The U.S. Department of Defense has adopted as final, with changes, the interim rule amending the Defense Federal Acquisition Regulation Supplement, which will implement requirements of the U.S.-U.K. Defense Trade Cooperation Treaty and the U.S.-Australia DTC Treaty, as well as the Security Cooperation Act of 2010, regarding bilateral export control regulations.
The final rule streamlines the export control regulations between the U.S. and Australia and the U.S. and the U.K. under specified circumstances.
The U.S. controls exports of defense articles, technical data and defense services under the Arms Export Control Act and International Traffic in Arms Regulations. Under the ITAR, the U.S. Department of State manages an export licensing system in which numerous government approvals are often necessary for companies to hold discussions about potential projects, pursue joint activities, ship hardware or transfer know-how to one another, and sometimes to transfer engineers and other company employees from one country to another. This process can be challenging and time consuming for U.S. exporters and for foreign firms in their supply chains.
The rule is expected to result in reduced paperwork requirements overall under the processes set forth in the DTC treaties as implemented by the ITAR by no longer requiring individual export licenses within the “approved community,” which includes the U.S. government, U.S. entities that are registered and eligible exporters and certain government and industry facilities in Australia or the U.K. that are approved and listed by the U.S. government.