By: Anna Barone
These updates impact the identification of electronic agreements and a new section on LDAP code changes. The updates are below.
· Pursuant to §122.4, a registrant must notify the Directorate of Defense Trade Controls (DDTC) of all material changes to their registration file. These changes include restructuring, merger/acquisitions and/or registration code consolidations.
· Per §122.4(c)(3), the licenses affected by these changes must be identified via a list to DDTC. Any licenses not identified on the list will be considered invalid. Per §122.4(c)(4), affected agreements require an executed amendment for a U.S. entity name change within 60 days of notification. Any agreements not so amended will be considered invalid.
Amending existing authorizations because of a name/address or registration code change can impact a large number of licenses and involve many hours of work for both the U.S. Government and the applicant as well third-party license holders. Recently, DDTC has moved to utilizing General Correspondence (GC) requests to approve and document U.S. entity name/address and registration code changes. The GC covers approval for both DSP licenses and agreements. This was done as a way to reduce the administrative burden on industry and DDTC in processing such amendments.
The guidelines that follow offer a procedure to make this process more efficient while ensuring the integrity of the historical database and all requirements are met.
· Timing: The GC request should be submitted within 60 days after the Directorate of Defense Trade Controls-Compliance (DTCC) approval/acknowledgement of the change.
· Registrant Requesting Name/Address or Registration Code Changes: The registrant notifying DDTC of the change is responsible for submitting a GC for U.S. entity name/address and/or registration code changes. All requests for the transfer of licenses and agreements must include the following documentation.
1) A letter identifying the requested changes
2) §126.13 certification letter
3) Copy of the DTCC’s letter acknowledging the requested change(s), if issued
4) Matrix/spreadsheet of authorizations to be transferred
The GC request must provide:
· A subject line clearly stating the GC request is to amend export authorizations due to restructuring, merger/acquisition and/or registration code consolidation.
· DDTC with concise description of the proposed transaction, in particular identifying the registrant code of the acquiring company and the registration code of the company being acquired.
· A list of the submitted documentation and specifically state if a DTCC letter is attached.
· The following statement for the amendment of agreements as a result of mergers and acquisitions. If no executed amendment is required (such as registration code change only) then this statement is not necessary: “Modifications to the existing agreements submitted as part of this letter are specifically limited to a change to the registration code and/or to the U.S. entity name as a result of an approved merger or acquisition, and are signed by the new U.S. entity, the former U.S. licensor and the foreign licensee(s). Any other modifications will be requested through a proposed amendment in accordance with §124.1(c) or (d).”
The spreadsheet/matrix must include the following information for each authorization:
1) Type of authorization (TA, MA, DSP-5, DSP-73, etc.)
2) License or agreement number (for paper agreements, the last approved amendment should be identified; for electronic agreements the DSP-5 vehicle number for the last approved amendment should be identified)
3) Country/s of export
4) Unshipped value for licenses/total value for agreements
5) Disposition of authorization (Approved or Pending Approval)
6) Date of Authorization Expiration
7) State Y or N if an executed amendment is required, for agreements only
More Information: http://pmddtc.state.gov/licensing/documents/gl_GCsUSu.pdf
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