• If you Manufacture or Export Defense Articles, You May Now Use an ITAR Exemption to Effect Intracompany Transfers of Unclassified Defense Articles to Dual-and-Third-Country National Employees of Proscribed Countries. Should you Use the Exemption?
  • October 27, 2011 | Authors: David Himelfarb; Daniel J. Kelly
  • Law Firm: McCarter & English, LLP - Boston Office
  • The International Traffic in Arms Regulations (ITAR) now provides an exemption from licensing for intracompany transfers of unclassified defense articles (including technical data) by approved end-users and consignees (including authorized sublicensees) to their employees who are dual- and third-country nationals of proscribed countries. The exemption, 22 C.F.R. ยง 126.18, also requires that (1) the transfer take place within the country where the end-user is located, (2) the transfer be within the scope of the export authorization, and (3) the foreign end-user implement effective procedures to prevent diversion to proscribed countries.