Authored by: Vijendra Kargudri

Background

The international arms trade apparently is the largest in the sense of cost and risks involved. Global arms trade has weathered every local/global financial crisis. The impact of such crisis on defence trade volume and deliveries has been minimal.

Globally, many countries import defense equipment from the U.S., since it is the largest manufacturer and exporter of defence equipment. For all such trade transactions correct product classification and licensing is immensely critical. The very nature of the trade involves great risks, responsibilities and with no room for error if the entities involved are not careful.

The penalties are big and stringent against erring organization. Based on the type of violation/offence, the penalty can extend from hefty fine to the tune of a million dollar, imprisonment of up to 10 years, cancellation of license and/or customs seizure.

What is DTrade?

The Defense Trade Electronic Licensing System (DTrade) is a fully-fledged electronic system available to the U.S. citizens and specified foreign individuals to submit license application(s) for the export/temporary import of defence articles conforming to the International Traffic in Arms Regulations (ITAR). For using DTrade, knowledge of the ITAR and DDTC Defense Trade Function are necessary. ITAR regulates the above functions to any foreign country or non-US individuals within the U.S. or abroad. The U.S. is the only country to exercise the extraterritorial jurisdiction over the re-exports.

All the export and temporary import of defense articles and defense services covered by the United States Munitions List (USML) is under direct control of the Directorate of Defense Trade Controls (DDTC).

Why is DTrade necessary?

Anyone who intends to export a defense hardware, provide technical assistance/data, defense services or engage in brokering must obtain the approval through respective category of licenses via DTrade.

DTrade system helps obtain the necessary license and execute due diligence and legal compliance for the intended defence trading in accordance to the USML.

How can Krypt Help?

Krypt is a preferred SAP partner and has helped global companies successfully implement/integrate SAP GTS, SAP TM, SAP IBP, and SAP EWM.

Using Krypt Connect – our in-house developed product, you can leverage your existing SAP or non-SAP ERP system to connect with DTrade for required licensing to embark upon Defence Trading. We are a one-stop shop for all your SAP implementation/integration. Our team of SAP GTS consultants can deploy the implementation/integration rapidly.

To understand how Krypt Connect can help you with DTrade, watch our On Demand Webinar titled – Krypt Connect for DTrade.

And, to know more about our other products/services, please request a DEMO or do contact us.

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