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 volume of the expiration of the MLA or TAA (as well as any reservations, conditions or other restrictions in the agreement) continues to restrict which parties can participate in the ITAR-controlled activity upon expiration of the agreement and what those parties can do. All new parts (for example. B customers or end-users, foreign beneficiaries, sub-licences or new foreign sites for these parties) or any new activity (e.g. B the use of previously provided technical data or know-how to manufacture a new defence item) may require additional authorization from DDTC. These new FAQs usefully illustrate the rights and duties of non-Americans. Individuals who have received technical data or defense services from the United States person under a TAA or MLA after the expiration of these agreements, but leave some additional outstanding questions that will hopefully be addressed in future updates. Many of these clarifications are welcome and offer flexibility to non-Americans. People who manage their activities after the end of the participation of the American party. This reflects DDTC`s recognition of the emergence of offshore manufacturing and complex international supply chains, even in the context of sensitive defence items. On March 31, 2020, the DDTC released five new Frequently Asked Questions (FAQs) to clarify the rights and obligations of non-U.S. nationals. A person who has received technical data or created defense items according to a TAA or MLA that has just expired.

These FAQs generally provide that non-U.S. parties can continue the activities authorized in the agreement that has just expired without additional authorization, but there are two essential exceptions. First, non-U.S. parties to an MLA can no longer produce defense items from the U.S. upon expiration of an MLA without additional authorization from DDTC, using technical data. The FAQs state that non-U.S. parties can obtain this authorization through a GC without the U.S. party participating.

Second, the U.S. party must extend the deal if it wants to continue providing defense services. 1) The continued use and exchange of technical data between non-US parties and the continuation of production by non-US countries It is interesting to note that not all FAQs concern the extension of reserves and retrocession conditions after expiration. For example, they are explicitly mentioned in the FAQ on the transmission of technical data, but not in the FAQ on transfers of defence items. An open question is therefore whether DDTC intends to lift the reservations and retrocession conditions for z.B. the transmission of material or if the FAQs have been formulated inconsistently, but with the intention that the reservations and conditions of retrocession apply to all activities discussed in the FAQs after the expiry of the contract. The International Traffic in Arms Regulations (ITAR) states that a U.S. person must obtain authorization from the Directorate of Defense Trade Controls (DDTC) to provide defense services to a non-U.S.

person. No one. This authorization often involves an agreement between the parties, with conditions largely dictated by DDTC. Two of the terms that must be included in such agreements are the following: some grey areas remain, for example. B if continued production would require, in a given case, continued „use“ of the technical data controlled by the ITAR, beyond the continued use of the technical data, the DDTC in these FAQs for other purposes (e.g. B design, development, etc. and engineering). . . .