US, UK reduce licensing requirements for AUKUS
The United States has published a proposed rule amending the International Traffic in Arms Regulations (‘ITAR’), creating an exemption for the export, reexport or retransfer of defence articles with AUKUS partners Australia and the United Kingdom.
In London, the Department of Business & Trade (‘DBT’) simultaneously released a draft open general licence (‘OGL’) for the same purpose.
The US State Department said in the Federal Register, 1 May, it ‘is proposing an ITAR amendment in the interest of preparing for a future exemption and obtaining public feedback to shape a final rule following any positive certification.’
The notice explained: ‘The proposed new exemption, designed to implement the provisions of new section 38(l) of the AECA, would be located in ITAR § 126.7 and would provide that no license or other approval 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 designated authorized users within Australia, the United Kingdom, and the United States provided certain requirements and limitations are met. These include a list of excluded defense articles and defense services not eligible for the exemption, which can be found in a proposed new Supplement No. 2 to Part 126. The scope of excluded defense articles and defense services remain subject to revision and the Department welcomes comment on proposed Supplement No. 2 to Part 126.’
The proposed rule does not exempt Australia or the UK from all licensing requirements for all goods, including those covered by the Missile Technology Control Regime (‘MTCR’). Last month the US Commerce Department also published a similar proposed rule to significantly reduce licensing requirements under AUKUS, after President Biden failed to grant blanket export control exemptions to Australia and the UK under ITAR, missing a 20 April deadline set under the 2021 pact.
Meanwhile, on 1 May, the DBT in London published a draft OGL for the AUKUS partnership and explained: ‘To be able to use the OGL, UK exporters must be on the AUKUS nations’ Authorised Users list. The export or transfer, or supply and delivery, must be to consignees and recipients who are also Authorised Users under the Partnership. Information on the Authorised used list will be available in due course.’ It added: ‘Certain goods and technology are not included in the exemption and are set out in an excluded technology list which forms part of the OGL and the other AUKUS nation’s reciprocal arrangements. The excluded technology list includes certain items on which there are international obligations and items which the US, Australia or UK have asked to be excluded.’
https://public-inspection.federalregister.gov/2024-08829.pdf
