The US Department of State has released its proposed rule amendment to the International Traffic in Arms Regulations (ITAR). The amendment would create an exemption covering around 70 per cent of goods covered by ITAR that Australia and the UK currently need to obtain a license or other approval from the Department of State’s Directorate of Defense Trade Controls (DDTC) prior to acquiring. The limited exemption covers export, reexport, retransfer, or temporary import of defence articles; the performance of defence services; or engagement in brokering activities between or among authorised users in the AUKUS countries.
However, the proposed rule doesn't exempt Australia or the United Kingdom from all licensing requirements for all goods, with around 30 per cent still requiring a license from DDTC.
Some notable examples of this include goods covered by the Missile Technology Control Regime (MTCR) such as the Tomahawk cruise missiles and longer-range increments of the Precision Strike Missile (PRSM), night vision articles including source code, and cluster munitions.
Australia and the UK would also still need to acquire a license to access "classified Uncrewed Underwater Vehicle (UUV) signature reduction techniques” as well as “articles directly related to” naval acoustic spectrum control.
The proposed rule – which will be open for feedback here – follows the US Department of Commerce’s publication of an interim final rule on 19 April that creates similar exemptions for Australia and the UK covering around 80 per cent of the goods covered by the similar but distinct Export Administration Regulations (EAR).
The new Department of State ITAR exemption also includes a mechanism that enables people who are dual citizens of Australia or the UK to still access licence free technology, provided they’re appropriately cleared. It also includes a clause that would see ITAR license applications from Australia, the UK and Canada expedited through the determination process.