October 30, 2017
The Ministry of Defense will begin a substantial loosening of restrictions on defense exporters, and will significantly shorten the list of products for which overseas marketing requires prior approval from the Defense Export Controls Agency.
According to the changes, which are scheduled to take effect in the coming months, defense companies will be exempt from obtaining a marketing license for many hundreds of cyber and electro-optic systems and tools, and for courses in security and anti-terrorism warfare. These concessions will apply to companies exporting to any of the 102 countries on the list of permitted countries, which the Ministry of Defense revises from time to time in consultation with the Ministry of Foreign Affairs.
Defense Export Controls Agency director Rachel Chen said today that the anticipated exemptions would affect hundreds of defense exporters, while improving their competitive ability throughout the world. She noted that the concessions would apply to marketing of products defined by the Ministry of Defense as unclassified, while marketing of products defined as classified would still require a license in advance.
Up until now, exports of defense systems required a two-stage licensing process: a marketing license was required before the system was presented at an exhibition or demonstration to a potential customer, and at the end of the negotiations between the exporter and the customer of the supply of a system, an export license was required under the Defense Export Controls Law.