Export Control: New DDTC Export Requirement For Foreign Persons

• USA

• Competition, EU and Trade - Export controls and sanctions

04-11-2014

On 1 October 2014, the U.S. Department of State Directorate of Defense Trade Controls (“DDTC”) implemented a new requirement for foreign persons requesting re-export/re-transfer authorisation of defence articles where these articles are U.S. made or contain U.S. made components. This comes in the form of a letter which must be submitted by foreign persons when they are applying for a licence to re-export/re-transfer an item on the US Military List.

To be specific, any re-export/re-transfer authorisation of defence articles by foreign persons under International Traffic in Arms Regulations (“ITAR”) requires a certification letter signed by a responsible official empowered by the applicant, denoting:

0. whether the applicant or any of its senior management is the subject of an indictment or has been charged with, or convicted of, violating ITAR; or is ineligible to contract with, or to receive a licence to temporarily import or export defence articles/services from the U.S. Government; and
0. whether, to the best of the applicant’s knowledge, any party to the export has been convicted of violating ITAR, or is ineligible to contract with, or to receive a licence for re-export/re-transfer as per the above.

It should also be noted that any re-export/re-transfer requests submitted after 30 September 2014 lacking such a statement are likely to be returned without a response.

The original guidance from the DDTC can be viewed here.

This is in line with the requirement currently in place for U.S. persons requesting the same. At Appendix A, Tab 1, page 138 of U.S. guidance which can be accessed here, there is a Sample Certification Letter which applies to U.S. persons. While the sample will need to be amended to reflect the fact that the statements are being made by foreign persons, the general principles are the same.