[Code of Federal Regulations]
[Title 22, Volume 1]
[Revised as of April 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 22CFR125.4]

[Page 465-467]
 
                       TITLE 22--FOREIGN RELATIONS
 
                     CHAPTER I--DEPARTMENT OF STATE
 
PART 125--LICENSES FOR THE EXPORT OF TECHNICAL DATA AND CLASSIFIED DEFENSE ARTICLES--Table of Contents
 
Sec. 125.4  Exemptions of general applicability.

    (a) The following exemptions apply to exports of technical data for 
which approval is not needed from the Office of Defense Trade Controls. 
These exemptions, except for paragraph (b)(13) of this section, do not 
apply to exports to proscribed destinations under Sec. 126.1 of this 
subchapter or for persons considered generally ineligible under 
Sec. 120.1(c) of this subchapter. The exemptions are also not applicable 
for purposes of establishing offshore procurement arrangements or 
producing defense articles offshore (see Sec. 124.13), except as 
authorized under Sec. 125.4 (c). If Sec. 126.8 of this subchapter 
requirements are applicable, they must be met before an exemption under 
this section may be used. Transmission of classified information must 
comply with the requirements of the National Industrial Security Program 
Operating Manual and the exporter must certify to the transmittal 
authority that the technical data does not exceed the technical 
limitation of the authorized export.
    (b) The following exports are exempt from the licensing requirements 
of this subchapter.
    (1) Technical data, including classified information, to be 
disclosed pursuant to an official written request or directive from the 
U.S. Department of Defense;
    (2) Technical data, including classified information, in furtherance 
of a manufacturing license or technical assistance agreement approved by 
the Department of State under part 124 of this subchapter and which meet 
the requirements of Sec. 124.3 of this subchapter;
    (3) Technical data, including classified information, in furtherance 
of a contract between the exporter and an agency of the U.S. Government, 
if the contract provides for the export of the data and such data does 
not disclose the details of design, development, production, or 
manufacture of any defense article;
    (4) Copies of technical data, including classified information, 
previously authorized for export to the same recipient. Revised copies 
of such technical data are also exempt if they pertain to the identical 
defense article, and if the revisions are solely editorial and do not 
add to the content of technology previously exported or authorized for 
export to the same recipient;
    (5) Technical data, including classified information, in the form of 
basic operations, maintenance, and training

[[Page 466]]

information relating to a defense article lawfully exported or 
authorized for export to the same recipient. Intermediate or depot-level 
repair and maintenance information may be exported only under a license 
or agreement approved specifically for that purpose;
    (6) Technical data, including classified information, related to 
firearms not in excess of caliber .50 and ammunition for such weapons, 
except detailed design, development, production or manufacturing 
information;
    (7) Technical data, including classified information, being returned 
to the original source of import;
    (8) Technical data directly related to classified information which 
has been previously exported or authorized for export in accordance with 
this part to the same recipient, and which does not disclose the details 
of the design, development, production, or manufacture of any defense 
article;
    (9) Technical data, including classified information, sent by a U.S. 
corporation to a U.S. person employed by that corporation overseas or to 
a U.S. Government agency. This exemption is subject to the limitations 
of Sec. 125.1(b) and may be used only if:
    (i) The technical data is to be used overseas solely by U.S. 
persons;
    (ii) If the U.S. person overseas is an employee of the U.S. 
Government or is directly employed by the U.S. corporation and not by a 
foreign subsidiary; and
    (iii) The classified information is sent overseas in accordance with 
the requirements of the Department of Defense Industrial Security 
Manual.
    (10) Disclosures of unclassified technical data in the U.S. by U.S. 
institutions of higher learning to foreign persons who are their bona 
fide and full time regular employees. This exemption is available only 
if:
    (i) The employee's permanent abode throughout the period of 
employment is in the United States;
    (ii) The employee is not a national of a country to which exports 
are prohibited pursuant to Sec. 126.1 of this subchapter; and
    (iii) The institution informs the individual in writing that the 
technical data may not be transferred to other foreign persons without 
the prior written approval of the Office of Defense Trade Controls;
    (11) Technical data, including classified information, for which the 
exporter, pursuant to an arrangement with the Department of Defense, 
Department of Energy or NASA which requires such exports, has been 
granted an exemption in writing from the licensing provisions of this 
part by the Office of Defense Trade Controls. Such an exemption will 
normally be granted only if the arrangement directly implements an 
international agreement to which the United States is a party and if 
multiple exports are contemplated. The Office of Defense Trade Controls, 
in consultation with the relevant U.S. Government agencies, will 
determine whether the interests of the United States Government are best 
served by expediting exports under an arrangement through an exemption 
(see also paragraph (b)(3) of this section for a related exemption);
    (12) Technical data which is specifically exempt under part 126 of 
this subchapter; or
    (13) Technical data approved for public release (i.e., unlimited 
distribution) by the cognizant U.S. Government department or agency or 
Directorate for Freedom of Information and Security Review. This 
exemption is applicable to information approved by the cognizant U.S. 
Government department or agency for public release in any form. It does 
not require that the information be published in order to qualify for 
the exemption.
    (c) Defense services and related unclassified technical data are 
exempt from the licensing requirements of this subchapter, to nationals 
of NATO countries, Australia and Japan, for the purposes of responding 
to a written request from the Department of Defense for a quote or bid 
proposal. Such exports must be pursuant to an official written request 
or directive from an authorized official of the U.S. Department of 
Defense. The defense services and technical data are limited to those 
listed in paragraphs (c)(1), (c)(2), and (c)(3) and must not include 
those listed in paragraphs (c)(4), (c)(5), and (c)(6) which follow:

[[Page 467]]

    (1) Build-to-Print. ``Build-to-Print'' means that a foreign 
consignee can produce a defense article from engineering drawings 
without any technical assistance from a U.S. exporter. This transaction 
is based strictly on a ``hands-off'' approach since the foreign 
consignee is understood to have the inherent capability to produce the 
defense article and only lacks the necessary drawings. Supporting 
documentation such as acceptance criteria, and specifications, may be 
released on an as-required basis (i.e. ``must have'') such that the 
foreign consignee would not be able to produce an acceptable defense 
article without this additional supporting documentation. Documentation 
which is not absolutely necessary to permit manufacture of an acceptable 
defense article (i.e. ``nice to have'') is not considered within the 
boundaries of a ``Build-to-Print'' data package;
    (2) Build/Design-to-Specification. ``Build/Design-to-Specification'' 
means that a foreign consignee can design and produce a defense article 
from requirement specifications without any technical assistance from 
the U.S. exporter. This transaction is based strictly on a ``hands-off'' 
approach since the foreign consignee is understood to have the inherent 
capability to both design and produce the defense article and only lacks 
the necessary requirement information;
    (3) Basic Research. ``Basic Research'' means a systemic study 
directed toward greater knowledge or understanding of the fundamental 
aspects of phenomena and observable facts without specific applications 
towards processes or products in mind. It does not include ``Applied 
Research'' (i.e. a systemic study to gain knowledge or understanding 
necessary to determine the means by which a recognized and specific need 
may be met. It is a systematic application of knowledge toward the 
production of useful materials, devices, and systems or methods, 
including design, development, and improvement of prototypes and new 
processes to meet specific requirements.);
    (4) Design Methodology, such as: The underlying engineering methods 
and design philosophy utilized (i.e., the ``why'' or information that 
explains the rationale for particular design decision, engineering 
feature, or performance requirement); engineering experience (e.g. 
lessons learned); and the rationale and associated databases (e.g. 
design allowables, factors of safety, component life predictions, 
failure analysis criteria) that establish the operational requirements 
(e.g., performance, mechanical, electrical, electronic, reliability and 
maintainability) of a defense article. (Final analytical results and the 
initial conditions and parameters may be provided.)
    (5) Engineering Analysis, such as: Analytical methods and tools used 
to design or evaluate a defense article's performance against the 
operational requirements. Analytical methods and tools include the 
development and/or use of mockups, computer models and simulations, and 
test facilities. (Final analytical results and the initial conditions 
and parameters may be provided.)
    (6) Manufacturing Know-how, such as: information that provides 
detailed manufacturing processes and techniques needed to translate a 
detailed design into a qualified, finished defense article. (Information 
may be provided in a build-to-print package that is necessary in order 
to produce an acceptable defense article.)

[58 FR 39310, July 22, 1993, as amended at 65 FR 45284, July 21, 2000]