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Clarification on Export License Changes for Military Aircraft and Gas Turbine Engines

Tuesday, November 29, 2016
Sandler, Travis & Rosenberg Trade Report

The State Department’s Directorate of Defense Trade Controls has posted to its website guidance regarding licenses or authorizations for a “narrow range” of military aircraft and gas turbine engines that were previously subject to the Export Administration Regulations but will become subject to the International Traffic in Arms Regulations as of Dec. 31 under a DDTC final rule revising categories VIII and XIX of the USML.

DDTC states that with respect to the affected articles (which relate primarily to next-generation platforms and will be controlled principally in USML paragraphs VIII(h)(29) and XIX(f)(12)), effective Dec. 31 (a) any unshipped balance under a Department of Commerce authorization will be null and void and (b) the ITAR will regulate reexports or retransfers.

DDTC expects the scope of affected authorizations to be limited and will assist exporters in expeditiously obtaining appropriate authorizations under the ITAR. Exporters of the covered goods are encouraged to contact the Office of Defense Trade Controls Licensing through the DDTC Response Team at (202) 663-1282 or as soon as possible to discuss specific transition impacts.

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