporary export" (22 CFR 123.5(a)).

The regulation spells out the consequence: an article under a temporary export license may not be sold or otherwise permanently transferred to a foreign person while it is overseas. If it is to stay abroad beyond the period of the license, a renewal or other written approval must be obtained (22 CFR 123.5(a)).

The license also controls where and how the article leaves. Shipments go only from a port with a Customs and Border Protection Port Director, or through a post office. The license is filed electronically with Customs and Border Protection unless electronic reporting is unavailable. A military aircraft or vessel leaving under its own power must carry evidence on board that the Department of State has authorized its departure (22 CFR 123.5(b)). Temporary export licenses for used hardware must be endorsed by Customs and Border Protection (22 CFR 123.5(c)).

4. Warehouses and distribution points abroad

Stocking defense articles abroad for resale is treated as its own kind of export. Unless a specific exemption is used, a license is required to export defense articles to a warehouse or distribution point outside the United States for later resale. Such a license will normally be granted only if a warehouse and distribution agreement has been approved (22 CFR 123.7). That agreement type is described in offshore procurement, warehousing and space systems.

5. Aircraft, vessels and satellites

For large platforms, a paper change can be an export even if nothing moves. "Transferring registration or control to a foreign person of any aircraft, vessel, or satellite on the U.S. Munitions List is an export for purposes of this subchapter" (22 CFR 123.8(a)). It needs a license or written approval whether the platform is in the United States or abroad.

The reverse case is covered too. Registering in a foreign country a listed aircraft, vessel or satellite that is located in the United States but not registered there is also an export. Such a transaction may additionally need approval from the Maritime Administration, the Federal Aviation Administration or another agency (22 CFR 123.8(b)).

Voyages are regulated separately. "A license issued by the Directorate of Defense Trade Controls is required whenever a privately-owned aircraft or vessel on the U.S. Munitions List makes a voyage outside the United States" (22 CFR 123.11(a)). There is one exemption. No license is needed if the aircraft or vessel does not enter foreign territorial waters or airspace and carries no defense articles as cargo. Entering foreign waters or airspace, or carrying defense articles, needs a temporary export license (22 CFR 123.11(b)).

6. Import certificates and delivery verification

Some importing countries run a paper procedure that backs up the license. It is designed to ensure that goods imported into a participating country "will not be diverted, transshipped, or reexported to another destination except in accordance with export control regulations of the importing country" (22 CFR 123.14(a)).

The Directorate may require it for exports to non-government entities in participating countries. The exporter then files the license application, Form DSP-5, together with the original Import Certificate, authenticated by the importing government. The certificate confirms that the importer complied with local import rules and declared that it would not divert, transship or reexport without that government’s approval. After delivery, the Directorate may also require a Delivery Verification from the importing government, confirming the delivery matched the license (22 CFR 123.14(b)).

Responsibility for the paperwork sits abroad. "Both the Import Certificate and the Delivery Verification must be furnished to the U.S. exporter by the foreign importer" (22 CFR 123.14(b)). Where three or more participating countries are involved, a triangular symbol may be stamped on the certificate, and every party, including the ultimate consignee, must be shown on it (22 CFR 123.14(c)).

7. What this means in practice

Demonstration equipment, test articles, repair returns and platforms on delivery flights all rely on these rules. The common thread is that a temporary license assumes the article comes home unchanged in ownership, and that registration and control can amount to an export on their own. Movement of these items is also covered by the reexport and retransfer rules in reexports, retransfers and end use assurances.

Key terms

Form DSP-61	The license for temporary import and later export of unclassified defense articles.
Form DSP-73	The license for temporary export, valid for under four years with no transfer of title.
Import Certificate	An importing government’s authenticated confirmation that the importer will not divert the goods.
Delivery Verification	The importing government’s confirmation, after delivery, that the goods arrived as licensed.

Every statement above links to the document behind it. The full source list for this piece is on the sources page.

This page describes public United States government programs for general information. It is not legal, regulatory or procurement advice, and it does not address the facts of any particular case.

How Sentfore supports this

Demonstration and test equipment that travels out and back needs secure handling at each end. Sentfore works at the delivery end of defense programs in difficult environments, providing secure movement, protective security, facilities and life support. Requirements can be sent through the contact page.