Common use of EXPORT PROHIBITIONS – OFFSHORE PROCUREMENTS Clause in Contracts

EXPORT PROHIBITIONS – OFFSHORE PROCUREMENTS. (This clause applies if this Purchase Order/Letter Contract requires the export of unclassified technical data subject to the United States International Traffic in Arms Regulations (ITAR) (22 CFR 120 et seq.) to “foreign persons” for offshore procurement of “defense articles” under a DSP-5, Offshore Procurement license (See ITAR 124.13 .). When this clause applies, Seller shall comply with the following requirements: unless otherwise expressly directed by the Buyer in writing, the Seller agrees that it shall deliver, or have delivered, all of the defense articles to be manufactured or produced in performance of this subcontract/letter contract/purchase order (collectively “Order”) only to the Buyer in the United States (“U.S.”) or to an agency of the U.S. Government; and the technical data of U.S. origin to be used in the foreign manufacture of defense articles does not exceed that required for bid purposes on a build-to-print basis (build to print means producing an end-item (i.e., system, subsystem, or component) from technical drawings and specifications (which contain no process or know-how information) without the need for additional technical assistance). Release of supporting documentation (e.g., acceptance criteria, object code software for numerically controlled machines) is permissible. Build-to-print does not include the release of any information which discloses design methodology, engineering analysis, detailed process information or manufacturing know-how); and the technical data shall be used only for the manufacture of the defense articles required by this Order or in performance of work required by this Order; and the technical data shall not be disclosed to any other person or entity, except subcontractors in the same country, unless such person or entity is expressly authorized pursuant to an approved U.S. export license or agreement and unless prior written Buyer approval has been granted. This prohibition on the further disclosure of export-controlled technical data applies to both technical data furnished by, or on behalf of, Buyer and to any such technical data incorporated in documents generated by Seller and/or Seller’s lower-tier subcontractors; and neither the Seller nor any other “foreign person” or foreign entity, including Seller’s lower-tier subcontractors, may acquire any rights in the data; and the Seller, as well as all lower-tier subcontractors at all tiers, shall return to the Buyer in the U.S., or at the Buyer’s written direction, destroy, ALL of the technical data exported pursuant to this Order upon fulfillment of their terms ; and the Seller agrees to incorporate all of the prohibitions, restrictions, and limitations of this clause in all lower-tier subcontracts between with “foreign persons” in the approved country for manufacture of equipment and defense articles (as well as components, subcomponents, and parts thereof) for delivery pursuant to this Order, and Seller shall require its lower-tier subcontractors at all tiers to do likewise. Seller will notify the Buyer if any deliverable under this Order is subject to the export control laws or regulations of Seller’s country.