Defense Trade Security Initiative:
Major Program Authorization
Fact Sheet Released by the Bureau of Political-Military Affairs,
U.S. Department of State and the Office of the Undersecretary of Defense for Acquisition, Technology, and Logistics, U.S. Department of Defense
Washington, D.C., May 24, 2000In recent years, a substantial reduction in defense funding, global competition and the teaming of U.S. and European defense firms has led to increased demand for cross-border co-development, manufacturing and procurement licensing.[end of file]
Achieving a clear line of supply for defense articles and services is fundamental to the U.S./European promotion of transnational defense cooperation. To promote this circumstance, the USG has developed a Major Program Authorization designed to provide U.S. industry a mechanism that will significantly limit the number of instances that they will need to seek an approval from the USG in order to export defense articles. This will facilitate an Allied government‚s procurement of a U.S. defense firms‚ technologies for use in integration, manufacturing or co-development and production of defense articles.
The USG is prepared to provide to a single registered U.S. exporter a comprehensive authorization for a well-defined commercially developed "major" program (including the required hardware, technical data, defense services, development, manufacturing, and logistical support) at the inception of a U.S. sanctioned program with a NATO government, Japan and/or Australia. In such instances, licenses will have a duration not to exceed eight years, (currently licenses are valid for a maximum duration of four years); and the exporter must establish a plan for recordkeeping and auditing all phases of the program. The participating single registered U.S. exporter will be required to define in advance the parameters of a broad commercial program for which the registrant will be providing all phases of the necessary support (including needed hardware, technical data, defense services, development, manufacturing, and logistic support). Foreign end-users will be required to conform to the conditions of approval regarding end-use, end-user, and USG retransfer approval. If acceptable, the Office of Defense Trade Controls (ODTC), U.S. Department of State, will provide a comprehensive authorization for the subsequent phases of the program to include temporary import, permanent and temporary export of defense articles, including technical data and defense services.
The U.S. exporter would only need to seek additional approvals when program activities extend beyond the original approved parameters. In such cases, the USG will instituted an amendment process. It is anticipated that these authorizations will assist in expediting the licensing of a broad range of ventures, including co-development projects for defense articles to be commercially developed in anticipation of the potential marketing and sale to foreign and U.S. governments.
Bureau of Political-Military Affairs
Department of State