DDTC Revises FAQs on Licenses in Furtherance of Agreements and Rebaselines

DDTC Revises One Answer in FAQ on Licenses in Furtherance of Agreements

In its FAQ on licenses in furtherance of agreements, DDTC has revised its answer to the question of whether the agreement/amendment authorizing hardware has to be executed prior to submission of a license to read as follows:

"The agreement/amendment does have to be approved by DDTC prior to submission of the license application. The agreement/amendment authorizing the hardware requested for export does not have to be executed in order to submit a license application. Proviso 3 of an agreement approval letter prohibits the shipment of the approved hardware prior to the execution of the authorizing agreement/amendment."

(See ITT's Online Archives or 05/12/08 news, 08051220, for BP summary of the DDTC updating its guidelines and FAQ on licenses in furtherance of agreements.)

DDTC Revises One Answer in FAQ on Rebaselines

In its FAQ on rebaselines, the DDTC has revised its answer to the question of whether currently approved DSP licenses will remain valid under the new agreement to read as follows:

"Under normal circumstances, DDTC considers approved DSP licenses granted "in furtherance" of an agreement to remain valid until the approved agreement is terminated or expires, at which time all associated licenses will also terminate or expire. However, in this case, DDTC will not consider the rebaselining activity to either terminate or expire the older agreement; rather, DDTC will consider the previously approved export licenses granted "in furtherance" of the older agreement to be included in the scope of the rebaseline. The procedures outlined in the Guidance for Agreement Rebaseline requires the applicant to identify the value of their currently approved licenses when valuing the agreement rebaseline. This is detailed in the way the (a)(6) table of the rebaseline application must be in three column "amendment" format and must identify the amount of currently approved hardware licenses and include that value in the rebaseline "Total Hardware" value field.

When issuing the approval for a rebaselined agreement, DDTC will include a hardware proviso that limits hardware to a total value of that requested, including all exports to date under the older agreement (specifically identified by agreement number). DDTC considers this linkage in the proviso to "keep alive" all those previously issued license until their natural 4-year expiration date without the need to amend them to include reference to the rebaselined agreement number. This decision will also impact the support documentation required for future licenses "in furtherance" of the rebaselined agreement. Specifically, the table of prior approvals required under the updated Guidance for Exporting Hardware "In Furtherance" of Agreements must include the licenses issued under the older agreement as well as any that were granted under the rebaselined agreement."

(See ITT's Online Archives or 05/06/08 news, 08050625, for BP summary of the DDTC posting guidance and a FAQ for agreement "rebaselines.")

DDTC Web Site Also Lists Three Other, Unrevised FAQs

The FAQs on commodity jurisdiction, DSP-73 and DSP-61 support documentation, and notice on license support documentation, which also appear on the DDTC's FAQ Web site, are unchanged from their most recent postings. (See ITT's Online Archives or 05/02/08, 05/05/08, and 05/21/08 news, 08050235, 08050545, and 08052112, for BP summaries of the DDTC posting new guidelines, FAQs, forms, etc. on commodity jurisdiction, DSP-73 and DSP-61 support documentation, and license support documentation, respectively.)

DDTC FAQs (updated 07/02/08) available at http://www.pmddtc.state.gov/faqs_defense_trade.htm

BP Note

DDTC has also updated its outreach information on requesting a DDTC speaker or attending a DDTC in-house seminar.

DDTC Outreach information (updated 07/03/08) available at http://www.pmddtc.state.gov/ddtc_speakers.htm