DDTC released today on its website a “clarification” of the off-shore procurement rules that had been requested during the April 21, 2006 meeting of DTAG. Under § 124.13 of the ITAR, DDTC can, by means of a license, authorize transfer of technical data to foreign persons for an offshore procurement of defense articles if the various conditions of that regulation are met. DTAG requested clarification as to whether a license applicant was required to submit with the DSP-5 the procurement contract with the foreign party.

The DDTC’s “clarification” of DTAG’s question simply cites subsection (d) of § 124.13, which clearly answers DTAG’s question. Under subsection (d) that contract is submitted “at the time that it is accepted” which would be normally after the DSP-5 is granted. Indeed, it is hard to see how the parties could enter into an overseas procurement agreement for a defense article without some disclosure of technical data relating to that defense article. Thus it seems obvious — at least to me — that the license needs to precede the procurement contract.

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Copyright © 2006 Clif Burns. All Rights Reserved.
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