Answer #1: Yes, the continued use and exchange of technical data received by a TAA between previously authorized recipients for the same authorized end-use is in principle permitted even after the termination or expiry of the contract. All transfer conditions or conditions applicable to technical data approved under the TAA continue to apply. However, if the activity requires the provision of a defence service by a U.S. person, a separate DDTC authorization would be required. The agreements under the International Traffic in Arms Regulations (“ITAR”) serve as a licensing tool for the transfer of defence, technical data, manufacturing know-how and defence services between a U.S. and a foreign party. Compliance with the requirements of these agreements is an important element of ITAR compliance, as evidenced by the most important recent approval agreement of L3Harris Technologies, Inc. (“L3Harris” or “The Enterprise”) with the U.S. State Department(“State” Directorate of Defense Trade Controls (DDTC). It is important that DDTC enter into an approval agreement with L3Harris in the fall of 2019 for alleged violations of the Arms Export Control Act (“AECA”) and ITAR. One of the 131 alleged ITAR offences contained in the proposed royalty letter was “violation of licence conditions and agreements.”  In particular, the company breached the terms and conditions of the TAAs and GWGs by not submitting: 1) the first export reports;  2) of the agreements reached;  3) annual status declarations;  4) a written statement on the agreements reached;  and 5) annual sales reports;  not only the non-disclosure by DDTC of unsigned agreements.
 In two new FAQs, DDTC states that once an applicable GW or TAA expires, the non-U.S. is not in the United States. Parties may continue to use and exchange itAR-controlled information and know-how and the know-how they have received, but any other technical assistance or technical data controlled by THE US parties would require further approval from DDTC. However, there are funds that, in certain circumstances, do not have a renewed GG or AAT that may meet the requirement for the U.S. parties to authorize an expired agreement. B such as the search for a DSP-5 licence for “limited” defence services or the use of an administrative waiver. For example, Section 125.4(b) (4) of ITAR authorizes a U.S. party to provide the same recipients with copies of certain types of previously authorized technical data. Another exception in 125.4 b) (5) applies to “basic” operations, maintenance and training information relating to a defence item that has already been legally exported or authorized to be exported to the same recipient. Certification and registration requirements apply and there are some instances where these exceptions cannot be used.
Companies should also carefully consider the language used by DDTC in these two FAQs and indicate that this ITAR-controlled activity can only be pursued “among the same foreign signatories, sub-licenses and end-users” and “for the same authorized end-use.” Therefore, the scope of the expiry of the LPI or TAA (as well as all restrictions, conditions or other restrictions of the agreement) continues to restrict the parties who may participate in the activity controlled by THE ITAR at the expiry of the agreement and what those parties can do. Any new part (for example. B customer or end user, foreign beneficiary, sublicensing or new foreign site for these parties) or any new activity (. B for example, using the technical data provided previously or the know-how required to manufacture a new defense item) may require additional authorization from DDTC.