Trade Law Daily is a Warren News publication.

DDTC Updates License Review Policy for Certain Exports of Guided Weapons

The State Department updated its review policy for approving certain exports of precision-guided weapons to better ensure the items will not be used to harm civilians or abuse human rights. The change will affect license application reviews for direct commercial sales (DCS) of U.S. precision-guided munitions (PGM), the Directorate of Defense Trade Controls said this week, which will better align the review policy for DCS with the agency’s Foreign Military Sales (FMS) program.

Sign up for a free preview to unlock the rest of this article

Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.

Although export licenses subject to this policy will continue to be reviewed case by case, DDTC said it will now review steps taken by the foreign government end-user to ensure the exported weapons, components, data and any services will be used appropriately. This will include an examination of the end-users’ “advanced target development” (ATD) infrastructure, which includes their ability to “select the correct munition to achieve a specified level of effect,” to “accurately predict collateral damage” on civilians and to “increase the accuracy of the munition.”

DDTC said this review will help foreign governments and end-users obtain a “more complete suite of targeting infrastructure,” which will “permit greater interoperability, increase operational effectiveness, and provide greater target discrimination.” The review will also “ensure an equivalent standard of review” for PGM exports, regardless of whether they are transferred through DCS or through the FMS program.

DDTC may make exceptions to the review policy in “extenuating circumstances” in which the export would help reduce civilian harm. “No action will be required on the part” of the U.S. applicant, it said, adding that exporters will not be required to provide “evidence” of an end-user’s ATD infrastructure when applying for a license. The technical data and support for a “valid ATD solution” will “need to be refreshed” after five years.

The agency said it is “committed to identifying the appropriate solutions for partners to employ precision munitions in the most effective manner, including through practices and use of technologies that can minimize collateral damage and mitigate harm to civilians.”

The review policy will apply to a range of PGMs, components and other items that are “most likely” to be controlled under categories III, IV, V and XI of the U.S. Munitions List, DDTC said. PGMs captured under the policy include “air-to-surface and guided indirect fire surface-to-surface munitions” 105mm in diameter and larger, including those that employ the following features: coordinate-seeking/feature-seeking, laser-guided, infrared/electro-optical, radar-seeking and stand-off munitions. Controlled components are computer control groups, programmable fuse assemblies and tail/wing kits.

Technical data captured by the review policy includes information “other than software” required for the design, development, production, manufacture, assembly, operation, repair, testing, maintenance or modification of the controlled defense items. The policy will also apply to a range of defense services, including activities related to design, development, engineering, manufacture, production, assembly, testing, repair, maintenance, modification, operation, demilitarization, destruction, processing or use of the defense items.