PGI 225.7902-4  Procedures.

(1)  Since the Treaty applies only to eligible items, a solicitation or contract falls within the scope of the Treaty, and is thus eligible for Treaty coverage (i.e., falls within the scope of the Treaty) if it will acquire at least one defense article that is not otherwise exempt from the Treaty and is required for-

(i)  U.S. and U.K. combined military or counterterrorism operations as described in the Implementing Arrangements;

(ii)  U.S. and U.K cooperative security and defense research, development, production, and support programs that are identified pursuant to the Implementing Arrangements;

(iii)  Cases where the government of the United Kingdom is the end user in mutually agreed specific security and defense projects, that are identified pursuant to the Implementing Arrangements; or

(iv)  U.S. Government end use under a solicitation or contract.

(2)  Since the Treaty applies only to eligible items, a solicitation or contract falls within the scope of the Treaty and is thus eligible for Treaty coverage when it will acquire at least one defense article that is Treaty-eligible and the contract falls within the scope of the Treaty. Article 3, section (2) of each Treaty and Section 4 of each Implementing Arrangement require the Treaty Participants to maintain lists of defense articles to be exempted from the scope of the Treaty.  These exempted technology lists are incorporated in Supplement No. 1 to 22 CFR 126.16 and are accessible at: http://pmddtc.state.gov.

(3)  The Treaty does not apply to defense articles initially being acquired pursuant to the U.S. Foreign Military Sales (FMS) program, although, once the defense articles are acquired by the United Kingdom under an FMS case, the Treaty applies as though the defense articles were exported under the Treaty, subject to PGI 225.7902-2.

(4)  If a company obtains an export license, or other authorization, for the export of defense articles that might otherwise have been eligible for export without a license under the Treaty, the terms of the export license, or other authorization, shall apply unless and until the company obtains approval to transition to Treaty coverage.  The process and requirements for transition are described in 22 CFR 126.16.