The United States Department of Commerce has announced that Australia and the United Kingdom are being provided with a national exemption from the Export Administration Regulations.
It follows the passage of the National Defense Authorization Act for Fiscal Year 2024 in December 2023 that established a full national exemption for Australia and the United Kingdom from United States export control licensing requirements for military end use items.
This US action is complemented by the Defence Trade Controls Amendment Act 2024 that passed through the Australian Parliament in March 2024. The Act provides a reciprocal national exemption for the United States and United Kingdom from Australia’s export control permit requirements.
Australia will release amendments to the Defence Trade Controls Regulation 2013 and Customs (Prohibited Exports) Regulations 1958 for public consultation. The proposed amendments to the regulations will give effect to specific elements of the Defence Trade Controls Amendment Act 2024.
The national exemption for the United States and the United Kingdom from Australia’s export control legislation will come into effect in September 2024.
Defense states that a licence-free dual-use export environment between Australia, the United Kingdom and the United States will revolutionise collaboration and enable unprecedented levels of scientific, technological and industrial cooperation and co-development.
The United States Department of State will also release the International Traffic in Arms Regulations for public consultation, which will give effect to the exemption for Australia and the United Kingdom from the United States’ International Traffic in Arms Regulations.
The United Kingdom will also release its Open General Export Licence in September 2024 to give effect to the exemption for Australia and the United States.
These exemptions will remove the licensing requirements for most military goods and technology items exported, re-exported or transferred (in-country) to or within the three AUKUS partners.
This new licence-free environment aims to support the industry, higher education, and research sectors in all three nations to cooperate with lower technology transfer barriers and costs of trade.