Standard Licensing

DSP-5 Versus TAA/MLA

  The State Department uses many different forms for approving export transactions. Chief among them are the DSP-5 for the permanent export of hardware or technical data and the TAA for the transfer of know-how or defense services.

The State Department uses an electronic submission system called D-Trade. It recent months D-Trade has combined the application forms of a DSP-5 and a TAA. This can be incredibly confusing to those individuals that are new to the export world and export approvals. Your compliance professional will be able to distinguish the difference in the approvals and explain fully the extent of your authorization.

The DSP-5 is the lesser authorization of the two. A TAA allows for more flexibility and a back and forth exchange in ideas or training. The type of authorization you obtain depends upon the type of transaction you wish to conclude. If you only want to send tanks overseas and will provide no technical support after the sale the authorization you require is a DSP-5. If you intend to provide further instruction, such as depot level maintenance on the tanks that involves a back and forth exchange between your organization and a foreign party then a TAA would be required.