Defence Industry Law
Unlike standard commercial contracts, defence industry contracts are subject to additional layers such as export control, confidentiality and security clearance; overlooking any one of these layers can jeopardise the project timeline or the licensing process. Legalwise manages defence industry companies' process, from the procurement contract to the export licence, with these layers in view.
Message on WhatsAppFor Clients Living Outside Turkey
Foreign defence contractors and subcontractors working with Turkish prime contractors or the Presidency of Defence Industries can obtain contract, export-licensing and security-clearance-process advisory remotely, with in-person involvement generally limited to specific facility or clearance steps.
How to get started from abroadServices We Provide
- Procurement and subcontractor agreements with SSB and prime contractors
- Defence product export licensing processes
- Contractual structuring of offset and localisation obligations
- Technology transfer and intellectual property agreements
How the Process Works
- 1
Contract and bid preparation
We draft or review the procurement contract or bid file to be signed with SSB, a prime contractor or a public authority, including confidentiality and security provisions.
- 2
Export licensing and permit processes
We prepare the licence application required for exporting a defence product or technology, together with the relevant declarations and end-user documentation.
- 3
Offset and localisation structuring
We ensure that offset or local-content obligations under the contract are reflected in the agreement in a measurable and auditable way.
- 4
Subcontractor and technology transfer agreements
We structure subcontractor agreements and technology/know-how transfer arrangements in a way that protects intellectual property rights.
When Should You Seek Legal Help?
- Before beginning contract negotiations with SSB or a prime contractor
- When planning to export a defence product or technology
- When your contract provides for offset or localisation obligations
- When you will become a party to a prime contract as a subcontractor
- When the project requires a security clearance or confidentiality classification
Common Disputes
- Disputes over delivery schedules and performance obligations in procurement contracts
- Objections to the rejection or delay of an export licence
- Disputes over whether offset obligations have been fulfilled
- Allegations of intellectual property or confidentiality breaches in subcontractor agreements
Our Approach
The most common cause of delay in defence industry projects is an export licence or security clearance requirement noticed only after the contract is signed. Legalwise identifies these requirements at the contract negotiation stage, keeping your project timeline predictable.
Frequently Asked Questions
What permits are required to export a defence industry product?
An export licensing process is followed that varies according to the nature of the product and the destination country; end-user and end-use documentation form the basis of the application.
What is an offset obligation and how is it reflected in the contract?
Offset is the supplier's obligation to return part of the contract value to local industry through technology transfer, local production or investment; it is added to the contract with measurable targets and an audit mechanism.
As a subcontractor to a prime contractor, what legal risks should I watch for?
Confidentiality obligations, ownership of intellectual property, delay penalties and the extent to which the prime contract's obligations are passed down to the subcontract are the most critical points.
How does the security clearance process affect the project timeline?
Security clearance and background-check processes take a certain amount of time; planning the contract timeline to account for this from the outset prevents delays.
How can a foreign defence company work with a Turkish prime contractor?
Different structures are possible, such as subcontracting, a joint venture or a technology transfer licence; the most suitable structure is determined according to the nature of the project and export control requirements.
Related Practice Areas
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