On February 14, 2022, the Department of State's Directorate of Defense Trade Controls (DDTC) released Revision 5.0 of its Guidelines for Preparing Agreements. Under the International Traffic in Arms Regulations (ITAR), an "agreement" approved by the Office of Defense Trade Controls Licensing (DTCL) is required for the provision of a defense service, transfer of manufacturing know-how or production rights, or establishment of a distribution point abroad. There are three types of agreements: Technical Assistance Agreements (TAAs), Manufacturing License Agreements (MLAs) and Warehouse and Distribution Agreements (WDAs). Activities that frequently require an agreement are:
- Supporting Direct Commercial Sales to Foreign Parties
- Providing Overseas Maintenance or Training Support
- Technical Studies, Evaluations, Demonstrations or Consultations with Foreign Parties
- Release of Manufacturing Data or Rights
- Efforts to Import Technology from Abroad
- Supporting a Foreign Military Sales Case (Beyond scope of LOA)
- Supporting U.S. Government-Sponsored Foreign Contracts
For this 2022 update (Revision 5.0), DDTC notes that while "the majority of the text remains unchanged," the revisions restructure the Guidelines in a more logical and orderly fashion, and that duplicative guidance has been removed or consolidated.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.