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DDTC agreements

In addition to issuing export licenses, U.S. State Department’s DDTC also reviews and approves agreements between U.S. companies and foreign companies that involve the transfer of technical data and/or distribution rights of hardware.  Agreements in themselves do not authorize hardware exports but exports of hardware can be covered in the scope of the agreement and authorized by subsequent DSP-5s. There are three types of such DDTC agreements: Technical Assistance Agreements (TAAs), Manufacturing License Agreements (MLAs), and Warehouse Distribution Agreements (WDAs). There are no U.S. Commerce Department BIS “agreements” as technology exports are covered by BIS74P licenses.

 

A TAA should be obtained if a U.S. company wishes to share technical data with a foreign company or if they will be performing defense services to a foreign party. A MLA grants a foreign company access to manufacturing know how of a defense article to be manufactured abroad. A WDA allows a foreign company to serve as a distribution point for defense articles for an approved sales territory.

 

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