Taa Agreement Guidelines

Answer #2: The continued use and exchange of technical data previously authorized for export between the same foreign signatories, sub-licenses and end-users are in principle permitted even after the termination or expiry of the contract. However, foreign parties may not continue to use the technical data for manufacturing without separate authority. Foreign parties must obtain authorization from DDTC on a general correspondence issue in order to continue to produce technical data at the expiration of an MLA using technical data controlled by the ITAR. If the continuation of the production activity requires the provision of a defense service by a U.S. person, a separate authorization from the DDTC would be required. FAQs also address the ongoing sale and distribution of ITAR-controlled defense items upon expiration of an applicable MLA or TAA. In this regard, the FAQs put a finer point on the problem that was discussed above – that the scale limits in an expired agreement continue to apply even after expiration. Among other things, parties that have not been allowed after expiration cannot be involved after expiration. However, the FAQs specify that defense items manufactured under an expired MLA or TAA “may be transferred between the same foreign signatories and sub-licenses and for the same end users and end uses as those previously authorized under the TAA or MLA.” In two new FAQs, DDTC states that upon the expiration of an applicable MLA or TAA, the parties are not U.S. The parties may continue to use and exchange ITAR-controlled information and know-how they have received, but any other ITAR-controlled technical assistance or technical data from the U.S. parties would require a new authorization from DDTC. However, there is no way to obtain a renewed MLA or TAA that can meet the authorization requirement for continued U.S. assistance.

Parties to an expired agreement in certain circumstances, for example. B when applying for a DSP-5 licence for “limited” defence services or when using a regulatory exemption. For example, ItAR Section 125.4(b)(4) allows a U.S. party to transmit copies of certain types of previously authorized technical data to the same recipients. (NOTE: Defence items of foreign origin that have not been manufactured in accordance with an agreement are not subject to the transfer restrictions described above in § 124.8 (a) (5).) Companies should also carefully respect the language used by DDTC in these two FAQs and indicate that this ITAR-controlled activity can only continue “among the same foreign signatories, sub-licenses and end users” and “for the same authorized end-use”. Therefore, the scope of the expired GwG or TAA (as well as any reservations, conditions or other restrictions provided for in the agreement) continues to restrict which parties may participate in the ITAR-controlled activity upon the expiry of the agreement and what those parties may do. . . .

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