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U.S. Law on Arms and Defense

Export Controls, CFIUS, and Government Contracts with U.S. Attorneys in Munich

European defense investments are currently bringing German suppliers, systems integrators, and technology companies closer to the U.S. market—as contractors to U.S. government agencies, as part of supply chains with U.S. prime contractors, or as targets for U.S. investments. This brings export controls, security clearances, and U.S. procurement law into focus—areas that have often been uncharted territory for German companies until now.

We provide advice on these areas where German and U.S. law intersect—with U.S. attorneys in Munich who have practical experience in this field. When necessary, we consult with our colleagues in New York, Boston, and San Francisco.

Challenges

As soon as your products contain U.S. technology, U.S. components, or certain defense articles, the U.S. export control regimes ITAR and EAR apply—often even to companies outside the United States. Anyone who overlooks this risks serious violations.

Contracts with U.S. government agencies are governed by their own procurement laws, and an investment by or in a U.S. company can trigger a CFIUS review—both of which often require expertise that the company does not have in-house.

Solutions

We determine whether and how ITAR and EAR apply to your products and supply chains, and assist you in establishing the necessary compliance framework.

For contracts with U.S. government agencies and CFIUS-related investments, we assist with the classification and preparation of the process—from the initial assessment through ongoing support.

Let's talk about your business operations in the U.S.

Whether it’s export controls, government contracting, a CFIUS review, or a teaming agreement: During the initial consultation, we’ll clarify which specific U.S. requirements apply to your company and what steps need to be taken and in what order. You’ll speak directly with our U.S. attorneys in Munich—and when necessary, we’ll bring in our colleagues in New York, Boston, or San Francisco.

Schedule an initial consultation

Our Services

Four building blocks for your U.S. engagement in the defense and aerospace industry—from export controls to government contracting and CFIUS reviews to collaboration with U.S. systems integrators. All four follow the same principle: structures and contracts that comply with U.S. requirements and don’t slow down your business.

Comply with ITAR and EAR export controls

As soon as your products contain U.S. technology, components of U.S. origin, or certain defense articles, the U.S. export control regimes—the International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR)—apply, often even for shipments and end uses outside the United States. For exports of defense equipment manufactured in Germany with a U.S. connection, these two sets of regulations are the key points of reference. Which rules apply depends on the origin, classification, and end use in each individual case, not on where your company is headquartered.

We identify which regulations apply to your products and supply chains and help you establish ITAR and EAR compliance frameworks tailored to your company’s size and supply chain risk—from employee training to documentation.

Drafting Government Contracts in Accordance with FAR and DFARS

Contracts with U.S. government agencies and the Department of Defense (DoD) are governed by their own procurement laws: the Federal Acquisition Regulation (FAR) and, for defense contracts, the Defense Federal Acquisition Regulation Supplement (DFARS). Both sets of regulations entail specific contract clauses, reporting requirements, and documentation obligations that German companies are generally unfamiliar with under their own procurement laws—whether they enter into the contract directly or through a U.S. partner.

We explain exactly what government contracting in the U.S. means for your company and assist with contract drafting in accordance with FAR and DFARS—from the bid phase through ongoing contract performance.

Assist with CFIUS reviews of equity investments

If a U.S. investor acquires a stake in your company, or if you yourself invest in a U.S. company with security-related technology, a review by the Committee on Foreign Investment in the United States (CFIUS) may be required. Whether a filing is required depends on the type of technology, the control structure of the transaction, and the investor’s country of origin—not on the size of the deal.

We assist with determining whether a CFIUS filing is required and with preparing the process—from the initial risk assessment through coordination with the relevant authorities.

Drafting Teaming Agreements with U.S. Prime Contractors

Collaborations with major U.S. system integrators (primes) are often structured through teaming agreements—contracts that strike a balance between competition and cooperation, governing the allocation of roles, exclusivity, and the distribution of intellectual property rights. Anyone reading these agreements from the perspective of German contract law can easily overlook just how much room for negotiation is embedded in the individual clauses.

We review and negotiate teaming agreements with U.S. prime contractors to ensure that roles, liability, and intellectual property rights are clearly defined for your company—both before signing and throughout the collaboration.

Frequently Asked Questions

Yes, that is possible—ITAR and EAR are not based on a company’s headquarters, but rather on the origin of the technology, U.S. components, or the end use. We assess, based on your products and supply chains, whether and to what extent these regulations apply.

While not required for every investment, an audit is often necessary for security-related technology and certain control structures. We assist in determining whether a report is necessary and prepare the necessary procedures if it becomes necessary.

A teaming agreement governs collaboration with a U.S. prime contractor for a specific procurement process, often involving an exclusivity clause and specific intellectual property provisions between the parties. German contract templates typically do not reflect this structure. We review and negotiate these agreements to ensure that roles and rights are clearly defined for your company.