Agreement
Preparation
An Agreement is a form of export authorization issued by the U.S. Department
of State, Directorate of Defense Trade Controls (DDTC). DDTC requires them
when companies will be engaging in the provision of Defense Services to a
foreign entity. There are several different types of agreements depending on
the specifics of the transaction or activity and they can be complex
documents to prepare.
Agreement Types:
• Technical Assistance Agreement (TAA)
• Manufacturing License Agreement (MLA)
• Warehouse and Distribution Agreement (WDA)
An agreement approved by DDTC is required for a U.S. person to provide a
defense service or manufacturing know-how to a foreign person, or establish
a distribution point abroad for defense articles of U.S. origin for
subsequent distribution to foreign persons. The export or temporary import
of defense articles (technical data or hardware) may be covered in the scope
of an agreement as well, but the provision of a defense service, transfer of
manufacturing know-how, or establishment of a distribution point abroad is
what distinguishes an Agreement from other forms of authorizations issued by
DDTC.
In preparing Agreements, companies need to be aware of a myriad of complex
subjects which must be addressed in the application. Issues such as:
• Duration and Expiration
• Sublicensing
• Third/Dual Country Nationals
• Processing Times
• Amendments, Minor/Major
• Valuation
• Contract Employees
• Re-Baselining
• Electronic Submission (DSP-5 “vehicle”)
• Arbitration Related Agreements
• Space Related Agreements
• Insurance Related Agreements
• Hardware in Furtherance
• Provisos and Limitations
• Execution and Termination
• Congressional Notification
• Supporting or Supplemental Information
ITC Strategies has extensive experience with DDTC Agreements.
Whether it is in preparing Agreements for submission to DDTC, scoping
Agreements to ensure all activities are properly covered, or managing
existing Agreements over the life of a program, we can assist.
