Guidance for Part 130 Certification for Agreements

1

Updated as of 10/20/2016

U.S. Department of State

Directorate of Defense Trade Controls

Guidance for Part 130 Certification for Agreements

a. If the proposed value of an agreement submitted to DTCL involves the export, reexport,

or retransfer of defense articles, to include technical data, or defense services valued in an

amount of $500,000 or more which are being sold commercially to or for the use of the

armed forces of a foreign country or international organization, an additional statement must

be made regarding the payment of political contributions, fees or commissions, pursuant to

§ 130.9.

Note: in order for Part 130 to apply, both of the criteria above must be met. For example, if

the end user is solely the U.S. government, Part 130 would not apply regardless of value.

(1) The Part 130 statement is made as part of Block 22, “Applicant’s Statement,” in the

DSP- 5 vehicle.

(2) For the purpose of Part 130 statements, “armed forces” means the means the army,

navy, marine, air force, or coast guard, as well as the national guard and national

police (not state/local police), of a foreign country. This term also includes any

military unit or military personnel organized under or assigned to an international

organization.

b. § 130.9 requires that each applicant inform DTCL as to whether the applicant or its

vendors have paid, or offered or agreed to pay, in respect of any sale for which a license or

approval is requested:

(1) Political contributions in an aggregate amount of $5,000 or more, or

is term also includes any

military unit or military personnel organized under or assigned to an international

organization.

b. § 130.9 requires that each applicant inform DTCL as to whether the applicant or its

vendors have paid, or offered or agreed to pay, in respect of any sale for which a license or

approval is requested:

(1) Political contributions in an aggregate amount of $5,000 or more, or

(2) Fees or commissions in an aggregate amount of $100,000 or more.

c. If yes, the applicant must provide to the DTCL the information specified in § 130.10 as a

separate attachment to DSP-5 vehicle, signed by an empowered official. The furnishing of

such information or an explanation satisfactory to the Directorate of Defense Trade Controls

as to why all the information cannot be furnished at that time is a condition precedent to the

granting of the relevant license or approval. The applicant should also consider whether or

not brokering activities as defined in ITAR Part 129 are occurring or will occur.

d. For each amendment, the Part 130 statement must be made in the context of the

agreement as a whole and not just the amendment.

e. The Part 130 statement for an amendment or re-baseline must differentiate between

values previously provided in the base agreement/subsequent amendments and the new

amendment/re- baseline so as to not double count the values. Previously reported payments

need only include aggregate amounts. Dates of transactions, recipients, and payers for

of the

agreement as a whole and not just the amendment.

e. The Part 130 statement for an amendment or re-baseline must differentiate between

values previously provided in the base agreement/subsequent amendments and the new

amendment/re- baseline so as to not double count the values. Previously reported payments

need only include aggregate amounts. Dates of transactions, recipients, and payers for

2

Updated as of 10/20/2016

U.S. Department of State

Directorate of Defense Trade Controls

previously reported payments are not required. For further information, see the DDTC web

notice of December 13, 2013 titled “Guidelines for Furnishing Information Specified in §

130.10.”

f. Part 130 is applicable to an IFO license in the context of the license itself; i.e., the term

“applicant” in § 130.2 only applies if the IFO license is for $500,000 or more and is for the

armed forces of a foreign country or international organization. However, if the Part 130

statement is positive for the IFO license, the statement provided must report the information

required in § 130.10 in the context of the entire agreement, in order to differentiate between

values previously provided and new values. If the Part 130 statement has changed since the

last submission, the applicant must submit a new report and must differentiate between

values previously provided and new values, so as to avoid double counting. If the Part 130

statement is identical to the previous submission, no additional statement is necessary, but

the IFO letter of explanation must clarify this fact.