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Will currently approved DSP licenses remain valid under the new agreement?
(Answer Updated 7/1/08) Under normal circumstances, DDTC considers approved DSP licenses granted 'in furtherance' of an agreement to remain valid until the approved agreement is terminated or expires, at which time all associated licenses will also terminate or expire. However, in this case, DDTC will not consider the rebaselining activity to either terminate or expire the older agreement; rather, DDTC will consider the previously approved export licenses granted 'in furtherance' of the older agreement to be included in the scope of the rebaseline. The procedures outlined in the Guidance for Agreement Rebaseline requires the applicant to identify the value of their currently approved licenses when valuing the agreement rebaseline. This is detailed in the way the (a)(6) table of the rebaseline application must be in three column 'amendment' format and must identify the amount of currently approved hardware licenses and include that value in the rebaseline 'Total Hardware' value field. When issuing the approval for a rebaselined agreement, DDTC will include a hardware proviso that limits hardware to a total value of that requested, including all exports to date under the older agreement (specifically identified by agreement number). DDTC considers this linkage in the proviso to 'keep alive' all those previously issued license until their natural 4-year expiration date without the need to amend them to include reference to the rebaselined agreement number. This decision will also impact the support documentation required for future licenses 'in furtherance' of the rebaselined agreement. Specifically, the table of prior approvals required under the updated Guidance for Exporting Hardware 'In Furtherance' of Agreements must include the licenses issued under the older agreement as well as any that were granted under the rebaselined agreement.
Directorate of Defense Trade Controls (DDTC), U.S. State Department
http://www.pmddtc.state.gov/
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