Defence financing checklist

1Export controls

1. Which of the company's products, software and technical data are controlled, and under which regime: ITAR, the EAR, the UK Export Control Order or the EU Dual-Use Regulation?

   Controlled technical data cannot be shared freely with lenders, investors or advisers, and some controls follow the technology into any buyer's hands.

   eCFR: International Traffic in Arms Regulations (22 CFR 120-130)

2. Will any lender, investor or adviser who is a foreign person need access to controlled data during diligence or reporting?

   Sharing ITAR data with a foreign person is an export. Set up clean teams or summaries, or obtain a licence.

   eCFR: Export Administration Regulations (15 CFR 730-774)

3. Has the company made voluntary disclosures, or entered into consent agreements, with the State Department, Commerce or HM Revenue & Customs?

   Past violations affect reputation risk, representations and the price of insurance.

4. Would a sale of the business, including on enforcement, need export licences or notifications, such as the 60-day ITAR notice for a foreign buyer?

   Build those approvals into the enforcement provisions and the buyer pool.

   eCFR: 22 CFR 122.4 (notice of changes in ownership)

5. Does the EU Dual-Use Regulation or the UK Export Control Order apply to any products made or shipped in Europe?

   European controls run alongside US rules, and licences may be needed for intra-group transfers.

   EUR-Lex: Regulation (EU) 2021/821 (dual-use items)