Types of Third Party Transfers

Government-to-Government

§3(a) of the AECA specifically addresses third country transfers:

"In considering a request for approval for any transfer of any weapon, weapons system, munitions, aircraft, military boat, military vessel, or other implement of war to another country, the President will not give his consent . . . to the transfer unless the United States would itself transfer the defense article under consideration to that country."

The divesting government is responsible for submitting the written third party transfer request to the USG for consideration. This request should be sent via the SAO/Embassy who in turn should send the completed transfer request form via message/cable to PM/RSAT, with information copies to DSCA and the SAO of the proposed third party recipient. A copy of the original request for transfer should also be emailed or faxed to PM/RSAT (202) 647-9779. This allows immediate initiation of action. PM/RSAT will not begin processing until all necessary information is provided.

Government-to-Private Entity

Since the mid-1980s, the Department has had a restrictive policy with regard to third party transfers to private entities of U.S.-origin military equipment exported on a government-to-government basis. This is particularly true of defense articles defined as Significant Military Equipment (SME) on the U.S. Munitions List (USML) of the International Traffic in Arms Regulations (ITAR). The Department's policy of denial has been based on its views that the retransfer of such defense articles to private entities does not support the USG foreign policy interests for which these articles were originally sold or granted to foreign governments. Exceptions to this general policy of denial may be considered:

• If the proposed third party transfer involves minor parts and components that when separated from their major end items have no inherent military capability.

  
  

• If the proposed third party transfer involves articles that are designated non-significant military equipment (non-SME) on the USML.

  
  

• If the proposed retransfer serves a bona fide public interest, specifically where defense articles are demilitarized and placed on static display in a museum.

  
  

• If the proposed retransfer is to fulfill a U.S. or a friendly/allied government contract.

*** If the recipient is a U.S. private entity, the entity must subscribe to end-use and retransfer assurances; title may not transfer until it is within customs jurisdiction of the United States. If U.S. private entity it is tougher to qualify for exception; both the private entity and the recipient government exercising legal jurisdiction must subscribe to end-use and retransfer assurances.