United States amends ITAR to facilitate defense trade with Australia and the UK
Final rule facilitating defense trade and cooperation through a new exemption to ITAR licensing requirements
The U.S. Department of State today released a final rule regarding the International Traffic in Arms Regulations (ITAR) exemption for defense trade and cooperation among Australia, the United Kingdom, and the United States. This rule finalizes, with changes, the August 2024 interim final rule and supports Executive Order 14268 aimed at reforming foreign defense sales to improve speed and accountability.
The interim final rule amended ITAR pursuant to section 38(l) of the Arms Export Control Act (AECA), facilitating defense trade and cooperation through a new exemption to ITAR licensing requirements. The final rule addresses public comments received on the interim final rule and introduces changes to regulatory text, including revisions to ITAR § 126.7 to account for a new exemption for reexports, retransfers, or temporary imports of defense articles to support the armed forces of the involved countries.
The rule also modifies expedited license processing for exports to Australia, the United Kingdom, and Canada, and updates the Excluded Technology List (ETL) to align with international partners.
The final rule will be effective on the day it is published in the Federal Register, which is scheduled to be December 30, 2025.