Manufacturing License Agreement Annual Sales Report

Often, the approved ITAR agreement is not signed immediately by all parties. In this case, the U.S. applicant generally does not know that he or she does not meet the annual status update requirement for outstanding agreements. Companies should also carefully consider the language used by DDTC in these two FAQs and indicate that this ITAR-controlled activity can only be pursued “among the same foreign signatories, sub-licenses and end-users” and “for the same authorized end-use.” Therefore, the scope of the expiry of the LPI or TAA (as well as all restrictions, conditions or other restrictions of the agreement) continues to restrict the parties who may participate in the activity controlled by THE ITAR at the expiry of the agreement and what those parties can do. Any new part (for example. B customer or end user, foreign beneficiary, sublicensing or new foreign site for these parties) or any new activity (. B for example, using the technical data provided previously or the know-how required to manufacture a new defense item) may require additional authorization from DDTC. In addition, in accordance with ITAR 124.5, if it is decided that an ITAR agreement is not concluded, the applicant must notify DDTC/DTCL, within 60 days of this decision, of a formal notification letter. The notification letter must contain the applicant`s registration code and the ITAR contract number and must be downloaded electronically in the corresponding license authorization of the ITAR agreement.

Like L3Harris, most companies often violate the 124.5 requirement and do not submit the DNTC notice to DDTC. [13] (2) “The prior written authorization of the U.S. government must be obtained before a duty to transfer the licensed item is contracted by sale or any other means to a person or government outside the authorized sales area.” TaA and MLA allow U.S. individuals to export TECHNICAL data controlled by ITAR and “defence services” (and non-U.S. persons to trade outside the United States). A GG may also authorize the provision of production rights or know-how. GWG and TAAs generally have a 10-year term and the question often arises as to which activities can be continued and which cannot be continued when an agreement expires without obtaining a new agreement or agreement. The non-U.S. Contracting parties may, on that date, have developed or manufactured information or products from ITAR-controlled technical data and production or know-how rights from the United States, and underlying relationships or agreements may be continuous after the ITAR authorization expires. For example, non-Americans. Parties may have sales contracts or sales opportunities or obligations such as repairs and maintenance.

What types of ITAR activities can therefore be pursued without a renewed GWG or TAA, and what types of activities require additional authorization? DDTC has provided some useful answers in these new FAQs. In addition to limiting the participation of U.S. individuals at the expiration of a GWG or TAA, these FAQs also advise non-U.S. people. Parties who need it to obtain DDTC`s authorization (through a general correspondence request) if they wish to continue to produce ITAR-controlled defence items outside the United States, pursuant to an expired VRM. DDTC does not set such a restriction in the context of an expired TAA.

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