Law Firm: Saudi Arabia to Get ITAR Flexibility From Major Non-NATO Ally Designation
The Trump administration's November designation of Saudi Arabia as a major non-NATO ally is set to streamline requirements related to direct commercial sales of defense articles, especially space-related activities subject to the International Traffic in Arms Regulations, DLA Piper said in a client alert.
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Because of the designation, the law firm said, the State Department's Directorate of Defense Trade Controls is no longer required to apply special export controls that had covered certain shipments and services related to space systems and space launches in or by nationals of Saudi Arabia, "though DDTC retains the discretion to apply such special controls." It also said U.S. exporters of certain specifically designed or modified parts, equipment, technical data and other items related to commercial communications satellites can now use the ITAR 123.27, the special licensing regime for commercial communications satellite components, "expedited approval process to export such defense articles to" Saudi Arabia.
The law firm stressed that DDTC hasn't yet published a rule in the Federal Register to reflect those changes. "However, the announcement that [Saudi Arabia] has been designated a major non-NATO ally signals that additional flexibilities under the ITAR will be made available for those conducting space-related direct commercial sales defense trade with" the country.