A DSP-5 is the State Department license you need to permanently export unclassified defense articles or unclassified technical data from the United States. It is issued by the Directorate of Defense Trade Controls (DDTC) under the International Traffic in Arms Regulations (ITAR), and it must be approved before any hardware, software, or data on the U.S. Munitions List leaves the country or reaches a foreign person.1Directorate of Defense Trade Controls. Understand The ITAR DDTC’s own data puts average processing at roughly 38 to 39 days, so a clean first submission is worth more than any amount of follow-up.2Directorate of Defense Trade Controls. DDTC Public Portal
When a DSP-5 Is the Right License
The DSP-5 covers one narrow situation: a permanent export of unclassified defense articles or unclassified technical data. Other forms cover other scenarios. A DSP-73 is for temporary exports, such as equipment going abroad for a demonstration and returning. A DSP-61 is for temporary imports into the United States. Technical Assistance Agreements and Manufacturing License Agreements govern ongoing defense services or foreign manufacturing rather than a shipment. Filing the wrong form is one of the faster ways to have an application returned without review.
Releases to Foreign Persons Inside the U.S.
A DSP-5 is not only for shipping a crate overseas. Under 22 CFR 120.50, releasing ITAR-controlled technical data to a foreign person inside the United States counts as an export to every country where that person holds citizenship or permanent residency.3eCFR. 22 CFR Part 120 – Purpose and Definitions That sweeps in situations companies routinely miss: letting an engineer on an H-1B view controlled drawings, allowing a foreign visitor to observe a controlled process, or giving a foreign contractor database access. Visual access is enough. The main carve-outs are disclosures to U.S. persons (citizens, lawful permanent residents, and certain protected individuals like refugees and asylees), information already in the public domain, and fundamental research at accredited universities where no publication restrictions apply.
Countries Where a License Will Not Issue
Some destinations face a blanket policy of denial. Under 22 CFR 126.1, DDTC will not approve licenses to Belarus, Burma, China, Cuba, Iran, North Korea, Syria, or Venezuela.4eCFR. 22 CFR 126.1 – Prohibited Exports, Imports, and Sales to or From Certain Countries A longer list, including Russia, Libya, Iraq, and Somalia, carries additional restrictions with varying flexibility depending on the article. If your end-user sits in one of these countries, work through 126.1 before spending time on the application.
Registering With DDTC First
You cannot file a DSP-5 until your company is registered. Any person or entity that manufactures, exports, or temporarily imports defense articles, or furnishes defense services, must register with DDTC. Even a single transaction triggers the requirement, and a manufacturer that never exports still has to register.5eCFR. 22 CFR 122.1 – Registration Requirements, Exemptions, and Purpose An expired registration blocks every license application, so keep it current.
Every application also needs the signature of an empowered official: a U.S. person directly employed by the applicant or a subsidiary, holding a position with policy or management authority, and formally authorized in writing to sign on the company’s behalf.6eCFR. 22 CFR 120.67 – Empowered Official Under 22 CFR 120.62, “U.S. person” covers lawful permanent residents, protected individuals such as refugees and asylees, and any corporation or entity incorporated in the United States.7eCFR. 22 CFR 120.62 – U.S. Person A foreign national employee cannot serve in this role no matter how senior.
Registration Fees
DDTC uses a three-tier fee structure that took effect in January 2025.8Directorate of Defense Trade Controls. Registration Payment Tier 1 is $3,000 per year and applies to first-time registrants, standalone brokers renewing, registrants with no approved licenses in the prior 12-month window, and nonprofits exempt under 26 U.S.C. 501(c)(3); a one-year initiative lets qualifying Tier 1 registrants petition for a $500 discount, bringing the fee to $2,500. Tier 2 is $4,000 per year for registrants who received five or fewer approved licenses in the 12-month period ending 90 days before their registration expires. Tier 3 is a calculated fee for registrants above that count: $4,000 plus $1,100 for each approval beyond five, capped so that if the result exceeds 3 percent of the total approved value the fee drops to the greater of that 3 percent figure or $4,000.
Building the Application
Start by locating your item on the U.S. Munitions List (USML), codified at 22 CFR Part 121. The list runs across 21 categories, from firearms and ammunition to spacecraft and military electronics.9eCFR. 22 CFR Part 121 – The United States Munitions List A wrong category doesn’t just slow things down; it can create a compliance violation because the wrong controls get applied. Match a precise description of the article to the correct USML paragraph.
Commercial documentation proves the deal is real. You’ll need a signed purchase order, a letter of intent, or a binding contract identifying the foreign end-user and the purpose of the export. If the shipment involves Significant Military Equipment (SME), a completed Form DSP-83, the nontransfer and use certificate, must be on file before DDTC will issue the license.10eCFR. 22 CFR 123.10 – Nontransfer and Use Assurances
Every foreign party in the chain, including the consignee, the end-user, and any intermediate consignees handling logistics, has to be identified with full addresses and points of contact. Discrepancies between the application and the purchase order are one of the most common triggers for a request for additional information, which effectively resets your processing clock.
Screening the Foreign Parties
Before listing anyone on the application, run them through the Consolidated Screening List (CSL) maintained jointly by the Departments of Commerce, State, and Treasury. The CSL search tool consolidates multiple restricted-party lists and updates daily.11International Trade Administration. Consolidated Screening List A hit doesn’t automatically end the deal, but it does require further due diligence against Federal Register notices and the responsible agency’s own site. Skipping this step and shipping to a denied party is a fast route to an enforcement action.
Value and Part 130 Disclosures
Report the true market value of the hardware or technical data, and identify whether it’s a sale or provided under a service agreement. Part 130 of the ITAR requires disclosure of any political contributions of $5,000 or more in the aggregate, or any fees and commissions of $100,000 or more in the aggregate, paid in connection with the sale, including who received the payments, the amounts, and the services tied to any fees or commissions.12eCFR. 22 CFR Part 130 – Political Contributions, Fees and Commissions
Filing Through DECCS
Applications go through DDTC’s Defense Export Control and Compliance System (DECCS), the only accepted electronic filing portal.13Directorate of Defense Trade Controls. DDTC User Enrollment Landing Page Hard copy is allowed only in limited cases, such as applications containing classified information. You log in with your registered credentials, attach the DSP-5 form and every supporting document, and let the empowered official apply the electronic signature after a full review. On submission, DECCS issues a case number you use to track status and contact the reviewer.14Directorate of Defense Trade Controls. DECCS Industry Portal – Unclassified License Application Guidelines
How Long It Takes
DDTC publishes average processing times each month. In early 2026 the average has been roughly 38 to 39 days from receipt to adjudication.2Directorate of Defense Trade Controls. DDTC Public Portal Averages hide the range. Straightforward commercial sales to allied countries often move faster. Applications involving SME, congressional notification thresholds, or heightened-review destinations typically take longer. Any request for additional information effectively restarts the clock, which is why precise documentation upfront saves more calendar days than anything else.
What an Approved License Requires
An approved DSP-5 is valid for four years. It ends when the authorized value or quantity has been shipped, or when the four-year period runs out, whichever comes first. If items remain unshipped after expiration, you file a new application referencing the expired one.15eCFR. 22 CFR 123.21 – Duration, Renewal, and Disposition of Licenses
Most licenses come with provisos, meaning specific conditions that restrict how items can be used or that require notice to the government at set milestones. Ignoring a proviso is treated the same as violating the license. Throughout the license’s life, U.S. Customs and Border Protection tracks each shipment’s value against the total authorized amount through decrementation; you provide the case number and license details at shipment so the digital ledger stays current.
Keep all records related to the export for five years from the license expiration date or the date of the transaction.16eCFR. 22 CFR 122.5 – Maintenance of Records by Registrants DDTC can prescribe a longer retention period in individual cases, so treat five years as the floor.
Amending Versus Refiling
Not every change needs a new application. DDTC will consider amendments for minor adjustments: adding a U.S. freight forwarder, correcting a typographical error, changing the commodity source, or swapping an intermediate consignee that only handles shipping. Changes to the quantity, commodity, destination country, end-use, end-user, or foreign consignee cannot be amended and require a new application covering only the unshipped balance from the original.17eCFR. 22 CFR Part 123 – Licenses for the Export and Temporary Import of Defense Articles When in doubt, file a new application; guessing wrong is how amendments turn into violations.
Penalties for Getting It Wrong
ITAR penalties are severe. A willful violation, such as exporting without a license, shipping to an embargoed destination, or making a false statement on an application, can bring criminal fines of up to $1,000,000 per violation and up to 20 years in prison, or both. Civil penalties can reach the greater of $1,200,000 per violation or twice the transaction value.18Office of the Law Revision Counsel. 22 USC 2778 – Control of Arms Exports and Imports
DDTC can also debar a violator, barring them directly or indirectly from any ITAR-regulated activity. Administrative debarment is generally imposed for three years, and reinstatement is not automatic; the debarred person must apply and be approved before returning to defense trade. A criminal conviction for an Arms Export Control Act violation triggers a separate statutory debarment, also generally three years, with the same reinstatement requirement.19eCFR. 22 CFR Part 127 – Violations and Penalties For a defense contractor, debarment is often the harder blow, because it shuts you out of the industry.
Voluntary Disclosures
If you find a violation after the fact, DDTC strongly encourages a voluntary self-disclosure under 22 CFR 127.12. The disclosure has to come before the government learns about the violation from another source. DDTC may treat a voluntary disclosure as a mitigating factor when setting penalties, though it does not guarantee a lighter outcome. If the matter is referred to the Department of Justice for criminal prosecution, DDTC will inform DOJ that the disclosure was voluntary, but DOJ is not obligated to give that any weight.20eCFR. 22 CFR 127.12 – Voluntary Disclosures Failing to disclose a known violation is treated as an aggravating factor, so the risk of staying quiet almost always outweighs the risk of coming forward.