A.5. License Exception STA authorizes certain exports, reexports and transfers (in-country). The most likely scenario for use of License Exception STA to transfer (in-country) would be to comply with the terms of a license. In this scenario, the original export was authorized under a Commerce license to a Country Group A:5 country or the export was authorized under an ITAR license or other approval as a USML paragraph (x) item under the section 120.5(b) process, such as to a defense contractor (Defense Contractor A), and subsequently the defense contractor needed to go outside the scope of the original Commerce license or State license or other approval, such as by selling the "600 series" item to another defense contractor (Defense Contractor B) in that same Country Group A:5 country who was not authorized under the original export license. In this example, Defense Contractor B was not listed on the original license as an authorized end user, and therefore an EAR authorization is required to transfer to Defense Contractor B. If Defense Contractor B will use the "600 series" item for manufacturing a military item for the Country Group A:5 military, then the transfer (in-country) could most likely be authorized under License Exception STA. (Note that you must also then obtain a prior consignee statement from Defense Contractor B, along with satisfying any other applicable requirements of License Exception STA, before you can permit Defense Contractor A to transfer the "600 series" item to Defense Contractor B in reliance on License Exception STA).

Another scenario where License Exception STA may be used for a transfer (in-country) would be if an EAR license exception were no longer available because the proposed particulars of a transaction have changed and it no longer meets the license exception’s terms and conditions. For example, if a Country Group A:5 government received a "600 series" item under License Exception GOV and then subsequently wanted or needed to transfer (in-country) that "600 series" item to a defense contractor or some other non-governmental party, License Exception STA could likely be used to authorize the transfer (in-country) as long as the item would eventually be for that Country Group A:5 government’s ultimate end use. In certain cases, other EAR License Exceptions may also be available to authorize such transfers (in-country), such as License Exceptions TMP or RPL.

   
© BIS 2019