Itar Consent Agreements

On September 19, 2019, the U.S. Commercial Defence Controls Directorate (DDTC) entered into an approval agreement with L3Harris Technologies, Inc. (“L3Harris”) for alleged violations of the Arms Export Control Act (“AECA”) and the International in Traffic Arms Regulations (“ITAR”). L3Harris, an aerospace and defence technology company, allegedly committed offences involving the unauthorized export of defence articles and technical data, as well as failure to provide accurate and complete reports and licensing violations. [1] Another important indication of L3Harris` approval agreement is that DDTC`s investigation is based on advice from a DoD agency, DTSA. Companies should be aware that regulators within different executive departments can and will be able to communicate with each other in order to pursue the objectives of joint export controls. When DTSA contacts DDTC, DDTC may also contact the Department of Commerce`s Office of Industry and Security (“BIS”) on matters within the agency`s jurisdiction. ITAR approves three types of licensing agreements: 1) the Technical Assistance Agreement (“TAA”); 2) the Manufacturing License Agreement (“MLA”); and 3) the storage and distribution agreement (“WDA”); Collectively referred to as “ITAR agreements.” [1] For each ITAR license or agreement, you must have an internal plan that entrusts responsibility for the management of the license, including verifying the export of the equipment and technical data for compliance with the scope of application; Tracking the collection of agreement and amendment signatures; Obtaining all necessary confidentiality agreements and sales reports and submitting necessary reports or documents to the Department of Foreign Affairs; keep records of all exports of defence equipment, technical data and services. Equipment exported under a temporary licence (DSP-73) must be monitored in accordance with the licence forecast and return process. In an approval agreement signed by R. Clarke Cooper of the State Department on September 19 and Bill Brown, the chief executive of L3Harris, on September 17, the State Department notes that Harris shared many of the problems through voluntary revelations. However, the department also writes that the company did not voluntarily disclose other cases “to include the offences that the department has disclosed.” Once the agreement is fully implemented by all parties, a copy of the ITAR agreement must be filed electronically with DDTC/DTCL within 30 days of its entry into force.

[9] Note that this is one of the ITAR agreement notifications that L3Harris has not concluded.