On August 11, 2016, the Directorate of Defense Trade Controls (DDTC) announced its newest revision to the Guidelines for Preparing Agreements, which will become effective September 1, 2016. The changes will bring the Agreement Guidelines in line with certain revisions to the International Traffic in Arms Regulations (ITAR) that will also take effect on September 1, 2016.
Highlights of the changes:
- Various sections of the Agreement Guidelines have been updated to reflect the new definitions for the terms “export,” “reexport” and “retransfer” that will go into effect on September 1.
- Revision of Section 3.5: Dual/Third Country National (DN/TCN) to remove § 124.16 from Option 2, add references to § 126.18(d) in Option 1, redact the term “retransfer” from the guidance and required statements, remove country of birth as a consideration when vetting DN/TCNs via Option 2, update the required agreement statements for DN/TCN requests pursuant to § 124.8(5), and remove the optional agreement statement for § 126.1 non-(a) TCN requests.
- The required statements throughout the Agreement Guidelines are updated, including the statement on sublicensing to U.S. Persons, the required statements for DN/TCN requests pursuant to § 124.8(5), and the § 124.8(5) verbatim clause.
- Templates in Appendix A are updated to remove the § 124.12(a)(10) statement from the transmittal letter, remove the § 124.16 statement from the agreement, and update the required statements mentioned above.
Note: Applicants are not required to submit an amendment for the sole purpose of updating these statements or removing the § 124.16 statement. However, the statements must be updated at the next major amendment. All agreement/amendment applications submitted after September 1, 2016, must include the new required statements, if applicable. If an old statement is used, a proviso will be added instructing the applicant to change it prior to execution. Applicants may begin using the new statements prior to September 1.
The templates in Appendix A have been updated to: – Remove the § 124.12(a)(10) statement from the transmittal letter – Remove the § 124.16 statement from the agreement – Update the mandatory statements listed above.
Revised Guidelines: http://www.pmddtc.state.gov/licensing/documents/agreement_guidelinesv4.4.pdf
Summary of Changes: http://www.pmddtc.state.gov/licensing/documents/agreement_guidelines_preamblev4.4.pdf
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