Dec

7

New Processing Time Exception Announced by DDTC

Posted by at 7:52 pm on December 7, 2009
Category: DDTC

Stopped ClockThe Directorate of Defense Trade Controls (“DDTC”) published today in the Federal Register a Notice indicating that it was adding a sixth exception to National Security Presidential Directive–56 which mandated a 60-day processing time for export license applications. According to the Notice, the 60-day time frame will not apply

[w]hen a related export policy is under active review and pending final determination by the Department of State.

Of course, this announcement makes me wonder whether a significant number of export policies have been under review by DDTC. Has the new administration begun a significant review of DDTC’s export polices? More importantly, is this new exception good or bad for exporters? Will the delay result in more applications being granted because the DDTC review winds up eliminating a denial policy? Or will it result in more applications being refused because DDTC’s review results in a new denial policy? Both actual experience and rampant speculation welcomed in the comments as answers to these questions.

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Copyright © 2009 Clif Burns. All Rights Reserved.
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2 Comments:

My favorite anecdote about DTC time limits arose several years ago in a CJ context. When reminded by me of the 45-day time limit, the reviewer said, “If I have to give you an answer now, you may not like it, but if you give me 10 more days, you may be happier.”
I did, and was.

These time limits are annoying since invariably they are exceptions that swallow the rules.

Comment by JOHN LIEBMAN on December 8th, 2009 @ 2:25 pm

I’m aware of a license that was denied with the reason given (paraphrasing)that the DDTC doesn’t license military items for use on commercial applications. They went on to advise the submitter to send in a CJ.

At a conference, a DDTC official was asked about this semmingly reversal of previous policy. That official explained that some of the licensing officers were denying licenses based on that “policy”. No apologies were given.

As long as the individucal licensing officers can make it up as they go along I remain skeptical about any real reform.

Comment by Name Changed To... on December 9th, 2009 @ 7:02 pm