Answer #1: Yes, the current use and exchange of technical data obtained through a TAA between previously authorized recipients for the same authorized end use is in principle permitted even after the termination or expiration of the contract. Any reservations or conditions of retrocession applicable to technical data approved under the TAA continue to apply. However, if the activity requires the provision of a defense service by a U.S. person, a separate authorization from the DDTC would be required. Companies should also carefully respect the language used by DDTC in these two FAQs and indicate that this ITAR-controlled activity can only continue “among the same foreign signatories, sub-licenses and end users” and “for the same authorized end-use”. Therefore, the volume of the expiration of the MLA or TAA (as well as any reservations, conditions or other restrictions in the agreement) continues to restrict which parties can participate in the ITAR-controlled activity upon expiration of the agreement and what those parties can do. All new parts (for example. B customers or end-users, foreign beneficiaries, sub-licences or new foreign sites for these parties) or any new activity (e.g. B the use of previously provided technical data or know-how to manufacture a new defence item) may require additional authorization from DDTC. Distribution Agreement This type of license is an agreement for the establishment of a foreign warehouse or point of sale for defense products exported from the United States. Distribution must be located in an approved distribution area. In accordance with the provisions of paragraphs 124.9(a)(5) and 124.14(c)(6), the applicant for an MLA/WDA is required to submit to DDTC/DTCL an annual report on sales or other transfers, in accordance with the agreement of the items granted by quantity, nature, value of the U.S.
dollar and buyer or consignee. If an MLA/WDA is not active in a given year, a “No Sales” report is required. As noted above, L3Harris did not submit annual sales reports in accordance with ITAR requirements.  It is important that DDTC entered into an acceptance agreement with L3Harris in the fall of 2019 for alleged violation of the Arms Export Control Act (AECA) and ITAR. One of the 131 alleged ITAR violations contained in the proposed letter was “a violation of the terms and conditions of sale of licenses and agreements.”  In particular, the company breached the conditions of the TAAs and MLAs by failing to obtain the following information: (1) the first export reports;  2) signed agreements;  3) annual status declarations;  (4) a written declaration annexed to the agreements concluded;  and 5) annual sales reports;  in addition to the non-communication of agreements not concluded to DDTC.  Once an ITAR contract authorization has been granted, several compliance tasks must be completed, including: implementing reservations, executing agreements, submitting notifications and reports to DDTC/DTCL, maintaining balances, developing files, and maintaining records. . . .