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Defense Manufacturers - Protocols

Discussion in 'Intros & Off Topic' started by Vojnovic, Mar 13, 2016.

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  1. Vojnovic

    Vojnovic New Member

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    Dear Members,
    Apologies for my ignorance on this, but I was wondering if you know whether private defense contractor manufacturers (such as General Dynamics and Oshkosh) are allowed to sell their products to Russia and China, or if by accepting a contract with USA they can only sell their products to NATO and their allies?
    Thank you for your time.
     
  2. ngatimozart

    ngatimozart Super Moderator Staff Member Verified Defense Pro

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    Welcome aboard.

    They are subject to export laws and regulations. In the case of the USA, it is ITAR. ITAR is reasonably strict and time consuming, plus it also covers the disposal of the equipment at the end of it's service. An example of this was the RAAF F111 disposal requirements.
     
  3. gf0012-aust

    gf0012-aust Grumpy Old Man Staff Member Verified Defense Pro

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    US companies cannot sell their technology to any country direct - they have to get approval from the USG

    That then becomes the province of the US State Dept and ultimately Congressional approval

    State then have an obligation to consider such factors as local laws and whether a potential sale would breach international conventions such as those governing dual use technology etc....

    China was subjected to the effect of these restrictions during the lead up to the Beijing Olympics - eg they were permitted to but some tech under provisions allowing for the use of tech in anti-terrorism capability for the Olympics which normally would not have been permitted
     
  4. Todjaeger

    Todjaeger Potstirrer

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    One of the other things to keep in mind, is that the requirements can very much depend on the country of origin, as well as the country of origin if there are sub-components and/or licensed production from from IP.

    As already covered, US sourced defence materials have restrictions. These restrictions even extend to non-US production which includes US components, and/or US-owned IP.

    Other countries can have their own sets or rules.
     
  5. Vojnovic

    Vojnovic New Member

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    Thank you all for your answers. I will review the resources and get more familiar with them. My idea was to get into a licensing agreement with Oshkosh for a device I designed, but wanted to determine if they would be allowed to sell to Russia and China as well as the USA.
    Your help is much appreciated.
     
  6. gf0012-aust

    gf0012-aust Grumpy Old Man Staff Member Verified Defense Pro

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    they can as long as the IP for the technology is not in CONUS and as long as they have a facility or partnering arrangement with an overseas manufacturer

    eg some US companies have development arrangements with euro companies, the IP remains euro owned (eg sweden) and thus does not come under FMS or ITARs provisions

    its not widely known but it is common practice.

    I contracted to a US company who used scandinavian photonics tech, but the IP was skandi and this not subjected to US export provisions and restrictions

    The US company ended up doing an acquisition of the euro company and as a result the euro origined IP was still exempted from USG export restrictions