DDTC licenses expire when which condition is met?

DDTC licenses expire when which condition is met?

• A. The license expires when the total value or quantity authorized has been shipped or the date of expiration has been reached, whichever occurs first.
• B. The license expires after a fixed 2-year term.
• C. The license expires only when the expiration date is reached.
• D. The license never expires.

Answer: (A)

DDTC licenses end once the authorized scope is used up or the stated expiration date arrives—whichever happens first. This means if you ship or otherwise authorize items up to the total value or quantity on the license before its expiration date, the license expires at that point and cannot be used for further shipments. If you haven’t reached the limit by the expiration date, the license expires then, even if some of the authorized quantity or value remains. That’s why this option is correct: it captures both ways a license can terminate and why it isn’t simply a fixed term or an indefinite permission. The idea that licenses always last two years is not accurate for all license types, and the notion that a license never expires ignores the quantity/value cap and the expiration date. The explanation aligns with how DDTC licenses limit both timing and scope.

DDTC licenses end once the authorized scope is used up or the stated expiration date arrives—whichever happens first. This means if you ship or otherwise authorize items up to the total value or quantity on the license before its expiration date, the license expires at that point and cannot be used for further shipments. If you haven’t reached the limit by the expiration date, the license expires then, even if some of the authorized quantity or value remains.

That’s why this option is correct: it captures both ways a license can terminate and why it isn’t simply a fixed term or an indefinite permission. The idea that licenses always last two years is not accurate for all license types, and the notion that a license never expires ignores the quantity/value cap and the expiration date. The explanation aligns with how DDTC licenses limit both timing and scope.