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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


S
Significant Military Equipment (SME)
A category of defense articles which are deemed to have particular military utility. These include most military platforms, and are identified in the USML with an asterisk.
T
Third Country Transfers
Occurs when a country purchases an end item or component from the U.S. and then re-exports the end item or component (including if the component is incorporated into a domestically produced end item) to another country. If the U.S. end item or component was exported under a State Department munitions license, then the foreign party must gain permission from the State Department to make such a third country transfer. The same holds true for items exported under a Commerce license. However, Commerce generally will only require its permission for third country transfers if the U.S.-controlled content is greater than10 percent of the value of the end item in the case of shipments to designated terrorist supporting countries or over 25 percent for all other countries.
U
U.S. Munitions List (USML)
The president is authorized by Section 38 of the AECA to designate those articles and services that are to be controlled under the authority of the AECA. Those articles and services are divided into categories and listed in Part 121 of the ITAR. In practice, the State Department is designated to maintain the list, in consultation with the departments of Defense and Commerce. Congress must be notified of any changes to the list.
W
Wassenaar Arrangement
The Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies was established in July of 1996 (after over a decade of negotiations), in part as a replacement for the Cold War institution known as COCOM. The arrangement includes a larger number of countries than COCOM, including some former Soviet Bloc states such s Russia. It is intended to insure that transfers of military and dual-use products do not contribute to regional instability. The arrangement establishes a list of military and dual-use items, which member states pledge to control. Unlike the old COCOM arrangement, however, one country cannot block another from exporting anything on the list to any individual country. More information on the arrangement is available at www.wassenaar.org.

 

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