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U.S. proposed rule to support defense trade and cooperation with Australia and United Kingdom

Amend the International Traffic in Arms Regulations (ITAR) to support the goals of the AUKUS partnership

April 30, 2024

The U.S. Department of State today released a proposed rule to amend the International Traffic in Arms Regulations (ITAR) to support the goals of the AUKUS partnership* and to encourage defense trade and cooperation between and among Australia, the United Kingdom, and the United States.

The proposed rule would:

  • Amend the ITAR to include an exemption to the requirement to obtain a license or other approval from the Department’s Directorate of Defense Trade Controls (DDTC) prior to any export, reexport, retransfer, or temporary import of defense articles; the performance of defense services; or engagement in brokering activities between or among authorized users within Australia, the United Kingdom, and the United States
  • Add a list of defense articles and defense services excluded from eligibility for transfer under the proposed new exemption
  • Add to the scope of the exemption for intra-company, intra-organization, and intra-governmental transfers to allow for the transfer of classified defense articles to certain dual nationals who are authorized users or regular employees of an authorized user within the United Kingdom and Australia
  • Revise the section on expediting license review applications by referencing new processes for Australia, the United Kingdom, and Canada

* The enhanced trilateral security partnership among Australia, the United Kingdom, and the United States

    For more information, contact a professional with KPMG Trade & Customs services:

    Doug Zuvich
    Partner and Global Practice Leader
    E: dzuvich@kpmg.com

    John L. McLoughlin
    Principal and East Coast Leader
    E: jlmcloughlin@kpmg.com

    Andy Siciliano
    Partner and National Practice Leader
    E: asiciliano@kpmg.com

    Steve Brotherton
    Principal and Global Export and Sanctions Leader
    E: sbrotherton@kpmg.com

    Luis (Lou) Abad
    Principal, Washington National Tax
    E: labad@kpmg.com

    Irina Vaysfeld
    Principal
    E: ivaysfeld@kpmg.com

    Amie Ahanchian
    Principal
    E: aahanchian@kpmg.com

    Christopher Young
    Principal
    E: christopheryoung@kpmg.com

    Gisele Belotto
    Principal
    E: gbelotto@kpmg.com

    George Zaharatos
    Principal
    E: gzaharatos@kpmg.com

    Andy Doornaert
    Managing Director
    E: adoornaert@kpmg.com

    Jessica Libby
    Principal
    E: jlibby@kpmg.com
    John Anderson
    Managing Director
    E: johneanderson@kpmg.com
    Jenna Leigh Glass
    Managing Director
    E: jennaleighglass@kpmg.com

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