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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.