DDTC Posts New Open General Licenses, Fact Sheet
The State Department’s Directorate of Defense Trade Controls posted its two new open general licenses on its website and issued a fact sheet to describe the new pilot program (see 2207190008). Open General License No. 1 and Open General License No. 2 will be valid for one year -- Aug. 1 through July 31, 2023 -- as DDTC tests the “viability and appropriateness of the open general license concept.”
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The agency said it’s “continuously” looking for ways to “further the development and maintenance of an effective modern and agile export control system,” including to better facilitate “legitimate defense trade” with close trading partners. The agency added that the licenses are similar to mechanisms used by Australia, Japan, the U.K. and other allies.
DDTC stressed that the licenses can’t be used to export defense articles and authorize only certain reexports and retransfers. “These [licenses] are designed to support the mission readiness of our allies by facilitating defense trade activity related to the maintenance, repair, and storage of unclassified defense articles deployed or in-inventory rather than supporting new acquisitions or capabilities,” the agency said. The fact sheet also includes a table outlining the differences and similarities between the two licenses, such as which activities they authorize, which defense articles are eligible under each, the permitted end-uses, various “use requirements” and other limitations.