The State Department is accepting comments through May 31 on a proposed rule that aims to facilitate secure license-free defense trade between the U.S., the United Kingdom, and Australia.

The proposed rule would amend the International Traffic in Arms Regulations to provide 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. However, some defense articles and services (identified in an excluded technology list in proposed Supplement No. 2 to Part 126 of the ITAR) would not be eligible for the proposed exemption.

The rule would also (1) allow certain dual nationals of Australia and the UK to receive classified defense articles with a separate license from DDTC and (2) require DDTC to complete within certain timeframes its review of license applications for exports of certain commercial, advanced-technology defense articles and services to or between the physical territories of Australia, the UK, or Canada that are with government or corporate entities from such countries.

The Bureau of Industry and Security recently issued its own rule to ease trade in dual-use goods between these countries. For more information on how these rules may affect your business, please contact attorney Kristine Pirnia at (202) 730-4964 or via email.

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