• Will the Defence Trade Controls Bill 2011, make it easier for to the Australian Defence Industry to deal with the US?
    Will the Defence Trade Controls Bill 2011, make it easier for to the Australian Defence Industry to deal with the US?
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In his (edited) summing up speech to Parliament on the Defence Trade Controls Bill 2011, Defence Materiel Minister Jason Clare said the Bill gives effect to the Defence Trade Cooperation Treaty between Australia and the US and also strengthens Australia’s export controls to align them with international best practice.

The Treaty removes the requirement for companies to seek individual licences for each export from the US, allowing for the licence-free movement of eligible defence articles within an Approved Community.

For companies that join the Approved Community, this will save time and money. It also has the potential to open up improved business opportunities for Australian companies to participate in US contracts.

The potential benefits of this Bill to the Australian Defence Industry have been well reinforced during this debate.

The Government recognises that for these benefits to be realised, the Treaty process must be easier to use and more commercially attractive than using the current system, otherwise it will not be a success.

That’s why there has been extensive consultation with Australian industry during the development of the Bill. 

The Regulations (to the Bill) are currently being drafted and will be released for public comment and extensive consultation before the end of the year.

Defence has already made decisions which will particularly assist SMEs as they transition to operating under the Treaty’s Approved Community:

  • there will be no membership fee for joining the approved community; and Defence will not charge for security clearances where they are required. In addition, to minimise the initial impact on SMEs operating under the Treaty, Defence will:
  • tailor free training programs upon request to address specific issues and provide assistance in understanding the application process and compliance requirements (including for specific security responsibilities);
  • ensure a streamlined, case-by-case facility accreditation process which means that some small-to-medium enterprises may not be required to have their facility accredited or will be accredited based on needs, subject to certain conditions;
  • put in place flexible ICT arrangements, whereby ICT system accreditation is only required on a case-by-case basis when an identified business need is demonstrated;
  • produce an Approved Community manual to assist industry in understanding the requirements of operating under the Treaty;
  • seek SME involvement in the Pathfinder program, which will assess the effectiveness and efficiency of processes and policies under the Treaty prior to implementation; and
  • continue active communications with industry through outreach activities including extensive distribution of flyers, website publication of frequently asked questions, an ongoing freecall enquiry line and extensive representation at defence industry events and a number of trade shows. 

 

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