Seventeen Agreed Proposals to Defense
Trade Security Initiative
Program License: A single, comprehensive license (including hardware,
technical data, defense services) issued at the beginning of a project where
the U.S. firm is the prime contractor. The license, initially available via
a pilot project, will permit a consistent line of supply from on single
end-user to another, or to identified sub-contractors as well. A major
program license can cover a wide range of ventures, including projects for
the commercial development of defense articles. Licenses can be valid for up
to 8 years (vice the current maximum of 4 years). The U.S. firm will need
additional licenses only when activities or transactions extend beyond the
initially approved license parameters.
Project License: A single comprehensive license for a major commercial
sale of defense articles to NATO, Japan or Australia. This license would
permit the U.S. prime contractor to define the parameters of an export
license that would cover all or some of the exports associated with the
sale. Once these parameters were defined with the USG, and contractor
(either at the prime or sub-tier) would have smooth and expedited processing
of its export license request for something within the project, as long as
the export is within the parameters of the Major Project License.
Project License: A single, comprehensive license to cover all exports
planned to occur under a government-to-government international agreement
for a cooperative project. DOD will define a standard set of terms and
conditions that will apply to all phases and activities identified in the
international agreement. Once a firm receives an initial license permitting
it to participate in some aspect of the project covered by the international
agreement, it would need additional licenses only for activities that exceed
the standard terms and conditions and/or exceed Congressional notification
thresholds, to add new end users or participants, and/or to expand the
participation of existing end-users or participants. Exports and re-exports
to and among the approved end-users would require no additional licenses.
Data Extorts for Acquisitions, Teaming Arrangements, Mergers, Joint Ventures
and Similar Arrangements: A single, comprehensive export authorization
to permit qualified U.S. defense companies to exchange a broad set of
technical data necessary for teaming arrangements, joint ventures, mergers,
acquisitions, or similar arrangements with qualified foreign firms from
NATO, Japan or Australia. Unlike export authorizations for marketing, this
authorization would cover the much broader range of technical data needed to
assess with some degree of depth and transparency opportunities for such
the Use of Multiple Destination Licenses: Try to increase use of
multiple destination licenses, that permit U.S. firms to market specific
products to specified end-users for specified end-uses. Using this license
establishes a de facto sales territory, since there is a presumption of
approval for sales to those end users that were approved for marketing.
the Use of Overseas Warehousing Agreements: Try to increase the use of
overseas warehousing agreements that permit U.S. firms to export large
numbers of items (like spare parts) to a foreign company (including U.S.
subsidiaries incorporated overseas.) The warehousing agreement authorizes
the foreign company to re-export the parts to a list of pre-approved
end-users. for specified end-uses.
License Review for NATO: Expedite USG review of export licenses for
Defense Capabilities Initiative (DCI) projects or programs.
Embassy Licensing Program: Expedite USG review of licenses submitted by
the governments of NATO countries, Japan and Australia via their embassies
in Washington, D.C., for end use by the requesting government.
Export License Electronic Control Process: State and DOD will enhance
computer connectivity between DOD and DTC to permit greater and more timely
exchange of data on license applications.
of ITAR Exemption to Qualified Countries: An ITAR exemption would be
extended to countries that share with the United States congruent and
reciprocal policies in export controls, industrial security, intelligence,
law enforcement, and reciprocity in market access. This exemption would be
limited to unclassified exports to the foreign government and to companies
who are identified as reliable by the U.S. government in consultation with
the foreign government. This exemption would be contingent upon
establishment of appropriate international agreements on end use and
retransfer of defense items, services and technical data and on close
conformation of essential export control principles. It is envisioned that
the UK and Australia are the two countries most ready to take advantage of
Services Exemptions for Maintenance and Maintenance Training: Create a
new ITAR exemption for increased levels of maintenance services and
maintenance training for NATO countries, Japan and Australia, if such
repairs provide no upgrade to the equipment’s original capability and do
not include the transfer of manufacturing designs, information or know-how.
for DOD Bid Proposals: This proposal will permit U.S. firms to export
certain technical data and services in support of DOD bid proposals without
Effective Use of Existing ITAR Exemptions by DOD: DOD will clarify how
DOD Components should use existing ITAR exemptions that are available to
Licensing for COMSAT Components/Technical Data: This proposal will
streamline the licensing process for parts and minor components and limited
technical data needed to bid on projects and respond to insurance requests
on COMSATS. This process will minimize the number of licenses needed to
support COMSAT programs where all the parties to the programs are NATO
countries. The proposal has been developed by State and DOD in consultation
with U.S. industry and is intended also to fulfill the requirements of
Section 1309(a) of the FY 2000-2001 Foreign Relations Authorization Act.
Exemption for Foreign Military Sales Defense Services: This proposal
will permit the license-free export of technical data and defense services
if they are expressly authorized in a Letter of Offer and Acceptance (LOA)
and the underlying contract with a U.S. company. License free exports will
be permitted for the duration of the LOA and the underlying contract.
Re-transfer Consent for Items Sold or Granted by the USG: This proposal
will permit the retransfer of defense articles previously sold or granted by
the USG if (1) the articles are to be re-transferred only between the
governments of NATO countries, Japan or Australia which have already signed
blanket end-use and re-transfer assurances; (2) the re-transfer involved
only unclassified items that the recipient already possesses; and (3) the
re-transfer involves articles with acquisition values of no grater than $7
the U.S. Munitions List: The process would involve a four-year review
cycle, where one-quarter of the USML would be reviewed each year. The
objective would be to comport what is controlled by the USML more directly
with the Military Critical Technologies List.