The Bureau of Industry and Security has issued an interim final rule that, effective April 19, allows military items, missile technology-related items, and hot section engine-related items controlled under the Export Administration Regulations to be exported or reexported to Australia and the United Kingdom without a license. BIS anticipates that these changes will reduce licensing burdens for trade with Australia and the UK by over 1,800 total licenses valued at over $7.5 billion per year and will enable the agency to further focus its resources on scrutinizing high-risk exports to countries of concern.
For more information on how this rule may affect your business, please contact attorney Kristine Pirnia at (202) 730-4964 or via email.
BIS said this rule advances the so-called AUKUS partnership, an initiative launched in 2021 with the goals of (1) supporting collective security and defense interests, (2) deepening information and technology sharing, and (3) fostering the integration of security and defense-related science, technology, industrial bases, and supply chains. BIS noted that the UK and Australia are members of all four multilateral export control regimes and the global export controls coalition formed in response to Russia’s war against Ukraine. They also have robust export control systems and have taken additional steps in recent months to mitigate the risk of unauthorized use or diversion of EAR-controlled items.
A BIS press release stated that firearms-related items are the primary category of items that remain subject to a BIS license requirement for exports to Australia and the UK. In addition, existing license requirements remain in place for the following items: (1) certain satellites and related items, (2) certain items controlled pursuant to the Chemical Weapons Convention, (3) items controlled for short supply reasons (e.g., certain petroleum products and Western red cedar), and (4) certain law enforcement restraints and riot control equipment, implements of torture or execution, and horses exported by sea.
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