State Dept Removes Prior Notice for Certain Military Equipment License Apps, Etc.
The State Department has issued a final rule, effective August 27, 2010, which amends the International Traffic in Arms Regulations to remove the requirements for prior approval or prior notification for license applications or proposed agreements to foreign persons relating to significant military equipment.
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Eliminates “Double Review” of Export Transaction
The Department states that this final rule does not lessen control over the export of any defense article, technology, or service, nor does it lessen scrutiny over prohibited/restricted destinations. Rather, it eliminates the requirement for reviewing an export transaction twice.
The State Department explains that the time between submitting a license application or proposed agreement and obtaining a decision from the Department whether to authorize such transactions has been decreased sufficiently that requiring prior approval or prior notification for proposals is unnecessary and imposes a burden on industry.
Regulations Requiring Prior Notice for Proposals Removed
The State Department is removing 22 CFR 126.8, which stated that certain proposals to foreign persons for the sale or manufacture abroad of significant military equipment required either the prior approval of, or prior notification to, the Directorate of Defense Trade Controls.
Among other things, 22 CFR 126.8 required prior approval or prior notification for certain proposals and presentations to make a determination whether to purchase significant military equipment valued at $14,000,000 or more (other than a member of NATO, Australia, New Zealand, Japan, or South Korea), or whether to enter into a manufacturing license agreement or technical assistance agreement for the production or assembly of significant military equipment, regardless of dollar value.
Regulatory References to SME Prior Notice Also Removed
References to 22 CFR 126.8 requirements have also been removed at:
(i) 22 CFR 126.13, regarding prior notification of sales of significant military equipment for license applications (DSP-5, DSP-61, DSP-73, and DSP-85);
(ii) 22 CFR 124.1(a), regarding prior approval of proposed manufacturing license agreements and technical assistance agreements relating to significant military equipment; and
(iii) 22 CFR 129.8(c) and 22 CFR 129.7(e), regarding prior notification and prior written DDTC approval for brokering activities with respect to significant military equipment; and
(iv) 22 CFR 125.4(a), regarding exemptions from licenses for the export of technical data and classified defense articles.
(See ITT’s Online Archives or 03/29/10 news, 10032930, for BP summary of the proposed rule.)
State Dept contact -- Charles Shotwell (202) 663-2792
(Public Notice 7134, FR Pub 08/27/10)