On January 6, 2016, the U.S. State Department Bureau of Political Military Affairs, Directorate of Defense Trade Controls, Office of Defense Trade Controls Licensing (DTCL) published a new version of the Guidelines for Preparing Agreements (the “Guidelines”), as well as a Web notice that DTCL is seeking public comment on the Guidelines. The comments are due by February 5, 2016 and should be submitted to DDTCResponseTeam@state.gov. Additional information about the public comments is available here.
The Guidelines are prepared by DTCL in part to serve as an aid in applying the International Traffic in Arms Regulations (ITAR) and to establish a standard basis for submissions of Technical Assistance Agreements, Manufacturing License Agreements and Warehouse Distribution Agreements. They are an important and central piece of detailed guidance on a range of issues associated with implementing the complex ITAR requirements and DTCL policies applicable to agreement management, including, authorizing foreign dual national/third-country national employees, contract employees, end users, transfer territories and brokers. They also provide template agreement forms and submission instructions.
The comment period provides a welcome opportunity for businesses subject to ITAR regulations to inform DTCL of the ways in which its interpretations of the ITAR impact business and compliance activities. Companies can use this opportunity to provide comments on the Guidelines as a whole (not just the latest version).