Comments on: U.S. Export License Requirements Delay Sale of Radar Parts to U.S. Navy

By: Evelyn Morales

Evelyn Morales — Fri, 25 May 2007 17:42:03 +0000

Hmmm. Makes sense. I had to read it through a few times, but I understand. Thanks.

By: Clif Burns

Clif Burns — Fri, 25 May 2007 13:51:18 +0000

Except that only applies to U.S.-origin parts “incorporated into a foreign defense article.” As I understood the story the parts were never incorporated into the Malaysian article. Even if they had been, 123.9(e) also seems only to cover the re-export of the parts as part of the foreign defense article.

By: Troy

Troy — Fri, 25 May 2007 13:40:46 +0000

What about the exemption 123.9(e)? If these parts meet the requirements, EADS would just have to notify the DDTC in writing within 30 days of the retransfer or re-export. The US is a NATO country.

By: Clif Burns

Clif Burns — Fri, 25 May 2007 01:02:24 +0000

Actually, Evelyn, it’s a little more complicated than that.

The USMIL/BATF list governs permanent imports and the USML/DDTC list covers temporary imports as well as permanent and temporary exports and reexports. If a reexport is also a permanent import into the U.S. and the item is on both the USMIL and the USML then both an import permit from BATF and a reexport license from DDTC would be required. A reexport, even into the United States, will require a license regardless of whether something is on the USMIL list or not

In the case cited by Enders, only a DDTC re-export license was required because the item was on the USML only and not also on the USMIL. Even if it had been on the USMIL, there is an exemption, under 27 CFR § 447.2(c) for imports for the use of the United States or its agencies.

Does that clear things up?

By: Evelyn Morales

Evelyn Morales — Thu, 24 May 2007 23:24:43 +0000

So just to clarify, if your USML product is being permanently imported back into the US and is NOT identified on the BATF list, a retransfer request must be submitted to DDTC?

By: Clif Burns

Clif Burns — Thu, 24 May 2007 22:01:00 +0000

Military imports that require licensing are listed on the United States Munitions Import List, 27 CFR §447.21, and require a permit from BATF. Radar parts aren't on that list.

By: Shawn Wheatfill

Shawn Wheatfill — Thu, 24 May 2007 21:43:48 +0000

I found no supporting documentation for an permanent import license either – radar is not a listed category for articles that qualify for permanent import of USML or International Munitions List items. I referenced 27 CFR Parts 47, 178, 179.

A situation never dealt with to have the ITAR updated. Perhaps, this would be that time.

Thanks for the blog postings. Most enjoyable reading.