The State Department has issued an interim final rule that, effective Sept. 1, will amend the International Traffic in Arms Regulations to facilitate secure, license-free defense trade between the U.S., the United Kingdom, and Australia. This rule follows State’s determination that the export control systems of the UK and Australia are comparable to those of the U.S. and that those countries have implemented a reciprocal export exemption for U.S. entities. Comments on this rule are due no later than Nov. 18.
This rule provides that no license or other approval from State’s Directorate of Defense Trade Controls is required for the export, reexport, retransfer, or temporary import of defense articles; the performance of defense services; or engagement in brokering activities between or among a specific list of authorized users within these three countries. The vast majority of defense articles and services described on the U.S. Munitions List will be eligible for this exemption; those that aren’t are identified in an excluded technology list.
The rule also (1) allows certain dual nationals of Australia and the UK to receive classified defense articles with a separate license from DDTC under certain circumstances and (2) requires DDTC to adjudicate licenses for Australia, the UK, and Canada within 30-45 days (where practicable) when exports cannot be undertaken under an ITAR exemption.
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