Prior approval is also required if you are going to request the manufacturing of SME equipment overseas, its for use by armed forces of any country and involves the export of a Defense Article or defense service.
Using our previous example, if you wanted to give manufacturing rights to Mexico for your SME UAV for use by the Mexican Navy, you would be required to get prior approval from the Department of State before you make a proposal.
Remember the definition of proposal is broad — you cannot provide enough information (even if it is in the public domain) for the Mexican Navy to decide to purchase your product or enter into a manufacturing agreement with you until you have gotten prior approval from the Department of State.
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