ITAR Agreements 101

Technical Assistance Agreements (TAAs) and Manufacturing License Agreements (MLAs) are types of agreements that are regulated under the International Traffic in Arms Regulations (ITAR). The ITAR is a set of regulations administered by the Department of State that controls the export of defense-related items and services from the United States.

What is a TAA?

    • Technical Assistance Agreements (TAAs):  A TAA is an agreement between a company or individual in the United States and a foreign company or individual that allows for the transfer of technical data or assistance in the design, development, production, or use of defense-related items. This can include providing technical assistance in person, via telephone or email, or through the transfer of technical data or other materials. TAAs are typically used when a foreign company or individual needs assistance in the development or production of defense-related items that are subject to the ITAR.

What is a MLA?

    • Manufacturing License Agreements (MLAs): An MLA is an agreement between a company or individual in the United States and a foreign company or individual that allows for the manufacture of defense-related items in a foreign country. This can include the production of complete items or the production of components or subassemblies for incorporation into defense-related items. MLAs are typically used when a foreign company or individual wants to produce defense-related items that are subject to the ITAR, but does not have the necessary technical expertise or equipment to do so.

Both TAAs and MLAs are subject to the ITAR and require the prior approval of the Department of State. Companies or individuals seeking to enter into a TAA or MLA must submit a request to the Department of State, including a description of the technical data or assistance that will be provided or the defense-related items that will be manufactured. The Department of State will review the request and determine whether the TAA or MLA is consistent with the national security and foreign policy interests of the United States. If approved, the TAA or MLA will be issued with specific terms and conditions that must be followed by the parties.

Technical Assistance Agreements (TAAs) and Manufacturing License Agreements (MLAs) can be an important tool for companies and individuals seeking to engage in international defense-related business, but it is important to understand the requirements and restrictions of the ITAR and to ensure compliance with these regulations. Failure to comply with the ITAR can result in significant penalties and damage to the company’s reputation.

Compliance Training with DSU:

For comprehensive training related to ITAR Agreements, DSU’s TRD-299 Agreements Under the ITAR is a 6 week online course that builds competencies to utilize agreements when appropriate. The next offering for this course is is just around the corner. Reach out to an advisor to inquire, or view our Classes Starting Soon page to enroll today and secure your spot.