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Technical Data Exports for Acquisitions, Teaming Arrangements, Mergers, Joint Ventures and Similar Arrangements

It is within the policy of the U.S. Government (USG) to support teaming arrangements between U.S. and foreign defense companies. To that end, the USG is prepared to issue comprehensive export authorizations that permit well-known U.S. defense companies to exchange a broad set of technical data - Technical Data Exports (TDEs) with qualified firms from NATO, Japan, Australia or Sweden. Once granted, the aforementioned authorization would cover a much broader range of technical data than, for example, a marketing license (Multiple Destinations Marketing Licese or MDML). However, a TDE application will require a greater level of specificity than the one for an MDML. Accordingly, U.S. exporters seeking such authorization must provide detailed information concerning a projected cooperative arrangement, joint venture, merger or aqcuisition, including any planned exports of defense articles, defense services, and technical data. 

Thus, a U.S. participating firm is free to determine the limit of technical data involved in the blanket authorization for a certain program. At the same time, when applying for a TDE, the firm will need to identify the type of technical data involved,  describe the proposed program or project, approximate its value, and provide a comprehensive description of all of the project's phases or stages. Once granted, a TDE authorization will be valid for the duration of the U.S. company's cooperation with the specified foreign company. However, when applying, the firm must provide the project's anticipated duration, within permissible limits. In addition, the firm will need to provide a plan for record keeping and auditing of all phases of the program or project. 

Applications for TDEs authorization should be submitted to the Office of Defense Trade Controls.

April 15, 2008

   

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