International Trade Law News

The Directorate of Defense Trade Controls (DDTC) has issued a notice on its website reminding license applicants that the Office of Defense Trade Controls Licensing (DTCL) requires a signed contract or other purchase documentation to be submitted with any application for the permanent export of defense articles. The notice indicates that "DTCL has received with increasing frequency supporting documentation that calls into question whether the applicants are in a position to fulfill their responsibilities as registered exporters and, in fact, whether anyone at the companies could meet the obligations as empowered officials" under the ITAR. In such cases, the notice states that the license applications have been returned without action (RWA). The notice indicates that the purchase documentation must be from the foreign party purchasing the defense articles and not from an exporter's foreign U.S. subsidiary. DDTC has stated that all applications submitted after September 16, 2005 that are not in compliance with this requirement will be Returned Without Action. In the interim, DTCL will consider applications on a case-by-case basis and determine whether they may be approved pending full implementation of this requirement. The complete text of the notice can be viewed at the following link: http://pmdtc.org/license_support.htm.

Labels: DDTC, Export Controls