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Defense Federal Acquisition Regulations Supplement (DFARS) now includes US export control requirements:
Do YOU comply?
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The Department of Defense (DoD) published in the Federal Register of 21 July 2008 the long-awaited regulation amending
the Defense Federal Acquisition Regulation Supplement (DFARS) to address requirements for complying with export control laws
and regulations when performing DoD contracts. This important change to the DFARS specifically recognizes contractor responsibilities
to comply with existing Department of Commerce and Department of State export control regulations and requires contractors
to flow-down export control requirements to subcontractors that have access to or generate export-controlled items.
The
interim rule, which is effective today, adds two new clauses to be used when export-controlled items, including information
or technology, are expected to be involved in the performance of a contract, or when there is a possibility that export-controlled
items, including information or technology, may come to be involved during the period of performance of the contract.
Click on this link to read the Federal Register entry: (opens in new window)
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What Does This Mean for Me?
In practical terms, if you are a supplier either directly to DoD or
in a supply chain to which the flowdown of DFARS has been correctly carried out, any violation of US export controls (ITAR
and/or EAR) in relation to contracts incorporating the new DFARS clauses may also constitute a breach of contract.
This may be seen as "two bites of the cherry" but it does increase the compliance risks associated with such contracts.
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& Wales 5107541)
Phone: (+44) (0)7765 007368 | (+44) (0)1455 822144 | Fax: (+44)
(0)1455 822144
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