Trade Compliance Alert: Proposed ITAR Exemption For U.S.- UK-Australia Defense Trade Unveiled

Fluet

Contributor

On May 1, 2024, the Department of State released a proposed rule containing a much-anticipated new United Kingdom/Australia International Traffic in Arms Regulations (ITAR) license exemption.
United States International Law
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On May 1, 2024, the Department of State released a proposed rule containing a much-anticipated new United Kingdom/Australia International Traffic in Arms Regulations (ITAR) license exemption.

The proposed exemption, designed to implement the provisions of Section 38(l) of the Arms Export Control Act (AECA), would be located in ITAR § 126.7 and would provide that, so long as certain requirements are satisfied, 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 users within Australia, the United Kingdom, and the United States.

The proposed rule states that the new exemption is in support of the AUKUS partnership and is designed to enhance trilateral security among Australia, the United Kingdom, and the United States. Comments on the proposed rule will be accepted through May 31, 2024.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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