CREATION OF NEW LICENSE AUTHORIZATIONS: The first four initiatives deal with the U.S. commercial export process and create three new license authorizations: Major Program Authorization, Major Project Authorization and a Global Project Authorization.
1. Major Program Authorization.
This
single comprehensive authorization, issued at the start of a U.S. Government
(USG) -sanctioned program, will target the U.S. firm as the original equipment
manufacturer (OEM). It will include information regarding hardware,
technical data, defense services, development, manufacturing, and logistical
support and can be approved for the duration of the program, up to 10 years,
unlike the current maximum duration of four years for hardware licenses.
The new initiative will allow the USG to license major programs upfront,
rather than by piecemeal. Once a U.S. firm is approved for a Major
Program Authorization license, it is only required to seek additional approvals
when activities/transactions extend beyond their original parameters.
FACT
Paper
Q&As
2. Major Project Authorization.
This comprehensive
authorization is issued to one or more registered U.S. prime contractors
for a major project such as a foreign government commercial competition.
In order to obtain a license, the registered U.S. contractor must describe
the scope of the program to include the following: 1) information
regarding other companies direct contact with the foreign customer to include
other exporters with whom the applicant has "teamed-up" subcontractors;
2) data to be released; 3) services to be performed; 4) the hardware
or software to be exported; whether the program is an off-the-shelf buy;
and how the program will be assembled or co-produced. As part of
its review, the USG will develop a set of standard terms and conditions
corresponding to the parameters provided by the applicant that will govern
all aspects of the transaction known at the time.
FACT
paper
Q&As