22 cfr 124 T F

Manufacturing license agreements and technical assistance agreements require prior written approval from the Directorate of Defense Trade Controls.

Once approved, manufacturing license agreements and technical assistance agreements can be provided without any further licensing.

Distribution agreements do not require prior written approval from the Directorate of Defense Trade Controls.

Off-shore procurement agreements are not covered under the regulations of this section.

Technical data disclosure is a mandatory requirement for obtaining approval for manufacturing license agreements and technical assistance agreements.

Defense services described in the agreements can be provided without any approval from the Directorate of Defense Trade Controls.

Technical assistance agreements are required for the provision of training in intermediate and depot level maintenance of defense articles.

U.S. persons who are drafted into the regular military forces of a foreign nation are considered to be performing defense services.

NATO countries, Australia, Japan, and Sweden are exempt from technical assistance agreements for maintenance training if certain criteria are met.

The Defense Security Service of the Department of Defense receives copies of approved agreements involving the release of classified defense articles.

Changes to the scope of approved agreements must be submitted for approval by the Directorate of Defense Trade Controls.

Amendments altering delivery schedules do not have to be submitted for approval.

DDTC approves agreements solely based on the applicant's oral representations.

Training in basic operation and maintenance of defense articles requires a technical assistance agreement.

The defense service exemption applies even when congressional notification is required for a transaction.

Maintenance training or performance must include any form of alteration or improvement that enhances the performance of defense articles.

Foreign persons eligible for technical data or maintenance training under the exemption include nationals from all NATO countries.

The export of unclassified technical data in furtherance of an approved agreement always requires approval from the Directorate of Defense Trade Controls (DDTC).

The defense service exemption includes maintenance training and service for all Missile Technology Control Regime Annex Items.

Classified technical data can be exported without further approval from DDTC if the United States party certifies that it does not exceed the technical or product limitations in the agreement.

The exemption allows the transfer of supporting technical data related to gas turbine engine hot sections covered by Category XIX(e).

A concluded manufacturing license or technical assistance agreement must be filed with DDTC within 30 days of entering into force by the non-U.S. party.

Supporting technical data for defense articles must include software documentation on the design of the computer software.

Maintenance that enhances the reliability of a defense article by increasing Mean Time Between Failure (MTBF) is allowed under the exemption.

The exemption applies to maintenance training and service for naval nuclear propulsion equipment listed in USML Category XXI.

Foreign persons from Russia are eligible to receive technical data under this exemption.

If an agreement is not concluded within one year of approval, the Directorate of Defense Trade Controls must be informed in writing and kept updated on the status of the agreement.

A concluded agreement involving coproduction outside the United States does not require a written statement to be filed with the Directorate of Defense Trade Controls.

When an agreement involving licensed production outside the U.S. is concluded, it is necessary to provide a description of any restrictions on third-party transfers of foreign-manufactured articles.

Proposed agreements that are not concluded require the U.S. party to inform the Directorate of Defense Trade Controls if a decision is made not to conclude the agreement.

The U.S. party must inform the Directorate of Defense Trade Controls within 90 days of a decision not to conclude a proposed agreement.

The U.S. party must inform the Directorate of Defense Trade Controls in writing of the impending termination of an agreement at least 30 days before the expiration date.

All proposed manufacturing license agreements and technical assistance agreements must include precise information, but variations can be requested if some clauses or information are considered irrelevant.

Manufacturing license agreements and technical assistance agreements do not need to specify the countries or areas in which manufacturing or other forms of transfer are licensed.

Defense articles listed in a manufacturing license agreement will not be eligible for export under certain conditions as per § 123.16(b)(1) of this subchapter.

All technical data and design know-how involved in manufacturing must be specifically described in proposed manufacturing license agreements and technical assistance agreements.

In manufacturing license agreements, no liability can be attributed to the U.S. Government in case of patent infringement.

All manufacturing license agreements must include the clause stating that prior written approval is required from the Department of State of the U.S. Government.

Any transfer of technical data or defense service to a foreign person must be authorized under Section 126.18 or with prior written approval from the Department of Defense.

Manufacturing license agreements allow for sales to countries not specified in the agreement without prior approval from the U.S. Government.

Sales under contracts made through the U.S. Government can include charges for patent rights in which the U.S. Government holds a royalty-free license.

If the U.S. Government has made financial contributions to a licensed article's design and development, charges for technical assistance must be increased.

Approval from the Department of State is not required for any transfers of defense articles manufactured from exported technical data or defense service.

All clauses referring to the United States Government and the Department of State become invalid after the termination of manufacturing license agreements.

Manufacturing license agreements do not need to comply with United States laws and regulations regarding exports.

Any obligations contained in manufacturing license agreements may affect obligations created by prior contracts with the U.S. Government.

An applicant must submit a DSP-83 and/or diplomatic note along with a signed agreement if all parties have already signed the agreement.

If an agreement has not been signed by all parties before submission, the required DSP-83 and/or diplomatic note must be submitted without the signed agreement.

Approval of manufacturing license agreements or technical assistance agreements can be granted immediately in case of a national security emergency.

Approvals for agreements involving NATO countries or certain other countries should not be granted until 30 calendar days have passed.

An application for a manufacturing license or technical assistance agreement with a foreign person must be accompanied by a signed contract and a DSP-83.

A statement of the estimated value of the agreement is not necessary unless it exceeds $500,000.

The explanatory letter for a manufacturing license or technical assistance agreement should identify any patent application related to the equipment.

Foreign military sales credits or loan guarantees must be involved in financing an agreement for it to be approved.

Distribution agreements require prior written approval from the Directorate of Defense Trade Controls.

Technical data disclosure is a mandatory requirement for obtaining approval for manufacturing license agreements and technical assistance agreements.

Charges for reproduction, handling, and mailing costs can be assessed against U.S. government funded purchases of articles.

The annual report of sales must include quantity, type, euro value, and purchaser or recipient.

Reports of sales made pursuant to the agreement must be submitted indirectly through the licensee.

The reports of sales shall not be considered proprietary information by the Department of State.

Licensed articles can be resold to any country without obtaining approval from the U.S. government.

A completed Nontransfer and Use Certificate (DSP-83) must be executed by the U.S. Government before any transfer of significant military equipment can take place.

For agreements relating to significant military equipment, prior written approval from the U.S. Government is required before entering into a commitment for transfer outside the approved sales territory.

A Nontransfer and Use Certificate (Form DSP-83) must be submitted to the Directorate of Defense Trade Controls for all agreements involving classified articles.

An exception can be granted by the Directorate of Defense Trade Controls to not require a DSP-83 for agreements involving classified technical data.

An appropriate authority of the U.S. government must also sign the DSP-83 for all agreements requiring assurances related to significant military equipment.

Offshore procurement agreements must clearly identify the article to be produced and the license number under which the technical data was exported.

Licenses for offshore procurement do not need to be renewed if the period of validity of the original approved license expires.

Technical data involved in offshore procurement arrangements exempt from licensing requirements must involve a DSP-5 form.

All offshore procurement licenses must explicitly state the purpose of offshore procurement according to ITAR regulations.

Offshore procurement agreements are not subject to any licensing requirements under this subchapter.

Government approval is not necessary for providing defense services described in agreements.

The Defense Security Service is responsible for identifying the facility security clearance codes of the U.S. parties in agreements involving the export of classified information.

If an agreement is approved by the Department of State, it implies approval of all business terms and conditions between the parties.

The applicant must inform the Department of State about the termination of an agreement not less than 60 days prior to expiration.

Agreements that grant rights to sublicense do not need to incorporate provisions that refer to the U.S. Government and the Department of State.

The Directorate of Defense Trade Controls may authorize the export of classified technical data to foreign persons for offshore procurement.

Offshore procurement agreements can allow the acquisition of rights in the technical data by any foreign person involved in the manufacturing process.

Subcontracts within the same country can acquire rights in the technical data exported for offshore procurement.

Foreign persons are allowed to retain the technical data exported for offshore procurement after fulfilling their terms if they obtain approval from the Directorate of Defense Trade Controls.

Delivery of defense articles manufactured abroad under offshore procurement agreements can be made to any entity approved by the U.S. Government.

Amendments altering delivery schedules in offshore procurement agreements do not need to adhere to any limitations specified by the Directorate of Defense Trade Controls.