Warehousing and Distribution Agreements

In the situation when a foreign allied state faces unanticipated requirements for spare parts - for example, in support of coalition operations - a U.S. exporter of spare parts may not be able to provide timely supply if required to obtain new export licenses for each individual transfer. In such situations, the U.S. Government is prepared to authorize a special single comprehensive license, that would allow a U.S. company to export an entire product line over eight years to a specific company for foreign warehousing and distribution. The arrangement will authorize the warehouse distributor to make rapid turnaround sales of defense articles by re-exporting them to a pre-approved list of countries and end users.

Note that t he U.S. Government envisions Warehousing and Distribution Agreements to be limited to unclassified defense articles - primarily spare parts.

Proposed Warehousing and Distribution Agreements should be submitted to the Office of Defense Trade Controls and should contain a description of the defense articles, a detailed statement of the terms and conditions under which the defense articles will be exported and distributed, the duration of the proposed agreement, and specific identification of the countries that would comprise the distribution territory. Note, that distribution within the scope of a Warehousing and Distribution Agreement must be limited to the governments of pre-approved countries or to private entities that seek a government defense contract within the pre-approved distribution territory. Exported defense articles may not be resold, diverted or transferred to a third country outside the pre-approved territory without the prior written approval of the U.S. Department of State.