2025 Defense Export Handbook Report Index

Preface

This report provides broad guidance for companies to devise export strategies for defense items.

Statutory Governance

Defense trade between the United States and its foreign allies and partners is authorized and supported by various central statutes.

For the Executive Branch, each Administration develops national strategies that establish a set of overarching objectives guiding stakeholder agencies’ activities and providing direction for the strategies’ implementation.

Policies, Regulations, and Export Controls

Various policies, regulations, and multilateral export control regimes manage the defense trade ecosystem.

The “How” of Defense Trade

The United States transfers defense articles through Foreign Military Sales and through Direct Commercial Sales.

The Foreign Military Sales Program (FMS)

FMS is a form of security assistance authorized by AECA that DOS oversees, and the DOD implements.

Direct Commercial Sales (DCS)

When selling defense equipment via DCS, a foreign customer works directly with the U.S. company providing the end-item, technical data/information, or service.

Alternative Defense Sales Options

Alternatives to the FMS and DCS processes

Identifying Opportunities and Understanding the Market

U.S. companies seeking to export or enter new markets have a wide variety of programs and services available from several government departments and agencies.

Export Controls and License Requirements

Whether selling via FMS or DCS, exporters must understand how the product in question is controlled and what licenses or authorizations one may need to export.

DDTC and BIS

A more comprehensive look at the roles of the Directorate of Defense Trade Controls and the Bureau of Industry & Security

ITAR Highlights

The ITAR sets out regulations for items on the USML. Nearly all items on the USML require an export license.

EAR Highlights

Once you have confirmed that your product is not on the USML and regulated by ITAR, you need to determine if your product is on the CCL and controlled by the EAR.

License Requests and Exceptions

Details on BIS procedures for license requests and commodity classification as well as exceptions to the common procedures and other export restrictions.

Export Management & Compliance Plan (EMCP)

U.S. exporters should understand and comply with export control regulations and keep abreast of the latest EAR and ITAR changes.

Other Agencies or Entities Involved in Export Controls

Other USG agencies with equities in export controls

Export Promotion

ITA is the U.S. government agency for export promotion

Offsets and FCPA

Other export considerations include foreign market offsets requirements and U.S. exporter obligations under the Foreign Corrupt Practices Act

Major Aerospace and Defense Trade Shows

The following is a representative list of international aerospace and defense shows.

Additional Resources for U.S. Exporters

The U.S. Government has numerous resources available to help U.S. exporters including additional market research, export financing guides, overseas trade missions, and staff around the country and the world.

Next Section