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DDTC States Evidence of Offshore Purchase Not Required to Accompany DSP-5 Application to Export a Build-to-Print Drawing

The Directorate of Defense Trade Controls (DDTC) has issued a notice which sources state clarifies that evidence of offshore purchase is not required to accompany the DSP-5 license application to export a U.S. build-to-print drawing to be used in the foreign manufacture of defense articles.

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If the export application is approved, DDTC states that the applicant obtains an "approved" or "approved with provisos" DSP-5 license for the export of unclassified technical data - in this case a build to print drawing - to foreign persons for the offshore procurement of defense articles, in accordance with 22 CFR 124.13.

Then the applicant submits its offshore procurement bid proposal to the authorized foreign persons - which contains this technical data (the build-to-print drawing ) - and the bid proposal is accepted by one or more.

Evidence Required Once Contract, Etc. Agreed To

In accordance with 124.13, DDTC sources state that after the U.S. person selects a bid and the contract, purchase order, or subcontract is agreed to, the person in the U.S. provides DDTC with a copy of the contract, purchase order, or subcontract.

(DDTC states that the need for clarification regarding 22 CFR 124.13 was presented by the International Traffic in Arms (ITAR) Clarification Working Group Co-Chairman at the Defense Trade Advisory Group (DTAG) Plenary on April 21, 2006.)

See ITT's Online Archives or 08/24/06 news, (Ref:), for BP summary of DDTC's announcement that beginning October 12, 2006, electronic DSP-5 forms must be filed through D-Trade.)

DDTC Notice (dated 09/20/06) available athttps://www.pmddtc.state.gov/clarification_international_traffic_arms_regulations.htm