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Defense Trade Resources

Glossary of Defense Trade Terms and Acronyms

A-B C D E F
I-L M-N O-R S-W Acronyms


I
International Emergency Economic Powers Act (IEEPA)
Since the mid 1980s Congress has frequently allowed the EAA to lapse. The president has used his executive powers under the IEEPA (whether or not anything that could be construed as an economic emergency exists) to enforce the provisions of the EAA and the EAR.


International Military Education and Training (IMET)
Provides short training for foreign civil and military in a variety of subjects, and is intended to increase the professionalism of military institutions and the acceptance of civilian control over the military. Funding is provided as part of the security assistance budget requested by the State Department, and administered by the DSCA. More details are available on the State Bureau of Political and Military Affairs web page www.state.gov/t/pm.


International Traffic in Arms Regulations (ITAR)
Provides the regulations promulgated by the State Department to implement the AECA. The ITAR is the basic document used by companies to understand licensing and reporting requirements to conduct export and international cooperative activities related to defense articles and services. The ITAR contains the U.S. Munitions List (Part 121 of the ITAR) which itemizes the defense articles and services that are controlled.


L
Letter of Intent 6
In July 2000 six countries -- France, Germany, Italy, Spain, Sweden, and the United Kingdom -- signed a Letter of Intent (LOI) to pursue policies that would facilitate the restructuring and operation of the European defense industry. Included in such actions were commitments to harmonize export controls, protect sensitive information, and assure each other security of supplies of defense products and components.


Letter of Offer and Acceptance (LOA)
In the case of U.S. government to foreign government (FMS) sales, the U.S. government issues a LOA to the foreign customer, providing the price and performance data. When signed by that government, the LOA serves the same function as a sales contract does in a commercial sale.


Licensed Production
Occurs when companies transferring manufacturing know-how, patents, or trademarks to another in return for a fee or royalty payment. This term should not be confused with sub-licensing under the ITAR, where a foreign party transfers ITAR-controlled items or technology to another foreign party, usually a subcontractor.

 

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