IMPROVING TRANSFERS RELATIVE TO GOVERNMENT-TO-GOVERNMENT PROGRAMS.  The fourth main area deals with streamlining government-to- government programs.

15. ITAR Exemption for FMS Defense Services
    This initiative revises the ITAR regulations to provide exemptions for defense services under FMS.  In the past the ITAR provided exemptions for exports made pursuant to FMS programs providing defense articles but not defense services.  This was due, in part, to concerns regarding liability issues in prime and subcontractor relationships over duration and scope.  The Letter of Offer and Acceptances (LOA) were geared to primarily cover hardware.  As a result of defense services not being exempted under the ITAR, U.S. firms supporting USG defense service programs were required to have the foreign government sign a no-cost Technical Assistance Agreements (TAA) so that the firm could apply for an export license.  This initiative resolves these problems.
FACT Paper
Q&As

16. Advance Retransfer Consent for USG Sold or Granted Items
    This initiative expands a similar initiative that was originally offered several years ago on advance retransfer consent for USG sold or granted items.  It eliminates the need for the USG to request from FMS retransfer recipients, end-use assurances, if the retransfer recipients have a signed blanket assurance.   While there are additional Congressional reporting requirements levied on both the U.S. and recipient countries to ensure proper accounting and transfer of U.S. origin equipment, the expected benefits of the initiative will be more participation within the "target" countries.
FACT Paper
Q&As

17. Periodic Review of the U.S. Munitions List
    This initiative provides a mechanism for the U.S. Munitions List to be reviewed completely every four years by requiring sections of the USML to be reviewed on an annual basis.  The reviews will be designed to ensure that the USML contains the proper listing of important technologies and defense articles that the USG needs to ensure are properly protected and controlled.  By conducting timely reviews the USG seeks to maintain, update, and modify the list of important technologies which will ultimately eliminate the requirement for companies to submit some export license applications.
FACT Paper
Q&As

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