DDTC Updates GC Guidance for Amending ITAR Authorizations for Foreign Entity Changes
The Directorate of Defense Trade Controls has updated its guidance regarding General Correspondence requests to amend existing International Traffic in Arms authorizations due foreign entity name/address changes.
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(See ITT’s Online Archives or 02/06/09 news, 09020630, for BP summary of the original guidance.)
DDTC’s updated guidance makes certain language revisions to its original guidance, including the addition of address changes to the type of changes that may be made via GC requests1, the removal of specific references to the DSP-1192, and the addition of language regarding the DSP-83 (Non-transfer and Use Certificate).
(Pursuant to 22 CFR 123.9(a), the written approval of DDTC must be obtained before “reselling, transferring, transshipping, or disposing of a defense article …to any end-user...other than as stated on the export license…” This includes the name/address change of a foreign entity on an ITAR authorization.)
Procedures for Amending ITAR Authorizations for Foreign Entity Changes
DDTC’s guidance continues to provide the following procedures for requesting an amendment to an existing ITAR authorization via a GC request as follows:
Foreign entity/documentation requirements. The GC request must be authored by the foreign entity responsible for the requested action (e.g., surviving company due to acquisition and/or merger). All applications for guidance on foreign entity name/address changes must include the following documentation.
- A GC letter (see requirements below);
- An organizational matrix/flowchart showing the current structure of the entity that is seeking authorization from DDTC regarding the name change; and
- A copy of the press release announcing the name change and/or the circumstances that led to the name change.
GC letter requirements. The GC letter must have a subject line stating “General Correspondence Notification of Foreign Entity Name/Address Change and/or Merger, Acquisition, or Reorganization.”
The first paragraph must provide DDTC with concise description of what the package includes, an explanation of the name/address change and the reason for the change, including a summary of acquisition/merger/reorganization activities that led to the change, and which clearly answers five required explanatory questions.
The GC letter must also include the following statement:
“[New name/Foreign Entity seeking authorization for name change from DDTC] now assumes all rights, responsibilities, liabilities and obligations that existed, exist or may develop regarding transferred ITAR-controlled defense articles and/or technical data. [New name] must adhere to all limitations and provisos associated with any DDTC-issued authorizations.
DDTC response guidance. Based on the answers to the GC letter questions, DDTC will provide guidance to the requesting entity, which will either be that DSP amendments are not required for DSP authorizations/minor amendments for agreements or that replacement authorizations must be obtained/formal amendments to agreements must be submitted.
As necessary, DDTC will publish a Web notice to inform U.S. authorization holders of the change.
Minor amendment for name change. An amendment to an agreement addressing only a foreign entity name change will be accepted as a minor amendment per 22 CFR 124.1(d) if the foreign entity name change has been reviewed under a GC per this guidance. The minor amendment must be submitted within 60 days of notification by the foreign entity.
Formal amendment for ownership change.If an ownership change or other transfer has taken place, a formal amendment must be submitted in accordance 22 CFR 124.1(c) and receive approval by DDTC. The DDTC response letter will state this requirement.
New DSP-83 now required. DDTC’s updated guidance now states that new DSP-83s must be executed as a result of the name and/or ownership changes, as applicable.
1DDTC’s original guidance only included foreign entity name changes.
2In September 2009, DDTC announced that DSP-119 forms may only be used to amend DSP-85 licenses, and that other license applications must be amended using the new D-Trade2 electronic amendment forms. (See ITT’s Online Archives or 09/29/09 news 09092925, for BP summary.)